1) Furnace Inspection:
Call an HVAC professional to inspect your furnace and clean ducts.
Stock up on furnace filters and change them monthly.
Consider switching out your thermostat for a programmable thermostat.
If your home is heated by a hot-water radiator, bleed the valves by opening them slightly and when water appears, close them.
Remove all flammable material from the area surrounding your furnace.
2) Get the Fireplace Ready:
Cap or screen the top of the chimney to keep out rodents and birds.
If the chimney hasn't been cleaned for a while, call a chimney sweep to remove soot and creosote.
Buy firewood or chop wood.
Store it in a dry place away from the exterior of your home.
Inspect the fireplace damper for proper opening and closing.
Check the mortar between bricks and tuckpoint, if necessary.
3) Check the Exterior, Doors and Windows:
Inspect exterior for crevice cracks and exposed entry points around pipes; seal them.
Use weather-stripping around doors to prevent cold air from entering the home and caulk windows.
Replace cracked glass in windows and, if you end up replacing the entire window, prime and paint exposed wood.
If your home has a basement, consider protecting its window wells by covering them with plastic shields.
Switch out summer screens with glass replacements from storage. If you have storm windows, install them.
4) Inspect Roof, Gutters & Downspouts:
If your weather temperature will fall below 32 degrees in the winter, adding extra insulation to the attic will prevent warm air from creeping to your roof and causing ice dams.
Check flashing to ensure water cannot enter the home.
Replace worn roof shingles or tiles.
Clean out the gutters and use a hose to spray water down the downspouts to clear away debris.
Consider installing leaf guards on the gutters or extensions on the downspouts to direct water away from the home.
5) Service Weather-Specific Equipment:
Drain gas from lawnmowers.
Service or tune-up snow blowers.
Replace worn rakes and snow shovels.
Clean, dry and store summer gardening equipment.
Sharpen ice choppers and buy bags of ice-melt / sand.
6) Check Foundations:
Rake away all debris and edible vegetation from the foundation.
Seal up entry points to keep small animals from crawling under the house.
Tuckpoint or seal foundation cracks. Mice can slip through space as thin as a dime.
Inspect sill plates for dry rot or pest infestation.
Secure crawlspace entrances.
7) Install Smoke and Carbon Monoxide Detectors:
Some cities require a smoke detector in every room.
Buy extra smoke detector batteries and change them when daylight savings ends.
Install a carbon monoxide detector near your furnace and / or water heater.
Test smoke and carbon monoxide detectors to make sure they work.
Buy a fire extinguisher or replace an extinguisher older than 10 years.
8) Prevent Plumbing Freezes:
Locate your water main in the event you need to shut it off in an emergency.
Drain all garden hoses.
Insulate exposed plumbing pipes.
Drain air conditioner pipes and, if your AC has a water shut-off valve, turn it off.
If you go on vacation, leave the heat on, set to at least 55 degrees.
9) Prepare Landscaping & Outdoor Surfaces:
Trim trees if branches hang too close to the house or electrical wires.
Ask a gardener when your trees should be pruned to prevent winter injury.
Plant spring flower bulbs and lift bulbs that cannot winter over such as dahlias in areas where the ground freezes.
Seal driveways, brick patios and wood decks.
Don't automatically remove dead vegetation from gardens as some provide attractive scenery in an otherwise dreary, snow-drenched yard.
Move sensitive potted plants indoors or to a sheltered area.
10) Prepare an Emergency Kit:
Buy indoor candles and matches / lighter for use during a power shortage.
Find the phone numbers for your utility companies and tape them near your phone or inside the phone book.
Buy a battery back-up to protect your computer and sensitive electronic equipment.
Store extra bottled water and non-perishable food supplies (including pet food, if you have a pet), blankets and a first-aid kit in a dry and easy-to-access location.
Prepare an evacuation plan in the event of an emergency.
We hope you enjoy this issue of our November Newsletter
Wednesday, November 2, 2011
Thursday, September 15, 2011
20 things to look for in a home inspection
September 09, 2011
Mark Weisleder
I continue to receive complaints from readers about problems that they
discover after closing their home purchase. Most complain about sellers who
fail to disclose defects or home inspectors who fail to find them. The system is far from perfect. However, there are steps that buyers can take before and during a home inspection to protect their interests.
Check all electrical outlets to make sure that they work.
Open windows, even in the winter, to make sure they are not stuck or painted shut.
Look under any area rug or bed and behind any picture to check for cracked
tiles, stained carpets or walls. Lift anything on the kitchen counters to look for defects.
Do any of the appliances show any rust? How old are they? If they are
discontinued models, you will likely have to replace them if they break down because of the difficulty of finding replacement parts.
Start the dishwasher at the beginning of any home inspection.
By the end, it should have gone through its entire cycle, without leaking.
Put a thermometer inside the oven and turn it on to 350 degrees. After 10
minutes, check the temperature. Test stove burners.
Put a cup of water in the microwave for 45 seconds. Does it heat up?
Flush every toilet and see whether it stops running after it is filled.
Check sinks, tubs and showers in the house. Is there proper water flow from
each faucet and does everything drain properly?
You may want to consider turning all the faucets on at the same time and then flushing a toilet upstairs to see whether the water pressure slows or stops in any sink. This could indicate a problem with the system.
In older homes, consider a separate sewage inspection. Stan Collini, the
President of Roto-Rooter Plumbing and Drain Service in the GTA, tells me that for $295, you can do a video camera of a property’s sewer system to see if there are any problems that would not be visible on a typical home inspection.
Check under the water heater for leaks or stains on the floor.
Ask how old the air conditioning unit is and when was it last serviced Is there sufficient hot or cold air reaching all of the rooms in the house?
Does the owner have a plan with their gas company to inspect the furnace once a year? When was the last inspection conducted?]
If the house has an addition, ask whether any upgrade was done to the heating or cooling systems to account for the additional living area.
Look for water stains in the ceiling which could indicate leaking from the roof or other problems with the plumbing system.
