Showing posts with label renting. Show all posts
Showing posts with label renting. Show all posts

Wednesday, January 29, 2014

Ontario Apartment Vacancy Rates are up slightly according to CMHC

The Ontario Apartment Vacancy Rates are up slightly according to CMHC from early 2013

According to Canada Mortgage and Housing Corporation’s (CMHC) Spring 2013 Rental Market Survey, Ontario vacancy rates edged higher to 2.6 per cent in April 2013, up from 2.3 per cent in the spring of 2012.

With the universe of purpose-built rental units remaining unchanged, demand factors were entirely at play impacting vacancy rates this spring. Vacancy rates moved higher for bachelor (2.7%), 1-bedroom (2.7%) and 2- bedroom (2.5%) apartment units while remaining stable for three bedroom (2.2%) units.

See the image below for vacancy rates across the province

Mark


 


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

Thursday, April 18, 2013

Real Estate Rental Market Update GTA and Mississauga 1st Quarter 2013

This is the latest report regarding rentals for the GTA in the first quarter of 2013

Number of rentals are up and so are average rental prices. see the full report below.



GTA REALTORS(r) RELEASE RENTAL MARKET REPORT

TORONTO, April 16, 2013 - Greater Toronto Area REALTORS(r) reported a substantial increase in the number of condominium apartments rented through the TorontoMLS system in the first quarter of 2013.

There were 4,277 condominium apartments rented - up by almost 13 per cent on a year-over-year basis.

The total number of rental properties listed on TorontoMLS during the first quarter was up by more than 25 per cent year-over-year to 8,816.

"Demand for rental condominium apartments remained strong during the first quarter of the year. People looking for higher end rental accommodation, including those who have temporarily put their decision to purchase on hold, were likely driving rental activity during the first three months of the year," said Toronto Real Estate Board President Ann Hannah.

The average monthly rent for one-bedroom condominium apartments in the first quarter was $1,597 - up by almost four per cent compared to Q1 2012. The average two-bedroom condominium apartment rent was up by slightly more than one per cent over the same period to $2,114.

"The rental market has remained quite tight over the last year. Competition between renters has been strong enough to drive increases in average rents.

However, growth in the number of units listed outstripped growth in the number of rental transactions in the first quarter, suggesting that renters benefitted from more choice. If this trend continues, the pace of rent growth could moderate," commented Jason Mercer, TREB's Senior Manager of Market Analysis.














I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987
BUS 905-828-3434
FAX 905-828-2829 CELL 416-520-1577
mark@mississauga4sale.com
Mississauga4Sale.com

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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.

Wednesday, March 06, 2013

Bank of Canada Interest Rate announcement March 6, 2013

The Bank of Canada just announced they are keeping the prime rate at 1% meaning that the prime lending rate stays at 3%

This is historic news, this is the longest stretch that the Bank of Canada has kept it's rate this low.  It's been at 1% since the fall of 2010!

Read more at this link

See current rates at this link

Full aannouncement is below

Toronto Real Estate Board (TREB) Average Prices and Graph


Ottawa - The Bank of Canada today announced that it is maintaining its target for the overnight rate at 1 per cent. The Bank Rate is correspondingly 1 1/4 per cent and the deposit rate is 3/4 per cent.




The global economic outlook is broadly consistent with the Bank’s projection in its January Monetary Policy Report (MPR). Global financial conditions remain stimulative, despite recent volatility. In the United States, the economic expansion is continuing at a gradual pace and private sector demand is gaining momentum. Fiscal drag in the United States over the next two years remains consistent with the Bank’s January projection, although it is likely to be more front-loaded as a result of sequestration cuts. The recession in Europe continues. Growth in China has improved, while economic activity in some other major emerging economies is expected to benefit from policy stimulus. Commodity prices have remained at historically elevated levels, although persistent transportation bottlenecks are leading to continued discounts for Canadian heavy crude oil.



