The Art of Transition

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The following article comes directly from my newsletter this month. Benjamin Tal is my favourite economist who I follow and very much recommend.

BoC rate hike: What does CIBC's Tal think will happen next?

A busy spring is still in the cards for Canada’s housing market despite the Bank of Canada’s decision to hike its policy rate, according to a prominent economist – with any significant change only likely to be noted in the second half of 2022.

Benjamin Tal, deputy chief economist at CIBC World Markets, told Canadian Mortgage Professional that he anticipated a return to a more normal market towards the end of the year, but that the Bank’s 0.25% rate increase on Wednesday likely wouldn’t slow down activity in the short-term.

“I think the [biggest] impact will be felt in the second half of the year. In fact, I still expect a relatively strong spring as people enter the market before rates start rising in a more significant way,” he said.
“Then I see a situation in which the market will relax, [and] people will move back to fixed as opposed to variable rates. Now, variable accounts for about 50% of origination – that will go back to normal.”
The Bank’s decision to raise its benchmark rate by a quarter point, to 0.5%, marked its first rate change for nearly two years, and the first hike since 2018.

Tal said that while some observers might view it as a “hawkish” statement from the Bank, it was a relatively unsurprising announcement, particularly as the central bank had already indicated in its January release that rate increases were on the way.
The evolving crisis in Ukraine, where Russian forces have launched a savage assault in the past week, was cited by the Bank as a “major new source of uncertainty” that’s seen spikes in prices for oil and other commodities, with the potential to negatively impact global economic growth.

Could that give the Bank pause for thought about its intentions for further rate increases down the line in 2022? It’s unlikely, said Tal, although not impossible in the case of a major and unforeseen event.

“It was interesting to hear what they have to say about the situation in Ukraine,” he said. “The question is whether or not it’s a recessionary event or inflationary.

“I think the Bank of Canada is going to look at it as more inflationary, and therefore unless something really bad happens, like a cyberattack or something, there’s no reason for them to deviate from the plan to raise interest rates.”

The Bank welcomed some positive economic news in Wednesday’s announcement, noting that Canada’s economic growth had surpassed its expectations in the fourth quarter of 2022 and reinforcing its view that slack has been absorbed in the country’s economy.

While it said the recovery from Omicron-induced setbacks was well underway, it also emphasized that consumer price index (CPI) inflation remained well above its target, with inflation expected to be higher in the near term than initially expected.

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Convenience of a Condo – comfort of a house! 🌇

A Toronto couple approaching retirement decided it was time to “get out of Dodge” and began looking in areas within one to two hours of the GTA where they could pursue a quieter yet fulfilling life with amenities and lifestyle attractions. They settled on the Niagara area. After an exhaustive search they found and put a down payment on a not yet built bungalow townhouse in a modestly sized project. 😊

This project is part of a growing trend where the townhouse itself is freehold and the common areas are condominium. Known as a vacant land condominium, it features the best of both worlds. Not only are the lawns cut and the snow cleared, there are strict rules concerning property standards, ensuring that all the homes in the project are maintained to a consistently high standard. This results in not only a beautiful appearance with pride of ownership on full display, it also maintains property values. There are associated fees, but these are quite modest. 👍

The project was completed in just over one year. 👏 In general, these types of homes offer a wide choice of builder selections for flooring, fixtures, counters, etc. Our couple chose additional available upgrades including gas fireplace, a bathroom in the lower level and a heated floor in the primary bedroom ensuite bathroom. The upgrade total was about $30,000. Appliance packages and window treatments are extra.

The move also turned out to be quite a windfall as well, as 3 months after taking possession, an identical unit in the complex sold for significantly more than the original purchase price. The bungalow model has proven to be very much in demand by the boomer generation. Even with the increased prices there are still opportunities for downsizing Toronto boomers as the values of their Toronto homes have increased as well – leaving cash in their pockets after the process is complete.

Developers are answering the demands of the Baby Boomers, not only throughout the Niagara region, but these builds are also popping up in the very popular Prince Edward County and east from Durham along the 401 corridor.

For more info contact:⁠
Luci 📲 [416.930.8427]⁠
or book an appt: Torontoloftcondos.com
⁠
#2022

The perfect plan. Cash out of Toronto.

Move to a luxury lease bungalow In Beautiful Niagara. Just lock and leave. Snow and landscaping all taken care of for you!

Call to view or simply for more info.

3300$ plus utlities

Are you thinking of Downsizing to a Condo?

