Toronto Real Estate Blog

Barbara Lawlor, Toronto Sun

When people hear about investment in connection to condominiums, they usually assume that means that someone is buying a condo with the intention of renting it out and using it to diversity their financial portfolio. In many cases, that is true. Over the decades, new home real estate has proven to be a wise investment that traditionally increases in value.

With stocks and bonds, you get a piece of paper, but when you purchase real estate you get something tangible – and in the case of a condominium something that is in demand, and will be for years to come. Even with the dips and curves we have experienced in the market lately, a condominium in Toronto remains an excellent choice.

There are also other examples of people who buy Toronto condos and do not live in them. Parents of grown children, for example, may find it more financially feasible to purchase a condo apartment for their university or college students to live in than to pay for a dorm room or rent an apartment or house. When the post-secondary education is over, they may then sell the condo, hopefully at a profit.

With the wonderful choice of condominiums today, empty-nesters may decide to buy their retirement condo now and rent it out until they are ready to make that lifestyle change. Maybe you have the money now, or the perfect condominium has come onto the market earlier than expected. And even if you buy a condominium suite and live in it, remember that you are investing in your financial and lifestyle future. In fact, it is probably one of the biggest investments you will ever make.

Keeping all of that in mind, make your choice accordingly to increase the chances that your suite will increase in value, should you decide to sell later on. The phrase “location, location, location” became a cliché because it’s so true that people overuse it. You must be careful to select buildings which are situated in excellent locations, because that aspect alone adds value.

If you cannot afford to buy in an established neighbourhood, look for emerging areas that you can see are going to be in demand in the future. Getting in on the ground floor means that you pay far less than you would if the area was already hot. Stay ahead of the curve and buy early to get the best price.

If you purchase from floorplans when a condo opens, it will most likely be two to three years before you move in, and the neighbourhood could change a lot during that time.

Take a good look at the existing homes and condominiums in the area. Are owners looking after the landscaping? Does it look like an area that is becoming gentrified? Are new shops and services starting to open? These are all good signs. And if public transportation is handy, all the better.

You should also evaluate the developer’s reputation. A couple decades ago, it may not have mattered to people so much who built their condominium – but today, it is an important factor in the choice of educated buyers. You can find out a lot about builders and developers on the Tarion New Home Warranty website. Read housing publications, check the builder stories in the sales offices, and ask around.

Do your homework to ensure that you are buying from a reputable firm. When you choose your features and finishes, keep future resale value in mind. It’s best to go with neutrals, and if you can afford upgrades, invest in hardwood flooring, granite countertops and better-quality appliances. Of course, you want the surroundings to be comfortable as well. It always pays to go for quality.

Whether you are buying a condo suite as an investment or as your home, you can rest assured that the exterior will always be kept in good repair, as will the building amenities. Whatever your situation, enjoy being a condominium owner!

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Contact the Jeffrey Team for more information  -  416-388-1960

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Michael Collins-Williams – Special to QMI Agency

No doubt, many of today’s home buyers think of just two options when it comes to purchasing a new home —it’s either a high-rise condo in Toronto or the more traditional low density suburban home. But as our communities evolve — more and more consumers are recognizing the benefits in buying a home in a mid-rise building. This third option for home buyers is anticipated to flourish in the years ahead.

Across the Greater Toronto Area, decades of low density development has not always made the most efficient use of existing infrastructure. Most of us are all too familiar with ever increasing traffic congestion, longer commutes and rising housing costs. Despite these issues, our relative prosperity ensures that the GTA will remain the destination of choice in Canada for tens of thousands of new immigrants for the foreseeable future. If we are going to preserve the high quality of life we’ve all become accustomed to, new patterns of growth planning and transportation planning are inevitably going to evolve.

One of the key factors supporting mid-rise condo development is the increasing environmental awareness of governments, businesses and citizens which is directing us to utilize our resources more efficiently. In the coming years, this will translate to an increased focus on the renewal of community infrastructure, as well as the protection and enhancement of our assets. Recent changes in the policies of the provincial government, such as the Growth Plan for the Greater Golden Horseshoe and the Greenbelt Plan are some of the driving forces behind intensification of new development today. Mid-rise buildings will become much more common as the building type of choice both for developers constructing them and new home buyers looking for affordable options that aren’t located in the concrete jungle of downtown Toronto.

