Tag Archives: waterfront properties
Toronto condo prices: best bang for your buck
Newcomers snap up local properties for their value
The National Post
As uncertain economic conditions persist here and around the globe, many Canadians are wondering if luxury condominiums are still a good investment.
The answer from many industry experts is a resounding “yes.”
“Whether we’re talking physics or real estate, the theory of relativity applies,” says Stephen Dupuis, president and chief executive of the Building Industry and Land Development Association (BILD). With more than 1,400 member companies, BILD is the voice of the land development, home building and professional renovation industry in the greater Toronto area.
“Relative to 2007, the GTA luxury condo market has moderated in terms of the volume of sales, but compared with any other major city in the world, we still sell and build more condos in all price ranges.”
According to RealNet Canada, BILD’s research source, sales of new condos in the GTA in 2008 exceeded 15,500 units while CMHC reports that construction was started on nearly 24,000 units last year, reflecting the very healthy sales rates of previous years.
“At the upper end of the market, Toronto condo prices continue to represent the best bang for your buck, relative to major markets in the United States and around the globe,” says Dupuis.
RealNet’s research backs this up. Its study of similar-size one-bedroom-plus-den units in Toronto, Calgary and Vancouver showed that Toronto’s 633-square-foot condo came in at $288,900 ($456 per sq. ft.) compared with $357,900 ($528 per sq. ft.) for a 678 sq. ft. unit in Calgary and $461,000 ($739 per sq. ft.) for a 615 -sq.-ft. unit in Vancouver.
Internationally, the situation is similar. Toronto’s luxury and super-luxury condo prices (starting around $800 and $1,400 per sq. ft. respectively) are lower than Paris, London, Tokyo, Moscow, Hong Kong, Dubai, New York, Los Angeles, Sydney and Monte Carlo. In fact, international investors must pay from two (Sydney, Paris and Dubai) to eight times more (London) for prime condo space in those cities. Put in dollar terms, a 750-sq.-ft. unit selling at $600,000 here would cost $1.2-million in Sydney, Paris or Dubai and $4.65-million in London.
The increased cost comparisons for Toronto’s super-luxury condos range from 1.8 times versus Tokyo, Japan to 3.7 times in Los Angeles to a whopping 8.4 times in London. Taking that 750-sq.-ft. unit again– it would be $1.05-million here, $5.18-million in L. A. and $8.85-million in London.
Mark Cohen, senior vice-president of the Condo Store Marketing Systems, a key player in the industry for more than 25 years, cites other reasons luxury condos still represent excellent value.
“Changing market conditions present good opportunities for buyers and sellers alike. Economic and political uncertainty and a general ‘let’s wait and see where the world is going’ attitude has forced buyers and sellers alike to view purchasing differently,” he says.
“However, if buyers want to buy, they’re finding right now that motivated, practical sellers are making luxury properties very attractive financially, and are creating smart, well-thought-out purchasing opportunities, understanding very well what it takes to motivate discretionary buyers in a time of uncertainty.”
Furthermore, Cohen says, the huge number of choices in the marketplace and the constant raising of the bar in terms of architecture, interior design, suite design, finishing appointments and so on continue to make them excellent investments.
“Best of all, the competition is fierce among builders and developers, particularly in times of uncertainty and this, in turn, also produces great buying opportunities for consumers. Many ‘brave’ buyers come out way ahead when they operate in these times. I’ve seen it on a few occasions over the last two and a half decades in this town,” he adds.
“Today, the international spotlight is focused on Toronto, and our properties here are a steal by comparison,” says Barbara Lawlor, president of Baker Real Estate, an industry expert who’s been selling Toronto condos since 1987.
But on top of that, she says, newcomers to Canada are snapping up condos and luxury condos because they realize their investment potential down the road. With the addition of investors from overseas, these two groups are still playing a major role in driving the market.
“When I started selling condos over 20 years ago, these groups made up just 5% of sales,” says Lawlor.
