Buildings for Sale in Toronto

Did you buy your investment property yet?

The market is starting to shift as more and more investors are looking to take advantage of the lower prices for real estate in Toronto.

We saw multiple properties last week go into multiple offers and sell for over asking.

A 4 unit building in Highpark listed for $1.3M got sold for $1.55M and another 7 unit building got a bully offer and was sold before it’s offer date.

This is contrary to what we are seeing being played out in the market.

What does this mean for you?

If you’re in the market for a property, get out there and see what’s available. There are some good deals still to be had (think $300K per unit pricing) and you should go take a look at them.

If you are in the market and need a second opinion, please reach out to me and I would be more than happy to assist you!

Happy Investing!

Market Watch – August 2017

September 6, 2017 — Toronto Real Estate Board President Tim Syrianos announced that Greater Toronto Area REALTORS® reported 6,357 home sales through TREB’s MLS® System in August 2017. This result was down by 34.8 per cent compared to August 2016.

The number of new listings entered into TREB’s MLS® System, at 11,523, was down by 6.7 per cent year-over-year and was at the lowest level for August since 2010.

“Recent reports suggest that economic conditions remain strong in the GTA. Positive economic news coupled with the slower pace of price growth we are now experiencing could prompt an improvement in the demand for ownership housing, over and above the regular seasonal bump, as we move through the fall,” continued Mr. Syrianos.

The average selling price for all home types combined was $732,292 – up by three per cent compared to August 2016. This growth was driven by the semi-detached, townhouse and condominium apartment market segments that continued to experience high single-digit or double digit year-over-year average price increases.

The MLS® Home Price Index composite benchmark, which accounts for typical home types throughout TREB’s market area, was up by 14.3 per cent year-over-year in August. The fact that MLS® HPI growth outstripped average price growth, points to fewer high-end home sales this year compared to last.

“The relationship between sales and listings in the marketplace today suggests a balanced market. If current conditions are sustained over the coming months, we would expect to see year-over-year price growth normalize slightly above the rate of inflation. However, if some buyers move from the sidelines back into the marketplace, as TREB consumer research suggests may happen, an acceleration in price growth could result if listings remain at current levels,” said Jason Mercer, TREB’s Director of Market Analysis.

Market Watch – August 2017

What do we have for sale right now?

Here are the apartment buildings and other investment properties we have for sale at the moment

If you would like to find a different property or more information or to book an appointment to view these listings, please reach out to us right away!  We love your feedback so feel free to leave your comments in the section below.

 

What Investment Properties we have for sale right now…

Here’s a list of investment properties that we are currently working on and are available for sale…

We are working on others as well right now and can make them available upon request.  What are you looking for?

What do we have for sale right now?

Here’s a short list and links of properties we currently have for sale at the moment. We have others available that aren’t linked below and available for review

We are also working on an assembly of six 10 unit buildings and are looking for investors that want to take part in the redevelopment of the land.  If you’re interested, reach out right away!

 

 

More Moderate Price Growth in June Toronto Real Estate Market Update

July 6, 2017 — Greater Toronto Area REALTORS® reported 7,974 sales through TREB’s MLS® System in June 2017 – down by 37.3 per cent in comparison to June 2016.

The number of new residential listings entered into TREB’s MLS® System, at 19,614, was up by 15.9 per cent compared to June 2016. While this annual rate of growth was sizeable, it represented a more moderate annual rate of growth compared to May 2017, when new listings were up by 48.9 per cent year-over-year.

“We are in a period of flux that often follows major government policy announcements pointed at the housing market. On one hand, consumer survey results tell us many households are very interested in purchasing a home in the near future, but some of these would-be buyers seem to be temporarily on the sidelines waiting to see the real impact of the Ontario Fair Housing Plan. On the other hand, we have existing home owners who are listing their home because they feel price growth may have peaked. The end result has been a better supplied market and a moderating annual pace of price growth,” said Mr. Syrianos.

Annual growth rates for MLS® HPI benchmark prices have moderated over the past two months, but remain strong. The MLS® HPI composite benchmark price was up by 25.3 per cent on a year-over-year basis in June. June’s average selling price for all home types combined for the TREB market area was $793,915, representing a 6.3 per cent increase compared to the same month in 2016. A better supplied market has certainly been a key factor influencing the moderation in price growth.

