General
2024 Canadian Federal Budget
The 2024 Federal Budget includes several initiatives aimed at combatting the housing affordability crisis. The federal government has pledged to build 3.87 million homes by 2031, offering underused federal land to contribute to nearly half of the quota. The RRSP Home Buyers Plan withdrawal limit has also increased from $35,000 to $60,000. Do you think any of these initiatives will result in real change?
Underrated Neighbourhoods in Toronto
Toronto has so many incredible neighbourhoods to choose from when you are looking for somewhere to live, but some are more overrated than others. Some neighbourhoods like The Pocket and Dovercourt Village don't get as much attention as they deserve.
The Pre-Construction Price Gap
Pre-Construction pricing in Toronto is often $400-800 higher per square foot compared to resale condo pricing. At the Rotman Real Estate Roundtable, Brad Lamb, a developer in Toronto, was asked to justify the cost difference and why any buyers would choose to spend so much more on a condo they likely won't see for 5-6 years.
Foreign Buyers Ban
The Government of Canada extended the foreign buyer's ban on Canadian homes by two years. This ban prohibits non-residents from purchasing most residential properties in Canada. It was originally set to expire in 2025 but will now remain in effect until 2027.
Are Foreign Buyers the Cause of Canada’s Housing Crisis?
Foreign buyers have been scapegoats for the housing affordability crisis in Canada for many years, but are they the real culprit? In both 2022 and 2020, only 1.9% of residential transactions were made by non-residents, indicating that perhaps they have a smaller bearing on our housing crisis than people may think.
Toronto Property Tax Increase
The City of Toronto has proposed a 10.5% increase to property taxes, which would result in an additional annual expense of $300 for the average home. Toronto currently has the lowest property tax rate in Ontario, but a double digit increase will sting many homeowners.
The Great Adjustment
Get ready for the “great adjustment” in Canada’s housing market in 2024. BUT - it isn’t what it sounds like
The Duty of Cooperation Policy
The Canadian Real Estate Association implemented a new policy for Realtors, the Duty of Cooperation, which requires all coming soon and exclusive listings to be listed on MLS within 3 days of first being publicly marketed. The policy is aimed to offer equal opportunity to all buyers in the market, but can be restrictive in the seller's choices on how they'd like to sell their property.
Changes to the Real Estate Industry
On December 1, 2023, TRESA Phase 2 took effect and it brought major changes to the real estate industry. Shopping around and putting an offers with the listing agents will no longer be the norm. Consumers have the choice between being represented by a realtor or electing to be a self represented party - in which case they or their lawyer would be responsible for drafting and submitting their offer.
Open Offers and More Changes to Ontario’s Real Estate Legislation
Real estate in Ontario saw some major legislative changes at the end of 2023. The introduction of TRESA, the Trust in Real Estate Services Act, is going to change many aspects of the industry. Much of these changes are focused on the handling of multiple offers and multiple representation, including allowing sellers to run an open offer process without requiring the consent of all participating parties.
The History of The Junction
The Junction was first founded in 1884 and later grew into the City of West Toronto before it was amalgamated with the City of Toronto in 1909. It was a bustling area with strong industry growth due to the railway tracks. The workers began behaving like it was the "wild west" and the residents voted to ban the sale of alcohol in 1904. The prohibition lasted until 1998, and since many great bars and restaurants have opened in the neighbourhood.
The History of High Park
High Park was once privately owned by a married couple, John & Jemima Howard. They donated the land to the City BUT on the condition that the park remain free and open to the public, and that no alcohol be consumed om the land. The abundance of green space has made High Park one of Toronto’s most desirable neighborhoods
The History of Liberty Village
Did you know that Liberty Village got its name because it housed the Toronto central prison? this popular neighbourhood has quite an interesting history
What is Kitec Plumbing and Why is it Bad?
You should always look out for Kitec plumbing when looking at properties, mainly condos, that were built between 1995 and 2007. Kitec plumbing is almost prone to burst and when this happens it can cause severe flooding. You can identify Kitec plumbing by looking for blue and orange pipes that have “kitec” written on them, typically below the sink or in the laundry area.
The Components of a Mortgage Payment
Did you know every mortgage payment is made up of two key components? First is principal, which is what actually goes towards your equity - paying your mortgage down. Secondly is interest, the cost of borrowing the money from the lender. With today's rates, its likely that upwards of 70% of your mortgage payment will be going towards interest in the first few years.
How Important is Appreciation When Buying?
While appreciation is an important factor to consider when buying a home, it’s not the most important factor if you plan to live there for several years. You should consider where you want to live FIRST, and then you consider appreciation, rather than buying a home somewhere you won't enjoy.
Day Trading Housing
When did real estate in Toronto stop being viewed as housing and start being viewed as a short-term investment? In the past, there were periods people would buy and sell a few years later, taking a small loss, and that was normal. Now, if people don’t see a 10% profit year-over-year, they become enraged. Don’t forget that you are not guaranteed a profit, rather it should be considered a benefit/bonus to owning a home. Housing isn't a stock that can be day-traded.
A Common Issue in Semi-Detached Homes
The early 1900’s semi-detached dilemma… So many old Toronto homes, especially semi-detached houses lack a proper entryway or a coat closet. In many houses you walk directly into the living room when you enter from the front door, and there isn't always room to add a closet. This can be very inconvenient in Canada where we need tons of coats and boots!
What is a High Ratio Mortgage?
Don't have 20% to use as a down payment for your home purchase? You still have options. A high ratio mortgage is when your loan amount is greater than 80% of the home's value. This is also referred to as an insured mortgage. Common for first-time buyers or condo buyers, as the maximum purchase price for a high-ratio mortgage is $999,999.
The Life of a Home Owner
The name of the game when you become a homeowner is a neverending to-do list of things that have broken or need maintenance. A leaky faucet, a broken fridge door handle, you name it! It is a lot of work to own a house, but at the end of the day its all worth it.
New Developments Aren’t Solving Our Housing Crisis
With each new condo development, units seem to get smaller and smaller. However, who is this increase in supply catered to? We need a larger supply of family-friendly units, NOT 290sq ft studio apartments.