Today I was having a conversation at the gym with one of the guys and he mentioned that he was getting his roof done today. This made me think about the type of things people should do when it comes time to repair or replace your roofing.
There are many types of roofs and keeping them in good repair is one of the most important things you can do to protect your home and your investment. Sloped, ashphalt covered roofs are the most predominant in Toronto so I'm going to talk about them today. For information about other roof systems, feel free to contact me at your convenience.
The single most important factor in roofing is your choice of contractor. Pick companies that have been around for a while and that are reputable. You want to make sure that they will be around to honour their warranty should the need arise. Price is an important consideration but if you base your decision solely on this criterion don't be surprised if the contractor uses sub-standard materials and inexperienced labour.
Make sure the contractor explains what type of shingles they will use. Shingles vary greatly in quality and they should explain different options to you. Shingles are graded according to weight and normally 210s are used. This means that a 100 square foot area weighs 210 pounds. and will have a life expectancy of 12 to 15 years depending on UV exposure, pitch of the roof (the higher the pitch, the longer it will last) and many other factors. Higher weight lasts longer; 225s, 235s and even 320s are available.
Your roof protects the rest of your home. If you leave it too long, structural damage can occur. remember that evidence of water damage is often the first thing that prospective home buyers look for.
You can find great local Toronto, Ontario real estate information on Localism.com Frank Bott is a proud member of the ActiveRain Real Estate Network, a free online community to help real estate professionals grow their business.
Thursday, March 27, 2008
Monday, March 24, 2008
Personalize Your Kitchen and Make it More Efficient
At one time, an efficient kitchen was designed around a work triangle, formed by the location of the refrigerator, sink and range. Although distance between major appliances is still a valid consideration, today the focus is shifting toward work zones. These dedicated areas -- for food prep, baking, eating, entertaining, office tasks and even hobbies -- allow homeowners to create more industrious and personalized kitchens.
Preparation Zone
• DO plan to include a large sink, cutting surface, and sufficient storage for plates, bowls, utensils and hand towels. The dishwasher and main refrigerator are typically located in the preparation zone -- although these busy appliances also do duty in the cooking and baking zones.
• DON'T overlook pullout produce bins and refrigerator drawers, which keep staples close at hand.
Cooking Zone
• DO situate the oven and microwave -- as well as specialty appliances like a steam oven, pasta sink and deep fryer -- in this zone. Keep required utensils, spices, oils, roasting pans and heavy-duty cookware nearby.
• DON'T forget to choose a countertop that's stain and heat resistant, like Corian, Silestone or granite.
Baking Zone
• DO outfit the baking zone with convenient storage for staples like flour and sugar, as well as for serving trays and baking sheets. An auxiliary sink positioned on one side of the counter is handy, as is a marble surface for rolling out dough.
• DON'T take unnecessary steps across the kitchen; for easy access to eggs, butter and milk, plan the layout so the refrigerator is within arm's reach.
Eating Zone
• DO dedicate an area for eating. Locate tableware, cutlery and placemats nearby for convenience.
• DON'T overlook the potential of a banquette, not only as seating for family meals and after-school snacks, but also as storage for everything from toys to files.
Beverage Zone
• DO consider a beverage zone outside the main flow of traffic. If you entertain frequently, ideal inclusions are a wine refrigerator or an open wine rack, instant hot water dispenser, coffee or espresso machine, minifridge (for milk, cream), ice maker and, perhaps, small-capacity dishwasher.
• DON'T ignore the new trough sinks, which can be filled with crushed ice for chilling bottles and serving oysters.
Office Zone
• DO create a comfortable spot to tackle correspondence and household tasks. Include power for a desk lamp, computer and cellphone charger.
• DON'T get frustrated if space is tight; carve out room in an island or under a banquette for office supplies or filing drawers.
Specialty Zone
• DO give your kitchen new purpose by including a corner in which to read with a child or curl up and nap.
• DON'T limit yourself here. For one client, we set up an easel for painting and added a secondary sink for rinsing brushes. Another client asked for a dog centre with a play area for Fido, a sleeping pen and storage for food.
Preparation Zone
• DO plan to include a large sink, cutting surface, and sufficient storage for plates, bowls, utensils and hand towels. The dishwasher and main refrigerator are typically located in the preparation zone -- although these busy appliances also do duty in the cooking and baking zones.
• DON'T overlook pullout produce bins and refrigerator drawers, which keep staples close at hand.
Cooking Zone
• DO situate the oven and microwave -- as well as specialty appliances like a steam oven, pasta sink and deep fryer -- in this zone. Keep required utensils, spices, oils, roasting pans and heavy-duty cookware nearby.
• DON'T forget to choose a countertop that's stain and heat resistant, like Corian, Silestone or granite.
Baking Zone
• DO outfit the baking zone with convenient storage for staples like flour and sugar, as well as for serving trays and baking sheets. An auxiliary sink positioned on one side of the counter is handy, as is a marble surface for rolling out dough.
• DON'T take unnecessary steps across the kitchen; for easy access to eggs, butter and milk, plan the layout so the refrigerator is within arm's reach.
Eating Zone
• DO dedicate an area for eating. Locate tableware, cutlery and placemats nearby for convenience.
• DON'T overlook the potential of a banquette, not only as seating for family meals and after-school snacks, but also as storage for everything from toys to files.
Beverage Zone
• DO consider a beverage zone outside the main flow of traffic. If you entertain frequently, ideal inclusions are a wine refrigerator or an open wine rack, instant hot water dispenser, coffee or espresso machine, minifridge (for milk, cream), ice maker and, perhaps, small-capacity dishwasher.
• DON'T ignore the new trough sinks, which can be filled with crushed ice for chilling bottles and serving oysters.
Office Zone
• DO create a comfortable spot to tackle correspondence and household tasks. Include power for a desk lamp, computer and cellphone charger.
• DON'T get frustrated if space is tight; carve out room in an island or under a banquette for office supplies or filing drawers.
Specialty Zone
• DO give your kitchen new purpose by including a corner in which to read with a child or curl up and nap.
• DON'T limit yourself here. For one client, we set up an easel for painting and added a secondary sink for rinsing brushes. Another client asked for a dog centre with a play area for Fido, a sleeping pen and storage for food.
Thursday, March 20, 2008
Canada Sees Real Estate Price Rises in 2007
Canada has seen the average price of residential real estate grow from around eight per cent in 2006 to 15 per cent in 2007.
The country's global rankings in the Knight Frank Global House Price Index climbed from 13th to 7th place.
Canada's economy has been buoyed by demand for raw materials from fast-growing economies like India and China, according to Knight Frank.
Global house price inflation stood at 8.2 per cent at the end of 2007, compared with 9.7 per cent in December 2006.
Liam Bailey, head of residential research at Knight Frank, pointed out that growth in the cost of property for sale in Canada came despite a downturn in economic conditions in the US and Europe.
According to a study by Royal Bank, a mortgage for a townhouse property for sale in Canada accounts for about 34.5 per cent of an individual's pre-tax income.
A detached bungalow and a standard two-storey home take up 42.5 and 48 per cent of earnings respectively.
Breaking news provided by Real Estate TV
The country's global rankings in the Knight Frank Global House Price Index climbed from 13th to 7th place.
Canada's economy has been buoyed by demand for raw materials from fast-growing economies like India and China, according to Knight Frank.
Global house price inflation stood at 8.2 per cent at the end of 2007, compared with 9.7 per cent in December 2006.
Liam Bailey, head of residential research at Knight Frank, pointed out that growth in the cost of property for sale in Canada came despite a downturn in economic conditions in the US and Europe.
According to a study by Royal Bank, a mortgage for a townhouse property for sale in Canada accounts for about 34.5 per cent of an individual's pre-tax income.
A detached bungalow and a standard two-storey home take up 42.5 and 48 per cent of earnings respectively.
Breaking news provided by Real Estate TV
Sunday, March 16, 2008
The Perils of Pot Houses: How Unsuspecting Home Buyers Get Duped
Bal Brach, Canwest News ServicePublished: Saturday, March 15, 2008
OTTAWA -- An Ontario couple thought they had found the perfect place to raise their two young children. But, what was to be their dream home, in a safe, tight-knit community, soon turned into a nightmare. They had purchased a former marijuana grow-op.
Four years later, health concerns and legal bills are piling up.
The couple, who wish to remain anonymous, say there is evidence of mould in the home and they worry about the health of their two young children. Since moving in, the husband has suffered from sinus infections.
"Even if you get the air quality tests, you still have the worry in the back of your mind, 'Is there any mould in the house? Is there anything that's hidden? My children are coughing. Well, is it a cough or is it because of something that's hidden behind the walls?' I don't want to continue to live in a house that might have an effect on me or my children later."
These folks found out the hard way they had stumbled into a former drug den.
