The House Vs. Condo Debate

The age old house vs. condo debate and here to discuss it/debate it for you is RateHub Canada. So sit back with a glass of tea or wine, which ever is your preference, I won't judge and enjoy!

Living in, or close to, a major city like Toronto has both pros and cons – while it’s exciting to be in the center of the action, it can also be expensive to own your own property, especially if you’re looking at houses.  A condo, on the other hand, lands you in the heart of the city at a fraction of the cost; this can be appealing to many people, including first time home buyers.

“It’s easier to break into the housing market [with a condo],” said Mortgage Broker Dara Fahy, "and you're buying prime real estate in the heart of the city."

However, condominiums tend to depreciate in value long-term, whereas houses typically appreciate.

"There's a lot of value in buying a piece of property and land,” said Fahy, “especially in urban areas where land is at a premium — there's a very good chance for appreciation.”

It’s also important to think about the upkeep of your property long-term.  Condos are low-maintenance, as your condo board typically takes care of any and all repairs.  However, this does come at a cost through your monthly maintenance fees.  A house, on the other hand, doesn’t come with a monthly fee other than your mortgage payment, but you could get hit with a hefty bill should something go wrong.

You might pay $400 a month in maintenance fees for your condo, which adds up to about $5,000 a year, but a house could end up costing you much more.

“A condo will affect your monthly cash flow steadily as you're paying maintenance fees, but you won't be getting huge repair bills,” said Fahy.

When deciding whether a house or condo is right for you, it’s also a great idea to use a mortgage affordability calculator to determine what kind of budget you’re working within.  While you might dream of owning a house close to your downtown job, it might be more realistic to look at a house in the suburbs or a condo in the city.

In addition to the financial considerations, there are a number of other factors—including lifestyle tradeoffs—to consider when deciding which type of property best suits you.

Do you want a lot of control over your property when it comes to renovations and landscaping? Do you prefer to drive or walk to get where you’re going?  Do you value privacy or do you like being surrounded by people?

Choosing a condo might put you in the heart of the city, but you're giving up a certain amount of privacy and space for that prime location.  On the other hand, you could head into the suburbs where houses become more affordable, but you're trading the convenience of city life to get that price point.

In the end, it’s important to weigh the pros and cons of each property type and consider how these might affect your everyday life.

Are you more partial to houses or condos?  Do you currently live in the one you prefer? We would love to hear from you!

For more information make sure to follow RateHub on Twitter @RateHub_Canada and like them on Facebook.

Oh and just in case you missed our last guest post swap, no worries, just click here to find out 5 Questions You Should Ask Your Mortgage Broker and click here for a fun post about Coloured Kitchens.

See you next month!

Another Happy Client

At the end of last week my client closed on his condo and he couldn't be happier! Finding a condo to lease downtown this time of year is already difficult on it's own, but we were also on a huge time crunch. Mark was a referral from a past client and as a Realtor, that is the biggest compliment you can receive and my business survives on referrals. So a big thank you goes out to Ramona and congratulations to Mark, hope you enjoy the new place!

Here's the happy client:




Thanks Mark for the kind words and good luck with the move!

House vs. Condo

Before buying a property to live in, you have an important decision to make, do you buy a house or condo? There's no right or wrong answer, it depends on your preference, lifestyle, budget and future plans. Pop over to my guest post at Rate Hub to give you some food for thought before making the big decision, just click here!

What is your preference?

Development at 299 Campbell Ave

As if the Junction Triangle is not experiencing enough revitalization and redevelopment, there might be one more project to add to the roster. In case you're not familiar with the neighbourhood or projects happening, I'll briefly fill you in. There is the Cornerstone Lofts that will be located in the church at Perth and Wallace as well as a new building and there is the Automotive Development Project, starting with The Sterling Lofts. Also, just to the east of the Junction Triangle, on the corner of Lansdowne and Dupont, is a huge development happening of new condo buildings, townhouses, hard lofts and a Metro. It's only a matter of time before a Starbucks shows up, and we all know what that means.