The house is big 🏡 and the stairs are steep; getting around is tougher now. The care of the home is daunting, you maybe can’t garden the way you used to. Your kids are busy working full time and raising their children, probably running around assisting them with all their obligations, both school and social. Life for them is busy to say the least. They are worried about you and constantly encourage you to make your life easier – yes for yourselves but also for them so they won’t worry so much about you. They want you to continue your independent living in a stress-free environment.

Well, there are lots of very nice condos to consider. 🌆 Yes, you have been putting this off for years, but the pressure is self perceived, and the message delivered home by your kids…it’s time!

One of the best observations I can share is that Toronto is full of great condos so the chances of you being able to buy in your existing community or not very far away is quite high. Maybe one of your kids wants you to move closer to them. It’s no holiday trying to get around the communities of our fine city. Traffic is at capacity and getting around is frustrating and very time consuming. If you have an appointment and want to be on time, and if you are anything like me, you budget at least an hour to reach your destination just in case there are traffic slowdowns. Well, these busy kids of yours simply don’t have that extra time.

A good realtor who knows the condos within the city of Toronto and the GTA is a crucially important element of your downsizing team. This team will be developed consciously and purposefully and tailored to your needs.

There are many different considerations when you are moving to a condo. For some it is location first 📍 close to family; maybe it’s close to rapid transit for easy traveling around the city; maybe it’s more important that the size of the unit is large enough to accommodate all the furniture you’re not ready to part with. Maybe you want a smaller boutique condo community to live in, or wish for a dynamite downtown city view, or want that view of the water. In Toronto, if you are a homeowner, you know that moving to a condo will in most situations bring you some additional monies that can be used for activities of living; maybe you want to give some gifts of money to children while you are still alive knowing they would really appreciate that gift now rather than when you are gone.

Consulting with a realtor at this stage makes perfect sense. Time to get out there and check out the options and plan from there. And don’t forget while doing so continue to walk through those rooms at home and dispose of your excess stuff! You will need to do it anyway, so now is a good time to start at least thinking about it.

For more info contact:
Luci 📲 [416.930.8427]⁠
or book an appt: Torontoloftcondos.com
⁠
#2022

This is a perfect condo for Downsizers. Almost 1200 sf spacious bright and centrally located.

GTA Market Watch
February sales were down, but represented a second-best result for the month of February in history.

New listings dropped, but by a marginally lessser annual rate than sales, pointing to a modest move to a very slightly more balanced market.

Competition between buyers, however, remained tight enough to support double-digit price growth year over year.

Demand for ownership housing remains strong throughout the GTA, and while we are marginally off the record pace seen last year, any buyer looking in this market is not likely to feel it with competition remaining the norm.

Many households sped up their home purchase and entered into a transaction in 2021, which is one reason the number of sales were forecasted to be lower this year and a trending towards higher borrowing cost will have a moderating effect on home sales.

Substantial immigration levels and a continued lack of supply, however, will have a countering effect to increasing mortgage costs.

We have seen a slight balancing in the market so far this year, with sales dipping more than new listings.

However, because inventory remains exceptionally low, it will take some time for the pace of price growth to slow.

Look for a more moderate pace of price growth in the second half of 2022 as higher borrowing costs result in some households putting their home purchase on hold temporarily.

The transition to a condominium entails many lifestyle aspects. You may be familiar with many of them. Here is an overview for you to consider. 🏙️

Condo living is quite different than living in a house – there are obvious advantages and disadvantages. ✅❎
✅Advantages include no outside maintenance, no snow shoveling, no grass cutting – although these come at a price in the form of monthly maintenance fees. Generally, the older the building, the higher the fees.

✅There is a range of shared amenities for the use of the condo residents. Some amenities such as swimming pools require significant upkeep and maintenance and will have an impact on the monthly fees. If you’re an avid swimmer you’re probably ok with this.

Consider also how many units will share the expenses. Smaller boutique buildings have fewer owners sharing the costs so individual fees will be higher. Often these buildings have fewer amenities as well, so that helps to keep the fees down. 👍
Older buildings often have great locations and larger units but have higher fees due to their age requiring more spending on items such as new roofs and repairs to underground parking garages. A portion of each owner’s condo fees is allocated to build the Condo Corporation’s Reserve fund for these purposes.

Also, look at which utility costs are included in the monthly fees. Newer buildings for example tend to have individual metering for hydro which is the responsibility of the owner. Older buildings may include hydro in the monthly fees. All these items need to be accounted for.