“Recent Ipsos survey results suggest that home buying activity in the GTA will remain strong moving forward. The year-over-year dip in home sales we have experienced over the last two months seem to be the result of would-be buyers putting their decision to purchase temporarily on hold while they monitor the impact of the Fair Housing Plan. On the supply side of the market, it certainly looks as though buyers will benefit from more choice in the second half of 2017 compared to the same period in 2016,”said Jason Mercer, TREB’s Director of Market Analysis and Service Channels.

Market Watch June 2017 – Full Report

Toronto Real Estate Musing – A buyers perspective – 2 of 3

In my ongoing saga to purchase a home in a real estate market that hasn’t seen a price drop in over 7 years, I bring you my next instalment.  My intention with these stories is to show you the new reality of what’s happening in the market.  I’m not saying that the decisions the sellers make is right or wrong rather not the outcome I hope.  As I had mentioned, I don’t know which way the market will go in the coming months other than I’m hoping that it will be balanced.

The corner Side split 4

While I’ve been searching for a property mostly in Toronto, I’ve also been keeping an eye on properties in Mississauga and have found some great listings there that I went and saw.  Such was a property I saw in Port Credit.  There are couple of reasons why I picked the ones I saw.

  1. Older properties tend to be in lower demand in Mississauga.
  2. There is only one land transfer tax
  3. Mississauga, especially Port Credit, isn’t much further than say North Etobicoke to downtown Toronto

Older properties:

Since there haven’t been many new single family homes developments in Mississauga over the past 5 years, older properties are the only option available to buyers here now.  It’s not an uncommon question or request from buyers, even today, to buy properties that are newer than say properties that were built in the 50’s and 60’s.

I’m sure many REALTOR and buyers can attest to having specific criteria to purchase only properties that were five years old or newer which gave way to areas such as Churchill meadows to gain so much popularity since they had the newest and some of the last developments in the city.  Buyers that were moving from Toronto didn’t seem to care much about age as properties are older in the city but local buyers did see that as a negative.  This created a niche where you were able to find some interesting properties.

One land transfer tax:

Mississauga, at one point, discussed and toyed with the idea of having a municipal land transfer tax implemented for all purchases made in the city which was opposed by local REALTOR and for good reason.  Implementing a transfer like Toronto would’ve made Mississauga far less attractive than other cities in the area and would’ve placed more importance on Toronto for buyers since it would cost the same.  This decision helped elevate property values in Mississauga as more and more buyers not wanting to pay the Toronto Land Transfer tax and willing to commute started moving to the city and soon the city started noticing a nice bump in pricing.  You can read a great paper issued on the issue here.

Sensing this as an opportunity, I’ve kept an eye on properties here that are older in hopes of finding something that needs work and has good bones.  During my search, I came across a property that was listed for $790,000.  After seeing the property, it was evident that the property was renovated with the intention of being sold.  We saw the property pretty early and since it had an offer date, opted to stay on the sidelines to see what will happen.

As expected, the property sat there on the market for over three weeks which is when I approached the agent to possibly put in an offer.  The owner, also a real estate agent, never got back to me.  I tried repeatedly to get in touch with the agent and never got a call back and then it happened.

I woke up to see an alert for a property which was now listed for $995,000 and is still available.  The price puts it outside my budget so I will keep looking.

I have one more story to share with you and am also coming up with some others that I’m facing.  I’m rather enjoying telling these stories so will try and keep these coming.

Hope you enjoyed the Canada Day celebrations this weekend and I will see you soon!

 

Toronto Real Estate Stories – A buyer’s perspective – 1 of 3

HAPPY CANADA DAY!

Welcome to the new real estate reality in Toronto.  It’s Canada day today and I’m up extra early recounting the blessings we have in this country and also reviewing how my week went and to be grateful for it.  I couldn’t help but get reminded of whats happening in the market is reacting to the new reality of transacting real estate.

I wrote last week about how the state of affairs of real estate in Toronto along with hoping I would be able to purchase a property on that weekend.  Well, that hasn’t happened yet and it’s not for lack of trying.  My bride and I have been diligent in going out and looking at all new properties that are matching our criteria coming to the market but there is a bit of a delay in Sellers realizing that there isn’t a line of buyers waiting at the door.  I figured I’d share three different stories for properties and sellers that we have come across since we started searching for our home.  I usually don’t share stories about my business on here but since it’s my first hand account of my purchase, I don’t see the harm in sharing it.  The stories are a bit extensive so I’ll break them up into three posts.

