It is well-known that in the long-run it has been proven over hundreds of years that it is more lucrative to own your home than it is to rent it. This is especially the case in Canada given our capital gains exemption on principal residences. However, though this is usually the case an the case in the long-run, it isn’t always the case at specific points in time.
It is more lucrative to rent, rather than own your home when the market is in a bubble and it is about to go through a correction. That is something that hasn’t happened in Toronto for decades.
The belief and desire that home ownership is the best thing to do drove millions of Americans to purchase homes they could not afford leading up to the 2007-2008 liquidity crisis and housing crash in the United States. This blind desire to own a home, fueled by the media and misunderstanding of the economics of home ownership, contributed to the skyrocketing of real estate prices. What made it worse was the government’s willingness to help families buy homes when it made more financial sense for those families to rent. Yet, the calculation of whether one should buy or rent is very straight forward.
The cost of renting your home usually includes:
The cost of owning our home usually includes:
When you add up the costs if you were to rent or own a specific home there are years when it is cheaper to rent and years when it is cheaper to own. Theoretically, the cost of renting should be equal to the cost of owning a home (less the principal repayment component of the mortgage payments). Leading up to the devastating collapse of the United States real estate market the comparison clearly showed a significant premium in owning a home. In other words, it was about 25% cheaper to rent than to own. So, home prices were over-inflated and out of equilibrium. It was only a matter of time before the market adjusted itself.
In Canada, the situation includes two additional significant factors; 1) the heavy immigration rate driving increasing demand and 2) the capital gains tax exemption on primary residences. These two items work to drive demand and produce a higher financial return on home ownership. With increasing demand comes increasing prices for rent… and for home prices.
Very simply, the more people that need a place to rent, the more a rental unit will rent for. The more a rental unit rents for, the greater the value of the unit and the property it is located at. Though in Canada, the price of housing increased at a greater pace than rent, due to rent control. After a few years of rising housing prices, the pressure was put on by tenants to offer more rent to secure under-priced rental units.
In Toronto, the housing market continues to be in a state of disequilibrium as demand outpaces supply, which is kept tight by regulations and policies of all levels of government and the development and tax costs forced on developers by those governments.
Though a young professional might be tempted to rent a lower-cost unit in Toronto (if they can find one), the reality is that if they don’t buy their own place, their chances of home ownership might be worse in the future and certainly their accumulation of wealth will be significantly hampered.
To take advantage of the housing market returns, many millenials are renting in Toronto to live and buying in smaller communities where prices are low and they can get a rental income as the property appreciates in value. They can then use the equity in that property to buy their Toronto home down the road.
If you’re like me, you struggle to find just the right housewarming gift for a friend, relative or client that has just moved into a new home. Yet, this is one of the most important times in one’s life and what you gift could make a difference in your relationship.
Remember that when buying gifts for someone moving into a new home, you want to give something that they will appreciate, use often, show that you know them and that you care enough to find the right gift just for them. Whatever gift you choose, you’re likely to make a better impression when it is customized to the individual. Monogrammed items, items with their name, their favourite colours, sayings, reference to their life journey, work, play, relationships, lifestyle or sports team affiliations will make that extra difference.
Share some of your good, and not so good stories, about housewarming or homewarming gifts you’ve given and the outcome.
It is important to know the signs of a hoarder because hoarding is a dangerous behaviour which can lead to fires, insect and rodent infestation, disease and other serious health, safety and legal consequences. Recognizing a hoarder will help prevent a situation which can be costly, if not disastrous for landlords, partners and housemates. In my work as a Real Estate Professional and Property Manager, I sometimes come across homes where hoarders are living. Sometimes they are owner-occupied and sometimes they are tenanted, but in both situations they require a lot of time and effort to deal with the situation. This post will help you recognize the signs of a hoarder, understand the impact of hoarding and will provide some references for the process to deal with the situation and useful techniques.
Hoarding is more accurately known as Hording Disorder or Compulsive Hoarding. It is a behavioural pattern expressed through excessive accumulation of, and inability or willingness to discard, large quantities of objects that cover the living areas of one’s home, causing significant distress, and/or persistent discontent resulting in impairment to one’s quality of life and ability to function. Hoarding behaviour is often associated with not just health risks and impaired functioning, but also workplace impairment, economic burden, as well as, adverse effects on family members and friends. At extremes, hoarding can prevent intended use of space to the point that it limits activities, such as sleeping, moving through the house, cleaning, cooking and entertaining.
Though in most cases, hoarders are aware of their irrational behaviour, the emotional attachment to the hoarded objects is much greater than the motive to discard the items. In fact, the underlying attachment may not be about the items themselves, but the need to simply accumulate items for a sense of security and/or stability.
Though it remains unclear whether compulsive hoarding is a separate, isolated disorder, or simply a symptom of some other condition, from my experience I have found that it is tied to some traumatic event or ongoing dysfunctional situation that occurred in one’s past. Regardless, it is considered to be a Compulsive Obsessive Disorder. Importantly, hoarding only gets worse with age. Getting to the underlying cause of this behaviour is essential to dealing with hoarders. However, you’re not likely to cure them and should recruit the help of a qualified and experienced mental health professional or coach.
