Bidding Wars - Now you have buyer's Remorse

A major issue arising in bidding wars is when a buyer regrets their purchase decision almost immediately afterwards. Or worse, when their lender appraisal says that they paid too much and will not lend the buyer enough to close the deal. Here are five lessons to learn about the consequences of a buyer’s remorse in these situations.


1. Can the buyer simply refuse to pay the deposit, if it has not yet been paid?

In many bidding wars, this is not possible, as sellers are demanding certified cheques or bank drafts to accompany any offer. However, even if a buyer can either stop payment on an uncertified cheque or refuse to pay the deposit, they are still liable for damages. They can be sued by a seller for the difference in price if the seller subsequently sells for less money. In addition, even if the seller subsequently sells for more money, the buyer can be sued for the amount of the deposit that they failed to deliver.

2. Should a buyer agent approach the listing agent for a mutual release immediately?

Be very careful about this. If a buyer agent communicates that the buyer cannot close, then the seller could take the legal position and declare that the buyer has committed an anticipatory breach of contract. This would permit the seller to treat the contract as terminated by breach, and proceed to sue the buyer for the items listed above. It is best for these negotiations to be carried out by lawyers, to make sure that the parties’ legal position is protected at all times, if a settlement is being negotiated.

3. Is there a legal solution to this?

If there is sufficient time before closing, a buyer is permitted to assign their contract to a new buyer, who could take over their position and close with the seller. This is because unlike a contract with a builder, there is nothing preventing a buyer from assigning a re-sale agreement before closing. A buyer must understand that if they are asking their own agent to “sell” the property for them, they will have to pay real estate commission as well. Therefore, a buyer would have to assign their agreement for a price that is equal to the price they paid plus commission, just to break even.

4. Does a seller have to agree to this assignment?

In most cases the answer is no, unless the original offer contained a seller take-back mortgage. However, in practice, many lenders will not recognize the new buyer unless there is an amendment done to the original agreement to change the buyer name to the new buyer. This will require the consent of the seller.

In my opinion, this is unfortunate as lawyers routinely change how a buyer can take title by providing a direction to this effect on closing. Sellers should consent to this anyway, as long as the original buyer remains liable if the new buyer cannot close the agreement for any reason.

5. Can the buyer list the assignment onto the MLS system?

Theoretically, a buyer could list the property on an MLS system because they have a right in the contract that they can sell. However, most real estate board rules require that to list a property on their system, you must be able to show the property and without the seller’s agreement, this will not be possible.

I had a situation where the buyer could not close after winning a bidding war. I negotiated with the seller’s lawyer to permit the buyer to put the property back onto the MLS system and the seller would permit showings. It was also agreed that the buyer could not make any profit on this re-sale and that they could only recover their extra commission cost. The benefit to the seller was that their deal closed and the parties were able to save themselves from very expensive legal proceedings.

Anyone can close a simple real estate deal. When it comes to choosing or recommending a real estate lawyer, make sure you have one that can solve problems that can arise as well.

#Toronto #realestate
#callme

http://SellinginToronto.ca

Your rental property can be seized as Proceeds of Drug Money Laundering

Here is the situation;

Couple owns a few rental properties that they rent to [second chance] ex cons, people down on their luck, homeless people trying to re establish themselves, low income housing.

Police decide that rent payments made to the Landlord in cash must be the proceeds of crime since the only form of income for the tenant is dealing drugs.

This very scenario is playing out right now in the Ontario Courts under the Civil Forfeiture Act.  

Here are the details in Broad strokes;

Margaret and Terry Reilly are from Orillia, Ontario. The Reilly's own several rental properties, some of which are former single-family homes that they have converted into rooming houses for low-income tenants. Margaret has been involved in alleviating poverty and homelessness since her father became the priest at an inner-city Anglican church in Toronto and opened a youth hostel there, while Terry has served on the City of Orillia Homeless Committee. Providing housing to marginalized members of society has always been a deliberate choice for the Reilly's.In 2008, after police surveillance confirmed drug activity at two of the Reilly's rental properties, a branch of the government called the Director of Asset Management took control of them. Since then, the properties have languished largely unoccupied, falling into progressively worse repair. Stripped of their rights as landlords, the Reillys had no choice but to watch their properties deteriorate physically and depreciate in value. Then, in 2012, the Government of Ontario brought a motion to permanently seize and sell the properties on the grounds that some of the tenants’ rents may have been paid, in part, with the proceeds of their drug activity. There is no evidence that any funds paid by tenants was derived from drug money; the state merely assumed that cash payments must have come from the proceeds of illegal activity. http://theccf.ca/r-v-reilly-civil-forfeiture/ 

This property(S) were seized under the Forfeiture Act without anyone being charged.
This family has NEVER had their day in court but had their property taken away.

