Jackie's Real Estate Corner

Google privacy rules changed today. Here’s what to do if you missed the deadline to protect yourself

2012-03-01T10:01:00.001-05:00

Google’s motto is “Don’t be evil.”

But that’s no reason to hand over personal data, no questions asked.

Even though the tech behemoth’s new unified privacy policy takes effect Thursday, there are still ways to protect your data from being captured by Google.

The new policy means all the information Google collects about you on its platforms — including YouTube — will be put into one database so advertisers can get a better idea of consumer patterns and behaviour.

Google’s new privacy policy takes despite global concerns

Before the changed policy, your search history and the sites you visited were kept apart from other details Google gathered about you.

Now, all the data is consolidated on a server so Google can treat you as a single user across Google+ and YouTube, Gmail and Google search. Only, as Electronic Frontier Foundation points out, just looking at search terms can reveal information about your age, sex, sexual orientation, health, location, religion and all kinds of other really personal stuff about you.

Alma Whitten, Google’s director of privacy for products and engineering, says the move is about helping consumers. Rather than 60 different privacy policies across Google products, there will be one. The information sharing also means more tailored searches and recommendations.

“We’re not collecting any new information as a result of this change. We’re not altering any of your privacy settings. And we still won’t sell your personal information to advertisers. We just want to use the information you already trust us with to make your experience better,” wrote Whitten in the Sacramento Bee.

Still, the only way to escape entirely is to stop using Google and family.

But while the deadline for purging your search history is over, there are some things you can do to keep your personal data safe online short of deleting your Google account and flushing your Android phone.

EFF has these tips:

Don’t put personal information (name, credit card number, address, social insurance number) in your search engine.

Don’t log in to your search engine — sign out of Gmail or Google+ before searching. There are also alternative search engines available — like http://duckduckgo.com/Duck Duck Go,END which has a no-tracking policy.

Block “cookies” from your search engine through your browser privacy settings.

Vary or hide your IP address. (This is more complicated and can be done using special software.)

It’s also a good idea to look at privacy settings on https://www.google.com/dashboard/Google DashboardEND — a list of your data, chats and documents stored in your Google services. Then, by using Google’s https://www.google.com/settings/u/0/ads/preferences/Ad PreferencesEND, you can opt out of personalized ads based on search results.

You can also “liberate your data” using https://www.google.com/takeout/Google TakeoutEND. This service allows you to download the information Google has on you, then delete whatever you want manually.

There is the off chance that the privacy policy will not remain the way it is now. The French data protection watchdog CNIL is leading a Europe-wide investigation into how the policy violates European Union legislation. In a letter to Google, CNIL said it and the EU “have strong doubts about the lawfulness and fairness of such processing, and its compliance with European data protection legislation.”

The Toronto Star
Alyshah Hasham
Staff Reporter

Avoid top five home buying errors, Ontario Realtors advise

2012-02-27T09:51:00.000-05:00

As housing market increases homebuyers need to be informed about costly oversights

According to a recent RBC report, the number of homes for sale in Ontario is on the rise and affordability province-wide is stable. The rush to buy with more available homes on the market could mean more mistakes made by consumers.

A panel of experts from the Ontario Real Estate Association (OREA) board of directors advises against making hasty or uninformed choices by avoiding five common errors:

1. Not knowing what you can afford

Barbara Sukkau, president of OREA and a Realtor based in St. Catharines, says that mistakes made in a competitive environment can be costly and restrict lifestyle choices.

"Many people don't know that there's an easy way to calculate how much house they can afford to determine, regardless of competing bids, what lifestyle they want to maintain within the market," says Sukkau. "In addition to the cost of the home, potential buyers should consider the land transfer tax, closing costs, moving costs and leave room for any unforeseen extras."

In fact, Realtors often use a calculation called the Gross Debt Service Ratio. Sukkau explains how to calculate what you can afford at http://bit.ly/OREAaffordabilty.

2. Not preparing your finances, or getting pre-approved

"Many sellers will require a potential buyer to get pre-approved. When there are competing bids on the house of your dreams, pre-approval could give you the edge," says Patricia Verge, OREA board member working out of Ottawa.

"Pre-approval can take up to a few days after you provide your bank with things like verification of income and down payment," Verge adds.

If a buyer meets the lender's requirements, then written confirmation of pre-approval will be provided. According to the Canada Mortgage and Housing Corporation, this pre-approval is time sensitive and is not a guarantee of receiving a mortgage loan.

Verge also cautions buyers against using their pre-approval as a final budget. "Potential buyers should balance their debt load and other financial commitments with what the bank is willing to lend," she says.

3. Not knowing your must-haves

Tom Lebour, OREA board member working out of Mississauga, notes that his clients aren't always sure about what they're looking for.

"Clients often fail to consider what amenities are in the neighbourhood they're looking to buy in, especially when relocating from the city to the suburbs. How 'walkable' is a neighbourhood to places like grocery stores, schools and banks? This feature is important to many homebuyers, but they can fail to think about it in the excitement about the number of bathrooms a house has. Create a list by thinking about a day in your life and the various things important to you and your family."

4. Not getting a home inspection

"I always advise buyers to have their own home inspection done, even if the seller offers the results of a previous inspection and even if others are keen to put in an offer," says Phil Dorner, OREA board member working out of Belle River.

"Ensure that you have a qualified and bonded home inspector perform a full inspection as part of your offer. An investment of a few hundred dollars could save you thousands down the road."

5. Getting emotions involved in negotiations

Buyers and sellers will often let their emotions get the best of them, says Mike Douglas, OREA board member from Barrie.

"Emotions can get in the way of negotiations because sellers inadvertently assign real value to their memories, which don't hold financial value for the buyer. We do our best to help our clients keep their emotions out of the equation," Douglas says.

For more tips, visit orea.com and order your free books on home buying and selling. Or, check out Barb Sukkau's video on what a Realtor can do for you.

About the Ontario Real Estate Association
The Ontario Real Estate Association represents 50,000 brokers and salespeople who are members of the 42 real estate boards throughout the province. OREA serves its REALTOR® members through a wide variety of professional publications, educational programs, advocacy, and other services.

The real estate panel members provided input on common home buying and selling mistakes over email from November 8 to November 22. The panel consisted of nine OREA board spokespeople including representation from St. Catharines, Timmins, King City, Barrie, Oakville, Belle River, Mississauga, London and Ottawa.

Sounds pretty amazing

2012-02-23T09:17:00.001-05:00

Builder still on track for Distillery District condo/hotel development. The developer behind a proposed 34-storey hotel/condominium project in the Distillery District still wants to proceed with the plan, despite the city’s concerns about its height and fit for the historic area.

“We haven’t been told it’s a no-go,’’ said David Jackson, one of four partners with Cityscape Development, co-owner of the Distillery with Dundee Realty. Jackson said that, though his team believes the design is appropriate, they’re open to exploring options.

The project, estimated to cost up to $130 million, would be the first hotel in the popular tourist area. A total of 88 hotel suites and 246 condo units are planned, and the developers hope to have the project completed by 2017.

A unique feature is that the condo tower would be stacked on top of a six-storey rack house at Mill and Trinity Sts., a heritage building dating to 1875. The rack house would be turned into a “boutique hotel.’’

But the city has asked the builders to make significant revisions to the scale of the project.

A preliminary city report notes the proposed height and density are a “significant departure’’ from what was outlined in the original Gooderham & Worts heritage master plan, and a secondary plan for the King and Parliament Sts. area, neither of which contemplated additions to the rack house at Mill and Trinity Sts.

The rack house, currently vacant, contains six floors of traditional racks used to house large barrels for aging whisky. Doing a hotel conversion would take a long time because the racks, which would have to be removed currently support the building, Jackson said.

Recently the city’s design review panel, which provides advice to Toronto’s chief planner, met to review the application and voted 5-3 to send it back for a redesign. The architect is Saucier & Perrotte Architects in Montreal.

Although the quality of design is not in question, the panel majority felt the “massing’’ — its overall size — was not appropriate in that location, given its potential impact on Trinity St. and the area’s heritage continuity. There were also concerns about the shadow cast by such a tall building.

Gregg Lintern, director of community planning for Toronto and East York district, said the proposal is back in the hands of the developers.

Jackson, of Cityscape, said his team isn’t “fixated” on 34 storeys and will soon turn attention to the height concerns.

There are other tall condo towers in the area, including a completed 32-storey building, and two others — 40 storeys and 37 storeys — that are under construction.

A final report on the application is set for sometime this summer.

The Toronto Star
February 22, 2012 18:02:00
Donovan Vincent
Staff Reporter

Looks like Toronto is still the place to be in Canada! - Toronto office rents soar 17.5 per cent and companies are willing to pay the price

2012-02-21T09:42:00.001-05:00

Companies appear willing to pay the price to open or expand offices in Toronto’s booming downtown, despite rents that jumped 17.5 per cent last year.

Unexpectedly strong demand for space in the core helped push office vacancy rates down to just 4.7 per cent in 2011. That’s placed Toronto No. 4 among the world’s Top 10 cities seeing significant increases in office rental rates, according commercial brokerage Cushman & Wakefield.

“Toronto has come through an extremely robust period of demand and it has tightened the market to the point where it’s challenging to find the quality locations for companies that are in the market right now,” says Stuart Barron, national director of research for Cushman.

The hefty rent increases not only point to Toronto’s international appeal as a safe place to do business, but a shift in thinking among companies that previously would have been inclined to set up shop in the suburbs, says Barron.

“Companies are more and more of the mindset that the higher cost of downtown real estate is actually an investment in their workforce,” says Barron.

Being downtown means being within walking or transit distance of a whole new pool of young talent that’s quite at home in the glass-and-granite condos that have sprung up by the tens of thousands downtown over the last decade.

“These are the young men and women who will lead businesses in the generations to come,” says Barron. “They want to be part of a thriving business environment, but they like the energy of the downtown and they aren’t interested in commuting to jobs in the suburbs.

“They want to work and play downtown.”

Only the Brazilian cities of Sao Paulo and Brasilia, as well as San Francisco, outpaced the commercial rent increases seen in Toronto. There rental rates were up 24.4, 21.3 and 19.6 per cent respectively, according to Cushman’s annual Office Space Across the World 2012 report.

Vancouver remained Canada’s most expensive office market in 2011 with rents averaging $33.87 per square foot per year compared to the $23.30 in Toronto. That was up just “modestly” from 2010, the report noted.

Montreal saw the second-highest growth in office rental rates, lagging far behind Toronto at 6.1 per cent, said Cushman.

While rent increases in Toronto’s downtown are expected to ease off this year, demand has outpaced all expectations since the 2008 recession, says Barron.

Some 4.7 million square feet of new office space, much of it on the Railway Lands development south of the financial core, was in the works or coming on stream when the downturn hit.

Commercial brokers were bracing for vacancy rates to skyrocket to 14 per cent or more. (A 9 per cent vacancy rate is considered a balanced market, which keeps rents stable.)

Instead, demand remained relatively strong through the recession as Coca-Cola, Google, SNC-Lavalin and a host of professional companies moved some or all of their workers downtown, says Barron.

That’s dramatically different than back in 2000 after the tech bubble burst and some 3.8 million square feet of office space flooded back onto the Toronto market as companies retrenched or collapsed.

Vacancy rates climbed to almost 12 per cent and rents dropped.

The Toronto Star
Susan Pigg
Business Reporter

Automated valet eases condo parking problems

2012-02-16T10:34:00.000-05:00

Wow...you swipe your card at your condo and your car goes down the shaft to be parked and when you want to go out, you swipe your card again and your car reappears.

The highlight of Mary Porohowski’s day is parking her car.

She loves driving her Mercedes into one of three glass-enclosed bays at the Vancouver condo project where she works and watching the signs flash “good morning” and “drive forward.”

After Porohowski climbs out and swipes a coded card, her car is transported into the bowels of the 36-storey, ultra-luxe Jameson House Vancouver.

“I was skeptical when I first saw these elevators,” says the local realtor. “But it sure beats going home to my own condo garage or driving around and around down to P6.”

Jameson House is the first condo project in Canada — and only the second in North America — to boast a Jetsons-like fully automated parking system that could soon be coming to a highrise condo near you.

A number of Toronto developers are now looking at the costly, high-tech systems as a way to offset an increasingly difficult downtown problem — digging deep enough to create parking on tight sites that are skyrocketing in price and shrinking in size.

“They are phenomenal systems,” says Bruno Giancola, vice president of construction management for Tridel Corp. which is considering automated parking for its 75-storey Ten York project, touted to be the tallest residential building in Canada.

“But you just hope your car comes back when you swipe that card — and if it’s a black Porsche instead, all the better,” quips Giancola.

The systems, widely in use throughout Europe and Asia, are ideally suited to tackle Toronto’s condo parking problems, says Jason Nanner, vice president for Canada of German-based KLAUS Multiparking which hopes to have a system in place here in the next two years.

The stacking systems reduce the need for ramps and driveways, can fit almost twice as many cars in a conventional space and are green: The car is shut off the minute you drive into the loading bay, which means you’re not using gas, and spewing emissions, driving around and around to your designated spot.

It’s like parking in a “vault,” adds Nanner, whose system is much like the Swiss-designed system in place in Vancouver. Only staff have access to the garage and cars.

It now costs anywhere from $35,000 to more than $50,000 to build each condo parking spot in downtown Toronto, and that cost climbs higher the deeper a developer is forced to dig.

That’s becoming a considerable distance down given the economics of the current condo craze: Projects are getting taller, decent-sized lots are getting hard to find and the City of Toronto requires roughly one car spot for every two condos.

“I’m a lot happier going down in the elevator and picking up my own car, or having the valet do it. It’s basically a last resort, but I do think you will see them,” says Barry Fenton, president of Lanterra Developments who has toured four of the parking systems in Italy but fears long lineups for the lifts or complete breakdowns.

Wait times average two to seven minutes at Jameson House (which has just 135 residents) and tenants were given cab slips on the couple of occasions the system shut down.

KLAUS has some semi-automated systems in place in Toronto that take a bit of a Rubik’s cube approach to parking — a car lift moves up and down and over a spot or two to make room for the next empty lift.

The fully-automated systems are more Bond-like. The car appears to drop into a black hole.

But if you’re looking for the height of luxury, look no further than Florida where a proposed $560-million highrise condo project is promising to give new meaning to the notion of park and fly.

You can ride in your car — or cars, depending on whether you bought the $2 million or $9 million unit — up a glass-enclosed elevator to your parking spot in the sky.

Then you can marvel at the lights of Miami, and the gleam of your Mercedes, right from your living-room couch.

The Toronto Star
Susan Pigg
Business Reporter

Why a Home Inspection is so important...

2012-02-14T09:03:00.000-05:00

It was meant to be a straightforward renovation job.

Instead, Toronto resident Rocco Oppedisano’s quest to refurbish his basement last spring has sparked a months-long bureaucratic nightmare, with city building inspectors and his insurance company at odds over whether the city should be obliged to issue work orders to validate insurance claims.

The trouble began when a contractor tore down Oppedisano’s basement drywall and found mould, cracked walls and crumbling foundation footings — allegedly the result of a spate of slapdash renovations done sans building permit by previous homeowners in 2004.

Oppedisano said he and his pregnant wife worry their Junction home is “in danger of collapse.” Their insurance company, the Lawyers’ Professional Indemnity Company (LAWPRO), is waiting on a city work order before it clears the claim for what Oppedisano said could be $100,000 in repairs.

The city refuses to issue the order.

“I’m extremely frustrated. I can’t move forward because I don’t know if the house is going to fall apart,” the 37-year-old IT project executive said, recounting his surprise when he saw the mould and holes in the wall, soil spilling out from gaps in the foundation.

The couple filed a title insurance claim — an insurance policy that covers property ownership and provides the owner with protection against certain losses or damages — with LAWPRO in April. They heard in June their claim was invalid without a work order, an official order (often issued by a municipality) requiring that repairs or other work be completed.

It’s a standard policy procedure for an insurance company to require a court order or a municipal work order before coverage is provided, said LAWPRO spokeswoman Dagmar Kanzlar. “They have to issue a work order. That’s just the way title insurance works.”Oppedisano hired two engineering firms to assess the house for unsafe conditions. Both reports confirmed structural damage. One noted loose footing bricks in the basement that were falling onto the floor and the “potentially unsafe condition” in the house.

But City of Toronto officials have pointed to the lack of proof of “an imminent, impending unsafe condition” at the house and have refused to issue the work order.

Mark Sraga, Toronto’s deputy chief building official, pointed to the department’s limited resources and said the city should not be required by insurance firms to supply work orders. “We’re not there to facilitate insurance claims. We’re there to do what we’re required to do and to protect the public.”

Sraga added that insurance companies shouldn’t be “shifting the burden” to city inspectors to verify claims. “That is not fair for insurance companies to do that.”

But for Kanzlar, “the issue here is the city. From an insurance perspective, this is a really straight factual argument. The City of Toronto is unusual in that it will not issue work orders. . . . Unless you have to totally condemn the house, they won’t do it.”

Meanwhile, Oppedisano said city inspectors have stopped returning his phone calls. They have yet to visit his basement.

The Toronto Star
Niamh Scallan
Staff Reporter

TCHC launches aggressive push to sell off 675 houses

2012-02-13T09:35:00.001-05:00

The Toronto Star: Toronto Community Housing has launched a strong push to convince city councillors to okay the sale of 675 single-family homes.

A report on the matter goes before a special executive committee meeting next Friday.

TCHC issued a statement this week saying its bill for backlogged repair work now stands at $750 million, up $100 million from last year. The housing corporation says it needs proceeds from the house sales — an estimated minimum of $222 million — to address the backlog.

Without new money for the fixes, the shortfall is expected to continue to rise by $100 million a year, reaching $1 billion by 2015.

“By doing nothing, we’re going to be beaten here,’’ Len Koroneos, TCHC’s interim CEO, said in an interview this week.

TCHC has nearly 60,000 units in buildings and houses across the city. Buildings are an average of 40 years old, and many are crumbling.

The latest figure reflects new repair needs outpacing the housing corporation’s ability to pour money into improvements, TCHC says. The corporation invested $72 million in fixes to multi-unit buildings last year, but says that amount was surpassed by $173 million in new repair needs that emerged from its aging buildings.

The 675 single-family homes — some vacant and in poor condition, others livable — are valued at between $250,000 and $1 million. TCHC has already sold nearly 30 homes, 20 of them to an aboriginal housing organization, but the proposal to sell all 675 has raised consternation.

Ontario’s housing minister has expressed strong concerns, saying essentially that she’s uncomfortable with uprooting families from mixed-income neighbourhoods and moving them into subsidized highrises.

Residents in many of the 675 houses have also been up in arms.

TCHC, on the other hand, argues that with only 2,600 people living in the single-family homes compared with about 164,000 in the mostly multi-unit buildings that make up the rest of its portfolio, selling the houses would benefit more people.

The sale was supposed to be discussed by the city’s executive committee last month, but the discussion was delayed until some questions could be answered — for example, how tenants would be relocated and how the proceeds would be spent on a ward-by-ward level.

For example, according to a breakdown released Friday, Councillor Anthony Perruzza’s area (Ward 8, York West) stands to see about $14 million in funding for repair work. The upgrades would benefit 10 neighbourhoods in the ward, addressing issues such as crumbling roofs and ceilings, deteriorating beams, furnaces that need repair or replacement, as well as hot water boilers, elevators and plumbing.

Koroneos, the interim CEO, says the sale would be done in the course of a three-to six-year plan, with no more than 60 to 75 houses put on the market each year.

Noting that the $222 million doesn’t cover the entire repair backlog, Koroneos says TCHC would still have to borrow substantially on top of that amount just to keep the agency’s portfolio in a “fair state of repair.’’

But Councillor Adam Vaughan, a critic of Mayor Rob Ford’s housing initiatives, calls talk about a $750 million repair backlog a “manufactured crisis.’’ He argues that there are numerous ways to fix public housing.

“There’s revitalization, refinancing, low-income home ownership, partnering with co-ops — at least a half-dozen different financing options available to us — that render this entire discussion (about massive repair backlogs) unnecessary.”

Census: Condo boom driving up Toronto’s density

2012-02-09T09:18:00.002-05:00

Tara Gratto and her chef husband Souheil were drawn to the culturally diverse downtown. Recent grad Laura Kalbfleisch needed to find a place in a hurry — the swimming pool was a draw. And Bryan Martin, a personal trainer with season’s tickets to the Jays, wanted to be smack in the middle of the action.

The residents of CityPlace — a large, densely populated section of former railway land now climbing to the sky with multi-tower condo development — are a new face of the city.

They’re young urban professionals who want to live and work downtown, even if it means moving into busy buildings that some say feel more like university dorms.

Wednesday’s first results of the 2011 census show that a small downtown pocket — from Lake Ontario, north to Front St., west to Bathurst St. and east to Spadina Ave. — has seen explosive growth.

