Showing posts with label residential-tenancies. Show all posts
Showing posts with label residential-tenancies. Show all posts

Monday, April 08, 2013

Mississauga Condo rental properties - does supply determine market value rent?

Rental properties - Does supply of properties affect their demand
The supply and demand for rental properties determines the market value rent. I've written a little about rental prices in the past at my blog, see one post here.

http://blog.mississauga4sale.com/search/label/rental-market

The supply of condos is quite high at the moment, meaning that this may put downward force on rental rates for condos, not upward. TREB feels that the higher inventory has not had a negative effect on the rental market rents.

The trend for condo rental prices has generally been up for the past 10 years, similar to the sale market. Unfortunately, prices have escalated far more than rental rates and therefore, even with our current low interest rates, you need to put a much larger percentage downpayment now on a condo in order for the rent to carry the carrying costs.

Please let me know if you have any other questions or require further
information.

Thank you,

Mark

Saturday, March 09, 2013

Toronto and Mississauga rental market report shows Strong Growth in Rental Transactions Listings in Q4 for 2012

Below is the report and a chart showing average prices etc. for the rental market in the GTA for the 4th quarter of 2012

The number of rental transactions is up about 13% year over year

One bedroom units are up about 4% to an average of $1626 per month 2 bedroom units up 2% to $2088 per month

TREB feels that although there are more condos on the market for rent they feel there are no indications of oversupply given that rental increases are continuing at or above inflationary figures.

All the best!
Mark




 







Strong Growth in Rental Transactions/Listings in Q4

Toronto, January 11, 2013 - Greater Toronto Area REALTORS(r) reported 3,648 rental transactions for condominium apartments through the TorontoMLS system in the fourth quarter of 2012, up 13 per cent from the 3,234 rentals reported during the same period in 2011. The number of units listed for rent
at some point during the fourth quarter was up by close to 18 per cent on a year-over-year basis.

"The number of rental transactions through the TorontoMLS system has been growing quite strongly over the past year, as many renter households are attracted to investor-held condominium apartments and townhomes that offer modern finishes and amenities in popular areas throughout the Greater Toronto Area," said Toronto Real Estate Board (TREB) President Ann Hannah.

One-bedroom and two-bedroom apartments accounted for the vast majority of transactions. The average one-bedroom rent was up by more than four per cent annually in the fourth quarter to $1,626. The average two-bedroom rent was up by almost two per cent to $2,088.

"The rental market became better supplied in the fourth quarter compared to the same period in 2011 as growth in listed units outpaced growth in sales. With strong new condominium apartment completions over the past year, investors with a longer term investment horizon chose to rent their units rather than sell," said Jason Mercer, TREB's Senior Manager of Market Analysis.

"While the condo rental market became better supplied in the fourth quarter, there are no indications of oversupply, given that rent increases continued at or above the rate of inflation," continued Mercer.

Thursday, March 03, 2011

Month to Month Leases Advantage or Disadvantage?

Sometimes landlords feel that they are in a disadvantaged situation when a tenant decides to change their lease from an annual term to a month to month term.

The only way that a landlord is 'disadvantaged' is that the tenant could give notice at any time during this year or the next 5 years and you have no recourse but to let them out of the lease.

Tenants do these types of things because they sometimes 'perceive' that this is a better deal for them in the event that they want to move or find something to purchase during the year, they are no longer locked into a 1 year term.

A Month to Month lease can often be a far better situation for the landlord because should you ever wish to move back into the property you do not have to wait until the end of the lease and only have to give 90 days notice and then tenant has to leave, by law. Or, at anytime you can now put the property up for sale and sell with a 90 day closing and again you do not have to wait until the end of the lease and the tenant has to move out, by law.

You are also in the same position as increasing the rent.

The Residential Tenancy Act is more in favour of the tenant and the tenants rights and security of tenancy is one of the key's to the Act. This means that when a tenant has a lease, they are secure in that lease, no matter what (except for major renovations and a few other unusual situations) and can stay in the property at least until the agreed to end of lease.

I have some information on my site:

http://www.mississauga4sale.com/Landlord-Tenant-Residental-Tenancy-Act.htm

and

http://www.mississauga4sale.com/Landlord-Tenant-Board-FAQ-2007.htm

You may browse to the government site to find http://www.ltb.gov.on.ca/

and shows all the forms and information regarding the law for landlords and tenants

Please let me know if you have any other questions or require further information.

