Thursday, March 31, 2011
Home prices up 0.4% in January states Teranet House Price Index
Canadian home prices in January were up 0.4% from the previous month, according to the Teranet-National Bank National Composite House Price Index™. It was the second consecutive monthly rise, following on three consecutive monthly declines. January prices were up from the previous month in four of the six metropolitan markets surveyed: 0.9% in Vancouver, 0.5% in Toronto, 0.4% in Halifax and 0.3% in Montreal. Prices were down 0.6% in Ottawa, a fifth straight monthly decline, and 1.0% in Calgary, a fifth decline in six months. Thus the correction of late last year turned out to be short-lived for the country as a whole - three months - and longer-lasting in Ottawa and Calgary. For the entire article click the link above.
Wednesday, March 16, 2011
Is it too hard to evict lousy tenants?
This is only one question answered by Mark Weisleder a trusted source of real estate information for Realtors. Check out Mark's interesting Blog.
Mark Weisleder is a lawyer who teaches many of the RECO and Ontario Real Estate Association courses. He also authors a weekly column in the Toronto Star on real estate issues..
Mark Weisleder is a lawyer who teaches many of the RECO and Ontario Real Estate Association courses. He also authors a weekly column in the Toronto Star on real estate issues..
Why rent increase rules may be an election issue
March 11, 2011
Mark Weisleder
Toronto MPP Cheri DiNovo wants to make changes to the way residential rents can be increased that will make it almost impossible for a landlord to raise the rent above the guidelines without the approval of the Landlord and Tenant Board.
DiNovo, who sits for the NDP in Parkdale-High Park, has introduced a private member’s bill that proposes three key changes to the existing law. As it stands now, a landlord can increase the rent by 0.7 per cent, or $7 for every $1,000 this year, in most cases. The landlord has to give you 90 days notice of the increase and it can only be increased once every 12 months.
There are some key exceptions to these rules:
• If the unit becomes vacant, the landlord can increase the rent as he wants as long as he find someone willing to pay it. This is why in some buildings, one apartment is rented for double than what a similar sized apartment is renting for in the same building.
• If the building was built after November 1, 1991, the rent can also be raised higher than the guideline, as long as the 90 days’ notice is given and it is at least 12 months after the prior rent was charged.
• If the landlord is providing a new service, such as parking or storage, then the landlord and tenant can agree to a fee for this service and it can be above the guideline; and
• A landlord can apply to the Board for an increase above the guideline if he can prove extraordinary increases in property taxes, utilities or if they make eligible capital improvements to the property.
Under Dinovo’s proposed Bill 112, things would change:
• Any building built after November 1, 1991 will also be required to comply with the rent guidelines;
• If a rental unit becomes vacant, the landlord must still use the prior rent as the basis for charging rent to any new tenant; and
• No rental increase can be made above the guideline based on an increase in utilities.
Here’s an example of how things can go.
In 2002, Marissa Price was paying rent of $179 per month. Her landlord raised the rent to $250 per month, without giving her 90 days’ notice. Two years later, Price applied to the Board for a return of the rent that she felt had been illegally charged,
In the original decision, the Board refused her application it came more than one year after the rent was increased. However, on appeal, the Ontario Divisional Court held that since it was proven that the required 90 days’ notice of rent increase was not given, then the increase was void to begin with, so Price could bring the application.
Even though the rental amounts in this case were relatively small, the principle is very important. It establishes a precedent where a tenant can challenge a rent increase even after the one year limitation period expires, in certain circumstances.
This case highlights the fact that anyone thinking about buying a rental property should make sure that:
• All rents have been lawfully increased;
• The 90 days’ notice has been given in each instance;
• Interest on all last month’s rent has been paid or added to the last month’s rent amount; and
• That the tenants have no existing claims against the landlord.
The buyer should ask for a signed statement from every tenant on the property confirming this.
Many landlord advocates argue that if this Bill 112 is passed into law, it will discourage new rental housing accommodation. This may also cause landlords to stop investing in their buildings, due to a limited ability to increase the rents if investments are made.
The City of Toronto has the highest concentration of tenants in the Province. Rest assured that the position of all political parties on the issue of how rents can be raised going forward is sure to become a key election issue in October, 2011.
Mark Weisleder
Toronto MPP Cheri DiNovo wants to make changes to the way residential rents can be increased that will make it almost impossible for a landlord to raise the rent above the guidelines without the approval of the Landlord and Tenant Board.