Canada’s economy grew by 0.6 per cent at annual rates in the fourth quarter of 2012, with solid growth across most domestic components of GDP offset by a sharp reduction in the pace of inventory investment. The Bank expects growth in Canada to pick up through 2013, supported by modest growth in household spending combined with a recovery in exports and solid business investment. With a more constructive evolution of imbalances in the household sector, residential investment is expected to decline further from historically high levels. The Bank expects trend growth in household credit to moderate further, with the debt-to-income ratio stabilizing near current levels. Despite the expected recovery in exports, they are likely to remain below their pre-recession peak until the second half of 2014 owing to restrained foreign demand and ongoing competitiveness challenges, including the persistent strength of the Canadian dollar.



Total CPI inflation has been somewhat more subdued than projected in the January MPR as a result of weaker core inflation and lower mortgage interest costs, which were only partially offset by higher gasoline prices. Low core inflation reflects muted price pressures across a wide range of goods and services, consistent with material excess capacity in the economy. Core and total CPI inflation are expected to remain low in the near term before rising gradually to reach 2 per cent over the projection horizon as the economy returns to full capacity and inflation expectations remain well-anchored.



Reflecting all of these factors, the Bank has decided to maintain the target for the overnight rate at 1 per cent. With continued slack in the Canadian economy, the muted outlook for inflation, and the more constructive evolution of imbalances in the household sector, the considerable monetary policy stimulus currently in place will likely remain appropriate for a period of time, after which some modest withdrawal will likely be required, consistent with achieving the 2 per cent inflation target.


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

Friday, November 11, 2011

What happens if I want to break my lease?

I had a question from a tenant about breaking a lease and wanted to share my answer with you.

What happens if I want to break my lease?

The question was: I wanted to ask you what are the consequences to breaking the lease? I didn't see anything specific on the lease we have with the landlord and wanted to know.

Thanks

J

My answer was:
Hi J,

There are a few options available to you.

Typically, you can't break a lease, unless you and landlord agree to penalty which is typically 2 months rent. I've even seen more than this amount, but 2 months is typical. The reason for a penalty is that it causes much aggravation for the landlord plus the landlord needs to re-rent the unit and this typically costs the landlord one month rent plus 13% HST on the one month commission so the landlord needs to recover their costs to re-rent the unit.

The whole point of you signing a 1 year lease or longer is so that you have 'security of tenancy' meaning that you cannot be removed from the unit during the term of your lease (unless for something like a flood or fire or extreme emergency major renovation, but you still have first right to re-enter the unit once it's ready) AND your rent is fixed for the duration of the term. These are two very important points in your favour as a tenant.



There are many others, but these are the major reasons for a fixed term lease.


The other option to get out of your lease is to assign the lease to someone else who will live in the unit or for you to sublet the unit to someone else. If you find a tenant who wants to live in the unit for the balance of your lease and the landlord agrees to accept that new tenant (after a credit and reference check) then that person can move into your unit and the new tenant will pay the landlord, this is s sublet. You are still ultimately responsible for the rent payment if the person who sublets doesn't pay, but that doesn't happen too often.

If you assign your lease to another person and they move into your unit, then your lease is void and you are not responsible any time in the future.

If you leave in the middle of your lease, the landlord can easily take you to court, even if you don't attend court, they will obtain a judgment in favour of the rental amount and the landlord can serve that judgment on your place of work and garnish your wages. They can also lien your vehicle and other remedies, I'm not an expert, but these are some of the options available to the landlord.

If you absolutely must break your lease, the best course of action is to give plenty of notice, pay a penalty for breaking the lease early and move on OR stay to the end and give your proper notice.

I hope that this helps!

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

Thank you,

Mark

 

Tuesday, September 20, 2011

Toronto and GTA Real Estate rental market figures September 2011

GTA REALTORS® RELEASE RENTAL MARKET FIGURES

Toronto, September 19, 2011 — Greater Toronto REALTORS® reported 6,933 apartment lease transactions through the TorontoMLS® system in the May through August 2011 period. This represented an 11 per cent increase compared to the same period in 2010.

The number of units listed during the period was also up, but by a lesser rate of four per cent compared to 2010.

“Condominium apartments represent a very important component of the rental housing stock in the GTA. We have seen very little purpose-built rental apartment construction over the past few years. This means that people looking to rent an apartment with modern finishings and amenities have by and large turned to investor-held condominium apartments to meet their housing needs,” said Toronto Real Estate Board President Richard Silver.