The census echoes what everyone’s been saying: That Toronto has gone vertical.

In 2006, the population in the area that includes Harbourfront and the old railway lands stood at 1,106 people. As of last year that had skyrocketed to 5,911 — a 434 per cent increase.

That’s more than triple the average population density of about 4,150 people per square kilometre for the rest of the city.

Once home to a spiderweb of tracks and derelict buildings, it’s evolved into a vibrant sporting and residential community. Nine new buildings have gone up since the 2006 census, says Ben Myers, executive vice-president of the condo market research firm Urbanation.

Many residents — such as Gratto, 34, her husband Souheil Badran, 33, and their two young children — rent from investment buyers.

“I’ve always liked downtown,” said Gratto, who has lived in a coveted three-bedroom apartment on Telegram Mews since 2010. “It’s much more culturally diverse down here. So being in a multicultural marriage, we wanted an area where that was the norm.”

Badran, who grew up in a condo in Lebanon, is a chef-in-training at the Royal York hotel, about a 15 minute walk away.

Personal trainer Bryan Martin, 27, bought his loft-style townhouse two years ago. Besides the gym, pool and sauna, he loves not having to shovel snow. Laura Kalbfleisch, 28, a psychology grad now working as a freelance editor, shares a one-bedroom with her lawyer boyfriend. Being near the lake has been a bonus for walks with their dog, Balu.

Experts say fundamental shifts in population and lifestyle — couples putting off marriage and children, workers rebelling against long commutes — have paired with a backlash against urban sprawl to spur one of the most sustained real-estate booms in history.

Condos present a more affordable option for first-time buyers such as young adults and new immigrants — two groups naturally drawn to the buzz of big cities, said Adrienne Warren, senior economist and manager with Scotiabank.

Empty-nesters looking to downsize are also driving the condo craze.

Meanwhile, demand for land is pushing developers to build vertically, encouraged by government policies designed to curb sprawl. Multi-unit dwellings now make up roughly half of all new housing stock.

Toronto’s population rose 4.5 per cent from 2006. Spikes in several neighbourhoods probably had to due with vertical growth, experts say.

Condo-heavy Liberty Village experienced 143 per cent growth; the Bay Street corridor saw a 57 per cent boost.

Pauline Lierman, a senior research analyst with Urbanation said that with downtown becoming more built-up, future growth will probably take place farther north. For example, the population has doubled in the corridor between Sheppard and Finch Aves. Since 2006.

In Etobicoke, the area near Sherway Gardens mall has seen a 46 per cent increase, from 4,641 people in 2006 to 6,792 last year. Right off the Gardiner Expressway, it’s a convenient location for residents with cars to either zip into the city or head to the 905.

The Toronto Star
February 8, 2012 22:02:00
Jayme Poisson
Staff Reporter

GTA condo sales climb 24% to record in 2011

2012-02-08T09:38:00.001-05:00

A record 28,190 condos were sold across the GTA last year, up 24 per cent from the previous high set in 2007, says condo research firm Urbanation.

While sales remained sky-high in the final quarter of 2011, at a record 7,226 units, the inventory of unsold suites has been creeping up. As of the end of last year, it stood at just under 15,000 units — about 18 per cent of existing condos — up from 12,272 in the first quarter of 2011, Urbanation notes in its second annual report on the state of the GTA condo industry.

That’s still below the five-year 21 per cent average for unsold suites.

“The more successful the condominium market is in Toronto, the more reports surface warning of oversupply or a correction in prices,” said Ben Myers, executive vice-president of the condo tracking company.

Myers points to speculative buying, over-leveraging and “herd behaviour” as three risk factors that are hard to assess but could lead to a correction in Toronto condo prices.

But he notes that so far there seems to have been very little “dumping” — or flipping — of units for a quick profit before move-in day, which suggests most purchasers are likely “long-term, hold-and-rent investors” who are boosting the much-needed supply of rental accommodation in the GTA.

Urbanation predicts the market will remain strong this year, although it will revert to more normal sales levels of 20,000 or so units.

The Toronto Star
Susan Pigg
Business Reporter

Toronto real estate: Average detached house $606,600

2012-02-07T09:35:00.001-05:00

The Canadian Real Estate Association has launched a new system for tracking home and condo sales prices aimed at giving buyers and sellers a more precise picture of what’s happening right in their neighbourhoods.

The new system will track Canadian and regional home sales and price escalations based on “benchmark prices.” Those benchmarks are based on quantitative factors (the number of rooms, bathrooms, age of home) and qualitative factors (proximity to schools, parks) and are intended to shine a light on highly localized factors that may be skewing prices up or down but not necessarily reflect market conditions.

CREA has also established a new MLS Home Price Index — similar to the Consumer Price Index which measures price inflation — that tracks prices relative to January, 2005 based on house type, be it single-family homes with one or two storeys, townhouses, row homes or condo apartments.

As of January, the benchmark price of a single-family home in Toronto hit $606,600 — $100,000 more than the $499,800 benchmark price for a similar home in the rest of Canada. That Toronto home cost 50.3 per cent more than it would have in January, 2005.

Over time, far more localized data will become available for MLS districts that should paint a clearer picture of neighbourhood trends.

“One of the key goals is to take a little bit of volatility out of housing statistics,” says Jason Mercer, senior analyst for the Toronto Real Estate Board. “It’s going to provide a good tool for consumers to understand where their home fits into the market.”

CREA will continue to release its traditional Canada-wide and regional breakdowns of average and median home prices, which it claims are often “misinterpreted” and can swing significantly, as national prices did last year when there was a rush of foreign investors snapping up homes in high-end Vancouver neighbourhoods.

Right now, just five major real estate boards across Canada are part of the new system — the GTA, Greater Vancouver, the Fraser Valley, Calgary, and Greater Montreal.

Eight more boards will start using the new measures this year, and another eight boards next year.

Susan Pigg
Business Reporter
The Toronto Star

Good news for RIM....

2012-02-03T09:18:00.000-05:00

RIM’s challenge: Keep teenage BlackBerry texting addicts, Bay Street bankers, add iPhone, Android fans

Nicole Tollefson uses her BlackBerry Bold to keep up on her Grade 11 math homework, but she raves about her iPhone.

Her BlackBerry is efficient at messaging and makes it easy to participate in groups. If Tollefson has a math question, she sends it out to 11 other members in her math class group who also have BlackBerrys. She uses BlackBerry groups to keep up with her fashion show committee work at school.

But as soon as her friends update to iPhones, she’ll be dumping her Bold.

“The iPhone is so much easier. It’s faster, I can have my music on it, my photos. It’s faster on the Internet. I don’t bother going on the Internet anymore with the BlackBerry because it’s way too slow,” says Tollefson, 16.

Tollefson embodies the challenge that Research in Motion faces. Tollefson liked her Bold when she got it three years ago. Now Research In Motion has to woo her back.

Whether RIM’s new line of smartphones will be able to win back consumers remains to be seen.

Kevin Michaluk is a believer. A founder of Crackberry.com, a website for fans of BlackBerry products, Michaluk thinks the smartphone platform RIM is trying to push out this year will reclaim lost fans and win new ones.

It’s not just that the BlackBerry 10 will look slick – if a leaked photo of the new phone is authentic, the new BB 10 will be sleek and slim, with the kind of big, new high-definition screen found on the Galaxy that is already making the iPhone 4s look a little dated.

It will also be the first BlackBerry phone designed specifically with consumers as well as corporations in mind, says Michaluk.

RIM’s initial foray into the smartphone market – the Storm – was a buggy disaster, mostly because it was old technology warmed over. The QNX platform promises to deliver a totally different user experience.

BlackBerry is also aggressively wooing app developers, promising those who submit an Android app to BB AppWorld by Feb. 13 will get a free PlayBook.

The PlayBook, RIM’s answer to the iPad, sold so poorly before Christmas it had to be deeply discounted, and is now available for hundreds less than its original list price.

“They’re taking the best things you know from the BlackBerry of the past and bringing it to this platform, which is designed for the next decade and beyond,” he says.

He’s expecting a phone that will be able to run multiple applications at once, and the ability to move easily between the applications, which is a feature of the PlayBook.

“If you use a PlayBook for a while and you go back to the iPad, the iPad feels old now,” says Michaluk.

He believes the new BB will bring new value to the market. While Android phones are competing for consumer dollars with gimmicks like face recognition, the BlackBerry will offer more meaningful value.

The criticism of the BlackBerry has always been the browser is slow and there aren’t many applications. The new phones will address both those issues, says Michaluk.

“I think once they close all their gaps, they will get attention.”

“The good news for RIM is that its brand remains solid in a number of key sub-markets. In addition to messaging-obsessed teens and security-conscious financial sector buyers, the BlackBerry is still a staple in government, health care, and other key verticals,” says technology analyst Carmi Levy.

He says RIM needs to develop niche marketing to appeal to their different customer groups.

“RIM can't afford to fly at 50,000 feet anymore.”

Avoid top five home buying errors, Ontario Realtors advise

2012-02-01T09:44:00.000-05:00

As housing market increases homebuyers need to be informed about costly oversights

TORONTO, Dec. 13, 2011 /CNW/ - According to a recent RBC report, the number of homes for sale in Ontario is on the rise and affordability province-wide is stable. The rush to buy with more available homes on the market could mean more mistakes made by consumers.

A panel of experts from the Ontario Real Estate Association (OREA) board of directors advises against making hasty or uninformed choices by avoiding five common errors:

1. Not knowing what you can afford

Barbara Sukkau, president of OREA and a Realtor based in St. Catharines, says that mistakes made in a competitive environment can be costly and restrict lifestyle choices.

"Many people don't know that there's an easy way to calculate how much house they can afford to determine, regardless of competing bids, what lifestyle they want to maintain within the market," says Sukkau. "In addition to the cost of the home, potential buyers should consider the land transfer tax, closing costs, moving costs and leave room for any unforeseen extras."

In fact, Realtors often use a calculation called the Gross Debt Service Ratio. Sukkau explains how to calculate what you can afford at http://bit.ly/OREAaffordabilty.

2. Not preparing your finances, or getting pre-approved

"Many sellers will require a potential buyer to get pre-approved. When there are competing bids on the house of your dreams, pre-approval could give you the edge," says Patricia Verge, OREA board member working out of Ottawa.

"Pre-approval can take up to a few days after you provide your bank with things like verification of income and down payment," Verge adds.

If a buyer meets the lender's requirements, then written confirmation of pre-approval will be provided. According to the Canada Mortgage and Housing Corporation, this pre-approval is time sensitive and is not a guarantee of receiving a mortgage loan.

Verge also cautions buyers against using their pre-approval as a final budget. "Potential buyers should balance their debt load and other financial commitments with what the bank is willing to lend," she says.

3. Not knowing your must-haves

Tom Lebour, OREA board member working out of Mississauga, notes that his clients aren't always sure about what they're looking for.

"Clients often fail to consider what amenities are in the neighbourhood they're looking to buy in, especially when relocating from the city to the suburbs. How 'walkable' is a neighbourhood to places like grocery stores, schools and banks? This feature is important to many homebuyers, but they can fail to think about it in the excitement about the number of bathrooms a house has. Create a list by thinking about a day in your life and the various things important to you and your family."

4. Not getting a home inspection

"I always advise buyers to have their own home inspection done, even if the seller offers the results of a previous inspection and even if others are keen to put in an offer," says Phil Dorner, OREA board member working out of Belle River.

"Ensure that you have a qualified and bonded home inspector perform a full inspection as part of your offer. An investment of a few hundred dollars could save you thousands down the road."

5. Getting emotions involved in negotiations

Buyers and sellers will often let their emotions get the best of them, says Mike Douglas, OREA board member from Barrie.

"Emotions can get in the way of negotiations because sellers inadvertently assign real value to their memories, which don't hold financial value for the buyer. We do our best to help our clients keep their emotions out of the equation," Douglas says.

For more tips, visit orea.com and order your free books on home buying and selling. Or, check out Barb Sukkau's video on what a Realtor can do for you.

About the Ontario Real Estate Association
The Ontario Real Estate Association represents 50,000 brokers and salespeople who are members of the 42 real estate boards throughout the province. OREA serves its REALTOR® members through a wide variety of professional publications, educational programs, advocacy, and other services.

The real estate panel members provided input on common home buying and selling mistakes over email from November 8 to November 22. The panel consisted of nine OREA board spokespeople including representation from St. Catharines, Timmins, King City, Barrie, Oakville, Belle River, Mississauga, London and Ottawa.

For further information:
or to book an interview with Barbara Sukkau or a local OREA spokesperson, contact:

Jennifer Fox
Thornley Fallis Communications

Canadian housing is ‘pricey,’ but far from a bubble: BMO

2012-01-31T09:20:00.000-05:00

The Canadian Press

OTTAWA—The Bank of Montreal says Canada’s somewhat pricey housing market is likely to cool, not crash.

The bank’s economists say the only real trouble spot is Vancouver, where there are plenty of vacant high-priced condos going begging.

The report suggests that alarms about Canada’s housing market by international observers, from the International Monetary Fund to The Economist magazine, are exaggerated or simplistic.

Even Toronto’s hot condo market — one of the subjects of many of the warnings — is more likely to cool rather than collapse, the economists say.

A comparison of house prices to household incomes shows an increase from a decade ago, but not an excessive one, the report points out.

Nor are most Canadians close to an American-style debt wall that preceded the subprime crash in 2007.

Nevertheless, the BMO economists say house values are somewhat pricey and expect sales, starts and prices to flatten out this year.

2012-01-28T09:11:00.001-05:00

Selling your home is one of the most significant transactions you’ll ever be involved in. To help you through the process of such an important business deal, you’ll want to select a real estate agent who displays a good combination of knowledge, honesty and communication skills suitable to your needs.

As with other service providers and consultants, the best way to find a real estate agent is through personal referrals from family or friends. Look for an agent who shows knowledge of the real estate market and your neighbourhood, displays confidence and above all, listens to your concerns.

Here are a few tips to help you find the right real estate agent:

Check For Sale signs in your neighbourhood for names of agents who specialize in your local area.

Attend open houses promoted in your local papers to meet agents in your community.

Check weekly housing listings in newspapers for real estate agents who have listed similar homes to yours in your neighbourhood.

Visit real estate agency Web sites to find a specific realtor or for a listing of real estate offices in your area. Many agency Web sites feature an on-line multiple listings service for browsing properties; look for similar homes to yours in your community and make note of the names of agents representing them.

Request an agent visit for an interview or a listing presentation. This can give you the opportunity to evaluate their experience and qualifications, talk about a marketing plan to sell your home and possibly perform a Comparative Market Analysis (CMA). A CMA provides information on past and current property sales of homes similar to yours in your area, in addition to uncovering data on homes in your neighbourhood that did not sell. The agent may use this information, along with marketplace stats and their own experience to help you set a price for your home.

Tips to find the right Real Estate Agent

2012-01-27T21:59:00.001-05:00

Selling your home is one of the most significant transactions you’ll ever be involved in. To help you through the process of such an important business deal, you’ll want to select a real estate agent who displays a good combination of knowledge, honesty and communication skills suitable to your needs.As with other service providers and consultants, the best way to find a real estate agent is through personal referrals from family or friends. Look for an agent who shows knowledge of the real estate market and your neighbourhood, displays confidence and above all, listens to your concerns.Here are a few tips to help you find the right real estate agent:Check For Sale signs in your neighbourhood for names of agents who specialize in your local area.Attend open houses promoted in your local papers to meet agents in your community.Check weekly housing listings in newspapers for real estate agents who have listed similar homes to yours in your neighbourhood.Visit real estate agency Web sites to find a specific realtor or for a listing of real estate offices in your area. Many agency Web sites feature an on-line multiple listings service for browsing properties; look for similar homes to yours in your community and make note of the names of agents representing them.Request an agent visit for an interview or a listing presentation. This can give you the opportunity to evaluate their experience and qualifications, talk about a marketing plan to sell your home and possibly perform a Comparative Market Analysis (CMA). A CMA provides information on past and current property sales of homes similar to yours in your area, in addition to uncovering data on homes in your neighbourhood that did not sell. The agent may use this information, along with marketplace stats and their own experience to help you set a price for your home. Be sure to interview at least two agents before making your hiring decision. You have no obligation to hire on an agent who makes a visit.Once you have chosen a real estate agent with whom you feel comfortable, you can expect them to offer sound advice on putting your home on the market. They will help you determine a selling price and walk you through the signing of a Listing Contract that states the price of your home and any terms attached to its sale. This contract is used by all members of the Canadian Real Estate Association to match buyers with homes for sale.

Rundown city-owned houses up for sale

2012-01-27T09:05:00.001-05:00

January 27, 2012 07:01:00Susan Pigg Business Reporter Leslie Wallace found an anxious crowd waiting yesterday as he arrived at a dilapidated Crawford St. house for one of the shortest open houses in real estate history — half an hour.More than two dozen potential buyers lined the walkway and spilled onto the street in front of the well-worn Toronto Community Housing property, a detached, three-storey brick home listed for almost $1 million.“I’ve never seen anything like this,” says Wallace, who’s been selling real estate in central Toronto for 28 years. “The amount of interest in these properties is overwhelming.”The city is hoping to sell off close to 700 stand-alone houses scattered from Scarborough to Etobicoke to free up cash for much-needed repairs to its decades-old stock of multi-unit assisted housing. And the race is on.With interest rates at historic lows and a drastically short supply of homes for sale across Toronto, buyers are clearly banking on deals —and a rare chance to live on some of the most desirable streets in the city.Related: Ritz-Carlton five-star condos proving a tough sellRelated: Is a 2.99% mortgage too good to be true?So far city council has approved a sell-off of 27 homes, 10 of which still need approval from the province. Five have sold so far, in the east-end Beach neighbourhood and the city pocketed $3.28 million.The city has set a Jan. 30 deadline for offers on the three homes Wallace now has listed on Crawford, an eclectic, family friendly street near Christie that stretches south of Queen St. to north of Bloor St.Two others will hit MLS in the next few weeks.The properties are being listed in a slow and staggered fashion to not flood the market. And while the properties all need tens of thousands in work, realtors are predicting intense bidding wars.When it comes to Crawford, it’s clearly not about the house so much as location, location, location.All three properties back onto major parks — either Christie Pits or Trinity Bellwoods.In fact, one home — a battered, boarded-up brick semi that’s listed for $495,000 — is tucked so tightly up against sprawling Christie Pits Park that kids could almost jump into the pool from the second-storey bedroom window.Just a handful of houses to the north is another brick semi that, apart from the serious mould problem in its one bathroom, is remarkably well kept. More stunning is the land it sits on — a 43.6 by 110 foot lot with a private drive big enough to fit a small house.All three homes are just steps from shopping and the Queen or Bloor Sts. transit lines.The biggest, the three-storey detached that has drawn so much interest, is crying out for a gutting and is listed at a relatively steep $995,000. It sits on an overgrown 33 by 118 foot lot and can only be shown for half an hour a few times each week so as not to disrupt the three generations of one family who still call it home.But at Thursday’s supposedly brief showing there was such a rush of interest, Wallace was still struggling to lock the door after an hour. He was just stepping across the hardwood flooring to the foyer when a High Park couple — their teenage daughter in tow — walked in the house and headed up the stairs.“Even though they all need renovations, people can see that this is a really hot area,” says Wallace, urging the family to be quick. “You’re steps from Ossington, Little Italy, Queen St. West and close to the downtown.“I’ve had clients says they would just paint and live here — that they don’t need granite countertops because it’s a big house and they like parks.”The High Park family says otherwise.“You’d need about 20 (reno) containers and you could easily sink $300,000 to $400,000 into this house,” says the experienced renovator as he, his wife and teenaged daughter give the house a final once-over from the sidewalk.“Who knows what’s going to happen to the Toronto market,” he says, sizing up the cluttered porch and worn windows. “I prefer High Park, but my kids really want to live here because it’s close to everything.”Their daughter’s glee is palpable, as is the pain on her parents’ face.The three head home to crunch some numbers — and talk about booking a return visit for Sunday.

Does Investing in Real Estate pay off?...Yes!

