samedi 29 février 2020

Habitat 67 à Montréal a un appartement à vendre et ça va te faire rêver (Photos) - Narcity Québec

Habitat 67 à Montréal a un appartement à vendre et ça va te faire rêver (Photos)  Narcity Québec

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En photos : cinq maisons à plus d’un million dans l’Est métropolitain - Métro Montréal

En photos : cinq maisons à plus d’un million dans l’Est métropolitain  Métro Montréal

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Un appartement disponible pour 1,3 million - Le Journal de Montréal

Un appartement disponible pour 1,3 million  Le Journal de Montréal

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Ancien site de Radio-Canada: Pas encore de permis pour les condos - Le Journal de Montréal

Ancien site de Radio-Canada: Pas encore de permis pour les condos  Le Journal de Montréal

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Habitat 67 à Montréal a un appartement à vendre et ça va te faire rêver (Photos) - Narcity Québec

Habitat 67 à Montréal a un appartement à vendre et ça va te faire rêver (Photos)  Narcity Québec

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Un projet immobilier dans un secteur patrimonial du centre-ville fera l’objet d’une consultation publique - Métro Montréal

Un projet immobilier dans un secteur patrimonial du centre-ville fera l’objet d’une consultation publique  Métro Montréal

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Montréal a perdu beaucoup de résidants au profit des régions adjacentes - LesAffaires.com

Montréal a perdu beaucoup de résidants au profit des régions adjacentes  LesAffaires.com

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En photos : cinq maisons à plus d’un million dans l’Est métropolitain - Métro Montréal

En photos : cinq maisons à plus d’un million dans l’Est métropolitain  Métro Montréal

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Immobilier locatif: Lequel de ces 10 propriétaires multilogements êtes-vous ?

Multilogements

Cet article Immobilier locatif: Lequel de ces 10 propriétaires multilogements êtes-vous ? est apparu en premier sur Mieux Investir.



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Dominic Goulet-Lapointe

Cinq conseils pour trouver la bonne maison - La Presse

Cinq conseils pour trouver la bonne maison  La Presse

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Montréal a perdu beaucoup de résidants au profit des régions adjacentes - LesAffaires.com

Montréal a perdu beaucoup de résidants au profit des régions adjacentes  LesAffaires.com

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8 Challenges and Trends Affecting Millennial Home Ownership

The Vancouver real estate market is pretty unforgiving when it comes to the young and lower income buyer. One of the hardest hit by home prices is the millennials, those aged 23 to 38 who are missing out on some of the “givens” generations before them enjoyed. One of the biggest influencers that can keep millennials out of the market is that people are living to ripe old ages, which in turn keeps their homes off the market.

Add to this the trend to age in place, and inventory in cities like Vancouver and Toronto suffer. However, there are quite a few challenges and trends that are keeping millennials from buying a home in Vancouver. Here are eight of the most influential facts affecting millennials and the trends that are changing their idea of homeownership.

1. The Age of First-time Buyers has Risen

Today the average age for a first-time buyer is 36, much higher than generations before. Most homeowners today were just 30 when they bought their homes. In Vancouver, millennials have a double whammy affecting their home buying abilities: It takes them longer to save for a home due to sky-high prices, and wages have not grown much during their years of employment. Hence, they are older than their parents when they can finally afford a home.

2. Parents are Helping with Purchases

According to the BC Notaries Association, about 90 percent of first-time buyers in B.C. borrowed or were given money from their parents so they could qualify for a mortgage. This has a lot to do with the stress test introduced by the federal government to make it more difficult for buyers to qualify for a mortgage. Their hope was to counter national home price inflation as it was posing a threat to the national economy. Why? It was raising the number of Canadians burdened with heavy debt. Because millennials have limited equity due to salary stagnation, their parents are the bank of choice today, at least when it comes to raising money for their down payments.

3. Vancouver Home and Income Gap

According to Statistics Canada, the Vancouver metro region has the unfortunate claim as the highest “value-to-income ratio.” This unpleasant title shows the disparity between average salaries in Vancouver and the cost to buy a home. In Vancouver, property values were nine times greater than the income of owners. Clearly, this is a very challenging trend millennials are facing today.

4. To Move or Not to Move

Many millennials will have to decide whether they stay in Vancouver or move to a more affordable city. If they aren’t willing to give up the urban lifestyle they love, surprisingly Toronto offers a glimmer of hope. The price to income ratio is a third of Vancouver and it is also seeing plenty of job growth. If they aren’t as fussy about their idea of urban life, they can make a cross-country journey to Nova Scotia where the median home price is ridiculously lower at just over a quarter of a million. And they still get to live on the ocean, although it is the Atlantic, not the Pacific.

5. Renting Stifles Saving

While the generations before them had a simple strategy to rent to save for a home, millennials in Vancouver aren’t faring so well when it comes to this plan. Sadly, rent in Vancouver is just as challenging as a mortgage, with an average rise of 10 percent each year. One in five Vancouver renters is spending more than 50 percent of their income on rent, with no relief in sight. This includes follow through on government promises to provide $40 billion in funds towards housing.

Millennials are faced with affordable housing challenges that are keeping them from saving. Even if the money does get doled out from the government, it is a national amount and won’t provide enough to lessen the rent woes of Vancouverites thanks to climbing land values in the area.

6. Multi-Generational Living Saving the Day

According to the Millennial Report, one thing that might be saving millennials from going broke, while also reducing their need to buy a home, is multi-generational living. This trend is finding more and more millennials either staying home with their parents or moving back home. This includes married couples and couples with kids. In some cases, they buy into the family home, and in other cases, they contribute financially.

Either way, they are reducing their cost of living, while supporting their parents as they age. From basement apartments to “laneway” homes, every square inch offers the opportunity to keep this trend alive. In fact, in many cases, it is the aging parents who move to the smaller space leaving room for the next generation or two to begin their lives. It is a win-win for both generations as parents reduce their financial burden, have assistance with living as they age and also avoid downsizing and leaving the home they love.

7. Multi-Purpose Home Ownership

The Millennial report also mentions millennials are starting to look for economy sharing opportunities to afford their homes. This can include renting a room or space in their home or offering their home for rent on platforms such as Airbnb. In fact, the roommate concept is also becoming more popular as people strive to find innovative ways to pay their mortgages. The report notes, “Millennials value real estate as an investment, but the added bonus of sharing their homes works well to address sociability. It also helps them save money, getting them into their ‘forever home’ sooner, and could generate income.”

8. Co-Ownership

Instead of dealing with tenants who might not be as respectful of a home, or harder to pin down to pay rent on time, co-owning real estate with another person or persons is becoming a popular choice. Millennials (and seniors for that matter) are looking at family, spouse, friends and even strangers to share the cost of homeownership as well as their living space. This approach is allowing people to get into the real estate market without the burden of providing a down payment or paying mortgage payments alone. It can also make it easier to qualify for a mortgage when more incomes are involved.

People also share maintenance costs making it easier to manage unexpected repairs when they arise. There are risks with this plan as well. “Co-owners should consider hiring a lawyer to draft a formal agreement for them – it will likely not be needed until there is a hiccup in the relationship, but if there is a dispute, the agreement will be vitally important to resolving the dispute,” says Samantha Gale, CEO of the Canadian Mortgage Brokers Association.

