KEYS TO COVID-19

• The day-to-day uncertainty is challenging but we must focus on the number one priority, supporting our front-line workers while taking care of ourselves and each other by staying home.

• Please check on your neighbours and support small businesses where you can.

• Updates on pertinent programs and government initiatives:

  • An in-depth, covid-19 website

  • Bank of Canada has lowered its target for the overnight rate to 0.25% - this is a record low to offset shifting consumer confidence.

    • The Bank of Canada last cut rates to these levels in 2009, during the global financial crisis.

  • There is opportunity for mortgage, property tax, utility, GST & HST deferrals, although interest may accrue. Contact your lender or accountant for more information.

  • Good news - there is now relief for Canadian workers who have lost income.

    • Click here for more info on the Canadian Emergency Response Benefit (CERB) from the CRA.

  • The launch of the new Canada Emergency Business Account (CEBA) will provide interest-free loans of up to $40,000 to small businesses and not-for-profits.

    • Repaying the balance of the loan on or before December 31, 2022 will result in potential loan forgiveness of 25% (up to $10,000).

• Real estate services are still considered essential.

  • This is to ensure homeowners with pending closings, i.e., those who have already bought and need to sell, or those who have sold and have to buy etc., are able to transact.

• Open houses were prohibited effective April 2020, then allowed in August 2020, then prohibited October 2020 again.

• As I am already diligent with virtual transactions, I am now taking proactive measures to ensure compliance with social distancing requirements as well as wearing a mask, gloves and having sanitizing products readily available.

• Overall, the real estate market is holding its ground throughout the crisis with The Toronto Regional Real Estate Board released sales figures reporting a record breaking summer!

  • Over a 40% increase from both August & September 2019

  • The average sales prices up 11-20%! 

  • Average price of a Toronto detached home is $1.5M

  • The low-rise housing segments are fuelling this pent-up demand as we are spending more time in our homes than ever. Access to outdoor space and more square footage to work remotely are highly prioritized.

  • Eliminated office commutes and backyards more desirable than parks or gyms, changing the way we think about space and privacy.

  • Since recovery began in the Spring with Stage 2, paired with historically low borrowing costs, we’ve now entered the Fall market where home sales are stronger than pre pandemic as a result of this meaningful lifestyle trend that is here to stay.

  • Rental prices have definitely been impacted with no events, limited travel, and back to school virtually. With razor thin Toronto margins and currently more vacancies, a lot of rental condos have listed for sale to offload the investments that are seeing expenses exceed revenue.

  • Companies now require a short term rental license from the city

  • New legislation to register principal residence properties before Dec 31 2020 that operate as short term rentals (28 days or less).

  • The condo market is balancing, meaning increased supply and less demand.

  • However, as government income support unwinds, students adjust, immigration returns and employees become stir crazy in their home offices, I suspect to see a rebound in this more affordable housing option.

  • The price of lumber has almost doubled, so romanticizing renovations or building is not as seamless or affordable as HGTV makes it seem. A lot of buyers on budgets will revert to turnkey townhomes and condos to avoid underestimating costs and stressful timelines required to fix up older, detached homes that need work.

  • There have been more exclusive listings to sell this year as widespread in-person showings that often accompany a public MLS listing can be minimized. This is why working with a realtor is more important than ever...please get in touch today so you don’t miss out on your home that isn’t in the public eye!

KEYS TO HOME OFFICES

• 1. Stake out your spot.

  • A designated room is ideal for staying organized and charging up.

  • Stock up necessary supplies and tidy storage, especially with roommates, pets and kids at home.

  • If you have the space for a scene change, shuffle around where you set up shop but keep it simple!

  • Being able to communicate with minimal distractions is most important.

• 2. Find a comfortable chair that supports your back.

  • I’m loving our breakfast nook to alternate to a standing desk from sitting all day.

  • Ergonomically - your screen should be at eye level.

  • Don’t forget to take breaks!

    • Fresh air and a 7th-inning stretch will increase dwindling productivity.

• 3. Natural light and plants are energizing.

  • If your space is typically darker, bring in a mirror to help bounce light.

  • Make sure the light is in front of you with a neutral background to focus efficient video calling.

  • Fresh flowers or low-maintenance succulents promote a peaceful setting while purifying the air.

• 4. Time block EVERYTHING.

