Whether you are purchasing a property in Toronto or buying your first home, there are several key factors that many buyers overlook (which could be costly in the long run!). From parking issues to property boundaries, these details can have a significant impact on the home-buying process. In this article, we’ll dive deep into these often-overlooked aspects, ensuring you’re fully informed before making one of the biggest investments of your life.

1. Parking: What You See May Not Be What You Get

When browsing listings on the Multiple Listing Service (MLS), you might come across a property that states “parking.” However, it’s important to understand what that actually means.

• Mutual Driveways: A mutual driveway is shared between two homes, and parking may be agreed upon with a neighbor. However, this is not always a permanent arrangement. If the neighbor moves or decides to end the agreement, you could lose your parking spot. This type of parking isn’t legally guaranteed, so make sure to verify the terms before proceeding.
• Front Pad Parking: If the listing mentions a curb cut or a space in the front yard for parking, it’s not always a sure thing. To ensure that parking is legal, check if the address has a registered and active parking permit for that location. Front yard parking permits are tied to the property owner, not the house itself. If the previous owner hasn’t been maintaining the permit, you might find yourself unable to park there despite having a physical spot to park your car.

2. Check for Property Line Issues

Many buyers fall in love with a home’s spacious backyard, only to discover that part of it actually encroaches onto public space. It’s crucial to verify the exact property lines using a survey before making an offer. If a fence or structure has been built outside of the property’s boundaries, it could cause major headaches down the road. For example, if the backyard is being used for a pool or other large structures, the city might not allow construction if it’s on public land. Make sure to confirm with a licensed land surveyor.

3. Zoning and Restrictions: Know Before You Build

Before buying a property, especially if you plan to make improvements like adding a pool or building a deck, it’s essential to check local zoning laws and property restrictions. For example:
Environmental Concerns: Properties located near ravines or other protected areas may have restrictions on what you can build due to environmental preservation rules.

• Heritage Protection: Some properties, particularly those near archaeological sites, are subject to strict building codes, and you might not be able to build in certain areas of the property.

4. Local Developments: What’s Happening Around You?

New developments in the area can impact the value and enjoyment of your property. For example:

• Transit Lines and Construction: If a property is located near new transit lines or infrastructure projects like the Ontario Line, it could be subject to future construction noise, vibration, or limited access. Be sure to research upcoming developments and check with the city or relevant agencies to understand how they may affect your property.
• Train Tracks and Noise: Proximity to train tracks is another factor that many buyers overlook. While some properties may be near GO train lines, others might be close to freight lines, which run 24/7 and can produce significant noise and vibrations. Make sure to evaluate how much noise you’ll be dealing with before making a decision.

5. Noise and Vibration from Public Transportation

Many buyers don’t realize the extent of noise or vibrations they might experience when living near a subway line or major transit route. To get a real feel for the property, spend a little extra time at the house and test out the sound levels. Especially if the subway line is nearby. Over time, this could impact your living experience and even the long-term value of the property.

6. Verify Permits and Legal Structures

Before purchasing your property, it’s crucial to ensure that all structures on the property are legal and permitted. If you notice a deck, fence, or other structure that looks unusual compared to the surrounding properties, check to ensure that the necessary permits were pulled. Without proper permits, you could face legal challenges or fines if you ever need to make changes or plan on doing future renovations.

7. The Importance of Surveys and Property History

Surveys are essential tools that provide an accurate picture of the property boundaries, location of structures, and potential encroachments. Always ask for a recent survey of the property and take the time to verify the accuracy of the information. It’s also wise to investigate the property’s history to uncover any past issues that could affect your investment.

The key takeaway? Stay informed before you buy!

Buying a home is an exciting journey, but it’s important to do your homework before committing. As we highlighted in this article, parking arrangements and property boundaries to zoning laws and local developments can be a few factors that can affect your property’s value and your overall experience. By staying vigilant and seeking professional guidance, you can avoid these common pitfalls and ensure that you’re making a sound investment in Toronto’s competitive real estate market.

If you’re thinking about buying a property in Toronto, make sure to ask the right questions and research thoroughly. Your dream home might be closer than you think, but understanding the details will make all the difference. 

Need help buying your first property? Contact us! We’re here to give you an authentic real estate experience.