So here is the latest on the development proposal of 299 Campbell Ave (corner of Dupont Ave), please keep in mind that no plans have been submitted to the City, this was just a meeting with the developer and the residents:

• mixed-used commercial and residential building
• podium of 6 storeys, step up to 8 storeys in the back and further up and back to 18 storeys
• mix of single, one, two and 3 bedroom units
• 2 levels of retail/commercial & office space
• 14 live/work units along Campbell Ave
• 3 levels of underground parking
• about 34,000 sq ft of commercial
• about 22,000 sq ft of office/employment space
• 12,000 sq ft of retail
• 225,000 sq ft of residential space
• Developer is TAS Design Build
• Architect is Stephen Teeple
• Construction to ideally start 24-36 months from now

I couldn't be more excited about all the developments as I live in the area and I'm totally up for the improvement. It helps everyone in the neighbourhood by bringing up property value, creating conveniences within the neighbourhood, bringing the community together and giving money back to local businesses.

I will be monitoring this proposal and project closely and keep you all updated with any new developments.

In the meantime, here are some renderings of the project.....

 Preliminary Site Plan

Preliminary Context Plan

What do you think? Are you a resident of the Junction Triangle and feel this project will be good for our neighbourhood? Would love to hear from you!


***Information and pictures via Junction Triangle***

Monthly Newsletter: May

I'm feeling a bit repetitive, but the Toronto real estate market is still climbing to new heights with no slowing down in the near or distant future as proven by the April 2012 numbers. 10,350 transactions were reported through the Toronto MLS which is 18% higher then April 2011, you read it right, that's not a typo. The big winner here, which I'm sure will come as no shock considering there's offer deadlines, left, right and center, single detached homes. This category saw transactions up by 22% when compared to a year ago with semi detached homes coming in at 15%. I think the single detached home wins by a long shot. Clearly there is still a ton of demand and just not enough inventory to satisfy the appetite of the eager buyer. The not so surprising media doom and gloom is back, I guess ratings are low these days, but that's not stopping people. I'm not trying to say that Toronto or even Canada is immune to a cooling market, but there's no "bubble" waiting to burst with an apocalyptic outcome.

Our immigration is at an all time, rates are low and generation Y is either ready to upgrade or buy their first property. Not to mention our banks are strong too. Bloomberg came out with a report this week, talking about the world's 10 strongest banks and guess which country had 4 banks on that list, you guessed it, Canada. No other country dominated the list like Canada. Rounding out the top 20 are 3 banks from the US and 4 European banks. Canada's banks are tops, we should be proud and not scared.

 Here's the list of our 4:

• CIBC #3
• Toronto-Dominion Bank #4
• National Bank of Canada #5
• Royal Bank of Canada #6

Now that's impressive, wouldn't you say? My bank made the list, did yours?

So now that we got that out of the way, let's get more in depth with our numbers:

• Average selling price in the GTA......$517,556, up 8.5% when compared to April 2011
• Average selling price in the 416 area...$568,436, up almost 8% when compared to the same time last year
• Condo market showed a steady price growth at 4% from last year

Moral of the story, keep your debts in line, look towards the future and plan for it now, financially and don't over leverage yourself. Best advice I can give!

Here are some more details on the Toronto real estate market for April 2012 and the outlook for the remainder of 2012.


Have a great May!

Your friend in real estate,


***Statistics via TREB***
***Image via SCRENews***

One Eleven Condos

Yesterday I had the privilege of attending the sneak preview for a new condo project in Toronto, One Eleven condos. Idea workshop put together a great event with lots of information and some yummy goodies, I mean how can you say no to dessert in a jar? 

Anyway, I'm getting a bit off topic here, the developer, Harhay Developments is creating an intimate condo project with tons of room for your creativity, this is not your average cookie cutter condo! I had the pleasure of speaking with the Harhay family, as this project is definitely a family affair. Katherine, who looks after design and just got back from Italy, took the time to really explain her decision making process behind the numerous palettes she puts together. She takes a lot of her inspiration from Italy, where they are 2 years ahead of us when it comes to anything design related. The idea for the units is to create a blank canvas for buyers to inject pops of colour and their own personality into their space, making it truly unique. Chris and I discussed the ever changing King W neighbourhood and how this project fits into the scope of what's going on around.

