Blog for Toronto Commercial Real Estate

January 2008 Home Market Report

Toronto Real Estate Blog — Fri, 29 Feb 2008 15:50:13 -0500

January 2008 GTA New Home Market Report

February 29, 2008 -- RealNet Canada Inc. releases the January 2008 GTA New Home Market Report, providing insight into sales activity, index price and remaining inventory of Low Rise and High Rise projects by product type for each TREB district.

January 2008 GTA Low Rise New Homes Sales Regain Momentum

There were 1,703 new home sales recorded in January 2008 in the Greater Toronto Area, down 16% from the same time last year. January 2008 Low Rise sales accounted for 60% (1,019) of the new home sales activity in the GTA, with an increase of sales of 10% from the previous month and a decline of 26% from the same month last year. According to the RealNet New Home Price Index the average asking price of a new Low Rise home increased by 8.2% within the last 12 months. January 2008 High Rise sales totaled 684 units sold, down 31% over the previous month and up 3% compared to the same time last year. Similar to Low Rise, the average asking price of a condominium unit increased by 11.1% since January 2007.

Toronto Realty Taxes are the Highest in Canada

Toronto Real Estate Blog — Sun, 03 Feb 2008 11:49:51 -0500

Toronto has highest property taxes in Canada

Municipal spending is out of control

Kevin Gaudet, Financial Post

Even before Toronto announced its latest property tax hikes yesterday, Toronto took the dubious honour for having the highest property taxes in Canada, according to a detailed report issued by the city of Edmonton. Together with Ottawa, Brampton, Hamilton and London, Ontario municipalities take five of the top six spots on the list. This is something most homeowners in these cities know intuitively every time they pay their tax bill. Now they have it confirmed by an objective report that compared more than 30 municipalities across Canada.

Toronto ranked first with the highest taxes paid at $3,912, followed by Brampton at $3,826. Ottawa was third at $3,532; Hamilton and London were fifth and sixth at $3,305 and $3,078 respectively. St. John’s, Newfoundland, deserves credit for taking last place with the lowest average tax at $1,540, and Surrey, BC was second last at $1,814.

This sad but helpful property tax news is timely as city councils across Ontario prepare their budgets. As well, Premier McGuinty’s freeze on assessments for homes expired at the beginning of 2008. Not only will tax rates be going up, but for the first time in a few years homeowners will take a second hit if their home value reassessment shows an increase above the average increase. Assessment changes will take effect for 2009 property tax rates.

What is especially helpful about the Edmonton report is that it compares property taxes in a dollar value instead of as a percentage. Some mayors, like Toronto’s Mayor Miller, try to defend high property taxes by hiding behind what appears to be a lower rate than other cities. This is hiding because the average value of a home is high in Toronto so the total taxes paid for a Toronto homeowner are higher. When paying taxes one cares less about the rate paid or the details of the complicated formula used. Instead, one cares about how much money is being taken year over year. That is the only comparison relevant to a taxpayer, not whether the rate is 0.82 in one city versus 1.15 in another city.

The main reason for high and growing property taxes in Ontario is that municipal spending is out of control. Municipalities have a spending problem, not a revenue problem. While mayors continue to clamour for more and more money from many sources, their appetites for spending grow unchecked.

Data from Statistics Canada shows that municipal revenue across Ontario has been running at three times the rate of inflation. In 2006 municipal revenue was up 6.3% while inflation was only at 2.0%; in 2005 revenue was up 7.2% and inflation was only 2.2%. Despite Ontario municipal revenues ballooning from higher taxes, more transfers from other levels of government, higher user fees and new taxes in Toronto; mayors continue to complain that they don’t have enough.

It is interesting how mayors can work together cooperatively when it comes to demanding transfers from other levels of government or getting new taxing authority from the province. If that same energy were transferred to creating efficiencies and reducing costs, the report out of Edmonton might show a different - and welcome - conclusion.

Allen Mayer Salesperson

Right at Home Realty Inc.Brokerage

www.allenmayer.com

Why use a Real Estate Salesperson or Brokerage?????

Toronto Real Estate Blog — Fri, 01 Feb 2008 12:33:29 -0500

Is it a good idea to sell you Home or Commercial Property yourself?

How Does a Real Estate Agent Help You Sell Your Property?

If you have decided that now is the time to sell or lease your home or commercial property, you might consider: should I retain a Real Estate Brokerage or do it alone? Do you repair your car, file your own tax returns, or invest all of your investments without a professional. Anyone can buy the tools or a a tax preparation kit. However how many of us have the time, knowledge and experience to complete these tasks.

Buying a for sale sign is not the beginning of a successful transaction. Marketing , leasing and selling real estate is a complex procedure. It involves investment of time and capital as well one must follow certain legal requirements. Without the professional experience it may cause the unknown seller costly mistakes. It requires a tremendous depth of knowledge and experience, as well as substantial amount of time to follow-up on every detail promptly and properly.

