Fall Winter Real Estate Forecast 2013

The Fall 2013 edition of CMHC's Housing Market Outlook - Greater Toronto Area is now available and can be accessed by clicking on the link below.

http://www.cmhc-schl.gc.ca/odpub/esub/64319/64319_2013_B02.pdf

Here are the highlights for the current edition:

•Total starts will ease in 2014 with activity shifting to semis and rows from singles and apartments.

•Gradually rising mortgage rates will keep existing home sales growth modest.

•Rising home values will keep more people in rental but more condo rentals will keep supply in balance with demand.

•After lagging in 2013, income growth will match broadly based employment growth.

On Residential Condo Rental Rates

On a per square foot basis, average rents in Toronto grew by 4.2% in the third quarter compared to the same period last year. 

Rents are growing at a pace of 3.5% year-over-year. 

Toronto’s rentals-to-listings ratio remains elevated at above 70%. 

Rental demand in the city is currently running at a 20-year high. 

http://news.buzzbuzzhome.com/2013/11/urbanation-globe-and-mail-toronto-condo-rents.html

Millennials own fewer cars and drive less than their predecessors. They’d rather walk, bike, car-share, and use public transportation — and want to live where that’s all easy.  That's means they are renting to stay in the city center near their jobs.

Not only are the millennials your potential rental pool but Seniors who downsize are also adding to their numbers.   The seniors want a comfortable space with condo views and amenities. They have sold and are cash rich.

Toronto continues to attract people.

Are you ready?    Let's get started

Discreet, Honest and Patient

When it comes to buying or selling a home in Toronto there are the top reasons families have made David Pylyp their REALTOR® and trusted real estate advisor for over two decades.

1. Experience makes the difference

For something as life changing as buying or selling a home there is no substitute for experience; David has been helping families for over 25 years and is now seeing repeat business from their children.

2. Your Matters are all that matters

With integrity and professionalism, David keeps your needs first at all times, without injecting commission breath.  Finding the right house for you that fits your long term lifestyle, financial and family goals. The honest answers that are right for you without sharing your personal details

3. Let's be friends. I mean it!

Whenever you connect with David there is a genuine interest in what has transpired in your lives, sharing your joys and accomplishments at every opportunity. This warmth will make you  feel like a trusted and valued friend is with you every step of the way.  Buying a house is not bricks and sticks but all about people.

4. Patience that pays dividends

We could find that home for you instantly; or in today's market we may need to canvass the streets for you. It is more likely that the entire buying process could take months instead of weeks. You will not be rushed or pressured into making a decision about what may not be right for you.  Let's take our time

5. Unmatched Service without compromise

Whether this is your first purchase or you are already a seasoned veteran of Buying and Selling, David will provide an uncompromising level of attention to detail and service, even attending at the closing with you. After closing, You may  wonder why I'm not talking with you every day about more listings.

6. Digital Storyteller Marketing

With so much competition, your home's sales appeal can only be as strong as the marketing for suitable buyers; Knowing the neighbourhood and community's strongest realtors will be contacted personnaly to make them aware of your listing, Professional HI RES photo's will be available online and uploaded to a Slide Show Viewer in addition to engaging videos using the power of youtube and Google to have your address found online. You will also receive professional full colour feature sheets and payment calculators to help Buyers consider your home faster. Advertising coverage includes the Toronto MLS System, the global reach of Realtor.ca, and exposure on Social Media sites like Facebook Twitter and Linked IN plus local online real estate websites. 

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REFORMS! REFORMS!

You can almost hear Politicians shouting REFORM!

The Ontario Government is tackling Condominium Reforms in an attempt to address what some feel are NEEDED reforms and adding another judicial body for oversight that will hire STAFF, create an appeal process, create Rules and Regulations of their own, in the fashion of a Rental Tribunal. Then, of course, there will be an application and filing fee. 

This CONDO OFFICE is proposed to be funded by a contribution (additional fee for Condo Owners) of $ 1- 3 dollars per unit per month. This quickly amounts a war chest of $20 Million per year.   Have Taxes / Levies ever reduced after introduction? 