As well, Canadians can reduce their impact on the environment through mid-rise condos.htm”target=”_blank”title=”toronto condo living” >condo living. Individual suites are typically smaller than single family homes which is an effective way to reduce both the carbon footprint and the monthly operating costs for homeowners. Glenn Miller, vice-president of the Canadian Urban Institute, suggests “the mid-rise building form has the potential to be the most energy efficient of all building forms.” This type of housing is a perfect opportunity to help the environment and your pocketbook. The buildings themselves are typically located on main streets close to shops and services, which reduces auto-dependency and promotes a healthy active pedestrian lifestyle. Miller notes that “mid-rises are built to a human scale that contributes to street life”. This provides a perfect smart growth alternative to larger scale apartment blocks without compromising the character of traditional neighbourhoods.

The graying of society with many baby boomers approaching retirement age is a second major driving force behind mid-rise condo development. This growing segment of society will increasingly be looking to downsize and live in an easy, maintenance-free lifestyle that doesn’t involve a lot of stairs. Unlike towering skyscrapers, mid-rise buildings in the four to eight floor range have the ability to integrate themselves within the existing urban fabric. These boutique style condo buildings are perfectly suited to provide a new supply of housing to a growing portion of the housing market in an aging society.

Mid-rise condos provide opportunities to enhance our communities while reducing our impact on the environment. Mid-rises blend into and improve neighbourhoods as Miller further suggests that “it’s a building form that adds to the quality of life in cities through quality urban form.

Mid-rise buildings can be viewed as an ideal scenario to provide an affordable supply of new housing for potential home buyers and slightly increase densities without disrupting established communities. There is almost an overwhelming amount of choice in today’s rapidly evolving real estate market. However, considering all the environmental, economic and lifestyle benefits that mid-rise living has to offer, a home in a mid-rise project is a choice worthy of consideration for anyone in the market for a new home.

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Contact the Jeffrey Team for more information  -  416-388-1960

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By Sharon Aschaiek Special to the Toronto Sun

When it comes to compact spaces like Toronto condos, striking the right balance between fashionable and functional decor can be a tricky feat. Toronto-based interior designer Andrea Kantelberg says it’s entirely possible to achieve a trendy yet timeless look that’s comfortable, stylish and reflects your personality — and will hold its value.

“Your home decor should feel cohesive and welcoming and act as an effective backdrop to your personal possessions,” says the principal of Kantelberg Design, which specializes in high-rise residential, hotels and luxury homes.

Reduce and recycle

Living in a small space like a condo requires scaling back on possessions to minimize clutter, Kantelberg says.

“You need to have space around pieces for them to breathe. Without that space, a home will never have a feeling of luxury or style,” Kantelberg says.

Hold onto the furniture and accessories you still love and that continue to “feed your spirit,” she says, and ditch or donate what you don’t need.

Furniture that fits

Kantelberg says that while lean, modular furniture works well in condos in Toronto, owners on a budget can find ways to work with what they already have.

“You can augment oversized furniture like a king-size bed or giant sofa with smaller pieces to create more space,” she says. If you are purchasing new furniture, she says, go for clean, classic lines, and buy the best quality you can afford, knowing it’s a long-term investment.

Storage is supreme

“As a general rule, keep things off the floor to achieve an uncluttered look,” Kantelberg says.

Use an organizer or built-in shelving to maximize storage space in your closets, she says.

You can also make great use of wall shelving and furniture pieces with storage capacity, such as ottomans, to create a clean, unfettered look, she says.

“But perhaps don’t store stuff under your bed — I’m a big believer in clutter affecting the way we feel, and sleeping on top of all our stuff doesn’t feel right,” she says.

Cohesive colour

Create a cohesive, seamless look and feel by carrying similar tones of your colour scheme throughout your place, Kantelberg says.

Choose a paint colour that reflects your personality and will complement your furniture, she says, and take risks in small ways — use patterned wall paper in your powder room or coloured wallpaper behind your bookshelf.