Indeed, the demand for Toronto’s luxury condos originates from a variety of sources. Affluent immigrants and foreign investors are lining up with the traditional buyers that include empty nesters, Boomers, young professional couples and individuals. And, when you factor in the numerous lifestyle choices currently available, such as upscale downtown living, serene resort-style adult communities complete with adjacent golf courses, waterfront properties with views and so on, the choices become even more alluring.
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Contact the Jeffrey Team for more information - 416-388-1960
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Where the smart money is heading
As the market adjusts to new realities, here are the areas buyers should be looking at
By Gay Abbate – Globe and Mail
With home sales cooling, prices moderating and a healthy housing inventory, market realities not seen recently will shape buyers’ decisions over the next 12 months.
Whether you are looking for a condo, a luxury home, a house in the mid-price range or a recreational property with the potential to become a permanent residence, there are certain areas that will hold their value in recessionary times.
So, where should the smart money go? Which areas represent the best return for your money? Where will your investment provide the best quality of life?
Condo properties
Those for whom money is not an issue can buy a condo anywhere they choose.
But if finances are a key factor, two developing areas that are not yet gentrified and will prove a good investment.
One is the Riverside/Leslieville community, which is the hottest area in the city, with prices one-fifth to one-quarter of those for condos in the Waterfront, St. Lawrence Market and King Street West neighbourhoods.
The area from River Street east to Leslie Street, between Queen and Dundas streets, is extremely vibrant, with buildings being bought up and renovated.
Within this sector, Leslie and Broadview and Carlaw avenues would be great streets on which to buy.
Condo prices there are in the $200,000 to $400,000 range, although some can be found for as little as $180,000.
The West Donlands, between Parliament and River streets, south of Queen down to the Gardiner Expressway, is another up-and-coming area that offers good value. Condos there will sell for $400 to $450 a square foot.
Within the next two years, prices of condos along the Queen strip from Leslie to Dufferin Street will be all in sync at $500 to $600 a square foot.
Sections of Richmond, Adelaide and Kings streets between Parliament and Sherbourne will also become a great places to live. Prices, however, are slightly higher than in the Leslieville neighbourhood because land closer to Yonge Street is more expensive.
The Toronto condo market is more stable than last year, and there are great values to be had by looking in the right places.
Luxury house market
Lifestyle, rising energy costs and ever-increasing commuting times make living in the downtown core more desirable for those with more than $1-million to spend.
Hazelton, Lowther and Elgin avenues in Yorkville will continue to be choice investment areas. In those areas, in the long term, the location is stellar and the quantity of supply is limited.
Townhouses in Yorkville are historically protected and especially attractive to those who love the location but want a backyard, and therefore aren’t interested in living in one of the new luxury condos being developed in the neighbourhood. Buyers are attracted to these streets because of their proximity to the exclusive Bloor Street/Bay Street/Avenue Road retail district. Houses with parking start at $1.5-million, but $3-million is a more realistic price.
South Rosedale’s Chestnut Park and Cluny Avenue are attractive streets because of their proximity to Yonge and the subway, he notes. The average house price is $2-million.
House buyers should also cast their eyes to Warren, Dunvegan and Old Forest Hill roads, where the average price is $5-million. That gets you a large lot, tree-lined street and some of the city’s most influential families for neighbours. Some people are snapping up two lots on these streets and turning them into single properties, thus reducing the number of houses that could potentially come on the market.
The luxury market is expected to remain very stable, and buying in these areas will become more desirable and a good investment.
Mid-price properties
Buyers looking for houses priced between $500,000 and $800,000 should consider parts of the Davisville, Leaside and East York neighbourhoods. The market in those areas is healthy, while schools and amenities are excellent, he says. Little is available in these areas for under $500,000, but there are good properties in the $500,000 to $700,000 range.
Manor Road, Hillsdale Avenue and any street off Bessborough Drive in the Davisville community offer good value.
In Leaside, houses on Thursfield Crescent, Vanderhoof Avenue and Donlea Drive are excellent buys because the streets are safe and the area has great schools. Some detached starter homes on Thursfield begin at $550,000. Detached houses go for $800,000 to $900,000.