The lesson here is monitor your tenant activity; visit twice of more time per year to ascertain the activity in YOUR PROPERTY.   Be more diligent in your tenant screening. Bad things can happen to good people. 

#ASKPYLYP

Use a realtor to screen tenants in your rental condos.

Ready to invest?   If  I haven't scared you call me at 647 218 2414
http://Davidpylyp.com 

Will Title Insurance cover a hidden defect?

How could insurance cover a Hidden [latent] defect?

By its very nature, it is something hidden.

Not so fast .....

the case revolves around Paul and Stefanie Macdonald who bought a home in the city that they believed had been poorly renovated by its previous owner. When they attempted to undertake renovations of their own, they found that load-bearing walls had been taken out without building permits – making the second floor unsafe for use. This prompted the city of Toronto to issue a work order to support the unsafe floors with the Macdonalds paying out $75,000. They made a claim to Chicago Title on their insurance policy to cover these costs because the policy was said to provide coverage if the title was unmarketable. However, the claim was denied as the company stated that it was not covered under the policy.
This, in turn, prompted court action beginning in 2014, with the judge ruling that the municipal work order resulted from a hidden defect that was not covered under the policy. It stated that the work order did not affect “ownership of the land” as it was not registered on the property title – even though work orders are never registered against the title.
http://www.insurancebusiness.ca/ca/news/breaking-news/huge-title-insurance-case-reaches-conclusion-217419.aspx

 It was last year that the decision was reversed with the insurer ordered to pay more than $50,000 in costs with the ruling suggesting the hidden defect made the title unmarketable. Now an appeal by the insurer has been dismissed and the ruling upheld.

So  what's the conclusion?

The situation will be taken under advisement and studied by the Industry.   I am sure if you are in the situation to sue; you now have case law in your favour.

Do you check the insurance claims history of a house before you buy? 
You can actually    With a Home Verified Report
http://eleganthomesinwesttoronto.blogspot.ca/2013/07/did-you-buy-house-with-flood-damage.html

#AskPylyp   Work with an experienced agent.

Call me   Let's talk 

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 3^rd 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 3^rd 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

http://Bit.ly/CondoTour


List your condo?

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.

http://www.lashcondolaw.com/ontario-court-decision-on-short-term-rentals-in-condominiums/

I think that is rather conclusive.  You?

Would you like to talk about condos?

Ping me or email

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? 

http://DavidPylyp.com  

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

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

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

Putting your House on the MLS is not enough

Just POSTING your house onto Realtor.com  or MLS.ca is not enough to market your home. You want to attract a wider pool of international buyers who will qualify themselves into loving your home.

New technological advancements in real estate are piling up, making your habits grow old much faster. These cautionary tales from the plugged-in crowd at Inman Connect this year reveal ideas and practices that practitioners should ditch as they move toward a more connected world.Favoring Traditional Listings Over an Interactive ExperienceConsumers are demanding a more dynamic experience while searching for homes online, but many real estate companies aren’t offering 3-D listings because they fear the impact the technology could have on the role of the agent, says Marc Haguenauer, CEO of Vieweet, a company offering tools to shoot 3-D video and virtual reality. “Brokers fear that if you’re using virtual tours as a marketing device, you’re giving away too much information right away and losing leads,” he says.The idea that the enhanced detail of 3-D listings takes away from the importance of an agent is a fallacy, says Mark Tepper, vice president of sales and business development for 3-D camera maker Matterport. He says richer listing detail gives international buyers and those who can’t be there in person to see the property a reason to call. “What it will do is bring you better-qualified buyers and open you up to a global market,” Tepper says.Up next is virtual reality, whereby real estate pros can create a virtual world inside a home. Though the technology is still evolving, Tepper says 3-D will help usher virtual reality into everyday marketing tasks. So it’s important to get a handle on 3-D now so you’re ready for what’s coming next.Outsourcing Technology Education to VendorsBrokers often seek out vendors for training on new technology platforms, but it’s time to rethink that strategy. “We have so many tech tools available, but adoption is a challenge because of the broad demographic of our agents,” says Dina Di Maria, senior vice president of information technology for NRT, a residential brokerage whose brands include Coldwell Banker, Sotheby’s, and ZipRealty. http://realtormag.realtor.org/technology/feature/article/2016/02/3-technology-habits-you-should-kick

