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table of
CONTENTS page 04-05 06 07-08
jan-feb 2018 volume 05 issue 07 New OSFI Stress Test Set to Limit National Home Price Appreciation to 4.9% in 2018 Starter Homes Are Going To Be More Unaffordable In 2018: Report These 4 GTA Areas Are Poised For Huge Commercial And Residential Growth
08
The TanTeam Seminar Series 9 - Expecting The Unexpected In The 2018 Real Estate Market - Thursday, January 25th, 2018
09
Why A 20% Home Down Payment May Not Be Worth It
10-11
Annual Year End Event 2017 - Picture Gallery
12-17
2017 Winter - January-February TanTeam Listings
12-13
Featured Listing - 155 Yorkville Ave - Yorkville Plaza, Toronto
14-15
Featured Listing - 350 Webb Dr, City Center, Missisauga
16-17
Featured Listing - 25 Holmcrest Crt - Central Park, Brampton
18-19
December 2018 GTA REALTORS® Release Monthly Resale Housing Figure
20-21
Craft Wines & Gifts Grand Opening Coming Soon! March 2018
This Magazine Is Brought To You By:
Designer: Kai Min • Cover: Winterwelvaart Festival Netherlands • Source: Stock Photo's • Advertising: Kai Min | support@tanteam.com Royal LePage Meadowtowne Realty™ is a licensed franchise to Royal LePage and is Independently Owned and Operated. Whilst every care has been taken in preparing this magazine, Tan•gazine and all contained herein. Potential purchasers shall satisfy themselves as to all matters throughout Tan•gazine are those of the author and do not necessarily represent the form any part of any contract, offer or representation. Additionally, this magazine is
vendors, corporations, business’ and affilliates give no warranty for the information and seek independent advice, if necessary. The views expressed in the article(s) views of The TAN Team and its affiliates. The information contained herein does not not intended to solicit properties currently contracted and/or already listed for sale.
New OSFI Stress Test Set to Limit National Home Price Appreciation to 4.9% in 2018 According to the Royal LePage Market
Financial
potential buyers and sellers take a ‘wait
Survey Forecast released today, the
Institutions (OSFI) mortgage financing
and see’ approach. Moreover, some
Royal LePage House Price Composite,
stress test, which will take effect on
potential move-up buyers will likely delay
which measures home prices in 53
January 1, 2018. The stress test targets
listing their homes as they will not be
key Canadian cities, is expected to
existing and prospective homeowners
able to access sufficient financing for
increase 4.9 per cent by the end of
applying for a mortgage, requiring them
their desired next purchase. With further
2018 to $661,919, in the face of a series
to meet stricter criteria when seeking
diminished affordability, it is likely that
of measures aimed at affordability
new financing.
demand for entry-level properties will
challenges in Greater Vancouver and the
With a large number of existing
surge. In most urban centres, this will
Greater Toronto Area.
homeowners potentially failing the test
be most evident in the condominium
when refinancing next year, a temporary
segment.
regulatory interventions in the housing
reduction
industry in years is the incoming Office
may further stagnate price growth as
One of the most significant
of
the
Superintendent
in
consumer
of
confidence
“It
is
prudent
that
policy
makers introduce measures that help
protect the housing market from runaway
“Insufficient housing supply in Canada’s
According to a recent Royal LePage
price inflation,” said Phil Soper, president
largest
drive
Advisor Survey[3] on rental demand, 76
and
significant price increases to higher than
per cent of Royal LePage agents who offer
natural supply and demand forces will
normal levels once the market adjusts
rental services in the Greater Toronto
always triumph over regulatory tinkering.
to the new stress test,” continued Soper.