2012-01-26T10:03:00.001-05:00

"Five units have sold since July on MLS and their owners have pocketed $300,000 to $440,000, she said. Three more deals are pending."Susan Pigg Business Reporter Trump Tower. The million-dollar view from this 28th{+-}floor corner condo at the Ritz-Carlton Hotel and Residences is beyond one of a kind.The CN Tower is so close you can almost touch it from the kitchen table and the setting sun lights up the living room’s wall of west-facing windows.But for a very long time, no one was buying.This “mansion in the sky” took 180 days to sell. And it’s far from alone.Some 29 of The Ritz’s 161 granite-and-glass clad condos have been for sale for months now on MLS. And that’s not counting 12 units the developer is still marketing in the 52-storey project, the first of four five-star hotel-condo developments to hit the Toronto market.That, combined with the sizable number of Trump International condos investors have been trying to unload in the underground “assignment” market, is boosting buzz about how fierce the competition could get when Trump officially opens its doors Jan. 31, followed by the Shangri-La and Four Seasons residences later this year.“I think we’re seeing already with the Ritz that there’s not a lot of demand for resale (condos) in this price range,” says realtor John Pasalis, who has been watching this sector closely and is concerned about an oversupply of luxury condos.“In some ways this (the number of Ritz and Trump units now for sale) is the sign of a market that was very speculative and is reaching a point where investors are starting to realize that just because they bought (early) doesn’t mean they are going to make an easy buck.”That 2-bedroom, 28th-floor condo, for instance, was first listed back in July for $1.85 million — about $950 a square foot. Its maintenance fees alone are $1,800 a month.It was later reduced to almost $1.6 million or about $825 a square foot. It sold conditionally this week for an undisclosed amount.There’s no doubt it went for substantially less than the $1,100 per square foot the developer is asking for their 12 remaining units.Condos sold in the pre-construction phase of The Ritz averaged $925 per square foot, says condominium research firm Urbanation. But a few went for as little as $700 or $750 per square foot says realtor Barbara Lawlor of Baker Realty who is overseeing sales for Ritz developers Graywood Developments and Cadillac-Fairview.“Some people invested believing they would make great profits and now they’re trying to realize that,” which explains why there are so many units now listed on MLS, says Lawlor.One investor, she noted, paid less than $2 million for their 2,400 square-foot two-bedroom condo and is now asking almost $3 million. It’s still for sale.Five units have sold since July on MLS and their owners have pocketed $300,000 to $440,000, she said. Three more deals are pending.“The developer would prefer if they (lower priced units) were not for sale on the MLS,” she added, “but there’s not much we can do.”The Ritz has a “huge advantage,” says Lawlor, being the first of the five-stars to be opened to the public by dignified doormen last February on Wellington St., steps from Toronto’s entertainment district.The 379-unit Trump International opens next week in the financial district, followed by the Living Shangri-La on University Ave. and the Four Seasons residences in Yorkville later this year.While all the projects appear to be at least 80 per cent sold out, some Trump investors have already tried to back out of contracts or “assign” their units to new buyers through realtor word of mouth since they can’t be listed on MLS until the building actually opens and they take possession.Dozens more condos are expected to hit the market as the remaining five-star projects open, although few listings are expected at the Four Seasons, the favourite, it seems, of Toronto’s downsizing rich.But Lawlor says she expects any resales will be consistent with the 18 to 20 per cent of listings she routinely sees when a new condo project gets built as buyers try to cash out or find their personal situation has changed during the three to five years of construction.The great unknown here, housing experts say, is whether there are enough buyers able to cough up a million dollars plus for all those luxe condos.“The market will find its level, but the next year will be interesting because never before has there been so much luxury product come into the market at the same time,” says Lawlor.“I believe there will be buyers in the Toronto market for these listings.”So does realtor Andy Taylor, senior vice president of sales for Sotheby’s International, who is working with two potential Ritz buyers right now.“It’s partly because this is new to the city — five-star living is in it’s infancy in Toronto. I think the minute people experience what it’s like to walk through those doors, we will find more buyers.”Susan Pigg, The Toronto Star

7 tax mistakes that can trigger an audit

2012-01-25T09:03:00.002-05:00

Someone out there is watching you. And that someone, occupying a cubicle deep in the bowels of the Canada Revenue Agency, is just itching for an excuse to get out of the office and conduct an audit -- of you.Here are seven mistakes that HR Block says are most likely to put you under the CRA microscope.1. Forgotten T slip: You are the boss of your income and CRA wants to know every nickel you’ve earned -- even if you don’t have a T slip. CRA has one of those lightning fast matching programs that will zero in on you if an employer has filed one and you don’t report it. And if you fail to report income from a T-slip twice in two years the penalties could be substantial. 2. Hobby or business: Growing shiitake mushrooms in your basement rec room may be a whale of fun but creating income reducing losses from it could get you into trouble. If there is no reasonable expectation of a profit and years of losses, expect an auditor to come knocking at your door. 3. Incorrect support credit claims: Filling out line 220 is likely to give you a free pass to a CRA review because support payments for children are deductible only if your agreement was dated before May 1, 1997. And if you are supporting a spouse or common-law partner the agreement or court order must be filed with the CRA. 4. Claiming regularly reviewed credits: In a six-year period I had four CRA reviews -- two after claiming moving credits and two following tuition transfers from my two daughters. These claims are top of the CRA’s let’s-take-second-look list. Just make sure you keep your moving receipts and the signed T2202A form to back up the tuition transfer. 5. Out of the ordinary: If you claim 50 per cent of your home expenses and 95 per cent of your car expenses for business use, chances are you will trigger an audit. Be reasonable, truthful and, when it comes to auto expenses, keep a log book. 6. High life on low income: Few taxpayers have ever heard of a net worth assessment but the CRA can conduct one if they suspect your claimed itty bitty income is covering up under-the-table work. The CRA actually has a snitch line and if you have annoyed someone who knows your income doesn’t match your lifestyle you may find yourself with a lot of explaining to do. 7. The cheatin’ habit: If you’ve been a little less than honest in the past, and been caught, the CRA is more likely to circle back for a repeat review. As always, honesty is the best policy on the tax front -- oh yes, and keep those receipts for six years, just in case.By Alison Griffiths

Tiny Coxwell box home sells for over $349,000 asking price. imagine what you can buy in Durham for ths price!

2012-01-24T09:24:00.001-05:00

The Toronto Star-Susan Pigg Business Reporter The tiny box house on Coxwell Ave. has sold for “well over” the asking price of $349,000 — to a couple with two young children.The buyers, an architect and interior designer, beat out five other bidders with vision rather than money, by bringing their own architectural plans to the table.They were “exceptionally passionate” about the house and presented expansion plans, as well as their ideas for recladding the aged exterior of the three-storey building, that were “well in line” with the grand plans the owner and designer, architect Rohan Walters, had for the property when he first built it on a tight budget back in 2003.The final price tag can't be disclosed yet because the offer is conditional until Friday, said listing agent Jennifer Scaife. It's believed to be more than $400,000.There had been a higher bid but “money is not the only driver,” Walters said in an interview. “One of the hallmarks of my work is that I can see things where other people cannot and do not. I relied on instinct and it has served me well.”Walters was delighted to have a family “grow up and experience” the Coxwell home, one of many he has planned. He has been keeping a list for years of unusual plots of land throughout the city where he can challenge building conventions.He sold the Coxwell house, in part, to fund that ongoing work, including construction of a “townhouse” on a 10-by-37-foot driveway he bought for $14,000 directly beside the equally unusual College St. and Lansdowne Ave. home he built and lives in. That new house, to be completed in June, will be tested on tenants to ensure the space works.Walters' crazy Coxwell house is comprised of three 16-by-16-foot floors of heated concrete slab, resting on stilts. The detached house sits on a bowling-alley-like 23-by-205-foot lot on a busy street.The stilts minimize vibrations from streetcars and lift the unusual home up to street level, where it has delighted children, and perplexed their parents, for almost a decade.The house has no furnace, basement or closets — which would have made it a better fit for the highest bidder, a single person. By adding on, pending city approval, it's expected the new buyers will add family-friendly amenities — such as a kitchen.

Curious to know how your neighbourhood fared in Sales? Visit thestar.com for their interactive map.

2012-01-23T08:57:00.001-05:00

Toronto’s toughest real estate markets? Jane and Finch, and the Bridle Path January 22, 2012 17:01:00Robyn Doolittle Urban Affairs Reporter At one end of the spectrum, there is the Bridle Path, sometimes referred to as Millionaires' Row.On the other, there is the troubled Jane and Finch corridor, which year after year ranks among the city’s most crime-stricken neighbourhoods.These two communities could not be more different, yet they share the same big problem. The Bridle Path and Jane and Finch are the worst real estate markets in Toronto.In realtor speak, they’re known as C12 (The Bridle Path) and W05 (Jane and Finch). And according to recent statistics released by the Toronto Real Estate Board it would take exactly 102 days to burn through the current inventory in both regions, if no more properties came on the market.By comparison, it would take 36 days to sell off all the properties currently listed in (E02) The Beach and W02 (The Junction/High Park).The city average for all 36 MLS zones is just over two months: 66 days.For housing market consultant Will Dunning, the fact that property statistics at Jane and Finch are identical to those in the upscale Bridle Path makes for an amusing sound bite, but economically, it’s not that surprising.“I think in general the tails of the market — the high and low end — tend to be the most variable over time,” he said. “In a recovery situation, these markets would rebound quickly, but when the economy is softening, which is what we’re seeing right now, they will slow more quickly.”Last month, when 44-year-old Selva Himalayaratnam put his yellow brick bungalow on the market in W05, he knew he could be in for a wait.The self-employed contractor and his wife bought the Hoover Cres. property as a fixer upper last spring for about $305,000. Himalayaratnam gutted the house, installed new washrooms, hardwood floors, a new kitchen with stainless steel appliances, new windows and a refurbished basement apartment.The couple put about eight months and $120,000 worth of work and materials into the renovation. The five-bedroom property is listed at the relatively modest price of $519,000. In many neighbourhoods around the city, the place would be gone in days. But Himalayaratnam’s house is just around the corner from the city’s most notorious intersection in an MLS zone where properties can sit on the market for months on end and fetch an average price of about $320,000.“Our realtor warned us it could take time,” he said. “This is an area that needs the right buyer. Maybe a new immigrant family with kids who want to go to York University which is very close. This particular street is very quiet, a lot of old Italian couples, but not everyone would want to live in this area.”Meanwhile, on the other side of town in C12 — where the average selling price is $1.4 million — a luxurious 1,394 square foot condo has been sitting on the market for 150 days. This ornate two-bedroom suite at 10 Old York Mills Rd. is located in posh Hoggs Hollow, a community separated from the Bridle Path by the Rosedale Golf Club.“There are only so many buyers who can afford these types of properties,” said Philip Ngon-Tim Ng, a local realtor who specializes in high-end condos. “Sellers know they need to be patient.”Jason Mercer, a senior market analyst with TREB, said these statistics are a great tool to establish a jumping off point for buyers and sellers, but he cautions against reading too much into them.“Sometimes the months of inventory numbers are (more) representative of how that area developed over time. For the Bridle Path, for example, you’re talking about properties that are only catering to a small component of the population… It’s not that the neighourhood isn’t hot or not so to speak,” he said.Curious to know how your neighbourhood fared? Visit thestar.com for our interactive map.

is buying a condo a sound investment?

2012-01-20T13:23:00.000-05:00

By goldengirlfinance.ca There are plenty of benefits associated with buying a brand new condo. From the fancy finishes to the white-glove cleanliness, it's hard to argue with brand new...or is it? If you want to buy a new condo, by all means, go for it. Just make sure to review the purchase information in your contract carefully.The following are four things that you might not know when it comes to buying a new condo.Four common new condo snags1) Exaggerated square footageIt's important to note that condo owners buy a "percentage of common interest" when they sign their purchase papers. This includes the square footage of the individual unit as well as small portions of the hallways, lobby, and elevator — any common space in the building. As a result, that "900-square-foot" listing could actually be much smaller. This is because some listing agents will include the total square footage (common square footage space included) rather than just the unit's dimensions in order to "pad" the property's specs. The best way to make sure you're buying a property that's spacious enough? Think about your furniture rather than a magic number. If your stuff will fit, it's probably big enough.Related: How to survive a real estate crash2) The condo fees are understatedCondos are a great first-time home buyer option, especially for single people, because they require very little outdoor maintenance. Instead of spending your weekends weeding, you simply pay your portion of the condo fee and enjoy the professional landscaping all year round. When a new building opens, however, the developers can only guess at what these types of upkeep projects will cost in order to calculate the necessary common charges. If this estimate is low, sooner or later your monthly maintenance statements will begin to rise in order to make up for the difference.3) Don't amortize foreverWhen searching for your dream condo, make sure you know exactly what you can and cannot afford. A mortgage pre-approval can help you assess your financial situation and streamline your property search. Without this knowledge, you could find yourself making dangerous financial decisions in order to bid on a beautiful, but unrealistic housing option. Just because you can extend (or amortize) your mortgage for 30 years doesn't necessarily mean that's a good thing. Heed some good mortgage advice and spend within your means.Related: A home to stay: Understanding residential mortgages4) Be aware that buildings can get "stuck"A sure sign of a shaky economy is the state of the real estate market. During the Great Recession, it became increasingly difficult for building developers to get financing. As a result, many companies couldn't finish the buildings they'd started. This still happens today, so be extra careful when pre-purchasing a unit in an unfinished building. You could find yourself right back at the beginning of your house hunt if the building hits a financial snag.Don't throw caution to the condo windsNew isn't synonymous with perfect, so remember that as with any house hunt, use caution when considering a unit in a brand new condo development. A little due diligence can go a long way to protecting your home buyer investment.

10 Ways to avoid buying the wrong house

2012-01-19T09:19:00.001-05:00

The most common mistake home buyers make is that they buy with their heart instead of their head. This often means they pay more than they should or are disappointed when they uncover defects in the home or find out the neighbourhood isn’t quite what they thought.1. Visit the neighbourhood on foot.Take a walk through the neighbourhood and talk to people. Drive by at 7:30 in the morning to see how many school buses are picking up children. You can also tell how long it may take you to commute to work during rush hour. By speaking to people, you can not only get a sense of the friendliness of the community, but also as to whether there are any surprises that no one is going to advertise, a local haunted house, vandalism, former grow houses, or the neighbour from hell.2. Go to City HallVisit your local building department and find out if any new developments are planned. New development may increase property values but also increase traffic. Check to see how many owners have applied for minor variances, to either build homes or additions that are larger than the by-law permits. This gives an indication of the future direction of this neighbourhood.3. Find the right real estate agentStart by asking family and friends. Look for signs in the area that interest you, especially “Sold” signs. This is a good indication that the agent has the area’s pulse and knows what a home should sell for. They should also likely be aware of any problems, such as sewage backups, termites or vandalism; things that may only be known by locals. Also check the website of any agents that you may interview. Do they offer tips and explain what services they provide? Do they offer information about the neighbourhood including parks, religious institutions, demographics and schools? Ask about their success rate with bidding wars and do they know how to approach sellers who refuse to pay commission?4. How much can you afford?When it comes to mortgages, it is not enough to know in advance how much you can safely borrow based on your income. Buyers should also realize that the lender will do an appraisal and if the lender believes you paid more than the house is worth, they will not give you the full amount of the loan that you expect. So, be very careful about stretching yourself to the limit when you make an offer on any home. 5. Title insurance is a mustTitle insurance can be arranged through your lawyer. You will be protected against unpaid taxes or water bills by the seller, as well as problems that are not known at closing. This includes problems where part of the home or swimming pool is in fact on your neighbour’s property. However, it is a mistake to believe that title insurance will protect you against everything. For example, title insurance will not compensate you if you thought your lot was 50 feet and a later survey showed that it was only 48 feet.6. Why a survey is important A survey will reveal all boundary issues in advance, which will ensure that you do not have problems after closing, especially if you plan on making additions or other improvements.7. Choose a home inspector carefullyThe home inspection is a critical part of the process, so do your research. Make sure the company is registered before retaining them. The Ontario Association of Home Inspectors is a self-regulating body that defines qualifications for home inspectors, and grants the designation RHI, or Registered Home Inspector, to qualified practitioners in Ontario. Most inspection firms have a limitation of liability clause, which states that if they miss something that costs you money, they are not responsible. Ask the company if they have ever been sued by a buyer.8. Ask the seller hard questionsAsk the sellers if they have had basement flooding problems, or mould or roof leaks, even if the leaks have been repaired. Watch how they answer. Most sellers will now refuse to sign property disclosure statements, but they are required to respond truthfully to these questions if you ask them directly. If the seller refuses to answer or acts suspiciously, then you need to discuss this with your home inspector and your real estate agent and either adjust your purchase offer or walk away.9. Basement apartments must be legalIf the home contains a basement apartment and the income is important to you, make sure that it legally complies with zoning and the fire code by-laws. If it doesn’t, then all it takes is one complaint from a neighbour and you may be forced to spend thousands of dollars to make it comply after you buy.10. Check about your insurance premium earlyFind an insurance agent right away and if possible, check what it will cost to obtain insurance as soon as you sign your agreement and before you waive any conditions. An insurance agent can check the history of claims in the neighbourhood and can let you know about claims for sewage back-ups or vandalism. This is important information that any buyer should have before deciding to waive their conditions and complete the deal.If you follow these simple steps and buy with your head instead of your heart, chances are you’ll get the house you want at a price you can afford, with no unwanted surprises. Mark Weisleder is a lawyer, author and speaker to the real estate industry.

Tips to help you find the right real estate agent, so you can get the highest price for your house.

2012-01-17T08:26:00.000-05:00

Selling your home is one of the most significant transactions you’ll ever be involved in. To help you through the process of such an important business deal, you’ll want to select a real estate agent who displays a good combination of knowledge, honesty and communication skills suitable to your needs.As with other service providers and consultants, the best way to find a real estate agent is through personal referrals from family or friends. Look for an agent who shows knowledge of the real estate market and your neighbourhood, displays confidence and above all, listens to your concerns.Here are a few tips to help you find the right real estate agent:Check For Sale signs in your neighbourhood for names of agents who specialize in your local area.Attend open houses promoted in your local papers to meet agents in your community.Check weekly housing listings in newspapers for real estate agents who have listed similar homes to yours in your neighbourhood.Visit real estate agency Web sites to find a specific realtor or for a listing of real estate offices in your area. Many agency Web sites feature an on-line multiple listings service for browsing properties; look for similar homes to yours in your community and make note of the names of agents representing them.Request an agent visit for an interview or a listing presentation. This can give you the opportunity to evaluate their experience and qualifications, talk about a marketing plan to sell your home and possibly perform a Comparative Market Analysis (CMA). A CMA provides information on past and current property sales of homes similar to yours in your area, in addition to uncovering data on homes in your neighbourhood that did not sell. The agent may use this information, along with marketplace stats and their own experience to help you set a price for your home. Be sure to interview at least two agents before making your hiring decision. You have no obligation to hire on an agent who makes a visit.Once you have chosen a real estate agent with whom you feel comfortable, you can expect them to offer sound advice on putting your home on the market. They will help you determine a selling price and walk you through the signing of a Listing Contract that states the price of your home and any terms attached to its sale. This contract is used by all members of the Canadian Real Estate Association to match buyers with homes for sale.

Good news to look forward to in Real Estate for 2012

2012-01-16T09:05:00.001-05:00

While 2011 proved to be a rocky road in the economy, there is much to look forward to in 2012 in the housing market- according to Dave Liniger, Chairman and Co-Founder of RE/MAX.Speaking about the recovery of the US housing market, Liniger says that the key to activity lies in the continuation of low interest rates. “Interest rates will remain at or near historic lows and home prices will stabilize and start to rise by the end of the year,” said Liniger “There’s no question, the housing recovery will be slow and steady, but for many cities the turn-around is already happening.” “Informed and savvy consumers and investors recognize there’s great opportunity in this market and they are leading the way to recovery,”Liniger added. Many believe that 2012 may the year of turnaround for the beleaguered US housing market, but Liniger draws on several factually based elements to make his predictions for the year to come.It has been stated by the Federal Reserve that homeowners can expect low interest rates to continue through the next few quarters. A move like that has been unprecedented, and provides a unique opportunity in the housing market.With interest rates low, of course, there will be more buying activity- which will in turn bring some life to housing prices that have remained depressed throughout the recession, and afterwards.He believes as well, that inventories will continue to rise, as foreclosures will continue to rise too. There will be great buying opportunities on the market.He also sees the rate of homeowners fall, perhaps suggesting that those who may have been on the fringes of homeownership prior to the subprime crisis are now removed- and that those who continue to be homeowners have healthier financial situations, which contributes overall to economic health.With prices continuing to be low, there will likely be a continued interest from foreign property investors. Liniger puts 25% of purchases next year in the hands of investors. Canadians lead foreign property investment in many pockets of the country, in appealing areas like Arizona and Florida.Linger also thinks that 2012 will be the year that will see the resurgence of the real estate agent. In times of trouble, people need guidance and support that training and experience provides. He thinks that more homebuyers will be seeking this in the coming months.

