Is 'hot money' fuelling Canada's condo bubbles? The condo bubbles in Toronto and Vancouver are caused by foreign speculation and are making housing unaffordable and creating financial risk for the country in terms of government-insured mortgages. But there’s another issue of vital concern to taxpayers. There are three times more condo high-rises being built in Toronto than in New York City and seven times’ more than in Chicago. Financial Post Mon May 07 2012 |
Builders unfazed by talk of Toronto's overheated market - Diamondcorp From his office, the chief executive officer of real estate developer Diamondcorp looks south toward the towers of the Toronto skyline. But what Stephen Diamond sees is the extended expanse of tree tops between his office and the downtown core. The houses beneath those trees are the reason the developer is comfortable making big bets on the city’s condo market. Globe and Mail Wed May 09 2012 - Marketwire |
CMHC shrugs off 'bubble' talk, defends role in debt financing - Canadian Mortgage and Housing Corp. It's not often a Crown corporation bangs its drum loudly, appears to question market sentiment and misrepresents the central bank’s monetary policy — all in the same day. Canada’s housing agency did just that on Tuesday, issuing an annual report that read like a defence of its business practices, and saying that despite concerns by Jim Flaherty, the Finance Minister... Financial Post Wed May 09 2012 - Financial Post (Second Article) - MoneyVille |
Multi-unit Residential REITs & REOCs: In the News Associa continues Canadian expansion with acquisition in British Columbia
Financial Post, May 4, 2012 InterRent REIT Results for the First Quarter of 2012
Globe and Mail, May 7, 2012 Brookfield Residential Properties Inc. Reports 2012 First Quarter Results
Marketwire, May 8, 2012 Killam looks to acquire more Ontario properties
Chronicle Herald, May 10, 2012 |
Highlights from CMHC's 2011 Annual Report CMHC has inched closer to its $600 billion government-imposed default insurance limit. The nation's top mortgage insurer has just released its annual report showing its insurance in force as $567 billion (as of December 31). That’s up 10% from 2010 and is just 5.5% below its allowed maximum. Despite its growing insurance levels, CMHC says it has plenty of room to meet Canadians' core demand... Canadian Mortgage Trends Thu May 10 2012 |
Why condo owners need more protection Condominium owners need affordable options for settling disputes with developers and property managers, says a Toronto MPP who is pushing for legislation to give them better protection. Rosario Marchese, the New Democrat MPP for Trinity-Spadina, has brought forward a private member’s bill that calls for changes to the Condominium Act, including the creation of a review board that would allow condo owners to settle disputes outside of court. CBC Thu May 10 2012 |
Opportunity huge for alternative mortgage lenders - GMP Securities Mortgage companies competing against Canada's big six banks offer an increasingly attractive opportunity for investors in the wake of new regulations governing Canada Mortgage Housing Corp., says Stephen Boland, analyst at GMP Securities. Changes to mortgage lending rules include CMHC now being regulated by the Office of the Superintendent of Financial Institutions (OSFI). Financial Post Mon May 07 2012 |
Mortgage arrears rate highest in Alberta The mortgage arrears rate in Alberta is by far the highest in the country, according to the CIBC Household Credit Analysis report released. In January, the rate in Canada was 0.4 per cent while in Alberta it was 0.7 per cent. “This reflects the fact that, on average, homeowners in Alberta are younger and less established,” said the report authored by Benjamin Tal, deputy chief economist at CIBC World Markets. Calgary Herald Thu May 10 2012 |
| Demographics make big city condos hot On average, a home in Canada costs 84% more than in the United States right now. The national averages are $372,762 at home versus $203,100 south of the 49th parallel. One might argue that something has got to give. By analyzing housing starts in Canada, we can get a good indication of future trends in real estate. Warm weather throughout most of Canada was credited with being the catalyst for a very strong month of March in new homes. Financial Post, May 10, 2012 Financial Post - Second Article, Globe and Mail |
Court rejects email sale of $155,000 condo New Brunswick judges have overturned a ruling that allowed a man to buy a condo in Moncton, site unseen, by email. The buyer, Marc Girouard, sued the seller, Kelty Druet, after Girouard believed he had a deal to buy her two-bedroom unit in October 2010 for $155,000 following an email exchange. The agreement had been made in seven emails over a two-day period. Moneyville Mon May 07 2012 |
Canadians Ready for Real Estate Market Shake-Up According to a national survey commissioned by PropertyGuys.com and conducted on the Angus Reid Forum, Canadians polled feel real estate commissions are too high and bidding wars are engineered by real estate agents. The survey found 82 per cent of home owners polled agree that a five per cent commission is too much. 50 per cent of Canadians polled say that agents don't have their best interests in mind when selling their home... Canada News Wire Tue May 08 2012 |
Man sells 6 properties on Kijiji When it comes to the high-stakes world of real estate, Andy Vitch is a DIY kind of guy. Just since January he’s sold six properties in the St. Catharines area to three different buyers, all through the popular online site Kijiji. Vitch estimates he saved more than $70,000 in realtor commissions selling the $1.7 million worth of triplexes, fourplexes and even his own home via the site. MoneyVille Thu May 10 2012 |
How playing politics transformed the GTA She liberated the kings and changed the face of our town. Politicians of all stripes, from City Hall to Queen’s Park to Parliament Hill, have had significant impact on the building of new homes in the GTA, but likely few have left as big a mark as Barbara Hall. When she was mayor of Toronto in 1995, Hall noticed that many of the city’s industrial operations had vacated the city core in favor of more spacious suburban sites Your Home Thu May 10 2012 |
| The Structural Failure of Building Exteriors: A Legal, Engineering and Owner Perspective. Thursday, June 7, 2012, Toronto, Hot House Cafe A panel discussion moderated by Darrell M. Gold LLB, author of the "The Legal Corner" and a Partner with Robins Appleby & Taub LLP. Graeme Scott, Senior Principal – Cladding Engineering, Halsall Associates
Adam Krehm, Principal, O'Shanter Development Company Ltd.