New Tools are coming to Market your home and Buyers are using Matterport Technology, Virtual Online technology and SINGLE Address website to Feature your home.   Get a top agent who is actually using it to speak to agents and Sellers about how they can use it. 

Distribute 200 - 300 OPEN HOUSE invitations to your event; Include the Website detail.

David Pylyp
647 218 2414

Call to list Today!   We have buyers waiting.

Its been inside the garage all these years

You came to visit and take an inventory.

Mom has relocated to the  retirement centre and the house vacant for over a year.  The carry costs are accruing. 

There in the back; the Soap Box Racer that you built with your Dad and saved for next year's races. It has been waiting all these years.   So many feelings come to the surface.

Your siblings are getting VOCAL about selling the house and taking advantage of the strong real estate market in Toronto; but there are so many things to deal with.

Where do you start?

Accredited Senior Agent, David Pylyp can bring forward an array for help to prioritize and organise the contents. 

Its more than a sale.   These are your memories

David Pylyp
Sales Representative
RE/MAX realty specialists inc., brokerage
416 233 9000

If I can't help; I will recommend someone personally vetted who can

http://AgentLocatorToronto.com

Is it OK to VIDEO the OPEN HOUSE?

Your home viewing experience is being shared live with the Sellers and our Entire Periscope Live Streaming Audience.

Is that an invasion of your privacy?

Does it safe guard against theft?

Live Streaming your Open House.
Fab or Fail? 



Time to list?

Call Dave 647 218 2414
#askPylyp

You claim you had 2000 views on REALTOR.ca - Prove it!

OK!

Any agent can show you the number of views per listing period and their intensity.

That is part of the marketing function.  Getting Eyes on your property

I know that some are proponents of 3rd party websites;  BUT MLS.ca is the strongest portal available to Toronto Home Sellers.  The combination of Matterport as a Virtual Viewer and MLS presentation makes buyers share the listing details with their friends and family.

That makes them PRE qualify themselves.

Can you see when that listing HIT the market?   Let me do this for you and your home sale.  #Call me

Taxing the Land Transfer Tax in Toronto

Instead of curbing spending Toronto City Councillor pitches extra tax on Home and condo purchasers. 


Toronto Canada has the highest Tax to purchase a home based on the sales price of the transaction.

The Ontario Government imposes a Land Transfer Tax
The City of Toronto imposes their own Land Transfer tax

Check what a sale a $750,000 would cost you.
http://www.trebhome.com/buying/ltt_calculator/ltt_calculator.htm

Now they want you to pay a NEW tax on the tax

At the city of Toronto's budget committee meeting on Tuesday, they'll be discussing a proposed $75 administration fee. Torontonians will have to pay the fee in order to process a Municipal Land Transfer Tax payment.

It was put forward by Toronto City Councillor Gary Crawford

If passed, the fee would be imposed as of April 1st and would reportedly save the city $5 million a year.

For more details about the proposal visit http://app.toronto.ca/tmmis/viewAgendaItemHistory.do?item=2016.BU18.1

- See more at: http://www.newstalk1010.com/news/2016/01/24/toronto-budget-committee-proposal-looks-to-add-processing-fee-to-municipal-land-transfer-tax-payments#sthash.uqUAa89l.dpuf

   

You should know the facts to Change your life in 2016

What prices should we watch this year?   Everything is going to be more expensive!

We faced financial extinction in 2008 and bounced back. The average Toronto detached home approaches $622k. Sales continue unabated averaging 10% per year in financial gains per year since '95 breaking 100K units in the GTA. 

The key seems to be consistency.

This could be coming to an end.

