Creating quality communities

October 23rd, 2007

By Donna Kay Kakonge, Dream Homes & Condos Magazine

From acquiring the land, to choosing  tradespeople, to the time it takes to build a home and all the good and bad stories about building – Townwood Homes and Baywood Homes share their knowledge on getting from A to B in new home building.

The first step in the building process is that the land needs to be acquired, explains Townwood Homes president Tony Guglietti.

“In acquiring raw land for development, the process of taking it from its original state to a finished community can take anywhere from three years to 20 years, depending on the status of the raw land and where it falls within the development process of the official plan of a municipality,” he says.

Natascha Pieper is director of marketing and sales with Baywood Homes. Her job involves market research, product positioning and managing the sales for both low- and high-rise residential developments.

“Our land acquisitions are selected by sourcing keylocations, up-and-coming neighbourhoods, foreseeing where the market will go and getting in there sooner,” says Pieper. “Hard work on the front end ensures our acquisitions are based on comprehensive studies, giving us the information necessary to make sound business decisions.”

Baywood Homes is currently working on the Bohemian Embassy project on Queen Street West in Toronto. They have entered into a community that is definitely artistic in nature and have to be sensitive to the artistic culture.

“We had to create a building that would blend with the architectural integrity of the Queen West neighbourhood,” Pieper says. “Landscape planning and architectural detailing are extremely important. Our developments need to be extensions of existing communities.”

Pieper also says that government initiatives such as the greenbelt legislation and Smart Growth are important factors to acquisition, as they are designed to manage urbanization and promote building in areas that have, or will  have, the infrastructure in place to accommodate population increases.  With initiatives such as these, many low-rise builders are also becoming high-rise builders. Smart Growth and related programs are encouraging builders to manage sprawl by building up more than out, which is an important factor in the location and usage of the lands they acquire.

Guglietti of Townwood Homes says location is a prime consideration in acquiring land.

“The estimated length of time the development process will take, the yield the land will produce and the type of community the municipality envisions within their planning process,” Guglietti says are all things to consider.

Pieper says the selection of tradespeople to build the home is also important.

“Builders are creating a brand, and the trades play a significant role in that,” Pieper says. “Quality work, home readiness, open communication, definitive timelines and regular trade council meetings help us to ensure we maximize efficiencies on-site. These elements help our projects move forward, which is key to maintaining our reputation as a quality builder.” Guglietti agrees.

“Reliability, reputation, workmanship, past projects they have completed as well as their competitiveness to acquire the contract,” he says. “The most expensive trade or the least expensive trade is not necessarily a deciding factor. It’s how they perform and their ability to complete the job on a timely basis and to our specified standards.”

Once the key players are set, it can take months to build a home. Guglietti says it takes five months on average from the time a building permit is obtained. Pieper agrees and adds that the building schedule sometimes needs to allow for more time to accommodate customized changes.

“A longer closing can come from people making customized changes to their plan which, as a custom builder, we’re willing to accommodate,” Pieper says. “With these issues however, consumers are accepting of the closings because they’re getting the home that they want.”

“How well you are organized is critical to completing a home on time,” Guglietti adds. “Many factors, though, can be beyond your control through work stoppages caused by labour shortage, material shortage, strikes and inclement weather.”

Both Pieper and Guglietti say Baywood Homes and Townwood Homes respectively build all-year round, although the winter is a difficult time to build.

Guglietti shares some of his success stories of building with Townwood Homes.

“Many years ago, we were one of the first builders to re-introduce the bungalow to the Toronto real estate market, we were taken back by the response to this ‘new’ plan,” he recalls. “During this process, we were able to assist with the needs of many families seeking easier access to their homes for disabled family members.”

Pieper notes environmental reasons as one of the successes Baywood Homes has had in building.

“We’re building Energy Star homes now to get involved with the green initiative,” she says. “We’re building our first four Energy Star homes at Napa Valley in Bowmanville and the Ravines of Greenhill in North Oshawa. It’s where the industry is going right now and we’re excited about it. Production quality of the home has improved, which makes the industry as a whole better. Homeowners are ecstatic. People are genuinely interested in having Energy Star homes. They’re interested in the energy cost-savings.”

Pieper says Baywood Homes finished seventh in overall customer satisfaction this past year with J.D. Power and Associates. This has been J.D. Power’s second year surveying homebuyers in the GTA.

