If you’re considering the possibility of buying an investment property in Toronto, it’s important that you understand how to calculate cash flow of an investment property. As a landlord, you ideally want to have positive cash flow and not be breaking even each month, or even worse, your property being vacant or your tenant being behind on their payments (this is called negative cash flow).
What Is Cash Flow
Cash flow is the net amount of cash that flows in and out of a business during a given period of time. It is important to monitor cash flow when investing in property, as it can give you an idea of how well the property is performing and whether or not it is a good investment. For example, if a property is generating positive cash flow, this means that it is bringing in more money than it is spending. This can be a good indicator that the property is doing well and is a wise investment. On the other hand, if a property is generating negative cash flow, this means that it is costing more money than it is making. This can be a red flag that the property might not be a good investment. By keeping an eye on cash flow, you can make sure that your property investments are sound and are likely to generate good returns.
How To Calculate Cash Flow Of An Investment Property
To calculate the cash flow, you will need to know the property’s gross income, operating expenses, and mortgage payments. The gross income is the total amount of rent that is collected from tenants. Operating expenses include things like repairs, insurance, and taxes. Mortgage payments are the monthly payments that are made towards the loan used to purchase the property. Once you have all of this information, you can calculate the cash flow by subtracting the operating expenses and mortgage payments from the gross income.
Factors That Can Affect The Cash Flow Of An Investment Property
There are a number of factors that can affect the cash flow of an investment property. The most obvious is the amount of rent that is collected each month. However, there are also other factors to consider, such as the costs of maintenance and repairs, property taxes, and insurance. In addition, the cash flow can be affected by the vacancy rate, if the property is vacant for long periods of time, it can be difficult to make a profit. Finally, the location of the property is also important. A property in a desirable area is more likely to have higher rents and be easier to fill than a property in a less desirable area. By taking all of these factors into account, investors can maximize their chances of generating positive cash flow from their investment properties.
Ways To Increase Cash Flow
For any investor, cash flow is essential to the success of their investment property. Here are a few tips to help improve the cash flow of an investment property:
1. Review expenses and identify areas where cost savings can be made. This could include anything from renegotiating contracts with ongoing service providers such as lawn maintenance or snow removal companies to implementing energy-saving measures such as changing light bulbs to LED bulbs, improving the insulation and replacing old windows and doors to reduce heating and cooling costs.
2. Increase rental income by making improvements that will appeal to excellent tenants or by making improvements that will allow you to increase the rent to current market rates (if you aren’t already hitting that target) or potentially even higher.
3. Make use of tax breaks and incentives that are available to investment property owners, such as depreciation allowances.
4. Keep a close eye on vacancy rates and make sure that the property is marketed effectively to minimize periods of vacancy. Use high end photos that showcase your property in its best light possible.
By following these tips, investors can help to ensure that their investment property generates a healthy cash flow.
You can use the following online rental property calculator HERE to get a sense of what your numbers would be.
Hopefully the above information has been helpful and has answered any questions you may have had relating to what cash flow is and how to calculate it.
Are you thinking about purchasing an investment property or are you considering selling or leasing out your investment property? Contact me with any questions you may have or to discuss how I can help you achieve your specific real estate objectives.
Whether you live in a condo or a smaller home with little storage space, you likely are in need of somewhere safe and clean to store your extra belongings. It may be your winter skis during the summer months, bikes during the winter months or maybe it’s boxes of old photo albums filled with memories you don’t want to throw out, there are many reasons for needing extra storage. With Toronto condos and the majority of Toronto homes being on the smaller side, I often have clients ask me where they can store their extra belongings. In order to help you solve your storage dilemma, I’ve put together a list of the Top 10 Toronto storage companies below:
Access Storage has many state of the art storage facilities located throughout Toronto and provide a wide range of storage unit sizes for your belongings. Some locations even allow you to use their moving van for FREE (at the time of this post). Click the image above to visit their website to learn.
Apple Storage is one of the larges storage companies in Toronto with many different locations to choose from. They offer small, medium and large size storage lockers and provide 24 hour, 7 days a week keypad access. Click the image above to visit their website to learn more.
XYZ Storage currently has 3 locations at the time of this post. It is a great solution for those who live in the east end of the city such at The Beaches, Upper Beaches, Leslieville, Riverdale, Danforth Village and East York. They offer “Compact” (extremely small units that are 12-24 sq ft), small, medium and large storage units. You can access your secure storage unit 24hours, 7 days a week. Click the image above to visit their website to learn more.
Green storage provides small, medium and large storage units and has several locations throughout the GTA with the two closest locations to Downtown Toronto being located at Cherry Street and Eastern Ave as well as another location in Scarborough near Birchmount Rd and Danforth Rd. They take pride in being a “green” storage solution due to their net-zero facilities that are powered by solar panels. Click on the image above to visit their website to learn more.
SmartStop Self Storage has several locations throughout Toronto and provides small, medium and large self storage solutions. Click the image above to visit their website to learn more.
Vaultra Storage is the second largest storage facility in Ontario (at the time of this post) and offers secure indoor climate controlled storage units of various sizes. Click the image above to visit their website to learn more.
AJ self storage is conveniently located on Commissioners St two blocks west of Logan Avenue making it a great storage option for those who live in the east end. They offer 6 different storage sizes which are accessible 24/7. One thing to consider wit the property is that this facility is an outdoor facility and the storage units are not climate controlled, you will want to be careful about what you store in the unit. Click the image above to visit their website to learn more.