There are some red flags or signs that you should be aware of when identifying a hoarder. Some of these signs are easier to identify than others and they should never be considered conclusive proof that an individual is a hoarder. Use them as red flags to explore the possibility as part of your due diligence process in dealing with individuals.
Though it may be too late for landlords to avoid ahead of time, these are the signs of hoarders inside their homes (in addition to the above):
It is estimated that between 2% and 5% of all adults are hoarders. So, if you deal with tenants or homeowners, you’re likely to come across hoarders more often than you may think. It is good that you be prepared by having a process, techniques and professionals in place to help deal with these situations.
I’m working on my next post to discuss the process, resources, and techniques in dealing with hoarders. Follow me on social media or visit my website regularly to be notified of when it is published.
Baldo Minaudo, M.B.A. (Direct: 416-564-0245)
Real Estate Broker, Real Estate Homeward Brokerage Inc.
Property Manager specializing in downtown Toronto rental condos and Toronto east-end rental detached homes (not affiliated with Real Estate Homeward Brokerage Inc.)
#hoarding #hoarders #hoardingdisorder #compulsivehoarding
CUPE, The Canadian Union of Public Employees announced yesterday that they are willing to escalate their work-to-rule campaign and launch a “full strike action” if a deal cannot be reached. Laura Walton, who has led negotiations on behalf of the union stated, “Make no mistake, CUPE members are prepared to go on strike. We are ready.”
Already, three major school boards have announced they will be closing schools during the strike action. This will potentially affect the education and physical activities of hundreds of thousands of students in Ontario, mostly in the Greater Toronto Area.
Thousands of activities affecting students, parents and adults that have been using school facilities will be affected by this strike action. Don’t let it interfere with your scheduled activities.
There are spaces that are available, including private clubs and sports centres. However, they will book up fast.
There are two spaces available in Toronto’s Upper Beaches on Main Street.
On site parking with access from Main Street and rear entrance.
For details on both these spaces visit this post: Available Space
If you’re interested, contact me directly, Baldo Minaudo, M.B.A., Broker, Real Estate Homeward Brokerage. Direct: 416-564-0245.
Note: A standard gymnasium size is 50 feet by 84 feet. Some high school gymnasiums are larger with dividing walls and can accommodate regulation size basketball games. This gymnasium was built in the 1950s to accommodate the youth of the Calvary Church community in the upper beaches.
Welcome to The Hemingway Condos at The Contemporary Urban Village at The Shops At Don Mills. This one plus one (1+1) bedroom unit on the 4th floor has one of the best views in the building. The North Facing view provides a quiet atmosphere amidst the trees and greenery. You would never suspect you’re in the city until you go up to the rooftop patio and garden and capture a 360 view that includes the core of Toronto’s cityscape with the CN Tower and surrounding high-rises, the Yonge/Eglinton and Yonge/Sheppard clusters, and the expansive vista of detached homes and landscapes in between.
The unit offers a clean layout with functional kitchen, breakfast bar and open concept that combines dining and living rooms with direct window view. This recently renovated unit is ready for you to make your abode with your personal touch and character. New laminate floors and paint throughout provides a clean fresh space.
This unit is unfurnished and does include window coverings. Appliances include washer, dryer, stove, refrigerator, cooktop oven, microwave, dishwasher, parking and storage locker. Includes Heat, Water, Air Conditioning, Parking, Storage. Tenant pays for own use of Hydro and Cable/Internet.
The Hemingway is an in demand building with limited available. It’s known for its quality of environment as can be seen through the reviews found on Google with an
The Hemingway Condo provides great amenities including: 24 hour concierge service, modern lobby, Exercise Room, Swimming Pool, Rooftop Terrace with BBQ, party room, security guard and lots (I mean lots) of visitor parking.
The Rooftop Terrace and Garden is well-done and maintained. It provides a great place to hang out and enjoy the open air, view and company of some friends. Book one of the quality BBQ stations and show your culinary mastery.
Take some time to practice your putting on the rooftop putting green.
Cross the street and enter into the Shops at Don Mills with its upscale shops, restaurants, cafes, VIP Screening Room Cineplex Theatre, Centre Square and the wonderful seasonal sculpture and events. Take a walk to discover nearby walking trails, parks. Very close to DVP and TTC.
The parking garage is really well lit and clean making it feel safe. The hallways are also clean and well lit, providin
g a positive feel.
This unit is perfect for the young professional or mature individual looking for a quiet building with access to a vibrant lifestyle in a diversified community of fashionable professionals of cultures from around the world. Great place to make new friends, stay at the forefront of innovations and develop your network.
Whether you’re a corporate executive, professional, entrepreneur, writer, artist or social media influencer, this building and this neighbourhood will provide you with both the inspiration and environment to produce, relax and excel. For more information on the neighbourhood visit Living At The Shops At Don Mills
If you’re a AAA tenant, don’t miss this exclusive listing opportunity. Application form, credit check, proof of income and/or employment is required.
Listed through Baldo Minaudo, MBA, Broker, Real Estate Homeward 416-564-0245
*** Not intended to solicit clients under contract with a broker***
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