Toronto Homes near Schools offering IB programs

And now it’s time for your Toronto Real Estate ABC’s.

A) There’s a new incentive for buying a house right now. B) A school with an International Baccalaureate diploma.

C) It’s a smart move.

Know this, and you can advance to the head of Toronto’s home-purchasing class.

Anecdotal evidence suggests that IB schools are behind a recent spate of bidding wars erupting in the GTA.

Widely perceived as a private school perk, academically elite IB programs are increasingly on offer through the public system, and houses in neighbourhoods with IB schools already in place are reaping the benefits.

“They’re a new real estate trend,” says Bill Thom an agent with Re/Max who says much of his business these days is coming from parents looking to buy homes in areas where there are schools with an IB program.

“Instead of giving $25,000 to a private school, I tell my clients to put that money instead on their mortgage. An IB school in their neighbourhood is a guaranteed world-class education, so why look elsewhere?”



Agent Bill Thom in Richmond Hill, an area that he believes has exploded in value thanks to local IB programs.
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Mr. Thom says that houses in areas with an IB school are selling faster and for more money right now than those in areas where this rigorous academic program isn’t already in place.

One of his recent listings was a two-storey at Bayview and 16th Avenue that after only five days on the market received 10 offers, largely because of nearby Bayview Secondary School, which implemented its IB program about five years ago.

“When that came in, it changed Bayview Hill’s housing prices,” says Mr. Thom. “Then they turned Bayview Hill Elementary School into an IB school too, so that made Bayview Hill even more desirable.”

IB schools have a reputation for providing among the most challenging of high school programs. The International Baccalaureate was originally developed in Switzerland in 1948 as a rigorous study program that would give the children of diplomats an entree to schools around the world.

The two-year academically enriched program stresses enhanced time-management skills along with an academic program combining advanced study with creative and athletic pursuits.

Home buying
Homes that get an A+
DEIRDRE KELLY
Toronto— From Friday's Globe and Mail

Toronto schools offering IB programs are often sought out by people moving to the city for the first time who are looking to buy real estate, says Alex Pino, an agent with Sotheby’s International Realty Canada.

“I think houses that are close to IB schools sell faster as there are many buyers coming from all over the world to the city looking for this education for their kids,” Mr. Pino says.

“In Rosedale and Summerhill, we see houses close to Branksome Hall and The York School selling faster and sometimes with several families bidding on them as they want their kids to walk to the IB schools. We just sold a Rosedale house to a family from South Asia whose girls are going to the local IB School.”

But it’s the public schools with IB programs having the biggest impact on the local real estate market, experts say.

Such is the case of Monarch Park Collegiate, an east-end high school that for decades has had a bad rap for being in a sometimes rough-and-tumble working-class neighbourhood.

Real estate surrounding the school has rarely been a hot commodity.

But that has changed since the implementation in September, 2008, of an IB world program that over the past two years is credited with turning the neighbourhood around, at least from a real estate point of view.

“Frequently, I get calls from people wanting to move into the area from another province or country who are looking for an IB school,” says John Au, Monarch Park’s IB program co-ordinator. “It becomes a factor for them wanting to move into the neighbourhood. They want to be closer to our school.”

Homeowners don’t necessarily have to buy in areas with an IB school in order to attend. As a specialized program within the Toronto District School Board (which, unlike other districts, doesn’t charge students wanting an IB diploma), the IB program is open to students outside a particular school’s catchment area.

But, increasingly, families are drawn to a neighbourhood, wanting proximity to their child’s education.

In Parkdale, an until recently downtrodden neighbourhood in Toronto’s west end, the presence of an IB school is cited as one of the reasons the area is turning itself around.

Parkdale Collegiate, founded in 1888 and the city’s second oldest high school, implemented its IB diploma in September, 2008, and since that time enrolment has spiked as a result of families actively seeking out the school, says Andrew Lin, the school’s IB program co-ordinator.

“We had 600 students before, when we didn’t have the program, and we now have 875. We average about 50 to 90 new students a year,” Mr. Lin says.

“The IB program is one of the main reasons for that increase. People in the neighbourhood recognize the value of an IB world school, and they recognize its value to the community.”