Migson Public Storage is a convenient option for those who live in The Beaches, Upper Beaches and East York and Leslieville. All storage units are heated and 90% of the units are located on the ground level. There are no long-term contracts required. Click the image above to view their website to learn more.
Bluebird Self Storage has several locations with the closest location to downtown Toronto being located in Leaside. They offer a variety of secure, climate controlled self storage solutions. Click the image above to view their website to learn more.
Public storage has several different locations throughout Toronto. They provide a range of individually alarmed, heated storage units and sizes for your storage needs. Click the image above to view their website to learn more.
Although the above list doesn’t include every single storage option in Toronto, the companies mentioned above are the leading companies within the storage industry here in Toronto. Hopefully this list helps you with deciding where to store your personal belongings.
Are you thinking of making a move? I assist my clients with their storage needs when listing their home for sale. Contact me to learn more about how I can help you achieve your specific real estate objectives or to to ask any questions you may have about the current market. I’m always happy to help, I look forward to hearing from you.
If you’ve had any thoughts of potentially selling your Toronto home now or in the near future, you may have wondered what you can do to increase the value of your home in order to ensure that your home sells for top dollar.
Over the last decade or so, Toronto real estate has been on fire with homes receiving multiple offers and selling for well over their list price within a few days (sometimes after only 1 day on the market). As I write this blog post in September 2022, things have drastically changed. With the introduction of increased interest rates and the potential of another rate hike announcement tomorrow (Sept 6, 2022), the market has cooled in regards to the number of buyers looking to buy. This is partly due to uncertainty, as well as buyers simply having less buying power. As I continue to check the local Toronto listings on a daily basis for my clients, I’m surprised by the homes that are not selling within a week and are often on the market longer than fifteen or twenty days, and in some cases, even longer. This amount of time on the market would have been unheard of a couple of years ago when buyers were fighting tooth and nail just to have their offers considered during a bidding war, let alone accepted.
Today, in this new market that we find ourselves in, it has never been more important to ensure that your home shows as best as possible. Buyers currently feel they have more negotiating power than they have had over the last several years. The last thing you want to do is to provide them with reasons to devalue your home during negotiations.
In order to help you sell for the highest price possible, I’ve included the top 10 ways to increase the value of your home below. Keep in mind, not all items on this list will apply to each home as some homes may require more (or less) upgrades to be in top listing/showing condition.
1) First impressions matter (enhance your curb appeal)
The saying “you only get one chance to make a first impression” is true, so make sure you make the right impression from the start. The first thing buyers will see when they visit your property is the front of your home, including your landscaping. For this reason, it’s essential that you take the time and invest into making sure that the front of your home shows well. Below is a list of items to consider attending to prior to listing your home:
In addition to ensuring the front of your home makes a good first impression, it’s just as important that your back garden does the same. By applying the same options as above to the back of your home, you will be able to leave potential buyers with a positive first impression.
2) Kitchens can be deal killers
One of the rooms in a home that I often see clients look over in detail when visiting a home is the kitchen. Buyers often spend a lot of time looking over the kitchen and the appliances and take the time to visualize themselves making use of the space. Below is a list of items you may want to consider addressing prior to listing your Toronto home for sale:
3) Beautiful bathrooms sell homes
Another top room of concern for buyers when viewing homes is the bathroom(s). If your bathroom is outdated, you will very likely receive offers at lower price points than if your bathroom is updated. Like kitchens, buyers tend to spend a lot of time considering the bathrooms in a home. It’s important to leave potential buyers with a positive impression and one that they will remember once they have left your home. Below are some items you may want to consider:
4) Add a fresh coat of paint
Adding a fresh coat of paint can drastically improve the look of your home. If you decide to use the same colour as the existing colour on your walls, adding a fresh coat of paint will remove any scuff marks and will make the room feel newer. If you decide to change the colour, it is best to stick to light and neutral colours. I’ve included a list of both Farrow & Ball and Benjamin Moore colours that you may want to consider if you plan on painting your rooms with a new colour. I highly recommend using one of these two top brands when painting, if possible, as the quality of the paint is noticeable when compared to more cost effective paint brands. If these two brands are not within your budget, consider sticking to similar colours as the ones suggested below.
Farrow & Ball
“California Collection: Salt” CC5
Benjamin Moore
5) Update your lighting game
Light fixtures don’t only provide light, they also make a statement when they are both on and off. It’s important that your light fixtures make the right statement and not a statement that leaves potential buyers with the impression that your home is dated or hasn’t been taken care of. Below is a list of some prominent lighting stores where you can browse through many different light fixture options. My advice is to stick to a style that is timeless yet modern.
Union Lighting (best to view their products in person)
6) Replace your outdated flooring
Whether you have a pet whose claws have scratched up your floors, kids or grandkids whose toys have left their mark or you have broadloom/carpeting, you may want to consider replacing your outdated or damaged floors. These days there are a wide range of both hardwood, engineered hardwood, laminate and tile products to choose from.
7) Make your home smarter with a smart home product
With new technology becoming more popular by the day and with society becoming accustomed to homes having cool features such as smart home systems, you may want to consider installing a smart home system in your home. Many smart home systems allow you to control various aspects of your home such as the temperature, lighting, alarm and more. The best part about these systems is that they are usually quite simple to install.