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Unveiling the True Cost of Living in Cabbagetown, Toronto

 

Nestled in the heart of Toronto, Cabbagetown is more than just a neighbourhood; it’s a historic enclave renowned for its Victorian homes and vibrant community. However, before you make the decision to move to this picturesque district, it’s crucial to understand the financial implications. From housing costs to everyday expenses, let’s delve into what living in Cabbagetown truly entails.

Housing Prices & Property Taxes

Cabbagetown offers a diverse mix of housing options, including detached homes, semi-detached homes, and row houses. Over the past year, the average home price has been approximately $1.8 million. While this might seem steep, it’s significantly more affordable compared to neighboring areas like Rosedale, where homes average around $4.6 million.

Property taxes in Cabbagetown average about $7,500 annually. This figure is influenced by the neighborhood’s prime location within Toronto, reflecting its proximity to downtown and desirable amenities. Understanding these costs is crucial as they directly impact your monthly expenses and overall budget.

 

Factors Affecting Property Taxes

Property tax rates in Cabbagetown, as in much of Toronto, are determined based on several factors including the assessed value of the property. Factors considered by the Municipal Property Assessment Corporation (MPAC) include location, property dimensions, living area, age adjusted for renovations, and construction quality. These assessments play a pivotal role in determining the annual property tax obligations for homeowners.

 

Insurance Considerations

When purchasing a home in Cabbagetown, insurance premiums should be carefully evaluated. Insurers assess factors such as the age of the roof, condition of electrical and plumbing systems, and whether the basement is finished. These elements are typically covered during a home inspection and directly impact insurance costs.

 

Everyday Essentials: Grocery Shopping

For day-to-day needs, Cabbagetown offers a range of grocery shopping options. Along Parliament Street, residents can find butcher shops, bakeries, and organic stores like Cabbagetown Organics. Larger supermarkets such as Loblaws are within short driving distances, and for bulk shopping, Costco is just an 18-minute drive away. This variety ensures that residents have convenient access to all their shopping needs.

 

Conclusion

Living in Cabbagetown offers a blend of historic charm and modern convenience, but it’s essential to be aware of the associated costs. From housing prices and property taxes to insurance premiums and grocery expenses, every aspect contributes to the overall cost of living. By understanding these financial considerations, prospective residents can make informed decisions about calling Cabbagetown their home.

Whether you’re captivated by its Victorian architecture or enticed by its tight-knit community, Cabbagetown presents a unique opportunity to live in one of Toronto’s most cherished neighborhoods.

If you have any further questions or want more detailed information, feel free to reach out. Don’t forget to like, comment, and subscribe to our Youtube channel for more insights on Toronto’s real estate and lifestyle!

 

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In the realm of Canadian real estate, the month of September has historically served as a reliable barometer for assessing the market’s direction. Traditionally, as people return from their summer sojourns, they embark on real estate transactions in the months leading up to the winter holiday season. This period, spanning September to early November, has traditionally been the second busiest for property sales in most Canadian markets, both in the mainstream and luxury sectors

However, the real estate landscape in September 2023 painted a different picture, deviating from the norms observed over the past years. An initial review reveals a notable decline in sales. In contrast, inventory levels have surged accompanied by an increase in new listings.

Prices remain robust and surprisingly, despite slower sales and rising inventory, the market still favors sellers in some segments, confounding industry expectations.

This unique market behavior can be attributed to several factors, with inventory playing a central role. Although inventory numbers are on the rise, 2023 is still recovering from record-low figures, leaving a substantial gap to be filled, particularly in the luxury and traditional sectors. Importantly, today’s buyers are less inclined to compromise. A recent report reveals that 77% of buyers insist on move-in-ready homes, setting high standards for property conditions.

 

For affluent buyers, their criteria extend beyond mere readiness; they seek properties with unique “experience” features, ideal locations, privacy, wellness amenities, and cutting-edge technology integration. Demand for such turnkey properties is consistently high, often resulting in these homes spending minimal time on the market.

For buyers, their criteria extend beyond mere readiness and their demand for turnkey properties is consistently high, often resulting in these homes spending minimal time on the market.

For sellers, this means that failure to align their properties with these standards can pose significant challenges in a competitive market. Homes that meet these discerning buyer requirements, however, maintain stable selling prices.