Buying a Home in Toronto

Finding the perfect home doesn't happen in one day. There are a number of things you can do to simplify the process, including defining financial parameters, potential neighbourhoods and the desired features in your next home.

Do you need an extra bathroom, a garage, a fenced backyard, or lower utility bills? Do you want a fireplace, a short drive to work, or maybe minimal yard work? Once your list is complete, decide what is most important to your lifestyle.

Then it's location, location, location. Location affects your day-to-day living and is one of the most significant influences on value. Your choice of location may be limited somewhat by the price you can afford. Even so, make sure you consider such things as distance to work, schools, shopping and entertainment.

What type of property do you want? A single-family detached home is attractive to many people because it typically provides more living space and land. On the other hand, a condominium may be a more appropriate choice for you, with an emphasis on maintenance-free living.

A REALTOR® can help you analyze all of these buying issues. A REALTOR® working as a buyer's agent works to find the connection between homes available in the market and the needs and financial capacity of buyers. Talk to and compare the services of REALTORS® to help you navigate through this complicated business transaction. Be comfortable and confident with the REALTOR® you are selecting as your business partner.

As your agent, the REALTOR® owes you the duties of utmost care, integrity, confidentiality and loyalty. Make sure you discuss agency with your REALTOR®. In most provinces, if a REALTOR® is showing you homes, they are automatically deemed to legally be your agent, and owe you all of the associated obligations.

A REALTOR® will use various tools to try and find properties that meet your specifications including the MLS® service. One of the important search tools will be the local MLS® system. By sitting down at a computer the REALTOR® can key in your needs, choice of neighbourhoods and price range and immediately come up with a list of suitable properties available through the MLS® system. You can also view listings posted to the national REALTOR.ca web site.

When you select a property and decide to visit a house, there are many things to consider. Does it have all the features you wanted? Is the neighbourhood what you expected? Try to picture your favorite furnishings in a room. Remember all of the technical considerations:

what type of wiring does the house have?
what about power outlets? Different appliances use different types.
what type of heating system does it use?
what about the roof and foundation?
what condition are the windows in?
what about the plumbing?
There are other things to look at as well. If you don't have time or don't feel comfortable doing it, home inspection services are available for a reasonable fee. Having a qualified home inspector look at the house is always a good idea. The older the home, the greater the need for professional inspection.

Once you find the house you want to make your home, work with a REALTOR® to develop an offer. In the offer, you should specify how much you're willing to pay. State when the offer expires, and suggest a closing date for the transaction. You can also propose some conditions on the offer. Some common types of conditions are:

getting a suitable mortgage (include the amount, interest rates and any other figures you feel important);
selling your current home (the seller may continue to look for a buyer, but will give you the right of first refusal);
the seller providing a current survey, or a "real property report," showing the location of the house on the property owned by the seller and that there are no encroachments;
the seller having title to the property (your lawyer will check this out when he or she conducts a title search to see if there are any liens on the property, easements, rights of way or height restrictions);
if there is a septic system, the seller should have a health inspection certificate, stating the system meets local standards;
if you still have any doubts about the home's safety and construction, you may wish to make the purchase conditional on an inspection by a qualified engineer;
any inclusions - basically, what stays and what goes.
You will need to present a deposit along with your offer. An appropriate deposit will show your good faith to the seller. The seller's agent is bound by law to bring all offers to the seller's attention.

After your offer is accepted and all the conditions are met, the offer becomes binding on both sides. If you walk away from the deal at that point, you may lose your deposit. You may also be sued for damages. Make sure you understand and agree with all of the terms of the offer before signing.

No matter what type of home or property you're buying, plan on some extra expenses. In some provinces, you may have to pay a land transfer tax (a sales tax on property).