While some of these trends are keeping millennials from reaching their goal of homeownership, many more are simply reinventing the route they have to take to get there.

If you would like help finding a strategy for homeownership in Vancouver, speak to our experienced team today.

The post 8 Challenges and Trends Affecting Millennial Home Ownership appeared first on Guide Your Home.



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8 Challenges and Trends Affecting Millennial Home Ownership

The Vancouver real estate market is pretty unforgiving when it comes to the young and lower income buyer. One of the hardest hit by home prices is the millennials, those aged 23 to 38 who are missing out on some of the “givens” generations before them enjoyed. One of the biggest influencers that can keep millennials out of the market is that people are living to ripe old ages, which in turn keeps their homes off the market.

Add to this the trend to age in place, and inventory in cities like Vancouver and Toronto suffer. However, there are quite a few challenges and trends that are keeping millennials from buying a home in Vancouver. Here are eight of the most influential facts affecting millennials and the trends that are changing their idea of homeownership.

1. The Age of First-time Buyers has Risen

Today the average age for a first-time buyer is 36, much higher than generations before. Most homeowners today were just 30 when they bought their homes. In Vancouver, millennials have a double whammy affecting their home buying abilities: It takes them longer to save for a home due to sky-high prices, and wages have not grown much during their years of employment. Hence, they are older than their parents when they can finally afford a home.

2. Parents are Helping with Purchases

According to the BC Notaries Association, about 90 percent of first-time buyers in B.C. borrowed or were given money from their parents so they could qualify for a mortgage. This has a lot to do with the stress test introduced by the federal government to make it more difficult for buyers to qualify for a mortgage. Their hope was to counter national home price inflation as it was posing a threat to the national economy. Why? It was raising the number of Canadians burdened with heavy debt. Because millennials have limited equity due to salary stagnation, their parents are the bank of choice today, at least when it comes to raising money for their down payments.

3. Vancouver Home and Income Gap

According to Statistics Canada, the Vancouver metro region has the unfortunate claim as the highest “value-to-income ratio.” This unpleasant title shows the disparity between average salaries in Vancouver and the cost to buy a home. In Vancouver, property values were nine times greater than the income of owners. Clearly, this is a very challenging trend millennials are facing today.

4. To Move or Not to Move

Many millennials will have to decide whether they stay in Vancouver or move to a more affordable city. If they aren’t willing to give up the urban lifestyle they love, surprisingly Toronto offers a glimmer of hope. The price to income ratio is a third of Vancouver and it is also seeing plenty of job growth. If they aren’t as fussy about their idea of urban life, they can make a cross-country journey to Nova Scotia where the median home price is ridiculously lower at just over a quarter of a million. And they still get to live on the ocean, although it is the Atlantic, not the Pacific.

5. Renting Stifles Saving

While the generations before them had a simple strategy to rent to save for a home, millennials in Vancouver aren’t faring so well when it comes to this plan. Sadly, rent in Vancouver is just as challenging as a mortgage, with an average rise of 10 percent each year. One in five Vancouver renters is spending more than 50 percent of their income on rent, with no relief in sight. This includes follow through on government promises to provide $40 billion in funds towards housing.

Millennials are faced with affordable housing challenges that are keeping them from saving. Even if the money does get doled out from the government, it is a national amount and won’t provide enough to lessen the rent woes of Vancouverites thanks to climbing land values in the area.

6. Multi-Generational Living Saving the Day

According to the Millennial Report, one thing that might be saving millennials from going broke, while also reducing their need to buy a home, is multi-generational living. This trend is finding more and more millennials either staying home with their parents or moving back home. This includes married couples and couples with kids. In some cases, they buy into the family home, and in other cases, they contribute financially.

Either way, they are reducing their cost of living, while supporting their parents as they age. From basement apartments to “laneway” homes, every square inch offers the opportunity to keep this trend alive. In fact, in many cases, it is the aging parents who move to the smaller space leaving room for the next generation or two to begin their lives. It is a win-win for both generations as parents reduce their financial burden, have assistance with living as they age and also avoid downsizing and leaving the home they love.

7. Multi-Purpose Home Ownership

The Millennial report also mentions millennials are starting to look for economy sharing opportunities to afford their homes. This can include renting a room or space in their home or offering their home for rent on platforms such as Airbnb. In fact, the roommate concept is also becoming more popular as people strive to find innovative ways to pay their mortgages. The report notes, “Millennials value real estate as an investment, but the added bonus of sharing their homes works well to address sociability. It also helps them save money, getting them into their ‘forever home’ sooner, and could generate income.”

8. Co-Ownership

Instead of dealing with tenants who might not be as respectful of a home, or harder to pin down to pay rent on time, co-owning real estate with another person or persons is becoming a popular choice. Millennials (and seniors for that matter) are looking at family, spouse, friends and even strangers to share the cost of homeownership as well as their living space. This approach is allowing people to get into the real estate market without the burden of providing a down payment or paying mortgage payments alone. It can also make it easier to qualify for a mortgage when more incomes are involved.

People also share maintenance costs making it easier to manage unexpected repairs when they arise. There are risks with this plan as well. “Co-owners should consider hiring a lawyer to draft a formal agreement for them – it will likely not be needed until there is a hiccup in the relationship, but if there is a dispute, the agreement will be vitally important to resolving the dispute,” says Samantha Gale, CEO of the Canadian Mortgage Brokers Association.

While some of these trends are keeping millennials from reaching their goal of homeownership, many more are simply reinventing the route they have to take to get there.

If you would like help finding a strategy for homeownership in Vancouver, speak to our experienced team today.

The post 8 Challenges and Trends Affecting Millennial Home Ownership appeared first on Guide Your Home.



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En photos : cinq maisons à plus d’un million dans l’Est métropolitain - Métro Montréal

En photos : cinq maisons à plus d’un million dans l’Est métropolitain  Métro Montréal

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Ancien site de Radio-Canada: Pas encore de permis pour les condos - Le Journal de Montréal

Ancien site de Radio-Canada: Pas encore de permis pour les condos  Le Journal de Montréal

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vendredi 28 février 2020

Le 281 à Montréal va officiellement fermer ses portes en septembre 2020 - Narcity Québec

Le 281 à Montréal va officiellement fermer ses portes en septembre 2020  Narcity Québec

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En photos : cinq maisons à plus d’un million dans l’Est métropolitain - Métro Montréal

En photos : cinq maisons à plus d’un million dans l’Est métropolitain  Métro Montréal

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Un appartement disponible pour 1,3 million - Le Journal de Montréal

Un appartement disponible pour 1,3 million  Le Journal de Montréal

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Ancien site de Radio-Canada: Pas encore de permis pour les condos - Le Journal de Montréal

Ancien site de Radio-Canada: Pas encore de permis pour les condos  Le Journal de Montréal

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Habitat 67 à Montréal a un appartement à vendre et ça va te faire rêver (Photos) - Narcity Québec

Habitat 67 à Montréal a un appartement à vendre et ça va te faire rêver (Photos)  Narcity Québec

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Le sonneur d'alerte Ken Pereira dit ne plus pouvoir travailler - Le Journal de Montréal

Le sonneur d'alerte Ken Pereira dit ne plus pouvoir travailler  Le Journal de Montréal

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Un projet immobilier dans un secteur patrimonial du centre-ville fera l’objet d’une consultation publique - Métro Montréal

Un projet immobilier dans un secteur patrimonial du centre-ville fera l’objet d’une consultation publique  Métro Montréal

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Montréal a perdu beaucoup de résidants au profit des régions adjacentes - LesAffaires.com

Montréal a perdu beaucoup de résidants au profit des régions adjacentes  LesAffaires.com

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Ancien site de Radio-Canada: Pas encore de permis pour les condos - Le Journal de Montréal

Ancien site de Radio-Canada: Pas encore de permis pour les condos  Le Journal de Montréal

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Conseils pour trouver rapidement un appartement à louer à Lyon

En raison du bassin de l’emploi florissant à Lyon et du cadre de vie agréable, vous souhaitez y emménager et recherchez un appartement à...

