Landlords: Is An Inspection Report Important On Move-In & Out Days?

“One Ontario resident learned the hard way about the importance of inspections. When she initially moved in, neither she nor her landlord formally inspected the property. When she moved out, she found herself legally and financially responsible for removing a wall that the previous tenants had constructed in the unit.”
It is critical that the condition of the rental unit be documented on moving day.
This will help:
  • Note previous damage
  • Establish a baseline to evaluate normal wear and tear
  • Decide who is responsible for paying for any potential damages that might occur in the future.
For tenants, it will also waive any liability for damages that existed prior to moving in.
Tenants and landlords should always conduct the move-in inspection together.
[call-out: Did you know? In some provinces, the security deposit is only repayable if the move-in inspection matches the one completed upon moving out.]
Located in British Columbia or the Yukon?  (not Ontario)
A Condition Inspection Report is required by law. Both the tenant and landlord should complete, sign and date the form at move-in and move-out.
Final inspections
When a tenant moves out, the Move-in Report will come in handy.  Refer to the initial inspection that was completed upon moving in, and compare it with the condition of each room on moving out.
We strongly recommend taking photos prior to move in, ever little bit helps to avoid confusion at move out.
Ask your Sutton Realty for any photos available from the time you listed the property.

Which Features Will Help To Sell Your Home Quickly?

With trends constantly changing these days, it’s hard to tell which new features and design improvements will actually benefit in the quick sale of your property.

Realtor.com has offered a few key features that have helped home owners sell their home the fastest and for the best price!

  1. Gourmet Kitchens/Chefs’ Kitchens
    Open kitchen designs have exploded onto the real estate market, becoming a centerpiece for each home. Luxury is important to buyers, especially when it comes to hosting friends and dinner parties. Dark palettes like black & navy have taken precedent over the more traditional white and neutral shades. Open shelving, double doors, lots of windows, quartz counters, stainless steel appliances – these are all adding to the popularity and success of home-selling!
  2. Specialty Rooms Whether it be a home office, theatre, gym or mudroom – buyers are asking “why go out when you can stay in?”. While not as popular as they were in the beginning, design experts are saying that homes which come equipped with any type of specialty room usually go for about twice as much as the national median!
  3. Outdoor FeaturesSolar panels have become a really hot commodity thanks to the demand from climate-conscious buyers and those who are looking to cut down their electricity bills. Built-in pools (whether shared or private) have always been consistently popular, but while they attract some buyers in warmer parts of the globe, some buyers may repel due to maintenance and liability issues. Bottom line for pools is to install it for your own enjoyment first, resale value second.
  4. Smart Home Features and Electronics Anything from interconnected appliances or internet-controlled thermostats to fully-wired homes. This can be an expensive addition, but the trend is booming thanks to Amazon Echo and Google Home. These electronic home features are so easy and convenient to use – there is almost no reason these additions will go out of style. With this technology, homeowners can now pick up a simple smart home security system for pricing as low as $150, vs. having a technician come in and install a system which could run a bill over $1000! People really like having an app on a phone to know if someone’s at home or not.
  5. Indoor FeaturesNo matter where you go – fireplaces are always welcome and will never go out of style, however there are definitely more modern approaches to the classic fire place, such as being built into the wall. Another key indoor feature is the walk-in closet; not as popular as they once were due to the de-cluttering movement.

Whether you are looking to sell your home at an amazing price or are looking to purchase a home which includes any of the above upgrades, please give us a call!

We have agents waiting by the phones to answer your questions and help you with all of your buying and selling needs – each step of the way!

Sutton Group Realty Systems Inc., Brokerage

416-896-3333 or 905-896-3333

www.SuttonRealty.com

Which Canadian Province Is Leading In Multi-Family Building Permits?

New statistics show an increase of 1.6% per month in relation to permit value for residential buildings in Canada, with Ontario as the clear leader for both single-family & multifamily permits since January. In Toronto, the value for multi-family dwellings rose from 26.5% to $871 million which was the second highest value on record!

Since December, multi-family permit approvals have increased by 3.5%, totalling to 21,192. Single family home approvals decreased by 2.3% from the previous month.

As for non-residential permits, the drop was pretty significant with a total of $3.0 billion down 15.8% from December, which resulted from lower construction intentions from commercial buildings. The total value for all permits issued in January for both residential & non-residential was $8.4 billion in January, down from 5.5% from December’s record high.

Whether you are looking to invest or to buy the perform home for you and your family, do not hesitate to call us! We have agents standing by to answer any of your questions.

Sutton Group Realty Systems Inc., Brokerage

416-896-3333 / 905-896-3333

www.SuttonRealty.com

 

 

 

Severe Housing Downturn in Canada is Unlikely

 

Royal Bank has stated that a widespread real estate downturn is unlikely and that the probability is “still low but has increased somewhat in recent months”. Mortgage stress tests and rising rates are making it harder for buyers to get a foot in the door.

