First Glimpse of a Light Rail Transit Train

 



While out for a walk, Corey and I came across one of the new LRT trains parked in our neighbourhood during a carnival on Eglinton.  We are very excited about the Crosstown Project (expected to be running along Eglinton by 2020) and it was actually one of the reasons we were so attracted to our neighbourhood!

Here's another look at the train:

... And here's the map of the full project as shown on the Crosstown website:

 

The downside is that we'll have to put up with years of traffic congestion along Eglinton (what else is new) as the machines named Dennis and Lea (after neighbourhoods Mount Dennis and Leaside) dig the underground portion of the line at a rate of ten to fifteen metres a day.

 

Who else is excited about this project?

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If a tree grows in your yard and crosses the property line, is it still your tree?

Okay, I promised in this post to stay away from the news, but I couldn't help myself today.  I was reading an article in this morning's Globe and Mail, and according to a recent Ontario Superior Court ruling, your neighbour can prevent you from removing a tree which is almost entirely on your own property. 

Since we began assessing our backyard, we have been researching tree removal bylaws to ensure that we would be compliant.  We are lucky to have very few trees that sit close to a property line.  Our hope would be that if a tree were ever in question, our neighbours would be reasonable (as would we) but I have heard of lovely neighbours suddenly behaving strangely when a neighbour wants to cut down a tree. 

One of my friends is currently speaking with neighbours about cutting down a tree (mostly on her property) because the roots are damaging the foundation of her house.  What would happen if her neighbour decided they were too attached to the tree?

I clearly disagree with this ruling.  I think people need to be free to alter their own landscape and if a neighbour objects, they should plant their own tree.  In an ideal world, people would come to agreements... but while this happens often (and it's nice when it does) our laws need to provide an absolute answer and not rely on the agreement of other parties. 

Not only would this affect my right to cut down my own tree but it also restricts my neighbour's right to trim branches of my tree that cross the property line.  In my opinion, this ruling puts the rights of both sides (those with trees and their neighbours) in jeopardy.  The only ones protected here are the trees.

It's sad, but you know what this makes me want to do?  It makes me want to cut down my trees before they are large enough for the government (or my neighbours) to have a say.  I'll bet I'm not the only homeowner who feels that this may be necessary if we embrace a future with such restricted rights for property owners...

What do you think of the ruling?

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5 Things Living Alone Teaches Us: Could This Be The Next Housing Trend?

These days, more North Americans are living alone than ever before.  Author, Eric Klinenberg explores this new phenomenon as well as the social implications in his new novel, Going Solo.   He is quick to point out that this is not necessarily a negative trend and as opposed to examining the divorce rate, he instead equates the trend with our technological ability to be constantly connected to one another; sometimes to a fault.  "We need to make a distinction between living alone and being alone," says Klinenberg.  He says that many people who live alone often spend more time socializing with friends than people who are married, although I suspect this can be said of most single people who live with roommates as well.

The reasons for this trend aren't difficult to see.  People can afford to live alone now; women are entering the housing market in record numbers; social networking sites help to prevent loneliness; and people today tend to focus on their careers and get married later than their grandparents. 

I have been lucky enough to have had the opportunity to live in a variety of situations before Corey and I moved in together and I was glad for the things I learned about myself when I lived alone.  While I'm happier living with Corey, I wouldn't trade those experiences for the world.  Here are the top 5 things I learned:

1.  I am more independent than I had expected.  I loved the feeling of pride I had when I lived by myself and everything was mine.  I loved not sharing.  I loved that when I wanted to roughly sew scraps of fabric together to make some ugly drapes, nobody said anything!  This was an important time for me to learn about the things I liked.

2.  I don't get lonely.  I can spend hours in the evenings just reading and I love coming home to peace and quiet.  Living alone forced me to schedule proper time with friends and it also reminded me that I enjoy my own company.  I also enjoyed the freedom of not being expected home at a certain time.  I found that I frequently stopped to smell the roses (or shop for shoes) on the way home from work and I never cared what time it was.

3.  I like to call my mom once a day.  This habit has continued even now that I live with Corey.  Aside from my mother, it taught me which relationships feed my soul and how important it is to nurture those relationships.

4.  I am a little messy when I'm the only person in my home.  I don't think I would ever hang up my coat except for company... or because I now live with another person and we both do it out of respect for our shared space.  We all like to think of ourselves a certain way but living on your own leaves you without any excuses to hide behind.  The plus side is, since I dislike cleaning, I do not find myself tempted to use it to procrastinate other things.