**
**


Oil Prices have been falling, much to our delight at the gas pumps but now we realise that OIL and Gas related employment accounts for 25% of our economy. Increased expenses for everything we eat, as we suffer with exchange rate that is an eleven year low.

Brick-and-mortar stores still have value in the form of sales and brand experience, but if they’re not building a strong online presence in tandem, they’ll quickly find themselves out of the running.

Canadian Consumers are increasingly shopping online.

Mortgage Finance rules have changed requiring Larger downpayments and stricter lending guidelines. Those Millennials fortunate enought to have found a decent paying dependable job will some trouble qualifying for new mortgages; Those with contract work will find it a struggle. 

With so much weakness in the domestic economic picture,  uncertainty over oil prices and negativity in Canadian markets, year-end seems a good time for homeowners to focus on eliminating debt and consider finally working towards being debt free.

We All still see Canada as a safe haven for investment and immigration. People will continue to arrive and 95% want the Canadian dream of Home ownership. 


It all simply comes down to consumer confidance... 


I dont have an APP    Just call me  
Let me help you with my best pricing tools

David Pylyp
Sales Representative
Accredited Senior Agent
Toronto Canada 

RE/MAX Realty Specialists Inc., Brokerage
Mississauga, ON

Tall is the most efficient design

Etobicoke South Completions this year; 2016

The congestion around Park Lawn and Lake Shore is set to MORE!

2016 Completions

With much of Etobicoke's high-rise construction activity clustered near the Lake, the Humber Bay Shores and Lake Shore Boulevard corridor are set to see a wealth of projects completed in 2016. Overlooking Mimico Creek just north of Lake Shore Boulevard, The Times Group's Key West kicks off our coverage in Etobicoke's east end, with the 44-storey Burka Architects-designed tower now in the closing stages of construction. With the building now topped off and 90% of the cladding installed, the project is already shaping up aesthetically, with precast concrete piers emphasizing the vertical amidst the surrounding cluster of towers.

Do you have a favourite community? 

Would you like to live here?  Connect with me at 647 218 2414

We all buy based on monthly payments

But do you actually stop to think and consider the value of what you are purchasing?

Some recent events are causing me to re examine some decisions I have made in the past;  Namely, we decided that paying $735 per month in maintenance fees was acceptable since we lived near the lake, had transit and concierge both at the front door.

Since, I work primarily from home I relished the conveniences of no maintenance obligations, a garbage chute, the power washing of my above ground parking spot inside a heated garage, snow removal and landscaping.  I walked to my office coffee in hand.

We have a new child.  Everything has changed in the span of 9 months

This is causing our revisit to a detached home;  deemed un attainable by pricing, as detached property in the west Toronto averages well into a one million dollar purchase.

http://www.trebhome.com/market_news/market_watch/

The alternative is to accept modern, thermally efficient, well wired (no aluminium or weekend electricians) centrally located townhouse that are in close proximity to a subway station.

A number of these communities have emerged, Islington Village, Furrow Lane, Van Dusen, Bering Avenue, Six Points Road,  and newest is Westhaven's Tiffany Park, [just south of Judson beside the No Frills]

BUT  what are you buying for almost $900,000?  Lets say that together ...  NINE HUNDRED THOUSAND DOLLARS!

The lot size in the pictured sample is 14.76 feet by 61. 81 feet. This includes the patio or rear deck over your tandem garage.  There will be a rear door to the alley.  A lot of this size is called a POLT   Parcel of Tied Land,  the balance of the property is actually a condominium corporation for the ongoing road landscaping and upkeep.  This way we are buying a FREEHOLD property.

Trims and finishes are modern granite and hardwoods, Fireplaces are Gas fired, but there is little rear yard for gardening.

Let' examine the Monthly carry costs

$900,000 Purchase Price
  180,000 Downpayment (20% will save you the CMHC premiun)
 $720,000 First Mortgage  at Today's rate  you qualify at 4.64% but get 2.69% for 5 Yr.

LTT (Toronto Land Transfer Tax to purchase)     $28,200

That payment is $3,294 per month assuming no rate increases over the next five year period.  Your mortgage balance at renewal is $611,709.  We have not paid the maintenance fees or property taxes, Nor turned on any lights or the heat.  Have you

A good used car carries at $500 per month with 0.9% financing but I only extended myself to $35,000.

