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Buildings for Sale in Toronto

Tag: toronto

What do we have for sale?

Long time no talk! Happy new year to you all!

We’ve been busy at BuildingsForSaleToronto.com working on new listings to bring to you. Following are couple of properties that we thought warranted your review.

Please take a look and let us know if you have any questions. We also have access to other properties that aren’t posted on our website and available for your review upon request.

Talk soon!

An amazing 5.76% cap rate on this downtown property

This property was originally listed for $3.8M earlier this year but has gone through a massive price drop and is now coming to the market at an amazing cap rate of 5.76% which is probably one of the best income property in the downtown area.  I have included a lot of pictures and information about the property along with the financials in the link below.

Amazing investment opportunity in downtown Toronto

We are also working on couple of other listings including a 42 unit building close to London that we can discuss as well.  Video coming soon for it.

If you would like more info, please feel free to reply to this email or contact me by calling at 877-439-2339

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!

 

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

Is this the start of the end? Home Trust Meltdown

I’ve been following the story of Home Trust and Home Capital meltdown over the past week and while it’s cause for concern for buyers, it’s ripple effects will be felt for sellers as well but to what extent is yet to be seen.  If you don’t know who home trust is, let me give you a run down:

Home Trust is the largest alternative financing option available in Canada for individuals and companies who aren’t able to get financing on their property purchases or refinances via the traditional banks.  They offer uninsured mortgages to buyers who don’t have stellar credit history or are self employed.  I’ve personally used Home Trust for mortgages in the past along with other lenders such as Equitable Trust (now Equatable Bank) as sometimes banks don’t want to work with buyers like myself who work on commission.  These lenders are also how investors who are purchasing multiple properties are able to purchase and eventually sell properties as they usually come with short terms (higher rates and one year terms on most mortgages).

Following are some articles that you should definitely read in order to get a better understanding of the issue at hand

Home Capital Shares Plunge After Lender Seeks 2 Billion Line of Credit

What exactly is Home Capital and why is it so important to the mortgage industry?

Why is this important to you?

While the exposure of Home Trust in the Canadian Real Estate Market is of a minion (2% with 20 billion portfolio versus $1.3 Trillion of the big banks) there will be a credit crunch for investors

If you’re working on your property purchase and have a commitment from Home Trust or another other Trust… Reach out to them and find out if you’re commitment is still valid and can be fulfilled.

If you have an investment property on the market for sale, ensure to review the details of this article with the buyer and his agent to make sure they are able to close the purchase.

What I’ve seen so far in the market

Last week was interesting because we had announcements coming relating to real estate specifically Toronto which created a vacuum of buyers which were evident to me via my search stats and inquiries.  We saw a noticeable decrease in number of inquiries (our stats doubled!) which showed that buyers were hesitant in moving forward.

The budget was just announced yesterday and we are new seeing the reactions.  While overall the budget is a balance one, it will be interesting to see what actually passes.  I will write another article outlining my thoughts on the budget for your review

 

What do you think the impact will be of Home Trust and the budget that was just announced?  Do share your thoughts with me in the comment section below.

 

16 New rules to curb the Toronto housing crisis

The province made an announcement last week showcasing 16 measures to help real estate buyers and sellers and to help create more supply for the region.  I’ve broken down the rules more in the video above for your review.  Here are the sixteen rules that are introduced:

Actions to Address Demand for Housing:

  1. Introducing legislation that would, if passed, implement a new 15-per-cent Non-Resident Speculation Tax (NRST) on the price of homes in the Greater Golden Horseshoe (GGH) purchased by individuals who are not citizens or permanent residents of Canada or by foreign corporations. Ontario’s economy benefits enormously from newcomers who decide to make the province home. The NRST would help to address unsustainable demand in this region and make housing more available and affordable, while ensuring Ontario continues to be a place that welcomes all new residents. The proposed tax would apply to transfers of land that contain at least one and not more than six single family residences. “Single family residences” include, for example, detached and semi-detached homes, townhomes and condominiums. The NRST would not apply to transfers of other types of land including multi-residential rental apartment buildings, agricultural land or commercial/industrial land. The NRST would be effective as of April 21, 2017, upon the enactment of the amending legislation.  Refugees and nominees under the Ontario Immigrant Nominee Program would not be subject to the NRST. Subject to eligibility requirements, a rebate would be available for those who subsequently attain citizenship or permanent resident status as a well as foreign nationals working in Ontario and international students. See technical bulletin for further information.
    Actions to Protect Renters
  2. Expanding rent control to all private rental units in Ontario, including those built after 1991. This will ensure increases in rental costs can only rise at the rate posted in the annual provincial rent increase guideline. Over the past ten years, the annual rent increase guideline has averaged two per cent. The increase is capped at a maximum of 2.5 per cent. Under these changes, landlords would still be able to apply vacancy decontrol and seek above guideline increases where permitted. Legislation will be introduced that, if passed, will enact this change effective April 20.
  3. The government will introduce legislation that would, if passed, strengthen the Residential Tenancies Act to further protect tenants and ensure predictability for landlords. This will include developing a standard lease with explanatory information available in multiple languages, tightening provisions for “landlord’s own use” evictions, and ensuring that tenants are adequately compensated if asked to vacate under this rule; prohibiting above-guideline increases where elevator work orders have not been completed; and making technical changes at the Landlord-Tenant Board to make the process fairer and easier for renters and landlords. These changes would apply to the entire province.
    Actions to Increase Housing Supply
  4. Establishing a program to leverage the value of surplus provincial land assets across the province to develop a mix of market housing and new, permanent, sustainable and affordable housing supply. Potential sites under consideration for a pilot project include the West Don Lands, 27 Grosvenor/26 Grenville Streets in Toronto, and other sites in the province. This builds on an agreement reached previously with the City of Toronto to ensure a minimum of 20 per cent of residential units within the West Don Lands are available for affordable rental, with an additional 5 per cent of units for affordable ownership.
  5. Introducing legislation that would, if passed, empower the City of Toronto, and potentially other interested municipalities, to introduce a vacant homes property tax to encourage property owners to sell unoccupied units or rent them out, to address concerns about residential units potentially being left vacant by speculators.
  6. Ensuring that property tax for new multi-residential apartment buildings is charged at a similar rate as other residential properties. This will encourage developers to build more new purpose-built rental housing and will apply to the entire province.
  7. Introducing a targeted $125-million, five-year program to further encourage the construction of new rental apartment buildings by rebating a portion of development charges. Working with municipalities, the government would target projects in those communities that are most in need of new purpose-built rental housing.
  8. Providing municipalities with the flexibility to use property tax tools to help unlock development opportunities. For example, municipalities could be permitted to impose a higher tax on vacant land that has been approved for new housing.
  9. Creating a new Housing Supply Team with dedicated provincial employees to identify barriers to specific housing development projects and work with developers and municipalities to find solutions. As well, a multi-ministry working group will be established to work with the development industry and municipalities to identify opportunities to streamline the development approvals process.
    Other Actions to Protect Homebuyers and Increase Information Sharing
  10. The province will work to understand and tackle practices that may be contributing to tax avoidance and excessive speculation in the housing market such as “paper flipping,” a practice that includes entering into a contractual agreement to buy a residential unit and assigning it to another person prior to closing.
  11. Working with the real estate profession and consumers, the province is committing to review the rules real estate agents are required to follow to ensure that consumers are fairly represented in real estate transactions. This includes practices such as double ending. The government will modernize its rules, strengthen professionalism and improve the home-buying experience with a goal to make Ontario a leader in real estate standards.
  12. Establishing a housing advisory group which will meet quarterly to provide the government with ongoing advice about the state of the housing market and discuss the impact of the measures in the Fair Housing Plan and any additional steps that are needed. The group will have a diverse range of expertise, including economists, academics, developers, community groups and the real estate sector.
  13. Educating consumers on their rights, particularly on the issue of one real estate professional representing more than one party in a real estate transaction.
  14. Partnering with the Canada Revenue Agency to explore more comprehensive reporting requirements so that correct federal and provincial taxes, including income and sales taxes, are paid on purchases and sales of real estate in Ontario.
  15. Making elevators in Ontario buildings more reliable by establishing timelines for elevator repair in consultation with the sector and the Technical Standards & Safety Authority (TSSA).
  16. Working with municipalities to better reflect the needs of a growing Greater Golden Horseshoe through an updated Growth Plan. New provisions will include requiring that municipalities consider the appropriate range of unit sizes in higher density residential buildings to accommodate a diverse range of household sizes and incomes. This will help support the goals of creating complete communities that are vibrant, transit-supportive and economically competitive, while doing more to address climate change, protect the region’s natural heritage and prevent the loss of irreplaceable farmland. As part of the implementation of the Growth Plan for the Greater Golden Horseshoe, 2006, enough land was set aside in municipal official plans to accommodate forecasted growth to at least 2031. Based on discussions with municipalities across the region, the government is confident that there is enough serviced land to meet the Provincial Policy Statement requirement for a three year supply of residential units. The Greenbelt provides important protection of natural heritage and farmland, and neither the area of the Greenbelt or the rules about what can occur inside of it will be weakened. The upcoming Growth Plan will promote intensification around existing and planned transit stations and will promote higher densities in the suburbs to support transit.