"In my case it was my neighbour coming out and saying, 'By the way did you know this house was used as a grow op?' and my mouth dropped," said the husband.
The family is now embroiled in a costly legal battle over the purchase of the house. The couple is suing the previous owner as well as the listing agent and realtor involved with the transaction.
They allege the realtor was fully aware of the previous use of the home and failed to disclose the information during negotiations. "You pay a lawyer for a reason, you pay a real estate agent for the same reason, to do their due diligence ... in my case it wasn't even put on the listing," said the husband.
"We purchased the house four years ago and we're still in litigation, it's totally ridiculous."
The couple is drained emotionally and financially. They owe lawyers more than $100,000, not to mention the stigma they say never goes away, from living in a former drug house.
"We went around to try and meet our neighbours and when they asked where we lived, they said, 'Oh, you live in the drug house.' That's not what I want to be known as. It causes a lot of hardship and pain moving into an area where people know your house was a grow-op."
After spending their life savings on the home, the couple feels helpless.
"Essentially they've been defrauded," said Toronto area lawyer Andrew Ruzza. "They've purchased something which is not what they expected."
Ruzza, who is representing the family, believes legislation needs to change to protect home buyers in Canada. When neighbours told Ruzza's clients their home was a former grow-op, a simple check with local police confirmed it. In some provinces, such as B.C. and Quebec, however, privacy issues restrict the free flow of this type of information.
"I'd really like a judge or a court to say there really is no right to privacy when it comes to this sort of thing," said Ruzza.
The resale price of a former drug house varies from province to province, but generally experts say the homes sell for 10 to 25 per cent less than market value.
For those thinking of making a quick buck by flipping these properties, the idea may be alluring, but be warned, it's costly.
"It's definitely not something I'd recommend to the average investor," said B.C.-based contractor Owen Brown, who rehabbed a drug lab in the northern B.C. town of Prince George last year. "There was toxic mould everywhere."
Brown said it usually takes his company a month to renovate a home, but this former drug house took six months and cost more than $150,000.
"We ripped out everything, downed fixtures, even some of the exterior studs. I own my own construction company; otherwise the costs would have been substantially higher."
Brown estimates that hiring a contractor would have cost nearly $230,000. "I would stay away from grow-ops unless you know the contractor very well."
Mould is linked to a wide range of symptoms and illnesses, including asthma. Health Canada says it can trigger asthmatic attacks, as well as a number of other respiratory problems such as coughing and wheezing. Mould exposure is also tied to headaches and an increase in allergic reactions. It can be especially dangerous for children and people with weakened immune systems.
Ruzza warns home buyers to be aware of their rights when signing contracts. He suggests asking the seller clear questions about what activities took place in the home, in the purchasing contract.
"Have the vendor sign off that they're swearing the house was never used as a grow house. It's a right you have as a party to a contract to include a term that's favourable for you. If they're unwilling to sign off on it, then ask why," he said.
Ruzza's clients are just one of many families across Canada devastated after learning their homes were former grow-ops. The case is still several months away from trial.
In an attempt to protect the public, many police forces across the country now publish the addresses of busted grow-ops on their websites.
Ottawa is the latest police force to target the multi-billion dollar marijuana industry.
"They come in and spend hundreds of thousands of dollars and if something illegal happened there and we have the information, I think we have a requirement to provide it to people," said Ottawa Police Chief Vern White.
Since the beginning of February, Ottawa police have been listing the addresses of dismantled grow-ops and meth labs on the police website.
There's not a lot of work to this. We develop our website and that's it," said White. At the end of three months, the published information migrates to the City of Ottawa website where it will stay.
"I think it has to be everywhere . . . I'm not convinced that there shouldn't be a national registry required."
According to an RCMP report, law enforcement agencies across the country seized nearly two million marijuana plants in 2006. The report estimates 90 per cent of Canada's marijuana is produced in B.C., Ontario and Quebec.
Canada's Public Safety Minister Stockwell Day said the idea is being considered. "While there is no national grow operations registry, we are working closely with our provincial and territorial partners to determine the feasibility and challenges of instituting such a registry on a broader scale," Day said in a statement.
Ottawa is among at least five cities in Ontario publishing addresses of dismantled illegal drug operations. Windsor, Guelph, Durham and London all have similar programs.
In Manitoba, when the Winnipeg police force found itself fielding countless calls about potential properties, the force started listing addresses on its website.
The Winnipeg program started three years ago and began as an information sharing tool to make the public more aware.
In Calgary, health services work with the Calgary police when shutting down a grow-op. Alberta is the only province in Canada where public health officers have the status of "executive officers," who can make specific remediation orders to properties.
"We disclose this information on a regular basis to the public so they can make an informed decision on whether they want to purchase a home that's been a grow-op," said Robert Bradbury, Director of Health Protection, Calgary Health Region.
Bradbury said the health service's website, which lists active and inactive grow-ops, is extremely popular among potential home buyers.
Surprisingly, in B.C., where marijuana is a $2 billion-a-year industry, there is currently no list of busted grow-op houses for the public to view.
Bill Sutherland, President of the Canadian Association of Home and Property Inspectors, said beyond the obvious loss in property value, it's public safety at issue. Sutherland has been inspecting homes for more than a decade and said the structural, electrical and moisture damage he has seen in homes with grow-ops requires extensive repair.
Although some provincial laws require property owners to disclose whether or not their home was once a grow-op, there is still no way of knowing for sure. The best insurance against buying a home that's been used as a grow-op is to hire a home inspector. A few hundred dollars upfront could save thousands in the long run.
FACT BOX:
Here are some tips:
-- Look for red tuck tape around walls, windows, floors (growers use it when putting plastic on the windows and enclosing spaces to keep the moisture in)
-- Look for staple marks typically at the ceiling level (where growers usually hang plastic to cover windows)
-- Look for any kind of change in ventilation (growers won't vent through the roof, they'll try the attic or closet)
-- Look for moisture stains in the attic or closet
OTTAWA -- An Ontario couple thought they had found the perfect place to raise their two young children. But, what was to be their dream home, in a safe, tight-knit community, soon turned into a nightmare. They had purchased a former marijuana grow-op.
Four years later, health concerns and legal bills are piling up.
The couple, who wish to remain anonymous, say there is evidence of mould in the home and they worry about the health of their two young children. Since moving in, the husband has suffered from sinus infections.
"Even if you get the air quality tests, you still have the worry in the back of your mind, 'Is there any mould in the house? Is there anything that's hidden? My children are coughing. Well, is it a cough or is it because of something that's hidden behind the walls?' I don't want to continue to live in a house that might have an effect on me or my children later."
These folks found out the hard way they had stumbled into a former drug den.
"In my case it was my neighbour coming out and saying, 'By the way did you know this house was used as a grow op?' and my mouth dropped," said the husband.
The family is now embroiled in a costly legal battle over the purchase of the house. The couple is suing the previous owner as well as the listing agent and realtor involved with the transaction.
They allege the realtor was fully aware of the previous use of the home and failed to disclose the information during negotiations. "You pay a lawyer for a reason, you pay a real estate agent for the same reason, to do their due diligence ... in my case it wasn't even put on the listing," said the husband.
"We purchased the house four years ago and we're still in litigation, it's totally ridiculous."
The couple is drained emotionally and financially. They owe lawyers more than $100,000, not to mention the stigma they say never goes away, from living in a former drug house.
"We went around to try and meet our neighbours and when they asked where we lived, they said, 'Oh, you live in the drug house.' That's not what I want to be known as. It causes a lot of hardship and pain moving into an area where people know your house was a grow-op."
After spending their life savings on the home, the couple feels helpless.
"Essentially they've been defrauded," said Toronto area lawyer Andrew Ruzza. "They've purchased something which is not what they expected."
Ruzza, who is representing the family, believes legislation needs to change to protect home buyers in Canada. When neighbours told Ruzza's clients their home was a former grow-op, a simple check with local police confirmed it. In some provinces, such as B.C. and Quebec, however, privacy issues restrict the free flow of this type of information.
"I'd really like a judge or a court to say there really is no right to privacy when it comes to this sort of thing," said Ruzza.
The resale price of a former drug house varies from province to province, but generally experts say the homes sell for 10 to 25 per cent less than market value.
For those thinking of making a quick buck by flipping these properties, the idea may be alluring, but be warned, it's costly.
"It's definitely not something I'd recommend to the average investor," said B.C.-based contractor Owen Brown, who rehabbed a drug lab in the northern B.C. town of Prince George last year. "There was toxic mould everywhere."
Brown said it usually takes his company a month to renovate a home, but this former drug house took six months and cost more than $150,000.
"We ripped out everything, downed fixtures, even some of the exterior studs. I own my own construction company; otherwise the costs would have been substantially higher."
Brown estimates that hiring a contractor would have cost nearly $230,000. "I would stay away from grow-ops unless you know the contractor very well."
