Tan•gazine November - December 2013 Vol 3 Issue 06

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November - December 2013 Volume 03 Issue 06

Tan Hock

Peng

Tan-Team Is Going To Youtube! Scan or go to www.tanteam.com/tan-minutes for more information! Also Check Out Page 24

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Coming Soon!

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CONTENTS November - December 2013 Volume 03 Issue 06 FEATURED CONTENT

Why 2013 Has Been A Good Year For GTA Housing

pg 4

pg 5-7

How Can Landlords Steer Clear Of Bad Tenants

pg 8-9

Housing Market Had A Major Correction, Nobody Noticed

FEATURED PROPERTY LISTINGS pg 12 Cul-De-Sac In Mississauga - Wonderful Detached, 3 bdrm on 120 Ft Lot on a cul-de-sac. Just Steps From Schools, Shopping & Transit, This Home feats: Renovated Kit., Full Bath. & Fin. Bsmnt. Perfect starter Detach Home in Mississauga...

pg 13 Square One Living (As Featured On www.TANteam.com) - Less than 5 years old (like new) very well maintained upgraded 2bdrm + 2wr Condo in Ultra Ovation Building! Clear view of Celebration Square!...

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Boomers Not Yet Rushing To Exits In Single Family Dwelling

pg 15-16

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Back To Back Market Watch Update

pg 24

TAN-Minutes with TAN - New Youtube Channel Coming Soon!

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Tan.gazine NEWS

Why 2013 Has Been A Good Year For GTA Housing

Last December, many pundits were predicting a big housing slowdown in the GTA as an oversupply of condos in particular, rising interest rates and slowing demand put a dent in sales and prices. My view was different. I expected the market to stay strong and prices to hold up — which is what has happened. By the end of September, 68,909 new and resale homes had changed hands in the GTA, 1,000 units less than the same period last year. But the first half of October was strong — about 20 per cent higher than a year ago. So, it seems that sales for the year will exceed 2012’s 82,200 units. Average prices are also almost 5 per cent higher than a year ago and there are still bidding wars in many areas, because there are more buyers than listings. Here’s why this is happening: 1. Low interest rates: Events such as the U.S. “fiscal cliff ” crisis, civil war in Syria and instability in the Middle East, have had little impact here. Canada remains an island of stability. Things will only improve as economies in the U.S. and European Union continue to improve. Interest rates may rise a little over the coming year, but the moves are unlikely to have a serious impact on the market. 2. Canada’s appeal to immigrants: We continue to be the envy of the world when it comes to quality of life and the fact that so many cultures and communities can live in harmony. That is why more than 150,000 people come to Ontario each year, with the majority to the GTA. They have to live somewhere. 3. Low rental vacancy rates: The Toronto condo market has slowed somewhat, but prices haven’t crashed. The reason is that the vacancy rate for rental

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November 01, 2013

condominium units in downtown Toronto is 1.7 per cent. As a result, the average rent for a two-bedroom condominium is about $2,500, which is also the amount an investor needs to carry an average twobedroom condominium, even if it costs $500,000. If you can carry your condo, you are in no rush to sell or lower your asking price. Things could get better with a few changes to rules and regulations: The tighter mortgage rules announced by Ottawa a year ago mean fewer people are qualifying for new homes. Those who do qualify are much less likely to default on their mortgages. This means the CMHC is making more money because it is paying out fewer claims. Why not pass on some of these savings to buyers with lower premiums? Some sellers who sell homes by themselves are refusing to pay any commission at all — even to the buyer’s real estate agent — believing they can make more money that way. The commission can exceed several thousand dollars on a typical sale. What these sellers don’t factor in is the fact that the buyers will then have to pay their agent themselves, meaning they’ll offer less money to buy the home. As the rules stand now, buyers cannot include commissions as part of the mortgage. But if the rules change to include commissions as part of the loan application, more buyers would be able to afford a home. People have been predicting the real estate market crash in the GTA for the past 13 years. It hasn’t happened yet and won’t happen next year either.