5.  I can survive a crisis.  In my time living alone, I've lost my keys; been followed home by a scary stranger; taken care of myself when I had the flu and even survived a bad case of appendicitis.  Although the latter involved my mom and brother driving me to the hospital in the middle of the night, it's nice to know that I'm up to most challenges.  Seriously, there was something very empowering about knowing that if something went wrong from a blown fuse to a fever, I (with the help of a bag of spare fuses or a bottle of Asprin) had it under control.

So how many of us are living the solo dream?  Klinenberg says that recent stats show us that 28% of U.S. households are one-person homes.  When compared with less than 10% in 1950, this certainly seems to be a trend.  It is also interesting to note that in busy, hyperconnected Manhattan, as many as 1 in 2 dwellings are inhabited by only one person. 

What does this mean for the real estate market?  Well, I've been wondering too and I believe in the years to come, there will be more published about this trend and how it effects real estate.  I believe condos may continue to be popular due to their size, cost and ease of maintenance but I also think we'll begin to see more and more cost effective micro condos.  I suspect, these smaller units in the city core will be more popular in the future.  

If the concept of micro condos and micro lofts sounds extreme to you, bear in mind that according to a recent National Post article, between 2011 and 2012, the average price per square foot of a GTA high-rise condo increased by 2% while the average size of the units has decreased by 16%.  If we look back to 2009, it seems that units in new GTA builds are roughly 100 square feet smaller now.  While I wouldn't call 800 square feet "micro" by any standard, the 350-400 square foot studios are not far off.

What have you learned from living alone?

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Is There Price-Fixing in the Building Industry?

 

Those of us who live in Toronto already know that the new home construction industry is booming.  Aside from bungalows in older neighbourhoods being torn down to make room for larger homes with granite counters and ensuite master baths, in seems like we're always hearing about a new development sprouting up in a space we weren't even aware existed!  It would seem that with all the new construction companies which have materialized to deal with this extra demand, consumers would have some ability to shop around, right?  After all, this is Toronto, not some one horse town with only one local construction company... RIGHT??

This morning, CBC News published an article about alleged price-fixing in new home construction industry, specifically between up to 10 large companies that form moulds and pour the foundation in the basements of new, low-rise homes.  According to the article, some of the larger companies have fixed prices, made a deal not to compete and attempted to "stifle" their smaller competitors.  They allegedly met or spoke regarding prices and pressured smaller companies who were undercutting them.

As a Realtor, I happen to believe that the Competition Bureau, while necessary, can be a little high-handed and impractical at times.  Still, if this is true, it could have huge implications for the new home construction industry.  Have builders (and, by proxy, buyers) been overpaying for new homes since 1997?  What does this mean for the future price of construction in the GTA?

I must however, also look at the other side and I would want a few questions answered before solidifying my opinion:

How do they know it is true price fixing?  It is normal for members of a union to know one another, even if they work for different companies.  Is there actual evidence of conversations discussing price-fixing or is the Competition Bureau inferring this for documentation provided by one man who is connected to the accused parties?  In my opinion, discussing work and suppliers with colleagues is not a crime.  After all, don't we all want to know what our competitors are charging and if they can offer any professional advice?  In real estate, I maintain professional relationships with many of my colleagues.  We offer one another advice and support.  I have found many of my colleagues in the real estate industry to be honest, bright and hard-working.  Do these professional relationships constitute a grounds to investigate us for price-fixing?  What if we all happened to charge a similar price for providing top service within our industry and agreed not to poach clients from each other?  As you can see, it's a slippery slope and a grey area.  These rules are intended to protect the consumer, not to punish needlessly.

Another point to look at further is whether the smaller companies who are being "stifled" are also in the union or are they non-union companies?  Non-union companies can be very good companies but they can also choose not to pay their employees fairly or insist on maximum shift lengths to ensure safety.  They may not have the same level of training and I would wonder whether they were giving low bids and then inflating the tab afterwards.  If this were the case, I would find it difficult to blame the larger companies for pressuring them.  In an industry where your client/customer may not be aware of the full scope of your work, a rival who manipulates the truth or over sells their wares can be dangerous.