The post Conseils pour trouver rapidement un appartement à louer à Lyon appeared first on Blogue Immobilier : conseils et astuces.



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Blogue Immobilier

Ontario passes Trust in Real Estate Services Act

The Ontario Government has passed the Trust in Real Estate Service Act, 2019 (TRESA), and was announced at the Ontario Real Estate Association’s REALiTY Conference and AGM by new OREA President



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Canadians are struggling to save, according to new poll

Finding a balance between spending now and saving for later is proving difficult for most Canadians



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BoC rate hold remains highly likely – economists

Multiple economic and geopolitical pressures will weigh upon the central bank’s meeting next week



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CAPREIT 2019 point to sustained strength of apartments

The value of the asset class is especially apparent in Canada’s leading urban markets



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Why Is Toronto Real Estate So Expensive?

The Toronto real estate market has become one of the most exciting markets to watch, if you’re into that sort of thing. Although Toronto real estate saw a sharp spike in 2016/2017 which had buyers shouting “foul” because they were getting priced out of the market, Toronto continues to keep rebounding and not really seeing the bubble burst.

While 2018 saw dips and a slowdown in purchases in the early months, spring saw a return to the natural rhythm of the real estate market and now Toronto is being called one of the most overvalued cities in the world. So why is Toronto real estate so expensive? There are many things contributing to the city’s high housing prices.

2017: A Review

Unless you were living under a rock back in 2017, even those not interested in the real estate market would have heard that the real estate market at that time was beyond crazy. In fact, in April 2017 a Financial Post article reported that the average sale price skyrocketed with a record increase of 33 per cent from the previous year, and the average cost for a detached home reaching a startling $1.6 million in downtown’s most desirable neighbourhoods.

Those prices weren’t limited to the downtown core but reached the surrounding suburbs as well, where they too increase by a third across all categories. Despite these prices, demand continued to rise and the number of listings declined. So, across the entire GTA prices rose from an average of $688,011 a year earlier to $916,567. At the time, the increases were attributed to a lack of land for development, but in reality that wasn’t the case. Now, as we enter 2020 we are still seeing high prices, with the average GTA home priced at $839,363, as reported by the Toronto Regional Real Estate Board (TRREB) in January.

2020 Price Drivers

Today as we head into the final month of the first quarter of 2020, Jason Mercer, TRREB’s Director of Market Analysis and Service Channels has some insights to share. “A key difference in the price growth story in January 2020 compared to January 2019 was in the low-rise market segments, particularly with regard to detached houses,” he says. “A year seems to have made a big difference. It is clear that many buyers who were on the sidelines due to the OSFI mortgage stress test are moving back into the market, driving very strong year-over-year sales growth in the detached segment.” He also says that Toronto’s constrained housing supply is a major factor that will continue to prompt rising prices.

“We started 2020 where 2019 left off, with very strong growth in the number of sales up against a continued dip in the number of new and available listings,” explains TRREB President Michael Collins. “Tighter market conditions compared to a year ago resulted in much stronger growth in average selling prices.”

As well, Collins says there are three things underpinning competition between buyers:

  1. Steady population growth
  2. Low unemployment
  3. Low borrowing costs

This is contributing to the price increase.

Low Interest Rates

Low interest rates are a good thing for consumers, but what about the real estate market? A recent Financial Post article notes that Bank of Canada governor Stephen Poloz said it might consider another interest rate cut due to a weakening Canadian economy. However, this could open the market up to even more buyers which will allow Toronto prices to continue to rise. Why? More buyers means less inventory. So, to answer the question “are lower rates good to the real estate market?” the answer is no, if you are a buyer.

The big five banks have already lowered mortgage rates which will start to entice more buyers. But this is not good. “The last thing the market needs right now is any policy move that would tighten things up even more — be it by restricting supply, or more importantly, by stimulating demand,” reports RBC senior economist Robert Hogue.

Low Inventory Contributors

There are a number of things that are contributing to a lower inventory on Toronto real estate right now. First, as mentioned population growth is bringing new buyers into the GTA. Second, a low unemployment rate is bringing more buyers to the table because incomes are improving for many households. Third, low interest rates make mortgage payments less-imposing for many potential buyers. One other factor causing a rift, is a reboot of the natural life patterns that has changed home-ownership habits.

One of the biggest contributors to real estate inventory has always been the changing housing needs of the aging population. As parents and grandparents sold their homes to downsize in retirement or passed away, their homes were added to the inventory. However, today’s baby boomers and their parents live longer. Longer life means a longer stay in their homes.

But there’s more to it than that. Another growing trend is the choice to “age in place.” This term was coined to describe the decision for those in their late 40s and early 50s to look at how they can adapt their homes for a number of eventualities including:

  • Making room for their aging parents by investing in in-law suites in their homes
  • Adapting their homes to meet the changing needs of potential mobility and health issues

These decisions are keeping older people in their homes, and younger people out of the housing market as there are fewer homes available.

Real Estate Investors

More people are deciding to invest in real estate as they try to benefit from a shortage of rental properties in the city. Condos are being bought up to provide rental homes for GTA tenants desperate to find a home.

According to Statistics Canada, 37.9 per cent of Toronto condos are not owner-occupied. More people are viewing condos as an investment property which is a problem according to Andy Yan, the director of the City Program at Simon Fraser University in Vancouver. This is because the purpose of condos has changed. As well, Toronto has failed to create purpose-built rental housing over several decades which has led to a shortage of rental inventory.

The lack of purpose-built rentals has forced Torontonians to seek secondary housing market rentals, hence the boost in condo purchases by new investors. This in hand with limited inventory, to begin with, will continue to inflate condo prices. Further proof this is the case, a report showed condo rents rose by 30 per cent between 2006 and 2018.

A Few More Issues for GTA Real Estate

Other potential contributors to price growth in GTA area housing markets include:

  • Money laundering from foreign and domestic buyers
  • More businesses being attracted to Toronto’s thriving economy and talent pool
  • Control of inventory by housing developers limiting the number of new homes and types of homes available
  • A focus on building more small bachelor and one-bedroom units over family-sized condos

So, there you have it. Toronto housing price growth will continue as long as:

  • Interest rates remain low
  • More businesses move to the city to provide more jobs
  • More boomers and zoomers age in place
  • More amateur investors continue to buy up condos AND (drum roll please…)
  • All of these factors combine to keep inventory numbers low, low, low

“Some of Canada’s housing markets are facing serious challenges,” says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX of Ontario-Atlantic Canada. “We won’t see significant change unless inventory levels are addressed in hot markets like Toronto, and in many of Canada’s urban centres. We need to continue to push for housing affordability, as well as an increase in housing supply for buyers and renters, but we have yet to see a comprehensive national housing strategy to help facilitate this shift.”

