May 2007

Highest midmonth total ever

May 16, 2007 — The resale housing market got off to a roaring start in May, with 5,003 sales reported during the first 15 days of the month, Toronto Real Estate Board President Dorothy Mason announced today. This is an 11 per cent increase over the first half of May 2006 and the highest midmonth sales total in TREB’s history.

“All signs point to a very healthy market for the remainder of the spring,” Mrs. Mason said. “In terms of activity, this year is about six per cent ahead of last year’s pace, and that’s an indication that there’s a lot of confidence in this market. Now is an excellent time to get started in the market or make a move.” The average price in the first half of May was up two per cent to $377,612 from the $369,543 recorded during the first half of May 2006.

Year to date prices were nearly five per cent ahead of the same time last year. Meanwhile average time on market for a listed home fell to 28 days, and the average list to sale price ratio rose to 99 per cent of the asking price.

In Scarborough’s West Agincourt neighbourhood (E05), condominium transactions more than doubled as the area saw a 39 per cent overall increase compared to midMay of 2006.

Strong condominium activity also pushed Mississauga’s City Centre (W15) to a 49 per cent overall increase compared to the same timeframe a year ago.

In the Downtown Toronto / Harbourfront area (C01), 34 per cent more homes changed hands compared to midMay of last year, fueled mostly by highrise condominiums.

In central Vaughan (N08), detached homes and town homes were the most active types as overall transactions increased from mid May of last year by 59 per cent.”

Five New Buildings Slated For The Foot Of Yonge St.

One of Toronto’s last prime pieces of waterfront real estate is about to get the condo treatment.
The old Marine Terminal 27 site at the foot of Yonge St. is about to see construction. The developers are hoping for 5 towers with 1500 to 2000 units.

City councillors claim there is nothing that they can do to stop this construction.

So much for Toronto’s supposed jewel like waterfront. It’s just going to be a story of one more parking lot gone along with the lake view. Pretty soon you will actually have to be on the lake to know there is one.

A sales centre should go up soon with marketing starting in early summer. Construction of the first phase will take place over the next 2.5 years. The first phase of two 12 storey buildings connected by a two -storey bridge on top on the Yonge St. side of the property beside Captain John’s restaurant will consist of 477 units.

There will be a 14 storey building running alongside the Redpath sugar refinery on the east side of the site from the water to Queens Quay. The building units would overlook downtown.

They are hoping for a low rise builiding depending on the outcome of working with the Ministry of the Environment and their regulations. The plan is to extend Freeland St. which runs parallele to Yonge ending at Queens Quay ending in a cul de sac and providing public access from the street to the water’s edge. They plan to landscape this for an urban square type of effect.

The city in their great wisdom ( yes that is tongue in cheeck) sold this land in the 1980′s to a compnay called Avro Quay Ltd. which succeeded in getting it rezoned in 1996 for approximately 1400 condos.
In 2002 the Ontario Municipal Board incurred a height limitation to 14 storeys while permitting 1500-2000 units.
Since rezoning permissions have been granted the current developers Cityzen and Fernbrook Homes only need a site plan approval. These issues go to a committe of adjustment hearing on July 4th /07.
The Waterfront Corporation did manage to buy a half a hectare from Torstar a few years back for $12.5 million. They are hoping to combine this public land with the builder’s public land to create a public green space, park, or plaza.
Well hopefully we will still end up with a water view from somewhere down there.
Given that these units will probably sell extremely well especially to investors we can probably expect to see these buildings rise fairly quickly.

DO YOU INTEND TO BUILD A HOME, A COTTAGE, RENOVATE?

Understanding the Construction Financing Process 1

Building your own home is an exciting and rewarding project. We’re here to help you understand the process of financing the construction of your new home so that

you can get started with confidence and proceed with peace of mind.

You may have some experience in obtaining mortgage financing but as you’ll see, construction financing is a more detailed process, with several important milestones that don’t take place when you buy an already existing home.

We’ve created this guide to help you plan your project and understand how construction financing works.