When your inspector is on the roof, ask them to check for broken or cracked shingles. If it is a flat roof, look for the low spots where water can collect for any evidence of a problem. Check the eaves to see if there is any rot or decay. If any concerns are noted, consider bringing in a roofing contractor for an additional opinion, especially if the home is 15-20 years old and it is still the original roof.
You may also want to consider a separate inspection for mould or termites, as these may not be visible on a home inspection but can result in significant costs to repair later. Check if this is a known problem in the area.
Always ask the seller and the seller’s agent if they know about any hidden defects that are not visible. They must answer truthfully if you ask them.
Consider looking into after-sale warranty protection. Many of these products on the market will generally cover problems with a home electrical, plumbing,heating and cooling system, as well as the major appliances. But like any warranty, ask about deductibles and what is excluded from coverage.
By being properly prepared and asking the right questions both before and during any home inspection, you will be better protected against costly
surprises after closing.
Mark Weisleder
I continue to receive complaints from readers about problems that they
discover after closing their home purchase. Most complain about sellers who
fail to disclose defects or home inspectors who fail to find them. The system is far from perfect. However, there are steps that buyers can take before and during a home inspection to protect their interests.
Check all electrical outlets to make sure that they work.
Open windows, even in the winter, to make sure they are not stuck or painted shut.
Look under any area rug or bed and behind any picture to check for cracked
tiles, stained carpets or walls. Lift anything on the kitchen counters to look for defects.
Do any of the appliances show any rust? How old are they? If they are
discontinued models, you will likely have to replace them if they break down because of the difficulty of finding replacement parts.
Start the dishwasher at the beginning of any home inspection.
By the end, it should have gone through its entire cycle, without leaking.
Put a thermometer inside the oven and turn it on to 350 degrees. After 10
minutes, check the temperature. Test stove burners.
Put a cup of water in the microwave for 45 seconds. Does it heat up?
Flush every toilet and see whether it stops running after it is filled.
Check sinks, tubs and showers in the house. Is there proper water flow from
each faucet and does everything drain properly?
You may want to consider turning all the faucets on at the same time and then flushing a toilet upstairs to see whether the water pressure slows or stops in any sink. This could indicate a problem with the system.
In older homes, consider a separate sewage inspection. Stan Collini, the
President of Roto-Rooter Plumbing and Drain Service in the GTA, tells me that for $295, you can do a video camera of a property’s sewer system to see if there are any problems that would not be visible on a typical home inspection.
Check under the water heater for leaks or stains on the floor.
Ask how old the air conditioning unit is and when was it last serviced Is there sufficient hot or cold air reaching all of the rooms in the house?
Does the owner have a plan with their gas company to inspect the furnace once a year? When was the last inspection conducted?]
If the house has an addition, ask whether any upgrade was done to the heating or cooling systems to account for the additional living area.
Look for water stains in the ceiling which could indicate leaking from the roof or other problems with the plumbing system.
When your inspector is on the roof, ask them to check for broken or cracked shingles. If it is a flat roof, look for the low spots where water can collect for any evidence of a problem. Check the eaves to see if there is any rot or decay. If any concerns are noted, consider bringing in a roofing contractor for an additional opinion, especially if the home is 15-20 years old and it is still the original roof.
You may also want to consider a separate inspection for mould or termites, as these may not be visible on a home inspection but can result in significant costs to repair later. Check if this is a known problem in the area.
Always ask the seller and the seller’s agent if they know about any hidden defects that are not visible. They must answer truthfully if you ask them.
Consider looking into after-sale warranty protection. Many of these products on the market will generally cover problems with a home electrical, plumbing,heating and cooling system, as well as the major appliances. But like any warranty, ask about deductibles and what is excluded from coverage.
By being properly prepared and asking the right questions both before and during any home inspection, you will be better protected against costly
surprises after closing.
Monday, September 12, 2011
Toronto GTA REALTORS® REPORT AUGUST RESALE MARKET FIGURES
Greater Toronto REALTORS® reported 7,542 sales through the TorontoMLS® system in August – a 24 per cent increase over 6,083 sales in August 2010. New listings, at 12,509, were up by 20 per cent compared to August 2010. Market conditions remained tight as sales growth outstripped growth in new listings.
Sunday, September 4, 2011
For sale: 91 Medland Cres, High Park,Toronto, M6P2N3 ~Open House Sunday Sept 4, 1-4pm
http://t.co/R7xaG8E
http://t.co/R7xaG8E
Saturday, September 3, 2011
Wednesday, May 4, 2011
Toronto Real Estate Downtown Report - April/May Market Report 2011
SALES COMMENTARY:
March continued the upward trend in sales, as 9200 units were sold on TREB. This number was 11% lower than March of 2010 which was a record. In April we are expecting about 9600 sales which will again be lower than last year’s record number. In spite of what the media reports, this market is very strong – what separates it from last year are really two factors: first the poor weather in comparison to last year’s spring; and secondly, a lack of listing inventory – new listings in March were 19% lower than in March a year ago. When the weather improves and listings increase, we expect to see 2011 sales on a monthly basis move ahead of 2010 perhaps by May or June at the latest. No one is forecasting that except us!
The downtown condo market presents a different market. Here condo sales in March were 6% higher than March of 2010. This trend will continue for the balance of the year. The reason of course is that so many new condo projects are being registered and are entering the resale market. The question being asked is can the market absorb this many new units? The answer is yes!! The sale-to-listing ratio downtown for condos was 48% this March versus 55% last March – not much of a difference when you factor in all the new condos entering the resale market.
This month, we tracked sales at a newly registered condo – the Vibe at 100 Western Battery in Liberty Village. It was built by Monarch and was just registered at the end of 2010. The first unit we tracked was a two-bedroom/2 bath unit with parking sold by the Developer in 2009 for $390,000. The identical unit, at 838 sf, sold in January and February of this year for $424,000 and $425,000. By March the unit sold for $433,000 or $515 per sf. A smaller unit at 611 sf – a one-bedroom with parking sold at the end of 2010 for $305,000 (probably as an assignment). Two identical units sold in February this year for $322,000 and $324,000 or $530 per sf. The point to be made for buyers is that assignments are cheaper and once the building is registered prices usually go up by $20,000.