Tan.gazine NEWS

How Can Landlords Steer Clear Of Bad Tenants Any landlord who has been involved in the real estate rental business for more than a few years has likely come across a tenant disaster, or at least knows somebody who has. One of the most common comments we hear from prospective, current, and former landlords relates to the headaches caused by accidentally renting to a bad tenant. The relationship between landlord and tenant is known to be rocky, at the very least, and disastrous or expensive in a worst-case situation. Bad tenants have left landlords with garbage to clean up after suddenly leaving a property, pet damage and repairs in suites clearly marked as not allowing pets, damage to property after massive parties, junk removal requirements after night-time move-outs, and everything in between. Horror stories are everywhere, and news travels fast: selecting the right tenants is the most important step in the real estate rental business. Landlords who can master this skill will succeed in the business, while the opposite is also true, unfortunately. Bad tenants are the number one reason for landlords leaving the industry and selling their properties in search of greener pastures. Landlording is a risky business. Selecting a disreputable

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tenant who causes major damage to a unit can leave a landlord with a significant bill for clean-up and repairs, scare off other regularly paying tenants, and even label the landlord as inattentive or with the classic slumlord designation. Unfortunately, there is rarely any insurance that can protect landlords in this area, and a problematic tenancy resulting in a massive expense will almost never pass the strict criteria that an insurance policy will require prior to paying out on a repair claim. Tenancy laws throughout Canada differ greatly, but they all set out specific protections for both landlords and tenants. Most landlords assert that the laws favour tenants in almost every situation. Certain provinces, such as Alberta, offer slightly more protection to landlords than other provinces, where landlords can be forced to endure a problematic tenancy for months, or even years. How to screen your prospective tenant The best and most sure-fire way for landlords to avoid having to deal with this problem starts at the very beginning of the landlord-tenant relationship. Landlords who screen their tenants properly will greatly reduce the risk of future loss, maintain their reputation in the

greater community without blemish, and not be constantly stressed about their rental properties. Here are three tried and true methods of selecting the best and most qualified tenants and learning ways to avoid costly disasters. 1.) Rental documents As any real estate or courtroom lawyer will tell you, good documents are the starting point of any successful business relationship. Having a successful tenancy requires good, clear, concise definitions of everybody’s responsibilities and rights. Skipping this step means a tenancy relationship is beginning without a solid foundation, and during times of difficulty there may be nothing to refer to for clarification. Rental application form This document is probably the most important of any document in the entire rental process, which comes as a surprise to many new landlords. A good rental application will require information on: ‡ WKH DSSOLFDQW¡V MRE ‡ WKHLU VXSHUYLVRU ‡ WKHLU LQFRPH ‡ FXUUHQW DGGUHVV ‡ ODQGORUG UHIHUHQFH IULHQGV DQG referees ‡ JRYHUQPHQW LGHQWLILFDWLRQ

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Tan.gazine NEWS QH[W RI NLQ DQG H[WHQGHG IDPLO\ members DQ\ DGGLWLRQDO GHWDLOV EHOLHYHG WR be relevant to the approval process Move-in inspection report This is the second-most important document in the landlord-tenant

copies for each party. Landlords and tenants fill in various fields relating to names, address, and rental amounts.

Addendum to residential tenancy agreement This can be a small side document that forms part of “If You Are Planning On Leasing, the agreement and sets out additional Talk To TAN And Find rules for items such Out What It Takes as pets, smoking in To Be A Landlord” the unit, or penalties for late rental payments. These relationship. Unfortunately, it is documents are harder to enforce often overlooked. but establish good guidelines for Most provinces require a landlord the day-to-day operations of a and tenant to complete a move-in rental property. report upon onset of a tenancy. This quantifies and documents the 2.) What to look for when condition of a property so that, interviewing the tenants at the when the tenant leaves, any damage property caused is clear. A thorough and concise move-in report card is a The first interaction with a tenant sure-fire way of avoiding significant provides a great opportunity to gain disputes over tenant-related an impression of them. During the damage. Most provinces require a initial showing, the tenant may be landlord to produce this report more concerned with looking prior to deducting any funds from a around their new home than acting tenant’s security deposit. in a manner consistent with getting their application approved. Some Residential tenancy agreement careful observations by the landlord As the name suggests, this can be extremely useful when document will establish the terms considering the tenant’s application. of the working relationship between the tenant and landlord. In Here are a few things to look for: general, the more detail it provides the better, and sourcing a free Did the tenants arrive on time? online residential tenancy document Tenants who are respectful of their is not sufficient to cover a landlord’s landlord’s time are good tenants to interests. have. Common excuses for showing Most local rental up late are that the tenant got lost, associations will sell well-written or was not able to round up family and well-researched versions of members or kids. Are these residential tenancy agreement seemingly minor excuses documents with several carbon reasonable? Probably not. Tenants 6 | penghocktan.com

