Toronto, ON

Toronto Vacancy Factor is at 1%

02-09-12

David Pylyp: Real Estate Agent in Toronto, ON

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Office: (905) 272-3434

Mobile: (647) 218-2414
Secondary: (905) 361-3387

With all the talk about Toronto Condo Bubbles, Housing Bubbles and all the informed conversations online about HOW the Real Estate and condo market in TO will collapse this year; I offer this simple answer.

Toronto has a vacancy factor of less than 1% Yes 1%

This article from Forbes magazine posts in very graphic fashion the vacancy factors in major US cities that have exceeded 14% and actually have broken the figures down separately for homes for sale. This is further impacted by the homes repossessed under foreclosure but not yet released for sale by the bank.

http://www.forbes.com/2009/02/12/cities-ten-top-lifestyle-real-estate_0212_cities_slide_2.html

It was during my conversation with Tamara Dorris, a Sacramento Real Estate personality, a guest appearance on her BLOG TALK radio show that some misconceptions came to light.

Blog Talk Radio Interview with Tamara Dorris

Power of Sale properties in Toronto are actually far and few between; any new construction crane that you see is prepaid by 15% on each unit and a sales rate of 75 to 80% before they even start digging the foundation. Investors, business and First time buyers are buying because they can rent with a (1% vacancy factor) market rent averaging $1,500 for a one bed $2,000 for a two bedroom.

Toronto is in a Sellers market with a 32 day supply of homes. There is a lack of homes available for sale in the under 750 thousand range where most heeled couples are purchasing their first or second home. Toronto sold 90K homes in one year at an annual increase of about 5% in value.

This increase in value has continued unabated since 1995.

Could it stop Tomorrow - Sure.... Do I think it will... No. Why?

Toronto's average price increases have been 2 - 3% over the rate of inflation.

Toronto has and is becoming a Service Information Technology based business Center. Universities in Toronto are rated world class. Markham is the new home for many companies. Mississauga's growth and success has been the attracting Fortune 500 companies. Kitchener Waterloo is undergoing a revival in the inner city with the addition of Google and RIM Blackberry.

Come join us in Toronto!

You'll like it here!

Feel free to add your comments

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Lets compare Condo Maintenance Fees Toronto

02-07-12

David Pylyp

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Office: (905) 272-3434

Mobile: (647) 218-2414
Secondary: (905) 361-3387

Lets have a look at and compare what makes the maintenance fees in your building.

First Lets establish a few things,

Your furnace unit consumes electricity; usually through a heat exchange unit in a central part of the condo or maybe you are blessed with two. The heat exchange units take warmth (hot water heated from a boiler) from the coil and disperse it into your unit. The cost of operating the fan blower is yours, the costs of heating the water as to your maintenance fees. The unit is inside your unit and operates from the Common Expenses. The liability for maintenance and annual inspections is yours although most buildings have annual maintenance inspections.

Having a building schedule an annual inspection, cleaning and filter replacement is much cheaper than you going out and contracting someone yourself. (IE $50 per unit includes filter or $285 per visit to book your own HVAC technician) There are savings in mass purchasing power.

What factors will effect the Maintenence Costs in a building?

Vertical Height ( How many floors are occupied)

Number of Units per floor

Services Offered

Number of Elevators

Staffing on Hand for both Security Concierge and Cleaning,

Staff monitoring the Rec Center as Social Recreation Guides.

Two Towers Sharing a Recreation Center

How much technology is in place for Cameras and Security.

Avoidable Additional Costs

We could scrimp on Window Washing, Landscaping, and Garage Sweeping. We could wait till 9 - 5 for the elevator technician ( They charge a premium for after hours to release you. Toronto Fire also charges if it is not an Emergency.) We could turn down the thermostat in the winter to 65 like my Dad did to save money. Turn down the Hot water temp and take shorter showers. These are all municipal services that are billed directly from the City to the building. Has Hydro Electric raised their fees in the last 5 years? By what percentage? Will they continue to do so? Have water rates increased.. Absolutely.

Can we save on garbage removal; Yes, actually most building pay a separate garbage pick up fee both for recycle and garbage. (Tipping Rates) If we dispose of less we would pay less. SO do we want magazines and Yellow Pages delivered to the building? What about Canada Post and Bulk mail advertisers? Is everything online now? Can you opt out?

It may sound great to have a 70,000 square foot indoor gym and social club, A full time Social Co ordinator, Outside Running Track, A Disco on the Top Floor and the Sky deck. All these marvelous upgrades need maintenance that will add to your fees in future years. If your gym is part of two or three individual condo (towers) buildings that are tied by a common Recreation Center It can be very challenging to set rules or make changes unless you have a mandate from all three towers.

Average... Whats Average?

We have been doing an Annual Common Charge Survey of the properties we manage. As you would expect, there is quite a variation in fees. The 2011 survey was done on 248 hi-rise condominiums comprising 52,406 units. The average common charge per unit per month was $606.47, the average suite size in the survey was 1,057 square feet and the average cost per square foot per month was 57.4 cents.
John Oakes President Brookfield

Conclusions

So in reality the tallest most crowded monolithe structure that is stand alone will be the most cost efficient. The buildings with 30 + floors and 18 suites per floor will always surpass the lower (high rize) building that have 6 to 12 floors. The more residents that share your rec center also make this more efficient. Having 12 people in the elevator every time is more efficient.