  • I use my online cal and notepad but old-fashioned journaling in the morning helps me stay on track and get the clutter out of my head.

  • The day can get away from you if errands suddenly take over.

  • There are apps to limit social media activity!

  • Prepping a lunch and healthy snacks the night before saves precious time and maintains energy levels needed to think clearly.

• 5. On-call tech and other support.

  • I have trusted, local professionals in my pocket that keep everything from my business, graphic design, finances, maintenance and personal energy in check! 

    • Let me know if you need a referral.

• 6. Display something that inspires you.

  • Our oil lamp tucked in the corner reminds me of my WHY - family and new experiences.

    • Brighter days ahead my friends!

• 7. Look good, feel good, play good!

  • Don’t forget to freshen up to feel alert and confident.

    • Throwing on a smock, blazer or earrings helps me feel professional at home.

Please comment and share your home office experiences below! 

KEYS TO OFFERS

• There are many moving parts when determining the market value of a property and contents of an offer:

  • Local market conditions

  • Current supply and demand

  • Recently sold properties

  • Current for sale properties

  • Physical condition

  • Seller’s motivations

  • Professional opinion

• An offer is a legally binding document which contains:

  • 1. Price - cost of the home

  • 2. Deposit – usually about 5% of the purchase price held in a trust account. Required in the form of bank draft, certified cheque or wire transfer due within 24 hours of an accepted of offer. If you are offering in competition, it is strategic to have the deposit in hand. The deposit shows good faith and will be applied against the downpayment for the purchase of the property when the sale closes. Be advised if the seller accepts a firm offer, you are legally obligated to close and forfeit this deposit.

  • 3. Conditions – an offer is “conditional” on matters such as a home inspection or lender’s approval of financing. The property is not sold until all the conditions have been met or waived.

  • 4. Inclusions & Exclusions – certain fixtures, appliances or decorative items that are included or excluded in the purchase price of the property. Example: window coverings or BBQ on the balcony.

  • 5. Closing Date – the day the property title is legally transferred and the transaction of funds are completed for keys to be released on possession

• The Agreement of Purchase and Sale is the standard form used by Realtors to offer in Ontario.

  1. • WHAT IS AN OFFER DATE? - A set date where sellers decide to hold back and review offers at a certain point in time.

       • strategically underpricing generates a ton of traffic and interest, creating a “bidding war”.

       • MORE SHOWINGS usually translates to MORE OFFERS

       • Competing bids will usually be firm with deposit cheque in hand, over the listing price and with the seller’s ideal closing date so it is imperative to have all your ducks/cash in a row in this scenario

     • WHAT IS A BULLY OFFER? - An offer from a buyer to seller submitted before the offer date that the sellers have set.

       • AKA a “pre-emptive” offer.

This info is not to be construed as expert legal advice, tax advice, advice on zoning changes, engineering or environmental advice. Please seek independent professional advice on any of the above matters and concerns. 

KEYS TO NEW CONSTRUCTION

• Third Highest Year on Record for GTA New Condo Sales (Urbanation, 2020).

• New launches in the 905 averaged a selling price of $795 psf, which was 28% below the 416 average of $1,108 (Urbanation, 2020).

• There are almost always construction delays.

• You need to be in a highly cash positive position as 20% downpayment is required in a payment schedule.

• Some lenders may not finance unregistered condos.

• New residents occupy the unit long before your title to the unit is received.

• This is called “interim occupancy” where an occupancy fee or ‘phantom rent’ is paid directly to the developer until registration.

• A “condominium” is only formed when it meets the approval standards to be registered with the Land Registry Office.

• Final registration is typically longer than predicted so keep in mind future lifestyle changes - relationships begin or end, family grows, jobs transfer…

• You have the right to cancel the purchase within a 10-calendar day cooling-off period from the time you receive a copy of the fully signed purchase and sale agreement or the disclosure statement, whichever comes later.

• Representatives at the sales offices legally have the builders’ best interests at heart - working with a buyer’s representative will always keep your best interests at the forefront.

• Buying something that you cannot tangibly see or touch is risky and overwhelming as we depend on all of our senses to imagine life. Without seeing the physical building, ‘vibing’ with the lobby, smelling the hallways, touching the finishes and decor, it can be difficult to visualize and make an intelligent decision based on floor plans and model suites alone.