Still, baring some great answers to these questions, it would seem that these companies are in hot water and perhaps rightfully so.  I look forward to learning the details and watching how this impacts the construction industry.  For private owners arranging building services, we may see lowered costs but I suspect the builders will still sell their homes at the same prices since they are determined by overall demand in the housing market and neighbourhood sales.

Why You Should Care About Toronto Land Transfer Tax.

You may have already heard that Toronto's Land Transfer Tax (LTT) has been subject of considerable controversy.  For those of you who aren't sure what it is or what impact it plays on their real estate purchase, here's a little background.

Roughly translated, LTT is a tax imposed by the government and paid by the purchaser of a property.  Of course, we have tax breaks for many first time buyers but it is important to remember that the tax is calculated based on the purchase price of the property.  This minor detail makes a large difference to a family who has sold their condo for $400,000 and purchased a $900,000 house.  They will owe LTT on the $900,000 house, and in Toronto, they essentially have to pay twice.

How much is it?  This is a question I am asked frequently by clients.  It's actually not a mystery, as many people think although seeking legal advice is always best since there are exceptions.  The tax rates are shown below:


Provincial LTT

Amounts up to and including $55,000 -0.5 %
Amounts exceeding $55,000 up to and including $250,000 - 1.0 %
Amounts exceeding $250,000 and up to and including $400,000 - 1.5 %
Amounts exceeding $400,000 where the land contains one or two single family residences - 2.0 %


Municipal LTT

Single Family Residences containing one or two units:
Amounts up to and including $55,000 - 0.5 %
Amounts exceeding $55,000 up to and including $400,000 - 1.0 %
Amounts exceeding $400,000 where the land contains one or two single family residences - 2.0 %

All other Toronto Property:
Amounts up to and including $55,000 - 0.5 %
Amounts exceeding $55,000 up to and including $400,000 - 1.0 %
Amounts exceeding $400,000 up to and including $40,000,000 - 1.5 %
Amounts exceeding $40,000,000 - 1.0 %


In case you missed it, this means that when we buy property in Toronto, we essentially double our LTT.  This means that if you purchase a $500,000 home in Toronto, you can expect to spend about $12,200 on tax and if you purchase a $1,000,000 home, you can expect to spend about $32,200! We are the only city in Ontario subjected to this excessive taxation and it is simply unfair. 

The Toronto Real Estate Board has initiated a  Let's Get This Right, Toronto campaign to repeal this unjust tax.  Their two step approach suggests removal of the tax and better budget planning for the government.  Please visit their website to learn more and find out how you can help the cause with a simple email or letter or even just by sharing the site on social media. 

I have had clients who have said that the LTT played into their decision to guide our search to the suburbs but remember, this is not just a Toronto problem.  While city dwellers are paying the tax, long term consequences such as fewer people moving to the city (a lack of demand) could impact neighbouring housing markets as well. 

We're called "Toronto The Good" and we are generally fair.  We say "please" and "thank you," we give up our seats on the subway if we see a pregnant woman, we don't want a casino in our backyard.  We're practically a few steps away from prohibition... Okay, maybe not quite.  Still, we expect our taxes to be based on some level of fairness and we don't appreciate being treated like fools.  We're polite, not docile!  Let's do our part to keep Toronto affordable!

Competition Bureau vs. TREB: Here's Why I side with TREB... And it's not for the reason you think!

Okay, it's obviously partially because I work in the industry and want to protect my career but, to be honest, there will always be a solid market for those who want to list and buy through a professional.  No, I have other concerns for what it means that the Competition Bureau is pushing to implement rules that will encourage more people to list on their own. 

For those who haven't been following the news, there has recently been more press about the lawsuit between the Competition Bureau and the Toronto Real Estate Board over access to information on the MLS service.  Frankly, as a real estate agent who may also be selling her condo soon, I don't necessarily want the entire world to have access to comments about the condition of my unit, when I am home and instructions for my pets but that's still not my main issue with the public being able to access this information and list on their own.

In an industry where we are taught to give the utmost attention to ethical conduct, detail and accuracy in our listings and diligent research, we also hear the horror stories of what can happen if something goes wrong.  We are trained to negotiate ethically and to also ensure that there is a proper paper trail of all conditions, waivers, amendments etc. to reduce any risk of a mistake.  We also answer to an ethics council which ensure that we behave ethically while practising real estate.  We also maintain insurance to protect us and our clients from errors and omissions.  Even with all these measures, errors occur occasionally and in real estate, when one closing often depends on funds from another, an error or misunderstanding can set off a chain reaction affecting people who have never even hear of the original culprit or their property.

