Tag Archives: single family
Baby boomers may be planning to move, but not into condos
Royal LePage survey shows ‘they love their garages and their yards’
Susan Pigg – Toronto Star
Baby boomers may well be on the move over the next five years, but don’t expect them to be downsizing to condos, according to a new report by realtor Royal LePage.
“They love their garages and their yards,” says Royal LePage CEO Phil Soper.
In fact, they love them so much that 40.6% of 1,011 boomers surveyed for the study said they plan to move out of the family home to another house – some 25.9% into one of a similar size and almost 18% of them into something even bigger.
While 54% of boomers surveyed said they do intend to downsize, less than a quarter (22.9%) are looking to condominiums or apartments, the report notes.
That could mean lights out in more than a few of those glass-and-steel units over the next decade, given that Generation Y kids born between 1980 and 1994 were also part of the survey and made it clear they don’t plan to be living the high life in the bustling downtown forever.
Expect a rush to the suburbs over the next few years as they hit their child-bearing years: Almost 77% of the Gen Ys surveyed said they will be looking for townhouses, bungalows or single family homes and less than 25% of them close to downtown.
“Like their parents, they dream of owning a lovely house in the suburbs, which provides value as well as access to parkland for children to play and the perception of greater family safety,” said Soper.
Less than 20% of the boomers surveyed by LegerWeb last September on behalf of Royal LePage said they are looking to buy multi-storey homes. Instead, almost half – about 40% – are looking to buy a bungalow, a housing type that’s quickly headed for extinction because of escalating land values and intensification efforts that, across the GTA, are driving houses up rather than out.
Relatively few boomers, it turns out, are being wooed by the call of the wild and the romance of living on a lake: Just 5.9% say they plan to buy a cottage, ski chalet or other recreational property as their primary residence, the survey shows.
Realtor Cindy Daly, a baby boomer herself, says most boomers she knows simply can’t fathom downsizing yet – they need the space in their often mortgage-free homes for grown children trying to get on their feet, or aging parents too frail to live on their own.
“I’m finding that more people are staying put,” said Daly.
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Contact the Jeffrey Team for more information – 416−388−1960
Laurin & Natalie Jeffrey are Toronto Realtors with Century 21 Regal Realty.
They did not write these articles, they just reproduce them here for people
who are interested in Toronto real estate. They do not work for any builders.
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Real estate cheat sheet: how affordable are homes in Toronto?
Toronto Life
Two of Canada’s biggest banks released reports this week examining the affordability of homes across the country, and Toronto didn’t come out looking good. The city’s one of the least affordable in the country, second only to Vancouver (which is one of the priciest markets in the world). We break down the numbers below.
• Real estate watchers gauge affordability by the proportion of pre-tax family income required to pay the mortgage and other related costs like home insurance, utilities and property taxes. Anything over 39% is considered unaffordable. In Toronto, mortgage payments on the average single-family home account for 43% of household income alone, according to a recent BMO report. That number is closer to 50% when other costs are included, which makes the market vulnerable to a correction if interest rates spike or incomes fall.
Comment: They use an income of $71,000 with no explanation where it comes from. But, let’s go with it. The most recent stats show an average housing price of $555,423 as of mid-February in the 416 only. With 20% down, that means a mortgage payment of $2,121.54. So, $71,000 annually is $5,916.67 monthly. That gives me 35.9% of pre-tax income. That is NOT 43%.
• An RBC Economics report further breaks down the numbers by type of home. At $545,6000, the average detached bungalow in Toronto devoured 52.8% of median income in the fourth quarter of 2012. That was slightly (0.4 percentage points) better than the quarter before, and RBC attributed the minor improvement in affordability to slower market activity in the second half of 2012.
Comment: Huh? That amount is lower than the average… But regardless, the mortgage payment on that amount is $2,084.02 which would account for only 35.2% of the median income of $71,000. And if that number is national, which the report is, then it is way off. Toronto incomes would be skewed higher, making these percentages even lower.
• Two-storey homes are the most unaffordable of all. Housing costs for a standard two-storey comprise over 62% of household income with an average price of $640,500, according to RBC. In other words, it takes an annual income of $131,300 to qualify for a benchmark mortgage.