DiNovo, who sits for the NDP in Parkdale-High Park, has introduced a private member’s bill that proposes three key changes to the existing law. As it stands now, a landlord can increase the rent by 0.7 per cent, or $7 for every $1,000 this year, in most cases. The landlord has to give you 90 days notice of the increase and it can only be increased once every 12 months.
There are some key exceptions to these rules:
• If the unit becomes vacant, the landlord can increase the rent as he wants as long as he find someone willing to pay it. This is why in some buildings, one apartment is rented for double than what a similar sized apartment is renting for in the same building.
• If the building was built after November 1, 1991, the rent can also be raised higher than the guideline, as long as the 90 days’ notice is given and it is at least 12 months after the prior rent was charged.
• If the landlord is providing a new service, such as parking or storage, then the landlord and tenant can agree to a fee for this service and it can be above the guideline; and
• A landlord can apply to the Board for an increase above the guideline if he can prove extraordinary increases in property taxes, utilities or if they make eligible capital improvements to the property.
Under Dinovo’s proposed Bill 112, things would change:
• Any building built after November 1, 1991 will also be required to comply with the rent guidelines;
• If a rental unit becomes vacant, the landlord must still use the prior rent as the basis for charging rent to any new tenant; and
• No rental increase can be made above the guideline based on an increase in utilities.
Here’s an example of how things can go.
In 2002, Marissa Price was paying rent of $179 per month. Her landlord raised the rent to $250 per month, without giving her 90 days’ notice. Two years later, Price applied to the Board for a return of the rent that she felt had been illegally charged,
In the original decision, the Board refused her application it came more than one year after the rent was increased. However, on appeal, the Ontario Divisional Court held that since it was proven that the required 90 days’ notice of rent increase was not given, then the increase was void to begin with, so Price could bring the application.
Even though the rental amounts in this case were relatively small, the principle is very important. It establishes a precedent where a tenant can challenge a rent increase even after the one year limitation period expires, in certain circumstances.
This case highlights the fact that anyone thinking about buying a rental property should make sure that:
• All rents have been lawfully increased;
• The 90 days’ notice has been given in each instance;
• Interest on all last month’s rent has been paid or added to the last month’s rent amount; and
• That the tenants have no existing claims against the landlord.
The buyer should ask for a signed statement from every tenant on the property confirming this.
Many landlord advocates argue that if this Bill 112 is passed into law, it will discourage new rental housing accommodation. This may also cause landlords to stop investing in their buildings, due to a limited ability to increase the rents if investments are made.
The City of Toronto has the highest concentration of tenants in the Province. Rest assured that the position of all political parties on the issue of how rents can be raised going forward is sure to become a key election issue in October, 2011.
Monday, March 14, 2011
Average Selling Price Up in February in GTA
TORONTO - March 3, 2011
Greater Toronto REALTORS® reported 6,266 transactions through the TorontoMLS® system in February 2011. This result was 14 per cent lower than the record sales reported in February 2010. While not representing a record, February 2011 sales were 50 per cent higher than the number reported in February 2009 during the recession and slightly higher than the average February sales over the previous ten years. "Continued improvement in the GTA economy, including growth in jobs and incomes and a declining unemployment rate, has kept the demand for ownership housing strong,” said Toronto Real Estate Board (TREB) President Bill Johnston.The average selling price for
February 2011 transactions was $454,423, which was more than five per cent higher than the average selling price reported in February 2010. “Market conditions remain quite tight in the GTA. There is enough competition between home buyers to promote continued price growth,” said Jason Mercer, TREB’s Sen
Greater Toronto REALTORS® reported 6,266 transactions through the TorontoMLS® system in February 2011. This result was 14 per cent lower than the record sales reported in February 2010. While not representing a record, February 2011 sales were 50 per cent higher than the number reported in February 2009 during the recession and slightly higher than the average February sales over the previous ten years. "Continued improvement in the GTA economy, including growth in jobs and incomes and a declining unemployment rate, has kept the demand for ownership housing strong,” said Toronto Real Estate Board (TREB) President Bill Johnston.The average selling price for
February 2011 transactions was $454,423, which was more than five per cent higher than the average selling price reported in February 2010. “Market conditions remain quite tight in the GTA. There is enough competition between home buyers to promote continued price growth,” said Jason Mercer, TREB’s Sen
Tuesday, March 8, 2011
Spring Cottage Life Show: Sponsored by RE/MAX!