• Don’t forget to read the fine print! Pre construction criteria is usually approximate and subject to change without notice, hence why a referral to a good real estate lawyer will come in handy.

This info is not to be construed as expert legal advice, tax advice, advice on zoning changes, engineering or environmental advice. Please seek independent professional advice on any of the above matters and concerns. 

KEYS TO MORTGAGES

• A pre-approved mortgage means a lender has made a commitment to loan you money based on your overall financial status at no obligation BUT subject to conditions. This is NOT an approval.

• To obtain a pre-approval, you will need to fill out an application and provide documents that confirm your employment, income, credit etc..

• Click here to try out my mortgage affordability calculator. This is not a pre-approval.

• Mortgage pre-approvals will protect you against interest rate increases for usually 120 days while shopping.

• Your mortgage broker will explain the various mortgage options:

  • fixed vs. variable rate

  • varying interest terms

  • payment options

  • amortization

  • down-payment required

  • conventional vs high ratio etc..

• The lender will approve the mortgage only upon verifying the supporting documents and the appraised value vs. the purchase price before advancing the loan.

• Until the recent outbreak of covid-19, buyers took a mortgage “stress test,” where financial stability was determined against the Bank of Canada’s five-year interest rate forecast.

• Many millennials overwhelmed with the idea of a down payment should know there are several creative ways to leverage money to make home ownership tangible.

  • utilize home equity lines of credit (HELOC)

  • rent out rooms or the basement for money to go toward the mortgage

  • co-sign with a parent or trusted family member

• The down payment required is usually between 5-20% of the purchase price of the property:

  • For a purchase of $500,000 or less, the minimum down payment is 5%.

  • 5% down is required on the first $500,000 and 10% down on the remaining portion.

  • As soon as the purchase price hits $1M, 20% down is required.

• If your down payment is coming from the sale of your home, you will have to provide a firm agreement of purchase and sale and the current mortgage statement.

• If all, or part of your down payment is coming from a gift, a letter must be provided to the lender.

• Mortgage insurance protects against default and is required if you are putting less than 20% down, but this can either be paid up front or added to the amount you borrow.

• Recommend having 1.5% of the purchase price available to cover closing costs on top of Land Transfer Tax. Click for my LTT calculator!

• With the federal government’s Home Buyers’ Plan, you can now use up to $35,000 in RRSP savings ($70,000 for a couple) to help pay for your down payment on your first home.

  • The funds must have been in the account for 90 days. You then have 15 years to repay your RRSP.

• Please let me know if you would like to be connected to my network of trusted mortgage brokers.

This info is not to be construed as expert legal advice, tax advice, advice on zoning changes, engineering or environmental advice. Please seek independent professional advice on any of the above matters and concerns. 

KEYS TO SELLING

• Tapping into the strategy and ground-level expertise of an active, real estate professional will maximize your property’s exposure to qualified buyers and yield successful results.

• Remember that brokerage fees can vary when listing your investment for sale.

• Negotiate your representation agreement to confirm which services are included, because you could be costing yourself. An organized, multi-layered marketing plan is key.

• My concierge-style service includes:

  • marketing on the MLS, sponsored ads, SEO optimization

  • cutting-edge photography, videography, design

  • minimalist home staging that maximizes traffic

  • trusted referrals to trades, inspections, lawyers and mortgage brokers

  • powerful network with other industry leaders

• The first formal step in marketing your property is to sign a Listing Agreement.

• This is a contract that commits a brokerage to actively market your home for a specified period of time. You need the following documents to list:

  • plan of survey (if available)

  • property tax receipts

  • rental item details

  • feature upgrades & any recent home improvement + costs

  • annual expenses (gas, electrical, water, etc.)

• Choose a representative that you trust, is brutally honest and has the best marketing strategies to facilitate the sale of one of your biggest investments.

• Did you know? Millennials prefer shorter stays in a starter home shifting the industry.

  • The average is 6 years, versus 10 years most home sellers enjoy (KW, Vol 16.1 2009).

This info is not to be construed as expert legal advice, tax advice, advice on zoning changes, engineering or environmental advice. Please seek independent professional advice on any of the above matters and concerns. 

KEYS TO RENTING

• Ontario rent changes during covid-19

• As part of Ontario's Fair Housing Plan and Rental Fairness Act, the provincial government introduced a mandatory standard residential lease in 2018. Please read for more info on rent control, evictions, pets, deposits etc.