Picture this: Person A has a firm deal to Purchase the home of Person B.  Person A waived their financing condition without speaking with their lender but as closing day approaches, they realize there may be a problem because the bank's appraisal of the property indicates that it is overvalued and Person A cannot fund the difference.  If Person A and Person B both have agents, likely the agents will be in touch regarding the problem and will either renegotiate the price to satisfy both parties, or negotiate who will keep the deposit and allow Person B to re-list immediately in order to mitigate the damages.  If there are no agents involved, things could get tricky.  What if Person A just sends a letter to Person B (or worse, what if they avoid the issue?) asking to be released from the deal?  How do they agree on what is fair?  What if Person B doesn't learn of this until closing day and they are now unable to close on the house they purchased from Person C?  As you can see, things get much more complicated without agents.

Without agents, how would a buyer ever know if an mls listing were accurate?  Who would hold the sellers accountable for errors and omissions or would buyers be forced to pursue legal action for every minor hiccup at closing?  In my experience, most buyers find it uncomfortable to view a house when the seller is home so how would they feel about negotiating directly over something so personal? 

Sure, buyers could still use agents but those agents would still expect to be paid and if sellers decided not to, that would fall on the buyers.  Nobody works for free.  And would those sellers really be saving money when they negotiate directly with a buyer's agent who is both a skilled negotiator and not emotionally invested?

What about the discount brokerages who post to MLS but leave sellers on their own for the rest?  Well, aside from the fact that I would need to deal with my own showings, many buyers don't want their agent to deal with someone whom they perceive to be cheap and difficult.  I've had many buyers not even want to look at these properties because they sense an ugly negotiaion may result.  There's also the question of how they respond to inquiries regarding their own listings.  If you have already paid a brokerage a flat rate fee to post a listing, how motivated are they to answer questions or even return phone calls about your home from people who find the listing on MLS?

To me, my home is my largest investment.  I don't object to people listing on their own but it would never consider listing my own home without the assistance of a Real Estate Agent.  Here's a video which outlines some of the many ways we can help:

Why A Moderating Market Should Make Us Smile!

For those who take the headlines at face value, the real estate market has undergone an absolute roller coaster in the past few months.  We've been hearing threats of unsustainable growth and a bubble that's ready to pop, unscrupulous sellers and their agents who have manipulated bidding wars to extreme heights and now... Eeek, it seems that the prices are falling. 

In reality, home sales typically slow in the summer likely due to a number of factors, such as the sticky weather, family vacations and the fact that very few people want to move during the first few weeks of the school year.  Add to that the new mortgage rules and we are seeing the market moderate a little- Something those of us in the business have been expecting to happen eventually.  Far from a crash, a bit of equalizing could be excellent news for the market.

The Globe And Mail ran a great article this week which outlined five great reasons why a small decline in house prices could be very good news.  Topping the list is the fact that this may give many first time buyers who have been discouraged by the number of multiple offer scenarios last spring, a chance to finally break into the market.    Also on the list was the suggestion that this could lead to more rational transactions and negotiations.  Without an auction mentality, it is easy to reason that more buyers will feel good about their purchases in the years to come.

Our housing market is still strong and steady, as is our economy.  If housing prices see a small correction overall, it will likely increase overall confidence in our market and subsequently long-term strength.

We are Women Hear us Roar... And Watch us Enter the Real Estate Market in Record Numbers!

With RBC's 19th annual home ownership poll showing us that women are more likely than men to be first-time buyers in the next two years, it seems that Sandra Rinomato's new show, Buy Herself premiered at the perfect time.

Like men, women looking to purchase their first home prioritize down payment, job security and readiness at the top their list of concerns although an interesting difference between the genders crops up where rick tolerance is concerned, with only 16% of women (versus 25% of men) willing to take on a variable rate mortgage.

Rinomato has already seen success with her show Property Virgins and I'm interested (both as a real estate agent and as a woman who purchased my first home on my own) to see how she deals with the unique concerns that many single women have in terms of security, a single income and many other factors.  I'm also wondering how they'll inject drama into the show without couples disagreeing on which property to buy... Perhaps we'll see some crazy characters or overly involved parents.  After all, it is television first and reality second!

The Big Four: How Are Toronto's Newest Luxury Condos Shaping Up and Why is Trump's Venture Trailing the Group?