You may also have to pay:

a mortgage Broker's fee:
an appraisal fee;
surveying costs (if the seller couldn't come up with a current survey); and,
a high-ratio mortgage insurance premium.
an interest adjustment. Mortgages are normally calculated from the first of each month: if your closing date is the same as the beginning of your mortgage, there will be no adjustment. However, if your closing date is July and you move in on June 15, those last 15 days are the interest adjustment period. Your lender will expect you to cover the cost of the interest during that time.
You'll also have to reimburse the seller for the unused portion of any prepaid property taxes or utility bills. As well, you must also pay any legal fees, and, if applicable, any REALTOR® fees. Be prepared to furnish proof to your lender that you have insured your new house as well.

Before the property can formally change hands, there are still a few things to do. On or before closing day, your lawyer and the seller's lawyer will arrange to transfer title of the property from the seller to you. The mortgage money will be transferred to your lawyer's trust account, and then to the seller, and your lawyer will bill you all additional expenses such as land transfer taxes or outstanding legal fees.

At this time, be sure to check with your lawyer that everything is as stated in the offer-to-purchase. Once you're satisfied and the keys to the front door are in your hands, there's nothing else to say... except welcome home!

(The comments contained on this site are for information purposes only and do not constitute legal advice.)

47-St.Tower, Dwntwn Tor.~King W Theatre Row frm $299,9. B 1st. 2 preview prices/floor plans. www.PeterTarshis.com

Happy Condo Living

Secrets for Happy Condo Living
Living in an apartment or condo can be a rewarding experience and you can truly be happy with a lower cost and little work. However, a condo is more than a financial commitment; it's a social commitment as well. In this article we'll examine these considerations to make sure that your new condo life is a great one.

When you're in buying mode, it's common to think only in terms of dollars and cents. But it's essential not to forget the social aspect of living in a condo. Different complexes work well for different kinds of people, so get to know your complex as well as your prospective neighbours to make sure that they're a good fit for you. If you're easing into retirement, it might not be a great idea to buy a condo next to a bunch of hard-partying college kids or vice versa.

When you live in a condo you have to share walls, ceilings, floors and common areas with neighbours. All of this means keeping close quarters with your neighbours. While that is not a big deal for those who have lived in apartments, others will have to get used to that level of close proximity to their neighbours.

The key to happy condo living is keeping your neighbours happy too. Respecting your neighbour’s right to the quiet enjoyment of their home is part of the arrangement. Your neighbours will appreciate, and hopefully reciprocate your efforts to lower the volume, walk quietly, and limit your vacuuming and entertaining to reasonable hours.

Another big issue in condominiums is pets. Most people are good about looking after their dog, but some people who exercise their pets will take them to the courtyard and not clean up after their pet’s mess.

A little flexibility is important too. If your neighbours are willing to turn down the volume for you and keep things as quiet as they can, perhaps you can be more understanding to their situation as well. They’ll really appreciate the give-and-take relationship. For your neighbours with children, try to remember that kids will be kids.

You need to remember that a condo living is a community, so you need to deal with your neighbours as community members and try to resolve the issues together. If that fails, the board will then intervene. For the most part, condo boards will ask people to resolve most issues themselves. They will recommend going to the neighbour and sitting down to talk with them to work things out.

Before you make a condo purchase, knock on a couple of doors and introduce yourself as a potential buyer. Ask your future neighbours questions about the complex that aren't being answered by the real estate agent, or ask the same questions again to get a different perspective without the sales pitch! Not only can you learn a lot about the people you'll possibly be living next to, but you can gain insight into how much they enjoy living in the complex.

Toronto Condo's on a roll- Fall 2010

In an astonishing turnaround, the Greater Toronto Area's new condo market shot from

moribund to near record-breaking in September.

In August only 861 suites changed hands,

while in September that number rocketed to 1,658.

Investor Alert - Fall 2010 - Condo Report

TORONTO-In contrast to the short backward slide of the US market, Toronto’s office space actually saw a drop in vacancy in the third quarter 2010 to less than 10%, which hasn’t been seen since early 2009. The lease-up of four new office towers to about 10% vacancy helped the market, though Avison & Young experts say the focus is now on large blocks available in former bank buildings downtown.