The public grand opening is just around the corner, happening Saturday April 28th, 2012 at noon and I wouldn't expect anything less then a line up around the block. Don't miss your chance to own one of these beauties as the building has already sold approximately 100 of the 255 units available with some floorplans already sold out! You know what they say, you snooze, you lose.

Here are some of the details I know about the project:

Location-Corner of Bathurst and Adelaide, Toronto
Starting Price- Mid $200,000's
Ceiling Finish- 9' exposed concrete ceilings
Parking- $39,000 only available for units 600 sq ft or more
Lockers- $4,000
Maintenance fee- $0.48/sq ft excludes heat and hydro
Occupancy- October 1, 2014
Deposit Structure

• $5,000 on signing
• Balance of 5% in 30 days
• 5% in 60 days
• 5% in 120 days
• 5% on closing

Building Features

• Party and meeting rooms
• 17 storeys of studios, lofts and penthouses
• Retail and office space below
• Created by awarding winning Core Architects
• Guest suites
• Floor to ceiling windows
• Pre-finished engineered wood floors
• Porcelain floor tile in bathroom
• European style kitchen cabinetry
• Stone surface counter top
• Front loading washer and dryer
• Stainless steel fridge, gas stove, integrated dishwasher, microvent microwave oven
• 8 hour concierge
• Gas BBQ connection provided

Meet Me On The 6th

• Artful urban retreat
• Open concept social spaces
• Variety of entertainment and lounging areas
• Multi-use patio, featuring a dining and kitchen area
• Library and lounge with mini theater
• BBQ and fire pit
• Haven for any social gathering

Here are some additional photos, sorry for the bad photography, I never said I was a photographer!

Lobby



2 Storey Loft, one of 12 available


Endless Finishes To Choose From


My Favourite Finishes, love the 2 tone, 2 texture cabinets


Model Suite:

Bathroom




Den With A Closet!


Kitchen



Living Area


Bedroom


Thanks again to everyone for a great event and for inviting me, I must say I feel pretty special right now.
Contact me for more information and to choose from the 41 floorplans available, I'm always here to help!

***Logo via BuzzBuzz***

Mid April Market Report

I'm back with more Toronto real estate numbers for you.....are you sick of them yet? Since my last market update, there hasn't been much change. It's still on fire with no signs of slowing down as we proceed into the spring market.

So let's cut straight to the point and review the Toronto real estate market number's from TREB's report:

• 4,557 transactions reported through the MLS during the first 14 days of April, up by almost 7% from April 2011
• In the City of Toronto, new listings for low-rise home types during the first half of April where down when compared to last year
• Average selling price in the 416 area is.......$553,104, up 2% from the same period last year
• Average selling price in the GTA is.......$506,954, up 5% from April 2011

Let's just say that conditions are still favourable for sellers, as I'm sure you are all seeing over the media. The even better news, is that the Toronto real estate market will continue it's upward climb over the next 3 years, as reported by Central 1 Credit Union, with gains predicted at 4% both this year and next. Hopefully, if this prediction comes true, believe me, I'm keeping my fingers and toes crossed being a home owner myself, the average cost of a Toronto home in 2014 would be $523,000!!!! Now you're probably thinking, what about interest rates? There must be a hidden catch, well, the report also made these statements based on a 5 year rate of 5.7% by 2013. As Helmut Pastrick Central 1 chief economist said, "While interest rates are expected to climb further in 2014, they are likely to remain at historic lows".