Average condominium apartment rents increased for all bedroom types. Average rents for one-bedroom and two-bedroom apartments during the May through August period were up by four and five per cent respectively compared to 2010.


“Growth in apartment rental transactions outstripped growth in the number of units listed. This means that competition between prospective renters increased. The result was higher average rents in comparison to last year,” said Jason Mercer, TREB’s Senior Manager of Market Analysis

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

Tuesday, April 13, 2010

Do You need to get your Rental Property Rented? This is the place

Do You need to get your Rental Property Rented? This is the place


Do you have a rental property that you need help in finding a good quality tenant? I can help.

I am a real estate agent who specializes in helping owners like yourself in finding a good quality tenant who will take good care of your rental property and pay the rent!


For more information, please visit my website and read about my services to help you rent out your investment property or Send Mark an email .




A. Mark Argentino
P. Eng. Associate 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
Website : Mississauga4Sale.com

Would you like a Complimentary & Quick Over-The-Net Home Evaluation ?




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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

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

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, November 24, 2008

Rules you must know when tenants currently occupy the unit we are selling

Landlord and Tenant Issues in Ontario

You will note that there are many important aspects and considerations when it comes to renting out properties. Other real estate agents often inquire regarding any important rules agents must know on listing or presenting a condo when tenants currently occupy the unit?

The short answer is yes. If a single tenant has lived in the condo since June 17, 1998, the condo owner can't evict the tenant and transfer ownership to a new owner. This is called Security of Tenure. Therefore, if you are interested in buying a condo and before you take a listing for a condo, or before showing a client a condo, it's crucial that you know whether the unit currently has tenants and when those tenants moved in.


Of course, a in all instances a landlord may informally request the tenant to leave, and the tenant may agree to do so or they may not leave. However, a landlord cannot require a tenant to agree to end a tenancy, or to sign, at the start of the tenancy, an agreement to end the tenancy at a later date, this is not legal. As well, in Ontario it is an offense for a landlord to illegally lock a tenant out of their rental unit or the building.

If a landlord is convicted in Provincial Court under the Provincial Offenses Act, they could be fined up to $25,000 if the landlord is an individual and 4 times that fine if the landlord is a corporation.

As well in Ontario, if the tenant finds out about Security of Tenure after they move out, they have up to a year to re-claim their tenancy in the condo. If the tenant won't leave or the landlord has to pay the tenant a settlement to leave, the agent is liable to be sued.

In all instances of the situations above, an agent can be held liable by the tenant and the Ontario government for not informing or misinforming the landlord client of the pertinent landlord/tenant laws.

You can learn more about Ontario landlord and tenant law and your responsibilities at my site at:

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

All the best,
Mark

Tuesday, October 28, 2008

Rental Fraud Alert - be Careful!

Please be very careful if you are thinking of renting a property through Craigslist or Kijiji. There are some fraudsters out there preying on people who are thinking of renting. If it seems just too good to be true, it likely is.

One method of checking if the property you are thinking of renting is too inexpensive is to email an agent and ask them to either look up the address on the MLS or to give their opinion of rental value. This is one method of checking.

Please read this press release from the Toronto Real Estate Board below.

All the best,
Mark
Toronto Real Estate Board (TREB) Average Prices and Graph


October 27, 2008 -- A Member, who recently placed a house rental advertisement on Kijiji and Craigslist, has reported that an individual re-issued the same advertisement with his contact information in an attempt to fraudulently collect rental deposits.

The individual advised prospective tenants that he had been transferred to Nigeria on business and as such, the house would be available for rent for four years. He offered to rent the house for a considerably lesser amount than that which the owner had advertised. At least two prospective tenants in the Brampton area were nearly drawn into this scam.

Members are reminded that such occurrences can also be reported to PhoneBusters, the Canadian Anti-Fraud Call Centre managed on a tripartite basis by the Ontario Provincial Police, the Royal Canadian Mounted Police (RCMP) and the Competition Bureau Canada.
PhoneBusters can be reached at 1-888-495-8501 or info@phonebusters.com


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

Tuesday, October 07, 2008

Landlord and Tenants and the current rental marketplace

Good morning,

In light of the current economic crisis happening in the US and now in Canada, the rental market in Mississauga remains very tight. Most rental properties $1500 and under rent within a few days of being listed.

