Toronto Real Estate News

It looks like Real Estate in Toronto is still a bargain when compared with homes in the rest of the world. Toronto, or any other Canadian city, Vancouver perhaps, do not even make the list of expensive places to buy real estate. The most expensive real estate in the world is in London, England, where $5k per square foot is the going rate. My 2300 sq/ft home would be worth $11.5 million if plunked into downtown London. I would like the cash, but not to live there.

Toronto Not On List Of The Most Expensive Real Estate Cities On Earth
Wednesday May 9, 2007

Looking to buy a home and think Toronto real estate is out of your league? It turns out, we don't even count when it comes to the really pricey places on the planet. In fact, no Canadian city even shows up on the list of the world's most expensive real estate locations. The number one position belongs to London, England, where prime property costs an average of just over Cdn.$5,000 a square foot. (The city is already home to the most expensive mansion on earth.) Next is the Principality of Monaco, where you'll pay about $4,800 for the same property measurement.

The list is from the aptly named Wealth Report 2007, an annual publication that measures where the world's money is going. It claims people with lots of dough - roughly more than $11 million - know real estate is generally a good deal and are buying up the best locations. That's pushing some of the sites named in the report to record levels.

So the next time you cringe when you hear what a T.O. home is worth, remember it could be worse. You could just be getting a real bargain for your bucks.
Full Report

What Does A Million Dollar View Look Like?

You may ask you self, 'What does a million dollar view look like?' The answer is not so simple. Some would say that you can not put a price tag on natural beauty, but real estate agents certainly try. The most desirable properties in British Columbia have three things; a gorgeous view, a huge home, and is on the waterfront. Here is a listing from Surrey, Whiterock to be exact, that can give you an idea of what a $7.5 Million view looks like.

Full Listing

Real Estate Is Still On The Climb

An industry expert from CIBC has predicted that there will be no housing collapse in Canada. In fact, the prediction is that housing values will increase by double in the next 20 years. This is good news for all those Realtors out there, and not so good for people waiting to clean up on the burst real estate bubble. Canada's West (BC, AB, SK, MB) are expected to keep the economy and housing going strong with the rising energy prices.

The impending decline and fall of the Canadian residential real estate market -- as fearlessly forecast by the Baby Boom watchers -- can be summed up in four simple words: "Much ado about nothing."

This wasn't Shakespeare talking, but CIBC World Markets economist Benjamin Tal.

Tal crunched the numbers and found the house price scare when the boomers become empty nesters and downsize as "highly exaggerated."

To the contrary, Tal is predicting that instead of fading "house prices in Canada are more likely to double in the coming 20 years."
FULL ARTICLE

With the rise in real estate prices the Catholic Church of Halifax has decided to cash in and sell some very sought after property near the downtown core. The church says the money will be put into church education. FULL ARTICLE

It Looks Like Banks Are Starting To Warm Up To The Idea Of Less Than 25% Down On A Mortgage

It looks like banks are starting to warm up to the idea of less than 25% down on a mortgage. Traditionally those without a large lump sum to put down on a house have had to pay mortgage insurance. Now banks, well one bank anyway, have lowered the limit to 20% down. This will make it easier for some prospective home buyers in Canada to find the home of their dreams. The privilege of owning a home has become easier thanks to a bill passed by our government. Read on.

Full Article

New mortgage rules can benefit home owners who have more than just a mortgage

WATERLOO, ON, April 24 /CNW/ - Manulife Bank is 'ready to do business' for Canadian homeowners who have as little as a 20 per cent down payment, with no high ratio premium required. As of today, the Bank's innovative Manulife One account, that includes a client's mortgage as well as other debts, is now available up to 80 per cent loan to value, without high ratio insurance.

New federal legislation that came into effect April 20 moved the minimum down payment requirement from 25 to 20 per cent. Previously, anyone wanting a mortgage greater than 75 per cent of their home's value was required to pay a lump sum premium to a third party insurance company to protect banks from possible loan defaults. This premium ranged anywhere from one per cent to 3.25 per cent of the mortgage amount, based on the ratio of the loan amount to the value of the home.

The change in legislation moved the maximum ratio available without paying a high ratio premium up to 80 per cent and Manulife Bank is among the first banks to offer this benefit to Canadians, and definitely the first to provide it in an account as innovative as their all-in-one account.

"This is great news for prospective homeowners," says Roman Fedchyshyn, President and CEO of Manulife Bank of Canada. "The cost of a mortgage is daunting enough. So, to be able to eliminate this fee for some mortgages, including other debts, means keeping more money in the pockets of our customers. And, that is what Manulife Bank is all about."