RENTAL COMMENTARY:
As predicted, rental rates are moving up and there is a significant shortage of available units, even with record rental volumes. There were 22 studios, 383 one-bedroom units and 223 two-bedroom units leased in March. The number of rentals is an indication that the majority of investors in the pre-construction market have decided to rent rather than sell their units at registration! Studios leased at an average rate of $1325. One-bedroom units without parking averaged $1550. Add a den plus parking and you can pay $1725! Renters are now looking to convert a den into a second bedroom. The market for two-bedroom units is also in high demand and units start at $1950 and go to $2400 for a den and parking. There are no three bedroom units in the market place – developers don’t build them! Only five units were leased last month at an average price of $3500. How tight is this market? The average one bedroom stays on the market 6-10 days and many attract multiple offers.
March continued the upward trend in sales, as 9200 units were sold on TREB. This number was 11% lower than March of 2010 which was a record. In April we are expecting about 9600 sales which will again be lower than last year’s record number. In spite of what the media reports, this market is very strong – what separates it from last year are really two factors: first the poor weather in comparison to last year’s spring; and secondly, a lack of listing inventory – new listings in March were 19% lower than in March a year ago. When the weather improves and listings increase, we expect to see 2011 sales on a monthly basis move ahead of 2010 perhaps by May or June at the latest. No one is forecasting that except us!
The downtown condo market presents a different market. Here condo sales in March were 6% higher than March of 2010. This trend will continue for the balance of the year. The reason of course is that so many new condo projects are being registered and are entering the resale market. The question being asked is can the market absorb this many new units? The answer is yes!! The sale-to-listing ratio downtown for condos was 48% this March versus 55% last March – not much of a difference when you factor in all the new condos entering the resale market.
This month, we tracked sales at a newly registered condo – the Vibe at 100 Western Battery in Liberty Village. It was built by Monarch and was just registered at the end of 2010. The first unit we tracked was a two-bedroom/2 bath unit with parking sold by the Developer in 2009 for $390,000. The identical unit, at 838 sf, sold in January and February of this year for $424,000 and $425,000. By March the unit sold for $433,000 or $515 per sf. A smaller unit at 611 sf – a one-bedroom with parking sold at the end of 2010 for $305,000 (probably as an assignment). Two identical units sold in February this year for $322,000 and $324,000 or $530 per sf. The point to be made for buyers is that assignments are cheaper and once the building is registered prices usually go up by $20,000.
RENTAL COMMENTARY:
As predicted, rental rates are moving up and there is a significant shortage of available units, even with record rental volumes. There were 22 studios, 383 one-bedroom units and 223 two-bedroom units leased in March. The number of rentals is an indication that the majority of investors in the pre-construction market have decided to rent rather than sell their units at registration! Studios leased at an average rate of $1325. One-bedroom units without parking averaged $1550. Add a den plus parking and you can pay $1725! Renters are now looking to convert a den into a second bedroom. The market for two-bedroom units is also in high demand and units start at $1950 and go to $2400 for a den and parking. There are no three bedroom units in the market place – developers don’t build them! Only five units were leased last month at an average price of $3500. How tight is this market? The average one bedroom stays on the market 6-10 days and many attract multiple offers.
Sunday, March 27, 2011
Toronto's Front Yard Parking Issues & License's 2011
Toronto Real Estate : Parking red tape should be streamlined
Bill Johnston - President of the Toronto real Estate Board
If you are a regular reader, you will remember I recently wrote about the City of Toronto’s decision to clarify its rules to ensure that residents could continue to park their cars on their driveways. As I mentioned then, adequate parking, or the lack of it, can be a deal maker or a deal breaker in a real estate transaction. So, I want to spend some more time on this issue. However, this time my focus is on the city’s rules for front-yard and/or boulevard parking.
For most Toronto residents, parking their vehicles is straightforward: they park them in their driveway, garage, or both. However, many residents don’t have either of those options and rely on parking spots added by altering the landscaping of their front yards and the boulevard portion of their property. Homeowners are required to obtain a permit from the city for such parking spots.
The city’s process to obtain a permit is not simple. It creates significant red tape for homeowners and requires the payment of various permit fees. Nevertheless, although that is an important consideration, my main focus with this issue is how the city handles front yard parking spots that have already been approved when a property is sold.
While city rules do allow the licence for an existing front-yard parking spot to be transferred to a new home owner, they also require that the new owner complete an application and pay a fee of $115.10 to have the licence transferred. According to city staff, it may also be necessary to have the parking spot inspected before the licence can be transferred.
Nobody appreciates surprises during the home-buying process, which is why I’m zeroing in on this aspect of this issue. Realtors believe that any government rules that add red tape to the home-buying process should be streamlined to help ensure smooth and efficient transactions. With regard to Toronto’s front yard licence transfer process, where a parking spot has been approved and conforms to the terms of the approval, the licence transfer should be quick, certain, and costs, if any, should be minimal.
Realtors make it a priority to work with all levels of government to reduce the red tape. In this regard, we plan to communicate our concerns about Toronto’s front-yard parking rules to the city, and I look forward to updating you on this.
For more information, go to www.Petertarshis Twitter @PeterTarshis, on Facebook Peter Tarshis Toronto Realtor .
Bill Johnston - President of the Toronto real Estate Board
If you are a regular reader, you will remember I recently wrote about the City of Toronto’s decision to clarify its rules to ensure that residents could continue to park their cars on their driveways. As I mentioned then, adequate parking, or the lack of it, can be a deal maker or a deal breaker in a real estate transaction. So, I want to spend some more time on this issue. However, this time my focus is on the city’s rules for front-yard and/or boulevard parking.
For most Toronto residents, parking their vehicles is straightforward: they park them in their driveway, garage, or both. However, many residents don’t have either of those options and rely on parking spots added by altering the landscaping of their front yards and the boulevard portion of their property. Homeowners are required to obtain a permit from the city for such parking spots.