Beyond inventory and buyer expectations, external factors like rising mortgage rates and inflated listing prices have further complicated the real estate landscape. Sellers, especially those with low-interest rate mortgages, are hesitant to trade them for higher-rate alternatives, while new construction lags behind demand.

Changing monetary policy expectations in both Canada and the United States, affecting interest rates, have also played a part in creating uncertainty among both buyers and sellers.

The real estate market in 2023 appears to be a paradox, defined by conflicting signals and a divergence from historical trends. 

Sales data reveals that luxury mid-sized homes and smaller, attached properties are currently the most sought-after property types. Buyers are seeking extra space without being saddled with excessive debt, making homes ranging from 1,500 to 3,500 square feet particularly desirable.

For individuals looking to enter the real estate market in these unique times, it is crucial to understand the shifting dynamics and adjust expectations accordingly. In this dynamic and evolving environment, working with a knowledgeable Realtor can prove invaluable in capitalizing on market preferences, trends, and demands. Real estate in 2023 offers both challenges and opportunities for those who are prepared to navigate its intricacies.

 

If you have any inquiries feel free to contact us or send us a message on social media!

 

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Vacant Home Tax

As of January 1st, 2023 ALL residential property owners in Toronto will be required to declare the occupancy status of their property(ies) for the previous year. The goal of the City of Toronto is “increase the supply of housing by discouraging owners from leaving their residential properties unoccupied. Homeowners who choose to keep their properties vacant will be subject to this tax”.

When: The deadline is February 2, 2023

How: The online declaration portal is NOW open. Visit this link and click on the SUBMIT DECLARATION button.

Keep in mind that:

• A property is considered vacant if it has been unoccupied for more than six months during the previous calendar year or is otherwise deemed to be vacant under the bylaw.
• Revenues collected from the Vacant Home Tax will be allocated towards affordable housing initiatives.
• The Vacant Home Tax is 1% of the Current Value Assessment (CVA)
• The tax is based on the property’s occupancy status for the previous year. For example: for a home vacant in 2022, the tax will become payable in 2023.
• For more information about the VHT, visit this link.
• It is the responsibility of purchasers and vendors to make the appropriate arrangements to ensure that the declaration has been filed. When buying a property with a closing date happening before February 2 in any year (for now) you must make sure and confirm with your lawyer that the seller has already made this declaration BEFORE closing. Otherwise any unpaid taxes will become the purchaser’s responsibility.

Foreign Buyers Ban 

On June 23, 2022, Parliament passed the Prohibition on the purchase of residential property by non-Canadians Act which will come into force on January 1st, 2023. Based on interpretation of the Act the language suggests that the prohibition applies to agreements entered into after January 1, 2023. For the full version of the Act and its contents please visit the Justice Laws website in this link.

Don’t miss out on the real estate opportunities in 2023. Our team is here to help you navigate the Toronto real estate market and make informed decisions about buying or selling. Book a Discovery Call with us today to get expert insights on your specific needs and make the most of the coming year.

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1. Although another small increase in the interest rate might happen, the worst is behind us as the peak of the hike has passed. There are signs that show the system and Canada will be able to remain resilient while inflation comes under control.
2. Given the short-term shock caused by the increased borrowing costs, some property price adjustments might continue happening depending on the location, amount of inventory available in that location and the type of property. 
3. We expect to see an increase in the demand for ownership, most likely after the first half of 2023, as the dust settles and immigration numbers continue to rise, with most people coming to the GTA, many of which are looking to buy.
4. The pressure on the rental market will continue in our city. So far we have seen a double-digit rent increase due to the growth in the demand caused amongst other things by the reopening of colleges and universities, the [partial] return to working from the office, as well as the return of some of the people that had left the core. In the condo market, the competition for rental units has intensified and multiple offers will most likely remain common. It will be interesting to see the dynamic of the market when renters decide to buy instead if the cost of rent continues to rise to a level where paying for a mortgage makes more sense.

Taking one day at a time, adjusting to the changes and keeping the right information at hand will help us all go through this time.

Keep calm: You are building wealth through Real Estate.