Thank you,

Mark

Saturday, April 17, 2010

Landlord Services Property Management Tenant Matters

You may require Landlord Services for Property Management of your investment property here in Mississauga. I can help you collect rent from Tenants, manage the property, pay bills, and legal action on your behalf against bad tenants

You may want to read about

Read more about:Homes for Sale

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Homes for Sale

Wednesday, December 23, 2009

Rental Market Conditions Soften reports CMHC

This is the latest report from CMHC on rental condtions in the GTA

Rental Market Conditions Soften

The Greater Toronto Area (GTA) rental market experienced softer conditions in 2009. The average vacancy rate for purpose-built rental apartments rose by a full per centage point this year to 3.1 per cent. Several demand and supply factors contributed to the higher vacancy rate, including a rebound in homeownership demand, youth job losses, moderate immigration, more purpose-built rental apartments and a greater number of condominium apartment completions.

Demand Factors

Ownership Demand Rises

A rise in homeownership demand this year has reduced demand for rental accommodations. After starting off the year slow, sales levels in the GTA rebounded quickly over the spring and summer. Sales in both the existing and new home markets will surpass 2008 levels. For the most part, the past decade has shown us a positive relationship between homeownership demand and rental vacancies – when sales go up, vacancies rise as well.

A major reason for the shift towards owning this year is due to improved affordability conditions. Thanks to very low borrowing costs, the average monthly mortgage payment for a home in the GTA is down compared to 2007 and 2008. This has reduced the fi nancial commitment for households to move from renting to owning this year, prompting more renters to make their fi rst home purchase.

Information gathered from CMHC’s Renovation and Home Purchase Survey confi rms that a greater number of fi rst-time buyers are entering into homeownership as a result of the improved affordability conditions. First time buyers represent 57 per cent of intending purchasers this year versus a 33 per cent share that bought in 2008.

Younger Workers Lose Jobs Employment losses this year have mostly affected younger workers.

Since the average age of a fi rst-time buyer in Toronto is approximately 35, rental demand is largely driven by the under 35 workforce. Census data indicates that a quarter of younger workers in Toronto are employed in the manufacturing and retail trade sectors. The manufacturing sector has shed nearly 75,000 jobs this year while employment within the retail trade sector has been trending down for some time.

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987

(
BUS 905-828-3434
2
FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

Tuesday, December 22, 2009

GTA Toronto Apartment Vacancy Rate CMHC


This is the latest information from CMHC on apartment vacancy rates in the GTA




Highlights


􀂄 The average apartment vacancy rate in the GTA increased to 3.1 per cent in 2009.


The average fixed sample rent for a two-bedroom apartment rose by 2.1 per cent.


􀂄 Renter demand moderated due to improved homeownership affordability and a soft youth labour market.


􀂄 The vacancy rate will edge up to 3.3 per cent next year as improvements in renter demand will be outweighed by a rise in rental supply.



I hope this finds you Happy and Healthy!


All the Best!


Mark


A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987

(
BUS 905-828-3434
2
FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com



Sunday, October 25, 2009

Rental Properties in Mississauga and the GTA

I was asked:

Hi there,

Do you update your rental list regularly on your website? I have been back many times to check but everything listed says it is already rented. Please advise how often this is updated so that I know when to check

Thanks

L.

Hi L.
Yes, I update it all the time. You must be going to an older page.
You need to browse to this page http://www.mississauga4sale.com/listings.htm and near the bottom are the rentals
or you can click the link near the top that says
Are you looking for Rental Listings?
and this will automatically take you to the bottom of the page referenced at
I hope this helps.
What are you looking for, I have 4 rental properties right now available
Thank you,
Mark

Friday, October 23, 2009

Leasing and new to the country, how can you secure a tenancy?