The city’s process to obtain a permit is not simple. It creates significant red tape for homeowners and requires the payment of various permit fees. Nevertheless, although that is an important consideration, my main focus with this issue is how the city handles front yard parking spots that have already been approved when a property is sold.
While city rules do allow the licence for an existing front-yard parking spot to be transferred to a new home owner, they also require that the new owner complete an application and pay a fee of $115.10 to have the licence transferred. According to city staff, it may also be necessary to have the parking spot inspected before the licence can be transferred.
Nobody appreciates surprises during the home-buying process, which is why I’m zeroing in on this aspect of this issue. Realtors believe that any government rules that add red tape to the home-buying process should be streamlined to help ensure smooth and efficient transactions. With regard to Toronto’s front yard licence transfer process, where a parking spot has been approved and conforms to the terms of the approval, the licence transfer should be quick, certain, and costs, if any, should be minimal.
Realtors make it a priority to work with all levels of government to reduce the red tape. In this regard, we plan to communicate our concerns about Toronto’s front-yard parking rules to the city, and I look forward to updating you on this.
For more information, go to www.Petertarshis Twitter @PeterTarshis, on Facebook Peter Tarshis Toronto Realtor .
Wednesday, March 23, 2011
Condo-mania in the Toronto Real Estate Market - 2011
Condo sales in Toronto reached an all-time high for the month of February this year, shattering the previous record by a margin of 26 per cent.
Typically known for being a slow month for real estate, an impressive 2,202 new condos were sold around the GTA. This is the first time sales in February have exceeded the 2,000... mark.
The Building Industry and Land Development Association said the number of condos sold, marked a 36 per cent, increase from last year.
The previous record was set back in 2002, long before the infamous housing bust of 2008.
February numbers showed the second lowest number of low-rise homes sold in history, partly due to a price increase thanks to a shortage of available housing.
Typically known for being a slow month for real estate, an impressive 2,202 new condos were sold around the GTA. This is the first time sales in February have exceeded the 2,000... mark.
The Building Industry and Land Development Association said the number of condos sold, marked a 36 per cent, increase from last year.
The previous record was set back in 2002, long before the infamous housing bust of 2008.
February numbers showed the second lowest number of low-rise homes sold in history, partly due to a price increase thanks to a shortage of available housing.
Thursday, March 10, 2011
Finding a Condo Investment Unit (Part 1)
If you’re an investor looking for a condo unit, you’ve probably noticed a breadth of (sometimes confusing) options offered, in just about every corner of the city. These days, it seems that no matter where you turn, condos are aplenty!
The Mercer, X Condos, Majestic Court, Waterclub, Emerald Park, Harbour Square, Eve, Uptown Markham, Ventus at Metrogate are just a few of the new condo's available in Toronto. Look around downtown - east - west - all you see are cranes !
With so many different choices – from buildings that are older, newer and soon-to-come, to high-rises, low-rises and everything in between – it begs the question: where does one begin in the painstaking quest to find an investment unit that best suits their needs?
Like anything else, there are many different schools of thought on this matter and if you speak to 100 different people, you’re likely to hear just as many different opinions.
We’ve spoken with a handful of seasoned investors and trusted real estate professionals, and while opinions differed amongst them, we’ve done our best to highlight their most critical ideas.
If there’s one thing that’s clear, it’s that there is no “right” answer to the great investment debate. Every investor is different, and as such, you’ll have to do your homework and figure out what works best for your personal circumstances and style.
While there are many factors to think about, for most, the major considerations will be investment type and budget, followed by location, size, and other issues.
This post is part of three-part series in which we’ll touch upon all of these issues. Today we begin with the first, and arguably the most important, two: investment type and budget.
Investment Type (Age)
There are several categories of investments that you can consider. These are:
Pre-construction / blueprint;
New condo (pre-registration);
Completed condo.
Pre-construction condos
A popular choice to-date has been purchasing a condo pre-construction or blueprint. History suggests that this is typically where you’ll find the best pricing, often purchased through a realtor with access to the sales centre (e.g. VIP sales event) prior to its public opening.
The advantages to buying pre-construction includes not only the lowest prices, but also the widest selection of suites, the opportunity to purchase something never-before-lived in and a longer period of time to save up your down payment (over the course of the builder’s deposit schedule).
Having said that, pre-construction units are not for everyone. There’s an element of risk involved with buying blueprint (e.g. project cancellation or changes). And depending on your outlook on the condo market, there may be more hesitation to commit at today's pricing than in years prior. For inexperienced buyers, the prospect of purchasing from a blueprint, without a physical space to see, touch and feel, can also be challenging.
Hints & Tips: Look for a condo expert with early access to projects to take advantage of the often lower pricing and wider selection of suites.
New condos (pre-registration)
This option refers to condos purchased from the time construction has begun up until the building has been registered (when title is transferred from the developer to each of the individual owners). Prices are typically higher during this period than in the pre-construction phase, and generally see a steady increase until registration.
The advantages and disadvantages to buying a new condo (pre-registration) are similar to those for pre-construction; although there’s often a narrower selection of available suites and higher price per square foot.
Other than buying from the builder, pre-registration units can sometimes be purchased from other buyers by way of assignment. Some of the experts we spoke with observed that once a building is near completion (or is under occupancy, not yet registered), there’s often a premium when purchasing through the builder when compared with buying units within the same building on assignment. However, assignment purchases have their own set of benefits and risks and should be discussed with an experienced professional.
Hints & Tips: When negotiating prices via assignment, remember that the seller will be saving on closing costs (such as land transfer tax).
Completed condos
Then, there’s the option to purchase a condo that’s already completed. Completed condos range widely in age, with some buildings in the GTA dating back to 1970s.
Within this category, there are also several options. You may decide to purchase an investment unit that’s already tenanted. The advantage of this is a turnkey operation; however, the risk involved in assuming an existing tenant is that you also assume any existing issues (e.g. late payments, etc.) that may be associated with that particular individual.