Full Article

Canadian Real Estate Soars

Real estate prices in Canada are still rising, and fast. Provinces west of Ontario are seeing the biggest gains, with Alberta leading the way with over 30% increase over the same month last year. B.C. set a new record for average home price at over $410,000. Check out the full CBC.ca article below.

The average price of a resale home in Canada hit a record high in February, the Canadian Real Estate Association (CREA) said Monday.

The association said the average resale home sold for $294,880, based on Multiple Listing Service figures. That's an increase of 10.6 per cent from a year earlier.

Record highs were set in six provinces: British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Nova Scotia.

The most expensive real estate was again found in British Columbia, where the average MLS property sold for $412,847 in February — an increase of more than $10,000 from January and up more than $43,000 from February of last year.

But the biggest increase took place in Alberta, where provincial MLS figures showed the average price of a resale home jumped 34.1 per cent to $343,515. Put another way, the average Alberta homeowner saw their worth grow by $87,390 in the last year (at least, on paper) simply by living in their homes.

Smaller double-digit increases were also seen in Saskatchewan and Manitoba. But from Ontario east, the gains were all in the single digits.

"Recent mortgage interest cuts, together with a strong job market and rising incomes will keep home buyer sentiment upbeat and could make the spring home buying season one for the record books," CREA chief economist Greg Klump said in a statement.

CREA had released a preliminary price survey three weeks ago that foreshadowed Monday's announcement. That survey showed that resale prices in many of Canada's major cities had set a record in February.

Real Estate For Sale Signs

A Vancouver firm now offers FM radio for real estate. How it works: a low power FM frequency is broadcasted from the property that is for sale, a talking for sale sign. When people are driving by they can here about the home or condo while sitting in their car. The radio station only broadcasts for a one block radius. This has proven particularly useful for condo building that do not allow realtor signs.

Read the original article below.

Real estate radio hits the airwaves in Vancouver

Updated Tue. Apr. 10 2007 2:10 PM ET

CTV.ca News Staff
A new radio station is on the air in Vancouver but you won't hear any pop music or the local news.

Instead, SellFM broadcasts real estate information about properties for sale using their 'Talking sign' feature.

The 'For Sale' sign on the property directs people to a radio frequency where, using an FM transmitter, information about a property is broadcast.

For potential home and condo buyers driving by, all they need is an FM radio.

"They drive by the house and they get the information right away. They don't have to call me, go back home and look it up on the internet," said realtor Rick Stonehouse, who came up with the idea alongside entrepreneur Riel Roussopolos.

In his studio, Roussopolos creates a custom tailored commercial for each home, adding music and suitable sound effects.

"This is 70-year-old technology for the most part," he said.

"The only confusion is that people think it's a radio station all over the place so we are adding stuff to the sign that says one-block radius only."

Stonehouse said the biggest benefit is for condo sellers in the city's downtown core.

We're "putting it in apartment buildings in downtown where they don't allow signs," said Stonehouse. "(People) drive by and listen to the listings selling in that building."

David Coates sold his home in two weeks after three open houses and the use of the FM transmitter.

"It's hard to say whether an FM transmitter broadcasting from the house got us thousands of dollars more," said Coates. Either way, Coates is satisfied as his home sold for $69,000 more than its original asking price.

With a report from CTV's Heron Hanuman in Vancouver

The Big Real Estate Companies Say That Real Estate Is Still Booming All Across Canada

The big real estate companies say that real estate in still booming all across Canada. This is good news. People still believe in our hot economy, and what is a better way to spend your money than on a home. This article from City News shows current stats from all across Canada. Check your market and see waht is happening.

So You Think You Want To Be A Real Estate Mogul?

So you think you want to be a real estate mogul? Well to start with you need a plan, and some good advice. I can offer neither, but the following article would be a good start. The more your read the more you know.

Here's how to spot bargain in the rough

Discovering seller's problem and then finding a solution are keys to success
Jeanette Fisher Special to The Star

What is a ``distressed'' property? What is ``bargain'' real estate?

A distressed property is one with a distressed seller. Job loss or transfer, divorce, death, pending foreclosure, and lack of money cause sellers to sell fast for less.

Discovering the seller's problem and finding a solution is the key to buying a bargain property.

A distressed property may also be a ``doghouse,'' a dump, or a fixer. Owners of "doghouses" are not always distressed sellers.