In East York, there are good neighbourhoods at Pape Avenue and O’Connor Drive and at St. Clair Avenue and O’Connor. They have nice housing stock, good communities and are affordable and safe. Prices range from $450,000 to $800,000.
Another part of the city that offers excellent value is north and south of Danforth Avenue between Broadview and Coxwell avenues. You can expect to spend between $400,000 and $600,000.
In Etobicoke, homes on streets south of Lake Shore Boulevard West offer excellent value for $500,000 to $700,000.
Semi-detached houses have been more affected by the slowdown in the real estate market, some by as much as 10%, which makes them a wise investment.
Recreational properties
Recreational properties are selling at affordable prices outside of the usual cottage areas, such as Muskoka, which is out of reach for most people. Prince Edward County has waterfront lots for as little as $180,000 and as much as $1-million. Prices are still reasonable because the island has not gotten the attention other areas have received.
Waterfront properties with non-winterized cottages on Lake Consecon and Roblin Lake sell for about $200,000. If you have significantly more to spend, South Bay, Green Point Road and Glenora Road are choice communities in which to live.
Those interested in farmland can purchase about 75 acres with a farmhouse and barn for $350,000 plus.
Towns such as Picton combine country life with big-city amenities such as theatres, shops and restaurants. It has the large historical homes – full of character and architectural details – that rich merchants built, and that are now in high demand, he says. Prices in Picton are in the $250,000 to $300,000 range, although there are more expensive properties.
Other areas to consider are Port Hope, Cobourg and Niagara-on-the Lake, although they are pricier than Prince Edward County.
The market for recreational properties is slower than last year, and the inventory is limited while the demand is high. But there are still good buys that will only increase in value.
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Contact the Jeffrey Team for more information – 416-388-1960
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Residential Property Assessment in Ontario
Each year, the Municipal Property Assessment Corporation (MPAC) prepares an assessment roll for every Ontario municipality. The roll provides the assessed value of all the properties in a municipality or in the jurisdiction of a school board with taxing authority.
MPAC also prepares supplementary assessment lists, which municipalities use to add in-year tax revenue from new construction or major alterations to properties.
MPAC also sends Property Assessment Notices to property owners every year. Property owners can call MPAC at 1-866-296-MPAC (6722) if they need help understanding their assessed value or any other information included on the Notice. They can also ask MPAC to review the assessed value through a process called Request for Reconsideration.
In addition, property owners have the option to file a Notice of Complaint to an independent tribunal, the Assessment Review Board of the Ministry of the Attorney General of the Province of Ontario.
* MPAC assesses 4.4 million properties, more than any other assessment jurisdiction in North America.
* MPAC is also responsible for preparing voters’ lists for municipal elections every three years and for reporting the population of each municipality in Ontario.
* MPAC employees are located across the province in 34 field offices, Customer Contact Centre/Central Processing Facility, and Head office.
* MPAC is a non-share capital, not-for-profit corporation funded by all 445 municipalities in Ontario.
* Every Ontario municipality is a member of the Corporation.
* MPAC is governed by a 15-member Board of Directors. Eight members of the Board are municipal representatives; five members represent property taxpayers; and two members represent provincial interests. All members of the Board are appointed by the Ontario Minister of Finance.
* MPAC provides quality assessment services at an affordable cost. MPAC’s cost-per-property of less than $34.00 is lower than comparable assessment authorities.
* MPAC has received international recognition and awards for the systems it uses to determine the current assessed values of property in Ontario.
* Ontario’s province-wide assessment updates of property values have all exceeded international standards of accuracy.
How MPAC assesses properties
MPAC’s job is to accurately classify and value properties in Ontario in compliance with the Assessment Act and regulations established by the Ontario Government.
To establish your property’s assessed value, MPAC’s assessment professionals analyze property sales in your area. These sales provide the basis for assessed values. Their experts understand local real estate markets and work in our 33 offices located across the province.