Mould is linked to a wide range of symptoms and illnesses, including asthma. Health Canada says it can trigger asthmatic attacks, as well as a number of other respiratory problems such as coughing and wheezing. Mould exposure is also tied to headaches and an increase in allergic reactions. It can be especially dangerous for children and people with weakened immune systems.
Ruzza warns home buyers to be aware of their rights when signing contracts. He suggests asking the seller clear questions about what activities took place in the home, in the purchasing contract.
"Have the vendor sign off that they're swearing the house was never used as a grow house. It's a right you have as a party to a contract to include a term that's favourable for you. If they're unwilling to sign off on it, then ask why," he said.
Ruzza's clients are just one of many families across Canada devastated after learning their homes were former grow-ops. The case is still several months away from trial.
In an attempt to protect the public, many police forces across the country now publish the addresses of busted grow-ops on their websites.
Ottawa is the latest police force to target the multi-billion dollar marijuana industry.
"They come in and spend hundreds of thousands of dollars and if something illegal happened there and we have the information, I think we have a requirement to provide it to people," said Ottawa Police Chief Vern White.
Since the beginning of February, Ottawa police have been listing the addresses of dismantled grow-ops and meth labs on the police website.
There's not a lot of work to this. We develop our website and that's it," said White. At the end of three months, the published information migrates to the City of Ottawa website where it will stay.
"I think it has to be everywhere . . . I'm not convinced that there shouldn't be a national registry required."
According to an RCMP report, law enforcement agencies across the country seized nearly two million marijuana plants in 2006. The report estimates 90 per cent of Canada's marijuana is produced in B.C., Ontario and Quebec.
Canada's Public Safety Minister Stockwell Day said the idea is being considered. "While there is no national grow operations registry, we are working closely with our provincial and territorial partners to determine the feasibility and challenges of instituting such a registry on a broader scale," Day said in a statement.
Ottawa is among at least five cities in Ontario publishing addresses of dismantled illegal drug operations. Windsor, Guelph, Durham and London all have similar programs.
In Manitoba, when the Winnipeg police force found itself fielding countless calls about potential properties, the force started listing addresses on its website.
The Winnipeg program started three years ago and began as an information sharing tool to make the public more aware.
In Calgary, health services work with the Calgary police when shutting down a grow-op. Alberta is the only province in Canada where public health officers have the status of "executive officers," who can make specific remediation orders to properties.
"We disclose this information on a regular basis to the public so they can make an informed decision on whether they want to purchase a home that's been a grow-op," said Robert Bradbury, Director of Health Protection, Calgary Health Region.
Bradbury said the health service's website, which lists active and inactive grow-ops, is extremely popular among potential home buyers.
Surprisingly, in B.C., where marijuana is a $2 billion-a-year industry, there is currently no list of busted grow-op houses for the public to view.
Bill Sutherland, President of the Canadian Association of Home and Property Inspectors, said beyond the obvious loss in property value, it's public safety at issue. Sutherland has been inspecting homes for more than a decade and said the structural, electrical and moisture damage he has seen in homes with grow-ops requires extensive repair.
Although some provincial laws require property owners to disclose whether or not their home was once a grow-op, there is still no way of knowing for sure. The best insurance against buying a home that's been used as a grow-op is to hire a home inspector. A few hundred dollars upfront could save thousands in the long run.
FACT BOX:
Here are some tips:
-- Look for red tuck tape around walls, windows, floors (growers use it when putting plastic on the windows and enclosing spaces to keep the moisture in)
-- Look for staple marks typically at the ceiling level (where growers usually hang plastic to cover windows)
-- Look for any kind of change in ventilation (growers won't vent through the roof, they'll try the attic or closet)
-- Look for moisture stains in the attic or closet
Friday, March 14, 2008
Beach-House Bargains,Do U.S. Woes Produce Canadian Opportunities?
Thanks to the real estate crash, these days you might just be able to afford that condo by the sea. Here's where to shop.
By Jon Birger, senior writer
(Fortune Magazine) -- Three years ago, while writing for Fortune's sister publication Money, I embarked on what seemed like an oxymoronic (or maybe just moronic) quest: to find affordable beach houses at a time of real estate insanity. Beachfront prices were soaring, which made my mission - finding vacation getaways right on the ocean for less than $500,000 - seem like a long shot.
In the end, I did find a few beach locales where bargains still existed, such as North Padre Island in Texas and Prince Edward Island in Canada (see "The Last Affordable Beach House"). For the most part, though, my travels confirmed what the experts had warned me going in: The beach-house retirement dream is out of reach for many upper-middle-class Americans. "We get calls all the time from people who say that all they want is a little house on the beach - nothing too fancy," one real estate agent told me. "It's heartbreaking, but the problem is that even those homes come with a fancy price tag."
Three years and one real estate crash later, the beach-house market has changed. Prices are coming down, especially in America's vacation-home capital of Florida. But so far the correction hasn't been nearly as dramatic as prospective buyers might hope.
Paul Grover, a top Cape Cod real estate agent based in Osterville, Mass., tells me the story of a well-heeled buyer who came to him looking to spend up to $4 million for a big home with a tony address and a lawn that backs right up to the beach. Unfortunately, the starting price for such a house on the cape is closer to $8 million than $4 million. "There are a lot of buyers expecting to find bargains," says Grover, "but the bargains generally aren't out there."
Part of the problem is that the folks who can afford homes right on the beach are, for the most part, those least affected by the economic downturn. In the Hamptons - summer home to New York City's upper crust - you won't find many desperate sellers. "It's a totally different mentality," East Hampton real estate agent Diane Saatchi says of her clientele. "The value of their real estate is just so insignificant compared with their overall wealth."
So where are the beach bargains these days? I posed this question to two of the most active vacation-home buyers in North America - Cathy Ross, executive vice president for real estate with Exclusive Resorts, and Richard Keith, CEO of Private Escapes.
Exclusive Resorts and Private Escapes are leading "destination clubs," which are essentially luxury time-shares for the well-to-do. (Members pay a six-figure membership fee, plus annual dues, and are entitled to use the clubs' stable of luxury vacation homes for several weeks a year.) Ross says she sees "great value" right now in Hawaii, where prices have fallen some 10%. Keith is finding deals in the Caribbean archipelago of Turks and Caicos - particularly the Grace Beach section, where developers overbuilt during the boom.
One market where both Ross and Keith see buying opportunities galore is Florida. The best Florida bargains are in condominiums. Kerry McNulty, a real estate agent in the Panhandle resort town of Destin, says Panhandle prices have fallen 25% to 30% since 2005. A two-bedroom beachfront condo that might have sold for $600,000 in 2005 can now be had for $425,000, he says.
But before booking a flight to the Sunshine State to start your bargain hunting, consider the risks. The Florida market may have further to fall. Property taxes and insurance bills are soaring. And if you're a believer in the devastating impact of global warming (I'm a tad skeptical, but that's another column), an investment in property on the Gulf or Atlantic coast probably isn't for you.
Not only is the hurricane risk higher, but the three-foot rise in sea level predicted by most experts would swamp most Florida beaches, according to real estate consultant Climate Appraisal Services. (The West Coast and the New England coast fare best in CAS's computer models, the Gulf Coast the worst.) David Purcell, an ex-banker who founded CAS in 2006 with a trio of University of Arizona scientists, views Florida beachfront as an incredibly risky investment. "Twenty years from now," Purcell says, "if you're looking to sell, you may find there's nobody willing to step into your shoes."
By Jon Birger, senior writer
(Fortune Magazine) -- Three years ago, while writing for Fortune's sister publication Money, I embarked on what seemed like an oxymoronic (or maybe just moronic) quest: to find affordable beach houses at a time of real estate insanity. Beachfront prices were soaring, which made my mission - finding vacation getaways right on the ocean for less than $500,000 - seem like a long shot.
In the end, I did find a few beach locales where bargains still existed, such as North Padre Island in Texas and Prince Edward Island in Canada (see "The Last Affordable Beach House"). For the most part, though, my travels confirmed what the experts had warned me going in: The beach-house retirement dream is out of reach for many upper-middle-class Americans. "We get calls all the time from people who say that all they want is a little house on the beach - nothing too fancy," one real estate agent told me. "It's heartbreaking, but the problem is that even those homes come with a fancy price tag."
Three years and one real estate crash later, the beach-house market has changed. Prices are coming down, especially in America's vacation-home capital of Florida. But so far the correction hasn't been nearly as dramatic as prospective buyers might hope.
Paul Grover, a top Cape Cod real estate agent based in Osterville, Mass., tells me the story of a well-heeled buyer who came to him looking to spend up to $4 million for a big home with a tony address and a lawn that backs right up to the beach. Unfortunately, the starting price for such a house on the cape is closer to $8 million than $4 million. "There are a lot of buyers expecting to find bargains," says Grover, "but the bargains generally aren't out there."