Toronto, Vancouver & Alberta are currently at risk due to the high interest rates put on the high-priced areas, and affordability is a major at a crisis level. “Regulatory changes made the market healthier – it is now balanced, well supported by economic and demographic fundamentals, and while condo building activity is elevated we see few signs of overbuilding,” says RBC.

Montreal remains one of Canada’s stronger markets at the present time, says RBC. Elevated levels of apartment construction in Montreal, Vancouver, and Toronto is a potential long-term concern, however unsold inventories are low.

 

For more on this article, visit: https://ca.sports.yahoo.com/news/severe-housing-downturn-canada-unlikely-rbc-190257940.html

 

Canada Considers Applying Mortgage Stress Test Rules To Private Lenders

Canada is considering subjecting private lenders to the same mortgage stress test rules faced by banks to prevent housing markets from being destabilized by the lenders’ rapid growth, three sources with direct knowledge of the matter said.

Private lenders currently account for approximately one-tenth of Canada’s $1.5 trillion mortgage market, and are still dwarfed by banks but their growth has accelerated since the new rules have been introduced. The B-20 rules that were introduced last January require banks to test the borrower’s ability to make repayments at 200 basist points above their contracted rate, and have resulted in more applications for loans being rejected.

As of now, private lenders are not subject to the B-20 rules because they are supervised by provincial regulations rather than the Office of the Superintendent of Financial Institutions, the federal regulator. Bringing them under federal supervision would require a change in the law.

Two options were discussed, either the federal government would have to ask provinces to apply the B-20 guidelines themselves, private lenders would then also need to provide stress tests the same as the banks’, or the less severe alternative – to recommend provinces ensure private lenders run tighter checks on the ability of their borrowers to repay loans but stop short of imposing the actual stress test. A final decision has yet to be made.

Mortgage investment companies (MICs), have been the main driver of private lenders’ growth, picking up borrowers spurned by the banks. Lending up to 90 per cent of a property’s value, they typically charge borrowers an annual rate above 10 percent, sometimes as high as 15-20 compared with the 3-5 percent offered by banks.

For more on this article visit: https://business.financialpost.com/real-estate/mortgages/exclusive-canada-mulls-measures-to-curb-private-lenders-growth

 

 

10 Canadian Housing Charts That Show How Out Of Whack The Market Is

After years of booming times, Canada’s housing markets are at a turning point. Interest rates are rising, and the new mortgage rules have taken some steam out of the market.

Below are 10 charts illustrating just how out of whack things have become.

Canadians have never had to shell out more of their income to own a home:

Condo construction is at an all-time high:

Young families are not wanting to live in said condos:

You need to be a one-percenter to own an “average” Vancouver home:

Vancouver homes are comically overpriced:

Vancouver’s new distinction: Worst housing market:

There aren’t enough new residents to prop up Vancouver’s market:

Toronto has as much as it can handle:

Mortgage growth is at historic lows:

Investment condos are now often losing money:

 

Liberals Look To Make Home-Buying More Affordable For Millenials

 

Finance Minister Bill Morneau gave a speech in Aurora, Ont., where he asked if Ottawa has any plans to help first time-buyers. Morneau said the Trudeau government is looking for ways to make home-buying more affordable first-time buyers.

Housing is expected to be a prominent campaign issue ahead in October’s federal election. The Liberal government has focused on three housing-related issues: Canada’s shortage of affordable housing, a run-up in real estate prices and ensuring millenials can afford homes.

He stated that the Federal government has already taken steps to increase the supply of affordable housing and to cool the hottest markets by introducing stress tests that limit some people’s ability to take out big mortgages.

According to the Toronto Real Estate Board, the average price for all types of housing there was $810,000 in December. Detached homes were going for more than $918,000. Conservative MP Karen Vecchio argued in a statement Tuesday that Trudeau government policies, including it’s carbon tax, have made housing less affordable.

NDP Leader Jagmeet Singh proposed measures he insisted will help build 500,000 new affordable housing units across Canada over the next 10 years. He said Ottawa should stop applying GST to the cost of building new affordable units, provide a subsidy to renters who spend more than 30 per cent of their incomes on housing and double a tax credit for first-time home-buyers from $750 to $1,500.

In 2015, Liberals promised to enhance the popular Home Buyer’s Plan which enables first-time buyers to borrow up to $25,000 tax-free from their registered retirement savings to purchase a new home. The amount musst be repaid within 15 years. And in 2017, they unveiled a 10-year, $40-billion national housing strategy which the government has billed as a plan that will provide more social housing and affordable renting units.

 

For more on this article, visit:  https://www.princegeorgecitizen.com

 

 

 

 

 

 

 

Toronto remains popular choice for global CRE investors

Among the top 30 cities favoured by investors for commercial real estate, Toronto ranks among the top 30 cities. It has help this position for every year in the past decade. However, Canada’s only city in the annual JLL rankings has slipped down the list from 14th to 19th, through the duration of 2017 to 2018. Asia Pacific cities are increasing in popularity.