They continually collect and update detailed information for every property in Ontario to ensure that similar property types are valued consistently within the market area.
This method is called Current Value Assessment. It is used by most assessment jurisdictions in Canada and around the world.
Property Information
In addition to sales, their experts regularly analyze property information through a number of sources, including:
* land title documents;
* building permits;
* on-site property inspections and communication with property owners;
* income and expense information (for apartment buildings or hotels); and
* real estate boards.
MPAC’s database contains over two billion pieces of data, and is one of the most detailed in the world. Like all assessing authorities, MPAC is able to determine accurate values for large groups of properties based on common data and mass appraisal techniques.
Assessing Residential Properties
In addition to recent sales, MPAC looks at the key features of every property. Although as many as 200 different factors are considered when assessing the value of a residential property, there are five major factors that account for 85% of the value:
* location;
* lot dimensions;
* living area;
* age of the property, adjusted for any major renovations or additions; and
* quality of construction.
Other key features that affect value include:
* secondary structures such as garages, boathouses and pools;
* basement area (finished & unfinished);
* type of heating;
* air conditioning;
* number of bathrooms; and
* fireplaces.
Site Features
Site features can also increase or decrease the assessed value of your property. These include:
* traffic pattern;
* proximity to a golf course, hydro corridor, railway or green space; and
* whether or not the property is located on a corner lot.
Property Location
Under Current Value Assessment, recent sales of similar properties are analyzed and used as an indicator of the value of residential properties.
Location is the most important factor in determining the assessed value of any property. MPAC analyzes every property and land sale transaction in Ontario.
MPAC divides the province into approximately 140 market areas and then further divides each of those areas into neighbourhoods and sub-neighbourhoods to evaluate the degree to which location influences the market area.
For waterfront properties MPAC typically looks at the entire lake or a group of similar lakes. For condominiums, each condo plan is typically considered its own neighbourhood.
Property Classification
In addition to valuing your property, MPAC also classifies your property.
There are seven major property classes: Residential, Multi-Residential, Commercial, Industrial, Pipe line, Farm and Managed Forests. There are also several sub-classes for properties with specific or unique characteristics.
Some properties may belong to more than one class. For example, if a small business is being operated out of the home, the property would fall into two classes (residential and commercial).
A Simple Test
To find out if your assessed value is accurate, simply ask yourself if you could have sold your property for its assessed value on the applicable valuation date.
See your Property Assessment Notice for the value and valuation date. If the answer is yes, then your assessed value is accurate.
MPAC wants to make sure the classification and assessed value of your property is accurate. If you don’t think it is, call them.
To Find Out More
MPAC will provide you with information, free of charge, to help you understand your property’s assessed value.
You may request information about your property and comparable properties through AboutMyProperty at www.mpac.ca. You can also call 1-866-296-MPAC (6722) to learn more.
MPAC has increased the number of free detailed reports available through AboutMyProperty – from six to twelve. Property Owners who register on AboutMyProperty now have access to more detailed information to help them determine whether their property’s assessed value is accurate. The additional six detailed reports replace the six, less detailed “look-ups” that were previously available.
Registered owners will have access to a profile of their property, as well as detailed reports on 12 similar properties of their choice. The detailed reports include address, roll number, current value assessment, sale and site information, and residential structure details such as square footage.
This enhancement is for new and current users, so if you’re already registered with AboutMyProperty, you will have access to twelve new detailed reports.
Property Taxes
When your municipality sets property tax rates, they will be applied to the assessed value of your property to determine your property taxes.
Education tax rates, which are set by the Ontario Government, will also be applied to the assessed value. Questions about your local tax rate should be directed to your municipality.
What is MPAC?
MPAC is a not-for-profit corporation funded by all Ontario municipalities. Theirr job is to classify your property and assess its value.
To learn more about MPAC or if you have a question about your property’s classification or assessed value, please visit their web site at www.mpac.ca.
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Contact the Jeffrey Team for more information – 416-388-1960
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