Area saw a year-over-year increase in
Attempting to use public policy to steer
“Aggressive home price inflation is still
multiple offers and 68 per cent of those
property prices in huge, rapidly growing
more of a threat today than the risk of a
respondents cited affordability as a
cities like Toronto and Vancouver is like
market crash in Toronto or Vancouver. On
barrier to homeownership as the number
a tugboat trying to turn an ocean liner.
the other side of the coin, regions where
one factor driving rental demand. In
Consistent, measured policy can have a
demand is soft and already struggling
Greater Vancouver, 59 per cent of
positive impact. Just don’t try to turn the
to absorb the supply of homes for sale
respondents servicing the Vancouver
market on a dime or you risk sinking the
may have difficulty adjusting to these
area saw a year-over-year increase in
ship.”
measures.”
multiple offers for rentals. As a result,
CEO,
Royal
LePage,
“However,
cities
will
begin
to
Decreasing, or already low,
the pipeline of potential homebuyers
inventory levels are expected to continue
providing a market price floor is growing
to define market characteristics of many
and this growth trend is expected to
large urban centres including the Greater
continue through 2018.
Toronto Area, Greater Vancouver, Ottawa
and Montreal. Further adding to the
to expand by 2.1 per cent in 2018, with
already bloated housing demand backlog,
all provinces, with the exception of
British
both
Newfoundland, expected to see growth.
experienced a surge in interprovincial
Economic growth is an important driver
migration in 2017, putting increased
of healthy housing markets.
pressure on Greater Vancouver and the
Greater Toronto Area housing markets.
important the resource sector is to our
Demand from immigration, alongside
economy but fewer understand just how
demand from Peak Millennials[1] who are
important the real estate industry is to
increasingly becoming of homebuying
Canada,” said Soper. “In 2016, 13 per
age, will continue to outpace supply.
cent of the country’s GDP was driven
Columbia
“Royal
and
Ontario
LePage’s
research
Canada’s economy is expected
“Most Canadians know how
by real estate. In British Columbia, that
into Peak Millennials[2] shows that
number was closer to 18 per cent.”
younger Canadians desire to own their
own homes with the same conviction as
about their jobs and optimistic about the
their parents before them,” said Soper.
health of their country and their city, they
“Eighty-seven per cent see real estate
will invest in a home,” Soper concluded.
as a good financial investment. The
“At projected levels of demand, Canadian
tight rental market is reflective of their
housing is poised for growth for years to
dreams sitting on hold while they save
come.”
“When people are confident
for a downpayment. Of course there will be those who are priced out of a market altogether. They will continue renting and this will drive demand for investor
Royal LePage - Media Room December 13th, 2017
properties.”
05
Starter Homes Are Going To Be More Unaffordable In 2018: Report
New mortgage rules are going to slow the market, but prices are expected to rise. New stricter mortgage rules are expected to slow the housing market next year, but prices are still expected to rise about five per cent, according to a report by Royal LePage.
In its market survey forecast,
the real estate firm says its house price composite, which measures prices in 53 Canadian cities, is expected to increase 4.9 per cent next year to $661,919.
A
new
stress
test
for
homebuyers who don't need mortgage insurance will be required starting next year.
The new rules are expected
to reduce the maximum amount buyers who have a down payment of 20 per cent or more will be able to borrow starting Jan. 1
Royal
LePage
said
some
potential buyers looking to upgrade may delay listing their homes as they will not be able to access sufficient financing for a planned new home.
However, it said that with
further diminished affordability, it is likely that demand for entry-level properties will surge.
"Insufficient housing supply in
Canada's largest cities will begin to drive significant price increases to higher than normal levels once the market adjusts to the new stress test," Royal LePage CEO Phil Soper said in a statement. "Aggressive home price inflation is still more of a threat today than the risk of a market crash in Toronto or Vancouver. On the other side of the coin, regions where demand is soft and already struggling to absorb the supply of homes for sale may have difficulty adjusting to these measures."
06
Prices expect to go up in
third consecutive monthly decline.
Toronto, Montreal, and Vancouver
The
Royal
LePage
report
The index fell in four of the 11
suggests home prices in the Greater
metropolitan areas surveyed including
Toronto Area are expected to increase
Toronto, Hamilton, Ottawa-Gatineau and
6.8 per cent in 2018, while the Greater
Edmonton.
Montreal Area is expected to see an
increase of 5.5 per cent.
national composite index was up 9.2 per
cent, the smallest 12-month gain since
Greater Vancouver is expected
to increase 5.2 per cent in 2018.
Meanwhile,
the
Compared with a year ago, the
June 2016.
