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Author: stu

5 Things Home Buyers Should Know About the New Federal Budget

Preparing to buy a home in the not-too-distant future? Here’s how the recently-announced federal budget could impact you…

The Canadian government’s budget was unveiled on March 19th, and we’ve been fielding questions from friends, family, and clients ever since! While it touches on everything from workforce skills to pharmacare, the budget also contains a few measures that have caught the attention of prospective home buyers. The most notable is a pitch from the government to take on some of the costs of purchasing property for the first time. The potential buyers we’ve spoken to are excited about the budget, but they’re also unsure about certain aspects of it—such as eligibility, and what (exactly) it could mean for them when they’re ready to obtain financing.

If you’re thinking of purchasing your first property, here are five things you need to know…

1) $1.25 billion would be freed up for eligible Canadians

The government announced that $1.25 billion has been earmarked for lower and middle-class home buyers. This money would be administered by the Canada Mortgage and Housing Corporation (CMHC) through shared equity mortgages (SEMS). With this type of loan, lenders provide part of the financing for a home—and potentially share in the associated gains and losses. Many details of the government plan have yet to be hashed out, but it’s fair to say that SEMs hold a lot of promise when it comes to tackling affordability issues.

2) You may be able to borrow more from your RRSP

Right now, Canadian home buyers can take out up to $25,000 from their Registered Retirement Savings Plans (RRSPs) in order to buy a home. The budget would up that amount to $35,000. Buyers could access these funds without ever paying a tax on the withdrawal. If you take advantage of this measure, you’ll have 15 years to pay back the sum you take out.

3) It could mean a nearly interest-free loan for many buyers

At the centre of the government’s proposed housing-affordability pitch is the First Time Home Buyer Incentive (FTHBI). Through this plan, many eligible borrowers with an annual income of under $120,000 would receive shared-equity mortgages. In effect, we’re talking about loans that are almost interest-free. Here’s how it would work: buyers come up with a 5 per cent down payment, and the government pitches in up to 10 per cent of their home’s value. Of course, there are stipulations—the loan couldn’t be more than four times the buyer’s income, nor could it exceed $480,000. Fortunately, it wouldn’t need to be repaid until the property is sold.

4) Buyers sidelined by the stress test could benefit

Some critics have questioned how significant the impact of the FTHBI could be—especially for buyers in Toronto or Vancouver. The limits set on potential loans mean that they’ll only cover more modest homes in these hot markets. That said, the plan could provide the boost that some new Canadians, millennials, and other first-time buyers need to become homeowners. In many cases, these are the home hunters who have been pushed to the sidelines by the OFSI stress test.

5) Several questions remain

No doubt about it: the recent budget announcement contained a lot of new information for potential home buyers. That said, there also are some lingering questions. One of the biggest has to do with repayment. It’s clear that the owners who would receive loans as part of the FTHBI would have to pay them back once their homes sell. That said, the terms are somewhat hazy. What happens when the value of a home appreciates? Do buyers owe more than they borrowed? For now, we simply don’t know—though the government promises that more details will emerge soon.

Time will tell what kind of impact the budget’s housing-affordability measures will have on buyers. What we can say is that it just might be a major step in the right direction.

Thinking of buying your first home in Toronto? Take the first step by perusing our featured listings to see what’s available on the market!

Living in Trinity Bellwoods: One of the City’s Hottest Neighbourhoods

Considering a move to Trinity Bellwoods? Learn what makes this hip west-end enclave stand out…

Few neighbourhoods are as charming and truly alive as Trinity Bellwoods. Somehow, the area’s Victorian homes, abundant greenery, and general sense of community blend seamlessly with its thriving nightlife and trendy local businesses. The result is a community that’s buzzing with culture, yet relaxed enough to provide a refuge from the city’s core. From lively Ossington to peaceful Shaw Street to the coolness that is Dundas West, Trinity Bellwoods is a part of what makes Toronto so unique. If you’re thinking of making the area your new home, here’s what you should know…

The basics

Trinity Bellwoods is bordered by Queen Street West to the south and College Street to the north. Its western border is Dovercourt, and to the east it’s Bathurst. The enclave that lies between these bustling corridors has everything residents could ever need—and more. If that weren’t enough, the neighbourhood is just a stone’s throw from other charming west-end areas—like Little Portugal, Little Italy, West Queen West, and Dufferin Grove.

Families in Trinity Bellwoods benefit from close proximity to fantastic schools. These include Ossington/Old Orchard Junior Public School, Charles G. Fraser Junior Public School, and St. Mary’s Catholic Secondary School (among others). There’s also a wide variety of major grocery chains and smaller specialty food stores in the neighbourhood.