Story # 1 – The extra large bungalow

Our story of this prospect began when my bride and I were looking at a house across the street from this bungalow.  The house we went to see was ok but a bit small for our liking and needed extensive renovations.  The price was set by the seller and listing agent at $799,900 and offers were being reviewed in a week.  We went through the old dreary kitchen into the shag carpet in the living room and basement to arrive to the rose scent filled back yard with link chain fence surrounding it and thought it was a bit too much at 800K.  As we were exited the backyard through the side, we noticed a sign on this massive corner bungalow which seemed like it went on forever.

My bride was really taken by the look of the bungalow and asked me to find out how much it’s listed for.  I quickly whipped out my phone and after a couple of clicks found out that it’s listed for $935K… WOW!  That’s a big place but outside our budget.

Fast forward two weeks and now the $935K bungalow has been listed on the market for $799K with an offer date.  I’m immediately pessimistic about the listing as usually an offer date means that the seller is expecting to get more than the list price.  We schedule a visit to go see the house and found it not exactly what we wanted.  Furthermore, the property we came to see before has a “SOLD OVER ASKING” sign on the listing.  I got curious about the sold price and found out it was sold $100 over the asking.  We decided that the large bungalow is a good option to have but we will keep looking.

I spoke with the agent the day after the offer date inquiring if they have been able to sell and found out they didn’t have any offers on the place.  I inquired if they would be interested in entertaining an offer to which they agreed they would.  I scheduled another visit to the home to critically look through it and do my research.

The house, while being a large bungalow sitting on a 50×100 foot lot, wasn’t really laid out very well.  The house has four bedrooms and all are far too small for our use.  We would have to remove one bedroom and move walls around to create a larger bedroom, upgrades the kitchen which hasn’t been touched since 1977 and the dishwasher has a sign on it that reads, “DONOT OPEN,” along with other quirks like a stand alone shower in the middle of the laundry room that we would have to take out.

I then turned my attention to the numbers.  Mind you, I’m not looking at numbers of how much it would cost to do all this, I’m looking at what the value of the property is.  Here’s a little lesson in how market pricing works:

When pricing a property, you have to keep an eye on what’s happening in the marketplace as well.  If the market is on an incline, read Seller’s market, your expiries in the market place will soon be your market value and inversely when market is on the decline, which is what’s happening in Toronto right now, the current listing prices become the market value because buyers start looking at your competition to decide which property to purchase based on the level of completeness and price because they now have choice.  Also, since the market is on the way down, the sold data for properties in the market are obsolete as the buyers and sellers are setting a new market price at every transaction based on the properties condition and competition.

Armed with this information, I started searching for what properties are currently listed and which properties recently sold.  I had personally gone and seen almost all the properties that were on the list and found that while the large bungalow has been priced competitively, the price was based on the market numbers from three months ago and mostly on a renovated bungalow across the street that was sold for $935,000.

Toronto market saw a nice rally in pricing at the start of this year which has caused Seller’s to think their properties are worth $100,000 to $200,000 more that what they are.  News reports like Home Prices Up by 33% has solidified this belief and it wasn’t without merit.  I had mentioned in my pervious article how market is run by greed or fear and greed was running free in that market and is now lingering on part of the sellers while buyers are fearful as to what will happen.

Back to the large bungalow; I wait for couple of days so the agent has had the time to vet any rumours of offers they might have and ended up sending the seller an offer for their review.  The offer wasn’t the best as I had to take into consideration the work that had to be done but it was also based on a comparable property that was sold just the week before.  This property was a renovated bungalow, not on a corner but similar in size, and had a detached 2.5 car garage in the back and was originally listed for $797,000 then reduced to $787,000 and sold for $740,000.

I drafted an offer with our names on it and sent it off to the seller’s agent and got a nice note back the next day that read as follows:

Thank you for your offer. Sellers have rejected entertaining a sign back, I have attached  a disclosure to such effect.

The sellers are not desperate as your offer may indicate you sense.

If you wish to submit an offer nothing less and certainly significantly more than the recent sale of (removed neighbouring property address) would be received, and only that only a possibility if it was unconditional and a perfect date to suit their desires.

This is the response of a seller who has been on the market for 21 days during this listing period and hasn’t had another offer.  Their motivation is low at the moment hence weren’t willing to entertain my offer.  They are asking $799K but expecting to get more than that with an unconditional offer… I had two words for them… GOOD LUCK!

As with any transaction, the deal is only made when both the buyers and sellers are willing to work together and come to an agreement.  In this instance, it didn’t for us so we keep on moving forward.

