Thursday, December 8, 2016

Why is AirBnB Bad?

Condos are fighting back against AirBnb

  • Wild parties
  • Never Ending Visitors
  • Over Use of Common Elements
  • Owner Apathy causes values to decrease   


Pick one!

Here's what Lash Condo Law had to say...
What do you think? 

With the growth in the “sharing economy”, many condominiums have been forced to turn their minds to the issue of short-term rentals.  While some investor owners are listing their units on short-term rental sites in order to maximize the revenue generated from their units, many resident owners do not welcome short-term rentals.From the perspective of resident owners, short-term rentals have negative ramifications:§ They detract from the sense of community that many residents desire
§ There are increased concerns about safety with so many strangers coming and going at all hours
§ There is increased wear and tear on the common elements
§ Inappropriate behavior by many short-term renters interferes with the quiet enjoyment of residents
§ The condominium is in effect an unlicensed, unregulated hotel.
Without any legislation that prohibits short-term rentals in condominiums, many condominium corporations are finding it quite challenging to put a stop to this type of activity in their building. However, there have been recent reports in the media about some condominium corporations that are winning the battle against short-term rentals.CBC News reported about a condominium where owners were able to successfully oust from the board, directors who favoured short-term rentals, even though the condominium documents prohibited rentals for a term less than a year. In this case, there were two short-term rental companies that leased units from investor owners and then in turn, advertised and rented the units on a short-term basis and had been doing so for five years.  It took two years for the resident owners to get control of the board so that the prohibition on short-term rentals in the condominium documents would be enforced.The Globe and Mail recently reported about a condominium concierge who was spending several hours a day scanning short-term rental websites looking for units being offered in his building.  He was also keeping a diligent lookout for strangers arriving with luggage and refusing to allow them entry into the building.While it may not be easy or quick to put a stop to short-term rentals, these two stories show that it can be done.Click here to access our Practical Guide to Short-Term Stays (Hoteling), which provides practical steps to condominium boards to effectively address this issue.


 What do you think? 

David Pylyp
http://Humberbayshore.com

Tuesday, April 12, 2016

One in 10 could be behind with their mortgage

The high level of debt carried by Home Owners in Toronto is exceeding their capacity to safe for their rainy day fund.   One singular event, a car accident or if one wage earner is laid off can have serious consequences.

We may qualify at the posted rates and take a mortgage at the variable rates; additional expenses make it harder to save for retirement or that annual vacation.

Who says so?   CD Howe Institute.  December of 2015

 The portion of mortgage indebted households with a primary mortgage debt-to-disposable income ratio in excess of 500 percent has climbed from 3 percent in 1999 to 11 percent in 2012.December 9, 2015 – The federal government should pay close attention to several pockets of risk in the Canadian housing market, according to a new C.D. Howe Institute report. In “Mortgaged to the Hilt: Risks From The Distribution of Household Mortgage Debt,” authors Craig Alexander and Paul Jacobson expose pockets of vulnerability by going beyond national averages and focusing on the distribution of house mortgage debt by income, age and region, all of which matter most when assessing risk.
“Household mortgage debt has risen dramatically and traditional economy-wide averages understate the degree of financial risk for those that carried mortgages because they typically divide the value of mortgages across the income of households with and without mortgages”, remarks Alexander.
Using the data from the Survey of Financial Security, the authors find that the ratio of the value of mortgages on primary dwellings have jumped from 144 percent of after-tax income in 1999 to 204 percent in 2012.  However, this also understates the degree of financial risk for a significant minority of households.
The author’s analysis suggests that a significant minority of Canadians having taken on a high degree of financial risk. The portion of mortgage indebted households with a primary mortgage debt-to-disposable income ratio in excess of 500 percent has climbed from 3 percent in 1999 to 11 percent in 2012. Their analysis of the distribution of mortgage debt is as follows:
  1. Income: The increase in highly mortgage-indebted households has been in all income groups, but more so in lower-income quintiles.
  1. Age: The increase in financial risk is also evident across all age groups, but more so for younger Canadians who have entered the market most recently.
  1. Region: As one might expect, there has been greater concentration of mortgage debt in the provinces with the strongest housing booms.
Additionally, the authors find that roughly 1-in-5 of mortgage indebted households have less than $5,000 in financial assets to draw upon in response to a loss of income or to higher debt service costs. 1-in-10 mortgage-indebted households have less than $1,500 in financial assets to address any shock. This represents an inadequate financial buffer, as average mortgage payments are more than $1,000 a month, before taxes and operating costs.
The federal government may want to consider further policy actions to lean against the shift towards significantly higher mortgage burdens. However, such policy measures should not be unduly heavy handed and should be targeted to address the distributional nature of the risks.
For example, potential targeted measures would be to tighten underwriting requirements by lifting required credit scores, capping total debt-service ratios at lower levels, lifting qualifying interest rates when doing income testing, or varying the minimum downpayment by the size of mortgage to target higher-priced markets. Such measures would build on the regulatory tightening already done to date without posing a material threat to Canadian real estate markets. https://www.cdhowe.org/sites/default/files/attachments/research_papers/mixed/Commentary_441_0.pdf    Click here for the full report

Getting the correct Mortgage Advice; living with your means and eliminating HIGH Interest rate credit card debt all count towards securing your long term comfort.  I recommend a debt check up with http://RenewyourMortgage.ca

Because the best mortgage is NO mortgage at all.

David Pylyp

TXT 647 218 2414 or Email

Friday, April 8, 2016

It's 2016 Why do Real Estate Agents Still Exist?

Being Online everything has UBERed many business's into extinction!

Amazon delivers in 24 hours!

The internet should be killing real estate agents!
National Association of Realtors, agents are as widely used as ever: 89 percent of buyers retained one in 2012, up from 69 percent in 2001. It's the same on the seller side, where only 9 percent sold a home without an agent, down from a high of 20 percent in 1987.
https://www.washingtonpost.com/news/wonk/wp/2013/08/22/why-do-real-estate-agents-still-exist/
Ontario has 42,000 registered agents 

So what's different?

Buyers are International.
Showings are via Virtual Technology with Matterport 3D Tours. Buyers can pre inspect from the comfort of their computers. This reduces stress for you in showings. 

Financing is more complicated
Buyers over bidding on properties may not get funded because of appraisal or other legal issues. Some buildings / complexes has huge supply of condos available. Size does matter.

Home Sellers Insurance
Coverage is available to protect you from unforeseen expenses 

I know people and Have VETTED THEM
Whether they are the painters, landscapers, electricians, flooring contractors, appraisers, home inspectors, bankers, mortgage brokers or lenders; at some point I have used them and found them better than gambling on Craigslist for short notice services required.

Home Verified Reports
Used by Insurance Companies they provide a HISTORY of claims for flood etc.

Real Estate is a local 
I can display for you homes that have sold in proximity to the neighbourhood you want; design a canvass plan just for your search and Flyer / door knock the streets that you would like to live. VIMO applications for reports. 

Using Social Media and my personal network of professional realtors we can reach out to those that are active in local communities and search out pocket listings and coming soon.

http://www.Facebook.com/dpylyp
http://www.Twitter.com/davidpylyp
http://www.SellinginToronto.ca
https://plus.google.com/u/0/+DavidPylyp

https://plus.google.com/u/0/+DavidPylypToronto/posts
Matterport Tours are available at http://DigitalImagingToronto.com

How you receive the information has changed. 
My function has not.

I look forward to your enquiries.  Call or email today to get started

David Pylyp
647 218 2414