I have many requests for rental properties from people who are new to the country. They are new immigrants and want to lease for one year, and people ask me how I would handle this because they have no Canadian credit check (none), employment (none), but they have enough money to rent for the next for year
My answer is in these cases tell these people that they will probably have to put up first and maybe last 3 or 4 months upfront to secure a rental
I've had some pay for the entire year upfront

You could also have a Guarantor , someone who lives here now
Hope this helps
Mark

Thursday, February 05, 2009

TREB report on Rental Market in GTA

This is the quarterly report by the Toronto Real Estate board with regards to rental property transactions over the past quarter

Highlights are:
  • there were 3433 rental transactions in the last quarter, a 30% increase over the same period in 2007
  • condominium apartments make up the bulk of rental dwellings in downtown Toronto and downtown Mississauga

West Area

• Transactions rose 30% to 837 units, due in part to listings near Mississauga City Center.

• 699 condominium apartments were rented, up 33 percent. Average rents trended upward in two out of four categories (one and three bedroom units). Two bedroom rents fell marginally to an average of $1,611 per month.

• The West districts remained TREB’s most active area for townhouse rentals, with 138 leased over the past four months. Two-bedroom units rented for an average of $1,502 per month, down two percent. Three-bedroom units rented for an average of $1,555 per month, down one percent from last year.


The full release is below
Thank you,
Mark



Between September 1, 2008 and December 31, 2008, Toronto Real Estate Board (TREB) Members reported 3,433 rented condominium apartments and townhouses in the Greater Toronto Area.
This represented a 30 per cent increase over the 2,635 transactions recorded during the same time frame in 2007. A good part of this increase likely came from rental listings in newly completed condominium apartment buildings containing investor-owned units.


"The increasing strength of the rental market combined with low interest rates and reasonable home prices mean that now could be an excellent time to purchase an investment property," said Maureen O'Neill, President, Toronto Real Estate Board.

"Given the demand for rental units, tenants can cover some of the owner's operating costs for an investment property, while property owners look forward to a healthy return in the market value in the long term."

Condominium apartment rents on an annual basis rose for one, two, and three bedroom types during the September to December period. Two bedroom units, for example, rose two per cent to $1,895 per month.

"Investor-owned condominium apartments have become an increasingly important component of the GTA rental market," according to Jason Mercer, Senior Manager Market Analysis.

"Very few purpose-built rental apartments have been completed in the GTA over the past few years. Many renters searching for apartments with modern finishings and amenities have been attracted to rental condominium apartments listed by TREB Members on the TorontoMLS system."



---------------------------------------------------------------------------
Total Av. Rent Av. Rent Av. Rent Av. Rent
Condo Apt. Bachelor 1-Bedroom 2-Bedroom 3-Bedroom
Units
Rented
---------------------------------------------------------------------------
Sept-Dec 2,404 $1,232 $1,451 $1,858 $2,011
'07
---------------------------------------------------------------------------
Sept-Dec 3,152 $1,194 $1,485 $1,895 $2,056
'08
---------------------------------------------------------------------------
% Change +31% -3% +2% +2% +2%
---------------------------------------------------------------------------
Source: Toronto Real Estate Board
---------------------------------------------------------------------------

Read more about:Homes for Sale

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Homes for Sale

Thursday, December 04, 2008

Residential Tenancies Act (RTA) in Ontario Summary and Explanation

I posted this page on my website last week, but thought it would be a good idea to blog about it.

This is an important issue when it comes to lanlord and tenant issues and The Residential Tenancies Act is now the law in Ontario.

Statutory law for residential tenancies in Ontario now comes under The Residential Tenancies Act (2006), replacing the Tenant Protection Act.

This new statute became effective on January 21, 2007

The major changes under the residential tenancies act (2006) effective January 31, 2007 are