who do not arrive on time for a showing are not likely to pay their rent on time either. Avoid these tenants at all costs. Are the children well behaved? Tenants who want something – in this case, to move into your rental property – are likely to be on their best behaviour. They will speak politely, act respectfully, and maintain a professional manner. Kids, on the other hand, can be cautioned numerous times to behave but have shorter attention spans. Are the kids bouncing around the property in a rambunctious manner? Be sure their behaviour will become much worse when the landlord leaves the premises. If the tenant’s kids are behaving poorly during the showing, expect the property to be returned to you with obvious damage from rambunctious kids. Did tenant take off their shoes? If a landlord has to ask the tenant to remove their shoes, this is a good indication that they are not in the habit of doing so. While this may be a personal choice, and can be a cultural issue, tenants who remove their shoes are likely to cause less stress on the flooring of a rental property. Avoid tenants who plan to wear shoes inside their rental property. What does the back seat of the tenant’s car look like? This is a tried and true technique for learning whether the prospective renter will keep the rental property clean, or let clutter, dirt and debris build up. Avoid tenants with garbage in their car, as this will

Tan.gazine NEWS mirror the cleanliness of their home. 3.) Verifying information in a rental application The rental application contains the most comprehensive set of information about the prospective renters and should take the most time to review and confirm. Renters are extremely unlikely to include information in their application that they know will hinder their chance of having it approved. In addition to thorough follow-up of the details in the application, follow the smell test for your rental tenants. If a landlord happens to smell a skunk hiding in the rental application, then the balance of probabilities suggests there is in fact a skunk hiding there. In practice this means that if a tenant’s information seems too good to be true, it usually is. Ask the following questions: Does the tenant’s stated income seem unreasonably high? Look for ways to confirm this

income, such as a letter of employment from a reputable business. If the income is from self-employment, ask for a recent tax return to confirm it. Remember: the more intrusive the questioning, the less likelihood of a disaster or massive repair bill from a problematic tenancy. Is the employer reputable? A quick Google search to confirm the existence of the company or place of work provided by the tenant should be sufficient. If it does not exist or is extremely difficult to find online, then it is likely to have been made up. If the tenant claims to be self-employed, ask for a business card or marketing/promotional materials to prove the company’s existence. If it cannot be confirmed, decline the tenant’s application.

a less than positive past tenancy. If they refuse to provide comprehensive chronological information for the past two years, ask where they lived during the missing time. A backpacking trip overseas or living with parents are acceptable responses; disclosure of a problematic tenancy followed by court eviction is not an acceptable response. Ask the current referees if they can provide names and contact information for other referees Following these strategies will help you weed out undesirable applicants and greatly reduce, if not eliminate, the likelihood of a rental catastrophe.

Are there gaps in the tenant’s rental history? If a tenant’s application lacks previous landlord information for a period of time (typically six or 12 months), they may be trying to hide