Home prices to rise again in 2012, but more slowly than last year: LePage

2012-01-12T10:01:00.001-05:00

The Canadian Press. TORONTO — Canadian home prices will continue to go up in 2012, although at a slower pace than they did last year, according to a quarterly report issued Thursday by one of the country’s largest real-estate sales organizations.Royal LePage, which franchises brokerages across the country, predicted the national average price for resale homes will increase this year by 2.8 per cent by the end of the year. It said the national average price for a standard two-storey home was $375,427 in the fourth quarter of 2011, up 4.2 per cent from 2010.“Widespread calls for a major real estate correction in 2012 simply can’t be justified. The industry has significant momentum entering the year, and buoyed by the stimulative effect of very low interest rates, we expect the market to continue to expand — albeit at a slower pace,” said Phil Soper, the president and CEO of Royal LePage Real Estate Services.National averages don’t tell the whole story, however, since there are wide variations depending on the type of home and location.In Vancouver, a standard two-storey home had an average price of $1.1 million in the fourth quarter of 2012. By contrast, two-storey homes in Atlantic Canada had an average price of $200,000 or less in several cities.In Toronto, which is usually the country’s second-most expensive real-estate market after Vancouver, LePage found strong price gains for most housing types in the fourth quarter — due to a lack of available properties and steady demand.In 2012, Royal LePage expects that real estate values in Toronto will increase 2.6 per cent compared to 2011 — slightly slower than the national growth rate.In the fourth quarter, the average price for detached bungalows rose 7.2 per cent from a year earlier to $532,137; prices for standard two-storey homes rose 4.2 per cent to $629,188 and standard condos rose 3.4 per cent to $347,659.Some economists have said housing prices in certain Canadian markets, including the Toronto area, may be too high to be sustainable and are due for a correction.However LePage said housing prices have been high in Toronto because demand has outstripped supply.“Inventory has been a challenge for Toronto’s potential buyers throughout 2011 and this restricted supply has put upward pressure on prices,” said Gino Romanese, senior vice-president for Royal LePage Real Estate Services Ltd.“Standard condominiums in the resale market saw a more modest increase due to a healthier supply that was created by newer units coming online. However, demand for older units has increased as they are generally larger in size and preferable to (people downsizing from houses) who are used to more space.”In Victoria and Saint John, N.B., house prices were flat or slightly down in the fourth quarter, compared with the same period of 2010.In Saint John, detached bungalows fell 2.2 per cent year-over-year to $179,946, while standard two-storey properties slipped 0.3 per cent to $298,076. Condos were the exception, with average prices climbing 16.1 per cent year-over-year to $159,370, although LePage said those increases weren’t typical.In Victoria, standard two-storey homes were unchanged, with prices remaining at $480,000 while detached bungalows slipped 0.8 per cent to $486,000 and condos dropping 1.1 per cent to $282,000.

As housing market increases homebuyers need to be informed about costly oversights

2012-01-09T08:46:00.001-05:00

TORONTO,OREA - According to a recent RBC report, the number of homes for sale in Ontario is on the rise and affordability province-wide is stable. The rush to buy with more available homes on the market could mean more mistakes made by consumers.A panel of experts from the Ontario Real Estate Association (OREA) board of directors advises against making hasty or uninformed choices by avoiding five common errors:1. Not knowing what you can affordBarbara Sukkau, president of OREA and a Realtor based in St. Catharines, says that mistakes made in a competitive environment can be costly and restrict lifestyle choices."Many people don't know that there's an easy way to calculate how much house they can afford to determine, regardless of competing bids, what lifestyle they want to maintain within the market," says Sukkau. "In addition to the cost of the home, potential buyers should consider the land transfer tax, closing costs, moving costs and leave room for any unforeseen extras."In fact, Realtors often use a calculation called the Gross Debt Service Ratio. Sukkau explains how to calculate what you can afford at http://bit.ly/OREAaffordabilty.2. Not preparing your finances, or getting pre-approved "Many sellers will require a potential buyer to get pre-approved. When there are competing bids on the house of your dreams, pre-approval could give you the edge," says Patricia Verge, OREA board member working out of Ottawa."Pre-approval can take up to a few days after you provide your bank with things like verification of income and down payment," Verge adds.If a buyer meets the lender's requirements, then written confirmation of pre-approval will be provided. According to the Canada Mortgage and Housing Corporation, this pre-approval is time sensitive and is not a guarantee of receiving a mortgage loan.Verge also cautions buyers against using their pre-approval as a final budget. "Potential buyers should balance their debt load and other financial commitments with what the bank is willing to lend," she says.3. Not knowing your must-havesTom Lebour, OREA board member working out of Mississauga, notes that his clients aren't always sure about what they're looking for."Clients often fail to consider what amenities are in the neighbourhood they're looking to buy in, especially when relocating from the city to the suburbs. How 'walkable' is a neighbourhood to places like grocery stores, schools and banks? This feature is important to many homebuyers, but they can fail to think about it in the excitement about the number of bathrooms a house has. Create a list by thinking about a day in your life and the various things important to you and your family."4. Not getting a home inspection "I always advise buyers to have their own home inspection done, even if the seller offers the results of a previous inspection and even if others are keen to put in an offer," says Phil Dorner, OREA board member working out of Belle River."Ensure that you have a qualified and bonded home inspector perform a full inspection as part of your offer. An investment of a few hundred dollars could save you thousands down the road."5. Getting emotions involved in negotiations Buyers and sellers will often let their emotions get the best of them, says Mike Douglas, OREA board member from Barrie."Emotions can get in the way of negotiations because sellers inadvertently assign real value to their memories, which don't hold financial value for the buyer. We do our best to help our clients keep their emotions out of the equation," Douglas says.For more tips, visit orea.com and order your free books on home buying and selling. Or, check out Barb Sukkau's video on what a Realtor can do for you. About the Ontario Real Estate AssociationThe Ontario Real Estate Association represents 50,000 brokers and salespeople who are members of the 42 real estate boards throughout the province. OREA serves its REALTOR® members through a wide variety of professional publications, educational programs, advocacy, and other services.The real estate panel members provided input on common home buying and selling mistakes over email from November 8 to November 22. The panel consisted of nine OREA board spokespeople including representation from St. Catharines, Timmins, King City, Barrie, Oakville, Belle River, Mississauga, London and Ottawa.For further information:or to book an interview with Barbara Sukkau or a local OREA spokesperson, contact:Jennifer FoxThornley Fallis Communications

Toronto’s year-end surplus surges to $154 million

2012-01-06T09:59:00.000-05:00

A big factor in the rosier picture is the land transfer tax that Ford calls unfair and has vowed to eliminate. The tax raked in $96.5 million more than the expected $220.5 million. The City of Toronto’s 2011 surplus has surged to $154 million, according to new figures certain to put pressure on councillors to spare threatened services.Facing a revolt from cuts-shy allies, the administration of Mayor Rob Ford is already moving to halt two of the most contentious proposals for cuts.Mark Towhey, Ford’s policy chief, told reporters Thursday that a $400,000 cut to student nutrition programs and the closure of a dozen community centres in schools are being taken off the table.Numbers released Thursday, ahead of Monday’s committee vote on the proposed 2012 budget, predict the city will actually underspend its 2011 budget by $174 million, but $20 million is being used to fund staff buyouts.The Star quoted sources last week saying the surplus would be significantly more than the $139 million projected earlier.The $154 million will be carried over to 2012. In the past, part of the surplus was used to maintain or enhance city services while keeping a lid on property tax hikes.But Mayor Rob Ford is adamant the city must end its reliance on unpredictable revenue sources. His proposed budget would balance the books with service cuts, steep user-fee hikes and city staff layoffs.On Monday, the budget committee will vote on proposed cuts that include eliminating some homeless shelters, daycares, wading pools and programs for recreation, the arts and HIV prevention.Councillor Gord Perks noted that finance staff have recommended putting $115.5 million of the surplus into a reserve fund to finance capital projects, and $38.544 million into various other reserves.“That $38.544 million is enough to prevent TTC service cuts, closing swimming pools, community centres, recreation programs — all the cuts that would hit children the hardest,” Perks said.Budget committee members are split on whether to use surplus cash to rescue some of the services and programs.Councillor John Parker (Ward 26, Don Valley West) told the Star last week he favours aiming the windfall at depleted reserve funds, but wants to see the complete financial picture before making a final decision.After the budget committee votes Monday, the spending plan moves to Ford’s executive committee next Thursday and then to full council for what is expected to be a raucous session, starting Jan. 17.The final word on the 2011 surplus won’t be known until all the figures are in, months from now. That figure has traditionally been higher than the one furnished around year-end.David Rider Urban Affairs Bureau Chief The Toronto Star

A look inside the Flatiron

2012-01-05T09:48:00.001-05:00

Vanessa Lu
Business Reporter

It’s not your typical office space for rent.

Stained glass windows. A walk-in vault on every floor. Soaring 12-foot ceilings.

An old-fashioned Otis elevator where a staffer has to crank a wheel to get it to the right floor.

And the corner office is more a curved office.

PHOTOS: Inside the Flatiron building

Welcome to the Gooderham building, dating back to 1892. It is probably better known as triangular Flatiron building that sits where Front, Church and Wellington Sts. meet.

Clayton Smith, president of the Commercial Realty Group, bought the building in December from Woodcliffe Landmark Properties for $15.29 million.

Smith will be opening the building which is empty except for the basement pub to prospective tenants and brokers in January.

Formal offers are due in Feb. 8, but Smith expects the building with more than 16,000 square feet could work for small fund managers, law or accounting firms and architectural or design companies.

“People recognize this building,” he said. “You could jump in a cab. You don’t need an address. Everybody knows where it is.”

Smith, who will take up space on the first floor, estimates the office rents will start at $64 gross per square foot, which including operating costs, realty taxes and net rent.

That would be in line with Triple A buildings and Class A buildings in the financial district.

Toronto’s economic development office’s Peter Viducis says rates can vary substantially based on type of building, age, layout and location.

Viducis said most Triple A bank towers do not release their numbers, but ScotiaPlaza’s quoted rate is $68 gross per square foot. Other buildings in the financial core range from $34 gross per square foot to $55 gross per square foot.

Smith, who specializes in buying and restoring historic buildings, has revamped 83 Yonge St. and is now in the midst of gutting 2 Temperance St.

“The Flatiron is certainly an icon and flagship for my portfolio,” Smith said as he took the Star on the tour of the building, showing off the different floors. The top floor once housed a dentist’s office, and an old staircase wraps around the elevator.

Built for George Gooderham, then the president of the Bank of Toronto and owner of Gooderham and Worts distillery, the Flatiron building once housed an underground tunnel to the bank.

Not every office can boast of fireplaces and walk-in vaults, although some have been turned into file rooms or closets.

Now that’s a secure place to hang a coat.

2012-01-04T09:39:00.001-05:00

How important is customer service to you in all aspects of business? Real estate, retail etc. Are you willing to pay a little more for "Quality" service or is discount pricing your ultimate bottom line?

Felt disrespected at a big-box store? You're not alone...

Ellen Roseman
Personal Finance Columnist

Are you frustrated with the service you get at Canada’s retail chains?

You go into a big-box store to buy something, only to find:

-There is no one around to help you or answer questions in an informed way.

-There is no stock of the advertised specials you came in to buy.

-There are no price tags — and the shelf labels, if used, are misplaced.

-There’s a line of people waiting to pay and only a few of the cash stations are open.

Welcome to the lazy, crazy world of retailing, where you often feel treated with disrespect.

“Retailers don’t realize how much they’re losing to bad customer service,” says Shaun Belding, who runs a customer service consulting business in Ottawa. He hires people to pose as shoppers and record how they’re treated in retail outlets.

“You can measure how much business you bring in. But how do you measure how much business is walking away from you?”

In Belding’s view, the Canadian retail chain that offers the best service shouldn’t even be in business at all.

Its stores are small. Its selection is limited. But it’s thriving.

Home Hardware understands customer service, he says, even though Canadian Tire and Home Depot may have better choice and lower prices.

But Home Hardware has what bigger stores don’t provide — friendly people who know their stuff and spend time with you to make sure you’re satisfied.

Retail customer service is the focus of this week’s episode of Marketplace, the long-running consumer show on CBC TV, which launches a new season on Jan. 6 at 8 p.m.

The producers hired Leger Marketing to do an online survey of 1,025 adults who shopped at national store chains (excluding major grocery retailers.) They also hired Belding’s mystery shoppers to confirm the survey findings.

Marketplace will name the three worst retail chains for customer service in its one-hour premiere.

Wish I could tell you which stores made the list, but I’m sworn to silence. You can tune in Friday night or watch later at the show’s website, www.cbc.ca/marketplace.

I did an on-air interview with co-host Erica Johnson in the Star’s newsroom about three customer complaints featured on the show:

Chain store #1 lost a customer’s photo order for almost two months and brushed her off when she asked about it.

Chain store #2 refused a refund on a lawn mower right after the purchase, since the customer had used it once. He later got a refund at another outlet of the same chain.

Chain store #3 sold a coffee maker with signs of previous use (a dent, crack and even some coffee grounds). The customer couldn’t get her money back, since she’d missed the 60-day refund period. Only an exchange was allowed.

It’s hard to believe Marketplace starts its 39th season this year. Few shows have such staying power. The Stompin’ Tom Connors theme song is gone, but the dogged investigative work lives on.

Last year, it won a Gemini Award as the best news and information show, despite being downsized to just 12 episodes.

“So few programs go after the big guys and stick up for the little guys,” says Johnson, who was hired nine years ago after taking Chrysler to court without a lawyer and winning her case about peeling paint.

“This never gets old and people love it.”

Each episode of Marketplace revolves around a test. Next week’s show looks at the science behind a popular over-the-counter drug, Cold-FX.

The two hosts, including former sports reporter Tom Harrington, try to hold corporate and government officials accountable for any wrongs uncovered. But they’re often turned away when they show up for an interview

Only one of the retail chains named for poor service agreed to go on TV. The store that misplaced the photo order immediately offered the customer a $100 gift card for her troubles.

I’m glad CBC has kept this hard-hitting show alive. Let’s hope it survives the budget cuts and lives to celebrate its 40th year on TV.

Does a 34-storey building belong in the Distillery District?

2011-12-23T10:19:00.000-05:00

Patty Winsa
Urban Affairs Reporter

The proposal to transform a historic six-storey Gooderham and Worts building into a boutique hotel in the Distillery District isn’t what has city planners shaking their heads.

It’s the 27-storey condo above it.

Designed by famed Flatiron architect David Roberts Jr. and built in 1875, the red brick building on the northeast corner of Mill and Trinity Sts. is protected by a heritage designation and zoning that restricts any additions above its 16.5 metre height. The combined hotel-condo would be 34 storeys.

“There are going to be issues around the height, adding on and introducing a tall building at this location,” said Gregg Lintern, director of community planning for Toronto and East York district. “When you’re inside the Distillery and look north, the perspective you see is a heritage district and this would be at the top.”

But he says the city isn’t against a hotel. “The issue isn’t the use. It’s how it gets executed.”

A staff report outlining issues with the proposal will go to Toronto and East York Community Council in early January with a recommendation for a community meeting Jan. 23.

Mathew Rosenblatt and John Berman, two of four partners in Cityscape Development, which co-owns the Distillery with Dundee Realty, say they need the sale of condos to offset the costs of transforming the historic rack house into a boutique hotel. The storage house still has its original dirt floor and six storeys of timber racks that once held 22,000 barrels of aging whisky.

For years, Cityscape tried to find hotel investors, constraining proposals to meet the zoning requirements. About a year ago, they started putting together a new plan that included a six-storey hotel with 27 floors of condos above and an amenity floor in between.

“Everyone has come to the realization that it’s a very challenging project,” said Rosenblatt, noting it’s much more expensive to repurpose and restore a heritage structure than to build a new one.

Rosenblatt and Berman say the hotel is not only a strategic decision in a neighbourhood underserviced by hotels, but critical to the long-term vision of the Distillery.

“The historic precinct has been restored, but it needs life day and night. The hotel will add life and energy,” said Berman.

“This is important to the Distillery’s long-term success as well. Look at how the Gansevoort has reinvigorated (New York’s) Meatpacking neighbourhood,” he said, referring to the luxury boutique hotel which opened in 2004.

Gansevoort is also the hotelier most closely associated with the Distillery project. Berman said they have had extensive talks with the company, but “haven’t made any firm commitments.”

The hotel is one of Cityscape’s last developments in the Victorian-era Distillery District that dates back to 1832, the year author Charles Dickens turned 20. The company purchased the precinct in 2001 and has since restored 44 buildings.

Future plans call for a new five-storey structure at the site of the south parking lot, which will move underground.

Part of the problem is that development of the Mill St. property was never included in a master plan for the area created in the 1990s, before the current owners purchased it, said Lintern. In the meantime, a certain amount of highrise development has been allowed in exchange for the heritage conservation and revitalization undertaken by Cityscape.

Lintern acknowledged “it’s a difficult building to repurpose without gutting it or adding height. But is this the right way to do it? We need to have a community meeting about it.”

For his part, Rosenblatt argues that the hotel proposal should be considered on the basis of “planning and what’s better for the Distillery,” which attracts around 2 million visits a year.

About 200,000 people recently came through the Lowe’s Christmas market.

“It’s not Black Creek Pioneer Village,” said Rosenblatt. “This is where people live, work and visit. If these areas are encased and preserved, who will want to go and see them?”

A plan to build a 34 story hotel/condo in the Distillery district is drawing fire.

The most expensive tower condo in the 905

2011-12-21T09:35:00.002-05:00

Absolute penthouse absolutely pricey

December 20, 2011 18:12:00
Raveena Aulakh
Staff reporter

Until now, 60 Absolute Dr. in Mississauga was the address for the celebrated “Marilyn Monroe” building, one of a pair of curvy skyscrapers that wind their way into the clouds.

Now it is also the address for the most expensive tower condo in the 905.

A 56th-floor penthouse in the iconic tower, with 180-degree views of the lake and the city’s skyline, is up for sale for $3.2 million, a price that is generating a lot of buzz.

Ben Myers, editor and executive vice-president of Urbanation Inc., a GTA condominium market tracking and consulting firm, wasn’t surprised when he heard that.

Set at the corner of Hurontario St. and Burnhamthorpe Rd., the Absolute towers, as they’re properly known, are the daring outcome of an international design competition won by MAD Architects of Beijing. The first tower, quickly dubbed the Marilyn for its sinuous shape — which took complex computer calculations to build — proved so popular the builders decided to erect a second tower.

Together they constitute the most recognizable and talked-about project beyond Toronto’s borders, Myers pointed out. “It is one of the most desirable addresses.”

A luxury unit that sold for $2.7 million in Oakville in April is believed to hold the current condo price record in the 905 area code, Myers said. Before that, a Markham penthouse sold for $2.1 million in October 2010.

The price tag of $3.2 million may be a new high for Mississauga, but it’s still peanuts compared with Toronto. A 55th-floor penthouse atop the Four Seasons Hotel Private Residences in Toronto sold for $28 million in May — the highest price a Canadian condo has ever fetched. That unit was about 9,000 square feet, more than double the footage of the Absolute condo.

If the Absolute buildings had been in downtown Toronto, the penthouse would have been listed for at least $10 million, Myers said.

The Absolute project has been defining for Mississauga, changed its skyline, made it a talking point, said George Carras, president of RealNet Canada, an information resource for the building industry

That there is a penthouse of that calibre in Mississauga says a lot about the project, said Carras.

So what does $3.2 million get you in Mississauga?

For starters, a 180-degree view of the lake, four parking spots and a dedicated elevator. The 4,200-square-foot penthouse has three bedrooms, an open-concept living space and provision for a wine cellar and a gym. Everything from sound to music to heating/cooling, lights and security is automated.

The penthouse has attracted international interest, said Sam McDadi, a ReMax agent who is handling the transaction for the owner. Two serious potential buyers are in the running, one local, one international, McDadi said.

It’s about four months away from being finished.

The current owner, an Argentine businessman, bought the penthouse a few years ago when it was first put on the market. He had plans to move to Mississauga but they changed, McDadi said.

In case you are wondering, no, there is no open house.

The Dish: Is Swiss Chalet Festive Special naughty or nice?

2011-12-17T08:53:00.000-05:00

So the suggestion is...if you choose the festive special at "Swiss Chalet", opt for "white meat, no skin, no sauce, no mashed or fries, no stuffing, no cranberry, salad with light dressing and one truffle". My suggestion is "why bother?" :-). FYI...“In terms of calories, that is like eating six cheeseburgers from McDonalds. Or, seven Boston cream doughnuts from Tim Hortons.”

December 15, 2011 16:12:01
Megan Ogilvie
Health Reporter

DISH: The Festive Special

RESTAURANT: Swiss Chalet

LOCATION: Dozens of locations in the GTA

PRICE: $13.99

About the time Christmas carols start wafting through shopping malls, Swiss Chalet begins serving its Festive Special.

The quarter chicken dinner, served with a scoop of savoury stuffing, a dollop of cranberry sauce and a selection of chocolate truffles, is for manya long-standing tradition.

While we know the taste is holly jolly, few of us likely check whether the Festive Special is — nutrition-wise — naughty or nice.