It is no secret that owning real estate and especially your principal residence is an asset that most people hold on to dearly and believe in as a wealth creating tool. The old saying that “location, location, location” is the most important aspect of a purchase, gains more strength as the market cycle moves along its stages, and particularly when it hits bottom. So if you’re looking to buy your first home, move up to a bigger one, sell your current home to “right-size” or invest on a property that generates income, make sure you pay close attention to the location.  

As inflation traces its way and while it’s put under control, be mindful that your property is shielding you from the loss of value. For instance $100,000 put in the bank would currently earn you anywhere from 2.5%-3.5% annually, 2 years ago would have earned you much less than that and with our current inflation at 6.9%, it has already eroded any gains you obtained. On the other hand, if you bought 2 years ago, put as part of the downpayment  on a property, those $100,000, have already outperformed any other investment. 

A couple of examples (using the Home Price Index – HPI as reference of increase/decrease in value):

For a condo bought in November 2020

• Purchase price: $800,000
• Downpayment: $160,000
• HPI for condos since November 2020: 29.37% (varies per neighbourhood)
• Price in November 2022: $1,035,000
• $160,000 put into a condo 2 years ago has generated 147%. ($235,000)

For a detached home bought in November 2020

• Purchase price: $1,500,000
• Downpayment: $300,000
• HPI for detached homes in Toronto: 8.8%
• Price in November 2022: $1,635,000
• $300,000 put into a detached home 2 years ago have generated 45% ($135,000)

BUT, most likely you did not pay cash for any of these properties. Let’s say you put a 20% downpayment and if that is the case your $160,000 in the condo has generated a whooping 147% ($235,000) and your detached home 45% ($135,000). You are combining appreciation with leverage, so your property has appreciated but the amount of cash has returned much more.

It may sound like a very basic calculation, but deduct the amount of interest paid through your mortgage, and even basic maintenance during this same period, and your investment is still generating gains. For a more detailed calculation, feel free to reach out!

For those who bought as the market peaked, you are also ok. Prices will continue to move up in the following years – most likely at a slower pace compared to what we experienced during the pandemic – but the strong demand for housing in our city will continue to be constant and one that will not allow prices to go back to much lower levels than what we are seeing today. 

If you own income-generating properties that are carrying themselves through the rent, you are doing well, you don’t need to care what the market does, your property will continue to appreciate and for all scenarios, while prices can change over a period of time, real estate values have gone up, ALWAYS. Or ask your grandmother about the property she bought in Toronto back in 1970.

When looked at as a long-term investment, real estate has never let us down. The upward trend in prices will continue and appreciation is one of the best ways to create not just wealth, but generational wealth.

Ready to make your move in the real estate market? Get a head start on your plans for 2023 by booking a Discovery Call with our team. During the call, we’ll discuss your specific real estate needs and help you understand what to expect in the market over the next few years. Don’t miss out on this opportunity to get expert insights and make informed decisions about your real estate goals. Schedule your Discovery Call today! If you want to stay updated and get the best tips about Toronto real estate in 2023, follow us on social media!

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The City of Toronto Garden Suites By-law is now in full force and this will now allow a greater variety in the type and form of housing that can be built as part of the City’s Expanding Housing Options in Neighbourhoods (EHON) program focused on missing middle housing and gentle intensification. Garden suites are not only a solution to increase housing choice for current and future residents, but can also provide help to homeowners to offset mortgage payments on their primary residences.

If a proposed garden suite meets various performance criteria, such as maximum building height and setbacks, as well as all applicable bylaw standards, only a building permit application is required.

Any garden suite proposal that does not meet the Zoning By-law requirements can seek a minor variance application at the Committee of Adjustment. Through that process, City Planning staff review the application to determine if the proposed variances are appropriate and meet the intent of the Official Plan policies and the Zoning By-law.

You are encouraged to check out the City of Toronto Garden Suites By-law to learn about the rules, regulations and key considerations in order if you wish to consider adding a garden suite to your primary residence.

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TAKING A PULSE OF THE MARKET: OUR TORONTO MARKET REPORT FOR FEBRUARY 2022

The Toronto Real Estate Market continues its trend. We have compiled the most recent numbers for the City of Toronto. These are not statistics for the whole GTA so if you’d like to know the numbers for your specific location outside the M postal code districts, please reach out here, or follow our social media. We’ll be happy to provide you with information. Read on for more details on the Toronto Market Report for Feb 2022.

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