If you would like more information on Toronto real estate, reach out to a RE/MAX agent today.

The post Why Is Toronto Real Estate So Expensive? appeared first on Guide Your Home.



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RE/MAX Canada

Why Is Toronto Real Estate So Expensive?

The Toronto real estate market has become one of the most exciting markets to watch, if you’re into that sort of thing. Although Toronto real estate saw a sharp spike in 2016/2017 which had buyers shouting “foul” because they were getting priced out of the market, Toronto continues to keep rebounding and not really seeing the bubble burst.

While 2018 saw dips and a slowdown in purchases in the early months, spring saw a return to the natural rhythm of the real estate market and now Toronto is being called one of the most overvalued cities in the world. So why is Toronto real estate so expensive? There are many things contributing to the city’s high housing prices.

2017: A Review

Unless you were living under a rock back in 2017, even those not interested in the real estate market would have heard that the real estate market at that time was beyond crazy. In fact, in April 2017 a Financial Post article reported that the average sale price skyrocketed with a record increase of 33 per cent from the previous year, and the average cost for a detached home reaching a startling $1.6 million in downtown’s most desirable neighbourhoods.

Those prices weren’t limited to the downtown core but reached the surrounding suburbs as well, where they too increase by a third across all categories. Despite these prices, demand continued to rise and the number of listings declined. So, across the entire GTA prices rose from an average of $688,011 a year earlier to $916,567. At the time, the increases were attributed to a lack of land for development, but in reality that wasn’t the case. Now, as we enter 2020 we are still seeing high prices, with the average GTA home priced at $839,363, as reported by the Toronto Regional Real Estate Board (TRREB) in January.

2020 Price Drivers

Today as we head into the final month of the first quarter of 2020, Jason Mercer, TRREB’s Director of Market Analysis and Service Channels has some insights to share. “A key difference in the price growth story in January 2020 compared to January 2019 was in the low-rise market segments, particularly with regard to detached houses,” he says. “A year seems to have made a big difference. It is clear that many buyers who were on the sidelines due to the OSFI mortgage stress test are moving back into the market, driving very strong year-over-year sales growth in the detached segment.” He also says that Toronto’s constrained housing supply is a major factor that will continue to prompt rising prices.

“We started 2020 where 2019 left off, with very strong growth in the number of sales up against a continued dip in the number of new and available listings,” explains TRREB President Michael Collins. “Tighter market conditions compared to a year ago resulted in much stronger growth in average selling prices.”

As well, Collins says there are three things underpinning competition between buyers:

  1. Steady population growth
  2. Low unemployment
  3. Low borrowing costs

This is contributing to the price increase.

Low Interest Rates

Low interest rates are a good thing for consumers, but what about the real estate market? A recent Financial Post article notes that Bank of Canada governor Stephen Poloz said it might consider another interest rate cut due to a weakening Canadian economy. However, this could open the market up to even more buyers which will allow Toronto prices to continue to rise. Why? More buyers means less inventory. So, to answer the question “are lower rates good to the real estate market?” the answer is no, if you are a buyer.

The big five banks have already lowered mortgage rates which will start to entice more buyers. But this is not good. “The last thing the market needs right now is any policy move that would tighten things up even more — be it by restricting supply, or more importantly, by stimulating demand,” reports RBC senior economist Robert Hogue.

Low Inventory Contributors

There are a number of things that are contributing to a lower inventory on Toronto real estate right now. First, as mentioned population growth is bringing new buyers into the GTA. Second, a low unemployment rate is bringing more buyers to the table because incomes are improving for many households. Third, low interest rates make mortgage payments less-imposing for many potential buyers. One other factor causing a rift, is a reboot of the natural life patterns that has changed home-ownership habits.

One of the biggest contributors to real estate inventory has always been the changing housing needs of the aging population. As parents and grandparents sold their homes to downsize in retirement or passed away, their homes were added to the inventory. However, today’s baby boomers and their parents live longer. Longer life means a longer stay in their homes.

But there’s more to it than that. Another growing trend is the choice to “age in place.” This term was coined to describe the decision for those in their late 40s and early 50s to look at how they can adapt their homes for a number of eventualities including:

  • Making room for their aging parents by investing in in-law suites in their homes
  • Adapting their homes to meet the changing needs of potential mobility and health issues

These decisions are keeping older people in their homes, and younger people out of the housing market as there are fewer homes available.

Real Estate Investors

More people are deciding to invest in real estate as they try to benefit from a shortage of rental properties in the city. Condos are being bought up to provide rental homes for GTA tenants desperate to find a home.

According to Statistics Canada, 37.9 per cent of Toronto condos are not owner-occupied. More people are viewing condos as an investment property which is a problem according to Andy Yan, the director of the City Program at Simon Fraser University in Vancouver. This is because the purpose of condos has changed. As well, Toronto has failed to create purpose-built rental housing over several decades which has led to a shortage of rental inventory.

The lack of purpose-built rentals has forced Torontonians to seek secondary housing market rentals, hence the boost in condo purchases by new investors. This in hand with limited inventory, to begin with, will continue to inflate condo prices. Further proof this is the case, a report showed condo rents rose by 30 per cent between 2006 and 2018.

A Few More Issues for GTA Real Estate

Other potential contributors to price growth in GTA area housing markets include:

  • Money laundering from foreign and domestic buyers
  • More businesses being attracted to Toronto’s thriving economy and talent pool
  • Control of inventory by housing developers limiting the number of new homes and types of homes available
  • A focus on building more small bachelor and one-bedroom units over family-sized condos

So, there you have it. Toronto housing price growth will continue as long as:

  • Interest rates remain low
  • More businesses move to the city to provide more jobs
  • More boomers and zoomers age in place
  • More amateur investors continue to buy up condos AND (drum roll please…)
  • All of these factors combine to keep inventory numbers low, low, low

“Some of Canada’s housing markets are facing serious challenges,” says Christopher Alexander, Executive Vice President and Regional Director, RE/MAX of Ontario-Atlantic Canada. “We won’t see significant change unless inventory levels are addressed in hot markets like Toronto, and in many of Canada’s urban centres. We need to continue to push for housing affordability, as well as an increase in housing supply for buyers and renters, but we have yet to see a comprehensive national housing strategy to help facilitate this shift.”

If you would like more information on Toronto real estate, reach out to a RE/MAX agent today.

The post Why Is Toronto Real Estate So Expensive? appeared first on Guide Your Home.