What about the condo market you say? There has been a lot of bad press recently about an oversupplied condo market, a bubble waiting to burst. During the first 14 days, condos also saw gains that surpassed last years.  The average selling price in the 416 area is $364,516, up 4% since last year. With high demand of renters wanting to live closer and closer to where they work, the condo market will be well stocked for the future demand to come. Let's face it, our population is growing, there are plenty of new immigrants coming into Canada, still and Canada remains an attract country for foreign investors. This is a recipe for success in our condo market. As Helmut Pastrick said, "It looks like that market will perform reasonably well. There may be some oversupplying coming but I think the market will generally handle that....." Pastrick further said, "In fact, with the GTA's population expected to increase by about 45% over the next 25 years, the need to go up, rather then out, is likely to keep the demand for condos steady."

It basically looks like the market is not slowing down anytime soon, so you might as well make the best of it as a buyer, by taking advantage of the historically low interest rates or as a seller and receiving top dollars for your investment. Which side are you on?

Well, I think I've said an earful as usual, so I'm done, for now. What are your thoughts? Would love to hear from!
***Image via Flickr***

TUX Condos By Great Gulf

This week I attended the Great Gulf Black Tie Agent Event for the launch of one of Toronto's hottest preconstruction condos, TUX! This event gives you the first opportunity to secure suites. I am limited to the sale of 5 suites only, so don't wait and miss out! Here are some details about the project, for more information and floor plans, please make sure to contact me.

"In Toronto's vibrant Entertainment District. Pure Design. Absolute precision. The cutting-edge architectural design of TUX is obsessively spectacular. 42 storeys of contemporary elegance. Black and white with a passionate stroke of copper-hued detailing. A soaring, double storey ground floor radiates light out onto the street, and accentuates the brilliant 3D kinetic art installation that is suspended high above the floor. TUX is choreographed contrasts. A new vision in urban architecture."

Here Are The Details:

• Lot's of floor plans to choose from....contact me to see them, first come first serve basis
• Located on the southwest corner of King St W and Blue Jays Way, Toronto, in the heart of the Entertainment District

Deposit Structure:

• Total 25%
• $5,000 on signing
• Balance of 5% in 30 days
• 5% in 60 days
• 5% in 120 days
• 5% in 360 days
• 2.5% in 720 days
• 2.5% on occupancy
• Separate deposit structure for international residents

Building Facts:

• 42 Storeys
• Built by Great Gulf, building for the last 35 years
• Occupancy date May 2016
• Ceiling heights of approximately 9 feet
• Choice of designer-selected pre-finished engineered flooring throughout
• 24 hour concierge
• Amenities on the 7th and 42nd floor
• Underground parking
• Maintenance fee of $0.53 per square foot
• Parking available for 2 bedroom suites only at $55,000
• Lockers available at $5,000
• TTC at your door step
• Steps to King St W cafes, restaurants and trendy bars
• Starting from the mid $200,000's
• Studios to 3 bedrooms available and everything in between
• Pre-wired for cable TV and telephones
• Pre-wired for high speed internet access

Location, Location, Location:
-TUX will be neighbouring the following projects

• M5V
• Victory
• Six50 King
• Festival Tower (TIFF Lightbox)
• Cinema Tower (finishing soon)
• Mercer (Under construction)
• Theatre Park (Under construction)
• The Thompson Hotel & Residences

The Amenities:

• 7th and 42nd floor
• 7th floor amenities include juice bar, yoga room, weight room, cardio room, fitness room, media lounge, ping pong room, private lounge known as "The Seven" and outdoor lounge
• 42nd floor "Skytop" amenities include the "Skytop Lounge" with indoor seating, a dining room and bar, outdoor cabana deck with hot and cold plunge pools, lounge seating, dining areas and BBQ

"The Seven" Amenity Plan


"Skytop" Amenity Plan


Skytop Lounge


Rooftop Pool & Cabana Deck



Cook:

• Contemporary kitchen cabinetry custom designed by Figure 3, in a variety of colours
• Solid surface stone kitchen countertop
• Glass back splash
• Single bowl stainless steel under mounted sink
• Contemporary design faucet with integrated pull-out head
• Ceiling mounted track lighting
• Stainless steel fridge, slide in electric range with convection oven, microwave and dishwasher
• Integrated hood fan insert