Part of the problem is that the folks who can afford homes right on the beach are, for the most part, those least affected by the economic downturn. In the Hamptons - summer home to New York City's upper crust - you won't find many desperate sellers. "It's a totally different mentality," East Hampton real estate agent Diane Saatchi says of her clientele. "The value of their real estate is just so insignificant compared with their overall wealth."
So where are the beach bargains these days? I posed this question to two of the most active vacation-home buyers in North America - Cathy Ross, executive vice president for real estate with Exclusive Resorts, and Richard Keith, CEO of Private Escapes.
Exclusive Resorts and Private Escapes are leading "destination clubs," which are essentially luxury time-shares for the well-to-do. (Members pay a six-figure membership fee, plus annual dues, and are entitled to use the clubs' stable of luxury vacation homes for several weeks a year.) Ross says she sees "great value" right now in Hawaii, where prices have fallen some 10%. Keith is finding deals in the Caribbean archipelago of Turks and Caicos - particularly the Grace Beach section, where developers overbuilt during the boom.
One market where both Ross and Keith see buying opportunities galore is Florida. The best Florida bargains are in condominiums. Kerry McNulty, a real estate agent in the Panhandle resort town of Destin, says Panhandle prices have fallen 25% to 30% since 2005. A two-bedroom beachfront condo that might have sold for $600,000 in 2005 can now be had for $425,000, he says.
But before booking a flight to the Sunshine State to start your bargain hunting, consider the risks. The Florida market may have further to fall. Property taxes and insurance bills are soaring. And if you're a believer in the devastating impact of global warming (I'm a tad skeptical, but that's another column), an investment in property on the Gulf or Atlantic coast probably isn't for you.
Not only is the hurricane risk higher, but the three-foot rise in sea level predicted by most experts would swamp most Florida beaches, according to real estate consultant Climate Appraisal Services. (The West Coast and the New England coast fare best in CAS's computer models, the Gulf Coast the worst.) David Purcell, an ex-banker who founded CAS in 2006 with a trio of University of Arizona scientists, views Florida beachfront as an incredibly risky investment. "Twenty years from now," Purcell says, "if you're looking to sell, you may find there's nobody willing to step into your shoes."
Wednesday, March 12, 2008
East York
Source: Toronto Real Estate Board (TREB)
HISTORY
The Township of East York was incorporated on January 1, 1924. At that time East York was comprised mostly of market gardens, a handful of brick making yards and a race horse track that was located in the area bound by Oak Park, Lumsden, Chisholm and Danforth Avenues.
In its early years, East York's population consisted mostly of employees of the local market gardens and brick yards as well as returning World War One veterans and their families. East York's largest period of growth took place between 1946 and 1961 when the housing supply nearly doubled in size.
East York held the distinction of being Canada's only Borough until 1998 when it was amalgamated into the City of Toronto. The fact that East York chose to remain a Borough for so long rather than incorporate as a city speaks volumes for the neighbourliness and small town friendliness that has been an East York trademark ever since its formation in 1924.
OVERVIEW
For many years East York has held the distinction of having the highest percentage of senior citizens in Metropolitan Toronto. These demographics are changing however as many young families are now moving into this neighbourhood. Home buyers are finding East York attractive because the houses are relatively affordable and the location offers quick and easy access to downtown Toronto.
Tuesday, March 11, 2008
GTA Resale Housing Down but Healthy
TORONTO, ONTARIO--(Marketwire - March 5, 2008) - President Maureen O'Neill announced today, Toronto Real Estate Board Members recorded 6,015 resale home transactions last month, down 11 per cent in the Greater Toronto Area overall , 14 per cent in the City of Toronto and 9 per cent in the 905 suburbs compared to February 2007.
"To get an accurate perspective of current market conditions, a number of factors have to be considered," said Ms. O'Neill. "With 18,018 properties available for sale, inventory has decreased seven per cent from last February."
"This indicates that despite moderate sales, there is not an over-supply of homes on the market. Generally, properties that are listed are selling fairly quickly and with a list to sale price ratio of 99 per cent, for the most part, sellers are realizing their asking price," O'Neill added.
Despite the decrease in the number of sales from this time last year, there was positive news with respect to prices in February. At $382,048 in the Greater Toronto Area and $424,235 in the City of Toronto, the average price increased four and two per cent respectively compared to February 2007. As well, the time on market in February was 30 days compared to 35 days a year ago.
Despite the overall decline, some GTA neighbourhoods experienced strong sales in February.
In Pickering (E13) sales rose 28 per cent overall compared to a year ago due to a strong increase in condo townhouse and condo-apartment transactions.
Strong condo-apartment sales also drove transactions in Rexdale (W10) to an overall increase of 18 per cent compared to February 2007.
Richmond Hill North (N05) experienced a 19 per cent sales increase compared to a year ago primarily as a result of strong detached home transactions."
All economic indicators are in place for an active year in the GTA, and as the weather improves sales are expected to increase as well," said Ms. O'Neill.For a complete copy of February's Market Watch report visit www.TorontoRealEstateBoard.com.
"To get an accurate perspective of current market conditions, a number of factors have to be considered," said Ms. O'Neill. "With 18,018 properties available for sale, inventory has decreased seven per cent from last February."
"This indicates that despite moderate sales, there is not an over-supply of homes on the market. Generally, properties that are listed are selling fairly quickly and with a list to sale price ratio of 99 per cent, for the most part, sellers are realizing their asking price," O'Neill added.
Despite the decrease in the number of sales from this time last year, there was positive news with respect to prices in February. At $382,048 in the Greater Toronto Area and $424,235 in the City of Toronto, the average price increased four and two per cent respectively compared to February 2007. As well, the time on market in February was 30 days compared to 35 days a year ago.
Despite the overall decline, some GTA neighbourhoods experienced strong sales in February.
In Pickering (E13) sales rose 28 per cent overall compared to a year ago due to a strong increase in condo townhouse and condo-apartment transactions.
Strong condo-apartment sales also drove transactions in Rexdale (W10) to an overall increase of 18 per cent compared to February 2007.
Richmond Hill North (N05) experienced a 19 per cent sales increase compared to a year ago primarily as a result of strong detached home transactions."
All economic indicators are in place for an active year in the GTA, and as the weather improves sales are expected to increase as well," said Ms. O'Neill.For a complete copy of February's Market Watch report visit www.TorontoRealEstateBoard.com.
Monday, March 10, 2008
How Condominiums are Different From Freeholds
A condominium is a creature of statute, created under the Condominium Act of Ontario, as, among other things a means of consumer protection by the imposition of certain time and disclosure requirements on the purchase and sale of new condominiums. A condominium is not necessarily just a high-rise apartment. Condominiums can include townhouses, of all shapes, sizes and heights, semi-detached or detached units and can be industrial, commercial or residential. Since the new Condominium Act came into place the following types have been added: common element condominiums (i.e. A number of homeowners sharing a central recreation facility), phased condominium corporations, vacant land condominiums or leasehold condominiums.
How Does it get There?
The developer takes his land and plans through many stages, and for residential including enrollment under the Ontario New Homes Warranty Program, negotiation of the agreements with the various governmental authorities and utilities and finally he will receive the necessary approvals to start building. At the same time he is preparing with his lawyer the declaration, description, disclosure statement, etc. Once the facility is constructed and inspected by the Municipality, purchasers may be given occupancy or possession, but not title. After all the paperwork has been approved, the Ministry of Housing inspects and approves the project for release. The developer would then register the appropriate documents and advise purchasers it is time for the final closing and the purchaser would get his deed.
What do I own Personally?
In the majority of the cases, you own the inside of your unit to half way through the walls, floors and ceiling, all as particularly described in the description and your proportionate share of the common elements as set out in the condominium documents.
One of the questions that frequently comes up relates to the issue of whether you own the parking spot or storage locker that come with the unit? If a parking spot or storage unit is included do you own them or is it an exclusive use arrangement? In order to get title to these elements it must be set out in the Agreement of Purchase and Sale. If it is exclusive use the parking spot or storage locker are owned by the condominium corporation and pursuant to your agreement and subject to the by-laws of the condominium corporation.
What is a Status Certificate?
One of the changes in the new Act is the change to the Status certificate from the Estoppels Certificate. Ok what does this mean? You need to obtain a Status Certificate from the Condominium Corporation because it will provide a wealth of necessary information to be able to make educated decisions. Like what? Here are a few highlights: a) statement of common expenses of the unit and if any default in payment b) any increases since last budget and reasons c) any assessments levied d) o/s judgments and legal actions if any e) budget and financial statements f) copies of all agreements affecting the condo g) reserve fund info h) contemplated and actual financial, service and physical changes and many other items. Have a look at sec 76(1) of the Condominium Act or ask your lawyer for a copy. Also the cost has gone from $50 to $100 to obtain this information.