  • The Landlord and Tenant Board is responsible for all matters regulated under the residential tenancies act, there is a local office here in Mississauga and Toronto
  • The landlord must give new tenants a pamphlet with information on the responsibilities of landlords and tenants, the role of the Landlord and the Tenant Board and contact details for the board. The pamphlet is available through the Landlord and Tenant Board or at this link: http://www.ltb.gov.on.ca/graphics/249749.pdf
  • The landlord can apply to the Landlord and Tenant Board for any justifiable increase in rent by more than the rent control guideline, if taxes, charges, or utilities have increased. If utility costs or taxes go down, the rent must also go down.
  • IF the rent increase application is for capital expenditures or security services, there is a limit or three percent above the guideline for a maximum of three years. Once the capital expenditure is fully paid for, the rent must go down for any tenants who were living there at the time of the increase.
  • At a hearing for a rental increase above the guideline, the board can decide to deny or delay the rent increase if there are serious outstanding maintenance issues for work orders on the property
  • The annual rent increase guideline is based on the Ontario Consumer Price Index (CPI), which is the rate of inflations.
  • The rate of interest that a landlord must pay to a tenant on a last month's rent deposit every year is the same as the annual rent increase guideline and landlords can use the interest to top up the last month's rent to keep it current.
  • There is a shorter eviction process for tenants who cause wilful or excessive damage to a rental unit or building. This shorter process also applies to tenants who cause a disturbance in a small rental building where the landlord also resides. The notice period to the tenant is shortened to 10 days from the previous 20 days. Landlords can apply to the board for an eviction notice immediately after serving the notice.
  • Except for a notice for non-payment of rent, when a notice of termination has been served on the tenant, the landlord must apply to the board for an order terminating the tenancy not later than 30 days after the date specified in the notice of termination.
Even thought het Residential Tenancies Act has replaced the Tenant Protection Act, the bulk of the legislation regarding notice periods for termination remains unchanged.

You may find additional information regarding the Landlord and Tenant Board, all of their forms and information is available online at:

http://www.ltb.gov.on.ca/en/index.html

You can read more about this at my website too:
http://www.mississauga4sale.com/Landlord-Tenant-Board-FAQ-2007.htm

This article above is shown at this page of my site:
http://www.mississauga4sale.com/Landlord-Tenant-Residental-Tenancy-Act.htm

Please email me if you have any further questions or require information.

Thank you,
Mark

Monday, October 27, 2008

fourth set of blogger labels

Toronto Real Estate Board (TREB) Average Prices and Graph

For more information please contact A. Mark Argentino

A. Mark Argentino, Broker, P.Eng.,
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc., Brokerage
2691 Credit Valley Road, Suite 101, Mississauga, Ontario L5M 7A1

BUS. 905-828-3434
FAX. 905-828-2829
E-MAIL: mark@mississauga4sale.com
Website: Mississauga4Sale.com

Sunday, June 29, 2008

Structuring & Negotiating Commercial Leases

These are details to Structuring & Negotiating Commercial Leases.

Topics covered include:
- Other parties involved: Guarantor, Lender, Title insurance company, Attorney
- Understanding the details of your business plans determines the lease
- Long term implications of your agreements
- The relationship with the landlord: advantages & disadvantages
- Premises, Expansions, & appurtenant rights
- Negotiating the expenses: rent, operating expenses, real estate taxes and percentage rent
- Maintenance obligations
- Avoiding double-counting: increases in basic rent and contributions toward the landlords operating expenses

Samples of the types of questions answered in the Video Leadership Seminar include:
- Beside the landlord and the tenant, what other parties may be involved in the lease?
- What are the most important business considerations for the tenant to keep in mind as it enters the lease negotiations?
- How can the lease negotiations be made most efficient and mostly likely to succeed?
- Which terms have the greatest liability exposure for the companies signing the lease?
- What calculations are used to assess financial terms of the lease? What results indicate a term should be avoided?
- What strategies and tactics are proven successful for each key area of the lease?

For more information please email me

Read more about:Homes for Sale

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Homes for Sale

Wednesday, June 18, 2008

CMHC reports on rental market

Report Highlights
• The average apartment vacancy rate in the GTA was unchanged at 3.2 per cent
in October 2007. Average same-sample two-bedroom apartment rents
increased by 1.2 per cent.
• Market conditions remained similar to 2006 because new renter household formation
was offset by a movement of existing renter households into homeownership.
• The rental market will experience little change in 2008, with the average
apartment vacancy rate at 3.5 per cent and average rents growing by less
than the rate of inflation.