Bill Argeropoulos, VP and director of Canada research for the company, says the movement seen but not proven in the second quarter finally came to roost in the third, with close to 2.5 million square feet of transactions, 70% being renewals and expansions, and 30% relocations. However, he tells GlobeSt.com that the 9.7% vacancy isn’t too wonderful, as space that’s currently occupied but being marketed boosts the potential vacancy to 11.6%. “It’s likely foreshadowing, the vacancy figure will probably tick up higher and peak in 2011 before it begins to retreat,” he says.

He says four of the five new office towers downtown are now 90% occupied, including Bay-Adelaide Centre West, Telus Tower, RBC Centre and Maple Leave Square. Only 18 York St. is still under construction, “and that building is largely leased, only one floor available, and it should be delivered in the latter half of 2011,” Argeropoulos says. There are 11 full floors available in these developments, with the largest contiguous block being 80,000 square feet.



Now, it’s the older large bank buildings in the city’s financial core that are at risk of losing tenants. “If you look at the four towers there, there’s more than 200,000 square feet available, a result of tenants vacating for the new buildings or other properties,” Argeropoulos says. “They’re at 16% vacant, a glut in that district that I’ve not seen in my 22 years in the business.”

These older structures include Commerce Court West, Royal Trust Tower, First Canadian Place and TD Bank Center. Argeropoulos says renovation projects have begun for the properties, especially at the Brookfield-owned First Canadian, where the company is in the process of re-skinning the 72-story, 2.4-million-square-foot building, now about 17% vacant.

Similar to the US market, the Toronto trophy office market is starting to narrow, he says. “It’s getting so that large-block users, and/or tenants who want a LEED-certified space, may have to wait another three-to-four years. There isn’t a developer who is going to go into the ground on a speculative basis unless there’s a willing lead tenant,” he says.

Categories: International, Office, Leasing, Canada
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Buying a Home : 10 things You need to know!

Buying a home: 10 things you need to know

Tony Wong


Buying a house can be daunting, but a little planning makes it less stressful.

Shutterstock/Shutterstock


Buying a home is the largest purchase you’ll likely make. No wonder you’re stressed. Where should you look? Can you afford it? What will happen if interest rates rise? It may all seem daunting, but you can make it more manageable with a little planning. Here are a few things to figure out before you make the leap.

1. Get your financial house in order



Figure out your net worth, which is your assets less your liabilities. Assets are things like cash, investments, savings, cars, boats and so on, while liabilities are things you owe – car loans, amounts on lines of credit, overdrafts, credit cards. Subtracting one from the other tells you what you’re worth. Hint: If you get a negative number, you should probably re-think the whole thing.

The bigger the down payment the less interest you will pay in the long run. Well before you start looking for a house or condo, build a budget that will allow you to put some money away each month for that down payment.

2. Talk to a broker or your bank

Choosing a mortgage is like going to an ice cream parlour – there are dozens of choices and different flavors.

It may be time for a mortgage broker or adviser at your bank. A mortgage broker will shop around, much like an insurance broker, to find you the best deal. Your banker will sell you a mortgage offered by the bank. That doesn’t mean you can’t negotiate with your bank. The posted rates are a starting point and you can usually get a better deal. If they won’t negotiate go somewhere else.



Don’t be afraid to ask questions. If you go to a broker, ask how long they’ve been in business, what kind of products they offer and if they have references. Often the best way to find a broker is word of mouth. Ask your friends.

3. Terms and rates

The next decisions revolve around how long you want to lock the mortgage in and than will determine the rate of interest you pay. This is called the mortgage term and can be as little as six months or as long as seven years. It locks you in to a set of payments for the length of the term. Shorter terms have lower rates of interest.

Along with this is the amortization period, or the amount of time it will take to pay off your loan. It might run anywhere from say, 15 to 35 years.

The longer your amortization, the more interest you will pay. It may be worth considering a weekly mortgage. The monthly payment is divided by four, but the advantage is that you make four extra payments a year which are applied to principal. It’s a painless way to pay down your mortgage faster.

Once you’ve settled on a rate, term and amortization period, you get a mortgage pre-approved by your lender.

4. Get a real estate lawyer



While your dentist can likely do a fine root canal, an endodonist will likely do a better job. In some cases there won’t be a substantial difference in cost, but it could save you some pain down the road. Similarly, having an experienced real estate lawyer looking over your purchase agreement, checking for outstanding taxes and liens or claims against the property can be a lifesaver down the road.