You are always safe when you have a rental property that is located near major amenities, such as The Erin Mills Town Centre or Square One or Heartland and one that shows well and is priced according to market rents. These properties tend to be the first ones that rent, everything else follows suit.

My experience also shows that similar to a property that is for sale, when a rental property shows well, it rents right away and at top value rent.

You cannot go wrong using an agent to list your property for rent. Reasons are many, but mainly because corporate relocation tenants and quality tenants all search rentals through the MLS and with an agent. Thus, if you are only trying to save a months rent by trying it yourself, you reduce your potential marketplace considerably. Quality tenants don't have time to scour the rental sections of the newspapers, they want everything online and my site and mls.ca provide this exposure for you.

Besides, how many agents do you know in Mississauga produce a virtual tour slideshow to market your rental property? Not many. Here is a recent example:
http://www.mississauga4sale.com/listings/5525-Palmerston-Crescent-Streetsville-GO.htm

If you need help with your rental property, please send me an email.

Thank you,
Mark

Tuesday, September 16, 2008

How to calculate if a rental property will carry or not

I had a question on one of my listings, a townhouse listed at $289,900 and let's say the final sale price is $285,000, the question was:

What are the condo fees, taxes and insurance and with 20% down can we make positive cash flow on this property? Thanks W .

My answer is:

Condo fees are $100 per month,
taxes say $200 per month,
with 20% downpayment your payments based upon a $285000 purchase price,
thus say 57000 downpayment, gives you a 228,000 mortgage at 1199 at 4.00% variable rate
your total monthly payments 1199+200+100 equals 1500 per month,
the property would likely rent for 1450 to 1550 per month, so it's right on the line.
Conclusion, this property is perfect for a 20% downpayment as an investment property.
So there you have it, simple calculations.
Thank you,
Mark

Sunday, June 22, 2008

CMHC reports on Rental Market Outlook for 2008

Rental Market Outlook for 2008

Demand for rental housing in 2008
will remain on par with what was
experienced in 2007. The overall
apartment vacancy rate will be 3.5
per cent. The average two-bedroom
rent will increase by 1.5 per cent.
The movement to home ownership
will continue to be a drag on the
rental market, but in a different
fashion. While both existing and new
home sales are forecast to edge
slightly lower next year, first-time
buyers will continue to vacate rental
accommodation in favour of home
ownership. This movement, however,
will be based on a strong increase
in condominium apartment
completions in 2008. More than
double the number of condominium
apartment completions experienced
in 2007 will occur next year. In
addition, investor-held condominium
apartments in the secondary rental
market will attract some renter
households out of the primary rental
market, due to a higher level of
finishings and amenities.
Factors that will continue to influence
the demand for rental include
the following:
• Growth in youth employment
will continue due to tight labour
market conditions;
• Immigration will continue to
trend upward; and
• Rental affordability will continue
to improve as household earnings
outstrip growth in average
rents.
• rented freehold row/town
houses;
• rented duplex apartments;
• rented accessory apartments;
and
• rented apartments which are
part of a commercial or other
type of structure containing one
or two dwelling units.

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.

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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
mark@mississauga4sale.com
8 Website : Mississauga4Sale.com

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


    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

    Monday, April 02, 2007

    What is a second suite in a home in Toronto?


    What is a second suite in Toronto?

    A second suite is a self-contained unit (rental or rent-free) in a single-detached or semi-detached house. Most second suites are basement apartments. They have also been called granny flats, in-law suites and accessory apartments.

    Are second suites new?

    No! In the past, second suites were permitted in some areas of the City (York, East York, and parts of former Etobicoke, North York and Toronto). Some parts of the City have had a long experience with this form of housing. As well, provincial legislation, in force between July 1994 and November 1995, allowed for the creation of second suites in all areas of the province.

    Why has it taken a year for the City's second suites by-law to come into effect?

