Important Considerations When Purchasing a Condo

Condominium sales are booming in many urban areas in Canada especially in large cities such as Toronto and Vancouver, with several buildings being developed. Today, condominiums continue to appreciate in market value at a rate that is almost as fast as that of single-family residences making condos a good investment.

Buying a condo with features that are in high demand will maximize the profit on your real estate investment and create an enjoyable condo living environment.

A condo with a view
A spectacular view is an important factor in deciding the value of a condo unit. A unit with an unobstructed view of the cityscape or a lake is much preferable to a view of an industrial building or a neighbour's kitchen. Choose a south or west-facing unit that offers optimum light, which can make smaller spaces look larger. Balconies and patios provide desirable access to the outdoors, which is highly sought after by condo dwellers. Although these features will cost a premium, they are more than worth the investment and will help in getting a top price when it comes time to sell.

Condo maintenance fees
Buying a condo with a relatively low maintenance fee is a smart choice. Many condos have amenities that include gyms, swimming pools, squash courts, party rooms or rooftop patios. The cost of these features will result in a higher monthly maintenance fee. Condo buyers should consider whether they will make use of these facilities in order to justify paying a higher maintenance fee.

High-demand condo features
Look for condos with modern kitchens and bathrooms that not only provide immediate aesthetic appeal but are in great demand by buyers. Hardwood floors are a very popular feature in condos, not only offering a stylish appearance but also providing a desirable, easy-to-clean alternative to stain-weary, allergen-inducing broadloom.

Storage space
Storage space is important because of the small size of the condo unit. Some condos include a storage locker in the common areas of the building. Make sure there is enough space for your essential seasonal items – such as a bike, skis, snowboard, hockey gear, baseball equipment, Christmas tree, etc.

Car parking
As parking in large cities can be scarce, a condo that has a parking space included is a very good investment. Ensure that the building has ample visitor parking or that there is available street parking in the neighbourhood. Many condos in the downtown core provide no visitor parking, leaving the costly option of parking in a public parking lot.

Building security
While having a security guard on site does provide added security, keep in mind that this expense will increase the maintenance fee.

Owner occupancy rate
Is also important to find out who occupies the other units of the complex. Owners occupying their suites have an invested interest in the building and typically take better care of common areas.

Do not get caught up on the looks and cosmetics of a condo. Go back at least a couple of times to view all the things you may have overlooked or didn't consider when visiting the first time.

Condominium units have become a wise alternative to owning a house. This is not surprising, as living in a condo can be more convenient than living in a house. A condo is ideal for individuals living alone, small families, and older people. And because condos are smaller, they are less expensive to maintain.

How to Select the Right Flooring for Comfort and Style

Choosing the right floor for your home is an important decision. Not only does it set the tone for the whole interior of your home, but it’s also the foundation for everything else you put in a room. Your choice should fit the look of your home and the way your family lives.

Each family is unique and will have different demands and expectations for their flooring choice. A large family with kids will have a different set of needs than a retired couple. Pet owners will have a particular requirement as well. Allergy and asthma sufferers will need to keep a clean and dust-free environment.

When making a decision about flooring, keep in mind such factors as design options, comfort, warmth, safety, and maintenance. And don’t forget you can have fun with colour too.

Carpet
Carpet is the right choice for light traffic households; the warm and comfortable feel makes it ideal for bedrooms and family rooms. Carpet is an attractive addition to a room and the colour choices are virtually unlimited. It is, however, high maintenance—regular vacuuming and shampooing are mandatory, and stains are a constant worry. (Price installed: $18 - $30 per yard)

Hardwood Floors
The look of brand-new hardwood floors, or even newly refinished hardwood floors, adds an unmistakable quality and value to your home. Wood flooring can add elegance to any room and works well with most kinds of décor. However, they are sensitive to climate changes and also susceptible to water damage, and need constant maintenance. Hardwood floors can also be quite cool in the wintertime.

Another alternative to hardwood flooring is the new generation of products, known as Engineered Hardwood Flooring. This type of wood has been developed to make more efficient use of wood that takes substantially less hardwood to cover the same area as with a block of solid wood. Therefore, it saves you money and allows you to enjoy the new floor knowing that you have selected a product that is environmentally friendly.

Hardwood floors are ideal for halls, living, and dining rooms, and you can easily use area rugs on top to compliments your decor. (Price installed: $10 - $17 per square foot)

Ceramic or Porcelain Tiles

Ceramic tile can give your home that “designer look”. Tiles are available in many evolving designs that can create an incredible floor and suit everyone’s tastes.
Because of their easy-to-clean water resistance nature, ceramic tiles are the best choice for kitchens and bathrooms. However, make sure you select non-slip tiles. (Price installed: $12 - $30 per square foot)

Vinyl Floors
An inexpensive choice in flooring, the new generation of Vinyl Floors are made durable and can add a real “designer’s touch” to your home. They are available in tiles and sheets, Double-thick vinyl is ideal for damp areas like bathrooms.