Line the lawyer up in advance and explain your plan. That way, there’s no surprise when you put in your offer and come back to him with the deal.

5. Have realistic expectations

First time buyers often start with a wish list that may not be realistic given their resources. Starting big is fine, as long as you recognize that along the way you’ll make trade offs between location, size of house and features.

First, assess your lifestyle . If you are single, enjoy walking to Starbucks for a latte and hate cutting grass, then a detached home in the suburbs is likely not for you.

Make a list of the things you want. Do you need a two car garage? Space for a home office? Are you going to have children? Is it a good location? [hotlink to 10 things story] Don’t look at the house in isolation. Make sure the neighborhood, schools and surrounding amenities and services fits your needs.

Now start looking around. Use the internet, newspapers, and real estate magazines to get up to speed. Go to open houses to get a sense of what’s available at what price. Knowledge is power. A good place to start is with your local Multiple Listing Service site.

6. Stick to your plan

Understand what your spending limit is and don’t go over it. A pool might be nice, but it is not a necessity. Buying a home is ultimately a compromise of needs versus wants.

Try not to get emotional. In a hot market, bidding wars can be tough on buyers. But you could end up with a whole pile of buyer’s remorse if you think you overpaid.

Or what may look like a lemon. Homes that are in disrepair or need fixing up can usually be purchased for less. Don’t be hung up on the wallpaper, or the fact that the kitchen isn’t pristine.

Use a little imagination. Yes, it’s going to take work, but the savings could be worth it. Because when life gives you lemons, a slap of paint and a trip to the hardware store will Increase housing value like you wouldn’t believe.

7. Buyer agency agreement

Make sure that your agent represents you. A buyer agency agreement helps to reduce conflict of interest since the brokerage represents you exclusively. The seller’s agent represents the vendor.

A buyer’s agent for example, will tell you why you shouldn’t be buying a particular home. Make sure that the guy or gal on your team is batting only for you.

8. Get a home inspection

You wouldn’t buy a used car without checking under the hood, so why buy a house without a home inspection?

A home inspector will check for structural and electrical defects, roofing and foundation problems. This can come back to haunt you later. It also gives you some negotiation room when you put in your offer.

In hot markets, sellers may press to have the inspection waived. Don’t give in and get swept away in the heat of the moment. Walk away.

At the end of the day, it boils down to your risk profile. I have a friend who sometimes drives without a seatbelt. My cousin meanwhile, loves the fact they have somehow managed to invent car airbags for her knees. My theory is it’s better to have somewhere soft to land.

9. Don’t be afraid of being a landlord

One way to pay your mortgage off faster is to have someone help you. Buying a duplex or triplex is not a bad way to go, particularly in urban areas where prices have been bid up. Renting out the basement in a single detached home or a spare room is also a smart idea if you’re not using the space. And the extra money in your pocket may mean that you can afford a nicer home in a better neighborhood.

10. Maybe you should rent

Just because all your friends have put money down on a new condo doesn’t mean that you have to follow suit. Depending on your circumstances, it might make more sense to rent than buying a home. A rent versus buy calculator can help you figure it out http://www.ic.gc.ca/eic/site/oca-bc.nsf/eng/ca01821.html

Taxes, maintenance and utilities can add up. A low interest rate environment can tip the rent verses buy equation into the buy side, while higher interest rates, which make buying less affordable, can make it more favorable to rent.

In many cases, it is much cheaper to rent than it is to buy. Most studies show however, that in the very long term, it is better to buy. However, if you tend to move a lot, don’t like to deal with maintenance issues, and want to free up some money for other things, then renting might be the best lifestyle choice.

Tony Wong writes about real estate for The Toronto Star.

via thestar.com

Preparing your home for Fall

Keep your home in tip-top shape inside and out

Early Fall is the time of year to prepare your home for the cooler weather.
It's extremely important to make sure that your heating system is working properly and safely. It is recommended that a heating and cooling specialist look over your system once a year at this time.