Will you really save the real estate commission?
Most buyers equate a "For Sale By Owner" sign with a bargain. They assume you will sell for a discount because you do not have to pay the real estate commissions and, as a result, they'll probably offer you less than fair market value. Negotiating your price upward to regain even a part of the anticipated commission savings will be difficult at best.

Do you have the time?
If you do it alone, how much will you really save when you factor in the considerable time you will have to invest? Without a realtor's support, you are the one who will have to write and pay for the ads to market your property, remain available day or night for calls from prospects, run the open houses on weekends and show your property on short notice, screen potential buyers, fill out the paper work and do the dozens of things required to sell a home. Do you really have the time for all this? And what is your time worth - the time spent away from your family and friends and work?

How will you reach potential buyers?
Do-it-yourselfers are faced with the problem of how to market their home effectively. How good are you at writing hard-hitting advertisements that will stand out from all the others and entice prospects to call you? Where should you run these ads, when, and how often? Do you have the time and patience to handle telephone inquiries? Are you prepared for the cost of advertising - including a professional-looking "For Sale" sign? Realtors are experts in effective advertising and cover all of these costs as part of their service to you.

Moreover, when you work with a realtor your home receives far-reaching market exposure through the Multiple Listing Service (MLS). MLS is a computer-based system that relays valuable information about your home to a vast network of realtors and their potential home buyers in your market area. Remember, the greater exposure, the greater the chances for a higher price. Also, most realtors work for real estate companies that have their own websites or real estate online web portals which will feature your listing; these websites are generating thousands of visitors a day.

Do you really know the true market value of your home?
Setting a list price is perhaps the most difficult, yet critical, step in the home selling process. It requires extensive knowledge and training, as well as access to sophisticated market analysis developed over years of experience. Do-it-yourselfers usually lack these resources and often end up guessing at their asking price.

If you set your asking price too high, many prospective buyers will be frightened off without even seeing the property; too low and you will leave thousands of dollars on the negotiating table needlessly. One of your realtor's most important roles will be helping YOU decide upon and negotiate a realistic asking price for your home that meets your both your sales objectives and fair market value.

Are you ready to "pre-screen" every prospect?
Do-it-yourselfers are faced with the challenge of interviewing every person who responds to their ads or "For Sale" sign. How do you go about this arduous task without offending those who are clearly not serious or qualified buyers - and yet protect your own interests and security? Do you have the skills and experience to ask the right questions over the phone before you let a prospect visit? How are you going to find out whether they are really qualified to purchase in your home's price range?

Pre-screening prospects is absolutely necessary to weed out the lookers from the serious buyers. Your realtor knows how to do this effectively, saving you many hours of time and quite a few headaches.

How are your selling and negotiating skills?
Selling real estate is considerably different from selling most other products or services. Many do-it-yourselfers attempt to over-sell, smothering the buyer with every detail and nuance about the property. Few understand the subtle differences between a home's features and the potential benefits to the buyer. Few know how to ask the right questions and uncover the buyer's true needs and wants. Even fewer know how to complete the sale successfully through firm, impartial negotiation.

Realtors are skilled intermediaries with considerable ability to market your home successfully. Wouldn't you feel a lot more comfortable knowing an experienced realtor is on your team negotiating the highest price possible for your home?

Are you up-to-date on real estate and contract laws?
Remember when you bought your home and had to deal with all these papers thrust in front of you for your signature? Well, selling your home is equally complex from a contractual and legal standpoint. If you attempt to sell it yourself, you will either have to prepare all your own legal documents when an offer comes in, or translate the language in the offer presented from the buyer. In the excitement of receiving an offer, are you confident you will be able to recognize terms and conditions that are not in your best interest, or worse, are legally risky? Realtors know how to protect you from these potential legal pitfalls, and will work to help ensure your interests are properly protected.

Let a realtor help you sell your home.
Most of those who sell their homes do so with the assistance of realtors. Of those that try to do it themselves, most change their minds and end up going with a real estate professional, because the process is too complex, too time consuming and too dangerous without the help of a professional. Working with a licensed professional to sell your home, someone who is a member of a Real Estate Association, entitles you to an exceptionally broad range of services and benefits unavailable to do-it-yourselfers.

Please call the Mayer Team

Allen Mayer Salesperson Vice President Commercial Division

Right at Home Realty Inc. Brokerage

Direct Line 416.633.7767

www.allenmayer.com

Will the US Real Estate Market affect the Canadian Market in 2008?