The Dish decided to take on the task using the online nutrition calculator provided by Swiss Chalet. (Like Santa, we made a list, and checked it twice).

Unfortunately, that’s not as easy as it sounds.

Despite the meal’s popularity, Swiss Chalet does not provide nutrition information for its stuffing or cranberry sauce. Cara Operations Limited, the company that operates Swiss Chalet, did not provide a reason for this seasonal exception. After repeated requests, the company — through a public relations firm — did provide calorie content for the stuffing and cranberry sauce, but no other numbers.

The Festive Special in our photo is made up of a quarter chicken (white meat) with mashed potatoes and gravy, Chalet dipping sauce, a white roll with butter, stuffing, cranberry sauce and five Lindor chocolate truffles has 1,561 calories and at least 55 grams of fat and 2,310 mg of sodium.

For the average woman, that’s 75 per cent of her day’s calories, about 75 per cent of her daily fat allowance and just a tad more than the maximum recommended daily sodium allotment.

If you prefer dark meat and fries, the meal is definitely naughty. It has — and remember, this is without a drink or dessert — 1,846 calories. Registered dietitian Shannon Crocker says that is about what some women need for an entire day and about 75 per cent of the average man’s recommended daily intake.

“In terms of calories, that is like eating six cheeseburgers from McDonalds. Or, seven Boston cream doughnuts from Tim Hortons.”

The meal Crocker describes has at least 1,310 mg of sodium (remember, that’s not including the sodium in the stuffing or cranberry sauce), or about 90 per cent of the sodium our bodies need in a day. And, Crocker says, the meal’s 81 grams of fat (again, without the stuffing or cranberry sauce) is what you would find in 20 teaspoons of lard.

“This meal has double the fat some women should be eating in a whole day and about 100 per cent of that fat a man should get in a day,” she says.

“With these numbers, you’ve basically got room for a light breakfast and only this version of the Festive Special — in one day.”

The good news for festive special fanatics is there are ways to take the naughtiness out of the meal. Here are Crocker’s tips to making the Festive Special nice:

• Order the quarter chicken with white meat and no skin to save a few calories and between 5 and 10 grams of fat.

• Skip the stuffing to save the 376 calories. It’s also likely loaded with sodium.

• Ditch the fries to save 530 calories and 27 grams of fat. Even eating half will net substantial savings.

• The garden salad with fat-free raspberry vinaigrette is the most nutritious side.

• Swap the white roll for multi-grain to get a smidgen more nutrition out of the bread.

• Consider sending back the Chalet sauce. Yes, sacrilegious to some, but the little pot of sauce has 700 mg of sodium. If you love the Chalet sauce, be judicious.

• Eat just one truffle after your meal and save the rest for later. Consider them a mini advent calendar and eat one a day.

VERDICT: Depending on the choices you make, your Festive Special can be naughty or nice.

The Festive Special

The Festive Special

A quarter chicken (white meat) with mashed potatoes and gravy, Chalet dipping sauce, a white roll and butter, stuffing, cranberry sauce and 5 Lindor chocolate truffles

Note that Swiss Chalet did not provide complete nutrition information for this meal. The below numbers do not include the fat, sodium, carbohydrate or protein content for the stuffing or cranberry sauce.

CALORIES 1,561

FAT 55 grams

SODIUM 2,310 mg

PROTEIN 61 grams

CARBOHYDRATES 86 grams

Quarter chicken, white meat with skin

CALORIES 290

FAT 11 grams

SODIUM 330 mg

PROTEIN 48 grams

CARBOHYDRATES 0 grams

Mashed potatoes with gravy

CALORIES 195

FAT 5.5 grams

SODIUM 1,010 mg

PROTEIN 4 grams

CARBOHYDRATES 34 grams

Chalet dipping sauce

CALORIES 25

FAT 0.5 grams

SODIUM 700 mg

PROTEIN 0 grams

CARBOHYDRATES 5 grams

White roll with butter

CALORIES 180

FAT 8 grams

SODIUM 245 mg

PROTEIN 4 grams

CARBOHYDRATES 22 grams

Stuffing

CALORIES 376

Cranberry sauce

CALORIES 120

5 Lindor chocolate truffles

CALORIES 375

FAT 30 grams

SODIUM 25 mg

PROTEIN 5 grams

CARBOHYDRATES 25 grams

RECOMMENDED DAILY ALLOWANCE

Men/Women

Calories: 2,500/2,000

Fat: 60 to 105 grams/45 to 75 grams

Sodium: 1,500 to 2,300 mg

Carbohydrates: 281-325 grams

7 tax mistakes that can trigger an Audit

2011-12-15T08:40:00.000-05:00

Someone out there is watching you. And that someone, occupying a cubicle deep in the bowels of the Canada Revenue Agency, is just itching for an excuse to get out of the office and conduct an audit -- of you.
Here are seven mistakes that HR Block says are most likely to put you under the CRA microscope.

1. Forgotten T slip: You are the boss of your income and CRA wants to know every nickel you’ve earned -- even if you don’t have a T slip. CRA has one of those lightning fast matching programs that will zero in on you if an employer has filed one and you don’t report it. And if you fail to report income from a T-slip twice in two years the penalties could be substantial.

2. Hobby or business: Growing shiitake mushrooms in your basement rec room may be a whale of fun but creating income reducing losses from it could get you into trouble. If there is no reasonable expectation of a profit and years of losses, expect an auditor to come knocking at your door.

3. Incorrect support credit claims: Filling out line 220 is likely to give you a free pass to a CRA review because support payments for children are deductible only if your agreement was dated before May 1, 1997. And if you are supporting a spouse or common-law partner the agreement or court order must be filed with the CRA.

4. Claiming regularly reviewed credits: In a six-year period I had four CRA reviews -- two after claiming moving credits and two following tuition transfers from my two daughters. These claims are top of the CRA’s let’s-take-second-look list. Just make sure you keep your moving receipts and the signed T2202A form to back up the tuition transfer.

5. Out of the ordinary: If you claim 50 per cent of your home expenses and 95 per cent of your car expenses for

business use, chances are you will trigger an audit. Be reasonable, truthful and, when it comes to auto expenses,

keep a log book.

6. High life on low income: Few taxpayers have ever heard of a net worth assessment but the CRA can conduct one if they suspect your claimed itty bitty income is covering up under-the-table work. The CRA actually has a snitch line and if you have annoyed someone who knows your income doesn’t match your lifestyle you may find yourself with a lot of explaining to do.

7. The cheatin’ habit: If you’ve been a little less than honest in the past, and been caught, the CRA is more likely to circle back for a repeat review.

As always, honesty is the best policy on the tax front -- oh yes, and keep those receipts for six years, just in case.
Contact Alison Griffiths

9 tax-saving things to do NOW

2011-12-14T08:52:00.003-05:00

James Daw December 11, 2011
Time is running short to take advantage of tax breaks worth hundreds, even thousands, of dollars if claimed on your 2011 tax return.

So squeeze in some time to claim grants for your child’s college fund or disability savings plan, to sell stock market losers and recapture tax paid on earlier winners, or, if you’ve turned 71, to avoid a painful loss from you retirement savings.

Are you feeling generous? Then consider timing a donation to your favourite charity or political party before Dec. 31 to get a tax refund by spring.

Meanwhile, save your receipts if you recently modified a home to make it safer for a senior. Ontario’s Liberal government has announced a tax credit starting in 2012 that will apply to eligible expenditures after Sept. 30, 2011.

This advice will apply to one London homeowner who had ordered a new walk-in bathtub and had it installed last week, says a managing partner for Canada’s original supplier of such bathtubs.

She will be eligible to recover 15 per cent of the amount when she completes her 2012 tax return. The credit will be worth up to $1,500 on a $10,000 expenditure, assuming both Opposition parties don’t join to defeat the bill that Liberal Finance Minister Dwight Duncan announced in his recent economic statement.

Gerry Merz of Seabridge Bathing in Mississauga, says most clients are motivated by more than tax credits to modify their homes before an elderly resident slips, falls and injures themselves. “They want to maintain their independence,” says Merz.
Even so, the credit will be a smart use of tax dollars if it encourages more use of safety features where required, such as walk-in tubs, roll-in showers, safety bars and stair lifts, he argues. “It could cost thousands of dollars more than a tax credit to repair a broken hip.”

Canada Mortgage and Housing Corp. will provide forgivable loans to landlords and homeowners to help pay for renovations to benefit the disabled and elderly with low incomes. Unfortunately, says Merz, annual budgets for the program are limited.
Ontario’s new credit will not apply to expenses financed through such forgivable loans.

The cost of installing adequate safety features to a bathroom can range from $2,000 to $16,000, says Merz and his fellow managing partner Chris Candusso.

In case you ever wondered, a walk-in tub is designed to require no more hot water than an ordinary tub and, in the case of the Seabridge tubs, to fill and drain quickly, they note.

Meanwhile, homeowners who want government grants to help pay for energy-saving equipment and insulation in their homes will have to act quickly.

The federal ecoEnergy Retrofit grants are scheduled to expire at the end of March. Ontario will pay $150 toward the cost of a home energy audit, which is required to qualify for the federal grants.

Government grants are also available to help apprentices, to top up contributions to registered educations savings plans and registered disability savings plans and for small businesses.

Here are some other timely opportunities to consider:

Saving for retirement? If you make regular contributions to a retirement savings plan, you may apply each year for an adjustment to the amount of tax deducted from your pay cheques. Mail your request to the Taxpayer Services Division of Revenue Canada.

You’re turning 65? You will become eligible to claim a tax credit called the pension income amount ($2,000 federal and $1,259 Ontario) if you start to draw income from an annuity, registered retirement savings plan (RRSP) or registered retirement income fund (RRIF). You will also be eligible to split up to half of that income with a spouse with a lower tax rate. (Members of workplace pensions would qualify at a younger age.)

You turned 63 this year? Seek advice about cashing out your RRSPs before the year you turn 64 if your income will be low in retirement and you have little saved for retirement. The tax on RRSP withdrawals will, in Ontario, be only 20 to 24 per cent if your total taxable income would be less than $41,544 in 2011. But, some seniors who become eligible at 65 for the tax-free Guaranteed Income Supplement (GIS) to Old Age Security, could pay 20 per cent tax on RRSP withdrawals, plus lose 50 cents of GIS for each dollar drawn from an RRSP.

You turned 71? This month is your last chance to transfer your registered retirement savings plans (RRSP) to a RRIF without paying tax immediately instead of over time. You may first make a $2,000 over-contribution to RRSP, and delay RRIF withdrawals until late next year.

Your kid is how old? Ottawa will only contribute grants to a registered educations savings plan opened before your child turns 15. To be eligible for RESP grants for 2011, contributions must be made before the end of December.

Want a write-off? Buy and start using equipment you need for business late in your particular fiscal year because, generally, the tax deduction for capital cost allowance (CCA) will be limited to half the annual rate. Employees may only claim CCA on automobiles, aircraft and musical instruments.

Stock market losses? Dec. 23 will be the last day in 2011 to sell your losers (held outside of a registered savings plan) to recover capital gains tax paid on the sale of winners in the past three years.

Mutual fund shopping? Hold off until late December or the New Year to purchase funds outside a registered savings or income plan. Otherwise, you could be taxed on distributions of income earned before you buy.

Looking for a Christmas gift? What "Monopoly" can teach...

2011-12-12T09:02:00.002-05:00

December 11, 2011 18:12:00
Gordon Pape

Here are some lessons learned by the game:

• Sitting on cash does not win the game.

• You need to take some risks to make big profits.

• Risks need to be carefully thought out.

• If you overextend yourself by taking on too much debt through mortgages or spending too much cash you will be vulnerable if you are suddenly faced with a big bill.

• Trades need to benefit both sides or they are unlikely to be completed. There has to be a perceived win-win situation. But try to get a small edge and know what that is before you make a trade.

• The game is a combination of skill and luck. You can play well and still lose because the dice don’t roll your way. Don’t be discouraged by that. Life isn’t always fair.

The other day I played a game of Monopoly with two of my grandchildren and their mom. But it wasn’t the old Monopoly that I remembered. This is a sleek new 21st century version where properties cost millions of dollars and you use a debit/credit card for transactions instead of paper money.

My nine-year-old grandson acted as banker, inserting our cards into an electronic banking unit to record purchases, rent payments, passing Go bonuses, tax payments, and the like. We moved our tokens (based on each of the six continents) around a board which featured world cities like Montreal and Taipei in place of Boardwalk and Baltic Ave. Instead of utilities like Electric Company and Water Works, we bought Solar Energy and Wind Energy. The railroads have become Space, Cruise, Rail, and Air transportation centres.

I’ve always enjoyed Monopoly but I have come to realize in recent years what a valuable tool it and similar games can be in helping teach kids the basics of finance and investing. Thanks in part to the work done by the federal government’s Task Force on Financial Literacy, we’re becoming increasingly sensitized to the fact that many Canadians don’t understand the most basic principles of money management.

However, I don’t recall anything in the Task Force’s report about using board games to introduce children to the concepts of finance. To me, that’s a great place to start.

But it has to be a board game, where you’re all sitting around a table together. Electronic games won’t work — the kids are isolated and there is no opportunity for parental interaction.

For example, in the middle of our Monopoly game my grandson became excited by the fact he had more cash in his account than any of the other players. We paused for a few minutes while his mother explained that was because he had not invested in any houses for his properties. She and I reinforced that lesson as the game progressed: You have to take some risks if you hope to succeed.

In the end, my six-year-old granddaughter, who was playing on the same team as her mom, emerged as the winner. Together, they had gained control of all the cheap properties on the strip between Go and Jail, carefully invested their money in houses and hotels, and then waited until we landed on them and were dinged with huge rents.

There are several money and life lessons that can be taught through Monopoly (although don’t turn every game into a series of lectures, the idea is to have fun).

Although Monopoly is the classic financial game, there are others that are worth considering. Here are some suggestions.

Stock Ticker. This one has been around for a long time — I played it back in the 1940s when I was young. It hasn’t been updated since, as far as I can tell, and there is nothing sexy about the board or the tokens. But it’s a good way to learn about how the stock market works and introduces such concepts as dividends, share splits, and valuations. The game is best suited to children over age nine.

Trump. This is The Donald’s answer to Monopoly. Here, the idea is to acquire various glamorous properties, such as a casino, sports complex, hotel, tropical island, airline, and convention centre. The players can wheel and deal for millions of dollars, auction properties, and force sales. The potential learning features are similar to those of Monopoly. The currency features the face of — who else? — Donald Trump. It’s a fast-paced game and my children always enjoyed it. It’s appropriate for kids 10 and up. There is also a newer Trump game called The Apprentice which teaches young people how to be successful project managers, but I haven’t tried it yet.

The Settlers of Catan. This is a terrific game! It doesn’t involve money per se but it teaches youngsters about the productive use of land and resources and how to use the wealth generated to build roads and communities. The game was created in 1995 and has won numerous awards since then, but many people are not familiar with it. Take my advice and try it — my grandchildren have all loved it. There’s a demo at the game’s official website, www.catan.com.

At the Gates of Loyang. I just bought this one as a Christmas gift so I haven’t tried it out yet. The game is based on the economics of China 2,000 years ago. It involves growing and selling produce, bartering, and moving along the Path of Prosperity. Each step along the path costs money, but money is also needed for investments such as new seed so there are important decisions to make. It looks promising. Recommended for children 10 and older.

If you’re looking for some last-minute gift ideas, check out these games. They’re a great way to introduce kids to the fundamentals of money and finance — and you’ll have fun, too.

Gordon Pape is the publisher of the Internet Wealth Builder newsletter. His website is www.BuildingWealth.ca

Bank of Canada keeps interest rates unchanged

2011-12-07T09:00:00.002-05:00

Les Whittington
Ottawa Bureau

OTTAWA—Warning that the recession in Europe will be worse than expected, the Bank of Canada held interest rates steady in its latest rate-setting.

Governor Mark Carney kept the central bank’s influential overnight rate at 1 per cent, as he has done for the past year while waiting for the world economy to open the way for more pronounced growth here.

“Uncertainty around the global economic outlook has increased in the weeks” since the bank released its quarterly forecast in October, Carney’s statement said on Tuesday morning.

“Conditions in global financial markets have deteriorated as the sovereign debt crisis in Europe has deepened. Additional measures will be required to contain the European crisis.

“The recession in Europe is now expected to be more pronounced than the Bank had anticipated,” Carney added, attributing this to tighter credit conditions, government belt-tightening measures and reduced business and consumer borrowing on the continent.

The latest rate-setting means Canadians need not worry about higher interest charges for some months and also raises questions about the possibility of a further rate cut by Ottawa’s central bank if world business conditions continue to disappoint.

BMO Capital Markets economist Doug Porter said some observers had expected Carney to hint at a possible lowering of the key overnight rate in future but the bank gave no indication of its next move.

“While there was no suspense on the rate decision (actually, none), most analysts were expecting a slightly more dovish tilt from the Bank, after it effectively closed the door on possible rate hikes at the previous meeting in October,” Porter said. He added that he expects Carney to stand pat with the current rate through 2012.

The bank said recent economic data in the United States shows that growth there “has been slightly more robust than anticipated, largely as a result of continued vigour in consumer spending and business investment.”

“Nonetheless, household deleveraging, fiscal consolidation and negative spillover effects from the European crisis are all expected to weigh on U.S. growth,” Carney said.

“Growth in China and other emerging-market economies continues to be strong, although there are signs that it is moderating to a more sustainable pace in response to weaker external demand and the lagged effects of past policy tightening.”

The bank said in Canada “growth in the second half of this year is slightly stronger than the Bank projected in October.”

“Household expenditures have more momentum than had been expected and business investment remains solid,” Carney said but added that the weak world economy will dampen growth prospects in this country in the months ahead.

The next scheduled date for announcing the overnight rate target is Jan. 17, 2012.

Canadian home prices, sales better than expected in 2011

2011-12-06T09:44:00.002-05:00

The Canadian Press

MISSISSAUGA, ONT.—The Re/Max real-estate sales organization says Canada’s housing market has been ahead of expectations this year and growth will likely continue into 2012.

It says home prices are expected to be up in 23 of the 26 local markets that it tracks, with about 460,000 changing hands by the end of 2012.

Re/Max says it expects the upward trend will continue next year but at a more moderate pace.

It expects Calgary, Saskatoon and Halifax-Dartmouth will likely lead the country in unit sales in 2011, with the volume increasing by five per cent.

The Greater Toronto Area, St. John’s, N.L., Saint John, N.B., Moncton and Regina are expected also see more sales next year, about three per cent above 2011.

Consistent with other data, Re/Max says the Canadian housing market picked up steam as the year went on — helped by low interest rates and rising prices.

Many economists had expected the Bank of Canada would begin raising its key interest rate by the middle of 2012 but that didn’t happen.

The central bank has kept interest rates low to stimulate the economy by making it less costly for businesses and consumers to borrow for their purchases.

Royal Bank rakes in $1.6 billion in fourth quarter

2011-12-02T08:40:00.002-05:00

The Canadian Press

TORONTO—The Royal Bank says record earnings in Canadian banking and its insurance arm drove net income 16 per cent higher in the fourth quarter to $1.6 billion.

For the year, the country’s largest bank earned a record $6.7 billion — up $918 million or 16 per cent from the prior year.

The bank says earnings per share in the quarter were $1.07, up from 74 cents in the same quarter last year.

Analysts had expected earnings per share of 98 cents on revenue of $6.86 billion.

“RBC delivered strong earnings from continuing operations of over $1.6 billion in the fourth quarter and a record $6.7 billion this year,” said RBC president and CEO Gord Nixon.

He says the growth was driven primarily by record earnings in Canadian banking, wealth management and insurance and strong results in corporate and investment banking.

“This performance demonstrates the strength of our businesses and the quality of our earnings.”

In October, Luxembourg Finance Minister Luc Frieden told a news conference that Canada’s biggest bank was in talks to acquire the remaining stake of its joint venture with Dexia.

While Frieden said that the discussions were in a “very advanced stage” a Royal Bank representative declined to comment and an agreement has yet to materialize.

The company is equally owned by Royal Bank and Dexia and provides institutional investors a range of products and services _ from fund and pension administration to securities lending and shareholder services.

Royal Bank operates under the RBC Bank banner in the U.S., with more than 400 branches throughout North Carolina, South Carolina, Virginia, Georgia, Florida and Alabama.

The banks were formerly part of the Centura and other brands that were acquired by Royal starting a decade ago. However, the Canadian bank’s rapid expansion struck a major hurdle when the U.S. housing bubble burst and hit mortgage markets hard in southern U.S. states where the former Centura bank operated.

Royal Bank is the country’s largest bank by assets and market capitalization, and has 77,000 employees serving more than 18 million clients. The bank has operations across North America and 52 other countries.