“Truly stylish people have to take risks, but it’s better to do it in small bites,” she says.

Flooring that lasts

Gray or neutral no-gloss wooden flooring continues to be de rigeur, Kantelberg says, because it’s durable, easy to maintain and great looking.

“Unlike high-gloss hardwood, where you can see every little scratch, you don’t have to worry about maintaining it and keeping it perfect,” she says. “And its worn quality adds a little bit of depth and personality to a space.”

More cost-effective but also stylish is laminate flooring, she says, which also requires little upkeep.

Layer your lights

Use a mix of lighting formats, Kantelberg says, and customize lights according to the way you use them, and the mood you want to create, in each space.

“You don’t need a light fixture hanging in the middle of each room. Somebody came up with this idea 70 years ago, and it’s still there,” she says.

While kitchens and bathrooms may require good-quality overhead lighting, she says, go for a floor lamp in your living room, task lighting on your desk and a table lamp beside your bed.

Earth-minded design

“When you’re buying a product, think about how it got there — was it on a truck, plane or boat? It’s better to purchase from a local manufacturer,” she says.

Other eco-smart decor options include buying vintage, to reuses objects and add originality to your space; low-flow faucets and toilets; energy-efficient lights and appliances; a smaller fridge, to minimize harmful hydrofluorocarbon emissions; and chemical-free paint.

“These are all things that are really easy to do that don’t actually cost extra money,” says Kantelberg, “so it’s possible for your home decor to positively affect the planet.”

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Contact the Jeffrey Team for more information  -  416-388-1960

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Tony Wong – Toronto Star

When it came time to sell his newly renovated property in Toronto’s upscale Bloor West Village, Christopher Lecomte had one stipulation: “No games.”

He knew the home, with a flagstone walkway and Muskoka-styled porch, would be highly sought after. But the last thing he wanted to do was create a stressful auction-style environment for the sale of the property.

“I didn’t want to artificially stimulate a bidding war by underpricing the home and then waiting a week to take offers. I think that whole attitude is killing the market,” says Lecomte. “Nobody wins that way.”

In a market where listings are down significantly compared with those of a year earlier, it has become standard practice for some agents to try to stimulate multiple offers for a property.

The controversial marketing method has caused frustration with buyers and agents. And it has also created something of a backlash by those who say it is misleading, if not unethical.

Comment: It can be, but it depends on how it is done. Sometimes there is a lot of interest in a property and holding off on offers allows everyone who wants it a chance to see it and potentially make an offer. It is not always about pumping up the price.

But the tide may be turning. Some vendors like Lecomte are deciding not to participate. And some buyers are avoiding properties that seem deliberately underpriced.

So far, the resistance has been left to a handful of agents and buyers. But some hope the trickle of defiance will pave the way for a saner market. Recent housing indicators show that sales are likely to cool in the second half of the year. For now, though, the Toronto market remains heated, compounded by a drought of listings and historically low interest rates, as analysts forecast a tough spring market for buyers.

Comment: And that is part of the problem – a lack of listings makes for limited supply in a time of massive demand. Thus each and every listing has more than one buyer after it.

A fixer-upper in the city’s tony Forest Hill neighbourhood, for example, sold last month in “as is” condition for $2.7 million, more than $200,000 over the list price.

The multiple-offer strategy goes like this: For highly sought-after neighbourhoods, agents in Toronto may deliberately underprice a home to attract more buyers. After holding an open house, they refuse to take bids till a week later. The hope is to create an auction mentality that will cause buyers to bid higher. The situation has gotten so out of hand that the Star reported recently that some buyers were sending flowers, chocolates and even videos of their babies to woo vendors.

Comment: They do not always underprice it, sometimes they just make offers wait so that everyone gets a fair chance to bid on th property. And it is not always about getting a higher price. Setting an offer date gets the house sold faster, meaning a week of showings as opposed to potentially having hundreds of people tromping through the seller’s house for a month or more. Why should the seller have to be put out for longer just to avoid buyers having to bid?

But Lecomte and his agent, Mike Donia, decided to price their property at market value, and take offers as soon as the property was listed on the Multiple Listing Service.