Here are 18 easy steps to buy a bargain house:

1. Get good advice from successful investors. Ask friends and real estate agents for referrals to investors.

2. Create your personal investment journal.

3. Define investment goals: Do you want to buy a home to live in, to fix and sell, or to hold for your future?

4. Get credit reports and scores. Create a file for each credit reporting agency. Take care of any credit issues.

5. Read real estate investing books and articles. Attend workshops and seminars. Also avoid out-of-date infomercials on TV.

6. Get good advice from lenders. Choose a lender with great service, good closing record, and fair costs. Arrange financing.

7. Define your target locations: Is your desired property near home or job, vacation or second home?

8. Learn your target market. Study real estate newspaper sections. Pick up homes for sale flyers. Watch sales and note prices, amenities, and conditions.

9. Interview real estate agents and learn from them. Do not sign any agreements with agents limiting your search for bargain property. (These contracts make you pay the agent a commission even if you purchase by owner.)

10. Use agents who know local market customs and guarantee to make many offers for you.

11. Find a good escrow officer for buying "for sale by owners."

12. Study home remodelling, design magazines and books. Learn the costs of materials, supplies, and trades. Visit home improvement warehouses. Note costs of building materials.

13. Be ready to know a bargain property when you see it.

14. Make many offers. Bid on houses being repossessed.

15. Buy only bargain property. Get great terms or concessions from seller.

16. Plan house transformation during escrow. This speeds your work time – saving you money in holding expenses.

17. Monitor real estate escrow closing. Do not jeopardize your financing by charging up credit cards or making unnecessary purchases.

18. Celebrate buying your "doghouse" with an open house.

The Federal Government Plans To Sell Billions Of Dollars Of Real Estate

This article from the Globe and Mail shows how bright the government can be when it comes to investing. The federal government plans to sell billions of dollars of real estate, then lease it back from the people who bought it. Nice wealth strategy. Wait, no, that is dumb. Ottawa's real estate targets exceed market appraisals. Confidential figures show nine buildings expected to fetch millions more.

Article by DANIEL LEBLANC of the Globe and Mail

OTTAWA -- The Harper government is hoping to sell nine buildings for hundreds of millions of dollars more than recent market appraisals as part of its controversial plan to lease back the office space for 25 years, confidential figures show.

The Globe and Mail has obtained a breakdown of the $1.4-billion price tag for the nine buildings across the country, with one of them valued at $120-million more than its recent market appraisal.

While the government is praising the potential cash haul, the opposition parties argue that Ottawa will, in fact, be borrowing money from the eventual buyers and leaving taxpayers to pay back the loans through quarter-century leases.

"It may look good on the books in the short term that there is a big sale price. The question is whether this is in the long-term interest of Canadians, because we're going to be on the hook for these lease arrangements," New Democratic Party MP Peggy Nash said.

"Would any of us sell our house and lease it back for 25 years?" she asked.

Public Works Minister Michael Fortier has refused to release a recent report from federal advisers at the Bank of Montreal and the Royal Bank of Canada who recently appraised the nine buildings for his department.

"There is information in there that could affect the offers made by third parties," Mr. Fortier said in an interview.

However, The Globe has obtained the figures independently, in addition to information on recent market appraisals for the buildings. According to the BMO and RBC advisers, the government can get:

$265-million for the 16-storey Canada Place in Edmonton, even though the building received a market appraisal of $145-million last year; $250-million for the Harry Hays building in Calgary, which is worth $87-million according to a time-adjusted appraisal; $200-million for the Skyline Complex of seven buildings in Ottawa, which Ottawa bought for $91-million in 2003; $180-million for the Joseph Shepard building on Yonge Street in Toronto, which had a $78-million market appraisal in 2002; $140-million for the Thomas D'Arcy McGee building on Sparks Street in Ottawa, which was bought from RBC for $66-million in 2001; $105-million for the Howard Green building in Vancouver, which cost $58-million in 2002; $100-million for the historic Sinclair Centre in Vancouver, which was appraised at $40-million in 1999 but needs at least $10-million in repairs; $85-million for a building on René-Lévesque boulevard in Montreal that was given a market value of $39-million in 2002; $40-million for a building in Westmount, Que., that used to house the RCMP.

While the buildings have undergone renovations and real estate markets are hot in Canada's major cities, experts say their value is boosted by the government's promise to lease them back for 25 years.

"A typical analysis is done on a 10-year payback period. If they're talking about a 25-year rate, that adds a lot of return and removes a lot of the risk," said a commercial real estate broker in Edmonton.

An academic expert said the value of the buildings is related directly to the amount of rent the government is willing to pay to the buyers. In that context, a guaranteed 25-year lease would boost any market appraisal.