8) Cool down your home with an air conditioner
With the summers getting warmer and warmer, if your Toronto home doesn’t currently have air conditioning like many older homes in Toronto, you may want to consider installing an air conditioner. If you don’t have duct work already running throughout your home, don’t worry, there are many different styles and sizes of air conditioners these days. Speak to a licensed HVAC company about your air conditioning options as there will very likely be one that works for you and your home. If you’re selling your home any time between spring to late summer, buyers will definitely appreciate the fact that you have an air conditioner and will likely be willing to pay more for your home.
9) Upgrade your furnace
If your furnace is coming to the end of its life, it may be worth considering replacing it with a new one. If there are any issues with your furnace and it isn’t working properly, buyers will likely use this as a negotiating tool to bring down the value of your home. In a red hot real estate market, you may not need to worry about this as much but when the market is cooler, this is definitely something to consider and not put off.
10) Transform your old wood-burning fireplace with a modern gas insert
Last November, I wrote a blog about the importance of checking the fireplace before submitting an offer which discussed the fact that many of the older homes have outdated and unsafe wood-burning fireplaces and chimneys that are just as unsafe. A great way to increase the value of your home is by installing a gas insert fireplace into your old wood-burning fireplace opening.
Although this list may not be exhaustive of every single option available to increase the value of your home, I believe that these are the top 10 ways to increase the value of your home.
With over fifteen years of previous experience as the owner of a design and build firm prior to entering the word of Toronto real estate and as a full-time, award winning Toronto real estate agent, I have seen my fair share of homes throughout Toronto and the GTA and know what helps to sell a home for the most amount of money. If you are thinking about selling your home and have questions about how you can increase the value of your home or if you have any questions about the market, contact me any time – I’m always happy to help.
It is difficult to provide a monthly market report, in this case for August, with all the economic and destabilizing changes that are impacting the Toronto and area housing market. The salient data is clear, as the chart below indicates.
The residential resale housing market has changed dramatically since last year. Sales are down, the number of active, available properties for sale has increased, properties are taking longer to sell, and although the average sale price appears to be holding up quite well compared to August 2021, it is off by almost 20 percent compared to the $1,334,000 achieved in February of this year. February and March were the zenith of the Covid-19 pandemic market – cheap money, lack of supply, the need for space and real and psychological security, not to mention the prevailing belief that if you did not acquire and own real estate, the accumulation of wealth would be impossible, were the driving forces.
The major change that has had an overwhelming impact on the Toronto and area housing resale market has been the sky-rocketing cost of borrowing money. All the market changes set out above – decline in sales, increase in available properties, sale times, and declining average sale prices can be directly linked to the Bank of Canada’s continual increase of its benchmark rate. In March, the Bank’s policy interest rate was 0.25 percent. At the end of August, it was 2.50 percent.
If there was no further threat of further Bank rate increases, by the end of August, it could be said, with some certainty, that the resale market had stabilized – sales, prices, and the length of time it took properties to sell. Unfortunately, on September 7th the Bank increased its policy rate by a further 0.75 percent, bringing it to 3.25 percent. The last time the Bank rate was 3.25 percent was April 2008. Early September data indicates that the most recent increase has had a further cooling effect on the residential resale market. The pace of sales is slower than it was in August. At the time this Report was prepared the pace of sales in September was 25 percent slower than at the same time in August, a number that correlates with the percentage increase in the September policy interest rate by the Bank of Canada.
The sharp increases in the policy rate by the Bank of Canada continue to destabilize the residential resale market, not to mention the residential rental market (beyond the scope of this Report) that has seen rents increase by as much as 25 percent in a single year. The decline in average sale prices has not made Toronto’s residential resale market more affordable. Whereas the average sale price may have declined by 20 percent since February, mortgage interest rates on average have increased by more than 150 percent over the same period. Coupled with the impact of the mortgage interest stress test, buying a house in the Toronto and area marketplace has become exponentially more expensive, even as compared to February and March when average sale prices peaked at $1,334,000. Regretfully in its latest policy statement, the Bank of Canada made it clear that it was prepared to implement further increases in order to contain inflation which currently is 7.6 percent, down from 8.1 percent in June – of advanced economies only Japan (2 percent) and Switzerland (3.5 percent) have inflation rates anywhere near the magical 2 percent that the Bank of Canada is determined to achieve.
The good news, not only for the housing market but for the economy generally, is that inflation appears to have peaked, with some indication that it is declining in various sectors. If this is a continuing trend, the Bank may stall further increases. That would be the signal that will cause the housing market to reignite. Buyer sentiment will change – there will be a new understanding that prices and sales will not decline further. Unless some unforeseen economic event occurs that should happen before the end of this year.
Have questions about the market, selling or buying?
Contact me any time. I’m happy to answer any questions you may have.
Prepared by Chris Kapches, LLB, President and CEO, Broker, Chestnut Park® Real Estate Limited, Brokerage.
Living and working in a busy and vibrant city like Toronto is enjoyable for the most part, however, there are often times when you could use some fresh air along with some peace and quiet. Escaping to cottage country is one of the best ways to reconnect with nature and recharge. Whether you are looking to rent a cottage or you are looking to buy one, there are many great cottage destinations near Toronto. In order to help you with making your cottage plans, I have put together the list below of the top cottage destinations near Toronto.
Muskoka
Muskoka is one of the top cottage destinations near Toronto. It is known for its natural beauty throughout the different seasons, with many lakes and forests. It is a popular tourist destination, especially during the summer months and is a second home to many cottage owners from Toronto, the GTA and the United States.