Toronto Real Estate Blog — Wed, 16 Jan 2008 04:39:11 -0500

How Would the U.S Market Crunch Affect Canadian Real Estate in 2008? The market crisis along the south border has many homebuyers wondering how it will affect the housing market in Canada, but Canadian market analysts feel the problems the U.S. is experiencing should have little impact on real estate in this country. Canada is not expected to experience the same downturn as the U.S. market for many reasons. First, the Canadian economy is simpler and the investment environment is more conservative than the United States. Secondly, Canadian federal surpluses have given consumers more confidence which has led to increased spendings on homes, retail goods, and business expansion. Additionally, the Canadian housing market has not been artificially driven by bad lending practices. And, unlike the U.S., all mortgages in Canada are insured. However, Canada’s booming housing market could loose heat by the end of the year. The impact of the U.S. sub-prime crisis is expected to be felt by Canadians in three different ways: First, a tightening of credit markets will occur as lenders move to correct their losses because of the investments in commercial papers. To borrowers, this may also mean smaller discounts off the posted mortgage rate. Secondly, due to the overall economic impact and the soaring Canadian dollar, the impact will also be felt. There may be a slowdown in some business sectors related to housing and that may impact Canadian consumer confidence. Thirdly, the impact on our economy could come form the falling purchasing power of the U.S. consumers, which in turn impacts large ticket purchases that involves Canadian made products - the auto sector is a good example. "The Canadian housing market will slow down a bit in 2008, but that slowdown will be nothing compared to what happened in some U.S. markets in 2007. In Canada, the housing market has been setting records for volume and units sold for five consecutive years. We believe things are just moving back towards a more "normal" growth pace, but that still means the 2008 MLS® home sales activity will be the second highest on record, second only to the overall record was set in 2007.", says CREA's Chief Economist. CREA's market analysis for 2008 also does not show any dramatic adjustment in the average MLS® residential price, again contrary to the conditions in some U.S. markets. CREA's analysis shows prices setting new records in every province in 2007 and in 2008, but price increases will be smaller in 2008. In effect, price increases will become smaller as the resale housing market becomes more balanced. Manitoba and Nova Scotia are expected to post an increase in average price of 7 per cent or more in 2008, while New Brunswick and Newfoundland are expected to show the smallest increase in average price of 4 per cent annually. The national average residential MLS® price is expected to increase 5.5 per cent. "The housing market is expected to grow at a more moderate pace this year. However, this will be the result of decreasing affordability rather than the impact of U.S. sub-prime woes", said Craig Alexander, deputy chief economist at Toronto-Dominion Bank. To conclude, markets will remain tightest in the western provinces in 2008. Even though Alberta and British Colombia are expected to pull back from the blistering pace they set earlier in 2007, housing there will remain in high demand. The days of 25 or 30 per cent increases in average price are over, but prices are forecasted to go up in Alberta and British Colombia by 5.2 and 5.1 per cent, respectively. Ontario's market and other eastern provinces are expected to keep its momentum with a slight slow down.

Current Market Watch January 2008

Toronto Real Estate Blog — Mon, 07 Jan 2008 20:25:00 -0500

Healthy December Sales = Best Year Ever

January 7, 2008 -- A healthy 4,646 sales in December propelled 2007 sales to a record setting 93,193 sales, TREB President Maureen O'Neill announced today. "Year-end sales are up 12 per cent over last year and up 11 per cent over the 84,145 recorded during 2005, the Toronto market's previous best-ever annual performance."

On a year-over-year basis, prices rose seven per cent to $376,236 from last year's $351,941. The annual time-on-market figure stood at 32 days versus 2006's figure of 34 days, meaning that over the course of the past two years it has taken homes within the GTA barely a month to sell on average.

Breaking down the total, 1,756 sales were reported in TREB’s 28 West districts and averaged $357,711; 1,057 sales were reported in the 14 Central districts and averaged $531,366; 771 sales were reported in the 23 North districts and averaged $420,508; and 1,062 sales were reported in TREB’s 21 East districts and averaged $302,113.

NEIGHBOURHOOD CORNER

City of Toronto

The City of Toronto (E-1 to E-11, W-1 to W-10, and C-1 to C-15) recorded 39,052 sales in 2007, up 13 per cent over the 34,404 recorded in the previous year. Prices averaged $415,041, up 10 per cent over 2006.

New Information on Land Transfer Rebates

Toronto Real Estate Blog — Mon, 17 Dec 2007 13:34:12 -0500

New Info Re. Toronto LTT Rebates Provided By City

December 14, 2007 -- The City of Toronto has indicated that it has been able to make arrangements that will allow purchasers who are eligible for a FULL rebate of the Toronto Land Transfer Tax (TLTT) to close their transactions without paying the TLTT upfront (and then receiving a rebate at a later date). The City previously indicated that these arrangements would not be made until the “spring of 2008”, but has now indicated that changes will be made by February 1, 2008, when the Toronto land transfer tax takes effect.