London is still being favoured in the commercial real estate world, despite Brexit. The global rankings show that investors prefer cities they are familiar with, that have a well-established investment market, and high levels of transparency. New York slipped back in 2017 with Los Angeles becoming North America’s top city.

“In a year when investors have had to deal with increasing populism, protectionism and political uncertainty, the appeal of real estate as an asset class has continued to increase,” commented Richard Bloxam, Global Head of Capital Markets at JLL.

Investors remain focused on gateway cities, despite tight pricing. Many are looking at alternatives or emerging locations, as well as varying real estate properties within these cities, rather than exploring other less familiar cities.

Total volumes in 2018 were $733 billion, up 4% from 2017, the best annual performance in a decade.

Cross-border purchases accounted for 31% of activity in 2018, close to the 10-year average, suggesting investors still have appetite to buy outside their own markets.

“A notable trend is that half of these established gateway cities are in Asia Pacific. Increasing transparency in these markets is encouraging more investment, moving these cities even higher up the rankings in 2019 and beyond,” Bloxham said.

Looking ahead for 2019
Over the next year, JLL is forecasting a pull-back by some investors due to caution and selectivity.

That could mean a 5-10% reduction on 2018’s volumes although real estate remains an attractive investment compared to other asset classes with strong fundamentals.

Yields are now at historic lows in most markets across the globe. A sharp correction is unlikely, as there is still a significant weight of capital looking to invest in real estate, and corporate occupier market fundamentals across many markets are positive.

Among other key factors in JLL’s forecast:

  • The institutional real estate universe will continue to expand, driven by factors such as low volatility, diversification benefits, long-term income and an attractive pricing premium to core sectors. Asset classes such as student housing, senior living and multi-family have continued to attract more institutional money in 2018 and this is likely to continue in 2019.
  • Industrial now accounts for 17% of all investment, up from 10% in 2009. In contrast, the retail sector has seen less activity as investors adjust their investment approach to reflect changing consumer behavior. In gateway cities, the office sector tends to account for a higher proportion of investment volumes—68% in 2018, compared to 51% in global volumes.
  • The top 30 will continue to be dominated by the gateway cities in 2019. However, at the edges, investors will consider a widening range of cities in their strategies. Reflecting real estate investors’ risk appetite, secondary cities in established transparent markets, such as Osaka and Atlanta, are likely to attract more attention, as opposed to moving into entirely new countries.

For More On This Article, Visit: https://www.canadianrealestatemagazine.ca/

The drop in 2018 Canadian Home Prices Isn’t What It Seems

Robert Kavcic, a senior economist for BMO suggests the decline in Canadian home sales and prices is not as bad as it seems. “Remember: If the price of every house in the neighbourhood stays the same in a given year, but fewer of the expensive ones change hands in favour of the cheaper ones, the ‘average price’ will fall”.

The average price of a Canadian home this past December was $472,000 down 4.9 percent from the same month a year ago, according to the CREA.

For the whole year, home prices have gone down by 4.1%, marking the biggest drop since 1995. Sales were especially low in the costly Toronto and Vancouver markets, which is going to have a considerable pull on the nation average price.

Removing Greater Vancouver and the GTA from calculations trims close to $100,000 from the national average.

“Main points here: It wasn’t as bad as the headline 2018 national price decline look; but it wasn’t good for much of the country either; and this year could see housing stagnation become a wider and more persistent theme” Kavcic concludes.

 

For more on this article, visit: https://www.livabl.com/2019/01/drop-2018-canadian-home-prices.html?utm_source=Weekly+BuzzBuzzReport&utm_campaign=fa2f6e35d1-EMAIL_CAMPAIGN_2018_06_29_03_54_COPY_01&utm_medium=email&utm_term=0_6d6db2b31f-fa2f6e35d1-217826257

Toronto Housing May Enter A Vicious Cycle

The Toronto Real Estate Board has down that the market’s sales volume fell by 14.7% year-over-year in November, while new listings declined 26.1% during the same period, coupled with the average sales price growth of 3.5% annually (up to $788,345).

The trend points to a vicious cycle for the near future, says TREB president Garry Bhaura. 

“These numbers reflect a tighter marketplace, which will translate into increasing competition between buyers and also likely provide the foundation for renewed price growth” Bhaura warned.

There will be stricter mortgage qualification rules introduced in the new year, which are becoming more of a burden to the market than anything. “We’re seeing strong rates of price growth on homes with lower average price points, such as condos and semi-detached homes. This is largely due to the impact of the OSFI-mandated mortgage stress test and higher borrowing costs, which have impacted affordability and pushed many consumers to consider a lower-priced home.”

“Not only is it important to build more housing, it’s important to consider the kind of housing we build and where it’s built in relation to access to transportation alternatives” Bhaura explained.

“Specifically, we must focus on producing an adequate supply and appropriate mix of housing types, where ‘missing middle’ housing (home types that bridge the gap between a detached home and a condo) and transit supportive housing developments should be priorities.”