Key recommendations include:

• Creation of a Condo Office, an arm’s length umbrella organization that could provide functions such as education and awareness, dispute settlement, condo manager licensing, and a condo registry.
• Improved consumer education and protection
• Updated financial management rules and dispute resolution mechanisms
• Stronger qualification requirements for condo boards, including mandatory training for first-time members
• A new licensing program, managed by the condo office, to ensure that condo managers are properly trained and qualified.
• http://ppforum.ca/publications/ontarios-condominium-act-review-stage-two 

Bob Aaron in a recent News paper article stated;

The full, 72-page report, available online at ppforum.ca, provides a hint of what condominium law will look like if and when the report’s final recommendations are passed into law.
Of the report’s more-than 200 recommendations, the most significant one in my opinion is the creation of a new umbrella organization known as the Condo Office. This new body would have four main functions: education and awareness, dispute settlement, licensing condo managers and maintaining a condo registry.
While creating a Condo Office would no doubt be an excellent solution to a number of industry problems, it seems to me that great care should be taken in establishing yet another quasi-judicial body like the Ontario Municipal Board and the Landlord and Tenant Board, both of which have come in for considerable criticism over the years. 
I have my doubts about a proposed monthly “levy” on all condominium units in the province. Current estimates are $1 to $3 a month from each condo unit — and that’s just in the first year. At the higher end, that translates into an annual budget of $21.6 million, plus user fees. http://www.aaron.ca/columns/2013-11-09.htm

While I appreciate in light of recent fraud and some occasional miss-management, the majority of issues tend to be the education of the Condominium Buyers/Owners and their compliance with Rules and Regulations. Condo Management companies do need to be licensed and regulated.  Yes, Consumers need to be protected, but condo owners also need to GET INVOLVED and participate actively in their buildings management and reputation. Lawyers at closings are not explaining the significance because simply put, their client declined being charged to print the documents received electronically.  Conduit.

The amount of money is small but it always starts that way. If you want to discuss something with your Condo Board; Put your request in writing and they will respond.  Articulate your concern or complaint.  There is already an oversight process and that is the Small Claims Court System that lawyers have successfully used since the 60's (with the creation of Condo Ownership) You can call a Requisition Meeting over any issue with signatures from 15% of the owners.

Ms. Audrey Loeb from Miller Thompson published a comprehensive overview of Condominium Ownership and what it entails. Worthwhile reading for the Investor and every condo purchaser. 
 http://www.millerthomson.com/assets/files/article_attachments3/MT_A-Residents-Guide-Living-and-Buying-a-Condominium_A-Loeb.pdf

Having served on a few Boards, I realise the biggest issues are transparency and communication. What needs to be managed is articulation of why decisions are being made instead of silence. Posting those results in newsletters and Web pages. Clear communication in elevators.

Why take money away from potential owner's repairs to add them to government levy's? Purchasers also have a personal obligation to inform themselves of the Rules of Ownership. What are your obligations?

NXT 103 - 105 The Queensway Fall 2013

NXT Condominiums are located at 103 and 105 The Queensway, southeast corner of Windermere Ave and The Queensway. Built and designed by Cresford Development Corporation, furnished by Fendi Casa, and architecturally constructed by Alliance. Modern, livable glamour is an everyday essential at NXT, one of Cresford’s most stylish and sought-after residential properties in Toronto’s Swansea Village. 

Serving up dramatic views of Lake Ontario, High Park and downtown Toronto, NXT and its sister pillar, NXT 2, feature the cutting-edge design of Peter Clewes from Canada’s award-winning firm, architectsAlliance. A breathtaking glass pavilion connects this stunning new 29-storey tower of glass and steel to its upcoming sister residence. But NXT also connects every homeowner to the world around them with beautiful, wrap-around suite balconies and floor-to-ceiling windows that let city dwellers breathe in this condo’s unique city vibe.  There are 18 suites per floor.

NXT’s elaborate amenities include a state of the art fitness centre with sauna, indoor and outdoor pools, theatre and outdoor tennis court, just to name a few. That posh vibe is pumped up even further by an exquisite water garden, an outdoor courtyard, and a spacious glass walkway between the two buildings that offers spectacular views of NXT’s organically landscaped grounds.

Three years ago this was summarized as  NXT AT WINDERMERE BY THE LAKE: Southeast corner of Windermere Ave. and The Queensway. Builder: Cresford Developments. A 29-storey, 457-unit glass building. Prices: from $188,900 for 450 sq. ft. to about $600,000 for 1,144 sq. ft. Fees: 42 cents per sq. ft., plus heat and hydro Amenities: indoor/outdoor pool, party room, outdoor tennis courts, gym, and 24-hour concierge. Sales: 50 per cent sold. Status: starting this fall. Occupancy: 2010; nxtcondos.com.  

Have they lived up to their promises?