Comment: Why this property is being mentioned is beyond me, it sold in December. And 12.5% of Donia’s current listings are asking for bids. He is not the angel he is making himself out to be.

“We decided to do it the old-fashioned way,” says Donia. “I’m a real estate agent, not an auctioneer. I think the market has become pretty obscene. If I go to Future Shop to buy a TV, they don’t tell me to come back in five days and bid on it, but this seems to be the same modus operandi all over Toronto. It’s stupid.”

Comment: Except Future Shop has 100 of that TV, so there is enough supply. Not the same with real estate, especially not now when listings are cut almost in half.

Donia decided to take it a step further by advertising that his listing was fairly priced: “Best of all, no games, offers accepted anytime.”

Donia isn’t the only agent who thinks underpricing is harming the market.

Realtor Thomas Cook has complained to the Toronto Real Estate Board, describing it as the “lazy agent’s way of having to deal with a listing for only seven days.”

Comment: That is so wrong. It has nothing to do with being a lazy agent. Sellers see bidding wars all the time and they want one on their house. They want more money. They want fewer showings. They want no conditions. It has nothing to do with agents being lazy. It is a quick and easy way for a seller to sell their home for top dollar and in the fastest time. That is our job as real estate agents, to get sellers the most money in the shortest time.

He says the practice is detrimental to both sellers and buyers. Some buyers end up wasting their time on a property they shouldn’t have bothered bidding on in the first place since it was never in their price range, and sellers don’t necessarily get a better price, he says.

Comment: That is the job of the buyers agent, to educate their clients on what properties they can afford. If the agent thinks the price will go above their clients budget, then they should tell them not to bid. I tell clients not to get involved unless there is a good chance of them being able to give the highest bid.

“There is a lot of wasted effort,” says Cook. “Think of all the unnecessary home inspections alone.”

Comment: What? In bidding wars, there are almost always no conditions, thus no home inspections. And if there are, then only the winning bidder has one. That makes no sense whatsoever.

As a result, he advises his vendors to price the property at market value and add an additional 3 to 5% for negotiation room. “This is a much more honest way of doing things.”

Vendors don’t always get a better price even if there are more eyeballs on the home, because only several of the potential customers will be able to afford the true price in the first place, argues Cook.

“You’re just wasting everyone else’s time, not to mention the emotional toll on the buyer.”

Comment: Then do not take them to homes they cannot afford, it is that simple.

Buyers such as Richmond Hill’s Daniel Austin, who purchased a home last year, says he refused to bid on properties that seemed obviously underpriced.

“Deliberate underpricing is unethical, non-transparent and downright dirty,” he says.

Comment: Underpricing is dumb, because it does attract people who cannot afford the property. But that is not a part of all multiple offers.

Austin argues that the practice keeps prices artificially high in the market. While it serves the vendor well initially, that vendor will have to parlay their profits into buying the next house, which they may also have to buy on a multiple-offer, creating unsustainable prices, he says.

“The only result of this practice is higher sales commissions,” says Austin.

Comment: Come on, that is an old and tired argument. When prices go up $20,000, the buyer’s agent might get an extra $500 and the listing agent less. The amount our commissions go up is so little that it is moot. Sure, he house may go for 104% of asking, so we get 4% more. Wow, a whole 4% more… that is SO much…

The strategy isn’t for every situation. In a down market the practice doesn’t work because nobody would show up on the day offers are taken, and the vendor would be left with an unsold property.

But other agents say underpricing a home can work, especially in a market with a lack of listings. The strategy may end up attracting buyers who would not otherwise have looked at the property because it was at a higher price point.

“The point is to get your vendor the most money possible,” said one agent who didn’t want his name used. “Isn’t that our duty?”

Comment: Exactly. I will use my name and say it is true.

The Toronto Real Estate Board has said that vendors have a right to list their homes at whatever price they choose.

“TREB (and others) do not have a right to interfere in a market driven function,” the organization told the Star in an earlier email.

Michael Polzler, executive vice-president of ReMax Ontario-Atlantic Canada, the largest franchisor in the province, says it is virtually impossible to police an underpricing strategy.

