Realtor TWARTS Terrorism in Toronto

Real Estate Agent David Pylyp single handedly Stopped a Terrorist enterprise from occurring in a sleepy west end suburban community.

" I realised that renting to "these people" was problematic when they completed the Individual Identification Record supplied by the Canadian Real Estate Association.  I was paying close attention to the television ads that promote diligence and using a REALTOR® "

David Pylyp explained  "We had already signed the Agency Acknowledgement, Working with a Realtor Brochure, Explained and Signed the Buyers Representation Agreement when I was completing the updated 4 page Individual Identification Information Record. This is where FINTRAC needs to know where your deposit monies came from and who is really buying or renting the house."

Normally people would shake hands and come to an agreement to Buy or Sell, even rent a property in Toronto,  but thank fully we have FINTRAC.

David explains; "By Identifying a HIGH RISK Foreign Citizen or Resident that operates in a HIGH RISK Country or OTHER I have helped twart terrorism."

http://zh.scribd.com/doc/225771418/Individual-Identification-Information-Record-OrEA-630-Blank

This is sarcasm in case its not evident
The form however is rather insulting to any INVESTOR or Non Resident who is welcome to buy here in Toronto for investment and Safe Haven, yet this 4 page tree killer will sit in some filing cabinet, in a real estate office for seven years.

We do welcome investment in Toronto; there is just extra paperwork.  I will be pleased to help you with that.  But we need these forms.

Sorry,  we're Canadian.

Propinquity

What is it?


So buying a place that is at the City Center is logically more expensive.  The trend to live downtown within the City Core or at the edge of transit (suburbs) is desirable. 

Having the place on the beach  YUP   I get that.

The question I'm asking is simple...

Is Toronto a Growth City that is continuing to expand or are we into a retraction?  A wise gentleman Barry Lebow recently said; 

Here is a simple fact that escapes these writers, the journalists who live with their noses against the windows of life, looking in and being envious of that which they do not personally have - no matter how bad the economy, no matter how high the prices, no matter how outrageous the interest rates, houses will be sold! Period. The "why" escapes them and that is the yearning for a place of one's own, the yearning to have equity, to own versus rent and one of the major factors, our immigration. What is denied most citizens of the world? Rights, human rights and one of those is the right to own land, to own a home. The burning desire to own will outweigh the logic of all economists, journalists or others who analyze real estate like it is actually a rational market. Buying real estate is not rational, it is emotional. So let the gloom and doomers have their say, the public reaction to the market is still the only true barometer of where the market is going. 

The Canadian Business Magazine has a different perspective;

How Low will Prices Go? Investors are potentially more likely to sell when prices decline, which could ultimately flood the condo market with resale listings. With 240,000 more planned condo units yet to be built in the Toronto area, many are worried about a burgeoning supply-demand imbalance. Already, investors are backing away from the Toronto condo market  http://www.canadianbusiness.com/economy/how-low-will-house-prices-go/

All those with strong disposable incomes who want that LARGE Modern Bungalow [into their retirement] cannot find [IT] in the City MUST move themselves to the suburbs and outlying communities.  In the last few years I have seen bungalow demand continue to increase and wheel chair accessibility become more common questions. People want large condo units in the city but maintenance and taxes are prohibitive, In addition to the price per square foot.

Propinquity exists because the house is beside or near something you want or need. 

What do you think?
Add your voice...

Can we go shopping?

Rental application contains do you smoke?

Photo Cred CHFI

Larry the Landlord Renting to Smokers?

No matter your opinion on the No Smoking Bans in public places; Landlords in Toronto are also faced with the reality that after renting to Smokers the condo unit or townhouse will be less desirable to subsequent tenants.

Landlords will very often need to repaint, rebroadloom and may very well need to replace fabric draperies.

http://www.realequity.ca/cases/smoking.pdf

The Landlord Tenant Boards decision interprets the "wear and tear" that 20 years ago would have been Normal to now be Tenant Damage.

You can and will be held liable for repairs.

How will Condo Investors enforce No Smoking Ban?

You know its coming....

The zeal for a NON smoking society.  What was a common and accepted event is now banned at work, restaurants, building entrances, outdoor patios and even soccer fields.   Now with new legislation they are proposing banning smoking in all condominium units and duplexes,  anything that shares a wall.

