Record Toronto home prices may have tipped the scales for those looking to make significant lifestyle changes. A few months ago, when the Toronto housing market was at its hottest, I noticed individuals selling their Toronto homes with no intention of getting back into the market. Instead they were deciding to rent in Toronto and invest their money in recreational properties to enjoy a different lifestyle.
Discussions with real estate professionals in caribbean countries revealed a sharp increase in the proportion of their recreational properties being sold to Torontonians. Word from luxury real estate professionals is that three Toronto families have purchased homes on one street alone at the luxurious Albany Club Resort Community in the Bahamas developed by Joe Lewis. It seems that countries that respect privacy and have reasonable tax structures, such as Belize, Panama and the Bahamas are attracting many well-to-do Torontonians.
A few years ago, many high-income earning Canadians had left Canada to reside in Asian countries with lower taxes. One MetroActive member was able to save over a million dollars in taxes and invested that extra money in Asian recreational rental properties which have been providing him with a net 10% annual return, not including the capital appreciation. He comments, “Why would I pay 54% in income taxes of what I earn above $244,000 and then have to pay 13% in HST when I spend what’s left.”
Recent socio-economic changes in Canada, and specifically Toronto may be adding to the desire to make these lifestyle changes. Concerns over record-level spending at municipal, provincial and federal levels, combined with deterioration of civil rights and legislation to accommodate special interest groups at the expense of the majority may have tipped the cart too far.
For some Canadian families, it is about selling their city residence to purchase their dream cabin or cottage, but for others is about escaping the big cities, which have been going through a socio-cultural shift that now supports a much different lifestyle than that which they prefer. Even in Canada, demand for recreational properties is soaring.
According to a survey by Leger for RE/MAX, 28 per cent of Canadian homeowners with children under 18 would consider selling their primary residence to finance a recreational property. Before you get too excited, understand that the key word is ‘would’ not ‘will you sell your primary residence’.
Retirees and those approaching retirement, are putting most of the equity from the sale of their Toronto or Vancouver home into a recreational property. Torontonians are the largest proportion of Canadian snowbirds in Florida with a large presence in Arizona. Canadians have also been investing in Bahamian recreational properties for years, and more recently have been flocking to Panama and now Belize.
A few years ago, I started talking about the retirement lifestyle strategy. In a nutshell, it takes the equity in your Toronto residence and provides you with a recreational property in a warm climate with the potential for both increased cash flow and capital gains. It isn’t for everyone, but if you have a Toronto home it could be your best option.
Contact me for to arrange a meeting to discuss this option. Baldo Minaudo 416-564-0245.
This Is A Stunning, Solid, Detached Victorian Home In Leslieville! Three (3) Self Contained Units, Renovated Including Mechanics. Beautiful Victorian Detailing…Leaded Glass Windows, High Baseboards, With Soaring Ceiling. Two 1068 SF Self Contained Suites Tenanted ($1420.00 Per Unit), and One 1500 SF, 2 Storey, 3 Bedroom Suite That Can Rent For Approximately $3000.00 per Month (Owner Occupied). Solar Panels That Reduce Hydro Bills. Huge City Lot (23.29’ x 165’) With 6 Car Parking. AMAZING OPPORTUNITY!
Address: 1381 Queen St East, Toronto.
For viewing or more information contact: Baldo Minaudo, Broker, Real Estate Homeward, 416-564-0245.
Home may not appear exactly as shown in picture. Buyer solely responsible to verify all details and information. Not intended to solicit clients under contract with a brokerage.
In this vlog I discuss the AirBnB situation in City of Toronto and the City’s staff recommendations to address the negative impact it is having on the city and its residents.
Rare Opportunity In the Clairlea Neighbourhood of Toronto For This Spacious, Solid-Brick, 5-Level Backsplit With 4+3 Bedrooms, 3 Bathrooms, 2 Kitchens and Huge 50 Foot by 106 Foot Lot Size!! Double-Car Garage With Plenty Of Private Parking. Good Size Back & Side Yard, Great For Entertaining With A Walk-Out From A Lovely Family Room With Wood-burning Fireplace. Hardwood Floors Throughout Most Of The Home With Newer Roof (2015), Furnace and Air Conditioning (2014). Great Location Close To Good Schools, Parks, Shopping, TTC (Public Transit) & More!