There are many reasons why Muskoka is a good place for cottages. Firstly, the scenery is breathtaking, secondly, it is relatively close to Toronto, making it a convenient getaway for city dwellers looking to escape the hustle and bustle. Thirdly, there are many activities to enjoy in Muskoka, such as swimming, fishing, hiking, boating, golfing and social clubs.
Finally, Muskoka has a unique charm that can’t be found elsewhere. Whether you are looking for a peaceful escape from city life or an action-packed vacation, Muskoka has something to offer everyone. As someone who had a family cottage on Lake Muskoka for over thirty years, I can truly say it is a special place. There are so many great things to do during the summer months, whether it be taking the boat into Port Carling for lunch, ice cream or shopping, enjoying an afternoon of sailing, exploring Hardy Lake Park, playing a round of golf at one of the local golf clubs or heading into Bala for a concert under the stars at the notorious and historical Kee to Bala.
Muskoka is definitely one of the top cottage destinations to consider whether you are looking to buy or rent a cottage.
Haliburton
Located approximately three hours from downtown Toronto, Haliburton is a beautiful location for a summer getaway. With its clean lakes and rivers, scenic hiking trails, and abundant wildlife, Haliburton has something to offer almost everyone. For those who enjoy spending time on the water, there are numerous opportunities for swimming, boating and fishing. For those who prefer to stay on dry land, there are plenty of hiking, biking and ATV trails to explore. For those who want to spend time in the great outdoors without roughing it, there are several resorts, including Sir Sam’s Ski & Bike resort which is really popular during the winter months and golf courses in the area to work on your golf game. Whether you’re looking for a quiet place to relax or an adventure-filled vacation, Haliburton is the perfect destination.
Collingwood
Collingwood is is located on Georgian Bay, approximately 140km north west of downtown Toronto. Collingwood is a popular tourist destination both in the summer and winter, due to its proximity to Georgian Bay and its and ski resorts including Blue Mountain. The town is also home to a number of beautiful and historical heritage buildings which add character. Collingwood is an excellent choice for a cottage country getaway. It offers a variety of activities for all seasons, from swimming, sailing, power boating and hiking in the summer to skiing and snowboarding in the winter. In addition, Blue Mountain Village is a hot spot during all seasons and includes several restaurants, shops, cafes and bars. Whether you’re looking for a relaxing vacation or an action-packed adventure, Collingwood has something to offer everyone.
The Kawarthas
Nestled in the heart of Ontario, the Kawarthas is a region known for its natural beauty. With its tranquil lakes and scenic woodland trails, the Kawarthas is the perfect place to escape the hustle and bustle of city life. For those looking for a more relaxing vacation, the Kawarthas is also home to many cottages. Whether you’re looking for a cozy cabin by the lake or a spacious lakeside estate, you’re sure to find the perfect cottage for your needs. In addition to its picturesque setting, the Kawarthas is also centrally located, making it easy to explore all that Ontario has to offer. From Toronto to Ottawa, there’s something for everyone within driving distance of the Kawarthas. So whether you’re looking for a peaceful retreat or an action-packed adventure, be sure to check out the Kawarthas.
Parry Sound
For many people, a cottage is the perfect retreat from the hustle and bustle of everyday life. It’s a place to relax, unwind, and enjoy the company of family and friends while being surrounded by nature. Parry Sound and Georgian Bay is one of the most popular cottage destinations in Ontario, and it’s easy to see why. The area offers an incredible array of activities and attractions, from fishing, swimming, camping, hiking, kayaking, canoeing, power boating. Georgian Bay offers breathtaking sunsets over the water which is truly a beautiful sight to see along with spectacular views of thousand of small islands made of granite. Whether you’re looking for a quiet getaway or an action-packed vacation, Georgian Bay has something to offer everyone. If you’re thinking about renting a cottage this summer or buying a cottage, be sure to add Parry Sound and Georgian Bay to your list of potential destinations. You won’t be disappointed.
Prince Edward County
Prince Edward County has long been a popular destination for cottagers who enjoy long sandy beaches with beautiful views across the water. Nestled along the shores of Lake Ontario, the county offers a unique combination of natural beauty and small-town charm. Whether you’re looking for a quiet place to relax or an outdoor playground for adventure, Prince Edward County has something to offer. The region is renowned for its world-class wineries, sandy beaches, Sand Banks park and picturesque villages. So if you’re searching for the perfect place to call your cottage country home, be sure to check out Prince Edward County.
Thousand Islands
The Thousand Islands region is a popular destination for cottagers and vacationers alike. Situated in the heart of the St. Lawrence River, the Thousand Islands offer a unique blend of natural beauty and small-town charm. The waterways are perfect for swimming, fishing, canoeing, and kayaking, and the scenic views are perfect for relaxing and enjoying the outdoors. In addition, the Thousand Islands region is within easy driving distance of Ottawa, Toronto Montreal and the United States. As a result, the Thousand Islands offer everything that cottagers could want: a beautiful natural setting, plenty of recreational activities, and easy access to major cities. You’ll want to consider the Thousand Islands as an option if you are looking to buy or rent a cottage as it is definitely one of the top cottage destinations near Toronto.
Lake Simcoe
Lake Simcoe is a good choice for cottagers for a number of reasons. First, it is a large lake, which means there are plenty of options for activities such as swimming, boating, and fishing. Second, the lake is relatively shallow, which makes it perfect for children and beginners. Third, the shores of the lake are mostly sandy, which makes them ideal for sunbathing and picnicking. Fourth, the lake is located close to Toronto, making it a convenient getaway for city dwellers. Finally, the lake is home to a number of species of fish, making it a popular destination for anglers. All of these factors make Lake Simcoe an attractive choice for cottagers.
