Midrise Condo Battle may go to Mediation with OMB High-profile residents of the Annex have brought their fight against a proposed midrise condo development to the Toronto & East York community council, which agreed Wednesday to have the city’s lawyer ask for mediation at the Ontario Municipal Board – a move they will consider next month – which is most likely to go forward. In our previous article, we mention the outrage residents had against the proposed development at 321 Davenport, with complaints from residents such as Margaret Atwood and Galen Weston Jr., both calling the development a “brutal and arrogant assault on [their] community.” Not to mention, the issues they have with privacy, as balconies may provide potential residents the ability to peer into their backyards at any time. There was little mention of any other issues in the previous post that was published, however, another concern has been made public after many residents of Toronto lashed out on social media, calling the likes of Atwood and Weston Jr. NIMBYs, which they intended to respond to. They have taken a stance, stating that they are not against the development, but that they have concerns surrounding the initial proposal of the development and the impact it will have on the environment, citing a concern such as the preservation of mature trees in the area. The proposal is said to develop “luxury” style homes within a condo building sitting 8-storeys high, with 16 large condos. City staff are in support of this development, as it is going to take the place of a 2-storey commercial building. Through mediation, developer Robert Cooper is hopeful that this will be resolved, as they are “willing to work cooperatively with the neighbours” to achieve a proper final proposal that provides “new midrise housing opportunities and appropriate intensification within an urban neighbourhood.” Atwood’s lawyer, Michael Melling too believes “[the] concerns can be resolved.” If you are in need of a planning and development lawyer or real estate lawyer, please contact our Planning and Development lawyers or Real Estate lawyers today. If you have any other questions, you can contact our office directly at (416) 449-1400. By: Nicolas Di Nardo “This article is intended to inform and entertain. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Planning and Development Law, Real EstateSeptember 7, 2017June 18, 2020
Toronto Housing Market Update: August 2017 Home sales slowed down through August so much that there was a 34.8 per cent drop in sales compared to last year. This marks the fourth month in a row where sales and home prices have dropped. July’s average price was sitting at $746,033 while August had an average price of $732,292. Since the introduction of the 16 measures in April, the current average price has seen a significant drop. April’s average price was almost $1 million. Not to mention, the number of new listings was the lowest recorded for August since 2010, and down 6.7 per cent from last year. If you are currently searching for a property or have a plan to purchase property in the near future, contact our Real Estate Group with any questions or concerns you may have. Browse our Real Estate lawyers page and contact them directly, or, call our office at 416-449-1400 for more information. By: Nicolas Di Nardo “This article is intended to inform and entertain. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Real EstateSeptember 6, 2017June 18, 2020
Mid-rise Housing, The Next Best Thing for Toronto Real Estate? With detached homes in Toronto reaching unattainable prices and an abundance of high rise condos taking over the city skyline, most of which are either purchased and sitting empty or demanding rent that is extremely high, could midrise development within some of Toronto’s neighbourhoods be the answer to the homeownership struggle many Torontonians are facing? Toronto planners think so, as they claim it would not overwhelm neighbourhoods and at the same time, will provide housing for thousands. Midrise buildings are typically four to eleven storeys, that many NIMBYs are opposed to having populated their neighbourhoods. To find out more on NIMBYs and their influence on Toronto’s real estate, check out two of our previous blogs: Affluent Boomers are Taking Pressure from ‘YIMBY’ Groups in the GTA Reasons Why A Starter Home is No Longer an Option Midrise development is, unfortunately, becoming tougher for developers to propose and carry out, as these so-called NIMBYs, or locals to the neighbourhoods in which the midrise development is being proposed, fight these developers to try to halt their project. In the most recent fight against a midrise development, these angry residents feature some of Toronto’s elite, such as Margaret Atwood, Galen Weston Jr., Scott Mcfarland, and his wife, Cleophee Eaton (yes, the department store). Some of their claims to the government include simply, ruining the Annex and destroying their quality of life. An excerpt from Weston’s email to Toronto city councillor Joe Cressy reads: “The development, designed as is, will change the neighbourhood in such a negative capacity and will devalue all of the assets we currently love about living here; it will no longer be the ideal place for our young family to grow up. This building is an invasion of our privacy, our community, and an environmental assault on our neighbourhood.” Now, they are probably concerned mostly about their privacy. With success comes money, with money comes entitlement (for the most part). As columnist Emma Teitel puts it, “they’ve chosen to make a stink about the possibility that someday down the line, someone standing on a balcony will be able to peer into their yards and see them barbecuing corn.” They are failing to see the benefit of such a development. Their blurred reasoning and understanding of this development proposal, maybe due to the fact that they are very successful and don’t want peering eyes into their backyards as Teitel said, or it could merely be because they don’t know what it is like to not own a home in the fourth-largest city on the continent, thus they cannot fathom what it is like to be an average Torontonian in this day and age, and how much these midrise developments really do benefit not only the city but the area it is situated in as well. As much as people don’t like change (take the recent renaming of the ACC to Scotiabank Arena as a prime example) you are forced to either adopt, adapt, or leave. As many like to put it, you better shape up or ship out. In the past, NIMBYs have fought against an Ossington midrise, that they took all the way to the Ontario Municipal Board (OMB). In 2015, the OMB approved the project but made minor modifications to the