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Ancien site de Radio-Canada: Pas encore de permis pour les condos - Le Journal de Montréal

Ancien site de Radio-Canada: Pas encore de permis pour les condos  Le Journal de Montréal

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Projet relancé: Le Massif développera 400 unités d'hébergement - Le Journal de Montréal

Projet relancé: Le Massif développera 400 unités d'hébergement  Le Journal de Montréal

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jeudi 27 février 2020

Un projet immobilier dans un secteur patrimonial du centre-ville fera l’objet d’une consultation publique - Métro Montréal

Un projet immobilier dans un secteur patrimonial du centre-ville fera l’objet d’une consultation publique  Métro Montréal

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Ancien site de Radio-Canada: Pas encore de permis pour les condos - Le Journal de Montréal

Ancien site de Radio-Canada: Pas encore de permis pour les condos  Le Journal de Montréal

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Projet immobilier relancé: Le Massif développera 400 unités d'hébergement - Le Journal de Montréal

Projet immobilier relancé: Le Massif développera 400 unités d'hébergement  Le Journal de Montréal

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Parts de marché hypothécaire: Desjardins domine, BNC en hausse

BLOGUE INVITÉ. En 2019, plus de 246 000 hypothèques (sur propriétés résidentielles ou autre) ont été publiées au Registre ...

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Joanie Fontaine

Le fameux bar de danseurs 281 à Montréal va fermer ses portes - Narcity Québec

Le fameux bar de danseurs 281 à Montréal va fermer ses portes  Narcity Québec

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Ontario realtors make multi-million dollar donation

The money will go toward shelter-based organizations across the province, to help families find homes and get Canadians out of the cold in times of need



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OREA appoints Sean Morrison as its new president

The Burlington-based veteran broker will be taking the helm as the association marches on into 2020



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January was a stronger-than-average month for GTA’s new home sales

This is largely due to greater confidence among buyers and investors alike



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IT execs, wealthy families driving Ottawa’s luxury housing market

The city’s overall quality of life is cited as a major attraction



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What are the Most Popular Types of Real Estate Ownership?

While the term real estate is familiar to most people, understanding the intricacies of what the term encompasses might be a different matter. Real estate is a type of property that can include different land, buildings, or both. It is a tangible asset that is owned or leased and depending on the nature of your lease or ownership, you’ll have certain rights to use and enjoy the land and its buildings.

People purchase or lease real estate for different purposes including as a principal place of residence, a vacation home, an investment, commercial purposes and a rental property. Here we dive a little deeper into what real estate is, the different types of real estate and the benefits it offers.

Types of Real Estate

In general, there are three categories of real estate:

  1. Residential real estate can be single-family or multi-family dwellings that are owned or rented by individuals and include undeveloped land, houses, condominiums, and townhouses. Their sole intent is providing a home.
  2. Commercial real estate includes nonresidential structures intended for business use which can be a single-use property such as a small shop, restaurant or doctor’s office, or a multi-purpose structure such as shopping centers or office towers. Properties include office buildings, warehouses, and retail buildings.
  3. Industrial real estate includes factories, business parks, mines, and farms.

So basically, the type of real estate is based on the purpose it serves whether that is a home, to generate revenue or to produce a product.

Residential Real Estate Ownership

Residential property provides the opportunity for homeownership. When buying a home to live in, your property is considered to be owner-occupied. Residential properties allow you to build equity and gain wealth. That’s always a good thing. Most homeowners acquire their homes through a mortgage, a loan specific to real estate. Residential properties can also be purchased as rental properties to earn income.

Commercial Real Estate Ownership

Commercial real estate is used for business purposes from shopping malls to skyscrapers and freestanding shops to houses converted for business use. The difference between commercial and industrial properties is that it is intended for “commerce” while industrial space is used for manufacturing products. Although multifamily buildings such as high-rise apartments do generate money for their owners, they aren’t considered commercial properties.

Real Estate Investment

Investing in real estate can prove to be very lucrative, as almost all properties tend to appreciate over time. As well when purchasing properties for lease you can often not only regain the money you pay for the property from rent but also continue to generate gains as the property appreciates in value. There are several ways you can invest in real estate including:

  • Buying tracts of land
  • Buying structures
  • Buying shares in real estate through publicly traded real estate investment trusts (REITs)
  • Buying mortgage-backed securities (MBS)

The benefit of real estate investment is that it takes severe market issues such as a major recession, for properties to depreciate. There can also be other unexpected factors such as investing in “swamp” land, which would greatly reduce your odds of reselling the land for profit.

Land is not likely to make any gains if it is lacking purpose or is not located in an area where demand is likely to increase. Both at the time of buying and the time of selling, investment value is dictated by a number of factors including the local economy, employment rates, local transportation, the availability and quality of municipal services, property taxes and even the quality of schools if investing in residential properties.

Benefits of Owning Property

The main benefit of owning property is the fact that in most cases, if you buy at the right price, your property will tend to appreciate. The trick is to ensure you never pay more for a property than the fair market value, the average price properties are selling for in the area. This price can vary greatly, even for neighbourhoods a few kilometers away. So, working with a real estate agent who understands property values in a specific area is very important as they will guide you on true values and negotiate a price that makes sense.

For example, if you had purchased a home in Toronto or Vancouver around 2015 in a high demand downtown neighbourhood, chances are you overpaid for your home at the time.

Pros and Cons of Real Estate Investment

The pros of owning investment properties include:

  • If you find and maintain steady tenants, it will generate steady income
  • In most cases, you enjoy capital appreciation
  • It is an excellent way to diversify your portfolio
  • It can be bought with leverage
  • Can pay for itself and then become strictly profit generating
  • If rented, your tenants pay for the property, eventually making the property strictly an income generator
  • There are also cons to property investment including:
  • It is not liquid
  • There can be influences that will greatly reduce value making it difficult to sell
  • It does require larger upfront capital unless you choose REITs or MBSs
  • Requires management of some type even if just basic maintenance unless REITs or MBSs

Of course, the type of real estate you buy impacts the pros and cons.

Understanding Real Estate Appreciation

Appreciation in real estate builds over time, starting from the time of your purchase. For example, if you buy a home in Toronto for up to $500,000 (very unlikely, but this is for simple math purposes) in value all you need for a down payment is 5%. So, your down payment amount for your personal property is considered equity because you own that part of the property out and out. The average increase in home prices in Toronto rose 12.3% from January 2019 to January 2020. So, in a year, if you sold your home, you would have gained $150,000, which includes the $25,000 for your down payment, plus the $125,000 roughly gained in appreciation. Factors such as interest rates determine how quickly equity builds.

The best way to see gains in real estate is to find a neighbourhood in the “gentrification” stage where homes are still selling at lower prices in a less trendy or developed area. As people catch on the neighbourhood has potential, they begin to buy homes in the area that attracts trendier cafés, restaurants, shops and services. This increases the value of your property.

For commercial properties such as vacant land, prices can skyrocket if a natural resource is discovered such as oil. Office space can rise in price as a city begins to attract a certain industry such as tech companies that increases the demand for office space.

Regardless of the type of real estate, appreciation also rises based on basic rules of supply and demand, so the lower the inventory available in the real estate market, the higher the prices.

If you are shopping for real estate whether it is commercial or residential, the experts at RE/Max can help.

The post What are the Most Popular Types of Real Estate Ownership? appeared first on Guide You Home.



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RE/MAX Canada

What are the Most Popular Types of Real Estate Ownership?

While the term real estate is familiar to most people, understanding the intricacies of what the term encompasses might be a different matter. Real estate is a type of property that can include different land, buildings, or both. It is a tangible asset that is owned or leased and depending on the nature of your lease or ownership, you’ll have certain rights to use and enjoy the land and its buildings.