Why a Condominium?
Under the old legislation, condominiums offered a much different lifestyle selection to the consumer than freehold but today with the changes builders and developers will only be limited by their imagination. There will be as many different choices as there are creative people. What do I mean? How about a 4000 square foot freestanding home on a 1 acre estate lot that is freehold but the owner is part of a condominium that participates in a water and sewer treatment plant and maintains its own security force? How about owning the house but sharing ownership of the golf course or the Olympic sized swimming pool? Today condominium is becoming one of the ways to have your cake and eat it too.
How Does it get There?
The developer takes his land and plans through many stages, and for residential including enrollment under the Ontario New Homes Warranty Program, negotiation of the agreements with the various governmental authorities and utilities and finally he will receive the necessary approvals to start building. At the same time he is preparing with his lawyer the declaration, description, disclosure statement, etc. Once the facility is constructed and inspected by the Municipality, purchasers may be given occupancy or possession, but not title. After all the paperwork has been approved, the Ministry of Housing inspects and approves the project for release. The developer would then register the appropriate documents and advise purchasers it is time for the final closing and the purchaser would get his deed.
What do I own Personally?
In the majority of the cases, you own the inside of your unit to half way through the walls, floors and ceiling, all as particularly described in the description and your proportionate share of the common elements as set out in the condominium documents.
One of the questions that frequently comes up relates to the issue of whether you own the parking spot or storage locker that come with the unit? If a parking spot or storage unit is included do you own them or is it an exclusive use arrangement? In order to get title to these elements it must be set out in the Agreement of Purchase and Sale. If it is exclusive use the parking spot or storage locker are owned by the condominium corporation and pursuant to your agreement and subject to the by-laws of the condominium corporation.
What is a Status Certificate?
One of the changes in the new Act is the change to the Status certificate from the Estoppels Certificate. Ok what does this mean? You need to obtain a Status Certificate from the Condominium Corporation because it will provide a wealth of necessary information to be able to make educated decisions. Like what? Here are a few highlights: a) statement of common expenses of the unit and if any default in payment b) any increases since last budget and reasons c) any assessments levied d) o/s judgments and legal actions if any e) budget and financial statements f) copies of all agreements affecting the condo g) reserve fund info h) contemplated and actual financial, service and physical changes and many other items. Have a look at sec 76(1) of the Condominium Act or ask your lawyer for a copy. Also the cost has gone from $50 to $100 to obtain this information.
Why a Condominium?
Under the old legislation, condominiums offered a much different lifestyle selection to the consumer than freehold but today with the changes builders and developers will only be limited by their imagination. There will be as many different choices as there are creative people. What do I mean? How about a 4000 square foot freestanding home on a 1 acre estate lot that is freehold but the owner is part of a condominium that participates in a water and sewer treatment plant and maintains its own security force? How about owning the house but sharing ownership of the golf course or the Olympic sized swimming pool? Today condominium is becoming one of the ways to have your cake and eat it too.
Sunday, March 9, 2008
Storm Doesn't Stop Buyers at Aura Condominiums
CTV News, March 8, 2008
Even a vicious snowstorm couldn't slow Toronto's condo mania on Saturday as buyers made their way downtown to get a piece of some hot real estate.
Residents had their first crack at buying units at Aura Condominiums at College Park, located at Yonge and Gerrard Streets.
Developer Canderel Stoneridge says the skyscraper will be the tallest residential tower in Canada.
The first three levels of the 75-storey building will be retail space, while the remainder will house approximately 920 units, which range in price from $300,000 to close to $2 million.
Some real estate agents lined up for two weeks, and even paid people to stand in line for them, in order to secure units.
About 200 buyers and their agents came to Aura Condominiums on Saturday to purchase the first block of 250 units.
"I think it's a very good place (in the) centre of Toronto, in downtown, so it's a special place," said buyer Yunchi Go.
Another block of units is expected to be up for sale soon.
Toronto's condo fever erupted into pushing and shoving in November when units at 1 Bloor went on sale. Tempers flared when people who had waited in line for a week tried to move up a few spots closer to the front. Police officers were on hand to monitor the crowd and maintain peace.
Even a vicious snowstorm couldn't slow Toronto's condo mania on Saturday as buyers made their way downtown to get a piece of some hot real estate.
Residents had their first crack at buying units at Aura Condominiums at College Park, located at Yonge and Gerrard Streets.
Developer Canderel Stoneridge says the skyscraper will be the tallest residential tower in Canada.
The first three levels of the 75-storey building will be retail space, while the remainder will house approximately 920 units, which range in price from $300,000 to close to $2 million.
Some real estate agents lined up for two weeks, and even paid people to stand in line for them, in order to secure units.
About 200 buyers and their agents came to Aura Condominiums on Saturday to purchase the first block of 250 units.
"I think it's a very good place (in the) centre of Toronto, in downtown, so it's a special place," said buyer Yunchi Go.
Another block of units is expected to be up for sale soon.
Toronto's condo fever erupted into pushing and shoving in November when units at 1 Bloor went on sale. Tempers flared when people who had waited in line for a week tried to move up a few spots closer to the front. Police officers were on hand to monitor the crowd and maintain peace.
Friday, March 7, 2008
Bank of Canada Chops Rate, but Fixed Mortgages Don't Budge
CBC News
Many Canadians may have been hoping that Tuesday's big cut in the Bank of Canada's key lending rate would lead to lower fixed mortgage rates, but it hasn't.
The central bank chopped its overnight lending rate by half a percentage point to 3.5 per cent. Financial institutions then matched that cut by lowering their prime lending rates by a half percentage point to 5.25 per cent.
That automatically pushed down the rates for variable mortgages, lines of credit, and other floating-rate loans that are tied to the prime. But not the rates for fixed mortgages — the most common kind of mortgage.
A day after the big Bank of Canada move, fixed mortgage rates remain just where they were before the central bank acted.
In fact, since early December last year, the central bank has chopped its key lending rate by a full percentage point and it has signalled that further rate cuts are "likely."
Yet the posted rate for the popular five-year fixed mortgage has dipped by less than two-tenths of a percentage point in the same time frame.
Analysts point out that the central bank's overnight lending rate is, as the name suggests, a very short-term lending benchmark. Long-term fixed mortgage rates tend to be more influenced by moves in the bond market, which has become a more difficult borrowing environment lately.
Analysts say the global credit crunch — triggered by the U.S. subprime mortgage crisis — has made it more expensive for Canadian banks to access funds.
Spreads increasing
"What essentially is happening is the banks are increasing the spread between what they charge you for a mortgage and what they may pay for money," said Tsur Somerville of the Sauder School of Business in Vancouver.
"They're essentially compensating themselves for higher risk in real estate," he told CBC News.
That one-percentage-point discount on the posted rate that mortgage borrowers were automatically offered is also becoming more difficult to get.
"All the different ways that you used to be able to get a discount — those seem to be drying up, " Somerville said. "So when I talk to people, what they're saying is those discounts are hard to get right now."
The tighter lending environment is also being felt in the U.S. mortgage market.
A study released Wednesday by TD Economics showed that American homeowners were not getting much of a break from the big slashing in the federal funds rate by the U.S. Federal Reserve.
The Fed has chopped its key lending rate by 2.25 percentage points in the past six months, but fixed mortgage rates have hardly moved at all.
The most recent Primary Mortgage Market Survey Report from Freddie Mac — also known as the Federal Home Loan Mortgage Corporation — showed 30-year fixed-rate mortgage rates are virtually unchanged from late August.
Rates on jumbo mortgages — those over $417,000 US — have fallen by just one-fifth of a percentage point since August, as financial institutions grow more risk averse.
TD economist Beata Caranci said the recently approved $168 billion US economic stimulus package will give the U.S. economy a lift in the second half of the year.
"However, once this short-lived impact dissipates, the U.S. economy could relapse in early 2009 if American households are unable to derive greater benefits from the longer-term influence of past Fed rate cuts," she said.
Many Canadians may have been hoping that Tuesday's big cut in the Bank of Canada's key lending rate would lead to lower fixed mortgage rates, but it hasn't.
The central bank chopped its overnight lending rate by half a percentage point to 3.5 per cent. Financial institutions then matched that cut by lowering their prime lending rates by a half percentage point to 5.25 per cent.
That automatically pushed down the rates for variable mortgages, lines of credit, and other floating-rate loans that are tied to the prime. But not the rates for fixed mortgages — the most common kind of mortgage.
A day after the big Bank of Canada move, fixed mortgage rates remain just where they were before the central bank acted.
In fact, since early December last year, the central bank has chopped its key lending rate by a full percentage point and it has signalled that further rate cuts are "likely."
Yet the posted rate for the popular five-year fixed mortgage has dipped by less than two-tenths of a percentage point in the same time frame.