We've heard them called Caviar Condos and right now, Toronto has four of them.  With Residences at the Ritz-Carlton and Trump International Hotel and Tower open and Four Seasons Private Residences and Living Shangri-La both scheduled to open this summer, many are wondering exactly who is buying these 1 million to 28 million dollar residences attached to luxury hotels and whether there can possibly be a demand for over one thousand of these units hitting the market within a year.

Toronto Life recently featured a fun article comparing these luxury developments in terms of percentage of units sold as well as some of the challenges these developers have been facing.  The Four Seasons seems to be the hands down winner, with around 90% of the units sold and stories of some early investors who have already sold their units (over half a decade later) for nearly double what they paid.  Second place seems to go to the Ritz with over 90% of units sold.  The difficulty now is that the 20 units listed for resale could prove difficult for the builder to sell their remaining inventory.  Third place goes to Living Shangri-La with around 85% of their units sold with Trump trailing with only 40% of residential units sold and 80% of all units.

 This news about Trump Tower shouldn't surprise anyone who has been following some of the bad press this residence has been receiving.  It seems that while the hotel condos are selling (certainly faster than the residences) many buyers have encountered problems with financing due to the different rules applied to commercial properties.  A few buyers have so little confidence in the project that they are even attempting to break their contracts or walk away from their significant deposits.  Not only can property taxes be much higher for commercial properties but most lenders require the bar to be set higher in order to qualify a commercial buyer.  For me, this is just a shame.  I like to see DT thrive and I never miss an episode of The Apprentice.  Perhaps this will just mean we'll be seeing this real estate mogul in Toronto more frequently as he attempts some damage control.

Luckily, not everyone feels pessimistic and our luxury condo market seems to be an attractive investment for foreign buyers.  While it is difficult to obtain statistics on foreign investors, Janice Fox, the director of sales at The Four Seasons estimates between 30% and 40% of sales have been to international buyers.  In fact, The Four Seasons enjoyed a record setting sale last year of a 28 million dollar unit to a foreign family with plans to move here.

This optimism is also shared by many industry experts here in Toronto.  Oliver Beumeister, a real estate agent purchased a unit in one of these luxury developments five months ago and, according to a Reuters article, his plan is to wait until the surplus of units has been sold off in about four years and to then sell his unit for a 20% profit.  Not bad.

In a HOT Seller's Market, Where is the Line Between Savvy Business and Sneaky Tactics?

In a recent Globe and Mail article Carolyn Ireland asks this very question and many agents (like myself) who have both buyer and seller clients are pondering a fair answer.  While, in many pockets in Toronto, it is currently normal to expect a listing to sell for over asking, some of the severely underpriced homes on the market can be misleading and frustrating to buyers.


For sellers who may want to draw as much interest as possible, or who list low expecting multiple offers (or, as many like to call these scenarios- bidding wars) and are disappointed when they don't see numbers as high as they had hoped, this strategy seems reasonable.  After all, it may be a great time to be a seller in Toronto but aren't we all just trying to make the most of our investments?


For buyers however, who may have already placed offers on other homes which were not acccepted, the thought that some of the properties on the market may be listed in a totally different price bracket may seem overwhelming.  Ireland's article seems to scoff at the fact that this obvious game playing is legal and accepted practice.


At one point, Ireland asks if a customer would expect to walk into a retail store and offer the proprietor the $2.99 posted price for a tube of toothpaste only to be told by the owner that, they were actually hoping for $3.45 since there are many customers and few tubes of toothpaste and they will not accept anything under $3.20?  Of course this sounds ridiculous but it works the other way as well: In a time of toothpaste abundance, a buyer would likely not expect to offer the shop owner $1.75, "take it or leave it" and make much progress.  Well, this is exactly what buyers expect in a real estate market which favours buyers so why shouldn't the reverse be acceptable for sellers?  In the end, this is a very important and large purchase for most people (unlike a tube of toothpaste) and is therefore very obviously subject to the laws of supply and demand.


My opinion?  Buyers need to find an agent whom they trust and ask candidly about properties that seem too good to be true.  This market requires some strategizing and preparation on the buyer's end but with the right information and advice, it is just another minor challenge to overcome on the road to a new home.


As for the "games", I advise my buyers to remember that just as we are trying to find the best terms for them, the seller's agent is doing the same for their client.  I like to think of the lowball listings as just another strategy... Good or bad, it is just that.