David Taub, LL.B., Partner, Robins Appleby & Taub LLP Register today for $35 + EventBrite fees. |
Burnaby rental complex sale worth more than $80 million One of Metro Vancouver's largest multi-family rental complexes has sold in what's being called the third biggest transaction of its type in B.C. history. The deal, worth more than $80 million, involved the sale of Lougheed Village in northeast Burnaby, a mixed-use rental development built in 1973 that includes two 24 storey and two eight-storey residential buildings, a two-storey retail village, and a multi-level parkade, all on a three-hectare site. Vancouver Sun Thu May 10 2012 |
Purchasing a Multi-Residential Property – Closing Costs If you have not purchased a multi-residential property before, especially in Toronto and especially if the number of units is greater than six, you may be surprised by the myriad costs involved. In southern Ontario, traditional lenders generally consider a four-plex or smaller to be a residential transaction, while six or more units in a property is considered to be a commercial transaction, the latter usually bearing more expenses. Monster Commercial Mon May 07 2012 |
U.S. Multifamily Momentum Will Continue The multifamily sector is in good shape for the foreseeable future, according to Calvin Schnure, NAREIT’s vice president of research and industry information, despite some market concerns about a rebound in new construction. He pointed out that there are approximately 3 million households that have “doubled up” since 2008, and many of those residents will be looking for a place of their own as the job market improves. REIT.com Wed May 09 2012 |
Multifamily a Desired Investment in Europe Amidst the European sovereign debt crisis, opportunities exist for commercial real estate investors on the continent, according to panelists speaking during a session at the 2012 ULI Spring meeting. Speakers on the panel, “When Europe Has the Flu,” suggest there are some ways in which the European real estate markets are similar to those in United States: Multifamily is also a strong asset class, investments need to be assessed... Multi Housing News Thu May 10 2012 |
| Why condos keep getting smaller It’s become a mantra among urban planner types: If cities like Toronto are to grow successfully, they must make more efficient use of space. Which partly explains the condo boom. Instead of opting for the kind of houses with big back yards favoured by their parents, new arrivals and the offspring of the existing population are sacrificing all that for affordability and (usually) a central location. Financial Post, May 10, 2012 |
Home > Residential > Market Conditions Housing starts rise on apartment, condo gains CMHC says the pace of housing starts heated up in April, mainly due to an increase in construction on apartments and condos. The housing agency says there were just over 21,000 actual starts in April. That is equivalent to 244,900 starts on a seasonally adjusted annual basis, up from the rate of 214,800 units in March. Globe and Mail Tue May 08 2012 |
Realty boom continues in Regina The residential real estate market in Regina and area continues to boom, with sales and average prices setting records in April, according to the Association of Regina Realtors, which raised that possibility that prices will increase because new listings are selling relatively quickly. There were 443 sales reported in the month in Regina and area, up 24 per cent over April 2011. Leader Post Fri May 04 2012 |
Student Housing in Canada Demographics Let’s look at the basics of Student Housing. There are approx. 800,000 student enrolled in Canadian universities, and these numbers are expected to grow over the next 10 years, to well over a million students. This demand is being driven by the eco baby boom, students staying in school longer, and getting more than 1 degree. Canadian Apartment Buildings Thu May 10 2012 |
Toronto Beaches property's $8-million price tag Real estate in Toronto's Beaches neighbourhood is striding toward a new milestone: A grand house on the shore of Lake Ontario hit the market this week with an asking price of $8-million. Even the owner had trouble seeing the potential when he bought the higgledy-piggledy property for $2.8-million in 2007. Globe and Mail Mon May 07 2012 |
Home > Residential > Mortgage and Finance 2012 vs. 1984: Young adults really do have it harder today All young adults who think they’re getting a raw deal in today’s economy, let me tell you about how it was back in my day. In 1984, my final undergraduate year of university, tuition cost more or less $1,000. I earned that much in a summer without breaking a sweat. When I went looking for a new car in 1986, the average cost was roughly half of what it is now. It was totally affordable. Globe and Mail Tue May 08 2012 |
Buying a home with just 5% down? Make sure you love it Canadian Mortgage Trends editor Robert McLister's second column for The Globe's month-long Home Buying site looks at the perils of a 5 per cent down payment. Read his first column here. There are thousands of 20- and 30-somethings out there who are tired of renting. They’re itching to buy a house but they have one big problem: they don’t have enough of a down payment. Globe and Mail Thu May 10 2012 |