Vinyl floors are vulnerable to scratches, tears, stains, and wear. (Price installed: $13 - $30 per yard)

Laminate Floors
The floating nature makes Laminate Floors quite simple to install, and the range of styles and colors is virtually endless—from simulated wood and tile to creative and decorative choices that will provide any home with an amazingly durable and beautiful floor.

Laminate flooring is easy to care for which makes it suitable for high-traffic areas. (Price installed: $9 - $15 per square foot)

Many people are now choosing a combination of wood flooring, laminate, oak, and carpet in their homes to enhance the beauty of the flooring and of course their homes. However, style and comfort is in the eye of the beholder and you are the one that will ultimately be enjoying the flooring you choose. Choose a combination of flooring options that fits your own style and needs so you can be happy with your choice later on.

Childproofing Your Home

Having children in your home can be a fun and exciting experience. Unlike adults, children need to rely on you to provide them with a safe environment.

Household injuries are one of the top reasons kids under age 3 visit the emergency room, and nearly 70% of children who die from unintentional injuries at home are 4 years old and under. Younger children have the highest risk of being injured at home because that's where they spend most of their time.

Supervision is the best way to prevent injuries, in the home and outside, but even the most watchful parents can't keep kids completely out of harm's way every second of the day.

Fortunately, many of these incidents can be easily prevented if parents follow these accident prevention tips:

Living room
Store away any small objects like coins, small toys, or souvenirs that a child may swallow.

Use a cordless phone to make it easier for you to continuously watch young children.

Children like to mimic adults. It is very important that you carefully watch your actions in front of children. Never let your children see you take medication and store bottles well out of reach. You should also not smoke in front of your children. They may try to play “grown-up” by taking your medication or playing with a lighter.

Use corner and edge bumpers to help prevent injuries from falls against sharp edges of furniture and fireplaces. Use door stops and door holders to help prevent injuries to fingers and hands.

Use safety gates to help keep children away from stairs or rooms that may be dangerous. Look for safety gates that children cannot dislodge easily, but that adults can open and close without difficulty.

Use lead-free low-emission water-based paint in all living areas in the home.
Install a carpet in all rooms to soften the impact of your children's tumble and stumble.

Kitchen
Never put inedible products in food or drink containers. Children may not be able to read the label and could put something dangerous in their mouth.

Keep sharp objects such as scissors and knives out of reach. Make sure that drawers have stops to prevent them from being fully pulled out.

Cook on the rear stove elements to prevent children from reaching up and burning their hands.

Store cleaners, disinfectants, bleach, and other chemical agents in a locked cupboard or on a high shelf.

Bathroom
Never leave children unsupervised in the bath. Put non-slip stickers on the bottom of the bathtub.

Consider installing shower and bath rails as they are a very good safety measure for the whole family.

Use outlet covers to help prevent electrocution. Be sure the outlet protectors cannot be easily removed by children and are large enough so that children cannot choke on them.

Fire hazards
Keep candles, matches, and cigarette lighters away from children’s reach. Install a smoke detector on every level of your home and near bedrooms to alert you of fires.

Install a Carbon Monoxide detector outside bedrooms to help prevent CO poisoning. Keep a fire extinguisher handy in the kitchen, near the fireplace, and on the bedrooms level, and make sure you know how to use them in case of an emergency. It may save someone's live in a crucial moment.

What is childhood without the ability to explore? It is natural for children to explore their world with all their senses. However, this can mean they will also venture to dangerous areas in the home.

Although many people usually think of babies and toddlers when they hear the word "childproofing", however, unintentional injury is the leading cause of death in kids 14 years old and under. Young kids have the highest risk of being injured at home because that is where they spend most of their time so why not take all measures to ensure their safety.

By following the steps above you will be taking the first step to protecting your loved ones to ensure they have a safe environment in your home.

How to Boost Your Affordability When Arranging For a Mortgage

The key to a successful mortgage experience is carefully considering all your options and buying within your means so that you can sustain your payments. Borrowers unsure of which approach is best can fall back on certain time-tested strategies for ensuring they don’t overextend themselves.

Here are a few tips to boost affordability when arranging your mortgage:

1. Know what you can afford. 
A mortgage pre-approval helps you establish a price range and the maximum mortgage you can reasonably afford.  Most lenders will lock in a rate for up to 120 days when pre-approving potential borrowers for a mortgage.

2. Revisit your current debts. 
When applying for a mortgage, a lender will look at your total debt service ratio (TDS), or how much of your total income is going towards various types of debts, including car loans, credit cards, and other consumer loans.  A mortgage broker can advise on restructuring your current debt (by increasing the amortization and lowering payments on your car loan, for example), to ensure that your TDS ratio is acceptable to prospective lenders.