Teranet–
National Bank national composite house price index for November was down 0.5 per cent from the previous month, the
Huffington Post.ca December 13th, 2017
These 4 GTA Areas Are Poised For Huge Commercial And Residential Growth in locations that will be required to accommodate the future population growth,” reads the report. One area ripe for development is the Hurontario corridor in Peel Region, where a
20-kilometer
provincially-funded
Hurontario LRT will be completed by 2022.
“In the case of the HLRT,
it traverses an incredible amount of real estate and population,” Avison Young Canadian research principal Bill Argeropoulos tells BuzzBuzzNews. “It will run from Mississauga to Brampton, areas where you’re going to see the population expand rapidly in the coming years.” If you build it, they will come. At least,
population continues to expand and the
that’s what some experts are predicting
provincial government puts more and
for four GTA areas, each set to become
more money into transit infrastructure.
major transit hubs in the next few years.
The population of the GTA is set to grow
“In
the
by 42.3 per cent to 9.6 million by 2041. In
developments in progress… at East
response to this rapid growth, the Ontario
Harbour
government committed over $160 billion
the
not-too-distant [in
future,
Toronto],
Vaughan
Metropolitan Centre, Pearson Transit
to developing new transit in 2014.
Centre and the Hurontario LRT corridor
will provide significant opportunities for
adjacent to transit developments like the
forward-looking
property
Vaughan subway expansion, can expect
owners,” reads a new report from Avison
to see an increase in both residential and
Young.
commercial property investment.
this
commercial
The report, released earlier week,
outlines
potential
According to the report, areas
“Developers
are
making
areas
significant investments in all types of
for explosive growth in the GTA as its
residential and commercial real estate
According
to
Argeropoulos,
while the Hurontario corridor has seen relatively little commercial real estate development over the last few years, the introduction of the LRT could make all the difference. “There’s been very little if any office development in that area for quite some time, but the HLRT will link it to other networks in Mississauga, and that’s going to be very attractive to investors and developers,” he says.
Argeropoulos
also
stresses
that the new infrastructure will allow for the development of residential property for
young
professionals
currently
working and living in downtown Toronto, who are facing affordability issues.
07
“Not everyone can afford to
live and work in downtown Toronto,” says Argeropoulos. “What’s exciting is that these areas can provide affordable housing to people who want to commute, and will now be able to do so without using a car.”
He
says
that
the
areas
surrounding the new Vaughan subway extension, the Pearson Transit Hub in the area surrounding Pearson International Airport, and the 60-acre East Harbour transit hub located east of the Don River, will likely see similar development booms in coming years.
“The
opportunity
for
investment is there, so I think there are two attitudes you can have about it,” says Argeropoulos. “Either you build it now in anticipation of the demand, or you do it after the fact. But either way, we’re going to see major commercial and residential growth in these areas in the next 10
Sarah Niedoba - Buzz Buzz News November 9th, 2017
years.”
the tanteam seminar series nine Expecting The Unexpected In The 2018 Real Estate Market
thursday, january 25th, 2018 @ 7PM 6948 financial drive, mississauga on, l5n 8j4 what you need to know about the changes in the real estate market this 2018 and what to expect Key Note Speaker • Peng Hock Tan Parking • Free (right next to building) Registration • 7:00 PM Presentation • 7:30 PM On Site Music, Snacks and Refreshments Courtesy of The TanTeam
08
Why A 20%
Home Down Payment May Not Be Worth It
It's tough to feel financially prudent when buying a house these days. That's why an increasing number of first-
backed insurance that is paid for by the
The two mortgages outlined by Mr.
time buyers are saving a down payment
borrower. A conventional mortgage (20
Bricknell are pretty much a wash right
of 20 per cent or more. In doing so, they
per cent or more) can be insured as well,
now when compared on cost. Looking
avoid having to buy mortgage default
but by the lender. All in all, a high-ratio
ahead, the high-ratio mortgage offers
insurance which, in the case of a house
mortgage is preferable from the lender's
the potential for lower interest rates
price of $487,095 (the national average)
point of view and often results in a lower
when it's time to renew your mortgage.
bought with a 10 per cent down payment,
mortgage rate.