• Did you know? Doug Ford removed rent control on new units? Click here for more info.

• Working with a Realtor as a prospective tenant is FREE!

• Landlords pay one month’s rent commission to list their rental property for:

  • listing services (both MLS & Kijiji)

  • professional photography, videography & floor plans

  • coordinating showings

  • screening tenants

  • executing binding contracts

  • collecting deposits, tenants insurance, utility set up

• The Residential Tenancies Act is the law in Ontario that governs landlord and tenant relations covering everything you need to know about tenant and landlord rights and responsibilities.

• The Landlord and Tenant Board deals with any disputes through mediation or adjudication. 

• Vacancy rates are at historical lows!

• Did you know the average price of a 1 bedroom rental in Toronto is approx. $2300/month?! 

• To rent in Ontario, landlords typically require:

  • Rental Application - your references will be contacted

  • Letter of employment verifying income (self-employed are requested to provide Notice of Assessment)

  • Recent credit report (sign the rental app above & I can pull at my full service brokerage!)

  • Photo ID

  • First and last month’s rent liquid

    • due within 24 hours of an accepted Residential Tenancy Agreement in the form of wire transfer or direct deposit

• Criteria to begin your rental search:

  • how many bedrooms/washrooms?

  • any pets?

  • do you require a parking space?

  • preferred geographic parameters or boundaries?

  • budget?

  • amenities?

• FAQ - How much should I budget for utilities? Utilities are user and building specific:

  • rarely all inclusive

  • usually you will be obligated to pay your electricity (hydro)

  • cable/internet

  • water is often separately metered in new construction

  • snow removal and lawn care

This info is not to be construed as expert legal advice, tax advice, advice on zoning changes, engineering or environmental advice. Please seek independent professional advice on any of the above matters and concerns. 

KEYS TO BUYING

• Obtaining a pre-approved mortgage from a mortgage broker is the first step in the home buying process. This will help save valuable time by only searching viable options.

• Low interest rates mean more borrowing power and lower monthly payments.

• The seller pays the negotiable commission upon a sale, so choosing a real estate professional to represent you when purchasing a home is FREE and will actually save you money.

• You may be enticed to work with a listing agent - be weary as they have a signed, fiduciary duty to the seller client.

• Working with a buyer’s agent will always keep your best interests at the forefront.

• Listing price is not the same as sold price! The listing price is set by the seller and the seller’s representative. A sold price is what the market is willing to pay for that product at a certain point in time.

• You will need to have a certified deposit within 24 hours of an accepted offer - approximately 5% of the purchase price must be liquid.

• Typical other one-time expenses:

  • mortgage application and appraisal fee (if applicable +/- $300)

  • mortgage interest adjustment and take over fee (if applicable) due on closing

  • home inspection (optional +/-$500)

  • legal fees and disbursements, due on closing ( +/- $1500)

  • property survey, sometimes provided by the seller (optional as needed price varies +/- $2500)

  • Land Transfer Tax - in Toronto on $1,000,000 is approx. $33,000.

    • click here for more info on first time buyer tax rebates

  • adjustments for utilities and property taxes will be due on closing

  • mortgage insurance due on closing and ongoing for down payments < 20%

  • home insurance due on closing

  • moving costs and furnishings

  • necessary renovations and upgrades

• Typical monthly expenses:

  • click here for my monthly mortgage payment calculator

  • ongoing maintenance/condo fees, (varies on size of unit, building, age, inclusions)

  • utilities (gas, electricity, water, internet, cable, security)

  • building and mortgage insurance

  • property taxes

• Know your lane. Stay in it. If you are a handy person and have resources available to renovate a property efficiently, buying a fixer upper can be a good strategy. If you live a busy lifestyle and throwing a hammer is a bar sport for company events - then I strongly consider purchasing a renovated or turnkey product.

• I am available and well-versed to discuss your desired neighbourhoods, commuter routes, public facilities & services, schools, parks, future development plans, lifestyle and market trends.

• I am not afraid to tell a client when a purchase doesn’t make sense, and when it does, I help see all options

• Now sharpen your claws and get ready to pounce - it’s called a house hunt for a reason!

This info is not to be construed as expert legal advice, tax advice, advice on zoning changes, engineering or environmental advice. Please seek independent professional advice on any of the above matters and concerns.