The Spring Cottage Life Show held at the International Centre in Mississauga is an event that keeps avid cottagers coming back year after year.
Show attendees will be able to enter the RE/MAX RELAX & Win contest by visiting the RE/MAX Real Estate area in Hall 3 where they have a chance to win one of four prizes. This year RE/MAX is giving away one Spa Gift Experience, a Golf Foursome and power cart prize, a Winery Experience for two where the winner and one guest will enjoy an epicurean experience including five courses of fine wine and food served in picturesque locations throughout the Jackson-Triggs winery or the grand prize, an all-inclusive vacation.
Show attendees will be able to enter the RE/MAX RELAX & Win contest by visiting the RE/MAX Real Estate area in Hall 3 where they have a chance to win one of four prizes. This year RE/MAX is giving away one Spa Gift Experience, a Golf Foursome and power cart prize, a Winery Experience for two where the winner and one guest will enjoy an epicurean experience including five courses of fine wine and food served in picturesque locations throughout the Jackson-Triggs winery or the grand prize, an all-inclusive vacation.
Saturday, March 5, 2011
The next horizon for real estate websites
Source: WAV Group. December 2010
Whats next for real estate?
Back in the olden days, just after the MLS book lost its appeal and was replaced by the MLS - a rather interesting new product launched for agent and broker websites called IDX - internet data exchange.
The idea behind it was that broker participants of an MLS could display the listings of other participating brokers on each other’s websites. This led to an explosion of broker websites. Everyone has one.
After awhile, democratically minded MLS boards gave consideration to the agents and extended IDX privileges to them in most markets, as long as the broker approves the vendor and takes responsibility for compliance with IDX rules and regulations. This led to an explosion of agent websites - 20% of agents have one.
Template websites for agents - think rDesk, Z57, Advanced Access, and others make it easy for agents to get a website up fast and economically. Top producing agents went a more custom route, purchasing premium sites from the above providers, and still others pursued more elaborate business management solution like AgentAchieve or TopProducer.
Then came blogging. For the past 8 years - it has been a challenge to attend a seminar or conference in real estate without some session on the agenda dealing with blogging. Blogging is a way for agents and brokers to become publishers of information that is important to home buyers and sellers, enhance your search engine visibility, and create an online personality. Soon after blogs emerged, so did search solutions that plug into your blog - companies like Wolfnet, Diverse Solutions, and FBS became very popular.
A significant component of blogging is the ability to share your blog posts on a new platform that emerged with power about 5 years ago - Social Networking. Using some cut and paste plugins, you can easily promote your blog posts on twitter, facebook, likedin, youtube, etc. By extension, your blog post readers may do the same - helping your blog content to go Viral on Social Networks with retweets and shares and the like.
Today we see a new trend emerging - forget your website, forget your blog - just use facebook as the center of your website life. Redirect your URL to your facebook page, plug in your twitter feed and IDX and call it a day. Facebook is becoming the new internet. Forget Web 2.0, forget designing websites around your Brand - just put together a great facebook page and connect all of your customer to that. Save a fortune, and always stay connected to your customers.
Given that the model rules and rugulations now permit indexing on agent websites, facebook may be a website provider, plugging in IDX to your facebook page may become commonplace - there is much to think about for the MLS rules committee in your local market. Just how far will you go, and how fast will you get there?
Whats next for real estate?
Back in the olden days, just after the MLS book lost its appeal and was replaced by the MLS - a rather interesting new product launched for agent and broker websites called IDX - internet data exchange.
The idea behind it was that broker participants of an MLS could display the listings of other participating brokers on each other’s websites. This led to an explosion of broker websites. Everyone has one.
After awhile, democratically minded MLS boards gave consideration to the agents and extended IDX privileges to them in most markets, as long as the broker approves the vendor and takes responsibility for compliance with IDX rules and regulations. This led to an explosion of agent websites - 20% of agents have one.
Template websites for agents - think rDesk, Z57, Advanced Access, and others make it easy for agents to get a website up fast and economically. Top producing agents went a more custom route, purchasing premium sites from the above providers, and still others pursued more elaborate business management solution like AgentAchieve or TopProducer.