Analysts point out that the central bank's overnight lending rate is, as the name suggests, a very short-term lending benchmark. Long-term fixed mortgage rates tend to be more influenced by moves in the bond market, which has become a more difficult borrowing environment lately.
Analysts say the global credit crunch — triggered by the U.S. subprime mortgage crisis — has made it more expensive for Canadian banks to access funds.
Spreads increasing
"What essentially is happening is the banks are increasing the spread between what they charge you for a mortgage and what they may pay for money," said Tsur Somerville of the Sauder School of Business in Vancouver.
"They're essentially compensating themselves for higher risk in real estate," he told CBC News.
That one-percentage-point discount on the posted rate that mortgage borrowers were automatically offered is also becoming more difficult to get.
"All the different ways that you used to be able to get a discount — those seem to be drying up, " Somerville said. "So when I talk to people, what they're saying is those discounts are hard to get right now."
The tighter lending environment is also being felt in the U.S. mortgage market.
A study released Wednesday by TD Economics showed that American homeowners were not getting much of a break from the big slashing in the federal funds rate by the U.S. Federal Reserve.
The Fed has chopped its key lending rate by 2.25 percentage points in the past six months, but fixed mortgage rates have hardly moved at all.
The most recent Primary Mortgage Market Survey Report from Freddie Mac — also known as the Federal Home Loan Mortgage Corporation — showed 30-year fixed-rate mortgage rates are virtually unchanged from late August.
Rates on jumbo mortgages — those over $417,000 US — have fallen by just one-fifth of a percentage point since August, as financial institutions grow more risk averse.
TD economist Beata Caranci said the recently approved $168 billion US economic stimulus package will give the U.S. economy a lift in the second half of the year.
"However, once this short-lived impact dissipates, the U.S. economy could relapse in early 2009 if American households are unable to derive greater benefits from the longer-term influence of past Fed rate cuts," she said.
Wednesday, March 5, 2008
Are Home Prices Peaking?
Duncan Hood
From the November 2007 issue of MoneySense magazine
Even banks are admitting that after a decade of unthrottled expansion, Canada’s real estate boom may finally be losing steam.
The average price of a home in Canada recently topped $310,000, a gain of 60% in real terms in just nine years. Canadians haven’t witnessed a boom like this since just after World War II—and it’s clearly not sustainable. If prices continued to rise at their current rate, the average house would fetch $10 million by 2037. Since that doesn’t seem plausible, the big question is not whether the current boom will stop, but when.
The answer depends on what city you live in. A recent report from Scotiabank notes that each market has to be evaluated on its own merits.
Toronto, for instance, has seen a big rise in home prices over the past decade, but it’s happened fairly gradually, with prices going up by about 4% a year. The steady trend suggests that current prices are sustainable, at least for the short term. In comparison, the increases in Vancouver, Saskatoon, Calgary and Edmonton have been far larger and more sudden. “There is growing evidence of overvaluation in home prices in some parts of the country,” writes Adrienne Warren, a senior economist at Scotiabank. She adds that she anticipates a “cooling in both housing demand and price appreciation in the months ahead” across Canada.
In a similar vein, a new report from Royal Bank proclaims that housing affordability has recently “suffered one of its largest and most broadly based quarterly deteriorations” since the mid-1990s. “Conditions from Manitoba eastward are not a cause for concern,” writes Derek Holt, RBC assistant chief economist, “but conditions in Saskatchewan, Alberta and British Columbia warrant caution.”
William Strange, a professor of urban economics and real estate at the University of Toronto, says the key factor for real estate forecasters to look at is affordability, which measures the percentage of our incomes that we spend on our homes. Affordability is vital, because when residents can no longer afford local homes, prices stop rising.
A lack of affordability led to the 1990 housing bust in Toronto. At that time, the average Torontonian with a detached bungalow was spending just over 60% of his income on housing. Right now, Torontonians are spending about 45% of their incomes on housing. In Vancouver, owners of detached bungalows spend an incredible 71% of their incomes on housing, while in Calgary they spend 45%, and in Edmonton 42%.
Given the dismal track record of real estate prognosticators, Strange is reluctant to offer any predictions, but he does say that Calgary and Vancouver look to be on the most wobbly ground. “In Calgary, there’s tons of land that they can build on, so one would think that the price of building new housing would be a ceiling on how high prices can go. That’s a market I would worry about.”
It’s hard to say how the boom will end, but history shows that after a big price run, homes can decline in value for a decade. So how can you protect yourself? Simple, says Strange. Buy a house that you can comfortably afford using a traditional mortgage. “Buy a house you like in a neighborhood you like and stay there,” he says. “Then no matter what the market does, you’ll do alright.”
From the November 2007 issue of MoneySense magazine
Even banks are admitting that after a decade of unthrottled expansion, Canada’s real estate boom may finally be losing steam.
The average price of a home in Canada recently topped $310,000, a gain of 60% in real terms in just nine years. Canadians haven’t witnessed a boom like this since just after World War II—and it’s clearly not sustainable. If prices continued to rise at their current rate, the average house would fetch $10 million by 2037. Since that doesn’t seem plausible, the big question is not whether the current boom will stop, but when.
The answer depends on what city you live in. A recent report from Scotiabank notes that each market has to be evaluated on its own merits.
Toronto, for instance, has seen a big rise in home prices over the past decade, but it’s happened fairly gradually, with prices going up by about 4% a year. The steady trend suggests that current prices are sustainable, at least for the short term. In comparison, the increases in Vancouver, Saskatoon, Calgary and Edmonton have been far larger and more sudden. “There is growing evidence of overvaluation in home prices in some parts of the country,” writes Adrienne Warren, a senior economist at Scotiabank. She adds that she anticipates a “cooling in both housing demand and price appreciation in the months ahead” across Canada.
In a similar vein, a new report from Royal Bank proclaims that housing affordability has recently “suffered one of its largest and most broadly based quarterly deteriorations” since the mid-1990s. “Conditions from Manitoba eastward are not a cause for concern,” writes Derek Holt, RBC assistant chief economist, “but conditions in Saskatchewan, Alberta and British Columbia warrant caution.”
William Strange, a professor of urban economics and real estate at the University of Toronto, says the key factor for real estate forecasters to look at is affordability, which measures the percentage of our incomes that we spend on our homes. Affordability is vital, because when residents can no longer afford local homes, prices stop rising.
A lack of affordability led to the 1990 housing bust in Toronto. At that time, the average Torontonian with a detached bungalow was spending just over 60% of his income on housing. Right now, Torontonians are spending about 45% of their incomes on housing. In Vancouver, owners of detached bungalows spend an incredible 71% of their incomes on housing, while in Calgary they spend 45%, and in Edmonton 42%.
Given the dismal track record of real estate prognosticators, Strange is reluctant to offer any predictions, but he does say that Calgary and Vancouver look to be on the most wobbly ground. “In Calgary, there’s tons of land that they can build on, so one would think that the price of building new housing would be a ceiling on how high prices can go. That’s a market I would worry about.”
It’s hard to say how the boom will end, but history shows that after a big price run, homes can decline in value for a decade. So how can you protect yourself? Simple, says Strange. Buy a house that you can comfortably afford using a traditional mortgage. “Buy a house you like in a neighborhood you like and stay there,” he says. “Then no matter what the market does, you’ll do alright.”
Tuesday, March 4, 2008
Are Full-Service Real Estate Agents Worth the Extra Money?
Consumers are always looking for ways to save money, and paying real estate commissions can amount to tens of thousands these days. Not an insignificant sum to most people. Is it worth it to hire a full-service real estate brokerage over a discount service? Reasonable question. It's one we hear often.
Type of Marketplace
If you're in a seller's market right now, homes are probably selling the minute they hit the multiple listing service. A one-eyed sheep with two paws tied behind her back could plop a home into MLS and get an offer. Will it be the highest price you could get?
Buyer's markets exist when inventory exceeds the supply of buyers. In these markets, some homes aren't selling at all. This is where expertise and extra work pays off. Listings that sell at top price are typically those exposed to the most buyers, which are priced well, marketed well and show well.
MLS and the Internet
I cringe when I see new listings hit MLS without a photograph because I know that agents and buyers are passing them over without a second thought. Many multiple listing services accept 8 to 12 photographs nowadays. For that reason, many full-service agents hire professional photographers and shoot double the photos required. The pros spend considerable time sorting through photos to select those with the most light, the best angles, sharpest contrast & color. Photos are cropped and resized to accentuate positive attributes. Each photograph is entered into MLS with a full-length enticing description.When I see a photograph taken by the multiple listing service instead of a pro or the agent, I also see a lazy real estate agent who doesn't care enough or isn't getting paid enough to properly market their client's property.