Wash:

• Contemporary washroom vanity in a selection of colours, featuring a white solidtech countertop basin
• Polished chrome side mounted faucet
• Full width mirror above vanity
• Recessed ceiling light(s)
• Choice of porcelain floor tiles
• Frameless glass shower enclosure, as per plan
• Accessory package including towel bar and toilet paper holder
• Full height white ceramic wall tiles in shower enclosure
• White toilet and shower base as per plan
• Wall mounted polished chrome rain shower as per builder's plan
• Soaker tub (for master washroom) as per plan

Lobby:



***Reservations Due April 24, 2012, suites allocated on a first come, first serve basis***
***Prices go up April 29, 2012****

Additional Links:
Buzz Buzz Home TUX:  http://www.buzzbuzzhome.com/tux-condos
Great Gulf: http://www.greatgulfhomes.com/
Realty Royalty: http://www.realtyroyalty.com/

Contact me today to receive your preference suite and VIP pricing!

Have a great weekend!!!

Monthly Newsletter: March

The Toronto real estate market continues to be extremely busy due to an unusually low inventory of homes available for sale. The pool of 14,546 homes currently on the market is slightly more than 2 months of inventory and that has lead to strong competition between buyers, bidding wars and price increases. In fact, the average price on the Toronto Real Estate Board rose to $502,508 in February, breaking the $500,000 mark for the first time.

Now do not panic! It’s just one month, and these are very unusual market conditions. The market is strong and prices will continue to increase, but certainly not at the same levels as February. As we head into spring and more homes come on the market, some of the pressure on prices will be relieved.

February saw the sale of 7,032 single homes, an 11% price increase over February 2011. After two months, the average price of a home in the GTA stands at $487,254.

While the expensive homes get the publicity, it’s important to realize that many homes are still affordably priced. Of the 7,032 homes sold in February;

4,629 or 66% were under $500,000

3,274 or 47% were under $400,000

1,594 or 23% were under $300,000.

In fact only 6% or 407 homes sold in February were over $1,000,000!  Combined with low interest rates, houses remain affordable for a household earning the average income in the GTA.

Those two factors – availability of reasonably priced property and low interest rates –continue to encourage and allow buyers to enter the real estate market, ensuring a demand for houses and that real estate remains a good investment.

It is still a great time to buy, and I strongly encourage my clients to buy investment properties as Canada and Toronto continue to grow due to immigration and a strong economy.

If you know someone thinking of buying or selling, I would appreciate you letting me know so that I can help him or her. I promise to take extra special care of your referrals!

Have a great March!

Your friend in real estate,

Mortgages....Simplified!

Jason Skare | Mortgage Agent
Tel: 647-800-2977 Cell: 416-846-2609

Dominion Lending Centres Estate Mortgages

It's everyone's favourite topic, mortgages! Luckily they have been simplified today. Jason Skare from Dominion Lending Centres, is here to explain mortgages and the preapproval process, a great read especially for first time buyers.

Jason Skare is a real estate investor and a mortgage agent for the last 5 years, he brings his knowledge, experience and expertise to assist clients in navigating through the mortgage process and becoming mortgage free sooner and ensuring future affordability of his client's homes. Jason is licensed by FSCO and is a member of CAAMP and IMBA.

On top of arranging mortgages for you, Jason is also offering any new clients 6 months of FREE house cleaning for any mortgages $250,000 or more, what a great deal!!!

Take it away Jason......

Mortgage Tips for First Time Home buyers

Buying your first home can be exciting and stressful at the same time. Having the knowledge and expertise in your corner is one way to mitigate that stress. I want to share a few tips and tricks to ensure the mortgage process is a smooth one.

Pre-Qualification vs. Pre-approval

Many people are still confused about pre-qualification vs. pre-approval and what each means to your home buying process. Pre-qualification is a simple mathematical calculation that determines how much you can “theoretically” afford. There is no asset or liability factors taken into account or credit score so you may not even know if you can qualify. Pre-approval is done when an application is taken, a credit check is done on the applicants and you can get a rate hold. In order to qualify for the best rate on the market, most lenders require a minimum beacon score so it’s important to check your credit score at least on an annual basis to ensure you are at acceptable levels.