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Tan.gazine NEWS

Housing Market Had A Major Correction Nobody Noticed: Royal LePage What if Canada had a housing market correction and no one noticed? That’s what real estate expert Phil Soper says has played out over the past year: the sharpest decline in home sales since the Great Recession. “Canada experienced a significant housing market correction over the last four quarters that most in the nation missed entirely," Soper, president and CEO of Royal LePage, said in the company’s third-quarter report. "Many regions experienced dramatic slowdowns in the number of homes trading hands, but news of double-digit unit sales declines went largely unnoticed, over-shadowed by a macabre fascination with the prospect of a U.S.-style home price collapse, which of course never transpired.” Until recently, Toronto and a number of other major markets experienced a sales slump, but little to no decline in prices. The number of homes for sale also dropped during that time as sellers also stepped aside, keeping pricing stable. “That’s not uncommon for corrections, if you look back over the decades it’s actually really rare to see house prices on a national basis decline,” Soper said. “What made this past correction particularly interesting and frustrating for people in the industry was there was so much focus on the prospect of a crash in Canadian home prices that all eyes seemed to be focused on that.” Home price appreciation did fall below the long-term average of five per cent, Soper said, but that doesn’t grab headlines the same way an outright decline would.

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The Canadian Real Estate Association (CREA) says some 325,180 homes have changed owners so far this year, about three per cent less than during the same period of 2012. CREA’s 2013 forecast pegs sales at 449,000, their lowest levels since 2010 and below the 10-year average. CIBC economist Benjamin Tal agrees that there has been a marked slowdown in activity, but he would call it “an adjustment” rather than a correction. “The main reason why people did not notice it is due to the fact that prices did not go down. As far as the market goes a correction is only when prices go down,” he said. “The main reason why prices did not go down is that alongside the softness in demand we have seen a notable softness in supply of units for sale, so with both demand and supply softening, prices did not go down.” The correction over the past year was fairly major, with most parts of the country experiencing double digit declines at some point, Soper said. But, he added, unlike other industries people tend to focus on prices rather than unit sales in the housing market. “When it comes to houses, because 70 per cent of Canadian families own one, the focus is on price and so it is very, very hard to get the conversation off price.” But that focus could have unintended consequences on the market because rising prices could mask a major correction, signaling the sector is stronger than it actually is and prompting unnecessary mortgage rule changes to calm the market, Soper said.

Tan.gazine NEWS “The correction over the past year was fairly major, with most parts of the country experiencing double digit declines at some point, Soper said. But, he added, unlike other industries people tend to focus on prices rather than unit sales in the housing market.”

During the third quarter, sales volumes surged and the average year-over-year price increased 3.7 per cent to $418,686 for standard two-storey homes, the Royal Lepage report notes. Buyers returned to the market after sitting on the sidelines for more than a year, partially due to the impact of tighter mortgage rules that left some delaying home purchases to save up larger down payments. In many cities the number of properties on the market fell short of demand, resulting in a steady rise in prices for the first time this year, the report said. Toronto, Vancouver, Calgary and Edmonton all posted double digit sales increases in August, signaling that the market is once again heating up. “Our over-heated real estate market of 2011 and early 2012 drove some to the sidelines. Home price

appreciation ground to a halt for a year – a necessary breather and predictable market response," Soper said in the report. The real estate firm expects momentum in the market to continue into the spring of 2014, driven by pent-up demand, increasing consumer confidence and low interest rates. Soper predicts a more robust Canadian economy and an “era of renewed prosperity” ahead, good news for the consumer-oriented real estate sector. But some economists from Canada and around the world are still predicting a harder landing for Canada, pointing to indications including high consumer debt loads, low wage growth and the record number of jobs dependent on the real estate sector as trouble signs for the economy.

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Tan.gazine NEWS

Selling Your Home Is A Very “Public” Process

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So you have listed with The TAN Team and you are just finished wrapping up some paperwork at the kitchen table. What’s next?

4. Jewelry is also pocketable. If it has monetary or sentimental value place it in a safety deposit box or at a relative's home.

Excitedly James asks, “Can you do a public open house to help market the property?” Tan proceeds to take a sip of James’ gourmet coffee. “You are asking the right guy!” - “By the way, this coffee tastes amazing!”