They walked from house deal and were sued

2011-11-29T09:59:00.000-05:00

The paperwork that comes with many real estate deals says the terms of the sale are “conditional on lawyer approval.”
This clause confuses buyers, sellers and real estate agents and rightly so. What is the lawyer supposed to be approving? The price? Some particular part of the contract? Does the phrase give someone the right to walk away if the lawyer does not find anything really wrong with it?

The law says that every condition must be exercised in good faith. You can’t just say “I changed my mind” and walk away from a deal. But in practice, it is not so easy to understand, as we see in the following two cases.
On April 2, 2006 Flora and Mario Rizzutto received an offer for their Edmonton home from Hassan and Mona Rahall. It had a condition that it was “subject to seller’s lawyer’s approval.” The Rizzuttos had until April 10 to review this offer with their lawyer.

On April 7, the Rizzuttos told the buyers that they would accept their offer, but on April 10, the Rizzuto’s lawyer told the Rahalls the deal was off. Apparently the sellers were building a new house and they were worried it might not be finished at the time the sale on their old home was scheduled to close. This concern was never raised with the Rahalls.

The main issue was whether the Rizzuttos even asked their lawyer to approve the contract. The Rizzuttos claimed that they did and that they did not need to reveal what they discussed with their lawyer because these conversations were protected by lawyer-client privilege.

The Rahalls sued and a judge concluded the Rizzuttos did not act in good faith and demonstrated no reason why their lawyer might not approve of their contract. It was clearly not enough that the sellers suddenly changed their mind because of a concern that their new house might not be finished in time.
Here’s what the judge said: The term “subject to lawyer’s approval” is not an all-encompassing condition. The Rizzuttos did not act in good faith by cancelling the deal and could not use the late closure of their new house as an excuse if it was not
shared with the Rahalls.

A Manitoba case that went to court in 2010 had a different outcome. In this situation, Sheila and Robert Morrow agreed to sell some land and the agreement was “subject to seller lawyer approval.” They changed their minds and told their lawyer to say he did not approve the deal. It appeared the lawyer in fact found no problem with the agreement, but the Morrows viewed the condition as allowing them an escape hatch.

In this case the judge decided that the sellers could rely on the condition to get out of the deal. He noted that the facts demonstrated that the sellers had only one hour to make up their minds whether to accept a $3 million deal, received no professional representation prior to signing the agreement, were not trying to cancel the deal just to accept a higher offer and did take the time to meet with their lawyer. As such, he concluded that they could rely on the condition to get out of the deal.

The moral of the story is that buyers and sellers need to understand that all conditions must be exercised in good faith and that judges will look at the particular circumstances of every case before making any decision.
Facts matter.

For example, if your deal is conditional on financing, you have to at least apply for financing and get turned down or receive unacceptable terms before you can cancel your deal. If your deal is conditional on a home inspection, you have to at least have the home inspected and then not be satisfied with the results. It is the same with a lawyer review condition. You need to go to the lawyer and receive advice about all aspects of the contract and then make up your mind.

If you want to a limit lawyer’s advice to certain clauses in the agreement, then you will need to say so. If the clause is left too wide, then more latitude will be given to the lawyer.

The irony is that to properly draft a subject to lawyer clause, you need a lawyer. But if you had a lawyer advising you, you wouldn’t need the clause in the first place. Go figure. Lawyers always make things too complicated.

Brought to you by Mark Weisleder who is a lawyer, author and speaker to the real estate industry.

Man Builds Whole House From 24,000 Used Plastic Bottles

2011-11-28T11:46:00.002-05:00

Monday, November 28, 2011, by Sarah Firshein

Faced with the collapse of the Argentina economy a decade ago, Alfredo Santa Cruz turned trash he had hoped to sell for profit into a full-on, fully inhabitable house. Called La Casa Ecologica de Botellas, it's made of 24,000 interlocking plastic bottles, many filled with sand or water for fireproofing; inside, furnishings are also made from recycled finds.

Cruz estimates that 20,000 people have come and taken advantage of his free training sessions, making his project not only a really cool piece of green architecture but also something that combats homelessness around the community.

Low interest rates making home ownership slightly more affordable, RBC says

2011-11-25T08:38:00.001-05:00

The Canadian Press
OTTAWA—A new report finds low interest rates are keeping Canadian house prices within reach of homebuyers in many markets.

The Royal Bank’s quarterly report on housing trends, released early Friday, shows housing affordability improved slightly in the third quarter, after two consecutive quarters when things got worse.

RBC chief economist Craig Wright says a lower interest rate environment, which includes mortgage rates, is helping to reduce the cost of a home.

“Elevated uncertainty relating to the European sovereign-debt crisis and the downside risk for economic growth have contributed to keeping interest rates at low levels,” said Wright.

Those lower rates are helping to cushion the impact of rising home prices in many cities even as the economy slow and consumer confidence weakens.

The bank says affordability levels rose for all housing categories, although most improvements were less than one per cent.

“Housing affordability levels are quite good in most parts of Canada and will pose little threat to overall housing demand,” said Wright.

Among the most marked improvements in affordability were for two-storey homes and bungalows in Montreal, two-storey houses in Manitoba, and detached bungalows in Vancouver, Canada’s most expensive housing market.

Royal’s affordability measure for Vancouver fell slightly from the previous quarter, but remained above 90 per cent.

Toronto is next in the index at 52.1 per cent, Montreal is at 40.9, Ottawa 40.8, Calgary 37.6, and Edmonton 33.2.

“The Vancouver area market continues to be a major exception, with sky-high property values in upscale neighbourhoods making it both extremely unaffordable and the most at risk of a downward correction,” said Wright

A reading of 50 per cent means homeownership costs take up 50 per cent of a typical household’s monthly pre-tax income. The higher the rate, the higher the cost.

RBC forecasts that interest rates will remain exceptionally low in Canada until mid-2012 and rise gradually after that.

“We expect to see further slowing in the pace of home price increases next year, as housing demand levels out,” Wright said.

“These factors will set the stage for a period of relative stability in affordability trends in Canada.”

Canadians eye cheap Florida real estate

2011-11-23T09:01:00.001-05:00

“It’s great for the Florida economy that Canadians are able to pick up good deals, and that they are offering Floridians who can’t afford a home a place they can rent.”

Joe Waddell got the best cross-border bargain of his life last year — a three-bedroom, 1,700-square-foot condo for just under $120,000 (U.S.).

The Fort Myers property is just 15 minutes from southwest Florida’s gulf beaches, within an easy drive of Miami nightlife and, better yet, about two hours from Disney World.

But Waddell, 45, his wife and 11-year-old daughter won’t actually be using their sun-and-sand getaway for a few more years.

Instead, they are among the growing ranks of Canadian “endvestors” — investors who’ve been snapping up deeply discounted bargains south of the border with the intention of renting them out until they retire.

“These are people who get it,” says Wayne Levy of Florida Home Finders of Canada, which has helped thousands of would-be snowbirds like Waddell.

“They understand that if they don’t get a foot in the water now, there’s a good chance they won’t be able to afford a second home when they actually want it.

“These aren’t people looking at quick flips. They’re prepared to buy and hold.”

In fact, there are still so many deals to be had, Waddell has wondered about buying up more given that the decline in Florida home and condo prices appears to have leveled off. In many cases, properties are selling for less than it would cost to build them today.

The new condo he bought in the gated Palmetto Cove development has granite counter tops (even in the laundry room), two bathrooms, a gym and an outdoor pool. Similar units sold for $260,000 before the sub-prime mortgage chaos and the collapse of the U.S. housing market.

But just as importantly, Canadians are finding an exceptionally strong market for rental properties, fuelled by thousands of Floridians who lost their homes and can’t qualify for mortgages.

That combined with a strong dollar and low interest rates convinced Waddell that buying in Florida was not only a sound investment but a sure retirement plan — even if means having to file taxes with the dreaded Internal Revenue Service.

“We know we can’t use it for a month or two now,” says Waddell, a window and door salesman who lives in Oakville, “but it’s not costing us a thing right now. In fact, we’re making money.”

The family renting the condo is paying $1,050 a month and, even when maintenance fees are factored in, Waddell says he’s getting a 6 per cent return on investment, “much better than the stock market has been doing.”

Florida Home Finders holds regular seminars for Canadians wanting to buy in Florida — the last one for this year is Wednesday night at Edwards Gardens — and Levy estimates that 75 per cent of Canadians buying now plan to rent their properties out.

Toronto tax lawyer David Altro, who is also licensed in Florida and author of the book Owning U.S. Property the Canadian Way, warns that this isn’t a get-rich-quick scheme and can be quite costly if buyers don’t understand the tax implications on both sides of the border first.

He also recommends a cross-border trust for any properties over $100,000, which can add thousands to the upfront purchase price but save far more on estate and other taxes down the road.

Florida realtor Michelle Ross says many hard-hit Floridians now calling her to list their homes are urging her to market them specifically to Canadians.

The demand by endvestors remains so strong that, like many Florida realtors, she’s expanded her business to also offer tax experts and property management services so that distant owners don’t have to bother vetting tenants, collecting rent and dealing with maintenance issues from afar.

“It’s heartbreaking, it’s unfortunate, but this is a win-win situation for everybody,” says Ross who will be holding seminars on Florida Real Estate Nov. 30 at the Fairmont Royal York.

November 22, 2011 19:11:00
Susan Pigg
Business Reporter

Tips For Successful Real Estate Investing

2011-11-22T09:08:00.002-05:00

So you have decided to invest in real estate with hopes of renting out your units and paying down your mortgage. Here are some tips for a successful reale state investing from Moneyville:

1- “Research the area where you’d like to buy. Is it in decline or on the way up?” This includes facts such as prices in the area or whether big companies have a presence in the region (remember TheRedPin’s condo profile pages are enhanced with Investment Stats of areas as well as local amenities)

2- “Use a real estate agent who also is an area investor. Ask them to show you their properties and the rents.” It is indeed critical to surround yourself with professionals who have experience in the specific area you are about to invest in. Go with professionals who can show you their track record and can, without fear, speak about their past clients. Remember, if they are credible, they’ll share all there is.

3- “Once you own more than four rental units, find a reliable property manager.” The advice here is to allocate up to 10% of the monthly rent to a property manager. You need someone other than yourself to keep an eye on your properties.

4- “Do not be in a hurry to rent a vacant unit.” Why rush finding a tenant? sure it may feel good both in the pocket and otherwise to rent out the units as quick as possible, but in the long run a bad tenant can cost you so much more including the many months it takes for you to successfully evict them. The advice here is to ask for references from previous landlords and ask for a current pay stub.

5- “Be careful with basement apartments and homes rented to students.” Income’s great on some of these units but there are legalities involved. You have to make sure the building complies with the city’s fire code, and have all the required licenses to operate as they are.

6- “Buy and hold your property for the long term”. Real estate is not a get rich quick scheme. You often have to buy a property and hold it in order to have an income and pay your mortgage.

7- ”If you are investing with others, have a partnership agreement.” It’s great to get together with friends and invest in a property, but this is a business venture and you need to make sure you have a partnership agreement in place. What happens if one of you loses your job and can’t continue with the payments? those and much more go in to the agreement.

Brought to you by "Moneyville"

Thousands turn out to welcome Santa. Were you there? I was!

2011-11-21T09:46:00.000-05:00

It was Occupy Toronto of a festive sort, set to the sounds of carol-playing marching bands and sleigh bells, as thousands of Santa fans of all ages took over downtown streets Sunday for the 107th Santa Claus Parade.

Crowds up to eight deep lined Bloor St. W. as the first bands and floats pulled out of Christie Pits at 12:30 p.m. to make the slow march to University Ave. and south to Wellington St. along the 6-kilometre route.

Thin sunshine and a warm high of 12C made the day perfect for parade watchers, some of whom staked out spots near as the start as early as 8 a.m.

This is the sixth time Richmond Hill business analyst V.J. Kulkarni, his wife and two daughters have volunteered at the parade and this year he lucked out with a superstar costume: a beloved upside-down clown. The chimp-themed clowns that can magically walk on their hands are a crowd favourite.

“I was a penguin before,” he said as he posed on one “hand” for a photo. “I don’t get to do this at the office.”

Wyatt Steven, age two, insisted on wearing his own Santa costume to watch the parade, said mom, Rose Cavel. “He is overwhelmed,” she said of her star-struck son, who stared open-mouthed as a colourful float full of huge, enterprising birdhouse-building birds rolled by.

There were 60 floats in the parade this year, with 22 bands rounding out the event. Hundreds of volunteers dressed as everything from carrot-toting blue bunnies, to fruits and veggies, snowflake princesses and giant sunflowers walked the route. Mounties in red serge and skipping clowns added flashes of brilliant colour.

It’s Canada’s largest parade and took close to four hours to complete its route.

“It’s the best, the crème de la crème,” said Sonia Plamondon of Quebec City of her second time at the Santa Claus parade. A volunteer with Les Titans de Quebec high school marching band, she said the 45 students were going to sleep on a church basement floor Sunday night before taking the bus back home. The band played seasonal songs and drew applause along the route as it broke into precision drills to a funky drum beat led by its flag team.

Floats featured colourful dinosaurs, popular toys like Lego, and movie characters including the cast of The Muppets and the singing, dancing penguins from Happy Feet 2. New this year was the addition of Mrs. Claus, who waved enthusiastically from her float, which rolled along the streets just before the main attraction, Santa.

Early birds set up ladders and makeshift scaffolds along sidewalks, along with lawn chairs and blankets. The crowd also got into the dress-up spirit, with kids and adults wearing antlers, elf ears, Santa hats and flashing red noses. The parade followed a new route this year, heading east on Bloor St. from Christie Pits, south on University Ave. and west on Wellington St. to St. Lawrence Market.

BBy the time the parade made its way to the final stretch, clown makeup was starting to smear and kids perched on floats were often too wiped to wave. A drop in temperature led to some cranky kids along the route and dads with obviously aching backs from holding little ones on their shoulders for two hours or more, but everybody perked up as soon as the sound of Santa’s sleigh and accompanying marching band could be heard.

With an honour guard of Mounties on high-stepping horses leading the way, Santa shouted “Ho-ho-ho!” to cheering kids from his sleigh, which was pulled by eight prancing reindeer. And the kids, anxious to ensure a spot on the nice list, enthusiastically shouted back.

The Toronto Star. November 20, 2011 23:11:00
Linda Barnard
Staff Reporter

Avoid the Email Trap

2011-11-16T09:36:00.002-05:00

You know those days. You greet the day- and your desk with lofty aspirations for productivity. And as the hours whittle down, somehow the check marks on your to-do list become conspicuously absent.

Email, a tool meant to facilitate, quickly becomes your adversary, as it represents a material threat to your productivity if not brought under control. Here are some ways you can avoid the email trap.
Block time

It’s logical really. The best way to neutralize a threat is to contain it. The same can be said with email. Block off time everyday to deal with emails- and be ruthless in guarding it. Be sure to not set this particular block of time during a part of the day that you know you are most productive for other tasks- like phone calls or prospecting, for instance. The health of your bottom line relies on it.

Help yourself stick to this plan by letting people know when your email blocks are. This accomplishes a couple of things: it helps to define and communicate expectations, as well as holds you to your commitment to keep a set time aside for a set task.

Some people even include their times for “email blocks” as an auto-response.

Shut off arrival sounds

As email will show up throughout your day, the constant temptation will be there to attend to it. At the very least, you may be curious to see who is contacting you, and what glorious opportunity lies in your inbox.

As you know, chances are, there is very little in there that can’t wait until the allotted time; avoid the temptation to constantly be checking by removing arrival notifications.

Filters are your friends.

Think of your inbox like your desk. You can’t possibly sit down to work well, if it is covered in items not helpful to the task at hand.

Use your spam filter to cut down on the debris filing into your inbox. The less emails you need to read out of the gate, means more time in your pocket.
You can also use other filters with key words, or senders to file into folders. This is a good way of staying on top of things, so that when you do sit down to work, you can get right to it.

Attack with a Strategy

Like all other aspects of your business, much of your success hinges on successful identification and implementation of strategy.

When you do sit down to work through your emails, have a specific plan in mind on how to action them. Try to adopt a “one touch” method.
Where reasonably possible, say if the task in the email can be done in five minutes or less, do it immediately, and delete it.

For more involved tasks, have folders and a set time to action them in. Make sure to prioritize those requests. It goes without saying, in the relationship business, client requests trump others.

Set Outlook to Calendar Screen

First and foremost, email is meant to be a tool to help you keep top priorities on top.

Consider setting Outlook to open with your calendar, rather than the inbox, to reinforce the sliver of time that email should have in your whole day. This also helps outline and plan for priorities on a daily basis, and removes the temptation to dive right into the inbox at every glance.

They say time flies when you are having fun. The real truth-is time flies- right out of your hands- when you do not control how it is spent. This holds particularly true when it comes to email.

Brought to you by Property Wire

Even in shaky times, real estate can offer a solid investment foundation

2011-11-15T08:46:00.002-05:00

Real estate is for optimists, if the recent gains among real estate investment trusts is any indication.

As a group, U.S. REITs have risen 170 per cent from their lows in early 2009. Canadian REITs have done almost as well, rising more than 120 per cent. And neither of those returns factors in dividend payments.

The gains come as the economic recovery from the last financial crisis remains on shaky ground. U.S. unemployment is 9 per cent, consumer confidence is weak, the housing market is still a mess and the Federal Reserve has been busily downgrading expectations for U.S. economic growth over the next two years.

This is hardly the sort of backdrop you might expect for surging REITs. Yet, just as developers build today in the hopes of a better tomorrow, real estate investments also reflect better times ahead.
This makes them a relatively risky bet. However, we’re not talking about sunshine, lollypops and rainbows here: REITs aren’t exactly priced for perfection, and could do okay even if the recovery continues to plod along.

For one thing, most REITs remain well off their 2007 highs, despite their strong gains over the past 2½ years. Canadian REITs, as represented by the S&P/TSX REIT index, are still down 18 per cent from that high. U.S. REITS, as represented by the MSCI REIT index, are off 36 per cent.

The implication here is that prices have not factored in a full recovery, giving some breathing room for a few economic stumbles.
For another, REITs are in many ways ideal investments for sitting and waiting for better times to come. Their big attraction is the cash payouts they deliver, in the form of monthly or quarterly dividends.

Not all REITs came through the last financial crisis with their payouts intact, of course, but as a group they held up quite well.
That’s why investing in an exchange-traded fund that holds a basket of REITs might be the best approach for many investors because it spreads the risk among many names. If the economic recovery drifts, the dividends will keep flowing.

And finally, dividend yields for REITs are well above government bond yields right now, meaning that REIT investors are being compensated for taking on some risk.

This wasn’t always the case. About six months ago, the average yield on U.S. REITs was about equal to the yield on the 10-year U.S. Treasury bond. That’s rare, and it often signals trouble ahead. Sure enough, U.S. REITs fell about 20 per cent soon after.
Now U.S. REITs yield about 3.7 per cent, which is well above the 2-per-cent bond yield. Similarly, Canadian REITs yield about 5.6 per cent, which is well above the yield on the 10-year Government of Canada bond.

There is a lot of optimism built into REITs right now. But short of another bad economic downturn, they shouldn’t disappoint.

DAVID BERMAN
Last updated Friday, Nov. 11, 2011 7:16PM EST
The Globe and Mail

Can you sell your home by email?

2011-11-14T09:14:00.002-05:00

Over the course of three days last October, Marc Girouard and Kelty Druet corresponded by email about the sale of Druet’s condo in downtown Moncton, N.B.

After a series of emails and an offer and counter offer, Druet agreed to sell unit 203 at 850 Main St. for $155,000, or so Girouard thought. But Druet changed her mind and the case landed up in court.

There a judge decided that even though a formal agreement of purchase and sale was not ever signed, a deal was a deal. Since Ontario has similar laws to those relied on in New Brunswick, the same result could happen in Ontario.

Here is what happened:

October 22, 2010: Girouard was looking on Kijiji for a condo to rent and found the unit listed there. He spoke to the tenant who passed him on to Druet. They spoke and discussed the possibility of him buying the condo and agreed to carry on their discussions through email.

October 24, 10:56 a.m. Druet sends Girouard this email: “After giving the idea of selling my condo some more thought, I have come to a decision. I would sell it to you for $160,000, conditional that you take over the mortgage and pay the legal fees associated with the purchase. (I estimate at $800.) Please let me know your decision.

October 24, 12:16 p.m. Girouard replies: “Thank you Kelty. I will meet you half way @155,000.00 and pay legal fees and assume existing mortgage.”

October 25, 2:57 p.m. Druet: “Sorry for the late reply — I’ve been thinking about it. I will accept your offer. How would you like this to go?”

October 25, at 3:33 p.m. Girouard: “Great, are you in Moncton any time soon? I can have a sales and purchase agreement drafted for your review. Is a November 15 closing acceptable so not interfere with your tenants, that I am told are vacating on that date? Is the mortgage holder a Moncton or Halifax bank?”