Read more about:Homes for Sale

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Homes for Sale

Tuesday, June 03, 2008

CMHC reports on National Vacancy Rates

National Vacancy Rate Unchanged at 2.6 Per Cent in October 2007

The average rental apartment vacancy rate in purpose
built apartment buildings with three or more units in
Canada's 34 major centres1 was unchanged at 2.6 per
cent in October 2007 compared to a year ago. The
centres with the highest vacancy rates in 2007 were
Windsor (12.8 per cent), Saint John (5.2 per cent)
and Moncton (4.3 per cent). The centres with the
lowest vacancy rates were Kelowna (0.0 per cent),
Victoria (0.5 per cent), Greater Sudbury (0.6 per
cent) and Saskatoon (0.6 per cent).
Strong employment growth, solid income gains, and high
immigration levels continued to support strong demand
for both ownership and rental housing. The rising gap
between the cost of home ownership and renting also
kept demand strong for rental accommodation. However,
modest rental construction and increased competition
from the condominium market offset the strong
rental demand, keeping the rental apartment vacancy
rate unchanged from a year earlier. Condominiums are
a relatively inexpensive type of housing for renters
moving to home ownership. Also, some condominium
apartments are owned by investors who rent them out.
Therefore, high levels of condominium completions have
created competition for the rental market and have put
upward pressure on vacancy rates.
The highest average monthly rents for two-bedroom
apartments in new and existing structures were in
Calgary ($1,089), Vancouver ($1,084), Toronto
($1,061) and Ottawa ($961), followed by Edmonton
($958) and Barrie ($934). The lowest average monthly
rents for two-bedroom apartments in new and
existing structures were in Trois-Rivières ($487) and
Saguenay ($490).
Year-over-year comparison of rents can be slightly
misleading because rents in newly built structures
tend to be higher than in existing buildings. However,
by excluding new structures, we can get a better
indication of actual rent increases paid by tenants.
The average rent for two-bedroom apartments in
existing structures increased in all major centres
except Windsor where the average rent in existing
structures was essentially unchanged for a second
consecutive year. The largest rent increases occurred
in markets where vacancy rates were quite low.
Rents in existing structures were up 18.8 per cent in
Edmonton, 15.3 per cent in Calgary, 13.5 per cent in
Saskatoon, 7.7 per cent in Greater Sudbury and 7.0
per cent in Kelowna. Overall, the average rent for
two-bedroom apartments in existing structures
across Canada's 34 major centres increased by 3.5
per cent between October 2006 and October 2007.
CMHC's October 2007 Rental Market Survey also
covers condominium apartments offered for rent in
the following centres: Vancouver, Calgary, Edmonton,
Toronto, Ottawa, Montréal, and Québec. In 2007,
vacancy rates for rental condominium apartments
were below one per cent in four of the seven centres
surveyed. Rental condominiums in Vancouver had
the lowest vacancy rate at 0.2 per cent. On the other
hand, Québec and Montréal registered the highest
vacancy rates for condominium apartments at 2.4 per
cent and 3.8 per cent in 2007, respectively. The
survey showed that vacancy rates for rental condominium
apartments in 2007 were lower than vacancy
rates in the conventional rental market in Vancouver,
Calgary, Toronto and Ottawa, the same in Edmonton,
and higher in Québec and Montréal. The highest
average monthly rents for two-bedroom condominium
apartments were in Toronto ($1,533), Vancouver
($1,435), and Calgary ($1,217). All surveyed
centres posted average monthly rents for twobedroom
condominium apartments that were higher
than average monthly rents for two-bedroom private
apartments in the conventional rental market in 2007.

Read more about:Homes for Sale

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Homes for Sale

Sunday, March 09, 2008

Do you need the services of an Independent Fire Code Inspector?

Tips to getting your possible non-compliant properties inspected by an independent fire code inspector

Today most Fire Departments are taking non-compliant cases straight to prosecution.

Compliance is now expected and failure to comply can result in fines and prison terms.

Last year the Office of The Fire Marshal starting promoting a Zero Tolerance Policy.

They are now putting on courses for fire department personal entitled "Walk Your Talk To Zero Tolerance" a one-day workshop enhancing a stronger enforcement approach towards compliance with the Fire Code. These courses are to explain the legislation, how to commence Court Proceedings and processes necessary for successful prosecutions.

This is why you need the services of an Independent Fire Code Inspector who is fully conversant with Fire Code issues. He will offer advice on the best method of attaining compliance before the authorities become involved, thereby eliminating the risk of prosecution and fines of up to $50,000.

To-day the services of a Home Inspector are considered a necessary part of any real estate transaction.
So too must the services of an Independent Fire Code Inspector be considered necessary for any transactions involving multi-unit income properties.