Are you thinking about buying a cottage? Contact me any time to discuss how I can help you start your search. With Chestnut Park offices in most of the above listed cottage destinations, I can put you in contact with one of my colleagues who specializes in your area of interest.
Whether it be the high Toronto real estate prices, the chaotic energy of the city or the need for a larger home with a yard, there are many reasons why some Toronto residents trade the convenience of living in the city with living in a smaller community, despite having to commute into the city for work. With Toronto home prices as high as they have been and with the introduction of higher interest rates bringing down the average sale price of many of the GTA communities that saw substantial gains during the pandemic, now could be a good time to consider making a move to one of the top 10 communities in the GTA with a GO station listed below. Purchasing a home in a community that has a GO station isn’t only beneficial to you if you work in Toronto and need to commute, it is also a selling feature that attracts potential buyers should you decide to sell in the future.
Below is a list of the top 10 communities in the GTA that have a GO station (in no particular order):
#1 Oakville
Oakville is one of the most desirable and affluent communities outside of the City of Toronto. It is home to many executives who commute into Toronto’s Financial District for work. Many professionals choose Oakville as their home due to its good schools, access to the waterfront and reasonable commute time to Toronto via the GO train.
Below are the average sale prices for all property types in Oakville at the time of this blog (August 2022)
Detached $2,035,091
Semi-detached $1,090,045
Townhomes $1,101,040
Condo apartments $938,359
Condo townhomes $829,093
#2 Port Credit
Port credit is known for its stunning waterfront which was rated as number one in the GTA. This family-friendly community consists of a wide range of demographics, including professionals who work in the Financial District and families who are looking for a quieter lifestyle versus living closer to downtown Toronto. Port Credit is home to the Port Credit Yacht club and is a lively spot during the summer months when the weather is nice. The Port Credit GO Train station makes it convenient for professionals to commute to and from work on a daily basis.
Below are the average sale prices for all property types in Mississauga which Port Credit is a part of. The pricing is based on prices at the time of this blog (August 2022)
Detached $1,589,123
Semi-detached $982,556
Townhomes $1,005,494
Condo apartments $628,116
Condo townhomes $798,552
#3 Unionville
Unionville, located in the City of Markham, is one of the most charming communities just north of Toronto. Unionville has a historical main street that consists of many different shops, cafes and restaurants just steps from Toogood Pond where many children and families skate during the winter months. Along with its large beautiful homes and one of the top golf courses in the GTA, Unionville is a popular community for those who are looking for a family friendly community not far from the city.
Below are the average sale prices for all property types in Unionville/City of Markham at the time of this blog (August 2022)
Detached $1,708,333
Semi-detached $1,182,644
Townhomes $1,155,546
Condo apartments $707,776
Condo townhomes $875,375
#4 Markham Village
Similarly to Unionville, Markham Village is the older area of the City of Markham and also includes its very own main street, which, like Unionville, includes many different shops, cafes, restaurants and bars. The area consists of large lots which has resulted in builders tearing down many of the older and dated homes and building new larger luxury homes. The Go station located on Main Street Markham makes it convenient for those who need to commute to Toronto for work. Markham Village is a great community for families who are looking for a place to live with a true small town community vibe.
Below are the average sale prices for all property types in Markham Village/City of Markham at the time of this blog (August 2022)
Detached $1,708,333
Semi-detached $1,182,644
Townhomes $1,155,546
Condo apartments $707,776
Condo townhome $875,375
#5 Vaughan
The City of Vaughan is one of the fastest growing communities in the GTA and includes several small communities within it such as Maple, Kleinburg and Woodbridge. The area consists of both residential homes as well as some newer low-rise and high-rise condo buildings. Vaughan is a desirable community among families and professionals who commute to work as there is easy access to highways such as the 407 (east & west) and 400 (north & south), and it also has its own GO station.
Below are the average sale prices for all property types in Vaughan at the time of this blog (August 2022)
Detached $1,697,375
Semi-detached $1,116,357
Townhomes $1,080,793
Condo apartments $690,996
Condo townhome $931,602
#6 Aurora
Aurora was once a small town but has grown substantially over the years. Although the photo above highlights the beautiful farm land and landscape you will find in the surrounding areas of Aurora, the main area of Aurora where most residents live is made up of residential homes of all sizes. Aurora is also home to large estate size lots in communities with winding tree-lined streets that provide a a good amount of privacy. Aurora has become a popular community for those who commute to work and who appreciate living in a community filled with beautiful homes with spacious lots.
Below are the average sale prices for all property types in Aurora at the time of this blog (August 2022)
Detached $1,625,138
Semi-detached $908,000
Townhomes $987,375
Condo apartments $718,650
Condo townhome $1,116,500
#7 King City
King City is known for its small town vibe, historical homes, large lots and stylish new construction subdivisions. The area has a main street down Keele Street which includes a variety of local shops, restaurants and other businesses. The King City community consists of a variety home types including heritage homes around King Road and Keele Street, large lots with custom homes and bungalows as well as new construction subdivisions that cater to a range of home buyers including first time buyers. For those who are looking for a quieter lifestyle than living in the busy city and who are willing to commute to work, King City might be a good option to consider.