People purchase or lease real estate for different purposes including as a principal place of residence, a vacation home, an investment, commercial purposes and a rental property. Here we dive a little deeper into what real estate is, the different types of real estate and the benefits it offers.

Types of Real Estate

In general, there are three categories of real estate:

  1. Residential real estate can be single-family or multi-family dwellings that are owned or rented by individuals and include undeveloped land, houses, condominiums, and townhouses. Their sole intent is providing a home.
  2. Commercial real estate includes nonresidential structures intended for business use which can be a single-use property such as a small shop, restaurant or doctor’s office, or a multi-purpose structure such as shopping centers or office towers. Properties include office buildings, warehouses, and retail buildings.
  3. Industrial real estate includes factories, business parks, mines, and farms.

So basically, the type of real estate is based on the purpose it serves whether that is a home, to generate revenue or to produce a product.

Residential Real Estate Ownership

Residential property provides the opportunity for homeownership. When buying a home to live in, your property is considered to be owner-occupied. Residential properties allow you to build equity and gain wealth. That’s always a good thing. Most homeowners acquire their homes through a mortgage, a loan specific to real estate. Residential properties can also be purchased as rental properties to earn income.

Commercial Real Estate Ownership

Commercial real estate is used for business purposes from shopping malls to skyscrapers and freestanding shops to houses converted for business use. The difference between commercial and industrial properties is that it is intended for “commerce” while industrial space is used for manufacturing products. Although multifamily buildings such as high-rise apartments do generate money for their owners, they aren’t considered commercial properties.

Real Estate Investment

Investing in real estate can prove to be very lucrative, as almost all properties tend to appreciate over time. As well when purchasing properties for lease you can often not only regain the money you pay for the property from rent but also continue to generate gains as the property appreciates in value. There are several ways you can invest in real estate including:

  • Buying tracts of land
  • Buying structures
  • Buying shares in real estate through publicly traded real estate investment trusts (REITs)
  • Buying mortgage-backed securities (MBS)

The benefit of real estate investment is that it takes severe market issues such as a major recession, for properties to depreciate. There can also be other unexpected factors such as investing in “swamp” land, which would greatly reduce your odds of reselling the land for profit.

Land is not likely to make any gains if it is lacking purpose or is not located in an area where demand is likely to increase. Both at the time of buying and the time of selling, investment value is dictated by a number of factors including the local economy, employment rates, local transportation, the availability and quality of municipal services, property taxes and even the quality of schools if investing in residential properties.

Benefits of Owning Property

The main benefit of owning property is the fact that in most cases, if you buy at the right price, your property will tend to appreciate. The trick is to ensure you never pay more for a property than the fair market value, the average price properties are selling for in the area. This price can vary greatly, even for neighbourhoods a few kilometers away. So, working with a real estate agent who understands property values in a specific area is very important as they will guide you on true values and negotiate a price that makes sense.

For example, if you had purchased a home in Toronto or Vancouver around 2015 in a high demand downtown neighbourhood, chances are you overpaid for your home at the time.

Pros and Cons of Real Estate Investment

The pros of owning investment properties include:

  • If you find and maintain steady tenants, it will generate steady income
  • In most cases, you enjoy capital appreciation
  • It is an excellent way to diversify your portfolio
  • It can be bought with leverage
  • Can pay for itself and then become strictly profit generating
  • If rented, your tenants pay for the property, eventually making the property strictly an income generator
  • There are also cons to property investment including:
  • It is not liquid
  • There can be influences that will greatly reduce value making it difficult to sell
  • It does require larger upfront capital unless you choose REITs or MBSs
  • Requires management of some type even if just basic maintenance unless REITs or MBSs

Of course, the type of real estate you buy impacts the pros and cons.

Understanding Real Estate Appreciation

Appreciation in real estate builds over time, starting from the time of your purchase. For example, if you buy a home in Toronto for up to $500,000 (very unlikely, but this is for simple math purposes) in value all you need for a down payment is 5%. So, your down payment amount for your personal property is considered equity because you own that part of the property out and out. The average increase in home prices in Toronto rose 12.3% from January 2019 to January 2020. So, in a year, if you sold your home, you would have gained $150,000, which includes the $25,000 for your down payment, plus the $125,000 roughly gained in appreciation. Factors such as interest rates determine how quickly equity builds.

The best way to see gains in real estate is to find a neighbourhood in the “gentrification” stage where homes are still selling at lower prices in a less trendy or developed area. As people catch on the neighbourhood has potential, they begin to buy homes in the area that attracts trendier cafés, restaurants, shops and services. This increases the value of your property.

For commercial properties such as vacant land, prices can skyrocket if a natural resource is discovered such as oil. Office space can rise in price as a city begins to attract a certain industry such as tech companies that increases the demand for office space.

Regardless of the type of real estate, appreciation also rises based on basic rules of supply and demand, so the lower the inventory available in the real estate market, the higher the prices.

If you are shopping for real estate whether it is commercial or residential, the experts at RE/Max can help.

The post What are the Most Popular Types of Real Estate Ownership? appeared first on Guide You Home.



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RE/MAX Canada

La mairesse Plante demande le prolongement de la ligne orange - La Presse

La mairesse Plante demande le prolongement de la ligne orange  La Presse

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La Romandie et le secteur immobilier

La Suisse peut s’enorgueillir d’avoir sur son sol des entreprises qui sont particulièrement performantes. Parmi celles-ci on trouve la société Edifea, spécialisée dans les...

The post La Romandie et le secteur immobilier appeared first on Blogue Immobilier : conseils et astuces.



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Blogue Immobilier

mercredi 26 février 2020

Ancien site de Radio-Canada: Pas encore de permis pour les condos - Le Journal de Montréal

Ancien site de Radio-Canada: Pas encore de permis pour les condos  Le Journal de Montréal

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En photos : cinq maisons à plus d’un million dans l’Est métropolitain - Métro Montréal

En photos : cinq maisons à plus d’un million dans l’Est métropolitain  Métro Montréal

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Building Generational Wealth by Buying Real Estate

Real estate is how many of the world’s richest people became wealthy. It’s also likely how their children and their children’s children got rich. In fact, huge empires have been built from a single property purchase. American author Mark Twain once said “Buy land. They’re not making it anymore.” By that logic, real estate will always be in high demand. Building generational wealth by buying real estate is not a new strategy, nor is it reserved for the rich.

Long before stocks, bonds and bitcoin, people aspired to own land, and many still do. According to a recent survey conducted by Leger on behalf of RE/MAX Canada, 51 per cent of Canadians are considering a buying a home in the next five years. This is up from 36 per cent one year prior. While Canadian housing markets have experienced their ups and downs in recent years, increased consumer confidence could be a key factor impacting the housing market in 2020.

Risks and rewards of real estate investing

Like all investments, real estate comes with some risks.

Financing

Unlike other types of investments which require 100 per cent of the capital up-front, many real estate investors take out a mortgage in order to buy their investment property. According to Ratehub.ca, properties with one to four dwellings are zoned “residential” so the mortgage application process is similar to that of a principal residence. Alternately, a building with five units or more is zoned “commercial” and the mortgage application process is more complex. Keep in mind that the minimum down payment to purchase a non-owner-occupied income property is 20 per cent.