With 18 suites per floor the maintenance fee  is an actual $ 0.54 cents per square foot. Not at all unreasonable when compared with other communities.  An updated summary list is available for you here. Be informed when we are shopping.

Unmatched location near High Park, Sunnyside Beach and facing 3 transit routes to go Inner city...  I love Humber Bay Shore 

Need Info    Call me

Biggest Complaint is a lack of Communication

Condominium Act Update on Stage Two Recommendations – Governance

By Jason Rivait

The Stage 2 Solutions Report on the Condominium Act review (the “Report”) identifies five key areas for improvement relating to condo governance.  The key areas and recommendations are summarized below:

I.             ACCESS TO RECORDS

One of the most common disputes found in condo corporations relates to owners’ access to records.

The Report outlines the need to balance the rights of owners to have easy access to corporate documents, while at the same time guarding against frivolous demands for documents.  As such, it is recommended that standardized request and response forms be created to facilitate this process.  It is further recommended that access to common corporate documents would be provided for free.  For those documents where a fee is chargeable, the fee should be reasonable and an estimate should be provided in advance so that owners are fully informed of the cost before the request is processed.

The Report also calls for minimum retention periods for corporate documents.  In addition, the Report recommends that the Act should authorize boards to pass by-laws to expand the retention periods.  Where possible, corporations are also encouraged to convert these documents to electronic format, which is smart considering that many older corporations no longer have their corporate records because the documents are not typically housed in one location (i.e. the documents are usually held by management), and management/board members will inevitably change throughout the years.  The electronic storage of these documents would hopefully solve that problem.

II.           MEETINGS

There are some corporations that run very smooth and efficient meetings and there are others (and everyone has seen at least one of these) that adhere to the rules of the Wild West.

One of the major issues regarding meetings is the use of proxies.  Firstly, the Report recommends that proxies be submitted a day in advance of the meeting, which makes sense, especially for larger corporations, where managers madly rush to register the proxies on time so that the meeting can start, when scheduled.  To avoid tampering, anyone voting by proxy must sign next to each candidate or by-law they are endorsing.  Also, the person giving a proxy should be permitted to write in a name rather than merely voting for one of the pre-printed names on the proxy form.

Due to low participation rates, it is often difficult to reach the minimum quorum for meetings.  As such, the Report recommends that the 25% quorum requirement would be applicable for the first two meetings called to discuss a specific issue; however, should attendance fall below that level at the two meetings, quorum would be deemed to be met and the third meeting could proceed with those present either in person or by proxy.  This recommendation attempts to address voter apathy, which is found in many condo corporations.

With respect to by-laws, the Report recommends that the threshold to pass by-laws be lowered, but the appropriate formula/percentage will require further review.

Since many owners complain that boards do not communicate with owners (this is actually the complaint I hear most often at AGMs), the Report recommends that the Act require corporations to communicate with owners on a quarterly basis if the information relates to certain financial matters, the reserve fund or outstanding legal proceedings.

The Report also considers owners’ abilities to raise concerns on meeting agendas and discussed ways to give owners more of a voice at owners meetings.

III.          DIRECTORS AND OFFICERS

Many directors have very little or no experience serving on a board of any kind, let alone a condo board.  As such, you could have individuals making decisions for condo corporations that have multi-million dollar budgets, even though those individuals may have limited exposure and knowledge as to how boards and condos work.  For this reason, the Report recommends mandatory training requirements for first-time directors.  The course would be approximately three hours in length and would be required to be completed within six months of being elected.  If the first-time director does not complete the course within the aforementioned timeframe, he/she could be disqualified.

With respect to board member conduct, the Report recommends creating a code of ethics that is enshrined in law and if board members breach the code of ethics, they could be disqualified.

As for the owner-occupied position, the Report recommends getting rid of it, which I’m sure not many people will lose sleep over.

IV.          USE OF FINES

The Report considers whether boards should have the authority to levy fines against owners for numerous reasons, but due to the possible abuses that could occur, there does not appear to be an appetite for such change.  That said, the Report does give consideration as to whether a disciplinary function of the Condo Office could impose fines.  It appears that no clear-cut decisions have been made on this issue, to date.

V.           OWNERS’ AND DIRECTORS’ RIGHTS AND RESPONSIBILITIES

Many owners and directors seem to be confused as to their respective rights and responsibilities.  As such, the Report recommends that a basic summary of these rights and responsibilities be drafted and incorporated in the Act.  The Report recommends that this document be posted in condo lobbies and attached to status certificates.