Condo Living Is All About Convenience And Location
If you plan on traveling 🛫 a lot or spending many months in warmer climes as a snowbird, or as a Cottager in the summer, the condo life may be perfect for you. Lock it and leave it!
Perhaps you’re a suburban dweller now and you’re thinking of moving downtown to take advantage of all the attractions that downtown has to offer. Maybe you’ve always dreamed of living up in the clouds with an amazing view – maybe even a water view! 🌊

Other Points To Consider ✔️
Condos have bylaws, rules, and regulations that owners must abide by. This helps maintain standards, but it also imposes restrictions on what you can do. Any renovations to your unit especially those involving the removal of interior walls will require approval of the condominium board.

Parking 🅿️ is a factor in condo living. Many older buildings include a parking space. This is not always the case with newer buildings. If Buying from a builder, it’s an additional cost in the tens of thousands of dollars, especially in downtown locations. Parking for a second car becomes even more challenging. 🚘
To summarize then, here are some of the main advantages and disadvantages:

✔️Advantages:
✅Maintenance is done for you
✅Amenities that enhance the lifestyle experience
✅Bylaws and rules ensure property standards

✖️Disadvantages:
❎Monthly fees can get expensive as buildings age
❎Parking is an added cost, especially expensive in new buildings
❎Have to abide by Board decisions, even if you don’t agree
For a further consultation please contact⁠
Luci 📲 [416.930.8427]⁠
or book an appt.: Torontoloftcondos.com

Ok, we are still in the thinking & options stage.

Let’s consider where outside of the GTA 📍 we can travel to within one to two hours, so we still are close enough to see our friends, keep appointments, & enjoy Toronto.

Looking east of Toronto there are many nice small towns of interest. Many are on the lake on the way to Kingston. There is a bit of a larger population in Cobourg & close to the lake. Remember larger means something very different from the metropolis of Toronto. There are mature communities out this way in towns like Brighton & a string of small towns that you could consider, also some rural properties as well.

Belleville is a nice town & then there is Prince Edward County (PEC) which is a wonderful option for those downsizers who enjoy quaint towns & wine country. The PEC wine community is growing & thriving & brings lots of tourists each year & so many new & thriving restaurants & organized upscale social events.

How about to the north? There are many communities purpose built to accommodate mature buyers. Builders have answered the demands for condo & townhouse living for us. There are many awesome communities in Muskoka. More affordable or not that far there is the Peterborough area where the builders have also responded to meet our needs for bungalows. Easy & quick access to the area with the extension of Highway 407 to highway 115. Maybe you love winter sports like skiing ⛷️ & snowshoeing.

Then there is my favourite, going west around the Lake into the Niagara region. Lots of bungalows & very affordable when considering that many of us have been made millionaires simply by owning Toronto real estate. Niagara region is bountiful for many reasons which include the bounty of the farmers & not the least of which the wonderful wines & wineries, the restaurants & the active social scenes. 👍

Do you want the city of St Catharines or Niagara Falls, or do you enjoy the more bucolic surroundings of Niagara on the Lake? Niagara has many options. Not to mention the weather here is more temperate due to the lake effect. Less snow & less extremes…hmm I like that.

Now the next question to ask yourself Downsizers is what is this going to cost me? 💲 Do I have the money it takes to move forward? Now that’s where I come in …

For a further consultation please contact
Luci 📲 [416.930.8427]⁠
or book an appt.: Torontoloftcondos.com

This is a real estate question that arises often. We’ll discuss the different scenarios and the people you need to consult to make a seamless transition.

The answer is ultimately yours and depends on many factors: your location, the style of home you currently own, where you’re moving to, and most importantly it’s about your tolerance for uncertainty. Your realtor has the pulse of the market and knows whether it’s a Buyer’s or Seller’s market. 👩‍💻

Buying First: ✅
When you buy first, you know what you’re getting, and you can take your time to find the right property. You must be prepared to sell your current home quickly though. In this scenario, your house needs to be sale-ready. We’ll discuss selling your current home in a future article.

Selling First: ✅
When you sell first, you know exactly what your budget to buy will be, and the home sale is behind you. At this point though, you may feel rushed to find the right home without making compromises that are not ideal. Make sure you have a closing date far enough into the future (e.g., 90 days) to give yourself enough time to find another home. 🏠

Having a plan B, somewhere to stay in the interim, for example, staying with friends or short- term rental, can relieve the urgency, even if it will involve an additional move.

What Should I Do To Prepare? 🙋‍♀️
https://torontoloftcondos.com/should-i-buy-first-or-should-i-sell-first/