Regardless of the size of building, or whether you choose to live it in or not, Canada has enjoyed a record-low interest rate environment for the last decade. The low cost of borrowing makes an investment property attractive to those who may not be able to pay for their investment outright, but through their investment strategy expect to be able to carry the mortgage and other ongoing costs, hopefully with some money left over to spend, save or re-invest.

Other factors impacting ROI

A variety of things may impact your real estate investment, including (but not limited to) population growth and housing demand, local and world economies, interest rates, policies such as the mortgage stress test, the foreign buyer tax and vacant land tax, supply of resale homes and the rate of new construction.

But as the saying goes: no risk, no reward.

The good news is that Canadian real estate has historically yielded solid returns when held for the long-term. According to the Canadian Real Estate Association, the average home price in Canada in 1984 was $76,351. Today in some Canadian housing markets like Toronto, that’s what you’ll need just for the down payment. By 1996 the average house price in Canada was $150,899. Now fast-forward to January 2020, where CREA’s latest market data reported an average price of $504,350. Granted, some housing markets see property values increase (or decline) faster than others, but if you bought a home in Canada back in 1984 and you still own it, odds are that you’re in line for a pretty solid return on your initial investment.

As a bonus, few other investment vehicles allow you buy and use your asset while you watch your equity grow. Then, when you sell a principal residence, the income generated is not subject to income tax. Double bonus.

While long-term resale value is one way to make money in real estate, smart investors explore opportunities that allow them to earn now. After all, why not get some help paying off that mortgage?

Building generational wealth by buying real estate

The sale of a principal residence, in the right location and at the right price, can certainly provide enough to boost, if not fully fund, your retirement. But if building generational wealth by buying real estate is your objective, don’t hold your breath for the next 30 years in anticipation of appreciation. Explore how your property can start generating income now and into the future, without you (or your children) having to sell it.

Remember: a single rental property – purchased once, consistently well-maintained and smartly managed – can provide a source of income for generations to come.

Building wealth through rental properties

Want to know how to build wealth in real estate? A positive cash-flowing investment property means renting it out for more than you’re paying in monthly mortgage, condo fees, property insurance, property tax, regular maintenance and those “unexpected” expenses that inevitably arise.

Before buying a property or narrowing down a neighbourhood, smart investors will have researched vacancy rates and average rents. A rising vacancy rate means more homes are available for rent – more competition for the landlord. A falling vacancy rate means there are fewer rental properties to choose from, giving an investment property owner the upper hand. Canada Mortgage and Housing Corporation releases rental reports that provide a good high-level overview. It’s also a good idea to check local rental listings to see what properties are actually renting for.

Evaluating a location’s income potential requires a “bigger picture” perspective. Here are 12 questions to ask, according to Vancouver-based real estate research and consulting firm, Cutting Edge Research Inc.:

  1. Is the average income increasing faster than the provincial average?
  2. Is the population growing faster than the provincial average?
  3. Is the area creating jobs faster than the provincial average?
  4. Does the area have more than one major employer?
  5. Will the area benefit from an economic or real estate ripple effect?
  6. Has the political leadership created an atmosphere conducive to economic growth?
  7. Is the Economic Development Office progressive and helpful?
  8. Is the area’s infrastructure being built to handle the expected growth?
  9. Are there any major transportation improvements in the works?
  10. Is the area attractive to Baby Boomers’ lifestyle?
  11. Is there a short-term problem occurring that may be rectified in the future?
  12. Is there a noted increase in labour and material costs in the area?

Buy, rent, repeat. Pass it on. Sell it eventually… maybe.

Once you’ve landed on a good location, where the economy is chugging, the population is growing and demand is rising, tenants who pay the rent – and your mortgage – will follow. Barring any major upheaval, future generations who inherit the property can continue to earn on your initial investment.

Scottish-American industrialist, philanthropist and billionaire Andre Carnegie famously said that 90% of millionaires become so through real estate. There’s certainly something to this strategy. If you’d like to learn more about how to invest in real estate, contact your RE/MAX agent today.

The post Building Generational Wealth by Buying Real Estate appeared first on Guide You Home.



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Lydia McNutt

Building Generational Wealth by Buying Real Estate

Real estate is how many of the world’s richest people became wealthy. It’s also likely how their children and their children’s children got rich. In fact, huge empires have been built from a single property purchase. American author Mark Twain once said “Buy land. They’re not making it anymore.” By that logic, real estate will always be in high demand. Building generational wealth by buying real estate is not a new strategy, nor is it reserved for the rich.

Long before stocks, bonds and bitcoin, people aspired to own land, and many still do. According to a recent survey conducted by Leger on behalf of RE/MAX Canada, 51 per cent of Canadians are considering a buying a home in the next five years. This is up from 36 per cent one year prior. While Canadian housing markets have experienced their ups and downs in recent years, increased consumer confidence could be a key factor impacting the housing market in 2020.

Risks and rewards of real estate investing

Like all investments, real estate comes with some risks.

Financing

Unlike other types of investments which require 100 per cent of the capital up-front, many real estate investors take out a mortgage in order to buy their investment property. According to Ratehub.ca, properties with one to four dwellings are zoned “residential” so the mortgage application process is similar to that of a principal residence. Alternately, a building with five units or more is zoned “commercial” and the mortgage application process is more complex. Keep in mind that the minimum down payment to purchase a non-owner-occupied income property is 20 per cent.

Regardless of the size of building, or whether you choose to live it in or not, Canada has enjoyed a record-low interest rate environment for the last decade. The low cost of borrowing makes an investment property attractive to those who may not be able to pay for their investment outright, but through their investment strategy expect to be able to carry the mortgage and other ongoing costs, hopefully with some money left over to spend, save or re-invest.

Other factors impacting ROI

A variety of things may impact your real estate investment, including (but not limited to) population growth and housing demand, local and world economies, interest rates, policies such as the mortgage stress test, the foreign buyer tax and vacant land tax, supply of resale homes and the rate of new construction.

But as the saying goes: no risk, no reward.

The good news is that Canadian real estate has historically yielded solid returns when held for the long-term. According to the Canadian Real Estate Association, the average home price in Canada in 1984 was $76,351. Today in some Canadian housing markets like Toronto, that’s what you’ll need just for the down payment. By 1996 the average house price in Canada was $150,899. Now fast-forward to January 2020, where CREA’s latest market data reported an average price of $504,350. Granted, some housing markets see property values increase (or decline) faster than others, but if you bought a home in Canada back in 1984 and you still own it, odds are that you’re in line for a pretty solid return on your initial investment.

As a bonus, few other investment vehicles allow you buy and use your asset while you watch your equity grow. Then, when you sell a principal residence, the income generated is not subject to income tax. Double bonus.

While long-term resale value is one way to make money in real estate, smart investors explore opportunities that allow them to earn now. After all, why not get some help paying off that mortgage?

Building generational wealth by buying real estate

The sale of a principal residence, in the right location and at the right price, can certainly provide enough to boost, if not fully fund, your retirement. But if building generational wealth by buying real estate is your objective, don’t hold your breath for the next 30 years in anticipation of appreciation. Explore how your property can start generating income now and into the future, without you (or your children) having to sell it.