If you’re a seller and are planning to make the most of your time on the market, I would recommend reading this article, really taking a look at your property and only show it to buyers that are really interested in your property. Let me explain:

  • List your property at a price that you’re willing to accept.  If you have your property listed at a low price, don’t expect to see buyers lining up to make offers or even see the property.  I’m finding that if a property is listed really low, buyers aren’t even willing to spend time to go see the property.
  • Don’t do offer dates
  • Complete any outstanding items that need to be done; cut those hedges, clean out the garage, paint the house

These will help focus the type of buyer that will come to your house and hopefully get you an offer sooner than later.

If you have been thinking about buying real estate for a while and thought the market was too high, now is the time for you to start going out and seeing properties.  If nothing else, it’s a good way for you to learn the market and find good deals.  It’s better to pay lower price for a property than to buy high at a lower interest rate.  I will talk more about this in a later post.

For now, I’m off to see more properties and help clients with their purchases and sales.  I will be back with two more stories about what type of sellers we are seeing in the market today.

 

Prices are down… Lets talk about how to navigate this reality

This is the first time since 2008 that there was a drop in average price for the Toronto market.  It’s an exciting and terrifying opportunity as this is the time when buyers either will choose not to act or act and make the most money on their real estate purchases.  I still talk to my clients that made purchases in the small slump of 2008 who thank me for helping them through to making the purchase as they saved so much money by purchasing when everyone else was holding off.

Let me explain…

There are two main emotions that run a market.  Greed and Fear… Greed to get/make more or fear to avoid loosing what we have… This is very much true for real estate too…  Sellers want to net the most money possible while buyers want to pay the least amount.

In a market run by greed, the fear of loosing out drives a lot of decisions.

Imagine, if you will, a market running on greed, the buyers keep paying higher and higher amounts because they see it as a profitable prospectus with little downside.  Buyers keep paying more and more because they don’t want to miss out on making money on the product (real estate) when they will sell/flip it.  Buyers want to desperately enter the market but there aren’t enough products available as sellers are also holding off on selling their property as prices keep going up.  This greed and need for housing fuels the market and pushes the value even further up.  Greed is high and fear of loosing money is low so there is lots of confidence in the market and prices keeps climbing to new records.

Now, let’s introduce the provincial liberal government who in an effort to get some votes in the next election, pander to the tenants in the city, and introduce laws for rent control and taxes for non-residents.  The news of Home Trust Mortgages failing creates a market of uncertainty and buyers suddenly start to pull back.

This pull back is evident from the market report issued by Toronto Real Estate last month that showed overall year over year number of transactions down by 20.3% and number of days up from 11 to 15 days.  There are also a lot more listings available in the market right now too.  Last month we saw 25,837 new listings enter the market as compared to 17,356 from 2016.  The prices were still shown as up 14.9% to $863,910 compared to 752,100 from 2016 but down from April 2017‘s record setting $920,791.

What does this all mean?

Number of transactions are dropping… Prices have dropped and are expected to drop further…

Let’s take a look at what prompted this change… Here are the factors that are at play here…

When looking at the market today, there isn’t much that has changed in the fundamentals.  One of the big reason prices were being driven up is immigration as we don’t have enough homes being built to sustain the incoming population and this still holds true.  The non-resident tax and paper flipping restrictions introduced are designed to primarily impact pre-construction market tax evasion as there aren’t many international buyers, that I know, looking to invest their money in resale market and deal with tenants.  The Home Trust meltdown had a market exposure of under 2% across Canada which is hardly a trickle for the Toronto market… So why did the prices pull back?

Market perception:  Perception is reality!

We saw the early signs of market slow down back in April in the weeks leading up to the Liberal announcement to help Toronto Real Estate cool down.  There are different ways I keep track of market activity… Showings on listings is the main one we use as it gives us a live feed into what the buyers are doing in the market.  We definitely saw a slow down in our showings and even postponed listing properties in April as not many buyers would come to see them.

Another vehicle I use is my online advertising metrics:  The effectiveness of an advert is measured by how many times it’s exposed to the public before a request is made by a prospect/buyer for more information.  In March, one of our advert was getting an inquiry after 240 impressions and we saw that number jumped up to 473 impressions per inquiry in April, back to 224 in May and is now sitting at 1753 impressions per inquiry.  This shows how buyers who are looking for properties are reacting to market perceptions.  It’s worth noting that the numbers are from two different adverts; both were for income properties for sale, one in Cabbagetown (Ask $2.2M – March and April numbers) and second an income property for sale in Annex (Ask $3.4M – April, May and June numbers).

Buying a property was getting more and more expensive each day hence buyers were opting to rent more which is why our vacancy rate in the city is below 1%.  There is some pent up demand among the renters which is waiting for property prices to drop so they can jump into the market as well.  There are also buyers that can purchase now who are holding back as they aren’t sure what will happen to the market.

