Money Toronto Real Estate's Harsh New Reality: Buyer Beware

10:16  08 april  2018
10:16  08 april  2018 Source:   Huffington Post Canada

Millard appeals murder conviction for killing Babcock

  Millard appeals murder conviction for killing Babcock TORONTO - An Ontario man who killed his former lover and burned her body in an animal incinerator has filed an appeal, arguing his first-degree murder conviction was unreasonable and the life sentence he received too harsh. In his notice of appeal, Dellen Millard also claims the judge forced him to represent himself at the murder trial in the case of Laura Babcock, a 23-year-old Toronto woman who disappeared in the summer of 2012 and whose body was never found.Late last year, a jury found Millard, 32, of Toronto, and his former friend, Mark Smich, 30, of Oakville, Ont., guilty in Babcock's murder.

Buyers beware in real estate purchases, too. I recently read an article, in a Toronto news paper, that got me thinking about the experiences of home buyers purchasing newly built condominiums.

Buyers must be very careful to check for minor defects in a home by themselves, as they may not be protected if they find out about it later. Mark Weisleder is a Toronto real estate lawyer.

a large ship in a body of water: Condominiums are seen under construction in Toronto, July 10, 2011.© Provided by AOL Inc. Condominiums are seen under construction in Toronto, July 10, 2011.

Until recently, Greater Toronto's housing market had been something of a fairy tale. Years and years of price growth convinced many that buying into the market — at any price — would pay off. In essence, a house in Toronto had become a miracle investment: no matter what happened, you made money.

But now, with home sales in the metro area down nearly 40 per cent over the past year, and prices down 14 per cent in that time, the market is doing something it hasn't done in a good three decades: It's creating losers.

The Toronto Star reported recently on a group of buyers of pre-sale homes in Oakville, who made down payments in February 2017 (just before the peak of Toronto's house prices) and who are now stuck with the bill for homes they can no longer afford.

Toronto homes sales, prices slump in March

  Toronto homes sales, prices slump in March Toronto homes sales sagged in March, tumbling 39.5 percent from the previous year, as tighter mortgage rules and higher borrowing costs dampened demand, data showed on Wednesday. Sales of detached homes plunged 46.3 percent and condo sales dropped 32.7 percent, as many would-be buyers put their plans on hold, the Toronto Real Estate Board (TREB) said.The average selling price in the Toronto area was C$784,558 ($613,799), down 14.3 percent from C$915,126 in March 2017, though up 2.1 percent from February 2018.The average selling price for a detached home, the most expensive segment of the market, plunged 17.

Toronto Real Estate with Torontoism. Request a FREE Home Evaluation. There is no doubt that the act does need reworking, but caveat emptor, or buyers beware , can go a long way to help buyers when purchasing any home.

Toronto Real Estate - Homes & Apartments for Sale. Get new listings. With Toronto aiming for higher density living, and the unaffordable prices of detached single family homes, buyers are turning towards condo properties in increasing numbers.

Their current homes can't be sold for the amount they expected last year. With new government-mandated mortgage stress tests in place, and lenders re-assessing the value of GTA properties, they can't get mortgages to cover the full amount. They fear they may get sued by the developer, Mattamy Homes, if they don't close on their deals.

The Mattamy Homes Preserve development in Oakville, Ont., where a number of buyers are under financial pressure following a decline in house prices in the area.© Provided by AOL Inc. The Mattamy Homes Preserve development in Oakville, Ont., where a number of buyers are under financial pressure following a decline in house prices in the area.

They are not the only ones to face financial pressure from a slowing market. According to a report from CIBC and real estate consultancy Urbanation, released Friday, many of the city's condo investors are now losing money.

GTA home sales down 40 per cent in March compared to last year, report shows

  GTA home sales down 40 per cent in March compared to last year, report shows GTA home sales down 40 per cent in March compared to last year, report showsTREB reported 7,228 residential transactions last month in the GTA, a steep drop from the record 11,954 sales reported in March 2017. Last month’s figure is down 17.6 per cent compared to average March sales for the previous 10 years.

The real estate world is awash in buyer - beware warnings. The reality is that earlier this year, prices in Toronto were increasing 33 per cent year over year and in the surrounding regions by 43 per cent.

Toronto ' s real estate market went through a notable correction over the summer months, with sales in some pockets of Toronto dropping up to While some prospective buyers will be hit by new mortgage rules coming into effect on Jan. 1, the overall market will likely see little impact from the changes.

The study found that nearly half of the condos delivered in 2017 — 48 per cent — were bought by investors. And of those, nearly half — 44 per cent — have "negative cash flow," meaning rental income isn't covering the costs of ownership, such as mortgage and condo fees. (Some 80 per cent of investors have a mortgage, so leaving units empty isn't a good option for most.) And more than a third of those losing money are losing more than $1,000 a month.

So is it time to panic? No. Or, well, not yet. For those who bought well before last year's peak, the math still adds up nicely. Most homeowners would not be underwater on their mortgages if they sold today. Most condo investors have made large gains in the resale value of their properties over the past several years, even if for many rent isn't covering costs.

And even if all the investors who are losing more than $500 a month bailed on the market, they would increase housing supply by only 3.4 per cent of the total, the CIBC/Urbanation report estimated — hardly enough to flood the market and tank prices.

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The Toronto Real Estate Board (TREB) released its Greater Toronto Area (GTA) market statistics for February 2018 Builders working to reduce impact of HST on new home buyers . February 19, 2010 - 0 Comment.

A Buyers Representation Agreement (BRA) is a contract between a potential buyer (or tenant) and a Real Estate Brokerage. There certainly are benefits to the consumer that come from entering into this contract, the Toronto Real Estate Board has even dedicated a website that outlines them.

a screenshot of a cell phone© Provided by AOL Inc.

But the lesson here is that things have changed, and the housing market going forward won't be like the housing market of recent years. Rapid house price growth is unlikely, if for no other reason than governments are now actively fighting to stop it.

For some investors, that could be bad news. The CIBC/Urbanation study estimates that an investor who buys a typical condo today will need to see 17 per cent growth in rental rates to make money off that condo when they take possession in 2021. If mortgage rates rise by a single percentage point, they'll need 28 per cent rental growth. It's possible to get that, but it's by no means guaranteed.

And for those who buy pre-sale homes, it means scaling back your ambitions. You can't be sure that your home will sell tomorrow for as much as it would sell today, as those buyers in Oakville have learned. Nor can you be sure that you'll get a mortgage tomorrow that's as large as the one being offered today, because mortgage rates are on the rise, and regulators could tighten rules again.

So in essence, it means we now have to take to heart an old adage that has been long forgotten in Toronto's real estate market: Buyer beware.

This article originally appeared on AMP: HuffPost Canada at https://www.huffingtonpost.ca/2018/04/07/toronto-real-estate-new-reality_a_23405449/

GTA housing market poised for spring thaw .
GTA housing market poised for spring thawOakville broker Tracy Nursall says it’s been longer than a single aberrant year since the Toronto Region experienced a typical spring market. This year is more similar to 2013 or 2014 than any season since, she said. There was a long run-up to last March’s historical peak of a 34 per cent year-over-year price increase. The exceptional activity dates back to 2015, she said.

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