Remember: a single rental property – purchased once, consistently well-maintained and smartly managed – can provide a source of income for generations to come.

Building wealth through rental properties

Want to know how to build wealth in real estate? A positive cash-flowing investment property means renting it out for more than you’re paying in monthly mortgage, condo fees, property insurance, property tax, regular maintenance and those “unexpected” expenses that inevitably arise.

Before buying a property or narrowing down a neighbourhood, smart investors will have researched vacancy rates and average rents. A rising vacancy rate means more homes are available for rent – more competition for the landlord. A falling vacancy rate means there are fewer rental properties to choose from, giving an investment property owner the upper hand. Canada Mortgage and Housing Corporation releases rental reports that provide a good high-level overview. It’s also a good idea to check local rental listings to see what properties are actually renting for.

Evaluating a location’s income potential requires a “bigger picture” perspective. Here are 12 questions to ask, according to Vancouver-based real estate research and consulting firm, Cutting Edge Research Inc.:

  1. Is the average income increasing faster than the provincial average?
  2. Is the population growing faster than the provincial average?
  3. Is the area creating jobs faster than the provincial average?
  4. Does the area have more than one major employer?
  5. Will the area benefit from an economic or real estate ripple effect?
  6. Has the political leadership created an atmosphere conducive to economic growth?
  7. Is the Economic Development Office progressive and helpful?
  8. Is the area’s infrastructure being built to handle the expected growth?
  9. Are there any major transportation improvements in the works?
  10. Is the area attractive to Baby Boomers’ lifestyle?
  11. Is there a short-term problem occurring that may be rectified in the future?
  12. Is there a noted increase in labour and material costs in the area?

Buy, rent, repeat. Pass it on. Sell it eventually… maybe.

Once you’ve landed on a good location, where the economy is chugging, the population is growing and demand is rising, tenants who pay the rent – and your mortgage – will follow. Barring any major upheaval, future generations who inherit the property can continue to earn on your initial investment.

Scottish-American industrialist, philanthropist and billionaire Andre Carnegie famously said that 90% of millionaires become so through real estate. There’s certainly something to this strategy. If you’d like to learn more about how to invest in real estate, contact your RE/MAX agent today.

The post Building Generational Wealth by Buying Real Estate appeared first on Guide You Home.



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Lydia McNutt

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How to Invest in Real Estate in Toronto

Real estate investments offer the chance to build assets that will increase in value and build wealth. Although many people think real estate investors have to be tycoons to get into the real estate market, even average homeowners have their share in the real estate game. Here we explain the different options for investing in Toronto real estate and the reasons real estate can be a good investment, especially in the long-term.

Investing in a Home

This is by far the easiest way to get into the real estate market. You have access to funds to invest in your property via a mortgage, which means as long as you can come up with a down payment, have good credit and steady income, you can probably find a property to purchase, even if it is on the outskirts of the city.

The benefits include:

  • You live in the home, so don’t have additional living costs for rent
  • Owning your primary residence is the best form of “forced savings”
  • Your mortgage payments are smaller incremental investments that build big home equity
  • It provides a tax shelter as your profits are not taxed when you sell your home
  • Your home equity can provide capital to put toward other investments
  • Mortgage interest rates are low now

Buying a home is the most basic form of buying and holding an investment. Buy it, hold onto it, and watch your equity grow.

Buying and Holding

You can apply the buy-and-hold strategy to more than one property. Unless you have millions of dollars sitting around allowing you to carry several mortgages, the easiest way to do this is to invest in rental properties. This is an excellent way to build a real estate portfolio, as you can purchase one or more rental properties and have tenants who generate rental income to pay your mortgage. In this scenario, it’s almost as if your property is mortgage-free.

The trick in Toronto, of course, is buying a rental property you can afford, and that also provides you with enough rent to cover your mortgage. The only problem with rental properties is they require management and maintenance, so you have to ask yourself, “Do I really want to be a landlord?” You can pay property management fees for someone else to do the work, but that eats into your profits.

Condos and Rental Properties

As long as you buy the property for a fair price, have a property that will attract tenants (near transit, affordable compared to other rentals in the area, safe area, near amenities, etc.) and can keep tenants, you can build a respectable portfolio. The only caveat is that you will, of course, need the 20-per-cent down payment for each property and get a mortgage.

Toronto condos are a popular choice, as they have a more affordable purchase price, especially when purchased pre-construction. They also have tenant demand as a rental property and the condo market is seeing excellent gains in value. The downside is your rent will have to be high enough to cover your mortgage and condo fees.

Flipping Real Estate

Flipping is buying an undervalued fixer-upper, renovating it and then selling it at a profit. This has long been a real estate investment choice for people not interested in being a landlord. However, financing is trickier because you need money to manage renovations. Unless you are a true handy person or know someone who is, renovations can pose many challenges.

Competition to purchase fixer-uppers can be fierce, as it is not just investors but homeowners who are in search of undervalued properties. Also, it can be hard to find a home that is priced significantly below market value. There is more risk because you have to know:

  • How much to pay for the home
  • How much to invest to be able to sell at a profit
  • How to price the home so it isn’t too high to find a buyer

Financing your costs can be tricky and finding a lender can prove a challenge. If you run into issues selling, you can try to rent the property to cover your mortgage. However, with today’s low housing inventory, selling shouldn’t be a problem and might even drive up prices due to bidding wars.

Joint Ventures in Real Estate

If you want to invest in Toronto real estate, but either have bad credit or not enough money for a down payment, you can opt for a partnership with someone you trust and go into the purchase together. You share the burden of financing the property and split the profits when you sell. You can do this using the buy-and-hold strategy, rental properties to tenants, flipping or even own and live in the property together. The trick is to have all the terms clearly plotted out such as:

  • For flips, how the repairs will be done, paid for and managed
  • How much you are willing to spend on upgrades to still see a profit
  • Finding tenants and managing the property if renting it out
  • Your selling strategy and goals
  • Buying out a partner

Caution is greatly advised when choosing a partner. Some have a history of overextending themselves financially, and chances are they could do it again. Consult a lawyer for advice on how best to proceed.

Purchasing REITS

Real estate investment funds or REITs are publicly traded organizations that invest in income-producing real estate assets. They are purchased like stocks and come in different types with varying degrees of risk. They usually consist of diverse holdings such as industrial buildings, residential apartment towers, office buildings, malls, etc., and can be local or international properties.

You can own units easily as they start as low as $10 compared to the minimum you would need for a down payment for a Toronto property. In the past 10 years, REITs dollar value grew 215 per cent, making them rather lucrative. This comes with all the benefits of owning property, without any of the headaches.

Benefits of Renting

Rental property opportunities are a good Toronto real estate investment strategy. Toronto’s population is growing and so is the demand for rental units. In fact, Toronto is the fastest-growing metropolis in North America with 77,435 new residents arriving between July 2017 and July 2018. Average rent should be able to cover your mortgage and in some cases even get your down payment back quickly. The only problem is, properties in the Greater Toronto Area today average $839,363, so you’ll need almost $60,000 upfront for your down payment.

If you would like to speak to a real estate agent about Toronto real estate investments, reach out to a RE/MAX agent today.

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