Wednesday, December 28, 2016

INSIGHTS to the condo market - Toronto 2017

Urbanation recently polled Builders to ascertain the level of FOREIGN OWNERSHIP in the Toronto Condominium Market

The results of a survey conducted by Urbanation Inc. indicate that the majority (52%) of buyers of new condominium units in the Greater Toronto Area are being purchased by investors who do not intend to occupy their units and that only about 5% of new units are being purchased by foreign buyers (i.e. buyers whose primary residence is outside of Canada). The survey was conducted among developers of condominium projects being developed in the 3rd quarter of 2016 (projects in the pre-construction and construction stages and recently completed projects). Urbanation Inc. is a research company that has been analyzing the Toronto condominium market since 1981.The results of the Urbanation survey are consistent with the findings set out in the Canada Mortgage and Housing Corporation (“CMHC”) November, 2016 report, Housing Market Insight Canada – Foreign Ownership. The CMHC report indicates that foreign ownership of condominiums in the Toronto Census Metropolitan Area in 2016 was 2.3%, with the greatest concentration of foreign ownership in new condominiums and condominiums with more than 500 units.There has been considerable speculation as to whether the Government of Ontario will introduce a tax on foreign buyers, as was done in British Columbia. Since the results of the surveys conducted by both Urbanation and CMHC indicate that only a small percentage of units are being purchased by foreign buyers, this would seem to suggest that there is no need for a foreign buyers tax.Another survey conducted by Urbanation indicated that the supply of condominium units in the Greater Toronto Area listed as available for rent dropped by 13% in the 3rd quarter of 2016.“Market conditions became very tight in the third quarter with the average condo rental spanning only 12 days on the market and the number of units renting for above asking price more than doubling from a year ago.”These findings are consistent with recent findings of the Toronto Real Estate Board, which indicated that rental rates for condominium units had escalated considerably due to the fact that there were fewer new condominium projects being completed in the third quarter.With the hot real estate market in the GTA it will be interesting to see what happens in 2017.

Many are looking at these results in light of BC's additional tax of $150,000 per property in Vancouver and Toronto's eyeing Revenue Tools ( additional Taxes )

Do you think we need a Toronto Condo Tax on Foreign Owners?

How do we decide who is a foreigner?
Are they a Student?

Are the Landed Immigrant or Permanent Resident?

What's the best way to see a condo unit?

Matterport of course

List your condo?

Tuesday, December 20, 2016

AirBnb is finished inside Toronto condo

Now it is up to the individual condo boards to remove them from the buildings.

The condominium declaration in this case provided that the units could only be used “for the purpose of a single-family dwelling, which includes a home office . . .  and for no other purpose.” The declaration did not contain any provision which specified a minimum lease term for any rented units.

 OCSCC No. 961 v. Menzies, the Ontario Superior Court of Justice concluded that the short-term leasing of a condominium unit was in essence the operation of a hotel and thus constituted a breach of the single-family provisions in the condominium declaration and also a breach of the condominium rule that prohibited leases with terms of less than 4 months.

I think that is rather conclusive.  You?

Would you like to talk about condos?

Ping me or email

Tuesday, December 13, 2016

3 New Condos beside the Islington Odeon just off the Queensway

Located just west of what was the best back bacon sandwich....

On the South side of the Queensway, behind the 3 towers by Remington, there is new construction proposed. 

A formerly industrial area of Toronto is about to see an explosion of new residential density. A new proposal for two or three condo towers has been submitted for 2 St. Lawrence Avenue, located on a 3.22-acre site just north of the Gardiner between Kipling and Islington Avenues in Etobicoke. Overseen by Kooby Investments and designed by Kohn Partnership Architects, the application seeks to rezone the subject lands to allow for residential construction

Directly to the north of 2 St. Lawrence, a rezoning application was submitted in 2014 for the construction of a two-storey commercial building along the Queensway—to include a replacement Sobey's for the Kipling Queensway Mall location which will be lost to a Gardiner interchange expansion—with two residential towers of 22 and 27 storeys just to the south. Jumping to the east, the lands of the Cineplex Cinemas east of Dorchester Avenue have been granted permission to be severed, with a rezoning application submitted proposing four residential towers of 12, 12, 12, and 20 storeys along the Queensway frontage.

Do you know this place?   just west of the Odeon Theaters? 

What do you think?

Would you like to live there? Tell me why?  

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