“It’s a free market. The reality is you can price your home for any figure you want,” says Polzler. “It’s what’s allowed within the rules, so there’s little anyone can do except choose not to participate if they want to.”

Comment: And that is our job, do what our clients ask us to do. If they ask for bids, they get bids. If I refuse to do it for them, they will just find another agent who will.

David Eva, an executive at a wind power company who purchased Lecomte’s Rivercrest Rd. home, says he is thankful he didn’t have to go through a bidding war.

“It was certainly a cleaner, faster, and more enjoyable process without the unnecessary stress,” says Eva. He paid $1,107,000, or $8,000 over the list price of $1,099,000.

Comment: Wait a second… there were no other bids yet the buyer paid over asking? That makes no sense.

Donia argues that the home went for slightly more than a comparably sized home on the same street that was for sale at the same time. The vendor on that home tried to incite a bidding war by taking offers at a later date.

That home listed for $1,050,000 and sold with two competing offers for $1,100,400.

Comment: So the buyer of this house paid more just to avoid the bidding war on the other house. So it doesn’t matter, the seller got more because of the bidding war down the street.

“I think it just shows that people will buy the home at market value, and they appreciate it when they don’t have to jump through hoops,” says Donia. “I’ve never had a client say I’m glad I got caught in a bidding war.”

Comment: What do his sellers say, though?

Lecomte says even though the market is still doing well, he didn’t want to pursue the underpricing strategy. A former vice-president of finance for a media company, he says he is proud of his work on the home, and didn’t want to push potential buyers away. He also encouraged potential purchasers to get their own home inspection.

“You’re making such a major purchase, it’s silly not to take your time and get it right,” he says.

Most analysts expect that bidding wars will likely continue for the first half of 2010. Stricter mortgage rules introduced this month by the federal government will likely have some buyers trying to qualify for financing before April 19.

However, as interest rates move up in the second half of the year followed by more listings, and the introduction of the Harmonized Sales Tax in Ontario, market activity is expected to cool. That should theoretically make bidding wars less of an issue.

But Donia says that is already happening from buyers who are fed up with the practice.

“More and more people are walking away and realizing that it’s stupid to get in a pissing match for a house. And you know what? They’re right.”

Comment: And for every one that walks away, 5 do not. And properties still get 14 offers on them. There are just too many buyers and not enough properties. Until that changes, 80% of buyers can walk away from bidding wars, but there will still be 3 buyers making offers.

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Contact the Jeffrey Team for more information  -  416-388-1960

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Tony Wong – Yourhome.ca

The lack of residential Canadian real estate listings is most acute in Toronto, contributing to upward pressure on pricing, according to ReMax Ontario Atlantic Canada.

There were 41% fewer homes listed for sale in the Greater Toronto Area in January compared with a year earlier, ReMax said in a report released Wednesday.

“The overall pressure on sales and price is significant across the board – and it’s not likely to subside until more inventory comes on stream,” ReMax said.

Nationally, 81% of markets surveyed showed a sharp decline in listings according to ReMax.

After Toronto, Saskatoon was in second place with 37% fewer listings, followed by Kitchener-Waterloo, down 33%.

Victoria and Ottawa tied for fourth place, down 30%, and Greater Vancouver, down 27%, rounded out the top five tightest markets.

A lack of listings means that buyers have fewer choices, creating a sellers’ market.

The lack of listings has spilled into new home sales, as buyers turn to new development to satisfy demand.

New home sales in the GTA more than doubled in January compared with the same month last year, according to figures released Wednesday by the Building, Industry and Land Development Association.

There were 2,162 mew houses and condominiums sold last month, representing a stunning 237% increase over January 2009 and a solid start to the new year.

However, the comparisons can be misleading because last January represented the “height of the global economic crisis” when home sales were at the absolute bottom, according to the association.

Compared with 2008, sales were up by only 11%.

“The market is reasonably healthy, but certainly not frothy,” said BILD president Stephen Dupuis.

Within the GTA, York Region had the largest year-over-year gains, with 568 sales representing a 385% increase, followed by the city of Toronto’s 876 sales, up 289% and Peel Region’s 370 sales, up 259%.

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Contact the Jeffrey Team for more information  -  416-388-1960

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