October 25, 6:37 p.m. Druet: My partner has been in Peru the last few days and I just got to speak with him. He was not agreeing with the price so I am sorry but I cannot sell to you.

Girouard replied he had a deal and would not release Druet from the contract. The case went to court in Moncton and the decision was given on August 9, 2011.

The judge decided that if these emails were actually written and signed, they would constitute a binding agreement. He noted that the Internet and emails have become a way of life for business and individuals. Even though such things as the closing date had not been settled, he still found that there was a basis for a legally binding agreement.

In Ontario, the Electronic Commerce Act, which governs the electronic signing of documents, is confusing when it comes to the legality of signing agreements for the sale of land, so it is possible that in Ontario the result of this case may have been different. I am not so sure.

The lesson here is clear. Be very careful what you write in an email regarding any sale or purchase of a home. Also, if you are sending any notice in a real estate deal via email, always ask for confirmation of receipt from the other side. You may not find out that the email has hit someone’s spam file until you have missed an important time deadline.

Remember to always have the advice of an experienced real estate agent or lawyer before doing anything by yourself. In this case, the seller did not want to sell their condo but had to do so, based on this very simple exchange of emails. Do not let this happen to you.

Brought to you by Mark Weisleder who is a lawyer, author and speaker to the real estate industry.

National News Housing Starts Rose More Than Expected In November, CMHC

2011-11-11T09:49:00.003-05:00

According to CMHC, housing starts for November came in higher than expected at 187,200- driven in part by multiple-unit construction in Ontario.

This number is up significantly from a seasonally adjusted annual rate of 167,800 units in October month, and beat November forecasts of 170,000 units.

According to CMHC, urban starts rose 14.6% to 163,100 units in November. Multiple units were up 20.9% to 101,800 units, while single urban starts increased 5.5% to 61,300 units.

"Housing starts moved higher in November primarily due to a strong increase in urban multiple starts in Ontario," said Bob Dugan, Chief Economist at CMHC's Market Analysis Centre. "The increase in housing starts in Ontario in November was more than enough to offset declines in all other regions of the country.”

Contributing to this significant increase, were starts reported for many major apartment projects, based in and around the Toronto area. Forecasts for 2011, housing starts will gradually mirror demographic demand, which is currently estimated at about 175,000 units per year.
November urban multiple starts increased by 20.9 % in November to 101,800 units, while single urban starts moved up by 5.5 % to 61,300 units. Multiple units starts increased by 29,900 units from October to November in Ontario, while Prairie region activity remained stable, and decreased in other regions.

November's seasonally adjusted annual rate of urban starts saw a rise of 82.8 % in Ontario. Regionally, in other centres, urban starts declined by 24 % in Atlantic Canada, by 21.3 % in British Columbia, by 15.2 % in Québec and by 1.5 % in the Prairie Region.
Estimation for Rural starts were thought to be 24,100 units in November, taking into account a seasonally adjusted annual rate, from 25,500 a month earlier.

Doug Jones, Property Wire

National News Will We See The End of Land Transfer Tax in Toronto?

2011-11-10T08:54:00.002-05:00

Toronto builders and realtors are waiting to see if Rob Ford keeps one of his key campaign promises when he’s sworn in as mayor – to repeal the Land Transfer Tax within the first year.

But exactly how long it will take remains a hot topic.

Ford told the Toronto Real Estate Board’s annual general meeting earlier this month the decision may have to wait until after next year’s provincial election.

“You have to work with the provincial government to eliminate the land transfer tax and the provincial government will be shut down starting probably in April or May,” he told CityNews after the meeting. “So anything that has to be filtered through the provincial government might be delayed.”

TREB spokesperson Von Palmer said late Thursday night Toronto doesn’t necessarily have to filter it through the provincial government. It can impose the tax – and remove it – without any provincial amendments under the City of Toronto Act. But he confirmed Ford could be planning to ask the province to amend the actual act itself, thereby preventing a future mayor from ever re-introducing the Land Transfer Tax.

Ford could also make the decision to repeal the tax retroactive. “This could be a helpful move especially if there is repeal of the tax to minimize any impact on the market,” Palmer explained, in an email to PropertyWire.ca.

Political observers say Ontario Premier Dalton McGuinty may also be more motivated to help remove the tax after this week’s municipal elections. Voters seemed to endorse change in Ford’s overwhelming victory, and Liberals fear that could spill over into next year’s provincial election.

The longer the decision takes, the more money adds up in city bank accounts. Officials confirmed the Land Transfer Tax brought in $183 million for Toronto in 2009.

The tax adds about $3,725 to the cost of a $400,000 home in Toronto.

What are your feelings about Rob Ford setting his sights on the land transfer tax - was it an empty election promise or will this change be coming before you know it?

Brought to you by "Property Wire"

Did you know you can invest in Real Estate with RRSP's?

2011-11-09T09:36:00.000-05:00

We all like real estate .. its a solid and secure investment .. yet most Canadians do NOT have any real estate within their RRSPs. Its time to diversify and secure your RRSP returns with real estate.
Check out this short 1.5 minute video ...

http://www.youtube.com/watch?v=rAhmGodu-Uk

* Existing RRSP can be transferred into this investment ... funds can be CASH, TFSA, LIRA, RIF or RESP
* Funds are fully secured as a registered lien against the property in the investor's name as collateral
* Open to all investors with no income and no asset qualifications
* Earn a potential 36% over 3 years
* Prime Canadian properties with fully insured and bonded developers with a proven track record of success

Perry Wong, the Toronto Star

5 investing rules of thumb to avoid‏

2011-11-08T14:48:00.000-05:00

It’s a mark of how complicated life has become that we eagerly grasp at rules of thumb to help us make everyday decisions. However, rules of thumb — especially financial ones — tend to be blanket recommendations that fail to take into account the vast differences in our lives. Trying to follow them can result in frustration, a sense of failure and, in the worst cases, disaster. Here are five of my favourite misleading financial rules of thumb.

1. Buy and hold is the best approach. B&H is one of the basic axioms of the investment industry. On one hand, it steers people away from jumping in and out of investments with every stock market hiccup. On the other hand, if a stock or mutual fund is a dog, it will keep barking no matter how long you hold it. Far better to let the dog out and redirect your money into better quality stocks or mutual funds. The mutual fund industry loves B & H because it encourages investors to hang on, whether they have good investments or bad. All the while management fees (MERs) are collected regardless of the quality of the fund. Also, B&H keeps most people from carefully scrutinizing the quality of their investments — they just keep buying them hoping they’ve been steered into the right ones. A better rule would be: Buy, hold and monitor. Evaluate your holdings annually. If you notice long-term yipping and howling, show that pooch the door.

2. If you’re young, you can afford to take risks. Those who start investing early can be conservative and still reach their goals. That is, of course, if you religiously reinvest dividends and interest income, a practice that allows the miracle of compounding to increase your rate of return over time. Morningstar’s Andex Charts back this up with a comparison of a risky sample portfolio (80 per cent in equities) with a conservative sample portfolio (80 per cent in GICs and bonds). The safer one actually slightly outperforms the riskier one over 30 years — 10.8 per cent on an annual average basis versus 10.2 per cent. And the conservative portfolio has far less chance of loss at any given time than the riskier one. Why would a young person want to take on more risk if there is no reward down the road? Here’s a better rule: If you’re a young investor, you don’t need to take risks.

3. Invest your age This is a favourite rule in the financial planning field. When you subtract your age from 100 that is how much you should have invested in stocks or equity mutual funds. So a 60-year-old should have 40 per cent in the stock market and 60 per cent in fixed income (cash and bonds). A 30-year-old should have 70 per cent in the stock market and 30 in fixed income. However, this guideline doesn’t take into account a person’s situation or temperament. Moshe Milevsky, associate professor of finance at York University, once told me he doesn’t invest in bonds because “I am a bond.” He was describing his situation. His defined benefit pension plan effectively functions as a bond giving him a guaranteed income on retirement. In Milevsky’s case, “invest your age” is meaningless. In contrast, a 25-year-old who has absolutely no stomach for risk might be well served by investing mostly in GICs and bonds. A more appropriate rule of thumb would be: Invest according to your situation and temperament.

4. Retirement income should equal 70 to 80 per cent of working income Author Margie Taylor’s recently published and hilarious book, 60 is the new 20: A boomer’s guide to aging with grace, dignity and what’s left of your self-respect, makes it clear that there is no one-size-fits-all for the boomer generation. Those who are either at or near retirement are far from a homogeneous group and vast differences demand more individual specific planning. Someone in a small town with inexpensive housing might be fine with 50 per cent of working income. But if you live in a high tax urban neighbourhood with three large dogs, a boat and a cottage, 85 per cent could be more appropriate. A better guide would be this: Target your retirement income according to your health, energy, goals, hobbies and where you expect to be living upon retirement.

5. Save 10 per cent of your gross income Yes, it has a nice ring to it, but it could be unrealistic for one-income families. On the other hand, a high-earning, single person with no car and low housing costs could certainly save far more. Also, there may be times in your life when paying down a mortgage, student loan and other debt makes more sense than setting aside savings in a Tax Free Savings Account or RRSP. A more reasonable rule of thumb might be: Aim to save 10 per cent of gross income but adjust it according to your stage of life. I’m not suggesting all financial guidelines should be tossed out the window. Consider them, but take into account the realities of your own situation.

Alison Griffiths

17 things to know about closing your house deal‏

2011-11-08T14:45:00.000-05:00

Closing day in a house deal is a milestone for both the seller and the buyer. To make it go smoothly, it is very important that both buyer and the seller are properly prepared. Here’s a checklist if you are selling:

1. Make sure you have given your lawyer a copy of any deed, mortgage, survey and current property tax bills. You should have received these from your lawyer when you bought the house.

2. Do not cancel your household insurance policy until you have heard that the deal has closed. Also, if you are moving out more than 30 days before closing, you need to notify your insurer that the home will be vacant. This way, you will still be covered if anything happens in the home up to the closing date.

3. You will visit your lawyer a few days before closing to sign the papers. Make sure you give one set of keys to give to your lawyer, which will be passed on to buyer’s lawyer at closing.

4. If you are a non-resident of Canada, you must obtain a certificate from Canada Revenue Agency regarding any income tax payable, or else the buyer will be holding back 25 per cent of the sale price until you do get it. Non-resident means you have not lived in Canada at least 183 total days in the past year before the closing day. This can take up to two months so let your lawyer know right away so that the proper application can be filed.

5. Have all your utility meters read on the day of closing. That way you will only be responsible for your share of utilities. Also notify your cable and telephone provider so that your service can be disconnected. If your house is heated with an oil tank, you need to make arrangements to fill the tank on the closing day.

6. Cancel any pre-authorized or postdated cheques at your bank, to make sure you don’t pay for anything after closing. 7. As you have to be out of the property when it closes, arrange to move out before 5 p.m. Here’s a checklist if you are buying:

1. Schedule your pre-closing visit shortly before closing, so that you can conduct your final inspection to make sure that the home is in the same condition as when you signed the offer.

2. Arrange moving time late in the afternoon, as that is likely when the seller will have moved out. If it is a condominium, and you need use of the elevator, contact the management company well in advance of closing to reserve the elevator.

3. Fire insurance must be arranged for the full replacement cost of the home. If it is a condominium, you need a policy to protect your contents and liability. Do not leave this to the last minute.

4. If you are arranging a mortgage for less than 20 per cent down, the bank will be deducting certain costs, such as mortgage insurance, appraisal fees and HST. Find out early what all these deductions will be, as you will have to come up with any difference needed to close your deal. Make sure you have provided the lender with all required proof of income, or down payment well in advance so that it does not delay the money.

5. Your lawyer will be receiving a statement of adjustments just before closing. This could add to your closing costs if the seller has prepaid some expenses, especially property taxes. Find out exactly what this is as it can add up to 0.5 per cent more to what you may owe. 6. You will need to deliver, at least 2 days before closing, the balance of money needed for your lawyer to close the deal, by certified cheque, money order or bank draft.

7. Let the lawyer know how you will be taking title to the property. If you take as joint tenants and one of you passes away, the other party immediately becomes the owner. If you take as tenants in common, you can transfer your interest to a beneficiary under your will.

8. Tell your lawyer to order title insurance for you. This will protect your property against title defects, survey issues, work orders and frauds while you own the property.

9. Arrange for your cable and telephone providers to install service on the day of closing or immediately after closing.

10. Contact the utility companies, to make sure they read the meters on closing, so that you are only responsible for charges after you move in.Being prepared in advance will ease the stress of closing day and hopefully begin the creation of happy memories for you and your family.

Mark Weisleder columns

Finding alternatives to costly Durham family court fights

2011-11-08T14:42:00.002-05:00

Mediation helps couples identify, settle issues

Finding alternatives to costly Durham family court fights. WHITBY -- Julie Gill runs Families First Mediation and provides divorce mediation services to help couples identify and settle issues in order to avoid costly court battles. September 22, 2011. Ron Pietroniro / Metroland WHITBY -- Divorce can be a lot of things. But it doesn't have to be a legal nightmare.

"People need to know there are more options out there than a drawn-out court process for every issue," said Julie Gill, of Families First Mediation in Whitby. "They need somebody to help them see they have the ability to do this.

"You've got to be reasonable. You've got to treat this like a professional transaction."

Participants in the family law system -- particularly lawyers and their clients -- are becoming aware of a need to avoid costly litigation in divorces, Ms. Gill said. So more are opting to enlist the help of neutral, third-party mediators who help to identify and settle issues before they become points of contention that have to be sorted out by a judge.

"Family lawyers have had a paradigm shift in the last couple of years," Ms. Gill said. "There's no way 100 per cent of clients need to end up in court."

That view is shared by Warren Winkler, Chief Justice of the Ontario Court of Appeal, who addressed family court issues in a speech covered last week by the Toronto Star.

"Our current family law system is too slow, too complex, too adversarial and above all, too costly," Chief Justice Winkler was quoted as saying.

Many couples are now choosing to pursue a "collaborative" process of divorce settlement, even if lawyers are involved. That makes sense, said Ms. Gill: Obtaining a legal, uncontested divorce with the assistance of a lawyer is likely to cost about $4,000. If there's litigation involved, the couple will each have to pay to retain counsel. And once the court process starts, the meter begins running.

"If court is involved at all, you're looking at $10,000 each," Ms. Gill said. "I have friends who have spent $75,000."

A mediator will encourage divorcing couples to set aside their emotions and approach their issues rationally, Ms. Gill said. With a little assistance and cooperation, it's possible to arrive at a fair and balanced settlement without destroying the family and wasting money in court.

"For me, it's finding the best fit for clients," she said. "It's not a cookie-cutter service.

"Anything that's agreed to by the families, there's so much more chance of success."

Call Ms. Gill at 905-427-0100.

Six ways to make sure you buy the right house‏

2011-11-08T14:40:00.000-05:00

Here’s an updated list of six ways to prepare yourself:

1. Sell or buy first?We are still in a seller’s market in the GTA, with the number of buyers exceeding the number of available homes. In this type of market, you should buy your new home first and then sell your existing home. If you sell first, you may find yourself running out of time, with no home to move into, as the closing date nears. This leads to panic buying.In a buyer’s market, sell your home first as you won’t have as much trouble finding a new one.

2. Research, research, researchCheck police websites for neighbourhood crime statistics. Ask at City Hall if new developments are planned or whether a new large employer is relocating to the area. Jobs mean demand.Walk any neighbourhood you are interested in and talk to people. You will learn the demographics of the area and its facilities. What schools are in the area and is there a waiting list to get in? Are there activities nearby for children, including parks, libraries and community centres? You also get a sense of the friendliness of the community and whether there are surprises that no one is going to advertise — vandalism, former grow houses, or the neighbour from hell.

3. Find the right agentDo not go into an open house alone, thinking you can save commission. The agent is working for the seller and their job is to get the seller the most money possible. While focusing on saving a few dollars negotiating commission, you will invariably give away important information about yourself, which will hurt you later.Start by asking family and friends for a buyer agent referral. Then study the agent’s own website. Do they offer information that will assist you with your search? Do they have a team of professionals they can share with you? When you interview them, ask them about their knowledge of the area; in particular, is it known for sewage backups, termites, flooding or mould. Ask for their own success rate when working with buyers, especially in bidding wars, and then call those buyers yourself.

4. How much can you afford?You should never live just to pay your mortgage, or else the rest of your life will suffer. Meet with a mortgage broker in advance to determine how much you can safely borrow, based on your income and family needs. Buyers should also realize the lender will do an appraisal and if the lender believes you paid more than the house is worth, they will not give you the full amount of the loan you expect. So, be very careful about stretching yourself to the limit when you make an offer.

5. Choose a home inspector carefullyThe home inspection is becoming even more important, as it is one of the only ways for a buyer to check against unwanted surprises after closing.Ask for references and call these references yourself, especially the ones who bought older homes, where problems are more likely to occur later. There are now additional inspections that test specifically for mould or termites. There are video cameras that can tell you the condition of your sewage system and scanners that can look behind walls. If it is an older home, it is worth this extra investment.Remember, most inspection firms have a limitation of liability clause, which states that if they miss something that costs you money, they are not responsible. Ask the company if they have ever been sued by a buyer.

6. Title insurance is a mustTitle insurance can be arranged through your lawyer. You will be protected against unpaid taxes or water bills by the seller, as well as problems that are not known at closing. This includes problems where part of the home or swimming pool is in fact on your neighbour’s property.However, it is a mistake to believe title insurance will protect you against everything. For example, it won’t compensate you if you thought your lot was 50 feet and a later survey showed it was only 48 feet. That is why you should always ask for an up-to-date survey on the property.

By Mark Weisleder

Buyer unaware of Orangeville home’s grim history, abandons sale‏

2011-11-08T14:35:00.000-05:00

Soon after moving into their seemingly idyllic new home, a family learns of a brutal crime committed against former residents of the dwelling . . .

That’s the one-sentence synopsis of Dream House, a new Hollywood thriller —opening Friday — starring Daniel Craig and Rachel Weisz. And it was almost a reality for Samuel Jacques, a 30-year-old Bolton resident who was all set to buy his family’s first home until he saw the two-storey townhouse flash across his television screen last month.

Jacques was watching the evening news on the anniversary of the unsolved murder of Sonia Varaschin, the 42-year-old Orangeville nurse who was reported missing Aug. 30, 2010 and found dead six days later.

Without knowing anything about the murder, Jacques had just days earlier handed over a $5,000 deposit on Varaschin’s former Spring St. home. “. . . and Varaschin’s Orangeville home has just been sold,” the newscaster said. Goosebumps sprung up on Jacques’s arms and neck while he watched images of white-clad forensics officers ducking under yellow crime-scene tape and into what was to become his new home. “It’s not the way a person should find out about a situation like that,” Jacques said.

It took almost three weeks, but Jacques eventually got out of the deal and got his full deposit back. But he still filed a complaint with the Real Estate Council of Ontario (RECO) claiming the broker for Varaschin’s estate, Lee Hill of iPro Realty Ltd., intentionally misled him by concealing the house’s checkered past. The “first-time buyer dream home” was originally listed for $209,000. “Completely freshened,” reads the description, which has since been removed. “Nothing needs to be done here.” Hill played down the controversy Thursday. “We let them out of the deal,” he said, adding, “There is no proof of the wrongdoings being done in the house,” and he did not hide the fact it was Varaschin’s home.

Ontario Provincial Police investigators have never revealed where or how Varaschin was killed. There was no forced entry into her home, but the woman’s blood was found splattered throughout. Real estate agents in Ontario are obligated to disclose “any material fact about a property or its history they are aware of that could affect a person’s decision to buy,” according to RECO. But there is disagreement among local real estate experts on whether this includes “stigmatized” properties, such as locations of murders, suicides and alleged hauntings. “I have never met an honest realtor who won’t disclose (a murder),” said Barry Lebow, who teaches the realtor’s course “Selling the Haunted House: Realtor disclosure.” “The last thing I always tell my students is, ‘Disclose unto others what you want disclosed unto you.’ ” But Bob Aaron, a high-profile Toronto real estate lawyer, said vendors only have to disclose hidden defects which render the property “uninhabitable.” “I don’t think a stigma is a defect,” he said. California law explicitly requires an agent to disclose whether a murder took place on the property for three years following the incident. Thirty U.S. states and the province of Quebec have similar laws. But Ontario’s rules are less clear.

Whether or not there is a legal obligation, Jacques said Hill had an ethical responsibility to disclose. “The killer hasn’t been caught. I have three kids . . . it’s not the supernatural stuff — I don’t want to be raising my kids around that,” Jacques said. Lebow said a property is definitely devalued by stigma, but he said he could not put an exact number on it because there were too many factors, such as the time lapsed from the incident, the notoriety of the crime and the size of the community. “(Stigma) is much worse in smaller towns,” he added. Hill said he has since found a new buyer for Varaschin’s former home, but he did not list the house publicly this time, “to avoid undue publicity.” But Hill admitted he “disclosed much differently in this sale” and the new buyer is well aware of what happened to the former owner. Hill said the house was not any tougher to sell, but he refused to say what price it sold at, or whether it was lower than the $209,000 Jacques was prepared to pay.