Signage
Lots of mom 'n' pop operations and discount brokerages don't spend money on professional signs because they don't believe in it or they can't afford it. Good signage is free advertising. Many full-service firms will advertise: Main office phone number. Agent's personal cell phone or voice mail number. Web site for more information. Virtual tour links. Specific information that makes this home different from others in the area
Marketing Materials
Full-service companies tend to project quality, and that means four-color flyers and four-color direct mail pieces. The days of hiring neighborhood kids to toss photocopies on neighbors' front steps are gone. Full-service marketing is first class.
Open Houses
Not all homes are right for an open house, but those that are require finesse. This means working the buyers who come through by pointing out impressive features of the home without making the buyer feel oppressed or hounded, and that in itself is an art. It requires the service of an experienced sales person. Many discount brokers refuse to hold homes open.
Full-service agents counsel sellers. They find out what made the seller decide to buy the home and how that moment happened. Then, they employ that knowledge at open houses. For example, suppose a seller said that moment came when she first stood gazing out at the pool. When she turned to her husband and gasped, "I can't believe we can afford to buy this home." Good sales people at an Open would ask buyers to stand in that same spot by the pool. Then, they'd share the seller's first experience verbatim.
Negotiation
Real estate is an extremely competitive business, and there are many agents fighting for the same listings. A full-service agent who wins the listing is probably a good negotiator, a person you want on your side during offer negotiations. Think about it. Agents who can persuade you to pay what they feel is reasonable, will probably persuade a buyer to pay your price. Ultimately, that means more money for you.
Final Sales Price
Sometimes full-service agents lose listings because the seller was promised a higher price based on hot air and a lower commission. It's these listings that often show up in MLS a month later with reduced prices. The amount of the price reductions, not surprisingly, tend to exceed the difference in commissions between the dualing agencies! In these scenarios, sellers received fewer services and ended up losing money on the sale as well.
Monday, March 3, 2008
Affordable Condo Units Draw Eyes Eastward
By Derek Raymaker - Globe and Mail
Toronto is among the most extraordinary condominium markets in North America, not so much because of the quality of the suites but the vast array of pockets that seem to perform well.
As we look at the lesser known condo submarkets around the Greater Toronto Area, it’s apparent that the city’s proud neighbourhoods have played a role in staking out markets beyond downtown.
The eastern reaches of Toronto include some of the most stridently independent neighbourhoods, including The Beaches, Riverdale, Leslieville and the Danforth. Each of these communities has endured its own peaks and valleys in terms of affluence, and all are in demand today among younger buyers. In the case of The Beaches, older empty nesters are drawn to the shoreline neighbourhood.
On the fringes of these neighbourhoods are Kingston Road and Eastern Avenue. Both arterial roads are flush with heavy traffic during the day, but they also have surplus commercial and industrial buildings ideal for lofts or more experimental condominium developments.
The east end has become a test canvas of sorts for art-deco, mid-rise designs reflecting South Beach and other maritime styles. Certainly, the buyers who gravitate to the east end are more likely to take a chance on designs that reflect their free-spiritedness rather than the standard cookie-cutter suites of downtown or the harbour front.
But the kicker for most buyers is, as always, affordability. At the end of 2007, the average price for this neighbourhood stood at $402 a square foot, pretty close to the Greater Toronto average of $399, according to data collected by RealNet Canada. That’s up 17% year over year.
The average suite in this neighbourhood is quite a bit larger than the average in Toronto, and prices are higher, too, at an average of $379,601, compared with $355,998 in Greater Toronto. That’s also a cool hundred grand higher than the area’s average price of $276,992 in 2006.
Hyde Park Homes has been active in the east end, starting with a successful 18-unit infill townhouse redevelopment in the Upper Beaches and following it up with Leslieville Lofts just north of Queen Street East at Broadview Avenue.
Leslieville Lofts will be a new eight-storey building on the site of a former auto-body shop made up of 157 suites and 14 two-storey townhouses, with prices ranging from $180,000 for 470 square feet to $1.4-million for a 2,265-square-foot penthouse.
Leslieville Lofts, which was launched last November, features open-concept spaces and vast terraces on the seventh floor. The townhouses will be zoned as live/work units.
If you’re looking for spectacular views, Minto’s Skyy project at the top of Pottery Road near Danforth Avenue will soar 25 storeys above the Don River Valley. It features contemporary open-concept designs suited for younger buyers, but it’s also been a big hit with local residents who want to cash in on their valuable houses but stay in the same neighbourhood. The project is now under construction.
Prices here range from $189,000 for 522 square feet to $1.5-million for a 4,482-square-foot penthouse with two terraces and an enormous living area with a curved bank of floor-to-ceiling windows.
An authentic loft project - living space that is converted from industrial use - that has turned a lot of heads for its shape-shifting design and intriguing courtyard is the Printing Factory Lofts, developed by Beaverbrook Homes. This 254-unit project will also include 44 stacked townhouses with street-level access on Boston Avenue, just north of Queen. Prices here range from $189,000 for 573 square feet to $491,000 for 1,235 square feet, with extensive landscaping in common outdoor areas as well as private yards.
Toronto is among the most extraordinary condominium markets in North America, not so much because of the quality of the suites but the vast array of pockets that seem to perform well.
As we look at the lesser known condo submarkets around the Greater Toronto Area, it’s apparent that the city’s proud neighbourhoods have played a role in staking out markets beyond downtown.
The eastern reaches of Toronto include some of the most stridently independent neighbourhoods, including The Beaches, Riverdale, Leslieville and the Danforth. Each of these communities has endured its own peaks and valleys in terms of affluence, and all are in demand today among younger buyers. In the case of The Beaches, older empty nesters are drawn to the shoreline neighbourhood.
On the fringes of these neighbourhoods are Kingston Road and Eastern Avenue. Both arterial roads are flush with heavy traffic during the day, but they also have surplus commercial and industrial buildings ideal for lofts or more experimental condominium developments.
The east end has become a test canvas of sorts for art-deco, mid-rise designs reflecting South Beach and other maritime styles. Certainly, the buyers who gravitate to the east end are more likely to take a chance on designs that reflect their free-spiritedness rather than the standard cookie-cutter suites of downtown or the harbour front.
But the kicker for most buyers is, as always, affordability. At the end of 2007, the average price for this neighbourhood stood at $402 a square foot, pretty close to the Greater Toronto average of $399, according to data collected by RealNet Canada. That’s up 17% year over year.
The average suite in this neighbourhood is quite a bit larger than the average in Toronto, and prices are higher, too, at an average of $379,601, compared with $355,998 in Greater Toronto. That’s also a cool hundred grand higher than the area’s average price of $276,992 in 2006.
Hyde Park Homes has been active in the east end, starting with a successful 18-unit infill townhouse redevelopment in the Upper Beaches and following it up with Leslieville Lofts just north of Queen Street East at Broadview Avenue.
Leslieville Lofts will be a new eight-storey building on the site of a former auto-body shop made up of 157 suites and 14 two-storey townhouses, with prices ranging from $180,000 for 470 square feet to $1.4-million for a 2,265-square-foot penthouse.
Leslieville Lofts, which was launched last November, features open-concept spaces and vast terraces on the seventh floor. The townhouses will be zoned as live/work units.
If you’re looking for spectacular views, Minto’s Skyy project at the top of Pottery Road near Danforth Avenue will soar 25 storeys above the Don River Valley. It features contemporary open-concept designs suited for younger buyers, but it’s also been a big hit with local residents who want to cash in on their valuable houses but stay in the same neighbourhood. The project is now under construction.
Prices here range from $189,000 for 522 square feet to $1.5-million for a 4,482-square-foot penthouse with two terraces and an enormous living area with a curved bank of floor-to-ceiling windows.
An authentic loft project - living space that is converted from industrial use - that has turned a lot of heads for its shape-shifting design and intriguing courtyard is the Printing Factory Lofts, developed by Beaverbrook Homes. This 254-unit project will also include 44 stacked townhouses with street-level access on Boston Avenue, just north of Queen. Prices here range from $189,000 for 573 square feet to $491,000 for 1,235 square feet, with extensive landscaping in common outdoor areas as well as private yards.
Sunday, March 2, 2008
Home organization: 8 storage solutions
How to find hidden storage spaces, and use them to their full potential when organizing your home.
We grow accustomed to our furnishings and how they're arranged, which can limit our perception of the architecture of a room. Imagine your room empty, or move furniture to another space for a day or two. The radically new perspective will reveal existing niches or areas where built-ins could improve the storage capacity and aesthetics of a room.
Make it made-to-order
In a small space, decreasing the square footage of a room may sound like heresy, but sometimes shaving off a few feet by building a wall of closets or cabinets can solve your storage dilemmas and improve the proportions of a room. Though expensive, custom built-ins utilize space efficiently.
A designer can provide invaluable help in adding a cabinet to a bathroom or building in an entire room, like a den/home office/guest room. Common built-in solutions: closet organizers, entertainment centres, home office workstations, bookshelves, and shelf niches between wall studs in tub and shower areas.