If you’re a little more hands-on, another option is to purchase a vacant unit. If the condo is in need of repair or update, this would give you an opportunity to complete any necessary renovations in order to make the unit more rentable. For investors who prefer to find and qualify tenants on their own, this could be an ideal scenario; however, there will of course be a period of vacancy that you’re willing to accept while renovating and/or searching for that perfect tenant.
The benefits to purchasing a completed condo include the ability to see the physical space that you’re buying into and garner some insight into how well the building is being maintained. If the building is a little older, you’ll also gain a better sense of how much the maintenance fees have been. It’s pretty much “what-you-see-is-what-you-get”. Our experts have suggested that the average price per square foot on completed units tends to be lower when compared with new projects within the same neighbourhood, so there may also be a price advantage associated with completed condos. In addition, buying a completed condo also allows you to receive some monthly cash flow from the investment almost immediately.
On the other hand, having to cough up the full down payment for your condo within a short span of time (typical resale closings occur within 30-90 days from the date of purchase) can be daunting for many investors. Maintenance fees in older buildings can also be higher given natural wear-and-tear, and you’ll want to be wary of any potential issues pending for the condo such as major repairs, structural issues and lawsuits that can heavily impact your carrying costs. Finally, if the completed condo isn’t new but located in an area where there are many new buildings cropping up, it may be more difficult to rent as many tenants prefer a never-before-lived-in space where available.
Hints & Tips: Maintenance fees not only contribute to your monthly carrying costs, but will also have an impact on the future resale value of your property. To minimize any unpleasant surprises, ask your lawyer to review the condo’s status certificate which will paint a formal picture of the of the condo corporation’s current financial and structural health.
Still trying to decide? While there’s a definite premium on rent rates for newly constructed condo units, some of our experts have suggested that in today’s market, such a premium doesn’t necessarily balance out the premiums paid on price. This likely varies within each local market, so it’s definitely worth comparing the numbers to see for yourself what makes the most sense. Whether you decide to purchase new or old will depend on your investment and management style (of the property and tenants), personal preferences and of course, budget.
Budget
Needless to say, your decision to purchase an investment unit will be defined and limited by your available budget. In addition to looking at the monthly cash flow impact of any condo investment, you should also consider:
Financing pre-approval
All of the experts we spoke with were unanimous in their opinions that any condo investor should obtain a mortgage pre-approval prior to beginning their search in order to know with certainty what they can afford. Contrary to popular belief, the mortgage pre-approval is a typical requirement even when purchasing a unit directly from the developer, so this recommendation applies regardless of whether you decide to head down the pre-construction, new build or completed condo route.
Mortgage rules
To begin, it’s important to keep in mind the recent mortgage rule changes which will directly impact your decision to purchase an investment property. As of April 2010, non-owner-occupied units purchased for speculation in Canada require a minimum 20% down payment in order to qualify for a mortgage. And on March 18, 2011, a few more changes will come into effect. For further information on the upcoming mortgage rule changes, please click here.
Hints & Tips: Getting a mortgage pre-approval as suggested above will help you narrow down the impact of these changes.
While important, remember that the two factors discussed here – investment type and budget – are only part of the equation in determining which condo investment property is right for you. Tune in tomorrow for Part 2 of this series in which we’ll discuss some other important factors – location and size – to consider in purchasing a condo investment property.
The Mercer, X Condos, Majestic Court, Waterclub, Emerald Park, Harbour Square, Eve, Uptown Markham, Ventus at Metrogate are just a few of the new condo's available in Toronto. Look around downtown - east - west - all you see are cranes !
With so many different choices – from buildings that are older, newer and soon-to-come, to high-rises, low-rises and everything in between – it begs the question: where does one begin in the painstaking quest to find an investment unit that best suits their needs?
Like anything else, there are many different schools of thought on this matter and if you speak to 100 different people, you’re likely to hear just as many different opinions.
We’ve spoken with a handful of seasoned investors and trusted real estate professionals, and while opinions differed amongst them, we’ve done our best to highlight their most critical ideas.
If there’s one thing that’s clear, it’s that there is no “right” answer to the great investment debate. Every investor is different, and as such, you’ll have to do your homework and figure out what works best for your personal circumstances and style.
While there are many factors to think about, for most, the major considerations will be investment type and budget, followed by location, size, and other issues.
This post is part of three-part series in which we’ll touch upon all of these issues. Today we begin with the first, and arguably the most important, two: investment type and budget.
Investment Type (Age)
There are several categories of investments that you can consider. These are:
Pre-construction / blueprint;
New condo (pre-registration);
Completed condo.
Pre-construction condos
A popular choice to-date has been purchasing a condo pre-construction or blueprint. History suggests that this is typically where you’ll find the best pricing, often purchased through a realtor with access to the sales centre (e.g. VIP sales event) prior to its public opening.
The advantages to buying pre-construction includes not only the lowest prices, but also the widest selection of suites, the opportunity to purchase something never-before-lived in and a longer period of time to save up your down payment (over the course of the builder’s deposit schedule).
Having said that, pre-construction units are not for everyone. There’s an element of risk involved with buying blueprint (e.g. project cancellation or changes). And depending on your outlook on the condo market, there may be more hesitation to commit at today's pricing than in years prior. For inexperienced buyers, the prospect of purchasing from a blueprint, without a physical space to see, touch and feel, can also be challenging.
Hints & Tips: Look for a condo expert with early access to projects to take advantage of the often lower pricing and wider selection of suites.
New condos (pre-registration)
This option refers to condos purchased from the time construction has begun up until the building has been registered (when title is transferred from the developer to each of the individual owners). Prices are typically higher during this period than in the pre-construction phase, and generally see a steady increase until registration.
The advantages and disadvantages to buying a new condo (pre-registration) are similar to those for pre-construction; although there’s often a narrower selection of available suites and higher price per square foot.
Other than buying from the builder, pre-registration units can sometimes be purchased from other buyers by way of assignment. Some of the experts we spoke with observed that once a building is near completion (or is under occupancy, not yet registered), there’s often a premium when purchasing through the builder when compared with buying units within the same building on assignment. However, assignment purchases have their own set of benefits and risks and should be discussed with an experienced professional.