The best 8 apartment buildings for sale in Toronto Real Estate

I’ve been MIA for about a month and wasn’t posting regularly as I got married and achieved a new milestone in my life.  Now I’m back and in full force to pick up where I left off.  I went through all the properties that came to the market while I was away and thought reviewing over 1500 properties was overkill so instead I give you the best 8 apartment buildings currently listed in the city of Toronto.

I have two new listings that have come up as well.  You can find more information about these listings below.  These are NOT MLS listings rather only available exclusively through me.  If you like what you’re seeing, please reach out so we can send you a detailed package and arrange for showings for you.

NEW LISTINGS

Five units in Annex – New Development

Four legal units in Cabbagetown

In today’s video, we also talked about how to find out what the zoning is for a particular property.  This can help you quickly find out if a property that you’re looking at has an allowable use that you’re purchasing it for.  It’s a great new tool introduced by the City of Toronto to look up properties.  I hope other municipalities will follow suit and will have something similar available for the public.

Here’s a list of properties we reviewed today

# Address Apt/Unit Municipality Price Beds Wr LSC MLS#
1 1825 Davenport Rd Toronto $499,000.00 3 New W3750632
2 20 Mimico Ave Toronto $989,000.00 5 New W3745084
3 88 Portland St Toronto $998,000.00 4 New W3704268
4 121 Fourth St Toronto $1,650,000.00 New W3739470
5 593 Warden Ave Toronto $1,895,000.00 New E3733608
6 2865 Lakeshore Blvd W Toronto $2,790,000.00 New W3737025
7 347 Northcliffe Blvd Toronto $2,888,888.00 New C3735510
8 2434 Keele St Toronto $3,150,000.00 New W3660268

If you would like to follow along with the listings, please click the link below

Property Listings

If you would like to join us for our next meetup, please click below

Meetup Group – Downtown Toronto Real Estate Group

If you would like more information about any of the listings, please fill out the form below

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Toronto’s new by-law for Apartment Buildings

The city of Toronto introduced new by-laws yesterday for apartment buildings where apartment buildings with more than 10 units will be required to be registered and licensed with the city of Toronto.  Here are the main details of the by-law for your review:

  • Yearly registration of rental buildings with 3 or more storey and 10 or more units
  • Annual registration includes details regarding building owner and manager as well as their contact information
  • Annual registration fee of $10.60 per unit
  • Each Building must have tenant request process
  • Urgent requests require a response within 24 hours
  • Non-urgent requests require a response within 7 days
  • Pest Management Program and details are required
  • New set of “administrative cost recovery’ fees including a flat fee of $1800 if a full building audit is required.

While this is just another cash grab for the city, there are some good services that will help neighbors get rid of absent landlords and slumlord too.  I don’t like the fact that this is all going to cost the owners more money as the city is downloading all their responsibility onto the owner and tenants.

What the politician writing these laws are failing to realize that the deterioration of our rental assets is in part because we don’t have enough units available to be rented.  The units that are in good condition are also in higher demand and some owners just can’t justify spending extra money due to the rents that are being collected.  Further, there haven’t been many new buildings added to our rental pool causing lower than 1% vacancy in the city and having schemes such as these implemented allow the politicians to pander to the tenant base for votes.

Click for complete ruling

 

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