5. If you have a valuable piece of art store it.

When your property goes up on the MLS you are opening your home to the public for all to see in hopes of finding the perfect buyer. There will be MLS photos on the Internet accompanied by your address. Realtors will be bringing clients through for viewings. Your Realtor (Hopefuly Tan and or The TAN Team) may hold a public open house to attract buyers. It is important as much to The TAN Team as it may be to you to keep this in mind as you prepare your home for sale. Here are some tips to keep your possessions secure: 1. Put all medications out of sight. That box on the counter may be convenient for you but it also leaves them open to tampering. 2. Store alcohol out of sight. They say tastings have happened. 3. Video games, DVDs and CDs are pocketable. Box them up while on the market.

10 | penghocktan.com

6. Keep extra keys out of sight. They are also easy to pocket. 7. Is your child's name or photo up on their bedroom wall? Remember their room will be in the MLS photos showing their approximate age, sex and name. 8. Don't forget about ipads or ipods (and gizmo‘s). They should also be kept out of sight. 9. Appointments on your calendar can be read by all. 10. Anything special to you should be packed away. There is always the chance of accidental damage. 11. Store the gun cabinet. Locked or not, do you really want buyers seeing that you have guns in your home? (I know some of our client’s are game!) As much as we always prefer to protect your privacy, we don’t expect you to canonize the following points, “It’s because each of our client’s have different views and aesthetics, how they would prefer to move forward with the overall presentation is a choice granted as a homeowner.” Tan places the emptied coffee cup on the table. “Selling is a 'public' affair. Just how public is up to you.” And remember, you can’t take what you can’t see!

Tan.gazine NEWS

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Tan.gazine NEWS

Boomers Not Yet Rushing To Exits In Single-Family Dwelling Markets

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Baby boomers may be looking to trade their traditional single-family homes for the convenience and comfort of the condo craze, but a mass exodus is likely still a long ways off, real-estate experts and recent retirees say.

“That generation of baby boomers really likes to have the house, the garage, the garden; it keeps them active,” said Miranda McKenna, a realtor with Real Estate Homeward brokerage in Toronto. “For retired people, going into a condo is a nice idea because they don’t have to do anything, but it’s also restrictive. It’s the transition from a bigger house with a yard to a smaller space that gets them.” Indeed, the latest numbers from the National Household Survey, released Wednesday, suggest condominiums are becoming the domain of both young and old. Among owners, 20 per cent are under the age of 35, compared with 10.5 per cent for other dwellings, the Statistics Canada survey indicates. As predicted, they are proving popular with the retirement set. 26.1 per cent of Canadian owners are aged 65 or older, compared with 20.7 per cent for other dwellings. Jane Drover, a Calgary professor who is a year and a half away from retirement, said she expects to end up in a condo, but not for at least a few more years. “I travel so much that I would like a place where I don’t have to look after yard work or worry about a leaky roof or a pipe bursting,” she said. “That’s shared expense when you have a condo.” But many of her friends who plan to downsize are looking to move into smaller homes, not apartments, because condo fees can be so high they can feel like a mortgage, Drover added. Phil Soper, president and chief executive of real-estate firm Royal LePage, said many new retirees suddenly find themselves dealing with kids at home. “The adult children of boomers are living at home at about twice the rate as baby boomers 14 | penghocktan.com

themselves when they were that age,” Soper said. “They need the space to house not only themselves, but also these boomerang young adults who are living at home and working.” Baby boomers are the wealthiest generation of retirees to date, with almost 80 per cent owning their homes outright, Soper added. “They don’t need the money for retirement right now.” Financial tools like reverse mortgages, which allow people to stay in their house while still making withdrawals on the capital, also allow older homeowners to stay in their homes longer. Immigration is also keeping the condo market buoyant. Across Canada, the new home market, which includes condos and single homes, is being overbuilt by about 250,000 units or about a whole year worth of building, according to TD economist Diana Petramala. “Immigration is strong, (so) we do think that these units can over time be easily absorbed by increasing demand,” she said. “Maybe the pattern of immigration is changing … but they are spreading out to areas where there has been more overbuilding, like Calgary, Edmonton, maybe some of the Atlantic provinces, where resource sector is driving good employment outcomes.” Experts also believe markets across Canada have stabilized after any bumps in home sales following Ottawa’s tightening of lending rules. Wednesday’s survey numbers also made it clear that many Canadians are swimming in housing debt. About 3.3 million households, some 25 per cent, spent 30 per cent or more their total income on