Toronto land transfer tax is not payable on transactions closing before the tax takes effect on February 1, 2008. For transactions closing after the Toronto land transfer tax takes effect on February 1, 2008, the City of Toronto allows for certain rebates, as described below.

Details

According to the City, purchasers who are eligible for a FULL rebate of the Toronto land transfer tax will not have to pay the tax (meaning that they do not have to pay the tax upfront and be rebated later). This includes the following:

Purchasers who have entered into an Agreement of Purchase and Sale for a property on or before December 31, 2007; and
First-time home buyers where the total Toronto land transfer tax is $3,725 or less ($3,725 is the amount of TLTT payable on a home purchased for $400,000). First-time home buyers with Toronto land transfer tax payable above the maximum rebate amount of $3,725 (those purchasing homes above $400,000) will be required to pay the total Toronto land transfer tax, and then receive the maximum rebate of $3,725 at a later date from the City. Once all changes have been made to Teranet’s collection system, in the spring of 2008, these buyers will only have to pay the balance of the Toronto land transfer tax above $3,725.

More Information

Complete details of the Toronto land transfer tax are available here or by calling the City of Toronto at 416-338-0338.

Commercial Real Estate in Toronto Ontario

Toronto Real Estate Blog — Thu, 06 Dec 2007 17:17:36 -0500

Toronto Commercial Real Estate Listings, Leasing and Sales of Commercial and Industrial Real Estate throughout the Toronto GTA area.

We will deliver the results you require to solve your commercial and industrial real estate needs. We provide information on currently Available Warehouse Space and Available Commercial Properties. Our focus is the Toronto GTA Area Market.

Having strategically partnered with hundreds of business owners and real estate investors Allen Mayer and his Team at Right at Home Realty Inc. Real Estate Brokerage Commercial Division has the experience to assist in your firms commercial and industrial real estate requirements. * Right at Home Realty Inc. Brokerage is Toronto's Fastest Growing Independent Brokerage over " 850 salespeople"

Whether it is a lease or investment requirement, contact Allen Mayer's Team for all your Toronto Commercial Real Estate needs.

Toronto offers a full range of investment opportunities including brown and greenfields, Portlands, built-up urban areas and expansive suburban parks. All share excellent access to customers, suppliers and skilled labour.

Industrial Space
The City of Toronto has 283 million sq ft of industrial space, approximately 40% of the industrial space in the GTA. This places the Toronto GTA 3rd in North America for amount of industrial space.

Office Space
The City of Toronto has 116 million sq ft of office space, approximately 73% of the office space in the GTA making Toronto the largest office centre in Canada.

Retail Space
With annual retail sales of almost $50 billion, the Toronto region is Canada's largest retail market. It is also a market that is more monocentric than most North American cities of similar size. "The Toronto downtown thus remains the most important agglomeration of commercial nodes in the GTA"

Commercial Development Charges
Toronto does not have municipal development charges on industrial, office or institutional development projects.

www.allenmayer.com

www.commercialtoronto.com

Toronto Real Estate Introduction

Toronto Real Estate Blog — Thu, 06 Dec 2007 17:11:57 -0500

Toronto Real Estate is my market focus.

Allen Mayer services and provides Commercial Listing throughout the Toronto GTA area.

Allen provides assistance to the Tenant and Landlord has has provided professional service in the finding Office Space, Industrial Space,Commercial Space for his clients please review our website at www.commercialtoronto.com.

Today's Toronto's real estate market is becoming more involved and therefore the realtor must also commit the time to study and follow the real estate market place and have the knowledge available to their clients. Allen Mayer of Right at Home Realty Inc. Brokerage is providing this to his clients.

Resources of the Toronto real estate professional along with the process utilized by the experienced Realtor are the cornerstone of the real estate transaction. The value of Toronto's Market knowledge, negotiation skills and innovative strategic approaches is a value feature when it comes to closing a real estate deal in Toronto.

Market Knowledge - A Realtor can provide in-depth knowledge regarding the Toronto's market. This includes interpreting the data and presenting it in a logical format for clarity to the client.

Negotiating Skills - A third party in the negotiation process is invaluable on several fronts. A more favorable contract price can be negotiated with the proper structuring and expertise of an experienced Toronto real estate professional, enhancing the buyer or seller position. Toronto Residential Realtor will provide the client with a buffer, protecting the client’s proprietary information.

Innovative and Strategic Approaches - The Realtor stays abreast of the changing Toronto real estate business in terms of technology and financing. The residential realtor handles and coordinates all aspects of the transaction process. Strategic approaches are used by the Residential Realtor in analyzing the client's unique requirements. These approaches lead to cost-effective solutions.

ALLEN MAYER
Vice-President
Salesperson
Right at Home Realty Inc. Brokerage
DIRECT LINE: 416.633.7767

www.commercialtoronto.com