Pick furnishings that hide
Murphy beds, chairs, tables, cots -- anything that folds up and can be stored away, hung on a hook or slid under a bed saves space. From a low-tech drop-leaf table to a high-end, built-in pop-up countertop that conceals small appliances in a kitchen island, your imagination and budget are the only limits to creating double-duty furnishings.
Look up
Wall space is an organizer's best friend. Go to great heights with floor-to-ceiling built-in shelves and cabinets (stash a stepladder nearby for easy access), or opt for a sleeping loft in a bedroom. In the kitchen, mount a second bank of cabinets above existing cabinets, or use the space to stash seldom-used oversize items.
Look down
Open up the space under a set of stairs and install shelves for books or display items, a workspace desktop, TV cabinet or closet organizing components. (Check with a qualified designer or architect for structural advice before removing any walls.) Awkward areas under the eaves are ideal for low dressers, cabinets or wall-mounted shelves. Alternatively, turn the area into a closet by running a rod from wall to wall and hanging a curtain.
Think big
Don't underestimate a small space. A good designer can help you turn impossibly narrow alcoves into functional areas, especially when it comes to small bathrooms and kitchens.
Shelving
Look at all vertical surfaces to see where a shelf would fit: for instance, above a mirror, door or window; a foot or so below the ceiling around the perimeter of a room; or from floor to ceiling between zones in an open concept room.
Hooks
In closets, on doors and on almost every wall are a few inches of vertical space crying out for a hook for towels, purses, scarves, backpacks, hats, utensils, tools, keys, cups and much more.
Closets
Is your linen closet a luxury and a home office a necessity? If so, transfer bed linens to the rooms where they're used and towels to bathroom shelves. Then have a desktop built to size and installed in the now-empty closet. Add a few shelves above and a drawer unit on rollers below, pull up a chair from a nearby room and you're in business.
We grow accustomed to our furnishings and how they're arranged, which can limit our perception of the architecture of a room. Imagine your room empty, or move furniture to another space for a day or two. The radically new perspective will reveal existing niches or areas where built-ins could improve the storage capacity and aesthetics of a room.
Make it made-to-order
In a small space, decreasing the square footage of a room may sound like heresy, but sometimes shaving off a few feet by building a wall of closets or cabinets can solve your storage dilemmas and improve the proportions of a room. Though expensive, custom built-ins utilize space efficiently.
A designer can provide invaluable help in adding a cabinet to a bathroom or building in an entire room, like a den/home office/guest room. Common built-in solutions: closet organizers, entertainment centres, home office workstations, bookshelves, and shelf niches between wall studs in tub and shower areas.
Pick furnishings that hide
Murphy beds, chairs, tables, cots -- anything that folds up and can be stored away, hung on a hook or slid under a bed saves space. From a low-tech drop-leaf table to a high-end, built-in pop-up countertop that conceals small appliances in a kitchen island, your imagination and budget are the only limits to creating double-duty furnishings.
Look up
Wall space is an organizer's best friend. Go to great heights with floor-to-ceiling built-in shelves and cabinets (stash a stepladder nearby for easy access), or opt for a sleeping loft in a bedroom. In the kitchen, mount a second bank of cabinets above existing cabinets, or use the space to stash seldom-used oversize items.
Look down
Open up the space under a set of stairs and install shelves for books or display items, a workspace desktop, TV cabinet or closet organizing components. (Check with a qualified designer or architect for structural advice before removing any walls.) Awkward areas under the eaves are ideal for low dressers, cabinets or wall-mounted shelves. Alternatively, turn the area into a closet by running a rod from wall to wall and hanging a curtain.
Think big
Don't underestimate a small space. A good designer can help you turn impossibly narrow alcoves into functional areas, especially when it comes to small bathrooms and kitchens.
Shelving
Look at all vertical surfaces to see where a shelf would fit: for instance, above a mirror, door or window; a foot or so below the ceiling around the perimeter of a room; or from floor to ceiling between zones in an open concept room.
Hooks
In closets, on doors and on almost every wall are a few inches of vertical space crying out for a hook for towels, purses, scarves, backpacks, hats, utensils, tools, keys, cups and much more.
Closets
Is your linen closet a luxury and a home office a necessity? If so, transfer bed linens to the rooms where they're used and towels to bathroom shelves. Then have a desktop built to size and installed in the now-empty closet. Add a few shelves above and a drawer unit on rollers below, pull up a chair from a nearby room and you're in business.
Saturday, March 1, 2008
Social and Professional Networking
Bill Gates links up with LinkedIn
By Associated Press
February 29, 2008
SAN FRANCISCO (AP) - Microsoft Corp.'s big bet on Facebook's online social network isn't stopping Chairman Bill Gates from promoting other popular Internet hangouts.
Gates is helping out LinkedIn Corp.'s online professional network by setting up a profile on the service and posing a question to help draw more attention to a makeover of the Web site's front page.
The question, scheduled to be posted Thursday, will solicit suggestions on the best way to encourage more young people to pursue careers in science and technology.
Meanwhile, LinkedIn will encourage its 19 million members to try out a new tool that will let them broadcast their daily activities to their connections. The "status" feature copies one of the top applications on Facebook's site, which revolves around a more playful premise than LinkedIn's buttoned-down atmosphere.
Gates plans to use LinkedIn's status feature, although he decided against listing "trying to buy Yahoo" as his current activity. He instead will start off by letting everyone know "Bill is checking out LinkedIn."
The decision to take a closer look at LinkedIn might please a few industry analysts who have argued Microsoft would be better off buying several up-and-coming Internet start-ups like LinkedIn instead of pursuing its current bid to acquire slumping Yahoo Inc. for more than $40 billion.
Although LinkedIn is frequently mentioned as an attractive takeover candidate, the Mountain View-based company so far has indicated it is more likely to make an initial public offering of stock during the next year or two. LinkedIn spokeswoman Kay Luo declined to comment on Microsoft's possible interest.
Microsoft late last year invested $240 million for a 1.6 percent stake in Palo Alto-based Facebook Inc., whose 66 million members make it the Internet's second largest social network behind News Corp.'s MySpace.
Gates is among Facebook members, although he reportedly stopped using the site recently because he was tired of sifting through the thousands of requests from requests from strangers who wanted to befriend him. Microsoft declined to comment Wednesday about Gates' status on Facebook.
LinkedIn offers privacy controls that will enable Gates to block requests to connect with him on the network.
Gates probably will want to use that tool because LinkedIn members have a keen interest in the billionaire. Even before he set up his LinkedIn profile, Gates was the most searched person on the site, edging out Democratic presidential candidates Barack Obama and Hillary Clinton.
http://www.linkedin.com/in/bottandsold
By Associated Press
February 29, 2008
SAN FRANCISCO (AP) - Microsoft Corp.'s big bet on Facebook's online social network isn't stopping Chairman Bill Gates from promoting other popular Internet hangouts.
Gates is helping out LinkedIn Corp.'s online professional network by setting up a profile on the service and posing a question to help draw more attention to a makeover of the Web site's front page.
The question, scheduled to be posted Thursday, will solicit suggestions on the best way to encourage more young people to pursue careers in science and technology.
Meanwhile, LinkedIn will encourage its 19 million members to try out a new tool that will let them broadcast their daily activities to their connections. The "status" feature copies one of the top applications on Facebook's site, which revolves around a more playful premise than LinkedIn's buttoned-down atmosphere.
Gates plans to use LinkedIn's status feature, although he decided against listing "trying to buy Yahoo" as his current activity. He instead will start off by letting everyone know "Bill is checking out LinkedIn."
The decision to take a closer look at LinkedIn might please a few industry analysts who have argued Microsoft would be better off buying several up-and-coming Internet start-ups like LinkedIn instead of pursuing its current bid to acquire slumping Yahoo Inc. for more than $40 billion.
Although LinkedIn is frequently mentioned as an attractive takeover candidate, the Mountain View-based company so far has indicated it is more likely to make an initial public offering of stock during the next year or two. LinkedIn spokeswoman Kay Luo declined to comment on Microsoft's possible interest.
Microsoft late last year invested $240 million for a 1.6 percent stake in Palo Alto-based Facebook Inc., whose 66 million members make it the Internet's second largest social network behind News Corp.'s MySpace.
Gates is among Facebook members, although he reportedly stopped using the site recently because he was tired of sifting through the thousands of requests from requests from strangers who wanted to befriend him. Microsoft declined to comment Wednesday about Gates' status on Facebook.
LinkedIn offers privacy controls that will enable Gates to block requests to connect with him on the network.
Gates probably will want to use that tool because LinkedIn members have a keen interest in the billionaire. Even before he set up his LinkedIn profile, Gates was the most searched person on the site, edging out Democratic presidential candidates Barack Obama and Hillary Clinton.
http://www.linkedin.com/in/bottandsold
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