If you have a forced hot air system, your heating and cooling use the same filters. If they're dirty then filthy air will be circulating around your home. Filter changing is something that homeowners can do themselves. It should be done three or four times over the course of the winter.

If you have gas heat, your serviceperson should check the pilot light, burner and chimney flute. That is where carbon monoxide byproduct exists in your home and you want to make sure that it is not building up in your home.
Forced hot water heating systems (baseboard heat) should be checked and serviced as well.

There may also be things that need attending to beneath your property. Have your sprinkler system flushed before the cold sets in. The process involves blowing air into pipes to displace leftover water. This is important because water lines are typically only 6 to 8 inches below the ground and are prone to freezing.

Homeowners with septic tanks should think about having them pumped out now before the ground freezes and snow buries the yard. Septic tanks should be checked every year and cleaned no less than every three years.

More Fall maintenance tips in the next issue.

Dream of home ownership

The dream of home ownership is no longer pie-in-the sky, it's just up in the air. Literally.

The crux of a Re/Max Ontario-Atlantic Canada report released this week reveals Canadians have stopped dreaming of "white picket fences" and are now focused on "funky loft apartments."

But even the real estate company had to admit in its press release that this desire to live in condominiums is principally being driven by the fact that's all many people can afford the first time they dip their toes into the housing market.

"As one of the few affordable housing options available to first-time buyers, the concept is poised for dramatic growth in years to come," said Michael Polzler, the executive vice-president of the company.

The condo market has become part of the urban landscape with one in every three homes sold in the Greater Toronto Area falling into the category. Even in small centres like Halifax, the condo has become a significant chunk of the housing market.

As home ownership levels have climbed during this housing cycle, one of the reasons behind the surge has been the rise of the condo, says Craig Alexander, chief economist with TD Bank Financial Group.

"Condos, generally speaking, have a lower entry point than many other dwellings. Of course, that is generalizing. But if you are single and you are entering the housing market for the first time, a one-bedroom condo is often the key entry point," he says.

Mr. Alexander says the big question for prospective condo buyers is what will happen to prices as supply begins to surge. Toronto is building more high-rise condo units than any other city in North America, says research firm Urbanation Inc.

"Condos are at most risk if we see a cooling and softness in prices," he says, adding the that this segment of the housing market is going to reap the benefits from a change in demographics and attitude that has people wanting to live downtown. "We are seeing a renaissance in urban living, people want to live in the core."

He can't prove it statistically, but Mr. Alexander says it's become more common for children to go directly from their parents' home to buying a home, skipping over the renting stage that had become common for previous generations.

Part of the reason is affordability, but government policy has also made it easier to buy property and the condominium model is gaining from the ease of entry into the market. Government-backed mortgage insurance has made it possible to buy a home with as little as 5% down, compared to 10% in the early 1990s. At one point the down payment could be as little as 0% until the government cracked down two years ago.

Then there's the amortization period, which was stretched to 40 years from 25 years by the mortgage industry before it was scaled back to 35 years. But even at that length, it's much easier to qualify for a mortgage as your monthly payment goes down.

But if all you can afford is a condominium, should you make a condominium your first home?

"The condominium market is more volatile, it moves faster in both directions. But having said that, owning a principal residence is generally a good thing, as long as you can afford that," said Ted Rechtshaffen, a certified financial planner and chief executive of TriDelta Financial Partners "It's a good wealth builder because it's the only thing you can buy that is tax-free [in terms of capital gains]."

All of that is true, but a condominium should be like any investment. You have to consider whether you plan to hold it long term. If you do, then price gyrations up and down are not as important. The same holds true for transaction costs.

"It's like a stock portfolio. If there are lots of transactions, it adds costs. One of the reasons people think real estate is safe and stocks are not, is they hold real estate for 10 or 15 years," Mr. Rechtshaffen says. "If your plan is to be there for two years, there are a lot of transaction costs to cover."

The days of flipping a cond are long over, if they ever truly existed in this cycle. Once you figure land transfer costs, real estate commissions, lawyer fees and the cost of mortgage insurance, a condo is really like any other housing stock, just cheaper.

gmarr@nationalpost.com