This review of the governance section of the Report obviously does not outline every nitty gritty detail, but it does highlight some of the important recommendations.  Stay tuned for summaries on other sections of the Report.

You can provide feedback here on the Report and on the recommendations until November 8, 2013.

- See more at: http://www.condoreporter.com/condominium-act-update-on-stage-two-recommendations-governance/#sthash.4GWcToap.dpuf


With our Condominium Board we have a Verbatim Reporter that attends to record the minutes and discussions.   In addition to that, with readily available technology we have added recording the proceeding should it need to be referred to at a future date.

So far...   all the reform recommendation I have seen seem positive.

What do you think?

Condominium Reforms Part 11

As a Property Investor myself   I am personally pleased to see the Standardization of all condominium Declarations.

As we noted in our previous blog, the Stage Two Solutions Report on the Condominium Act Review (the “Report”) focused on five major areas where it was noted that changes are recommended. One of these areas is consumer protection.
We have outlined below a number of the recommendations which are directed towards those purchasers who are buying new condominium units from developers. Many of these recommendations are aimed at eliminating surprises.
Smarter Disclosure
Right now, purchasers are provided with a large book of condominium documents, which include a disclosure statement and proposed declaration, rules, by-laws and first-year budget. Purchasers have a ten-day cooling-off period within which they can review the documents. If there is something in them that they don’t like, then they can walk away from the deal without any penalty. However, many purchasers do not review the documents  because they are too lengthy and/or the language is difficult for them to understand, and they don’t want to pay their lawyer to read them.
It is proposed that the disclosure statement and condominium documents be published on a project-specific website so that purchasers can do word searches. This will make it easier for them to search specifically for provisions that they are concerned about, such as pets, for example.
It is also proposed that the Ontario Government publish an easy-to-read guide in plain language that would be distributed to purchasers by all of the developers. This would educate purchasers about what is involved in condominium living. Many purchasers don’t realize that there are more obligations than just paying common expenses – that there are limitations on their freedom that they would not have in a freehold home, such as, for example, pet restrictions, restrictions on renovations, even restrictions on the colour of the window coverings. This often becomes apparent when there is a breach of the declaration or rules and the Corporation attempts to enforce compliance. Purchasers need to understand that even though they will own their own unit, they must comply with the condominium documents. While this recommendation is definitely a good idea, there is still no guarantee that purchasers will actually read the guide.
Standardization of Condominium Declarations
The Report recommends that the Ministry create a standard declaration for residential condominium projects (including those residential developments that also include some commercial units). This standard declaration would include standard unit boundaries, maintenance and repair obligations, and insurance requirements. A standard declaration will allow a purchaser buying a new condominium to compare new condo projects on an “apples to apples basis”. There will be more consistency among condominium projects as to what are owner responsibilities and what are the condominium corporation’s responsibilities. Hopefully, this will also avoid some of the ambiguities and inconsistencies that are often found in declarations relating to maintenance and repair obligations and what is included in the unit. Of course, this would not apply retrospectively to existing condominiums nor to those condominiums presently being developed.
Prohibit Selling or Leasing of Assets that  Become Common Elements or Corporation Assets
Many purchasers of new condominiums are surprised to discover that  that the condominium corporation may be required to purchase or lease  assets from the developer, such as, for example, guest suites, superintendent’s suites, service areas, recreation amenities, building equipment, etc. and that the leasing/acquisition costs  form part of the common expenses. The Report recommends that this practice be stopped (except for limited exceptions for  specifically disclosed  green energy equipment). The result will be that while these additional leasing or acquisition costs will not form part of the common expenses, the costs of each unit will be increased, as the developer will still need to recover its costs of building these assets.
More Realistic First – Year Budgets
Currently, many owners  of newly created condominiums are finding that their common expenses dramatically increase in the second year. This causes angst for many purchasers as their personal budgets are based on the first year projected common expenses received from the developer. Several recommendations attempt to address this issue:
Developers will no longer be able to sell/lease units/assets to the condominiums, as these costs increase the common expenses.
Developers are not permitted to assume or to defer any costs in the first year that will kick in during subsequent years and cause a spike in the common expenses.
The minimum budget contribution to the reserve fund will be the greater of the amount set out in the reserve fund study undertaken by the developer, or an amount based on a formula that remains to be determined. (The Report concluded that the current reserve fund contribution of 10% of common expenses was not sufficient to create a healthy reserve fund.)  Developers will be required to   commission  a reserve fund study at the time that the developer starts marketing the units.  The reserve fund contribution in the first year budget would be based on that reserve fund study.  The developer would then be required to update the reserve fund study after the initial occupancy of the condominium and prior to registration. If increases to the first year reserve fund contribution  are warranted  based on the updated reserve fund study, such increase would be reflected in the budget without being deemed to be a material change.
Avoidance of Subsidization
Many new condominiums have ground floor commercial units. In some cases, the developers do not install separate utility meters for the commercial units where utility costs are shared on a pro rata basis by all the units. This results in the residential units subsidizing the utility costs consumed by the commercial units, as commercial enterprises generally consume more utilities than residents, particularly in businesses such as restaurants and hair salons, for example. The recommendation is that in mixed-use condominiums, developers will be required to install separate utility meters for the commercial units. This should result in lower utility costs being included in the common expenses of the residential owners.
If these recommendations are implemented, purchasers of new condominiums should be better informed about the responsibilities of condominium ownership, including the financial responsibilities.
http://www.condoreporter.com/condominium-act-2014-update-on-stage-two-report-and-recommendations-on-consumer-protection/