Who lives here

Trinity Bellwoods has a youthful-yet-sophisticated vibe, which makes it perfect for creative professionals. Young families looking for both urban living and a strong sense of community are equally suited to living in the area. There’s also a sizeable Portuguese community in the neighbourhood, adding to its overall diversity.

Where to eat & shop

Living in Trinity Bellwoods means having many of the city’s hippest eateries and trendiest boutiques right at your doorstep. Union is one of our favourite restaurants in the area. This little bistro is all about local ingredients and updated French classics. Nearby, Soos serves up its unique interpretations of Malaysian street food, while Grand Electric offers tacos that provide a flavourful punch. Of course, we couldn’t forget Bellwoods Brewery. At this neighbourhood staple, you’ll find creative bar snacks that are perfectly complemented by an impressive craft beer selection.

Looking to do some shopping? For unique women’s streetwear, try Gaspard. This Parisian-inspired boutique offers designer items that fashion lovers will adore. Victoire Boutique carries a wide selection of clothing from Canadian designers, while Armed is the local go-to for cutting-edge jewellery and accessories. Try Park and Province for a carefully-curated selection of men’s basics, and ella + elliot for stylish modern baby gear.

Things to do

We couldn’t possibly write this post without discussing Trinity Bellwoods Park. This 14.6-hectare park is one of the largest and most popular in the city. You’ll find tennis and volleyball courts, an ice rink, an off-leash dog area, and (of course) plenty of gorgeous green space. During the right season, you’ll also find the neighbourhood’s farmers market at the northwest end of the park.

Trinity Bellwoods is also a hub for visual arts, and there are several can’t-miss galleries in the area. Some of our favourites include Pari Nadimi Gallery (where you’ll find progressive art from around the globe) and Susan Hobbs Gallery (where you’ll see a range of contemporary Canadian pieces). After checking out the galleries, why not grab a coffee from White Squirrel, Ella’s Uncle, or Sam James (all great places for espresso and other treats).

Getting around

Trinity Bellwoods isn’t right downtown, which is part of what some residents love about it. That said, the area is incredibly walkable—and well served by transit, which makes getting to the city’s centre (and its many corners) a breeze. Streetcars run along Ossington and Bathurst, connecting residents to the Bloor-Danforth subway line. Drivers have an easy commute via Lakeshore Boulevard or the Gardiner Expressway, which are just a few minutes away.

Real estate

Trinity Bellwoods is a treasure trove of beautiful older architecture. You’ll find an abundance of Victorian and Edwardian homes, with many detached, semi-detached, and rowhouse options available. Pricewise, these homes typically fall with the $600K to $1.7M range. Lots in the neighbourhood tend to be narrow, and many of them look out onto Trinity Bellwoods Park.

You’ll also find an assortment of low-rise condo buildings and lofts in the area. An agent who’s a neighbourhood expert can give you more information about the sticker prices and maintenance fees for units in Trinity Bellwoods.

Have questions about living in Trinity Bellwoods? We have in-depth knowledge about what life in the neighbourhood is really like. Send us a message, and we can discuss what you’re looking for!

Upsizing 101: What to Know About Buying Your Next Home

Are you ready to trade in your cozy home for something more spacious? If so, congratulations! Deciding to buy a larger house, condo, or townhome is a major milestone. But before you break out the champagne, it’s time to buckle down and start your search in earnest.

While upsizing can be exciting, it also comes with some unique challenges. Knowing what they are can help you make a smarter purchase—one that you’ll be happy with for years to come. If you’re ready to start the process of buying your next home, here’s what you should know…

Timing is everything

The best time to buy or sell a home is whenever you’re ready. But what happens when you’re planning to do both at around the same time? When you’re upsizing, you’ll have to decide whether to purchase a new home before selling the one you’re in now, or vice versa. There are times when it might make sense to buy first, but only if you can afford to do so. Here’s why.

If you find the absolute perfect home at a great price, you may want to make a commitment before someone else snaps it up. Of course, there are risks involved. The biggest is that your current home won’t sell right away—which could put you in the position of paying two mortgages until it does.

Settling on a budget

Anytime you’re buying a home, it’s important to know your price range. But beware: budgeting for more space isn’t as straightforward as it seems. When you find a bigger place that you love, you’ll need to think beyond its asking price to understand the true costs associated with your purchase.