SAN RAFAEL, Calif., Oct 15 (Reuters) - A San Francisco suburb on Monday banned smoking in duplexes, condominiums and other multi-family homes, with city leaders saying they hoped to lead a wave of such regulations across California and ultimately the country.
The City Council in San Rafael, a community of 57,000 people about 15 miles (24 km) north of San Francisco, voted unanimously for the ban, following a handful of other California municipalities that have outlawed smoking in buildings with as few as two units.
"We are happy to blaze a trail," Mayor Gary Phillips said before the vote. "We're most happy to be in the forefront of the issue because we think it will greatly benefit our residents and those visiting San Rafael, and we think it will set the tone for other cities as well."
Tobacco-control experts predicted that the tough smoking ordinance in San Rafael could touch off a larger movement in other states and cities.
"The San Rafael ban is a very significant event because it will spread," said Robert Proctor, a Stanford University history of science professor. "We're on the downslope of a big curve. Smoking peaked in 1981 with 630 billion cigarettes sold in the United States. Now it's down to 350 billion. And that number will keep on going down until smoking is a distant memory."
San Rafael is the state's ninth municipality to completely restrict smoking in multi-unit housing, said Pam Granger, advocacy manager for the American Lung Association in California. Granger said California was the only state where local jurisdictions have banned smoking in homes.
The ordinance has generally been supported by residents who have spoken at city council meetings, although two smokers came out to oppose the ban on Monday evening.
"This proposed smoking ban actually intends to punish people for what they do in their own homes," Thomas Ruppenthal told the council. "I really feel this is tyranny."
The ordinance also would prohibit smoking on San Rafael's downtown streets - the backdrop for parts of the 1973 film "American Graffiti."
California municipalities have used the report to prohibit smoking in apartments and other multi-family homes. In some cases, the laws apply only to new construction or to just a percentage of a housing complex's units.
But the restrictions have become increasingly strict, and San Rafael's ordinance applies to all homes, new or existing and rented or owned, with shared walls. http://www.huffingtonpost.com/2012/10/16/san-rafael-smoking-ban_n_1968990.html

All new or existing condominium units or residences with a shared wall, [takes in Townhouses and Semis] Knowing that we are approximately 6 months to a year behind the trends in California, How long will it be that we hear about this legislation in Toronto, Ontario?

Will Toronto Landlords be performing "sniff" testing on prospect tenants?
Will Condo buildings go SMOKE FREE?
Is a Smoker's Condo Evaluated at Less than market?  How much?

Have you say.... 

Condo Flipping and Revenue Canada

I did not declare it was rented.  We flipped that unit No one will know.

Condominium Flips and CRA
Peter Clark  partner with Heenan Blaikie’s Taxation Law Practice Group. In his post, Peter discusses the potential tax implications of condominium flips.
 The Problem: We have heard that CRA is undertaking an “audit project” that is targeted at condominium flips. CRA is particularly interested in situations where the initial purchaser of the unit sells the unit without ever moving in or perhaps moves in for a short period of time and then sells the unit.  In either case, CRA will likely argue that the unit did not qualify as a “capital property” or as the purchaser’s “principal residence”.  If CRA is successful in denying capital treatment or principal residence treatment, then 100% of the flip profit is subject to tax as ordinary income.  CRA can also impose penalties and arrears interest if you profited from the transaction and did not report it on your tax return.
Quick flips can also create HST problems. You can lose the HST new housing rebate that you may otherwise have been entitled to.

Damage Control: Taxpayers who realized taxable income on an unreported condominium flip may be able to make a voluntary disclosure to CRA.  This will avoid penalties, but not tax and arrears interest. 

 Around our office recently a number of agents were discussing  University Students being audited on their TAX Credit claims.  One of the audit questions was who received the rent claimed.  Simply Put who was the Landlord?

This creates a number of separate issues;   Builder / Developers are providing purchaser lists when requested to CRA as they are claiming back HST.  It is not difficult in an era of electronic filing to look up the original contract name then cross reference the final purchaser.  ( Each Flip is responsible for LTT).

What is the lesson here?

for Toronto Condominium Investors

If you are concerned about the quality of your investment in Toronto real estate, Why not invest your money in Canada, in Toronto,



We have an excellent opportunity and a buoyant market, with a growing metropolitan area being Toronto, Ontario, Canada.

If you would like the comfort and return on investment from knowing your money is safe and secure. 

Call me at 647 218 2414,

And we will find and income and investment opportunity for you.

When you purchase a home they not only get bricks and mortar, you buy into a community and lifestyle. You create a nest egg for your future.  Lets make our search specific to your community.