What to expect. When you build your own home, there are many more steps and expenses than if you buy an existing home. In the simplest terms, a typical mortgage is advanced in one lump sum. Construction financing is different. At TD Canada Trust, the total amount borrowed to complete a project is usually advanced in three stages within one year.

Typical Mortgage

You receive all of the money you borrowed at the time you obtain the title to the property.

Construction Financing

At TD Canada Trust, you pay the up-front costs, then receive up to three advances.

First advance at the Rough-in stage

Second advance at the Drywall stage

Third advance at the Completed stage

Determining what you need to get started

During the application process, you will need to understand the initial costs that you will be responsible for.

Land

To secure construction financing you are required to own the land, as TD Canada Trust will need to register a first mortgage on it.

Servicing

The land you intend to build on needs to be fully serviced. This includes site preparations and municipal services such as septic service, water connection, sewer connection,

hydro and gas service.

Soft costs

These are out-of-pocket expenses for services and charges you are likely to incur at the outset of, and throughout, the construction phases. Depending on your plans and the location of your home, these will likely include –

• Property taxes • Fees for architects and engineers

• Municipal permits • Fees for realtors and solicitors

• Fees for appraisals and inspections

Initial building costs

You are expected to finance the initial stage of construction (approximately 35% of construction) with your own money.

Cost overruns

We recommend that you set aside an additional 15% of the estimated construction costs to cover unexpected overruns.

Interest costs

You are required to make interest-only payments on all amounts advanced until your regular principal and interest payments begin.

In addition to the costs already outlined, you will also need to budget for lien holdbacks.

1/Your home is at the Rough-in stage when the foundation, sub-floor, framing, sheathing, roof, roughed-in electrical and plumbing are completed. This is typically 35% complete.

2/Your home is at the Drywall stage when the exterior completion, pouring of the basement floor, and installation of the heating source are completed. This is typically 65% complete.

3/Your home is at the Completed stage when the finished interior doors, floors, carpentry, painting, heating,plumbing, electrical, walks and driveways (subject to season) are completed. This is when the house qualifies for an occupancy permit.

Understanding the Construction Financing Process 2

Lien holdbacks

Your solicitor is required to hold back some of the money advanced at each of the Rough-in, Drywall, and Completed stages of your construction project. This money is held in

reserve in the event that a contractor or supplier claims a lien on your property. A lien is a claim by a contractor against the property to secure repayment of unpaid construction costs.

The amount of your lien holdback and the number of days that your funds will be held in trust varies by province.

TD Canada Trust will instruct your solicitor to hold back a percentage based on the chart below. Ask your solicitor for details.

The application

Here’s what you should plan to bring to your first meeting

with your TD Canada Trust mortgage representative – David Avrahami (416-833.6693)

All information associated with the construction

• Construction contract, including costs

• Construction plans or blueprints

• Quotes for labour and material if you are acting as the general contractor

• Site preparations, including municipal services for the lot (e.g. excavation, septic service, water, sewer, hydro, gas, etc.)

• Evidence of ownership of the land and/or a copy of the purchase agreement with evidence of available funds

Other requirements to help fulfill the application for construction financing

• Confirmation of required funds to complete 35% of construction (the Rough-in stage)

• Confirmation of income/employment

• Name, address and telephone number of your solicitor As we familiarize ourselves with the details of your project, we can tell you what, if any, other documents specific to your application may be required.

The appraisal

Determining the estimated value of your completed home

TD Canada Trust will obtain an appraisal to estimate the value of your completed home, including the land.

4/To arrive at an estimate, your appraiser will review your construction plans and blueprints to understand the type of home you are building.

For the purpose of the mortgage application, the value of the completed project is the lesser of a) the cost to

construct including land value or b) the appraised value.

Province Percentage of Holdback

Alberta 10

British Columbia 10

Manitoba 7.5

New Brunswick 20

Newfoundland 10

Nova Scotia 10

Ontario 10

Prince Edward Island 20

Quebec 15

Saskatchewan 10

Understanding the Construction Financing Process 3

Your first advance – the Rough-in stage

When you have completed the Rough-in stage, we will send an appraiser to your home to inspect the property and confirm that the Rough-in stage is complete.