Hints & Tips: When negotiating prices via assignment, remember that the seller will be saving on closing costs (such as land transfer tax).
Completed condos
Then, there’s the option to purchase a condo that’s already completed. Completed condos range widely in age, with some buildings in the GTA dating back to 1970s.
Within this category, there are also several options. You may decide to purchase an investment unit that’s already tenanted. The advantage of this is a turnkey operation; however, the risk involved in assuming an existing tenant is that you also assume any existing issues (e.g. late payments, etc.) that may be associated with that particular individual.
If you’re a little more hands-on, another option is to purchase a vacant unit. If the condo is in need of repair or update, this would give you an opportunity to complete any necessary renovations in order to make the unit more rentable. For investors who prefer to find and qualify tenants on their own, this could be an ideal scenario; however, there will of course be a period of vacancy that you’re willing to accept while renovating and/or searching for that perfect tenant.
The benefits to purchasing a completed condo include the ability to see the physical space that you’re buying into and garner some insight into how well the building is being maintained. If the building is a little older, you’ll also gain a better sense of how much the maintenance fees have been. It’s pretty much “what-you-see-is-what-you-get”. Our experts have suggested that the average price per square foot on completed units tends to be lower when compared with new projects within the same neighbourhood, so there may also be a price advantage associated with completed condos. In addition, buying a completed condo also allows you to receive some monthly cash flow from the investment almost immediately.
On the other hand, having to cough up the full down payment for your condo within a short span of time (typical resale closings occur within 30-90 days from the date of purchase) can be daunting for many investors. Maintenance fees in older buildings can also be higher given natural wear-and-tear, and you’ll want to be wary of any potential issues pending for the condo such as major repairs, structural issues and lawsuits that can heavily impact your carrying costs. Finally, if the completed condo isn’t new but located in an area where there are many new buildings cropping up, it may be more difficult to rent as many tenants prefer a never-before-lived-in space where available.
Hints & Tips: Maintenance fees not only contribute to your monthly carrying costs, but will also have an impact on the future resale value of your property. To minimize any unpleasant surprises, ask your lawyer to review the condo’s status certificate which will paint a formal picture of the of the condo corporation’s current financial and structural health.
Still trying to decide? While there’s a definite premium on rent rates for newly constructed condo units, some of our experts have suggested that in today’s market, such a premium doesn’t necessarily balance out the premiums paid on price. This likely varies within each local market, so it’s definitely worth comparing the numbers to see for yourself what makes the most sense. Whether you decide to purchase new or old will depend on your investment and management style (of the property and tenants), personal preferences and of course, budget.
Budget
Needless to say, your decision to purchase an investment unit will be defined and limited by your available budget. In addition to looking at the monthly cash flow impact of any condo investment, you should also consider:
Financing pre-approval
All of the experts we spoke with were unanimous in their opinions that any condo investor should obtain a mortgage pre-approval prior to beginning their search in order to know with certainty what they can afford. Contrary to popular belief, the mortgage pre-approval is a typical requirement even when purchasing a unit directly from the developer, so this recommendation applies regardless of whether you decide to head down the pre-construction, new build or completed condo route.
Mortgage rules
To begin, it’s important to keep in mind the recent mortgage rule changes which will directly impact your decision to purchase an investment property. As of April 2010, non-owner-occupied units purchased for speculation in Canada require a minimum 20% down payment in order to qualify for a mortgage. And on March 18, 2011, a few more changes will come into effect. For further information on the upcoming mortgage rule changes, please click here.
Hints & Tips: Getting a mortgage pre-approval as suggested above will help you narrow down the impact of these changes.
While important, remember that the two factors discussed here – investment type and budget – are only part of the equation in determining which condo investment property is right for you. Tune in tomorrow for Part 2 of this series in which we’ll discuss some other important factors – location and size – to consider in purchasing a condo investment property.
Wednesday, March 9, 2011
FOR PEOPLE GETTING INTO THE TORONTO INCOME PROPERTY MARKET:
If you are a first time buyer of a duplex, triplex or multi-unit apartment building in the GTA here are a few steps that you ought to follow to ensure your chances for success:
i. Define Your Investment Goals
Each time you review a listing or visit a property you should ask yourself would this property meet my fiscal objectives? Some of the specific factors that you should consider are: suitability of neighbourhood for renters, the current vacancy rate, economic conditions and your own propensity to stick it out with the property long-term.
ii. Identify Your Needs & Desires
Determine what you'd like to have versus what you must have. These include obvious items like location, type of investment property and whether you have a penchant for doing renovations if necessary.
iii. Know Your Financial Readiness
The financial questions that you have to ask yourself before you get started include:
How much money can you afford to put towards a deposit on your income property?
How much of a debt obligation you are prepared to undertake? What is the maximum that you will be able to borrow?
What is your net monthly payment comfort level? Set a maximum dollar amount and do not exceed this threshold when searching for properties
iv. Establish a Relationship with a Lender
This is very important because there a myriad of financial products on the market today. The mortgage business has become one of Canada's fastest growing segments. You can get no money down options, 40 year amortizations and there are specific programs for self-employed people that don't show a lot income on their tax returns. I often say that how we finance a purchase is just as important as how much we pay for the property.
v. Develop a Purchase Strategy
There are many ways to proceed here. I obviously recommend using a realtor like myself for getting into income properties. My knowledge comes from countless hours in the field looking at rental properties, which I think is the best way to truly gain a proper understanding of the market. Once you have found a qualified agent to assist you, then it is important to develop a strong plan of attack. Start by having your agent search your local real estate board's listings as often as possible. There are many different ways in which income properties are listed on the Multiple Listing Service (MLS) so ensure that your agent is are being thorough in conducting searches. Look for listings with multiple kitchens and bathrooms and always check both residential and commercial listings. Challenge your agent to determine an innovative campaign to find you the right income property. If you don't find what you are looking for you may ask them to call income property owners of certain target buildings in your area - you never know when an owner may be thinking of selling. In addition, you may want to place classified ads outlining your specific investment criteria.