Where there's a house, there's likely a will You can add one more wrinkle to the impact a booming real estate market is having on Canadians - it's getting many of them to make a will. Perhaps buoyed by the ever increasing value of their homes, which reached an average of $369,677 nationally in March, a new study says all that perceived value is convincing some they need a legal document to say who will get that money when they pass away. Star Phoenix Wed May 09 2012 |
Why we've locked in to a 10-year mortgage Our new home in Scarborough is a detached, three-bedroom side-split that cost nearly $560,000. We borrowed nearly $515,000 to buy it, a sum that makes me queasy. With the help of a mortgage broker, we chose a 30-year mortgage from ING Direct, and locked-in to a 10-year term at an interest rate of 3.99 per cent. We will pay about $1,128 every two weeks. MoneyVille Thu May 10 2012 |
Mortgage terminology: A simple guide Understanding the nuts and bolts of your mortgage may seem intimidating at first, but it’s not as difficult as it sounds. Learning more about how mortgages work could save you thousands of dollars in interest or penalties. There are three basic parts to a mortgage: the amortization, the term, and the interest rate, which could be fixed or variable. Toronto Star Thu May 10 2012 |
Home > Residential > Buying and Selling Does it make more sense to rent or buy? In the first of his weekly columns for Globe Investor's new month-long Home Buying site, housing bear Ben Rabidoux looks at whether now is better to buy or rent. Not too long ago I received an e-mail from a young couple in their early 20s who had just made the decision to purchase their first home after renting a house for the past three years. Globe and Mail Fri May 04 2012 |
Wow factor: What condo buyers want In the Greater Vancouver real estate market, a condo is the first step on the equity ladder for most buyers. The current benchmark price is $375,100, just over one-third of the price of a detached house. And depending on size and location, there are plenty at lower prices. But that's still a lot of money, so buyers want to be blown away. For developers, the design and feature options they offer can be the difference between instant sellout and the dreaded "unsold inventory." Vancouver Courier Fri May 04 2012 |
Pros and cons of condos For many homebuyers, condominiums offer several advantages over traditional homeownership tenure — affordability, low maintenance and lifestyle are often just a few. Before you buy a condominium, however, take the time to learn the ins and outs of condo living and be sure you know the rules. Every condominium is governed by its own unique rules, regulations and bylaws. These may be very strict or very relaxed depending on the nature of the condominium corporation. Edmonton Sun Tue May 08 2012 |
Lessons learned from a year as a home owner A year ago, I made the biggest financial decision of my life and bought a home. Although it hasn’t always been easy, I am still extremely happy with my purchase. Here are a few lessons I’ve learned: 1. Buy for less than you can afford When I first started my home search, I knew that the bank would approve me for more than I was comfortable spending. I was pre-approved for close to $300,000... MoneyVille Thu May 10 2012 |
Home > Residential > Construction Sutton Place catches up with the times - Sutton Place Hotel Architecture critic Christopher Hume moves beyond the condo to look at other forms of residential design in Toronto. Suddenly, it seems Toronto hotels are turning into condos and condos into hotels. There’s the old Four Seasons in Yorkville, now closed, and a bit further south at Bay and Wellesley Sts., the former Sutton Place Hotel. It has been a fixture since 1967, remembered fondly... Your Home Mon May 07 2012 |
Showing their metal When you think of steel construction, commercial buildings typically come to mind. But one couple has taken a chance on a new sustainable steel technology that reduces residential construction waste and increases their home's durability, all while keeping their budget intact. Brian Allemekinders and Deirdre Yukich have lived in Aylmer, Que., a stone's throw from the Ottawa River, since 2002. Times Colonist Mon May 07 2012 |
Second batch of $20-M downtown residential grants gone THE second $20-million batch of downtown residential development grants has been gobbled up nearly as fast as the first one. The president and CEO of CentreVenture Development Corp. said the second instalment of money under the joint city-provincial Downtown Residential Development Grant (DRDG) program is now fully subscribed after just under a year. The first $20 million was snapped up within 10 months. Winnipeg Free Press Fri May 04 2012 |
Guelph councillors approve 18-storey condo tower downtown - City of Guelph |
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