3. Look into a longer amortization. 
Some lenders offer mortgages with amortizations longer than the traditional 25-year amortization which result in a lower monthly payment.  Those opting for a longer amortization should plan to make lump sum payments down the road or increase their monthly payments (say, after receiving a salary increase), to lessen the amount of interest they pay throughout the life of their mortgage.

4. Increase the size of your down payment. 
Increasing the size of your down payment means a lower monthly payment.  A common way for first-time buyers to come up with more cash for a down payment is to make use of the federal Home Buyers' Plan to withdraw up to $20,000 each from a registered retirement savings plan (RRSP) without tax penalty to buy or build a qualifying home.  Also, many lenders allow the down payment to come from a properly documented gift, and a borrowed down payment may be possible for some borrowers.

5. Consider locking in your rate for a longer period of time.
If you’re uneasy about fluctuating interest rates and your ability to meet any increases, then a fixed-rate mortgage could be a good fit.  Many lenders are open to longer fixed terms, up to 10 years in some cases.

Canadian Housing Market Outlook for 2023

Real Estate Markets Set to Normalize in 2023 After Nearly Three Years of the Pandemic Boom. Sales volume has already started slowing and a turnaround is NOT expected until the second half of next year.

What a difference a year makes! At the beginning of 2022, real estate markets all over the world were up against huge demand, limited supply, and high prices. Looking toward 2023, the landscape has changed dramatically since central banks began raising interest rates last spring.

Although home prices are falling and homes are lingering on the market, many in the industry look at the shift as more of a normalization than a correction. Sales activity and price growth from March 2020 to March 2022 was too hot not to cool down. 

The process has already started. Global house-price growth for luxury properties—the top 5% of the market—slowed to 8.8% per year in the third quarter, down from 10.9% at their peak at the start of 2022, according to latest reports. But when accounting for inflation house prices are actually now declining by 0.3% year-on-year, the report said. 

The Canadian Real Estate Association (CREA) benchmark price of a home in Ontario — a measure that combines sale prices of condominiums, attached and detached houses across all markets in the province — peaked at $1.08 million in March of 2022. 

That was a staggering 64% leap in just two years, from the start of the COVID-19 pandemic.

CREA's benchmark figure for Ontario has since fallen by nearly 20%, but even that sharp decline only takes prices back to the level they were at in September of 2021. 

How much lower will home prices in Canada go? With the number of homes bought and sold monthly now lower than it's been per capita since the mid-1990s, when will the real estate market start to pick up again? 

We surveyed real estate experts and analyzed published forecasts to give you this preview of the Ontario housing market for 2023. 

Overall, real estate analysts generally expect home prices to continue to fall, but not a lot further than they already have. We expect home prices to continue to decline through early 2023 but bottom out in the second half of the year. 

Higher interest rates have been the biggest factor dampening demand. However, employment levels remain strong and immigration numbers are expected to rise, fuelling demand for housing. 

Some Condo projects could be cancelled
There are also signs that the recently rapid pace of new home construction is slowing. The Canada Mortgage and Housing Corp. (CMHC) recently warned that in the Greater Toronto Area, the combination of a sharp drop in condo pre-construction sales, higher building costs, and higher interest rates could lead to project cancellations or delays in project launches.

Volume of listings expected to remain low 
Real estate analysts believe the volume of listings will remain low for some time to come, as many property owners are reluctant to list their properties given how the prices dropped. 

Also, the continued rising interest rates are affecting the buyers' ability to qualify for the mortgage amount they need which will have its toll on the number of sales.

When will prices bottom out?
The latest available data from the Canadian Real Estate Association (CREA) shows that, on a seasonally adjusted basis, home prices in Canada fell 19% from the peak in February to November, when the average sale price was $636,838.

 With the slowing pace of decline in both home sales and prices, there are early signs the correction is approaching its final stage.

Prices could eventually hit a low point in the early part of 2023 but the timing would vary from market to market. this bottoming out would coincide with the Bank of Canada stabilizing its benchmark interest rate — the central bank signalled in December it could be near the end of its hiking cycle — and that for those looking to break into the market, this might be where affordability is best in the year for prospective buyers.

Fewer Homes Sales in December Ends a Year of Weaker Sales Activity in Waterloo Region

WATERLOO REGION, ON (January 5, 2023) —There were 7,770 homes sold through the Multiple Listing Service® (MLS®) System of the Waterloo Region Association of REALTORS® (WRAR) in 2022, a decrease of 24.8 per cent compared to 2021. On a historical basis, 2022 performed lower than previous years, with annual sales down 12.4 per cent compared to the previous 5-year average, and 8.2 per cent below the previous 10-year average.