FOR LANDLORDS:
Once you have purchased a property and have gotten it all rented out, here a few pointers that may help your continued success with your venture.
i. State of the premises:
This may sound obvious, but under no circumstances should you let your property fall into a state of disrepair. If your tenants are paying each month, on time, then you have an obligation to keep everything in good working order. If something breaks down, fix it. Also, please try and keep up on maintenance items. Make sure the snow gets shoveled, the eaves get cleaned, the grass gets cut, etc. A tidy property is better all around for both you and your tenants.
ii. Rent Increases & the Residential Tenancies Act
You are allowed to raise your tenants rent only 0.7% for the year 2011. Keep up on your allowable limit and try and stay familiar with you rights and obligations under the tenancies Act. If are unfamiliar with this, please take a look at:
http://www.ontariotenants.ca/law/act.phtml
iii. Fire Issues
As a landlord you are obligated to ensure that your rental property meets fire code guidelines. The best way to ensure that your building is compliant is to hire a retrofit consultant who will give you a laundry list of all the things that need to be done.
I recommend Paul Schuster at www.pcfirecode.com.
iv. Eliminating Expenses
Sometimes you are limited on how much rent you can get away with, so the best way to improve your profitability is to cut on expenses. Things like separate hydro meters help but ensuring that your building isn't wasting energy can go a long way to saving you money in the long term.
--
"HELPING YOU IS WHAT I DO"
I Believe in building relationships.
I am here to meet your needs
- to Serve & Protect - Your Investment.
As a Real Estate Consultant I am dedicated to the Real Estate Investor & Home Owner
- who is willing to work for one of the most precious things in the World
- Freedom.
Peter Tarshis
Royal LePage Real Estate
55 St. Clair Ave. West
Toronto, M4V 2Y7
416.921.1112 x 574 office/pager
416.921.7424 fax
1.800.622.9536 toll-free
416.705.1181 cell/text
See Peter on:
www.PeterTarshis.com
http://petertarshistorontorealtor.blogspot.com/
http://twitter.com/PeterTarshis
www.rlptv.com
www.Linkedin.com
www.torontorealestateboard.com
http://activerain.com/blogs/petertarshistorontorealtor
A referral is a big responsibility...it is also the biggest compliment a client can give me and is never to be taken lightly. I pledge to treat everyone that is referred to me with the utmost level of respect and professionalism.
Thank You for Your Trust.
.
i. Define Your Investment Goals
Each time you review a listing or visit a property you should ask yourself would this property meet my fiscal objectives? Some of the specific factors that you should consider are: suitability of neighbourhood for renters, the current vacancy rate, economic conditions and your own propensity to stick it out with the property long-term.
ii. Identify Your Needs & Desires
Determine what you'd like to have versus what you must have. These include obvious items like location, type of investment property and whether you have a penchant for doing renovations if necessary.
iii. Know Your Financial Readiness
The financial questions that you have to ask yourself before you get started include:
How much money can you afford to put towards a deposit on your income property?
How much of a debt obligation you are prepared to undertake? What is the maximum that you will be able to borrow?
What is your net monthly payment comfort level? Set a maximum dollar amount and do not exceed this threshold when searching for properties
iv. Establish a Relationship with a Lender
This is very important because there a myriad of financial products on the market today. The mortgage business has become one of Canada's fastest growing segments. You can get no money down options, 40 year amortizations and there are specific programs for self-employed people that don't show a lot income on their tax returns. I often say that how we finance a purchase is just as important as how much we pay for the property.
v. Develop a Purchase Strategy
There are many ways to proceed here. I obviously recommend using a realtor like myself for getting into income properties. My knowledge comes from countless hours in the field looking at rental properties, which I think is the best way to truly gain a proper understanding of the market. Once you have found a qualified agent to assist you, then it is important to develop a strong plan of attack. Start by having your agent search your local real estate board's listings as often as possible. There are many different ways in which income properties are listed on the Multiple Listing Service (MLS) so ensure that your agent is are being thorough in conducting searches. Look for listings with multiple kitchens and bathrooms and always check both residential and commercial listings. Challenge your agent to determine an innovative campaign to find you the right income property. If you don't find what you are looking for you may ask them to call income property owners of certain target buildings in your area - you never know when an owner may be thinking of selling. In addition, you may want to place classified ads outlining your specific investment criteria.
FOR LANDLORDS:
Once you have purchased a property and have gotten it all rented out, here a few pointers that may help your continued success with your venture.
i. State of the premises:
This may sound obvious, but under no circumstances should you let your property fall into a state of disrepair. If your tenants are paying each month, on time, then you have an obligation to keep everything in good working order. If something breaks down, fix it. Also, please try and keep up on maintenance items. Make sure the snow gets shoveled, the eaves get cleaned, the grass gets cut, etc. A tidy property is better all around for both you and your tenants.
ii. Rent Increases & the Residential Tenancies Act
You are allowed to raise your tenants rent only 0.7% for the year 2011. Keep up on your allowable limit and try and stay familiar with you rights and obligations under the tenancies Act. If are unfamiliar with this, please take a look at:
http://www.ontariotenants.ca/law/act.phtml
iii. Fire Issues
As a landlord you are obligated to ensure that your rental property meets fire code guidelines. The best way to ensure that your building is compliant is to hire a retrofit consultant who will give you a laundry list of all the things that need to be done.
I recommend Paul Schuster at www.pcfirecode.com.
iv. Eliminating Expenses
Sometimes you are limited on how much rent you can get away with, so the best way to improve your profitability is to cut on expenses. Things like separate hydro meters help but ensuring that your building isn't wasting energy can go a long way to saving you money in the long term.
--
"HELPING YOU IS WHAT I DO"
I Believe in building relationships.
I am here to meet your needs
- to Serve & Protect - Your Investment.
As a Real Estate Consultant I am dedicated to the Real Estate Investor & Home Owner
- who is willing to work for one of the most precious things in the World
- Freedom.