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shelter --- mortgage or rent payments, plus utility bills, property taxes and condo fees --- exceeding the Canada Mortgage and Housing Corporation’s measure of affordability. And while the potentially toxic combination of high household debt and a possible interest rate hike could send the finances of Canadians spiralling out of control, economists believe it’s only a real threat if rates climb suddenly and sharply. “Our anticipation is that interest rates are only going

to be able to go up gradually,” said Petramala. Soper said he doesn’t believe any changes will happen until well into 2014, and when they do, the market will simply take a breath and adjust, especially if the underlying economic fundamentals stay strong. “If people remain confident in their ability to make monthly payments, they will just adjust,” he said. “They will adjust their expectations in terms of buying a less expensive home or potentially a different neighbourhood.”

Buying A Rental Property? How The Financing Game Has Changed Just four short years ago, you could buy an investment property with nothing down and get the best interest rates in the market. That was then. Today, rental financing is night-and-day different. To mortgage a small (a one-to-four unit, non-owner occupied) rental property now, you need to plop down one-fifth of the purchase price. And even then, you don’t always get the lowest rate. With a tipsy housing market and the credit crisis still fresh in memory, regulators and lenders are putting higher-risk borrowers under a microscope. That includes real estate investors. As a result, it’s now trickier to qualify for a rental property mortgage – especially compared to the days before April 19, 2010. (That’s when federal legislation put an end to insured rental mortgages with less than 20 per cent down.) So if you are considering a small rental property and need a mortgage soon, here are some things to remember.

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You’ll need an ample down payment If you buy a rental home that you won’t live in, almost every lender in Canada will want at least 20 per cent down. That’s $72,000 on the average $360,000 residential property. And if you’re purchasing a condo or buying in a “higher-risk” city (like Vancouver), many lenders will want an additional 5 per cent. Picking the right lender matters more than ever If you want to be approved, your “total debt ratio” must fall within lender limits. At the risk of oversimplifying, your “total debt ratio” is generally your total monthly expenses divided by total monthly income from all sources, including rentals. That sounds simple, but it’s not. A borrower’s ability to qualify often depends on how much of her rental income the lender recognizes. You’d think that if a tenant pays you $1,000 a month, you could add that $1,000 to your income

when qualifying for a mortgage. But in many cases, lenders will credit you with only 50 per cent of the rental income you receive, making it harder for you to qualify. In all, there are four ways that lenders calculate your debt ratios, which are beyond the scope of this column. Suffice it to say, any competent mortgage adviser can point out lenders with borrowerfriendly methods. And there’s one last thing to keep in mind about debt ratios. Different lenders have different limits. Some lenders let you have a 42 per cent total debt ratio. Most others permit just 40 per cent. That extra 2 per cent can make a big difference , especially for folks with mortgages on multiple properties. The moral here is that the lender you pick can have a major impact on your approval chances. If your qualifications aren’t perfect, you’ll need a lender that is open to some common sense underwriting exceptions, and those are getting harder to find. penghocktan.com | 15

Tan.gazine NEWS Multiple rental properties = headaches Many lenders prohibit you from owning and/or financing an unlimited number of rental properties. Even if they don’t explicitly forbid it, the inability to count all your rental income in debt ratio calculations can make approvals challenging, and sometimes impossible. In fact, it often forces people with big rental portfolios to renew mortgages with their existing lender at unfavourable rates and terms. So if you plan to finance a small rental empire, find a broker that has several clients with 10 or more rental properties. They’ll need that experience to help you know which lenders to use, and in what order. The key to remember is that lenders with the best rates often have the tightest rules. If you want the best terms, you’ll want to use the more restrictive lenders early in your empire building and save the flexible ones for last. That ensures you don’t run out of competitive lenders when your portfolio gets big. More paperwork A few years ago, it was easier to use an appraiser’s estimate of a property’s rental income in lieu of a signed lease. Today, more and more lenders want to see a signed written lease or other proof of rental income. It also helps to have two years’ tax returns available. That’s because using tax returns to show your net gain or loss on a property