Thank you.


http://www.DavidPylyp.com
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Have you had the worst TENANT ever?

Has your Landlord Tenant Experience been the very worst experience in your life?


I've attended many a hearing at the LTT over the last 25 years and I can tell you.....


My Faves?


The tenant that left the [basement apartment] water running to dampen the noise from upstairs. Landlord entered to turn off the water and a dispute started. Result?  Landlord was served with a restraining order to stay away from Tenant's Residence!  (They lived upstairs)


Rent Increases do not apply for units constructed after 1991.  So Market Rent rates prevail.


During the course of an upscale property eviction [non payment]  LTT Tribunal attempted to reserve decision on the Eviction Order and the Tribunal was reminded that their claim limit  would be exceeded if they delayed a ruling.   [Rent was $4,500 per month LTT Limit is $10,000]


What is your worst Tenant Story?


Add them here!

Buying a Condo - Is It really a deal anymore?

Condos are usually considered starter residences with studios, one bedrooms and lofts being most desired. Singles tend to be the predominant purchasing group.  As you gather and collect things for life you also gain a spouse and child. Things constantly change.

We were expecting retirees to downsize and  occupy smaller units, but they are embracing the housing they have and renovating to make their houses suitable for long term occupancy. This includes stair glider systems, wheelchair ramps and lifts at the front entrance plus other bath and lift aids. Walk in and Sit down Shower Conversions.

In a condo we agree to follow the Rules and Regulations. Declare Tenant Occupancy,  you get to do what you want inside not on the outside; Pet Restrictions, No wild parties, no excessive noise, Parking in new buildings is often limited. TTC ridership is encouraged. Auto Sharing?

Many decisions and obligations are made for you  so really you are making a lifestyle selection.  You have the right to pay maintenance fees. The costs for heat and hydro, water and garbage removal, (a house's garbage pick up is included, condo's pay tipping) additional amenities like a concierge can easily run to 58 cents per square foot.  The bigger the building, the better the sharing, but now you have more suites per floor in higher structures. Do you have a Rec center?

What will be the Future Values?

We have had an unprecedented run up in values that has continued unabated since 2000.  (There was  a blip in 2008 that recovered almost immediately in 2009). These exceptional growth years are expected to soften slightly going into 2014.  (PDF from CMHC)  As tenant demand decreases first prices will soften for rents, then prices will begin to adjust for unit costs. Toronto currently has 1.1% vacancy. 

CMHC projects average values at $420 - $495 per square foot as sustainable and supported by the Toronto condo resale market.   If you are buying at higher values you need to examine your addition amenities.

Annual appreciation on condos has been about 5 % per year on average. As buildings age they tend to stay within the rate of inflation for per square foot prices while maintenance fees continue to increase. Mandatory Reserve Fund studies are revisiting the minimum required contribution limits at 10% as inadequate. This is forcing many Condo Corporations to make the hard realistic choices they have evaded. 

So what's my conclusion?

I could never afford to live in the location I have; at High Park over looking Lake Ontario, in a single detached home, (The Opening Video scene is shot from my condo window) If It was not in a condominium. The same very quickly applies to being in the downtown core.  With larger units, 3 bedrooms plus den, does not appear to have sustained demand due to cost. IE 1.5 million plus.

If you want the lifestyle and location, it's great.  As an investment, with the additional expense of upkeep, maintenance fees and services, condos may not deliver the promised return. 


What do you think?

Landlords refused use of Credit Scores by OHRC

Are the banks using Credit scores and payment history to decide your credit worthiness?  The Beacon score decides the interest rate and the risk the lender is willing to take.

Landlord or Investors not allowed to ask credit details?    UMMM  Sorry.  That is just plain wrong.  http://www.ohrc.on.ca/en/book/export/html/4826

Local Tribunals and Commissions start off being well meaning but seriously have exceeded their mandate.

Is it reasonable for the OHRC to impede the [investors] Landlords lawful right to select a Tenant?

Add your comments..

David Pylyp on Google+

License Toronto Landlords

Toronto has not yet joined other municipalities to license Landlords but that may be short lived as the City looks for new sources of Revenue. The average tax appears to be at $825.00 per unit.

Condo Units in a Building are exempt.