Brendan Kennedy
Staff Reporter
The Toronto Star

20 things to look for in a home inspection Home inspections are a good way to save money down the road

2011-11-08T14:17:00.000-05:00

ShutterstockBy Mark Weisleder

I continue to receive complaints from readers about problems that they discover after closing their home purchase. Most complain about sellers who fail to disclose defects or home inspectors who fail to find them.

The system is far from perfect. However, there are steps that buyers can take before and during a home inspection to protect their interests.

Check all electrical outlets to make sure that they work. Open windows, even in the winter, to make sure they are not stuck or painted shut. Look under any area rug or bed and behind any picture to check for cracked tiles, stained carpets or walls.

Lift anything on the kitchen counters to look for defects. Do any of the appliances show any rust? How old are they? If they are discontinued models, you will likely have to replace them if they break down because of the difficulty of finding replacement parts.

Start the dishwasher at the beginning of any home inspection. By the end, it should have gone through its entire cycle, without leaking. Put a thermometer inside the oven and turn it on to 350 degrees. After 10 minutes, check the temperature. Test stove burners. Put a cup of water in the microwave for 45 seconds. Does it heat up? Flush every toilet and see whether it stops running after it is filled. Check sinks, tubs and showers in the house.

Is there proper water flow from each faucet and does everything drain properly? You may want to consider turning all the faucets on at the same time and then flushing a toilet upstairs to see whether the water pressure slows or stops in any sink. This could indicate a problem with the system.

In older homes, consider a separate sewage inspection. Stan Collini, the President of Roto-Rooter Plumbing and Drain Service in the GTA, tells me that for $295, you can do a video camera of a property’s sewer system to see if there are any problems that would not be visible on a typical home inspection.

Check under the water heater for leaks or stains on the floor. Ask how old the air conditioning unit is and when was it last serviced Is there sufficient hot or cold air reaching all of the rooms in the house? Does the owner have a plan with their gas company to inspect the furnace once a year? When was the last inspection conducted? If the house has an addition, ask whether any upgrade was done to the heating or cooling systems to account for the additional living area.

Look for water stains in the ceiling which could indicate leaking from the roof or other problems with the plumbing system. When your inspector is on the roof, ask them to check for broken or cracked shingles. If it is a flat roof, look for the low spots where water can collect for any evidence of a problem. Check the eaves to see if there is any rot or decay. If any concerns are noted, consider bringing in a roofing contractor for an additional opinion, especially if the home is 15-20 years old and it is still the original roof.

You may also want to consider a separate inspection for mould or termites, as these may not be visible on a home inspection but can result in significant costs to repair later. Check if this is a known problem in the area. Always ask the seller and the seller’s agent if they know about any hidden defects that are not visible. They must answer truthfully if you ask them.

Consider looking into after-sale warranty protection. Many of these products on the market will generally cover problems with a home electrical, plumbing, heating and cooling system, as well as the major appliances. But like any warranty, ask about deductibles and what is excluded from coverage. By being properly prepared and asking the right questions both before and during any home inspection, you will be better protected against costly surprises after closing.

That feeling you’re feeling today? It’s the fear of September‏

2011-11-08T14:14:00.000-05:00

Longer sleeves, shorter days, crowded highways and school lunches all contribute to the sudden sense on the day after Labour Day that everything has changed. “Fall is a very emotional time of year, filled with loads of memories, many of them associated with back-to-school,” Dr. John Sharp, a neuropsychiatrist and author of the book The Emotional Calendar, writes on his blog.

“Fall sometimes feels a bit like a Sunday evening, a time that is so focused on tomorrow.” Although fall technically doesn’t begin until Sept. 23 at 5:05 a.m. Toronto time, the end of the Canadian National Exhibition (Monday) and the return of the yellow school buses (Tuesday) are the more common barometer. Or, perhaps, the return of Monday Night Football. The tide of human life does shift, says Phil Masters, head of highway-traffic management at the Ministry of Transportation. Although there are actually a tad fewer cars on the road after Labour Day compared to the summer, they bunch differently.

Come Tuesday, Masters said, “Everybody’s back in school, back from vacation. There is a redistribution in the traffic.” Meaning fewer people have the option of travelling Highway 400 or 401 — the most heavily traveled freeway in the world, says Masters — at midday. Emotional Calendar author Sharp confesses to a fear of September. The late August attack of nerves that he traced to back-to-school jitters inspired his book and a series of blogs for the magazine Psychology Today.

His solution? Take autumn in the here-and-now rather than as a time of regret for boxing the flip-flops or anticipation for December holidays. “Don’t think of this time as a segue from one well-defined period to another.” The stock market also notices, according to a 60-year analysis of the Standard & Poor’s 500 Index by the CXO Advisory Group. Stock trading jumps just before the Labour Day holiday then turns twitchy in the days after, CXO found. Add to that the reflections of Alexandra Samuel, the Emily Carr University director of the Centre for Moving Interaction, who says the most exciting part of fall “is the prospect of a fresh round of bathroom graffiti.”
Lesley Ciarula Taylor
Staff Reporter Toronto Star

Be careful when renting newer condo or home‏

2011-11-08T14:12:00.000-05:00

Nov. 1, 1991, is a very important date for rental properties in Ontario.

If your home, condo or apartment was built after that date, rent review does not apply. So, instead of the maximum increase of 0.7 per cent permitted in 2011 for most rental units, there is no limit on how much a landlord can increase the rent after the first 12 months of your tenancy.

Let’s say you rent an apartment in a building constructed before Nov. 1, 1991,and your rent is $1,000. The maximum your landlord can raise the rent this year is $7, to $1,007.

However, if your unit was built after that date, your landlord can raise the rent as much as he or she wants — to $1,500 for example.

In all cases, the landlord has to use the proper forms under the Residential

Tenancies Act and must give the tenant at least 90 days’ notice of any
increase. If the required notice is not given, the entire rent increase will be declared void later.

There are now thousands of condominium units in Ontario built after Nov. 1,
1991, that are being rented to tenants. If you are thinking of renting one,
consider a clause in your lease that puts a maximum on how much the landlord can hike your rent each year.

For landlords, this right to increase arbitrarily should not be abused. It should be limited to what the fair market rent for a similar type of unit would be. For example, let’s say you rent a two-bedroom unit in Toronto for $2,000. After one year, similar two-bedroom units in the area rent for $2,200. You are having problems with the tenant. Can you raise the rent to $3,000 in order to effectively terminate the tenancy?

In my opinion, if the landlord tries to just get rid of a problem tenant by unreasonably increasing the rent well above fair market value, they may have difficulty terminating this tenancy for non-payment of rent later. A judge may look at the entire process as acting in bad faith.

I am fairly certain this Nov. 1, 1991, exception to rent review will become an issue in the October provincial election. I wouldn’t be surprised if rent review is extended to cover these units as well.

We have a real problem in Ontario in that few new apartment buildings are being constructed. Builders make more money building condominiums. There
needs to be creative thinking by our politicians to encourage and provide incentives to building more rental units in Ontario. This will benefit both landlords and tenants in the long term.

Until this happens, tenants must be careful to protect themselves when renting units built after Nov. 1, 1991. Landlords must always make sure to use the proper forms and give 90 days’ notice before any rent increase.

Mark Weisleder is a lawyer, author and speaker to the real estate industry. If you have any questions about real estate issues, mark@markweisleder.

How to improve your finances in just 30 minutes‏

2011-11-08T14:07:00.000-05:00

Alison Griffiths
What’s the biggest impediment to financial stability? Bad spending habits? A love affair with plastic? Family troubles? Job loss? Too much month at the end of your money? None of the above — it’s disorganization. We tend to blame financial woes on a host of factors that often seem too monumental to tackle, as if they are addictions or circumstances beyond our control. So we do nothing. However, in many cases — perhaps most — the cause of financial problems is right under our noses, in drawers, boxes, files, envelopes and lodged in a host of bookmarks on our computer. In other words, a big, fat money mess getting in the way of your financial stability. “People have a fear of money,” observes Colette Robicheau, an organizing consultant and coach with Organize Anything in Halifax. “The big issue is that they really don’t have a grasp of their (financial) situation.” That lack of grasp, says Robicheau, often results in a paper pileup from unopened or unread mail and what she calls a digital disconnect. “A lot of my clients say they can’t handle the paper but if you’re not organized on paper you won’t be digitally.” It’s easy to pay bills online or set up automatic payments but equally easy to lose track of whether or not they’ve been paid or paid properly. “I’m a tree saver like the next gal but there’s nothing like a piece of paper with paid marked on it,” Robicheau emphasizes. That old-school approach — paper, files, sticky labels — is a great place to start if your financial life is in shambles. Since the dog days of summer are upon us and you’ve no doubt already completed a host of other organizational chores — basement, garage, storage locker, cupboards and refrigerator — tidying your money closet is the perfect task to take on before the busy fall days arrive. Here is a 30-minute financial clean up to get you started. Minute 1: Gird loins, close eyes, breath deeply and channel your inner organizer. Minutes 2 to 5: Think of this next step as a warm-up. Locate all tax returns dated 2004 and older (you are only required to save six years’ worth of returns and related receipts) and set in a box for later shredding. Minutes 6 to 8: Get three brightly coloured file folders and mark them: To Read, To File, To Pay. Tip: Colour does have an impact on how you approach tasks. Pick what motivates you or is likely to make you pay attention (it’s purple or turquoise for me.) Minutes 9 to 11: Get three more file folders and mark them: Receipts — Warranty Items, Receipts — Household, Receipts — Personal/Family. (Those with kids might want to break down the last one into two files, Receipts — Personal and Receipts — Children.) Tip: If you don’t have a filing cabinet or drawer, an accordion file or a metal box that will hold hanging files works very well. Space permitting, keeping this group of files where you can see them will motivate you to read, file and pay. Minutes 12 to 18: Go through the home office, odds-and-sods drawers, pockets, shelves, wallets, purses, shoeboxes or anywhere you might have stashed anything financial, from receipts to statements, notices and bills. Don’t forget briefcases. Minutes 19 to 25: File your statement and bill pile. Anything not opened or read goes into the To Read folder. Make sure all recent bank, credit card or investment statements go here if you haven’t read them thoroughly and checked to ensure service and interest charges, debits, credits and purchases are noted correctly. Put anything to be paid in To Pay. Tip: Many of us opt for e-statements, which are easy to glance over without really reading, let alone checking, each transaction. My preference is to print them and run down the activity list in your account ticking off each item as you go. Yes, you are using ink and paper, but for financial transactions it is important to look at what has gone on in your account, not just scan the bottom line. Anything already read and paid should be filed right away. Minutes 26 to 30: Go through your receipt file. Anything you need to hang on to for warranty, return or tax purposes (medical, dental, kid’s activities) goes in the To File folder. Hang on to grocery and liquor store receipts for a couple of weeks and clothing or household items for six months. Keep things under warranty for a bit longer than the guarantee period as retailers and manufacturers will sometimes replace or repair items anyway. You might not get it all done in 30 minutes but you will have made a great start on taming your financial tiger with this midsummer clean up.

What does "update wiring" really mean?

2011-11-08T14:04:00.000-05:00

Mark Weisleder
The subject of home inspections continues to matter to buyers and sellers. John says that he would never listen to a home inspector recommendation by a real estate agent because they only refer inspectors who will likely approve the house.

My answer is that real estate agents will normally recommend threeprofessionals. You should take the time to check references for any inspection company before deciding to hire them. Jim, a seller, complains that buyers use the home inspection condition to come back and try to renegotiate the price. Paul, another seller, asks whether they should do their own home inspection before putting their house up for sale. Because many sellers refuse to sign disclosure statements about the condition of their properties, there is a concern by buyers that the sellers may be hidingsomething.

As a result, some sellers are having their home inspected before they offer it for sale. By having a home inspection done in advance by a reputable company and handing a summary to an interested buyer, you can give the buyer more peace of mind. The seller can also fix the problems noted on the inspection and show the buyer what was done. This should preventbuyers from coming back to try and re-negotiate the price after doing theirown inspection. I have also noticed many ads out there describing properties for sale, withwords like “New Roof, Upgraded Plumbing, Updated Wiring or “TotallyRenovated.”

Buyers need to ask for proof as to what the seller means by any of theseShutterstock claims. New shingles on a roof is not the same as replacing the entire roof. Does upgraded plumbing refer only to some new bathroom fixtures, or does it include all new pipes throughout the house? Does upgraded wiring meanthat you have installed modern light dimmers or does it mean that the old knob and tube wiring has been torn out and replaced. Total renovation can meanmany different things. It is important that buyers ask sellers to produce proof, by way of contracts or invoices, to demonstrate exactly when and whatwork was done. Are there any warranties that were given with the work? Are these warranties transferable to the new buyer? By obtaining copies of any work that was done and providing this to your home inspector in advance, a more thorough inspection can be done to makesure that the work was done as advertised.

The home inspector will have a better idea on what to focus on. Bill, a buyer asks how he can protect himself about termites or mould in a house? Sellers have an obligation to tell a buyer about serious hidden problems that an inspector may not see, such as foundation problems, roof or basementleaks, mould or termites. While a home inspection company may be able to look for visible structural component evidence of termites, buyers will probably require a pest control specialist to inspect to see if there are any problems. Buyers need to check whether the area in general is known for termites before deciding if anything further is necessary. Sellers, remember that more disclosure means more peace of mind. Buyers, asking the right questions in advance will make choosing a home inspector and conducting a thorough inspection easier.

Rental Properties, Good Investment?

2011-11-08T14:01:00.000-05:00

Rubina Ahmed-Haq.
Special to the Star
When I started my first permanent job as a journalist in 2004, I made the best financial decision of my life — I invested in two rental properties with my brother. While many of our friends were living in chic condominiums, we were chasing tenants for rent and fixing leaky pipes. We made mistakes that cost us time and money, but years later we're financially ahead. Our first investment was a triplex in east Toronto. We took the lowest available five-year, fixed-rate mortgage. Considering the low interest-rate environment that followed, a variable rate would have saved us more than $20,000. But at the time, we were unwilling to take the risk. With no time or money to renovate, we chose a house that was in move-in condition.

It closed at the beginning of the month, giving us enough time to advertise and have renters in place before the first mortgage payment was due. We moved into one unit and rented out the other two. From the beginning we paid rent. After all, we were tenants in our investment. Eighteen months later we took equity out of the investment and bought another property in the same area. We stuck to what we knew and we bought another turnkey triplex. For the first three years we managed both properties, which was a lot of work. From taking calls in the middle of the night when the furnace broke to the death of a tenant, this was real work and we often thought of quitting. We also made a lot of mistakes. In the beginning, we didn't keep a good account of the money we spent on our investment. Also, we missed opportunities to write off expenses; we saw our tenants as friends and were lax in collecting rent. And we often spent weekends removing snow and throwing out garbage that was piling up because we had failed to create a system for general maintenance. And, as bad as it sounds, our biggest mistake was borrowing money to put down a responsible 20 per cent on our first property.

At the time, 5 per cent would have been enough, and we could have written off the mortgage interest, saving thousands. After a few years of managing on our own, we sought professional help. We had both moved into our own homes, so we hired a property manager to oversee the six units. His company charges 6 per cent of total rent revenue collected each month. He finds the tenants, does the credit checks and deals with the day-to-day calls. We're not out-of-touch landlords. My brother and I meet once a month to go over our account, do the checks and balances and bring up any concerns. We also have a line of credit against our investment. This is our business line and we pay all the bills from it. The interest on this loan is tax deductible and we pay it down with the money collected from rent. It's also good to have one accountant looking at all the tax claims in your family. It gives them a holistic view of your financial situation and helps identify opportunities to save money. Ours is great. She's not cheap — last year I paid more than $800 in fees — but her advice has saved us thousands over the last few years.

When the time came to renew our first mortgage, I quickly learned banks offer better treatment to new customers and we could take advantage of this fact. Mortgages are banks' biggest business, and they're willing to offer huge incentives to make you a client. We moved our business from one major bank to another and collected thousands in cash-back incentives. Both of us are in our 30s and we estimate the properties will be paid off by the time we're in our early 50s. Conservatively our real-estate agent says our houses are worth 45 per cent more than what we paid. We realize we've benefited from the housing price boom, but according to the Toronto Real Estate Board the long-term trends are still good. Even with the threat of a house price correction we're okay. Real-estate investment is not for everyone. If you're a so-called couch-potato investor, don't become a landlord.

In the beginning it's a lot of work. But for us it was worth it and I feel good knowing our investments are growing. Life only gets more expensive — I realize now the disposable income I had during my first job was the most I will probably ever have and investing it was the smartest move I made.

5 investing rules of thumb to avoid

2011-11-08T09:28:00.000-05:00

It’s a mark of how complicated life has become that we eagerly grasp at rules of thumb to help us make everyday decisions. However, rules of thumb — especially financial ones — tend to be blanket recommendations that fail to take into account the vast differences in our lives. Trying to follow them can result in frustration, a sense of failure and, in the worst cases, disaster.

Here are five of my favourite misleading financial rules of thumb.

1. Buy and hold is the best approach.

B&H is one of the basic axioms of the investment industry. On one hand, it steers people away from jumping in and out of investments with every stock market hiccup. On the other hand, if a stock or mutual fund is a dog, it will keep barking no matter how long you hold it. Far better to let the dog out and redirect your money into better quality stocks or mutual funds.

The mutual fund industry loves B & H because it encourages investors to hang on, whether they have good investments or bad. All the while management fees (MERs) are collected regardless of the quality of the fund. Also, B&H keeps most people from carefully scrutinizing the quality of their investments — they just keep buying them hoping they’ve been steered into the right ones.

A better rule would be: Buy, hold and monitor.

Evaluate your holdings annually. If you notice long-term yipping and howling, show that pooch the door.

2. If you’re young, you can afford to take risks.

Those who start investing early can be conservative and still reach their goals. That is, of course, if you religiously reinvest dividends and interest income, a practice that allows the miracle of compounding to increase your rate of return over time.

Morningstar’s Andex Charts back this up with a comparison of a risky sample portfolio (80 per cent in equities) with a conservative sample portfolio (80 per cent in GICs and bonds). The safer one actually slightly outperforms the riskier one over 30 years — 10.8 per cent on an annual average basis versus 10.2 per cent. And the conservative portfolio has far less chance of loss at any given time than the riskier one.

Why would a young person want to take on more risk if there is no reward down the road?

Here’s a better rule: If you’re a young investor, you don’t need to take risks.

3. Invest your age

This is a favourite rule in the financial planning field. When you subtract your age from 100 that is how much you should have invested in stocks or equity mutual funds. So a 60-year-old should have 40 per cent in the stock market and 60 per cent in fixed income (cash and bonds). A 30-year-old should have 70 per cent in the stock market and 30 in fixed income.

However, this guideline doesn’t take into account a person’s situation or temperament.

Moshe Milevsky, associate professor of finance at York University, once told me he doesn’t invest in bonds because “I am a bond.” He was describing his situation. His defined benefit pension plan effectively functions as a bond giving him a guaranteed income on retirement. In Milevsky’s case, “invest your age” is meaningless.

In contrast, a 25-year-old who has absolutely no stomach for risk might be well served by investing mostly in GICs and bonds.

A more appropriate rule of thumb would be: Invest according to your situation and temperament.

4. Retirement income should equal 70 to 80 per cent of working income

Author Margie Taylor’s recently published and hilarious book, 60 is the new 20: A boomer’s guide to aging with grace, dignity and what’s left of your self-respect, makes it clear that there is no one-size-fits-all for the boomer generation. Those who are either at or near retirement are far from a homogeneous group and vast differences demand more individual specific planning.

Someone in a small town with inexpensive housing might be fine with 50 per cent of working income. But if you live in a high tax urban neighbourhood with three large dogs, a boat and a cottage, 85 per cent could be more appropriate.

A better guide would be this: Target your retirement income according to your health, energy, goals, hobbies and where you expect to be living upon retirement.

5. Save 10 per cent of your gross income

Yes, it has a nice ring to it, but it could be unrealistic for one-income families. On the other hand, a high-earning, single person with no car and low housing costs could certainly save far more. Also, there may be times in your life when paying down a mortgage, student loan and other debt makes more sense than setting aside savings in a Tax Free Savings Account or RRSP.

A more reasonable rule of thumb might be: Aim to save 10 per cent of gross income but adjust it according to your stage of life.

I’m not suggesting all financial guidelines should be tossed out the window. Consider them, but take into account the realities of your own situation.

Alison Griffiths