Then came blogging. For the past 8 years - it has been a challenge to attend a seminar or conference in real estate without some session on the agenda dealing with blogging. Blogging is a way for agents and brokers to become publishers of information that is important to home buyers and sellers, enhance your search engine visibility, and create an online personality. Soon after blogs emerged, so did search solutions that plug into your blog - companies like Wolfnet, Diverse Solutions, and FBS became very popular.
A significant component of blogging is the ability to share your blog posts on a new platform that emerged with power about 5 years ago - Social Networking. Using some cut and paste plugins, you can easily promote your blog posts on twitter, facebook, likedin, youtube, etc. By extension, your blog post readers may do the same - helping your blog content to go Viral on Social Networks with retweets and shares and the like.
Today we see a new trend emerging - forget your website, forget your blog - just use facebook as the center of your website life. Redirect your URL to your facebook page, plug in your twitter feed and IDX and call it a day. Facebook is becoming the new internet. Forget Web 2.0, forget designing websites around your Brand - just put together a great facebook page and connect all of your customer to that. Save a fortune, and always stay connected to your customers.
Given that the model rules and rugulations now permit indexing on agent websites, facebook may be a website provider, plugging in IDX to your facebook page may become commonplace - there is much to think about for the MLS rules committee in your local market. Just how far will you go, and how fast will you get there?
Wednesday, March 2, 2011
Cost savings or.... Investment Freeze?
Too often we cut costs in our real estate sales business with out an investment analysis of the implications of what we are doing. The consequences can be minimal or catastrophic.
What is an investment? It is money, effort or time that is spent to receive a return on that investment. The simplest investment is a monetary investment in a bank account. Deposit a dollar in a bank account today and you will get interest, low interest, agreed, but you will get a return. If you want a greater return you usually must take on a larger risk or greater sacrifice. A Guaranteed Investment Certificate will pay a greater return over a longer period of time. Guaranteed returns come from the sacrifice of time of the investment period. A greater risk again would be the purchase of a stock or bond in a business or company. Greater return from more risk in the investment. We all know the consequences of risk. Without risk our returns would be paltry!
We also understand that in an efficient marketplace we need to hold our costs to as low as possible. The profit equation is simple, the amount of profit from any venture is determined by the gross revenues produced minus and expenses. So when we decrease our expenses our profit will go up! Or will it?
So many times I see mistakes made in determining what are good costs and bad costs, expenses that should be maintained simply to keep your revenue streams increasing rather than holding neutral or even decreasing.
For instance, recently a sales associate in my office decided they should give up their office at our branch as the cost to have an office was just too great to bear in their opinion. This person considered the office cost an expense. My contention is for that particular agent the cost of an office was an investment. It was truly an investment in their business and time. The office allowed them to organize their business. It was a focal point for them to be in business. It allowed them to concentrate and stay in connection with the Brokerage as a whole. They did not consider objectively the true returns that this investment in an office gave them.My bet is that for this particular agent their business will stagnate as they attempt to stay focused in whatever new office organisation they prepare.
Also of concern is the impact a change like this will make in the personal life of a sales associate. I like to go to work to be at work. There needs to be a break from your personal life and your business life to allow sanity to prevail. So for me, an office allows this barrier to exist. I would argue that the cost of an office is indeed an investment in you, not a cost to be reduced.
Some costs are necessary for success and this is just one. I just as easily could have written this article on advertisement, marketing, personal assistants, professional development, personal fitness training, equipment, etc. Office costs are just an example of a necessary evil that our business insists on for success.
Sometimes we just need to prioritize for the better of our business and our lives.We need to invest in our business and ourselves.
What is an investment? It is money, effort or time that is spent to receive a return on that investment. The simplest investment is a monetary investment in a bank account. Deposit a dollar in a bank account today and you will get interest, low interest, agreed, but you will get a return. If you want a greater return you usually must take on a larger risk or greater sacrifice. A Guaranteed Investment Certificate will pay a greater return over a longer period of time. Guaranteed returns come from the sacrifice of time of the investment period. A greater risk again would be the purchase of a stock or bond in a business or company. Greater return from more risk in the investment. We all know the consequences of risk. Without risk our returns would be paltry!
We also understand that in an efficient marketplace we need to hold our costs to as low as possible. The profit equation is simple, the amount of profit from any venture is determined by the gross revenues produced minus and expenses. So when we decrease our expenses our profit will go up! Or will it?
So many times I see mistakes made in determining what are good costs and bad costs, expenses that should be maintained simply to keep your revenue streams increasing rather than holding neutral or even decreasing.