Lets Examine individual Line Items/ as a percentage of Gross Revenues.

Assuming you are a high rise with a 300 unit population with modern glass and concrete slab construction. (vs Brick Exteriors) and underground parking.

Hydro 9.6 %

Gas 12.5 %

Water 4.8 %

Security 18.7%

Cleaning Main/ 7.5%

Assessment Repairs 21.2%*

Condo Mgmt Fee 6.3%

Total as % Income 80.6%

Contribution to reserve is now recommended at a minimum 15%*

NB* Toronto has in the last few years had the mildest winters in recent history. All of these assumptions (savings) change if the weather turns colder. There was no snow removal expense as there was no snow.

How is life in your building? Tell me about it....

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Home Staging With an Eco-Conscience - Have You Ever Considered Indoor Air Quality As A Selling Advantage? - A Toronto Home Staging Perspective.

02-06-12

Rachel Craggy

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Office: (416) 256-0088

Mobile: (416) 206-8781

Mold in the Bathroom, Toronto Home Staging Regardless of where you live, when staging a home we always want to appeal to the largest number of buyers, why not consider home staging with an eco-conscious?

You may be wondering why you should even consider taking on such a project, afterall don't you already have enough work to do without then trying to be "green"?

Well if we truly want to be appeal to the largest number of buyers, let's consider the additional markets we may appeal to such as:

buyers who may have multiple chemical sensitivities
buyers who are trying to live with a greener conscience

Do you have buyers who have expressed they suffer with asthmatic conditions or buyers who are seeking a greener home?

Well in light of the fact both Canadians and Americans spend 90% of their time indoors, it is no wonder people have sensitivities to poor Indoor Air Quality.

Here are some tips and pointers that you can easily incorporate into your listing checklist when preparing your home for sale and don't be afraid to let your buyers know!

Products to Consider When Your Home Staging

Use Low VOC (Volative Organic Compound) Paints and Stains - Of the 10,000 chemicals that you will find in paint, 300 of those chemicals are known Eco-friendy Home Staging, Toronto Home Staging toxins and 150 are linked to cancer.

Many of these Chemicals can irritate some potential buyers like fresh cut grass and have been known to cause a host of health issues from breathing problems, headaches, and nausea, to burning watery eyes. Low VOC paints and stains can be found in most retail chains who sell paint.

If you need to install a new floor, why not consider wood With FSC Certification? This means the wood is provided by a managed forest where trees are added as they are removed, they are not simply logging 1,000s without replenishing the forest. Of the trees that are removed every year without consideration for the environmental ramifications, did you know a new species a week is being lost?

Bamboo Floor - this product is questionable, bamboo is a highly renewable source yes, but the amount of resins that are needed to produce this type of flooring can be high in VOCs and the amount of energy required to bring bamboo to North America is also a problem - In this case is cost out-weighing the gain?

Furniture With Natural Fibers - wool rugs and linen furnishings are both current and natural fibers.

Preparing Your Listing, Additional Things to Consider

Open the Windows Once A Day - the quality of outdoor air is much healthier than the quality of air you find indoors so when listing your property (in fact you should consider this everyday) open your windows to change the air.
Control the Humidity and Control the Growth of Harmful Bacteria and Mold - Some people are highly susceptible to mold and can detect it right away. Moisture build up on walls, windows and other surfaces can lead to the growth of mold and mildew. Be sure to ventilate the air, making use of exhaust fans such as in the bathroom and kitchens every day when showering or cooking.
Clean Moldy Surfaces With Detergent.
Repair Leaky Walls, Basement, and the Roof.
Clean and Disinfect Humidifiers, De-Humidifiers, and Air-Conditioners.
Make Sure All Your Filters Are Clean.

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ecoENERGY Retrofits Program - Cancelled.

01-31-12

DONNA SINGH

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Office: (416) 461-0925 xPAGER

Mobile: (416) 575-4663

The ecoENERGY Retrofits Program has been cancelled by the Canadian Federal Government, so much for assisting homeowners in getting their homes retrofitted. If you were fortunate to have registered your property before January 28th, 2012 your are still in luck to have the work completeted by the deadline of June 3oth, 2012. This deadline has been extended from March 31st. 2012.

This program allowed homeowners to receive grants of up to $5000.00 to make their homes energy efficient.

Prior to have any renovations done homeowners must have completed an energy audit of their home by a licensed service provider. The report will give the homeowner recommendations for renovations to improve the efficiency of their home. Once work has been completed a 2nd audit will be done to determine the improvement in the home's energy efficiency.

I am one of the lucky ones as I registered my home last fall. So in the spring I will be getting a new roof and hopefully a rebate from the federal government. I live in a 108 year old home in Toronto and I have a lot to do to bring our home up to a more energy efficient standard.

For more information on the ecoENERGY Retrofit – Homes program, please visit: http://www.ecoaction.gc.ca/ecoenergy-ecoenergie/retrofithomes-renovationmaisons-eng.cfm

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