On a monthly basis, there were 280 homes sold in December, a decrease of 38.7 per cent compared to December 2021, and 32.3 per cent below the previous 5-year average for the month.

“The number of homes sold in December was lower than any single month in well over a decade, marking an end to a turbulent year for home sales in Waterloo Region,” says Megan Bell, President of WRAR.  

Total residential sales in December included 166 detached (down 34.9 per cent from December 2021), and 56 townhouses (down 48.6 per cent). Sales also included 33 condominium units (down 47.6 per cent) and 25 semi-detached homes (down 16.7 per cent).

For 2022, total residential sales included 4,720 detached (down 23.5 per cent), and 1,430 townhouses (down 30.9 per cent). Sales also included 996 condominium units (down 21.9 per cent) and 624 semi-detached homes (down 24.4 per cent).

In December, the average sale price for all residential properties in Waterloo Region was $720,596. This represents a 15.5 per cent decrease compared to December 2021 and a 2.1 per cent decrease compared to November 2022.

• The average price of a detached home was $825,450. This represents a 17.6 per cent decrease from December 2021 and a decrease of 1.7 per cent compared to November 2022.
• The average sale price for a townhouse was $609,154. This represents a 17.0 per cent decrease from December 2021 and a decrease of 2.1 per cent compared to November 2022.
• The average sale price for an apartment-style condominium was $460,994. This represents a decrease of 7.9 per cent from December 2021 and an increase of 1.0 per cent compared to November 2022.
• The average sale price for a semi was $616,671. This represents a decrease of 18.7 per cent compared to December 2021 and a decrease of 4.0 per cent compared to November 2022.

“After home prices crossed the million-dollar threshold in February of 2022, we close out the year with average and benchmark prices back to where they were prior to them surging in early 2021,” says Bell. “It’s clear that the decline in sale prices has been a direct response to the successive interest rate hikes by the Bank of Canada throughout the past several months, however, with interest rates predicted to stabilize, we should see a steadier market in 2023.”

There were 302 new listings added to the MLS® System in the Waterloo Region last month, a decrease of 20.3 per cent compared to December of last year and a 14.9 per cent decrease compared to the previous ten-year average for December.

In 2022 a record 13,471 new listings were added to WRAR’s MLS® System, an increase of 9.5 per cent compared to 2021, and a 12.2 per cent increase compared to the previous ten-year annual average.

The total number of homes available for sale in active status at the end of December was 575, an increase of 329.1 per cent compared to December of last year and 31.3 per cent below the previous ten-year average of 837 listings for December.

The number of months of inventory is up 350.0 per cent compared to December of last year, but still historically low at 0.9 months. Between 2009 and 2015, December’s average months of inventory was 2.3 months. The number of months of inventory represents how long it would take to sell off current inventories at the current sales rate.  

The average number of days to sell in December was 25, compared to 11 days in December 2021. The previous 5-year average is 24 days. 

The average days to sell in 2022 was 14 days, compared to 10 days in 2021 and a previous 5-year average of 19 days.

While future homeowners should benefit from the fact that prices have come down from their extreme highs of early 2022, home affordability will continue to be a concern in 2023. Bell says, “The easing of home prices has not done much to help first-time buyers as soaring borrowing costs have put monthly payments out of reach for many prospective homebuyers.”

WRAR’s president also points out that Waterloo Region remains one of the tightest real estate markets in Canada as measured by months of housing supply. “By no means is Waterloo Region a buyer’s market,” says Bell. “Our community is in high demand as a sought-after place to live in. And throughout most of 2022, we were working with less than one and a half months of supply of inventory. Combined with rising interest rates, it is still a challenging market for buyers.”

However, Bell is pleased to see various government interventions and new housing policies set to come into force throughout the year. “One of the upcoming options for first-time home buyers includes the Tax-Free First Home Savings Account (FHSA) which is designed to give first-time home buyers the ability to save $40,000 on a tax-free basis with an annual contribution limit of $8,000.” The government is working with financial institutions to have the infrastructure in place for individuals to be able to open an FHSA and start contributing at some point in 2023.

Chartered Professional Accountants of Canada say Canadians can begin contributing to the FHSA in 2023 even though the rules don’t come into effect until April 1, 2023. Full details from the Government of Canada can be found here.

The provincial government has also introduced several bills that tackle the housing crisis head-on. “One change in particular that has caught my attention – is the move to see gentle density and intensification within residential areas by allowing up to three residential units ‘as of right’ on most land zoned for one home without needing a municipal by-law amendment,” says Bell. “Realtors were one of the first groups to champion ending exclusionary zoning. It will be noteworthy to see how this is integrated within Waterloo Region and in communities across the province.”

Those requiring specific information on property values should contact a local REALTOR®. Working with a Realtor is the best way to get a complete picture of the property and community you are considering.