For instance, recently a sales associate in my office decided they should give up their office at our branch as the cost to have an office was just too great to bear in their opinion. This person considered the office cost an expense. My contention is for that particular agent the cost of an office was an investment. It was truly an investment in their business and time. The office allowed them to organize their business. It was a focal point for them to be in business. It allowed them to concentrate and stay in connection with the Brokerage as a whole. They did not consider objectively the true returns that this investment in an office gave them.My bet is that for this particular agent their business will stagnate as they attempt to stay focused in whatever new office organisation they prepare.
Also of concern is the impact a change like this will make in the personal life of a sales associate. I like to go to work to be at work. There needs to be a break from your personal life and your business life to allow sanity to prevail. So for me, an office allows this barrier to exist. I would argue that the cost of an office is indeed an investment in you, not a cost to be reduced.
Some costs are necessary for success and this is just one. I just as easily could have written this article on advertisement, marketing, personal assistants, professional development, personal fitness training, equipment, etc. Office costs are just an example of a necessary evil that our business insists on for success.
Sometimes we just need to prioritize for the better of our business and our lives.We need to invest in our business and ourselves.
Homeowner - Seller Report... From Dominec Mirabelli, Morcan Financial Inc.
So you’re selling your home...but for how much? What you need to know about a Comparative Market Analysis?
As part of the listing process, many agents prepare a Comparative Market Analysis (CMA) to help establish a realistic price range for your home. A CMA is basically a written report on your home that contains property profiles of homes in the area which compare closely to yours. The report will often include information on homes currently listed for sale, recently sold properties and properties which did not sell during the listing period. Certain amenities, additions and/or improvements in the homes are also considered.
The key to remember about a CMA is that if properly researched, it will give you the hard numbers necessary to reach a realistic pricing decision. The price range you get from an agent using a CMA may well be lower than what you get from agents who don't use one. But when a CMA is used to determine the asking price of a home, the final sale price is usually closer to the CMA price, than a price determined without the use of a CMA. This can be an important benefit because a properly priced home will usually sell faster.
In addition, once a CMA has been done and provided you with the current selling prices in your neighbourhood and a price range for your listing, it can also be used in conjunction with an estimate of the selling costs to give you a reasonably accurate estimate of the remaining proceeds. This will help provide you with some comfort and peace of mind as you look toward investing in your new home.
If you have any further questions about CMA’s please feel free to call or email me directly for more information.
Readers can also order a free copy of any of our Special Seller Reports on “Finding the Right Sellers Agent”, “Seller Mistakes”, “Seller Open Houses”, or “Selling Tips”.
Domenic Mirabelli
Licence #M10000364
Morcan Financial Inc.
(C) 416.303.4480
dmirabelli@morcan.ca
http://www.thescooponmortgages.com/
http://thescooponmortgages.blogspot.com/
As part of the listing process, many agents prepare a Comparative Market Analysis (CMA) to help establish a realistic price range for your home. A CMA is basically a written report on your home that contains property profiles of homes in the area which compare closely to yours. The report will often include information on homes currently listed for sale, recently sold properties and properties which did not sell during the listing period. Certain amenities, additions and/or improvements in the homes are also considered.
The key to remember about a CMA is that if properly researched, it will give you the hard numbers necessary to reach a realistic pricing decision. The price range you get from an agent using a CMA may well be lower than what you get from agents who don't use one. But when a CMA is used to determine the asking price of a home, the final sale price is usually closer to the CMA price, than a price determined without the use of a CMA. This can be an important benefit because a properly priced home will usually sell faster.
In addition, once a CMA has been done and provided you with the current selling prices in your neighbourhood and a price range for your listing, it can also be used in conjunction with an estimate of the selling costs to give you a reasonably accurate estimate of the remaining proceeds. This will help provide you with some comfort and peace of mind as you look toward investing in your new home.
If you have any further questions about CMA’s please feel free to call or email me directly for more information.
Readers can also order a free copy of any of our Special Seller Reports on “Finding the Right Sellers Agent”, “Seller Mistakes”, “Seller Open Houses”, or “Selling Tips”.
Domenic Mirabelli
Licence #M10000364
Morcan Financial Inc.
(C) 416.303.4480
dmirabelli@morcan.ca
http://www.thescooponmortgages.com/
http://thescooponmortgages.blogspot.com/
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