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can make it easier to qualify, as opposed to using other standard debt service calculations. The rate is often secondary Rental mortgages are higher risk so many lenders now charge rate premiums. Fortunately, you can still find lenders that extend their best rates on investment financing. The question is, do they offer the other features you need? In keeping with supply and demand, the most flexible mortgages usually cost more. That’s especially true for investment property financing. Be prepared to pay a little extra if you need a lender that satisfies more than a few of these criteria: KDV KLJKO\ IOH[LEOH UHQWDO LQFRPH rules DOORZV \RX WR FDUU\ D JUHDWHU GHEW ratio OHWV \RX SXW D SURSHUW\ LQ D company name for liability protection OHWV \RX ILQDQFH PRUH WKDQ IRXU or five properties GRHVQ·W LPSRVH D PLQLPXP QHW worth requirement DOORZV ² WR \HDU DPRUWL]Dtions to maximize your cash flow OHWV \RX SURYH UHQWDO LQFRPH ZLWK “market rent” appraisals DOORZV D JLIWHG RU ERUURZHG down payment DOORZV \RX WR DGG D VHFRQG mortgage ZLOO OHQG RQ ODUJH PRUWJDJHV (e.g., $750,000+) KDV D ORZ PLQLPXP FUHGLW VFRUH (e.g. 600 versus 650) DOORZV UHQWDO LQFRPH IURP VXLWHV that don’t conform with current

municipal bylaws SURYLGHV FDVK EDFN VRPHWLPHV handy for improvements and closing costs) DOORZV \RX WR DGG D YHQGRU take-back mortgage (this is where part of your purchase is financed by the property seller) RIIHUV D OLQH RI FUHGLW ZLWK \RXU rental mortgage SD\V IRU \RXU VZLWFKLQJ IHHV WKLV is far less common with rental mortgages than it is for regular mortgages) Choose your broker carefully If you want the best rental rate and most flexibility, an experienced no-fee broker is the way to go. Rental financing is truly a specialization and probably only one in 10 mortgage professionals are actually proficient at it. Rick Robertson, founder of the lender comparison firm Mortgage Mentor, says one way to screen brokers is to ask how many properties they’ve financed in the last year. If the number is less than 10 or 15, find a more experienced broker. And Mr. Robertson adds, “Deal with a broker that uses a lot of lenders. Each lender has its own niche and no two lenders in Canada have the same rental policy.”

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Tan.gazine NEWS Greater Toronto REALTORS® Report October 2013 Mid-Month Resale Market Figures October 16, 2013 -- Greater Toronto Area REALTORS® reported 3,460 sales through the TorontoMLS system during the first 14 days of October 2013. This result was up by 21 per cent in comparison to 2,849 sales reported during the same period in 2012. October mid-month sales were also up by 13 per cent compared to the 10-year average. “With October mid-month sales well-above the 10-year average, it seems clear that we have more than recovered from the temporary dip in residential transactions that resulted from the onset of stricter mortgage lending guidelines,” said Toronto Real Estate Board President Dianne Usher. “It is also important to note that the supply of ground-oriented listings remains constrained, due in part to the additional land transfer tax and stricter lending guidelines. If this were not the case, the number of sales could have been greater because more households would have been able find a home to purchase,” continued Ms. Usher. The average selling price for October mid-month transactions was $536,301 – up 7.3 per cent compared to the first 14 days of October 2012. “Price growth has been stronger in the second half of 2013, as sales growth has outstripped growth in listings. There have been more buyers competing for available properties compared to the first half of the year, which has led to increased upward pressure on average selling prices,” said Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis.