Comment: That number is way off, the average detached house in the 416 is $817,217. Now that is expensive. Oddly enough, with 20% down, the income to qualify is $132,369 – almost the same as they got. They should not match, not with a $180,000 difference in house prices. Their math is SO far off… Now, if we use GTA numbers as a whole, then the recent stats show an average of $646,435 for detached homes. That would then mean an income of only $107,906 to qualify. And using those same numbers, the average property sale is $509,061 which would be $1,944.45 – 32.9% of monthly income.
• Condos are still reasonably affordable. BMO says housing costs on condos account for just 31% of median income. RBC put that number at 33.1%.
Comment: GTA condos averaged $330,361 in the first half of February, which would be only $1,261.87 and thus only 21.3% of median monthly income. I am curious where their numbers come from, mine come from TREB. And have a feeling the %s all drop further when we take GTA incomes instead of national averages.
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Contact the Jeffrey Team for more information – 416-388-1960
Laurin & Natalie Jeffrey are Toronto Realtors with Century 21 Regal Realty.
They did not write these articles, they just reproduce them here for people
who are interested in Toronto real estate. They do not work for any builders.
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Related posts:
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South Annex
The South Annex neighbourhood was subdivided in the early 1850′s, on land formerly owned by the Jarvis, Crookshank and Denison families; all of whom played a prominent role in the history of Toronto.
The South Annex is a vibrant and colourful downtown Toronto neighbourhood. Much of the South Annex’s vitality comes from being located right next door to the University of Toronto.
Naturally, many University students, faculty, and alumni rent or own houses in the South Annex. The University population mixes well with the young urban professionals who have been buying and fixing up South Annex houses, giving these old houses new life, and in the process revitalizing this historic Toronto neighbourhood.
South Annex Real Estate Map
The South Annex neighbourhood has long been overlooked by Toronto homebuyers. Those who had the foresight to buy homes here in the past are now been richly rewarded as this neighbourhood is now in big demand.
South Annex is appreciating at an alarming pace – some properties south of Bloor are now going for over $1 million. This would have been unheard of a few years ago. Being in the heart of the U of T district, this area will always maintain its value and continue to exceed most other neighbourhoods.
Sales in the South Annex tend to be few and far between, as inventory is tight. This lack of supply coupled with great demand is one reason why home prices in this neighbourhood are on the rise. An average of only 2 semi-detached and rowhomes sell in a given month – for just under $1 million. Maybe one detached house sells every two months – and such rare and premium properties sell for close to a million and a half.
Home buyers are flocking to the South Annex neighbourhood for many reasons. The area attracts people looking to be within walking distance of shops, cafes, Harbord Village, Chinatown, Kensington market, Korea Town, JCC, U of T, excellent schools, the ROM, book stores, fine dining etc. There are lots of large single family homes for those with big families looking for a sense of community, as well as professional couples looking to start a family in this vibrant neighbourhood. There are also many investment properties in the area, which makes sense given the large and ever expanding U of T student population.
Houses in the South Annex
South Annex homes tend to sell in two to three weeks. Since there is never much available, it does not stay on the market for long. Housing stock is mixed with single family, duplex and multi-unit homes. The South Annex has a strong appeal to buyers due to its strong resident’s association and community involvement.
If you love Victorian architecture you will love the South Annex – which is chalk full of character homes. Interior details include high ceilings, stained glass windows, beautiful fireplace mantels, plaster mouldings and ceiling medallions, tall baseboard trim, radiators with scroll designs and hardwood floors. Exteriors are defined by Victorian gables and some houses have front porches and maybe even an original slate roof.
Public transit is always close by so you don’t need a car. However, many homes come with some form of parking whether it be a driveway or parking pad, or even a laneway at the rear. There is also permit parking available with certain houses on specific streets, but this is best to check with the City first.
If you’re planning on buying a home in the South Annex, do your homework. Have your financing in place and be ready to go when your dream home comes on the market – you will not have long to make a decision and move on it. Be diligent about home & termite inspections, be aware of where the house is located (on a heritage designated street, next to student housing, near a main street or bar).
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Contact the Jeffrey Team for more information – 416−388−1960
Laurin & Natalie Jeffrey are Toronto Realtors with Century 21 Regal Realty.
They did not write these articles, they just reproduce them here for people
who are interested in Toronto real estate. They do not work for any builders.
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