Other properties, such as retrofit addresses any building with 2 or more apartments, from the house with a basement apartment right up to the apartment building.

So for all your Retrofit needs remember The Fire Guy
"Who is here protecting you from Fire and The Fire Departments"

This article is courtesy of The Fire Guy

Search the MLS or read more about Interest Rates, Power of Sale Properties, Price Trends and more at my website. Homes for Sale

Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate

Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
RE/MAX Realty Specialists Inc.

Providing Full-Time Professional Real Estate Services since 1987
( BUS 905-828-3434
2
FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

Tuesday, February 12, 2008

Where are the World's Most Expensive Real Estate Rental Markets?


World's Most Expensive Rental Markets



Homes in Tokyo and Lndon have always been expensive, but the dollar's recent plunge has made these and other pricey markets particularly daunting for American expatriates, businesses and anyone unlucky enough to receive a salary in greenbacks.

That's what's happening in Hong Kong. There, in dollar-adjusted terms, a two-bedroom, unfurnished apartment runs $6,398 a month. By comparison, $4,000 a month for Moscow and $4,102 for Tokyo look cheap.
_________
Hong Kong$6,398 a monthPrices on the Peak and in central Hong Kong, home to much of the city's financial centers, are among the highest in the city. Due in large part to its friendly tax rates, Hong Kong attracts businesses from all over the world, with a large sector of its Class-A rental market catering to expatriates and corporate relocation. In 2006, rents were $4,898, according to Mercer.
_________
To find these and other such markets, we used data from Mercer Human Resource Consulting, which based its numbers on 2007 data for rental properties in the Class-A market. Though it means different things in different places, a Class-A designation roughly equates to a unit in high-end, unfurnished building in a good part of town. The measures are taken at the median level, so as to exclude the ridiculous costs of premium apartments in neighborhoods like London's Belgravia or on Central Park in New York.

In Depth: World's Most Expensive Rental Markets


Rents were adjusted from local currencies to dollars. In 2007, the dollar hit a record low against the euro after falling 11% in 2006. Against the pound, the dollar was at a 25-year low in 2007. Against both currencies, the greenback remains in the doldrums.


Business Burden
American companies with offices in London feel an especially painful pinch. While rental prices there increased at a modest rate, when you combine subtle rate increases with the dollar's decline, you're left with a 30% jump in rent from 2006 to 2007. Given that Americans can't seem to afford 3%-6% increases in mortgage payments, many expatriates are going to have to move into slightly cheaper digs, or perhaps consider a move to Leeds.


But the mighty London market isn't even the fastest growing. Moscow rents have jumped by 33% when adjusted for the dollar. And in a market that's still relatively cheap, such as Bangalore, India, rents have increased 87% from last year. This is the result of the dollar's position against the Indian rupee and the rapid economic growth and sophistication of the Bangalore rental market, which, like the sales market, has surged along with the overall Indian economy.


This spells trouble for businesses dealing in dollars. That's because, unlike individual international buyers who are snapping up properties in New York and Los Angeles based on the cheap exchange rate, businesses don't quickly shift countries of operation based on the home currency's purchasing power. Instead, they have to absorb inflated housing costs for executives and temporarily relocate employees.


Large, multinational companies feel the pinch less than small businesses, for whom anywhere from a few hundred to a thousand a month is a lot to fret over.


Since 2006, monthly rents in Hong Kong, as measured by Mercer, grew from 4,898 to $6,398. In Moscow, they rose $1,000, and in London they jumped about $900.


What's the rental market like where you live? Weigh in. Add your thoughts in the Reader Comments section below.


Of course, American companies that pay their overseas employees in local currencies are relatively immune. This is the case with Coca-Cola's overseas facilities, which are locally run and operated. If foreign subsidiaries are making money, the exchange rate doesn't hurt them.


"We make our money locally," says Crystal Walker, a company spokeswoman, explaining that Coke employees affected by currency swings represent "a drop in the bucket," as a small proportion of the company's 71,000 employees are based overseas.


For a company with less static international operations, like Exxon Mobil, the problems associated with currency rates can prove difficult, whether it's the yen, the dollar or the next decade's slumping currency.


"Our business is such that foreign exchange is always an issue," says spokesman Alan Jeffers. "Sometimes you win, and sometimes you lose."