“We have customer care centres right on-site, to respond quicker to the needs of our customers,” she adds.

Although these are success stories, there are some things to watch out for in home building too.

“Fire is a fear of all new home builders,” says Guglietti. “In one instance, as an occurrence of a fire that spread from an adjacent builder, we were able to rebuild a purchaser’s home, and much to their relief, move them in on their original closing date.”

Pieper says it is mother nature that is sometimes the biggest obstacle.

“As an all-season builder, we sometimes encounter inclement weather conditions such as heavy rains or severe snow storms,” she says. “These can be difficult to deal with. However, with over 20 years as a builder, Baywood has experience with these types of situations.”

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

Toronto Real Estate Strong in October

October 18th, 2007

October housing activity confirms consumer confidence in real estate market

October 18, 2007 — Resale housing activity substantially outpaced mid-October results from a year ago, Toronto Real Estate Board President Maureen O’Neill announced today.

“There were 3,297 sales reported to mid-month, which is a 10 per cent increase over the 3,007 homes sold during the same period last year,” Ms. O’Neill said. “We are on course to rival October’s best result, which was in 2003 with 7,227 sales.”

In Riverdale (E01) the number of transactions to mid-month jumped 29 per cent compared to the same timeframe a year ago due to strong sales in all housing types.

Streetsville East (W19) saw a significant increase in the sale of semi-detached homes, which helped push overall sales up 48 per cent compared to mid-October 2006.

A combination of strong condominium and detached home transactions drove Willowdale’s (C07) mid-month sales to an overall increase of 83 per cent.

At the northern edge of the Toronto Real Estate Board’s reporting area, Innisfil (N23) saw sales to mid-month double as compared mid-October 2006, driven mainly by the sale of detached homes.

Meanwhile, the average price rose to $399,013, up nine per cent over the $364,364 recorded to the middle of September. This figure is also 13 per cent higher than the first half of October last year when the average price stood at $353,677.

“While mid-month figures simply provide a snapshot of current activity, we are encouraged that sales remain robust. The activity we have seen this autumn shows that consumers continue to have a great deal of well-founded confidence in the housing market,” said Ms. O’Neill. “There’s no question that home ownership is the best long-term investment you can make.”

However, if the City of Toronto imposes a second land transfer tax, this could have far reaching impacts on the City’s economy. “A doubling of land transfer taxes could impact the market and will reduce the amount of money home buyers spend,” noted Ms. O’Neill.

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

Provincial Elections Impact on Toronto Tax

October 15th, 2007

Toronto Land Transfer Tax is New Provincial Government’s First Test on Municipal Finances

With yesterday’s election of a new provincial government, Toronto real estate agents are echoing the public’s expectations for immediate and adequate provincial commitments to address City of Toronto finance issues.

Toronto real estate agents congratulate all of the newly elected MPPs and we thank all of the candidates that ran. Every election is a reminder of how privileged we are to live in this City, Province and Country,” said Maureen O’Neill, President of the Toronto Real Estate Board. “We look forward to working with the new MPPs.”

With Toronto City Council poised to vote on an unprecedented 100% increase in land transfer taxes on home buyers in just 11 days, Toronto real estate agents believe that the City’s finances are the first opportunity for the new provincial government to indicate how serious they take municipal issues.

“The upcoming vote on a 100% increase to Toronto land transfer taxes is the new provincial government’s first test on municipal finance issues. The question to them is simple: will the provincial government take strong action and signal a new, fair course for municipal finances?” said O’Neill.

The Toronto Real Estate Board believes that the City of Toronto’s financial situation is one of the highest priority issues for Torontonians.

“The public feels strongly that a second land transfer tax is not the answer to the City’s financial difficulties. In just the last few weeks, we have seen literally thousands of emails from the public to municipal and provincial politicians, including all of the provincial party leaders, from our www.NoHomeBuyingTax.com web site,” said O’Neill. “Over and over, these people are demanding provincial action for fair solutions to the City’s financial challenge. We hope they are not ignored.”

Toronto real estate agents and the public are watching to see how the new provincial government will respond to their calls for action on City finance issues.

“The public expects strong provincial action and an immediate signal to Toronto City Council that a second land transfer tax is not a fair option,” added O’Neill.

More information is available at www.NoHomeBuyingTax.com.

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