All of the items covered here are positive for the Owners and Future Investors of Condominium Units in Toronto, ON. 

Condominium Status Certificate

Do you think it should be the real estate sales professional’s responsibility to request a Condo Status Certificate or the solicitor’s. We all know that you must have one if you are closing a deal that involves a condo – but do you think it is better to get it ahead of time or just let the lawyer request it?

Traditionally, the process of requesting a Condo Status Certificate required tracking down the appropriate person at the condo corporation, making your request in writing (usually by fax) and then having to mail payment by certified means before they will even get started on the request. Next you can wait up to 10 days before the Condo Status Certificate is ready and arrange a courier to pick up the massive document.
Seems like a complicated, time consuming way to go about getting something, especially given the fact that it is 2013 and technology makes virtually every other aspect of our life effortless.
GeoWarehouse has made the process of requesting Condo Status Certificates a little bit easier. While many are not fully available for online viewing, they can be requested online through the GeoWarehouse Store.
What does this mean to you? It means that you can simply access the GeoWarehouse Store, request a Condo Status Certificate online, pay by credit card and then either receive it electronically or, if it is not available electronically, arrange to have it picked up. http://www.geowarehouseblog.ca/condo-status-certificate-online-say-it-aint-so/

I love the concept of ordering the Status Certificate online and waiting for the E Mailed link to everything. ByLaws, Financial Statements, Insurance Certificate, Rules and Regulations, Declarations and the updated Status Certificate.  Easy to read, adjust the font and just download the appropriate PDF'd section.  A condo management's contact details are obtained when you negotiate the offer with the owner of the unit. 

Received online.
Lawyers are angry because they need to print it for their clients
Clients are unhappy because the lawyer charged them for printing it.

In my experience the conversation goes something like this;
Lawyer: If I print it...   I need to charge you....  Thats a dollar a page. 
Buyer:  HUMMM   Pause ...  Nahh...   Its ok.  What's in it?
Lawyer: Rules about what you can and can't do,  what you legally own and what the state of the condominium building is in.

You are already angry at what the lawyer charges for a closing; cost is everything.

RESULT?  No one reads the Declarations or By Laws re; pets, commercial vehicles, using your condo as your International business headquarters or hundreds of other details like you're getting the right locker and storage unit and any proposed Maintenance Fee increases or scheduled Capital Repairs in future years

Danger?  None. We are all reliant upon the Title Insurance should something run aground.

Personally?   I request, pay and pick up the Status Certificate, read the By Laws and check the legal descriptions... because, I have been on the Board of Directors of a number of Corporations; and have an accounting back ground I understand the Financial Statements. Your lawyer is the best source to re read the Declarations and By Laws during the Conditional Period in your Agreement of Purchase and Sale. Stan Gelman has spoken of the need to review the entire bundle of documents.

Audrey Loeb of Miller Thompson released a really good whitepaper titled “Condominium Ownership – What You Need to Know” http://www.millerthomson.com/assets/files/article_attachments3/MT_A-Residents-Guide-Living-and-Buying-a-Condominium_A-Loeb.pdf

While it is possible to get Special Assessment Insurance with your Home Owners Policy it is better to subject them to additional scrutiny.

I would like an original signature under seal from the condo corporation that the facts at that particular moment in time are true, rather than a faxed or emailed Status.

Wouldn't you?