Below are the average sale prices for all property types in the King Township at the time of this blog (August 2022)
Detached $1,912,794
Townhomes $1,108,000
Condo apartments $632,500
#8 Stouffville
Once known for mostly farm land and an older community with a small main street, Stouffville has changed drastically over the last decade and a half. These days, you will find new construction subdivisions that are either brand new or approximately fifteen years old along with an older part of town with homes that have existed for quite some time. Main Street Stouffville has many different shops and businesses along with several restaurants. Although it has grown over the years, it still has a small town vibe to it. Many residents commute to Toronto for work via the GO Train.
Below are the average sale prices for all property types in Stouffville at the time of this blog (August 2022)
Detached $1,414,811
Semi-detached $988,375
Townhomes $956,669
Condo townhome $588,000
#9 Pickering
Twenty years ago you wouldn’t hear about professionals from the city flocking to Pickering. However, Pickering has drastically changed over the years and has a lot to offer those who are looking for a larger home with a larger lot in an area not too far from Toronto. These days you will find many executives who have chosen to call Pickering home. With its beautiful waterfront, sense of community and more, it’s a popular community for those who are looking for more of a suburban vibe while still being close to the city. The Go station and easy access to Highway 401 makes it convenient for those who commute into the city for work.
Below are the average sale prices for all property types in Pickering at the time of this blog (August 2022)
Detached $1,270,758
Semi-detached $902,714
Townhomes $859,336
Condo apartments $609,845
Condo townhome $727,042
#10 Whitby
Whitby is home to several large corporations such as BMW, Sony Canada and others which employ many of the local residents. Like Pickering, Whitby has its own beautiful waterfront and also a historical main street with Heritage buildings. There are a variety of home styles in the area and the pricing is typically more affordable when compared to other communities in the east end of the GTA such as Picking and Markham.
Detached $1,100,690
Semi-detached $857,500
Townhomes $849,250
Condo apartments $681,667
Condo townhome $706,500
With so many great options in the GTA to consider, I’m confident that you will be able to find the right home for you. To assist you with your search, I’ve included the GO system map below which shows all of their stops in the GTA.
Credit: GO Transit
If you are thinking of making a move out of the city to one of these great communities or any other great community in the GTA and have questions about selling, buying or the market in general, feel free to contact me at any time as I am happy to answer your questions for you.
*All sale prices above are based on July 2022 stats which are released in August 2022.
With Toronto being one of the hottest real estate markets with a level of demand that the supply can’t seem to keep up with, there’s no surprise that buyers often end up in a bidding war against other buyers.
I often tell my buyer clients that buying a home in Toronto is a process, one that involves more than just one attempt at finding the right house for them and sometimes involves some disappointment when one gets away.
Unfortunately, the Toronto real estate market is heartless; it doesn’t care about your feelings or your dreams, and it most definitely doesn’t care about how many homes you’ve missed out on. Most of the time, the only thing that Toronto real estate cares about is how much money you will pay for it.
Although offer price is usually the driving force when it comes to selecting the winning bid in a multiple offer situation, there are other deciding factors that come into play and which can work in your favour when putting together your offer.
As a full time Toronto real estate agent, I’ve had plenty experience with assisting both seller and buyer clients over the years. This has allowed me to view the deal from both sides of the table and to pick up on tactics and strategies that have resulted in a winning bid. I’ve also had the opportunity to see what doesn’t work.
Below, I’ve provided some of the strategies that have worked for my clients in the past in order to hopefully help you if you’re ever involved with a bidding war in the future.
Strategies:
Submitting a “Bully Offer” – This strategy typically only works if you are willing to pay an amount well above the list price and possibly slightly higher than market value. You essentially should be submitting an offer that the seller would be foolish to refuse. This offer would need to be completely clean and not include any conditions and with a limited number of clauses. This offer should also include the seller’s desired closing date.
Submitting a personalized letter with a photo – Although some may disagree with this strategy, I have seen personal letters work for both my buyer clients as well as for buyers submitting offers on my listings. I’ve personally been in situations where my seller clients were ready to take a lower offer price for their home simply because they liked the offer with the letter from the buyers as it felt more personal. It probably wouldn’t have been the wisest financial decision to accept a lower offer price due to a nicely written letter but it does go to show you that a personalized letter has the potential to sway a seller’s decision as to which offer to accept.
Submitting an offer with the desired closing date – One small way to help increase the odds of your offer being accepted is by matching the seller’s desired closing date. This is a very minor thing and likely won’t be the only thing that makes or breaks the deal, but if you can match the desired losing date, you will be that much closer to having your offer accepted.
Submit a clean offer – If you are up against other offers, the last thing you want to do is submit an offer with a bunch of conditions, reps and warranties and clauses. I realize this can be scary and you must make a decision that you feel comfortable and confident with but you may need to remove any home inspection or financing conditions or clauses you were planning on including. Based on years of experience with dealing with bidding wars, I can guarantee that the odds of your conditional offer being accepted are extremely low. However, if you are considering removing any conditions, make sure you are in a financial position to deal with any unexpected surprises that you may run into down the road.
Make sure your i’s are dotted and t’s are crossed – I often receive incomplete offers with missing information, sometimes important information such as the names of the parties to the agreement along with other very important information. Make sure all sections of the offer are filled out fully and accurately. The last thing you want to be doing is submitting an incomplete offer in a bidding war as this will not only result in the sellers potentially feeling uneasy with your offer, it may even result in you missing out on the home.