Pre-approval does not guarantee the house you decide to purchase will be approved by the Lender, especially now with tighter lending standards. It just means you are approved for a certain amount for a certain rate “conditional” on the approval of your home purchase. If you are taking a conventional mortgage (20% downpayment or more) the lender will usually require a home appraisal to ensure what you pay is in-line with other property values in the area. Remember that what you paid for the property may not be what the appraiser feel it’s worth.  Purchase price is not a direct reflection of a homes value. The best example is when a house gets multiple offers and goes for $50,000 above asking price. The appraisal may come in at $50,000 less and the lender may decide to mortgage for the lower amount requiring CMHC insurance or a higher downpayment.

What’s in your Future?

When we look at obtaining a mortgage, many people focus on the lowest rate. As important as rates are, your future plans should dictate your Mortgage product. Maybe you are a new couple buying your first Condo. After a couple of years you decided to start a family and find yourself in need of a house or your job relocates you or you find yourself having a relationship change.

Is your Mortgage “portable” (can you move it to another property and if so how much will it cost?) or what are the penalties to break the mortgage? In many cases, that penalty can be thousands. You probably have heard the record low 5 year fixed 2.99% mortgage. What you probably didn’t know is that many of these products were “no frills” which mean no prepayment privileges, no portability and on average, $6700 higher penalty for breaking that mortgage. A good Mortgage Professional should be asking you these questions to help locate a product that’s right for you.

Strategy against future rate hikes

One of the most common mistakes I see is the assumption that after 5 years of paying off your Mortgage, your payments will be lower. If you start with a 25 year amortization and 5 years later you are at 20 years and have paid off some principle, your payments will be about the same if rates are the same...here’s an example.

$300,000 Mortgage at 3.5% with a 25 year amortization= $1497.00/month

$258,000 Mortgage at 3.5% with a 20 year amortization= $1498.00/month.

That’s not too bad but what if rates rise and in today's ultra-low rate environment, it’s a safe assumption that rates will go up in the next 5 years. Let’s say that the same $258,000 mortgage after 5 years of payments has a rate of 5.5%...your monthly payment would now be $1772.00

For some people, that may be unaffordable. Having a proper plan in place can protect you against these rising rates when they occur is vital and not as difficult as you may think.

Having a professional work with you to ensure you future is secure or that you are making the correct decisions is crucial. Your Mortgage Professional should be reviewing your mortgage annually with you to ensure you are on the correct path to Mortgage freedom.

Did this help simplify mortgages for you? Still have questions, make sure to give Jason a call or send him an email (416-846-2609, jskare@dominionlending.ca)! You can also follow him on twitter, click here and make sure to "like" his facebook page, click here.

Don't forget to check out Jason's mortgage rates below:



 Thanks again Jason!

Creative Decor: Vintage Suitcases

I'm a lover of all things vintage, so this post should come as no surprise. I love when I walk into a home and see one of a kind items. The more interesting part is the way people are using their vintage finds, it can be very inspiring! I'm always searching for creative ideas that I can replicate in my flip homes to give them that unique touch and vintage suitcases fall right into this category. As I was doing some research on vintage suitcases, I came across some really cool ways to use them and showcase them in your home.

So here they are, I'm sure some of these ideas you have seen in the past, but nonetheless, they are still pretty nice to look at!

Weddings/Events







Pet Beds


How cute!!?!!


How About A Clock?




Bedroom (most popular use I found)











Storage/Organizer







Decorative













What do you think? Would you try any of these ideas?
Have a great weekend!!!
***Images via At Home, The Janelle Window Collection, Hitched, Cool Mom Picks, Homedit, Oh Darling Wedding, Bee And Mason, Elements Of Style, Well Appointed Desk, Mamie Janes, Funky Junk Interiors, Bowties And Bliss***