Tan.gazine NEWS TorontoMLS Home Sales Up Annually in October In October, the median price was $539,058 from the $502,127 recorded during October of 2012 Toronto, November 06, 2013

Greater Toronto Area REALTORS® reported 8,000 home sales through the TorontoMLS system in October 2013 – up from 6,713 transactions reported in October 2012. Over the same period, new listings on the TorontoMLS system were down. “The GTA home ownership market has been broadly characterized by a rebound in sales since the summer. Market conditions have been tighter in some market segments more so than others. Ground-oriented homes listed for below one million dollars in some areas of the GTA have been especially popular with buyers, while listings for these home types have been constrained,” said Toronto Real Estate Board President Dianne Usher. “The supply of listings for many home types and price points has either been down year-over-year or at least not up by the same annual rate as sales. The additional Land Transfer Tax in the City of Toronto and the removal of the government guarantee on high ratio mortgages for home

purchases over one million dollars have arguably led many homeowners not to list,” continued Ms. Usher. The average selling price for TorontoMLS sales in October 2013 was $539,058– up by more than seven per cent in comparison to the average price of $502,127 in October 2012. The MLS® Home Price Index (MLS® HPI) Composite Benchmark was up by 4.5 per cent year-over-year. “Growth in the average selling price and the MLS® HPI Composite Benchmark will continue through 2014. Inventory levels for ground-oriented home types will be low from a historic perspective and home ownership demand will stay strong as affordability remains in check due to the continuation of accommodative borrowing costs,” said Jason Mercer, the Toronto Real Estate Board’s Senior Manager of Market Analysis.

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Tan.gazine NEWS Greater Toronto REALTORS速 Report November 2013 Mid-Month Resale Market Figures November 18, 2013 -- Greater Toronto Area REALTORS速 reported 3,131 residential transactions through the TorontoMLS system during the first two weeks of November 2013. This result represented a 21 per cent year-over-year increase compared to 2,582 sales reported during the same timeframe in 2012. Over the same period, new listings were down by more than four per cent. "The results for mid-November indicate that GTA households remain comfortable with the costs of home ownership," said Toronto Real Estate Board President Dianne Usher. "If not for the persistent shortage of listings for most home types, we would likely be experiencing an even higher level of sales as more buyers would be able to make a deal on a home meeting their needs." The average selling price for November 2013 mid-month transactions was $538,708, representing an 11 per cent increase compared to $485,988 in 2012. "More buyers competing for a smaller number of listings has translated into an accelerating pace of price growth. This theme has been most prevalent in the low-rise market segment, including single-detached and semi-detached houses and townhomes. However, it is important to note that the condominium apartment market has also become tighter," said Jason Mercer, TREB's Senior Manager of Market Analysis.

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Tan.gazine NEWS Price Growth Continues in February In February, the median price was $510,580 from the $500,249 recorded during February of 2012 Toronto, March 05, 2012

Greater Toronto Area (GTA) REALTORS® Toronto’s additional upfront land transfer tax reported 5,759 sales through the TorontoMLS arguably played a role in the slower pace of luxury system in February 2013 – a decline of 15 per cent detached home sales,” added Ms. Hannah. in comparison to February 2012. It should be noted The MLS® HPI Composite Benchmark that 2012 was a leap year with one extra day in price covering all major home types eliminates February. A 28 day year-over-year sales comparison fluctuations in price growth due to changes in sales resulted in a lesser decline of 10.5 per cent. mix. The Composite Benchmark price was up by The average selling price for February 2013 more than three per cent on a year-over-year basis in was $510,580 – up two per cent in comparison February. to February 2012. “We will undoubtedly experience some “The share of sales and dollar volume volatility in price growth for some market segments accounted for by luxury detached homes in the City in 2013. However, months of inventory in the of Toronto was lower this February compared to low-rise market segment will remain low, resulting in last. This contributed to a more modest pace of average price growth above three per cent for the overall average price growth for the GTA as a TREB market area this year. whole,” said Toronto December Real Estate Board (TREB) current average price forecast is 2013 MonthlyOur Resale Market Figures President Ann Hannah. $515,000 for all home types combined in 2013,” said “Stricter mortgage lending guidelines that Jason Mercer, TREB’s Senior Manager of Market precluded government backed mortgages on homes Analysis. sold for over one million dollars and the City of

Greater Toronto REALTORS® Report

TBA NEXT MONTH! Kindly Check Back On December 08, 2013

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November 18, 2013

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