Compulsory licensing for small landlords is rapidly spreading throughout Ontario, having come into effect most recently in Waterloo on April 1 and North Bay on May 1. Other Ontario cities which have already implemented a licensing regime are Guelph, London, Mississauga and Oshawa.
The idea appears to be contagious, and many other cities are looking at the concept, including Hamilton and Kitchener.
Waterloo’s licensing regime is typical. Licensed rental properties in homes or townhouses can have no more than four bedrooms, but units in apartment buildings and condominiums are strangely exempt.
Landlords are required to pay application and annual fees of as much as $825 to rent bedrooms in houses and townhomes.
Regulated units are theoretically subject to higher standards for health and safety, and landlords are subject to a criminal records check. The new bylaws set maximum occupancy limits (apparently regulating how many people can sleep in one bedroom), and minimum distances separating one licensed building from a neighbouring one.
Previously required fire inspections have been eliminated, and landlords now have to self-certify compliance with six different bylaws, including, strangely, fence bylaws, as well as building, fire, electrical and health codes.
The ability of Ontario municipalities to implement landlord licensing came into force in 2007 with changes to the province’s Municipal Act, which allowed municipalities to regulate businesses and business transactions.
Many observers — including this one — are concerned that the new regulatory scheme is either a municipal money grab, or a crude attempt to regulate and limit housing for students and large families. Both groups are often classified as low income. In Waterloo, for example, two tenant families with three children each cannot live in houses within 150 metres of each other.
A North Bay city statement about its new bylaw says that the purpose of regulation includes ensuring that rental properties “do not create a nuisance to the surrounding neighbourhoods, and . . . protect the residential density, amenity, character and stability of the residential areas.”
Similar arguments were used to justify restrictive property covenants based on race and religion prior to the 1950s. In a horrendous 1949 decision of the Ontario Court of Appeal, the judges wrote that a restriction on title to land preventing purchase by those of “Jewish, Negro or coloured” race or blood was just to assure that the residents were “of a class who will get along together.”
It seems that in Waterloo, North Bay and elsewhere, today’s students and large families are being treated like yesterday’s minorities.
In fact, the Ontario Human Rights Commission (OHRC) is currently investigating whether rental housing licensing bylaws in North Bay and Waterloo create discriminatory barriers to rental housing.
Bob Aaron is a Toronto real estate lawyer. He can be reached by email at bob@aaron.ca, phone             416-364-9366       or fax 416-364-3818.
Visit the Toronto Star column archives at http://www.aaron.ca/columns for articles on this and other topics or his main webpage at www.aaron.ca.

Are you interested in acquiring tenants for a unit in Toronto?    Give me a call at             647 218 2414      

+David Pylyp

Toronto Sales Update and Forecast

We are rapidly moving to the half year for Toronto Real Estate, and I'd like to take a broader view of whats happening in our City. In downtown Toronto; the commercial sector, The Bank of Nova Scotia Tower sold for a record $ 1.27 Billion. This is the highest value for a Canadian office building and it was sold to Canadian Investors! 





That single sale is a statement about continued confidance about real estate in Canada and the bouyancy of the Canadian Market. The Value of High Rise office buildings and condominiums has been rizing equally because of the low interest rates and strength in the economy. We are seeing increased incidences of multiple offers across all product ranges. In the Toronto West and Etobicoke Region its not uncommon or rare to see a million dollar home in a multiple offer situation.


Last months sales activity was near 11,000 units, That's actually up 11% over last year, Our year over year increase in prices was an average of 5.6%. Loan Approvals are the lifeblood of real estate, From CMHC information that I have, Half of the loans in process, Are for renovation and improvement. We are repairing our houses to make sure we can live in them longer. 


With Condo Sales and Construction, it seems that there is actually a crane everywhere on Toronto's skyline, But they are also moving themselves a little further into the 905, down to Long Branch, off of Brown's Line, into Port Credit and into Oakville. 


Is there a possibility of a Price Adjustment? I can see that... 


Possibly for 2014, When the numbers of absorption cannot handle the number of units available for occupancy, Investors will be looking for tenants, and squeezed to take lower prices, both for rent and for purchase if they decide to sell the units. Detached houses on the other hand see people moving further, for house affordability, The Toronto Land Transfer Tax also plays a part of that purchase decision. 


There are great Mortgage Packages available this summer to move up buyers. If your mortgage is renewing give us a call, we'll see if we can get a better rate for you...  


The Banks won't phone and say   "Hey, we have a better price on this product!" 


For those people who are buying this summer.. There will be an increase in inventory during the summertime, as fewer shoppers are competing for product. This gives you chance to pick through to see whats available and hopefully get a better selection. Give me a call at 647 218 2414 to get started on your home purchase adventure.