Up to this point, you will have paid all expenses from your own resources.

TD Canada Trust will release your first advance of funds to your solicitor, who will keep a percentage of it as a lien holdback. The percentage varies by province. At this point
monthly interest-only payments will commence. The amount of your first advance is determined by a formula based on the total requested mortgage amount and the remaining cost to construct your home.

The estimated amount of this advance can be calculated by your TD Canada Trust Representative.

Prior to releasing the first advance, your solicitor will need –

• Builder’s all-risk insurance assigned to TD Canada Trust

• A survey showing the location of all buildings to be constructed

• Confirmation that all necessary building permits are in place

Your second advance – the Drywall stage

When you have completed the Drywall stage, we will send an appraiser to your home to inspect the property.

TD Canada Trust will release your second advance to your solicitor. Once again, a lien holdback will be applied.

The amount of your second advance is dependent on the requested mortgage amount, the amount of the first advance and the remaining cost to construct your home.

Your third advance – the Completed stage

When you have completed your home, we will send an appraiser to your home to inspect the property.

When the appraiser has determined that your building is complete, TD Canada Trust will release the final advance of funds to your solicitor. A lien holdback will again be applied.

Prior to releasing the final advance, your solicitor may request further documentation, which may include –

• Well Water Potability Certificate (if applicable)

• Flow Certificates and Septic Certificates (if applicable)

• Occupancy Permit

• New Home Warranty Certificates (if applicable)

Release of lien holdbacks

All lien holdbacks will be released to you approximately 30-60 days (depending on your province) after your project has been completed, assuming there have been no lien

claims made against your property.

Anticipating mortgage interest and principal payments

By the time you reach the Completed stage, most of your mortgage amount will have been advanced to you through your solicitor. You will be required to start making regular

mortgage interest and principal payments shortly after receiving your third advance.

Financing the construction of your custom home or renovations of your exiting or newly purchased one can be complicated….but made easy with my help.

Please call me to discuss it all at your convenience: Contributed By DAVID AVRAHAMI at TD Canada Trust– 416-833.6693

Revival in Corktown

Corktown is one of Toronto’s oldest and most historic areas. Nearby the Distillery District and running from the Don River in the East to Berkeley St. this area used to be a gathering place for Irish immigrants many from County Cork. They came to Canada fleeing the potato famine.

Toronto’s population doubled in the mid 1800′s as a result of the Irish arrivals. In the early 20th century Corktown became home to many of this city’s Macedonian immigrants.

As a wirjubg -class area, Corktown became a mix of industrial warehouses, workers’ cottages and quaint British-style somewhat crooked row housing on Bright St. A group known as Streetcar Developments is moving into Corktown with major redevelopment plans. This is dues to it’s prime location near the business district, theatres, & expressways. They intend to turn Corktown into a destination.

The concept is going to be modern living in a historical setting. Recently the Queen City Vingar Company building sold 32 of it’s 36 units in one weekend. This demonstrates the desirability of the location from a developer’s point of view.

The next project is going to have two faces. One will be new consturction of single -storey, loft style condos on 3 parcels of land , 52 Sumach St., 549 and 569 King St.
Each building is slated to have 40 lofts & three town homes with underground parking. There will be some ammenities, a large screen tv, a kitche, outdoor patio and fitness centre. Price start at $180′s to $700k +.

Phase two will be across the street from phase 1 and invloves the retrofit of an old three storey warehouse with 150 suites. There are 12 foot wooden ceilings & exposed brick.
There will be a main level retail corridor incorporated into the developemnt.

Corktown will become connected to the Distillery District and the West Donlands making it more vibrant,with parks and community centres.

To register for the Corktown sales office give us a call at 416-445-8855 and we will take care of that for you… Aeriol.