This assumes that lenders will continue
would be 3.1 per cent or $13,590. This
premium is generally added to the
found that rates on five-year fixed
mortgages.
mortgage, which means more interest to
rate mortgages are about 0.45 of a
pay.
Mr.
Bricknell
has
lately
to look more favourably at high-ratio Mortgage industry data show
percentage point less for high ratio as
that even as house prices increased
It certainly sounds financially
opposed to conventional mortgages.
from the early 2000s through the past
prudent to make a 20-per-cent down
Maybe your lender can do better than
few years, the percentage of people
payment where possible, but this isn't
that. If not, consider this example of how
making down payments of less than 20
always the case. In fact, you may save
a down payment less than 20 per cent
per cent has declined to 39 per cent from
money both now and in the future by
can pay off.
54 per cent. If the rationale for this is to
making a slightly smaller down payment
We start with a $450,000
save money and be financially prudent,
and taking on the cost of mortgage
house and a buyer with a 20-per-cent
a rethink is required. Depending on the
default insurance.
down payment already saved. With a
rates offered by your lender, a slightly
conventional mortgage amortized over
smaller down payment could save you
about the new mortgage lending rules
25 years, Mr. Bricknell figures this person
money in the long run.
that were announced last week and will
could get a five-year fixed rate mortgage
take effect on Jan. 1. When making a
at 3.29 per cent. That means a monthly
down payment of 20 per cent or more,
payment of $1,758.
the new rules require that you be able to
qualify for a mortgage at the greater of
when this borrower makes a 19-per-
the five-year benchmark rate published
cent down payment. A smaller down
by the Bank of Canada, or the original
payment means borrowing a bit more,
contractual rate plus two percentage
and thus more interest over the life of
points. An easier path to a mortgage may
the mortgage. Also, mortgage insurance
be to make a smaller down payment.
will be required at a cost of $10,206. All
To even propose this seems
of this nets out to a monthly payment
bizarre. "The story has been that you're
of $1,743, with the mortgage insurance
just throwing money away with mortgage
premium included. How is this possible?
insurance,"
Listen up if you're concerned
said
Mike
Bricknell,
a
Now, let's see what happens
Mr. Bricknell said it's because
mortgage agent with CanWise Financial.
the high-ratio borrower gets a mortgage
rate of 2.84 per cent.
What this thinking ignores
is the way today's mortgage market
There's a stress test for high-ratio
discriminates
who
mortgages as well, but it's marginally
make down payments of 20 per cent
less onerous than it is for conventional
or more. They may pay a fair bit more
mortgages because you only have to
for a mortgage than someone with a
be able to handle the Bank of Canada
high-ratio mortgage (down payment of
benchmark rate, currently 4.89 per
less than 20 per cent) both now and on
cent. Thus the high-ratio mortgage in
renewal.
Mr. Bricknell's example would have a
A
against
lender
people
dealing
with
a
qualifying rate of 4.89 per cent and the
client who has a sub-20 per cent down
conventional mortgage would be at 5.29
payment can take comfort from the fact
per cent (the client's actual rate plus two
that the loan is covered by government-
percentage points).
Rob Carrick - The Globe & Mail October 26th, 2017
09
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this November 2018
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15
UPDATED DETACH IN "H" SECTION WITH NEW HVAC, TANKLESS HOT WATER AND RENOVATED INTERIOR Central Park Area 25 Holmcrest Crt, Brampton Strategically located near the bustling intersection of Dixie Rd and Queen St, nestled in quiet and mature neighbourhood. This property is freshly renovated, featuring a revised main floor concept, new laminate floor throughout property, newly tiled kitchen, tiled kitchen backsplash, newly painted walls throughout, renovated upper level bathroom, new renovated stairway (upper and lower), upgraded electrical throughout, large Master bedroom (combined 2 of 4 rooms). Listed for sale without tenants. Can be purchased with tenants for investment. Don’t miss this opportunity to make your move, contact The TanTeam at support@tanteam.com to book a private showing appointment!