Don’t expect more than one chance – For some reason, some buyers and agents think that they will be guaranteed a chance to improve their offer after it has been submitted. This is not always the case as the seller is not required to provide additional opportunities for buyers to improve their offers. Do not go into a bidding war expecting a second, third or fourth chance to improve your offer as you may not get it.
Make sure to check in with the listing agent – Many agents simply submit an offer on offer night and wait to receive a yes or no answer. If you are working with an experienced and reputable Toronto real estate agent, they won’t stop at simply submitting your offer. Once your agent has submitted your offer, they should be checking in with the listing agent in order to see how your offer is doing compared to the others and to see if there is any way that you can make your offer stronger, whether that be financially or otherwise.
At the end of the day, bidding wars are complex and each one is different from the other depending on the different parties involved, including the the sellers, buyers and agents. A good real estate agent will be able to guide you through the process and help ensure that your offer stands out from the competition as much as possible while protecting your rights and working in your best interest throughout the process.
Are you thinking about making a move or do you have questions about the current market?
Contact me any time with your real estate questions or to discuss your real estate plans. I’m happy to help and to answer any questions you may have.
You may or may not have heard the term “pre-list home inspection” before and wondered what it is and what it’s used for if you don’t already know.
A pre-list home inspection is an inspection that the listing agent typically arranges for their seller client prior to the property being listed for sale on MLS. By completing a pre-list home inspection, listing agents are able to provide such inspections to potential buyers and their agent when an inquiry is made regarding the condition of the home.
As long as your home doesn’t have any major issues, a pre-list home inspection often adds comfort to buyers, especially when they are involved in a multiple offer situation and likely won’t be able to submit an offer with a home inspection condition included.
A home inspection typically includes important information regarding different aspects and areas of the home and often includes details regarding the condition of following below as well as other items:
It is important to know that home inspectors are somewhat limited in regards to how deep they can dig into each section of the home. They mostly base their report on what is visible to the naked eye when looking over the different areas of your home.
It is also important to know that it’s extremely rare to receive a report that is squeaky clean without any issues at all, even in a newer home. Many sellers get nervous when they see a report that says there are issues with their home, even if they are minor issues. By completing a pre-list home inspection, you will have the opportunity to address the issues prior to listing your home for sale if you should wish to. Once the issues have been addressed, the home inspector will usually provide you with an updated report which reflects the repairs being completed. Over the years that I have been working in the real estate industry, I haven’t once seen a report completely free from any issues.
Now that you know what a pre-list home inspection is, make sure you speak to your agent about this option prior to listing your home for sale.
If you aren’t currently working with another agent and have questions about the market or selling your home, contact me any time. I’m always happy to answer your questions and concerns and to assist you with achieving your specific real estate objectives.
So you’ve gone through the process of hiring a Toronto real estate agent, decluttered and staged your property to ensure that it’s in top showing condition, the “For Sale” sign goes in the lawn and the listing goes live on MLS, you are excited to see how many showings and offers you receive, but you don’t receive any interest and you’re now wondering, “how could this be happening?” You’ve hired a professional Toronto real estate agent, completed all of the prep work to ensure your property shows well and you’ve heard that other properties have sold with multiple offers in only one week or sometimes less. You’re now asking yourself “Why isn’t my home selling?”
There are a variety of factors that could be getting in the way of your home selling but in most cases it comes down to expectations. Below are the top 5 reasons why a home may not sell.
1) Market Shifts
We have been spoiled over the last decade or so with Toronto home prices skyrocketing year after year. Prior to the pandemic and interest rate hikes, you could put almost any home on the market (even complete gut jobs) and they would sell for well over their list price with multiple offers. Unfortunately, things have changed and the market is no longer what it was back then (the good old days – depending on who you ask). Since the introduction of rate hikes (which we haven’t seen in a very long time), the market has continued to shift. As rates continue to go up, the buying power among buyers continues to shrink and the uncertainty continues to grow among buyers, sellers and the public in general. In one recent study completed by Hanley Mortgage Group, buyers had approximately $120,000 less buying power this past July 2022 vs July 2021; that is a substantial hit for buyers looking to buy in one of the most expensive cities both here in Canada and around the globe.
So what does this have to do with your house not selling?
It has to do with expectations.
The market has been changing weekly, sometimes daily and as previously mentioned, it’s not what it was in the past in regards to the average sale price or number of offers. Toronto hit a record high for the average sale price in February 2022 at $1,334,544 which, at that time, made Toronto the most expensive city in Canada. Since then, we have seen multiple rate increases with potentially more on the horizon. This has caused the average sale price to continuously decline month over month from $1,334,544 in February all the way down to $1,074,754 last month (July 2022). If you listed your Toronto home this summer hoping to sell for this past winter’s sale prices, your expectations are likely not in line with the current market. While interest rates increase and the buying power of buyers continues to decrease, sale prices will also continue to adjust accordingly.
In addition to the market shifting as a result of interest rate hikes, historically, we typically see seasonal shifts in the market with August typically being one of the slowest months of the year. This is due to many buyers taking vacation and travelling during this month. Unfortunately, due to the pandemic and travel restrictions being lifted, there are even more potential buyers who are looking to get away for the vacation they have been craving over the last couple of years. The amount of demand for travel is evident when considering the extremely high pricing for both flights and vacation packages when you complete a quick online inquiry for travel options.
What can you do about these market shifts in order to sell your home?
Well, this depends on your specific situation.