Adding my car debt requires an income level of $250,000 gross per year ( family or combined ) and that simply is beyond most first and second time buyers.  Mortgage Finance rules have changed for 2016 requiring Larger down payments and stricter lending guidelines. Those Millennials fortunate enough to have found a decent paying dependable job will some trouble qualifying for new mortgages; Those with contract work will find it a struggle.

What are your thoughts on Toronto Housing affordability?

Real Estate NEVER drops in price

Real Estate prices never go down or it's always a good time to buy may have additional qualifiers this year.

The Financial Post says;

With so much weakness in the domestic economic picture, so much uncertainty over whether or when oil prices will recover, and so much negativity in Canadian markets, year-end seems a good time for investors to consider finally working toward real diversification, and paring back their exposure to domestic assets that represent a very small portion of world market. 

http://business.financialpost.com/investing/who-the-heck-knows-what-will-happen-in-2016-heres-what-investing-outlooks-are-actually-good-for

With our dollar dropping, taxes increasing and the loonie at an eleven year low; this is an excellent year to eliminate high interest rate debt.

http://RenewYourMortgage.com

Tell them Dave sent you.

In the mean time if you want the best price possible on Toronto real estate http://davidpylyp.com

Toronto's Million Dollar Homes are HOT

The luxury market in the Greater Toronto Area was very active during the first seven months of the year. Sales of properties over $3 million increased 119 per cent year-over-year. The increase of sales at the top-end of the luxury market can be attributed to two factors.

One is overall price appreciation in both markets, driven by low inventory and high demand for single-family homes that has led to more homes meeting the higher dollar threshold. A second factor is high demand for luxury homes from foreign buyers in both markets. 

Two demographics make up the majority of buyers in Toronto’s luxury market.  One is families with older children and parents with professional jobs who have built up enough equity in their previous home to upgrade. The second are families from outside of Canada, primarily China, with school-aged children. These buyers typically choose four or five-bedroom homes and are strongly influenced by proximity to good schools.


http://download.remax.ca/PR/HMO2016/Report/REMAXHousingMarketOutlook2016.pdf#20561241

Average sales prices now exceed $600,000 for a detached home.  Our year over year gain for 2015 is expected to be at or near 10%

Canada Mortgage and housing has introduced new rules for additional down payments requiring 10% down after the $500k threshold.   I doubt these measures will have any effect to slow sales.

Rates continue sub inflation
Inventory Remains Low
Immigration for Jobs and Safe Haven Continues

Are you Selling or Buying?  http://DavidPylyp.com  Come see what's new!

What do you think?

NEW Improved Protecting Condominium Owners Act now in place

With almost 600,000 condominium units in the Province of Ontario and more coming; the Condominium Act was slated for review.

I disagree with an additional layer of government that is ruled by Tribunals that require paralegal representation and will require funding [ we pay ] as compared to legal redress. This also will cure many self managed Condo buildings that run rogue over residents.

However the Top Talking points are;

A new Condominium Authority will be established in 2015 to prevent common disputes and serve as a cheaper alternative than the court system to resolve problems. It will be an independent, not-for-profit corporation self-funded by a $1-per-unit monthly fee and will fall under the oversight of the provincial auditor general.

There will be mandatory licensing and education requirements for condominium managers. The new administrative authority is designed to regulate condo managers and property management companies through a compulsory licensing system and a code of ethics.

Governance requirements for those on condo boards will include training of directors. Boards would no longer have to pass a by-law in order to hold a conference call or virtual meeting online. And they would be required to update owners regularly on insurance and any legal proceedings.

There will be clearer rules to protect owners from sticker-shock costs after purchasing newly built units. Developers will be required give buyers a guide to condominium living at the time of sale and the Ontario new home warranty will soon also apply to some condo conversion projects in older buildings.

Improved regulation for condo corporations should help curb financial mismanagement and organizational bungling and reduce fraud. It would forbid condo corporations from finalizing some maintenance contracts unless they have sought competing bids for work and give owners more information about their corporation’s finances and clarify rules about reserve funds.

The Protecting Condominium Owners Act 2015  Bill 106 

is available here

http://www.ontla.on.ca/web/bills/bills_detail.do?locale=en&BillID=3399

Better or Worse Its here

What do you think?