City Plans New Tax For Toronto Home Buyers! Time to Protest

Public meetings, which start today, are an opportunity for Toronto residents and businesses to tell the City what they think of various new taxes that are being considered. These proposals were only announced less than two months ago, and the City’s Executive Committee could make decisions on them next month.

Possibly the biggest tax that could be levied by the City would be a second land transfer tax, paid by homebuyers on top of the existing provincial land transfer tax. A second land transfer tax of as little as 0.5 per cent would mean that average Toronto homebuyers would have to come up with close to $2,000 extra when buying a home, a 45 per cent increase in the land transfer taxes that they already pay.

The unfortunate thing is that, at the end of the day, a Toronto home-buying tax could mean less, not more, revenue for the City because less demand for Toronto housing will mean less property assessment growth, which would mean less property tax revenue for the City.

So get in touch with City Hall and direct your complaints to Mayor David Miller.

The Difference Between a Condo, Co-op & a Co-ownership

In a condo building units are separate properties with their own deed that can be bought and sold.

With a co-op the building is owned by a corporation. Units are rented from the corporation and the” owners” are the shareholders in the corporation and elect it’s board of directors.

In a co-ownership, title to the building is held by all of the co-owners who occupy units in accord with an agreement to which they are all parties. The agreement allow for the co-owners to elect a board & manage the co-ownership . Units in the co-ownerhsip are not separate properties and cannot be individually sold.

April 30th Is a Record Breaking Day For Real Estate Sales In Toronto

May 4, 2007 — With 581 sales reported on April 30, the highest single day total ever documented, April’s total transactions reached an astounding 9,452, the best single-month total ever recorded. The Greater Toronto Area’s resale housing market has showed sustained strength and these phenomenal numbers bode well for the remainder of this year’s spring market.

Average prices climbed three per cent in April, to $379,025 from last April’s $366,683.

Overall price increases are holding at marginally above the inflation rate, which means that potential first-time buyers are not being pushed out of the market.

High Ratio Mortgage Insurance Requirement Reduced

May 4, 2007 — A federal law that lowers the level at which mortgage insurance is required came into effect last month and bankers say the change could save homebuyers $2,000 or more.

For the last 40 years, homebuyers have been required to buy mortgage insurance unless their down payment equaled at least 25 per cent of the purchase price.

Now, as a result of Bill C-37, the requirement for mortgage insurance has been reduced. Homebuyers who make a down payment of at least 20 per cent of the purchase price will not be required to buy mortgage insurance

It is estimated that based on a home price of $300,000, a buyer with a 20 per cent down payment can save about $2,500.

Real Estate Funnies

When a real estate agency had not sold our house, we decided to do it ourselves. I placed ads in the local papers; spray painted a “For Sale” message on a signboard, and posted it outside our house.
When my husband came home that evening, he told me, laughing, that my sign was the most truthful one he had ever seen. Confused, I rushed outside to look. In my haste I had printed – “For Sale by Ower.”
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Q. Why do appraisers carry a wasp in their hand?
A. Value is in the eye of the bee holder.

Canada’s Most Expensive Margarita

Here’s something to toast your tax refund with. So you don’t have to fly to Vancouver to find it at West Vancouver’s Ocean Club and Whistler Mountain Club where it costs $75.00 we are giving you the recipe here for the Gran Margarita.

- 1/2 a lime and fleur de sel for rimmin glass
- 1 1/2 oz Gran Patron Platinum Tequila
- 1 1/2 oz Gran Marnier Cuvee du Cent Cinquantenaire
- 1/2 to 3/4 of a lime ( depending on juiciness)
- 1/2 oz simple syrup ( 1 part sugar to 1 part water, boiled and cooled)
- 1/2 the white of 1 fresh egg

Swipe the lime around the rim of a margarita glass and dip it in fleur de sel. Set aside. Combine other ingredients & shake together in a cocktail shaker over ice. Strain through a mesh strainer into glass. Top up with ice. Salute.
Makes 1 Serving

Let me know what you think… So far they say no one has ordered a second… no wonder at that price.