Peter Tarshis
Royal LePage Real Estate
55 St. Clair Ave. West
Toronto, M4V 2Y7
416.921.1112 x 574 office/pager
416.921.7424 fax
1.800.622.9536 toll-free
416.705.1181 cell/text
See Peter on:
www.PeterTarshis.com
http://petertarshistorontorealtor.blogspot.com/
http://twitter.com/PeterTarshis
www.rlptv.com
www.Linkedin.com
www.torontorealestateboard.com
http://activerain.com/blogs/petertarshistorontorealtor
A referral is a big responsibility...it is also the biggest compliment a client can give me and is never to be taken lightly. I pledge to treat everyone that is referred to me with the utmost level of respect and professionalism.
Thank You for Your Trust.
.
Toronto REALTORS® reported 6,266 transactions through the TorontoMLS® system in February 2011
TORONTO, ONTARIO--(Marketwire - 03/03/11) - Greater Toronto REALTORS® reported 6,266 transactions through the TorontoMLS® system in February 2011. This result was 14 per cent lower than the record sales reported in February 2010.
While not representing a record, February 2011 sales were 50 per cent higher than the number reported in February 2009 during the recession and slightly higher than the average February sales over the previous ten years.
"Continued improvement in the GTA economy, including growth in jobs and incomes and a declining unemployment rate, has kept the demand for ownership housing strong," said Toronto Real Estate Board (TREB) President Bill Johnston.
The average selling price for February 2011 transactions was $454,423, which was more than five per cent higher than the average selling price reported in February 2010.
"Market conditions remain quite tight in the GTA. There is enough competition between home buyers to promote continued price growth," said Jason Mercer, TREB's Senior Manager of Market Analysis.
---------------------------------------------------------------------Source: Toronto Real Estate Board
Greater Toronto REALTORS® are passionate about their work. They adhere to a strict Code of Ethics and share a state-of-the-art Multiple Listing Service. Serving over 31,000 Members in the Greater Toronto Area, the Toronto Real Estate Board is Canada's largest real estate board. Greater Toronto Area open house listings are now available on www.TorontoRealEstateBoard.com.
Get the latest real estate news and Market Watch information including market watch summary video
www.twitter.com/TREB_Official
Thursday, February 3, 2011
Canada Toronto National Bank House Price Index™
The Teranet – National Bank House Price Index™ is an independent representation of the rate of change of Canadian single-family home prices. The measurements are based on the property records of public land registries. The monthly indices cover six Canadian metropolitan areas: Vancouver, Calgary, Toronto, Ottawa, Montréal and Halifax. The metropolitan areas are combined to form a national composite index.
In addition to their informational role, the Teranet – National Bank House Price Index™ was developed be a trustworthy benchmark for financial professionals. Teranet and National Bank of Canada offer licenses covering all index-linked products.
http://www.housepriceindex.ca/Default.aspx
Thursday, January 27, 2011
Buying Your New Home or Investment
Buying a home in Toronto is an exciting and complex adventure.
It can also be a very time-consuming and costly one if you or your agent is not familiar with all aspects of the process, and missing important information and resources. Our diverse landscape and dramatic varying styles of homes makes it important to have a complete understanding of the Toronto real estate market.
Over 90% of our business is from referral. From people who have experienced first hand, the benefits of working with seasoned professionals. One of our specialties is representing the best interests of Toronto real estate buyers throughout the home buying process. Our comprehensive, high-quality services can save you time and money, as well as make the experience more enjoyable and less stressful.
If you're like most people, buying a home is the biggest investment you will ever make. So whether you're buying a starter home, your dream home or an investment propert, take advantage of our experience as local marketing experts for Toronto real estate to make the most informed decisions you can, every step of the way.
Let's begin with an overview of the buying process:
Step 1: Initial ConsultationDuring our initial consultation, I'll gain a sense of your values, interests and priorities. It's of utmost importance that I understand exactly what your needs are so I can help you accomplish your goals. Together, we'll identify the features you are looking for in a home, and we'll work to narrow down the neighborhoods that best suit your lifestyle. I will also discuss the steps in the homebuying process and give you an update on the current real estate market.
Step 2: Obtaining FinancingIt's important to understand your financing options. Working with an experienced mortgage consultant, we will be able to determine the amount of financing you can obtain. There are various loan options, and we can discuss which option works best for your situation:
Fixed Rate Mortgage
Adjustable Rate Mortgage
Government-assisted financing (CMHC)
Seller-assisted financing
Financing will carry through the rest of the steps, culminating with the completion of escrow.
Step 3: Finding the Right HomeAs we begin to search for your dream home, we'll take into consideration your time frame and select homes that meet your needs, including your financial parameters. You can use my site to search all listings for Toronto & Ontario at your leisure. For even more powerful searching capabilities, I will set up a customized search for more property details, sold data, and automatic email alerts. Meanwhile, we'll begin visiting homes and critiquing them according to your objectives.
Step 4: Preparing an OfferOnce we find the right home and you've made your decision, we'll make an offer. As we prepare the offer, we will take into consideration your financial situation and determine an offer price. I will then submit your offer to the seller's agent.
Step 5: Reaching an Agreement with the SellerOnce we reach an agreement with the seller, you and I will work together to ensure that all the terms of the agreement are met.
Step 6: Protecting Your InterestsTo ensure a trouble-free home purchase, I will obtain a written property disclosure statement from the seller. I'll also recommend that you obtain a professional inspection of the home. You and I will determine if a home warranty that covers major home operating systems and appliances is necessary. A preliminary title report will be ordered as well. Then you and I will do one final walk-through before closing.
Step 7: Completing the Escrow ProcessThe escrow process can be a complicated one, so I'll explain all the steps to you and answer any questions you might have. I'll work with the seller's broker to make sure they fulfill their responsibilities under the purchase agreement. I'll also help escrow move forward by staying in touch with the escrow officer, title officer, lender and others. All the while, I'll communicate with you on a regular basis so there are no surprises.
It may seem a little intimidating, but don't worry; you'll be in good hands. I will help you every step of the way. So let's get started!
Tuesday, January 4, 2011
The Best of Winterlicious 2011: Toronto Life’s 62 favourite restaurants | De-licious | torontolife.com http://t.co/trZQzfz via @torontolife.com
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