The above information is deemed reliable, but is not guaranteed. Buyer is solely responsible for verifying all information and details. Search facilities other than by a consumer seeking to purchase or lease real estate, is prohibited. Not intended to solicit clients under contract with a brokerage.
Brokered By: Real Estate Homeward, Brokerage, Brokerage
Real Estate Agents have been approached by scammers, opportunists, and unscrupulous characters from around the world with all sorts of suspect requests. Some of these requests are so unbelievable that you have to be brain dead to fall for them. Now there is concern that Real Estate Agents are at risk for money laundering schemes.
Though the concern isn’t new, on May 18, 2017, the Fraser Valley Real Estate Board (FVREB, which covers North Delta, Surrey, White Rock, Langley Township, Langley City, Abbotsford and Mission) sent out a warning memo to its members. The very strongly worded memo warns of money laundering strategy that offshore investor clients may attempt.
“It has come to our attention that overseas clients may be asking realtors to allow money to be transferred to their personal accounts so that the Realtors can arrange a bank draft to give to the sellers/developers for their purchase,”
“It’s important everyone understands that this violates federal income tax laws, Fintrac [anti-money laundering] laws and the Real Estate Services Act. It is extremely important to ensure that any exchange of funds is legitimate, legal and ethical before members agree to participate.”
Using this tactic, a transaction could be used to launder money from illegal sources. However, according to FVREB president Gopal Sahota, there have been no reported cases of such an illegal transaction being completed or attempted and the letter was sent as a proactive approach. It was rumours that circulated in the industry, which led to the proactive decision to educate their members.
Cudos to Gopal Sahota and the Fraser Valley Real Estate Board for their proactive approach to maintaining professionalism, safety and security of real estate. A home is the largest purchase that the average Canadian will make in their lifetime. Canada prides itself as a leading jurisdiction in protecting the real estate transaction process and homeowner rights.
This reputation has helped attract investors from around the world. Anything activity that undermines this reputation affects us all.
The Ontario government has passed legislation to regulate the home inspection industry, which establishes qualifications for home inspectors. “The Home Inspection Act 2017” sets minimum standards for home inspection contracts, reports, disclosures and the performance of home inspections. With the new law, individuals performing home inspections must be licensed. Also, a written contract with the homeowner… Continue Reading
48 Summerhill Gardens in the Summerhill Neighbourhood of Toronto Listed At $2,400,000 Exceptional Opportunity! First Time On The Market. Many Great Options. Renovate 2 Huge Existing Duplexes (#46 Aproximately 4,456 Square Feet (3726+1180). #48 Approximately 3,900 (2925+975). Ground Level Walk Out From Basement Onto Decks and Ravine. Or Convert To 2 Grand Single Family Homes In The… Continue Reading
The Building Industry and Land Development Association, known as ‘BILD’, is the voice of the home building, land development and professional renovation industry in the Greater Toronto Area (GTA). The industry that BILD represents, designs, sells and builds complete communities and cities where people work, play, shop and live. It has over 1,450 member companies,… Continue Reading
74 Fulbert Cres in the sought after, prime Agincourt Neighbourhood (Toronto) Listed At $1,249,000 Demand Street! Absolutely Gorgeous 4 Bedroom Backsplit on Child-Friendly Crescent With 3 Separate Entrances! Immaculate – Neutral Decor, Quality Finishes Throughout This Much Loved Family Home. Updated Kitchen and Bathrooms, Pot Lights, Crown Moulding. Second kitchen = Potential In-Law Suite. Large Pantry… Continue Reading
The number of headlines and proclamations that the Toronto Housing Market ‘Bubble’ is about to burst has increased over the last few weeks. So, let me clarify things for you…no one knows exactly what is going to happen in the future. This is all either speculation or reference to specific pieces of data that has… Continue Reading