The big question now is… where will the market go from here?  Is it going down further or will it bounce back?

I don’t know the right answer as I’m just a student of Real Estate in Toronto but do believe in the following…

  • I do know that based on the fundamentals that I have studied, there is nothing wrong with the market… The prices are inflated… yes! which is a result of low supply and high demand.  With increasing supply, we will see a drop in pricing as sellers will be forced to become more competitive.
  • I also know that there will be more buyers entering the market place who have been renting and waiting for this as the prices come down.  Buyers have, after a long time, choice of properties to pick from and are able to negotiate with seller.  This may take sometime as buyers will fear that the market will go down further and will keep holding off.

In my humble opinion, I don’t think we are going to see massive price drops in the Toronto market.  I believe that we will see a price drop in the next coming months and sellers who aren’t willing to sell at a lower price will start taking their properties off the market and renting them (remember we have a really low vacancy rate).  This may again create an environment where supply will be limited and demand will start to increase causing prices to start going back up.  Conversely, we might start to see a very balanced market where prices will drop over the next six to eighteen months (based on articles I’ve read) and we will have a market with average days on market close to 25 and about 2 months of inventory.

So… What to do in this market?

It goes without saying; find yourself a real estate professional who knows how to deal with this shifting market.  Due to low barriers to entry in real estate sales, the number of agents have swelled in Toronto and everyone has a friend who is an agent.  It’s important that you find an agent that does this full time and has proven record showing that he can get the property sold or negotiate well on your behalf to get you the best price possible.

If you are a seller and have a property coming for sale soon, you will need to review your expectations from the sale.  If you have your next property purchased already, double check your numbers and review the details thoroughly.  What will you net from the sale if you don’t get the number you have?  What’s the least amount of money you need to close your next home?  You will probably have to bring your property to the market a lot sooner than you were anticipating.  If you haven’t purchased yet, wait till you have your property sold before signing any agreements of purchase.  If you haven’t gotten an evaluation of your current property, you should get one as soon as possible.  This is a solicitation to help you; only if you’re not under an agency agreement.

As a seller, if you have to sell in the near future…

  • Don’t expect to see offers lined up right after listing your property for sale.  Don’t set offer dates for your listings rather list at a competitive price and leave offers open at anytime.
  • Don’t expect to get that crazy number you had in mind.  With more listings available for buyers, chances of crazy offers are low unless you have a very rare house, listed at a VERY discounted price, is immaculate and highly desirable, and you find two buyers that are just in love with the place…  Chances of this happening are low…
  • Expect to do some work on your home before selling it.  Properties aren’t only judged based on price, rather also on how they look and any work that needs to be done.  Everything that needs to be fixed becomes a $10,000 problem.  If you have a property that is a fixer upper, chances are that you will have to get that work done to make it attractive to buyers coming through.
  • Expect that buyers will be buying properties on conditional offers which means your property will likely be inspected.

Be bold when everyone is scared

As a buyer, it’s simple but not very easy…  You have to be bold when others are scared.

I sold my private residence earlier this year as I truly believed this was coming.  I’ve been keeping tabs on the market and touring properties over the past couple of months and am now making offers on properties at prices that listing agents would’ve laughed at before.  No… these are not low ball offers by any means but full asking price offers on their listings that didn’t get offers on offer night.  I’m hoping to secure a home for my family this weekend.

The idea is to get out there and start looking now!  There might be a very small window for buyers to take advantage of this market.  If you have a home to sell, I would highly recommend selling it first before buying your next place.

Following are some videos that show the details of what’s happening in the market that will help you get more detailed information on the market.  If you want to talk about this market, you can always reach out to me

TORONTO REAL ESTATE APRIL UPDATE

CLICK TO READ THE REPORT  Market Watch – April 2017

TORONTO REAL ESTATE MAY 2017 UPDATE

CLICK TO READ THE REPORT – Market Watch – May 2017

CANADIAN REAL ESTATE MAY 2017 UPDATE

 

 

Just reduced: Five unit building in Toronto

We had listed a property on the Bloor subway line last month that has managed to stay without getting sold.  The seller is very motivated to sell the building and asked us to reduce the price from $3,688,888 to $3,398,888 which is a massive reduction of $290,000.

The property is now priced at a healthy 4.4% cap rate and generating a net operating income over close to $150,000 per year.  There’s also room to increase the net operating income by another $17,000 before the end of the year.

Want to learn more?  Click here to learn more

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