"This is as good as buying a [Canadian government] bond," said James McKellar, a professor of real property at York University.

In their recent report, the BMO and RBC advisers urged the government to pursue longer leases for the buildings. They are now scouring the globe for the best offers among major investors.

The government is refusing to specify the terms of the contracts with the bankers, but a Public Works spokesman said they will earn a commission if sales occur. Sources indicated that such a large assignment could bring fees of between $1-million and $5-million.

There is opposition to the plan inside the government, but Mr. Fortier said Ottawa needs to find about $4-billion to renovate its real estate portfolio.

Mr. Fortier said any sale of one or more of the nine buildings will have to obtain cabinet approval and be vetted by an independent third party.

He insisted the government will sell the buildings only if the price is right.

"If we don't have a good deal, we won't do it, that's for sure," he said.

Mr. Fortier stated that he doesn't know the value of the eventual sale.

"Some people have speculated on the value of the nine buildings, but it depends on how many buyers are interested," he said.

On the block Ottawa says that nine buildings are on the market in a bid to raise funds to refurbish the rest of its real estate portfolio. The sale is being handled by Bank of Montreal and Royal Bank of Canada, which have produced a confidential report on the value of the assets. Here is a fact sheet on the buildings.
HOWARD GREEN BUILDING
Vancouver
Estimated value: $105-million
Market assessment:
Bought for $58-million (2002)
Rentable area: 19,000 square metres
Quality: Class A
Comment: One of Ottawa's greenest
buildings, it houses Environment Canada
SINCLAIR CENTRE
Vancouver
Estimated value: $100-million
Market assessment: $40-million (1999)
Rentable area: 23,000 square metres
Quality: Class B
Comment: Classified as a historic building,
needs $10-million in renovations
HARRY HAYS BUILDING
Calgary
Estimated value: $250-million
Market assessment:
$87-million (time-adjusted assessment)
Rentable area: 45,000 square metres
Quality: Class B
Comment: Good condition,
but requires significant midlife renovations
CANADA PLACE
Edmonton
Estimated value: $265-million
Market assessment:
$145-million (2006)
Rentable area: 78,000 square metres
Quality: Class A
Comment: Good condition
and requires only normal maintenance
JOSEPH SHEPARD BUILDING
Toronto
Estimated value: $180-million
Market assessment: $78-million (2002)
Rentable area: 52,000 square metres
Quality: Class B
Comment: Built in 1977 and said
to be in fair to good condition
THOMAS D'ARCY McGEE BUILDING
Ottawa
Estimated value: $140-million
Market assessment:
Bought for $66-million (2001)
Rentable area: 38,000 square metres
Quality: Class A
Comment: Bought from Royal Bank
and said to be well maintained
SKYLINE COMPLEX
Ottawa
Estimated value: $200-million
Market assessment:
Bought for $91-million (2003)
Rentable area: 68,000 square metres
Quality: Class A
Comment: Bought from Nortel in 2003,
has since undergone renovations
305 RENÉ LÉVESQUE WEST
Montreal
Estimated value: $85-million
Market assessment: $39-million (2002)
Rentable area: 31,000 square metres
Quality: Class B
Comment: Good condition, has new roof
and has undergone floor rearrangements
4225 DORCHESTER WEST
Westmount, Que.
Estimated value: $40-million
Market assessment: N/A
Rentable area: 18,000 square metres
Quality: Class C
Comment: Former RCMP building
has a darkroom, holding cells and a gym
SOURCE: GOVERNMENT OF CANADA

Real Estate Fraud Is Real

This article from CNNMatthews shows how real estate fraud has become an important issue to think about when selling or buying real estate.

Some Calgary homeowners will find "Stolen/Not for Sale" signs in their front lawns later this week as part of a Fraud Awareness Month event being staged to warn homeowners that the coming busy real estate season can be a breeding ground for real estate scams, often averaging as much as $300,000 per case.

The event will take place on Thursday in the neighbourhood of Parkhill/Stanley Park involving Consumers Council of Canada, leading title insurer First Canadian Title, and real estate fraud victim Susan Lawrence. Lawrence's home was "stolen" in the Toronto area in early 2006 after she put a For Sale sign on her front lawn and identity thieves took out a fraudulent mortgage on her home for almost $300,000.

The group will be conducting similar events in neighbourhoods in Vancouver and Toronto over the next few days to call on homeowners to be more vigilant in the fight against real estate fraud, particularly around the busy real estate season. The events are also extending a challenge to business, law enforcement and consumer groups to join together in the fight against fraud.

Original Article