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A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


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RE/MAX Realty Specialists Inc.

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Homes for Sale

Tuesday, January 08, 2008

Rental Market Report Greater Toronto Area from CMHC

Rental Market Report Greater Toronto Area

Report Highlights
  • The average apartment vacancy rate in the GTA was unchanged at 3.2 per cent in October 2007. Average same-sample two-bedroom apartment rents increased by 1.2 per cent.
  • Market conditions remained similar to 2006 because new renter household formation was offset by a movement of existing renter households into homeownership.
  • The rental market will experience little change in 2008, with the average apartment vacancy rate at 3.5 per cent and average rents growing by less than the rate of inflation. Rental Market Report - Greater Toronto Area - Date Released: 2007
  • Canada Mortgage and Housing Corporation 2 ment vacancy rate and same-sample rents grew below the rate of inflation. It is important to note that there was variation in rental market conditions across the different sub- markets of the GTA. Market Conditions in Line With 2006
  • Rental market conditions in 2007 remained in line with those experienced in 2006. There was no change in the 3.2 per cent average apart-
  • Several factors contributed to stability in vacancy rates in 2007. Increased home ownership demand, especially from the first-time buyer segment of the market, resulted in a substantial number of households vacating their rental accommodation

  • Rental Market Report - Greater Toronto Area - Date Released: 2007 Canada Mortgage and Housing Corporation 3 to the CMHC Renovation and Home Purchase Survey undertaken in the first half of 2007, 60 per cent of households who had already purchased a home or were planning to do so this year were buying for the first time. On net, the pool of first- time buyers has grown in comparison to 2006.

    Positive local labour market conditions in the GTA, including steady growth in jobs and earnings, coupled with low borrowing costs and a greater diversity of borrowing products contributed to the increase in first-time buyer activity. In addition, a greater supply of affordable housing types both low-rise and high-rise has provided more options for first time home buyers. Overall, housing remained affordable for many home buyers, including those making the move from rental to home ownership. On average, the required income to carry a mortgage remained below the average 2007 household income in the GTA. to move into a home of their own. Growing youth employment and sustained immigration into the GTA continued to attract individuals and families to the rental market, serving to moderate the impact of the increased movement to home ownership. In addition, fewer condominium apartment completions kept some first time buyers in their rental units for longer than expected.

    Factors both diminishing and contributing to rental demand are discussed below. Strong Ownership Demand

    Strong sales of existing homes and new homes in the GTA in 2007 were a drag on rental demand over the past year. Existing home sales will reach a record of 95,000 in 2007 and new home sales will remain strong at over 40,000. First-time buyers were the key factor underlying the strength in the home ownership market. According Condo Completions Cooled in 2007

    While the increase in demand for ownership housing was the key factor keeping vacancy rates in the GTA elevated this year, a dip in condominium apartment completions did temper the movement of first-time buyers into home ownership.

    In addition, fewer investor-held condominium apartments than expected came on line to compete with purpose-built rental apartments for tenants.

    While strong condominium apartment starts in 2005 and 2006 resulted in a record level of units under construction, very few apartments reached the completion stage this year. Through September, condominium apartment completions reached only half the level achieved through the first three quarters of 2006.

    Youth Employment Increased

    An important factor tempering the impact of home ownership on rental demand in 2007 was an increase in youth employment (individuals aged 15 – 24). This demographic tends to rent initially upon gaining employment and leaving their parental home.

    Overall GTA labour market conditions remained tight in 2007, with the unemployment rate remaining between 6.5 and 7.0 per cent. Young people continued to benefit from tight labour market conditions, especially through the creation of full-time jobs. Full-time jobs for More Renter Households Moving to Ownership in 2007

    Read more about residential tenancies in Ontario


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    Thank you for reading my blog and if there is anything else I can help you with please don't hesitate to contact me,

    Mark

    A. Mark Argentino
    P. Eng. Broker
    Specializing in Residential & Investment Real Estate


    Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS
    RE/MAX Realty Specialists Inc.

    Providing Full-Time Professional Real Estate Services since 1987

    ( BUS 905-828-3434
    2
    FAX 905-828-2829 ÈCELL 416-520-1577
    E-MAIL : mark@mississauga4sale.com
    8 Website : Mississauga4Sale.com