The truth is, more square footage almost always means higher repair and maintenance costs— and larger utility bills. If you want to get a sense of how much more you might be paying for a particular home, our advice is to talk to its current owners. Many sellers are happy to let buyers take a peek at their recent bills for major repairs and monthly utilities.

How much space do you really need?

Sometimes when a living space feels cramped, it’s the layout that’s the culprit. So before you start upsizing, ask yourself whether you regularly use all of the rooms in your current home. If the answer is no, it may be a clue that you should look for a house or condo that’s laid out differently.

In addition to areas that are underutilized, pay special attention to those that feel overcrowded. If you have a larger family, where do you tend to gather? Are there any rooms that everyone needs to use at the same time? would you all be happier with a larger kitchen or basement? What about an additional bedroom or bathroom? Thinking about layout as well as square footage can help you create a useful criteria for your search.

Think about the future

No matter how much you love your new home, chances are that it won’t be your last. Families grow, kids move away, things change…you get the picture. When and if you decide to sell your bigger home one day, you might get a very good price for it—if it aligns with what buyers are looking for.

Of course, your family’s needs should be at the forefront of your mind when you’re upsizing. But some of the features and amenities you’re looking for are bound to be those that are in demand. Before you start the process of buying your next home, do a bit of research to learn what makes a home desirable. Future you might be very happy that you did!

Planning on buying a bigger home soon? Reach out to learn more about the upsizing process–and find the property of your dreams.

Is Buying a Condo a Good Investment?

Is it a good investment to buy a condo? In this post, we’ll look at the Toronto market—and help you weigh the pros and cons of investing in a unit right now…

It’s come up over drinks with friends, dinner with family, and even lineups for our morning coffee. Here in Toronto, it seems everybody’s talking about investing in real estate. Condominiums are an especially hot topic, due to the sky-high demand they’ve been generating recently. It’s at the point where some potential investors are asking themselves whether condos are worth the hype.

In our experience, buying an investment condo can be highly profitable. But before you make a purchase, you should ensure that you understand your options—and the state of the market. If you’re thinking of investing in a unit, here’s what you should know.

Toronto’s condo rental market

To make a wise investment, understanding the rental market is key. How high is the demand for units? Who’s out in the market looking? And how much are other landlords charging for condos like yours? The answers to these questions are important. They’ll have a major impact on how much income your unit will generate—and whether it’s likely to sit on the market for an extended period.

The fact is, Toronto is growing. There’s been a recent influx of renters looking for affordable housing in the city, which has led to a jump in demand for rental condos. Homeownership is currently out of reach for many of these people, but that doesn’t mean they’ll having trouble making their monthly rent. Often, we’re talking about young professionals with steady incomes and families who are working toward buying their starter homes. Generally speaking, these renters are willing to pay good money for units—which helps explain the 9 per cent increase in GTA condo rents in 2018.

When it’s time to sell

So, is it a good investment to buy a condo? Let’s dig further into the question by looking at what happens when it’s time to sell. Say you’ve been renting your unit out for a few years. It’s been a great, relatively low-maintenance source of income. But now, you’re ready to make some major life changes—and they include selling your unit. The great news is, you’re probably going to get an impressive return on it.

It’s true that the condo market has been on an exceptionally hot streak lately, and conditions won’t stay exactly the same forever. That said, property in Toronto tends to appreciate at a very respectable rate. Of course, it’s always hard to predict the future—especially when it comes to real estate. And we definitely believe in exercising a healthy degree of caution. That said, historical appreciation rates combined with the growing need for affordable housing make Toronto condos a very attractive long-term investment.

Choosing an investment strategy

Once you decide to invest, it may be tempting to dive in quickly. But before you start looking at buildings and trying to crunch the numbers, it’s a good idea to familiarize yourself with some condo-investing basics. Let’s start with a cliche. Location, location, location. You’ve heard the phrase before, and there’s plenty of truth to it. While a condo’s neighbourhood isn’t the only factor to consider, choosing an up-and-coming area or one that’s on a subway line can sometimes result in a dramatically higher return on investment (ROI).

Most importantly, you should align your purchase decision with the needs of a particular target market. A one-bedroom, downtown unit with convenient amenities (like a high-end exercise room or yoga space) would likely appeal to young professionals. In contrast, a condo with multiple bedrooms and decent storage space that’s located near good schools would be perfect for a family.

Ensuring that the property you select will be attractive to a sizeable demographic of renters—and marketing it accordingly—is part of a sound condo investment strategy. A great real estate agent will have the knowledge and experience to help you every step of the way.

Ready to look for your first investment condo? Reach out today to learn what to look for, and what’s available on the market!