    In July 1999, City Council adopted the second suites by-law. This by-law was appealed to the Ontario Municipal Board (OMB) by a number of residents' groups and individuals. The OMB held a hearing on the appeals in February 2000. The OMB issued a decision in April approving the City's by-law but directed that two amendments be made. The amendments dealt with: (1) parking provisions in some neighbourhoods in the former Toronto, and (2) building alterations.

    The final by-law was approved by Order of the OMB on July 6, 2000. As a result of the Order, the second suites by-law (including the amendments) is now in effect.

    Where are second suites permitted in the City?

    The new by-law permits second suites in all single-detached and semi-detached homes throughout the new City of Toronto -- with certain conditions.

    What are some of the conditions that apply to second suites?

    Some of the conditions include:

    the second suite must be self-contained with its own kitchen and bathroom.

    the house, including any additions, must be at least 5 years old;

    the floor area of the second suite must be smaller than the remaining unit;

    in most cases, homes with a second suite must have at least 2 parking spaces and parking can be in tandem (one behind the other). There is an exception for parts of the former City of Toronto (R2, R3 and R4 districts) where only 1 parking space is required for a house with a second suite. Please contact the City of Toronto's Urban Planning and Development Services Department to determine if a property is located in a R2, R3, or R4 district.

    Before planning any changes to the outside appearance of a dwelling the homeowner should contact the City of Toronto's Urban Planning and Development Services Department; and

    all new second suites must comply with the Ontario Building Code and require a building permit. Existing second suites must comply with the Fire Code as well as zoning and property standards.

    How can I find out if an existing second suite complies with the regulations?

    The unit will have to be inspected by Fire Department staff. There is a fee for the inspection and you may be required to upgrade the suite to meet the code requirements and other standards. Contact the City's Urban Planning and Development Services Department for more information (see phone numbers below).

    Does the City provide grants or loans to encourage the creation of second suites?

    There is currently no grant or loan program for second suites. The City is discussing the potential for a program with senior levels of government. TREB's Government Relations staff is monitoring this initiative and will inform members if the City implements a program.

    Will a second suite impact property taxes?

    In most cases, there will be little impact on property taxes. A major exception would be where the second suite is created by constructing an addition, thereby significantly adding to the value of a house.

    For specific zoning, property standards, or fire and building code questions please contact the City of Toronto's Urban Planning and Development Services Department:

    East York
    (416) 397-4591

    Etobicoke
    (416) 394-8055


    North York
    (416) 395-7000


    Scarborough
    (416) 396-7071

    Toronto
    (416) 392-7522


    York
    (416) 394-2535


    Article courtesy of TREB www.torontorealestateboard.com

    Read more about basement apartments in Mississauga



    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

    Friday, February 09, 2007

    Age Old Question - Should I Rent or Own??

    Toronto Real Estate Board (TREB) Average Prices and Graph
    Is it better to Rent or Own your home?

    The Benefits of Home Ownership

    Unlike renting, buying a home is an investment that can appreciate over time, giving you more financial security long term. If you are still paying rent to someone else, these numbers may be of interest to you.
    The example that follows is based on these assumptions:

    Anticipated Home Price: $ 200,000 Down Payment: $ 0.00
    Interest Rate: 5.09% Amortization: 25 yr
    Monthly Rent: $1,200 Mortgage Payment: $1,173
    Annual Rent Increase: 3.0% Home Value Increase: 3.0%

    Toronto Real Estate Board (TREB) Average Prices and Graph


    After 5 years, you will have accumulated $54,591 equity in your home. In addition, you will have paid $6,043 less than your rental payments. This chart shows the totals year by year:

    Toronto Real Estate Board (TREB) Average Prices and Graph

    *Calculation results are approximations and are for information purposes only. Actual figures may vary. It assumes all payments are made when due. This does not include any additional home ownership expenses i.e. property taxes, heating costs, and condo fees if applicable. Article courtesy of Scotiabank

    For more information please contact A. Mark Argentino

    A. Mark Argentino Associate Broker, P.Eng.,
    Specializing in Residential & Investment Real Estate
    RE/MAX Realty Specialists Inc.
    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