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17
January 2018 GTA REALTORS® Release Monthly Resale Housing Figures Toronto Real Estate Board President Tim
forward,
could
to less expensive options. Conversely,
Syrianos announced that Greater Toronto
continue to influence consumer behavior
the condominium apartment segment
Area REALTORS® reported 92,394 sales
in 2018, as changes to federal mortgage
experienced double-digit growth, as
through TREB’s MLS® System in 2017.
lending guidelines come into effect,” said
condos accounted for a growing share of
This total was down 18.3 per cent
Mr. Syrianos.
transactions,” said Jason Mercer, TREB’s
compared to the record set in 2016.
Director of Market Analysis.
sales
in
Q1
policy
The average selling price for
were
2017 as a whole was $822,681 – up 12.7
followed by a decline in Q2 and Q3 after
per cent compared to 2016. This annual
say about the year to come on January
the Ontario Fair Housing Plan (FHP) was
growth was driven more so by extremely
30 when we will release our third annual
announced. The pace of sales picked up
tight market conditions during the first
Market Year in Review and Outlook
in Q4, as the impact of the FHP started to
four months of the year. In the latter two-
Report. The report will feature an outlook
wane, and some buyers arguably brought
thirds of 2017, fewer sales combined with
for home sales and prices; new Ipsos
forward their home purchase in response
increased listings resulted in slower price
consumer survey results covering buying
to the new OSFI stress test guidelines
growth. In December, the MLS® Home
intentions, including insights on new
effective January 1, 2018.
“TREB will have much more to
Price Index (HPI) Composite Benchmark
federal mortgage lending guidelines;
“Much of the sales volatility in
was up by 7.2 per cent year over year, and
new research on housing supply options
2017 was brought about by government
the overall average selling price was up
surrounding the ‘missing middle,’ and
policy decisions. Research from TREB,
by 0.7 per cent year over year.
important new reports on the movement
the provincial government and Statistics
Canada showed that foreign home
home price growth in the second half of
buying was not a major driver of sales
2017 differed substantially depending
in the GTA. However, the Ontario Fair
on market segment.
Housing Plan, which included a foreign
market segment – the most expensive
buyer tax, had a marked psychological
on average – experienced the slowest
impact on the marketplace.
pace of growth as many buyers looked
Record
government
18
Looking
“It is interesting to note that
of people and goods throughout the GTA,” added Mr. Syrianos.
The detached Toronto Real Estate Board January 5th, 2018
19
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Tina Ma, Operations Manager support@craftwinesandgifts.com t: 416-277-0133 visit our website to register for the grand opening www.CraftWinesandGifts.com
New Mississauga Store Opening! Coming March 2018
THe Backpage TanTeam Client Notice Section Thursday, Januar y 25th, 2018 7:00PM - 9:00PM
Expecting The Unexpected In The 2018 Real Estate Market
-Free Information Session-
Visit www.tanteam.com or Email Us at: support@tanteam.com for more information!
Cooking With Tan - A Night To Remember Januar y 2018
Tentatively booked, more information to follow! Contact suppor t@tanteam.com
Got A Great Idea For A TanTeam Event? We'd Like To Hear From You! We Might Just Do It! support@tanteam.com 416-669-1748
now is the perfect time to go “ehs”
to find out more
Speak To The TanTeam To See If It’s Right For You
416-669-1748 • support@TanTeam.com
PENG HOCK TAN
#THE PREFERRED WAY TO DO REAL ESTATE
REAL ESTATE BROKER & ADVISOR DIRECT: 416-669-1748
This Magazine Is Brought To You By:
KAI MIN TAN
REAL ESTATE SALES REPRESENTATIVE DIRECT: 416-720-1738
Designer: Kai Min • Cover: Harbour Square Toronto • Source: Self-Taken • Advertising: Kai Min | support@tanteam.com
Royal LePage Meadowtowne Realty™ is a licensed franchise to Royal LePage and is Independently Owned and Operated. Whilst every care has been taken in preparing this magazine, Tan•gazine and all contained herein. Potential purchasers shall satisfy themselves as to all matters throughout Tan•gazine are those of the author and do not necessarily represent the form any part of any contract, offer or representation. Additionally, this magazine is
vendors, corporations, business’ and affilliates give no warranty for the information and seek independent advice, if necessary. The views expressed in the article(s) views of The TAN Team and its affiliates. The information contained herein does not not intended to solicit properties currently contracted and/or already listed for sale.