If you must sell now, you and your agent should discuss your options based on the current market and current comparable sales in your area. In addition to your agent providing you with statistical data based on the current market, you may also need to adjust your expectations and come to the understanding that you simply may not be able to achieve the sale price you originally had in mind when you originally listed your home for sale. Keep in mind, depending on where you are looking to move to (buy) and the rate you have locked in at, you may make up some of the loss on the buy side with the right negotiations.
If you don’t have to sell immediately, you should discuss with your agent the option of potentially re-listing your property once the market has bounced back to the level of pricing you were expecting when you originally decided to list. However, keep in mind that if you decide to take this route, be prepared that you may not be as happy with the purchase price of your next property depending on what market it’s located in as prices may have bounced back and be more than what they are today.
2) Improper Staging
Let’s be honest, not all staging is equal. It’s important that your home is professionally staged and staged in a way that makes your property stand out from the competition. Anyone can place a throw blanket on a sofa but true high quality staging requires a lot of thought and planning. Professional staging often requires the removal of all existing furniture from the property and new furniture brought in which enhances the space and makes the home feel brighter, cleaner and more airy. If your property isn’t properly staged you could potentially be turning off potential buyers. Staging was important when the real estate market was hot, it is now even more essential in this new market.
3) Poor Quality Photos
Just like any other product, the quality and type of photos used to market a product can make or break the successful sale of that product; it is no different when selling a home. Having professional photos that showcase your property in the best light possible will drastically increase your odds of selling for the most amount of money in the least amount of time. Doing otherwise will likely leave your home sitting on the market for quite some time. Your realtor should be using a professional photographer for the photos that will be shared in both online and print marketing materials.
4) A Dirty Home
The last thing you want is for potential buyers to be turned off by how dirty your home may be. When viewing homes, there’s almost nothing worse than walking into a home and wanting to leave your shoes on because the home not clean, this is definitely not the first impression you want to be making to potential buyers. Before hiring an agent, make sure the agent you decide to work with provides complimentary professional cleaning services as a part of their pre-listing services. If your home isn’t thoroughly clean, you may find yourself waiting a long time for the right buyer to come along and you will very likely receive less money for your home.
5) Incomplete Repairs or Renovations
Sellers sometimes think that buyers will be willing to complete repairs that are needed or that have been started but not fully completed, but this couldn’t be further from the truth. As a Toronto real estate agent who helps both sellers and buyers, I’ve seen the look of disappointment in the eyes of my buyer clients when they come across areas in need of repair or partially finished work. Their minds automatically go to the thought of “how much is this going to cost to fix?” and “how much should we knock off the offer price due to this?” Before listing your home for sale, complete as many needed repairs that you can and finish any partially finished projects that you may not have completed. You will likely save yourself thousands of dollars when it comes to negotiating a final sale price for your home by doing this. It is also crucial that you use a licensed professional when completing projects that require licensed trades such as electrical work, plumbing and structural work that may require an engineer.
These are just some of the many reasons why your home may not be selling. Ensuring that all of these items are addressed properly will increase the odds of your home selling for the most amount of money in the least amount of time.
If you aren’t currently working with another agent and have questions about the market or selling your home, contact me any time. I’m always happy to answer your questions and concerns and to assist you with achieving your specific real estate objectives.
*This is not intended to solicit individuals currently under contract with another real estate agent or real estate brokerage.
If you’re thinking about buying a home in Canada, one of the most important things to understand is the difference between insured and uninsured mortgages. Below is what you need to know about CMHC insurance.
What is CMHC insurance and why do you need it:
CMHC insurance is a type of mortgage default insurance that protects lenders in the event that a borrower defaults on their mortgage. It’s required on all mortgages with a down payment of less than 20%, and it’s offered by the Canada Mortgage and Housing Corporation (CMHC).
How does CMHC insurance work:
If a borrower defaults on their mortgage, the lender will be reimbursed by CMHC for a portion of the outstanding loan balance. The amount that CMHC will cover depends on the size of the down payment:
For a 5% down payment, CMHC will cover up to 95% of the outstanding loan balance
For a 10% down payment, CMHC will cover up to 90% of the outstanding loan balance
For a 15% down payment, CMHC will cover up to 85% of the outstanding loan balance
What are the benefits of CMHC insurance:
CMHC insurance provides a level of security for lenders, which in turn makes it easier for borrowers to qualify for a mortgage. Without CMHC insurance, lenders would likely require a larger down payment, a higher credit score, or both which could negatively affect your buying power.
How to get CMHC insurance for your mortgage:
If you’re applying for a mortgage with a down payment of less than 20%, your lender will automatically include CMHC insurance in your loan. You won’t need to apply for it separately.
What are the differences between insured and uninsured mortgages in Canada:
The biggest difference between insured and uninsured mortgages is the down payment requirement. For an insured mortgage, the minimum down payment is 5%. For an uninsured mortgage, the minimum down payment is 20%.
Other differences include:
Which type of mortgage is right for you:
The type of mortgage that’s right for you depends on your personal circumstances. If you have a down payment of less than 20%, an insured mortgage may be the best option. If you have a down payment of 20% or more, an uninsured mortgage may be the best option.
Final thoughts
Understanding the difference between insured and uninsured mortgages is important if you’re planning on buying a home in Canada. Be sure to speak with a qualified mortgage professional to determine which type of mortgage is right for you. You can visit CMHC’s website HERE to learn more.
Are you thinking about buying or selling and have questions about the current market? Contact me any time with your questions as I’m always happy to help.