plans. It was a six-storey, 85 suite building. Now that it is up, it is clear that it is the best thing to happen to Ossington in the last century, and many of the so-called NIMBYs are starting to realize that. With the outrage for the proposed Davenport midrise, will it surprise anyone if the fight goes all the way to the OMB? Probably not. Based on Galen Weston’s email to Cressy, it sounds like he will take it upon himself to make sure the OMB does review it. Yes, the Annex is home to a number of notable figures, but it is also a central neighbourhood with a subway, shops, and is walking distance to a major university in the city. The fight to limit the accommodation of people who inhabit Toronto, especially a region within Toronto that is already a bustling metropolis, therefore, seems foolish of the elite to be against. You’d think with all of their smarts and success, along with the results of past challenges presented to the OMB, our influential Annexers would think twice and let it be. If you are in need of a planning and development lawyer or real estate lawyer, please contact our Planning and Development lawyers or Real Estate lawyers today. If you have any other questions, you can contact our office directly at (416) 449-1400. “This article is intended to inform and entertain. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Planning and Development Law, Real EstateAugust 31, 2017June 18, 2020
Barrie’s Real Estate Market Struggle Many home-buyers got caught in the spring real estate downturn. As a result, many homes have had delayed closings and people have even backed out of real estate deals, not caring that they will lose their deposit. Most of this stems from the buyers deciding to purchase a home in the heat of the market, placing a competitive down payment, only to realize that as their closing date approaches the value of the home has decreased significantly, sometimes more than the deposit that was made. Others have not been able to close due to the mortgage amount not meeting the purchase obligation of the home. Peggy Hill, a real estate agent for Keller Williams said, “closings have been stalling [everywhere] since the end of June.” In Barrie, even though prices are not at the level that Toronto has seen, the drop has been precipitous. Barrie’s average price for a home was $471,822 in July, while March was $570,199. That’s a $100,000 difference in a matter of months. Back in July of 2016, 208 of 260 homes listed were sold, but this July saw 201 sales with 683 active listings. The real estate frenzy in Barrie mimicked that of Toronto, with home selling in a week well over list price. Barrie homebuyers were even experiencing the same competitive market when looking to buy, resulting in bidding wars, and competing with people who live outside of the region, like buyers from Toronto who wanted to get out of the city. Unfortunately, the tough lesson here is that “a heated market does not automatically translate into a true market value. When you take away the heat, it settles down into something that is perhaps more reflective of what true market value is,” says Appraisal Institute of Canada’s CEO Keith Lancastle. Buyers tempted to walk have to realize that they may face a lawsuit. For example, if a house is bought for $500,000 and you decide to forfeit the deposit, the seller goes and gets $450,000 from another buyer, you can be sued for the difference. Realtors may also sue, because they are not getting a commission and have to incur additional legal and carrying costs. Some advice, be careful in the current real estate market. If you can wait it out, it may be a better idea than investing now, you don’t want to end up backing out of a deal only to realize you owe money to the seller and/or are being sued by a realtor. If you are in need of a Barrie Real Estate or Commercial Real Estate lawyer, please visit our website and contact one of our Barrie Real Estate lawyers today. If you are in need of any other services or have any questions, you may also contact our Barrie office directly at 705-812-2100. By: Nicolas Di Nardo “This article is intended to inform and entertain. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Real EstateAugust 28, 2017June 18, 2020
Six Figure Income Required To Buy in the GTA If the past year of insanely high home prices hasn’t made you rethink home ownership, maybe this new report will. Two real estate companies conducted separate studies and have come up with the income requirements if you are looking to afford a home in Toronto. The results don’t seem to benefit Canada’s millennials. A majority of millennials out there, approximately 59% of those aged 25 to 30, would like to own a detached house in 5 years. Well, sorry to burst your bubble, but according to research by TheRedPin, the annual income needed to afford the average detached house in Toronto ($1.15 million) is a whopping $200,663 with monthly mortgage payments of $4,349 (based on 20 per cent down, 2.99% mortgage, amortized over 25 years). A condo does not give millennials much hope either, with the average price being $576,000, you’d need an income of $92,925 to carry payments of $1,933 a month, plus tax, utilities, and condo fees. While these numbers start to slowly change, people in their late 20s are going to continue to face affordability issues compared to their parents. While cities like Toronto provide the best opportunity for employment for young adults, they result in being the most expensive markets to own property. Going outside of the city to live and work may seem like the better option, but it is still relatively expensive: Buyers need more than $150,000 a year to cover the cost in half of 22 Toronto area municipalities Oshawa needs an annual income of $108,773 to afford an average home of $552,268 King Township needs $264,000 a year to afford $5,883 in mortgage payments with an average price of $1.6 million Many young adults looking to escape their family home, stop paying rent, and find a place to call their own, cannot afford to put a down payment on a condo or house. Nearly 25 per cent have looked to family for assistance on a down payment. Even though that number is quite low, it may continue to grow with the rate the market is going. It isn’t as easy to afford housing as it used to be. If you are in need of a real estate lawyer, please visit our website and contact one of our real estate lawyers today. If you are in need of any other services or have any questions, you may also contact our Toronto office directly at 416-449-1400. By: Nicolas Di Nardo “This article is intended to inform and entertain. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Real EstateAugust 22, 2017June 19, 2020
Is Toronto Now a Buyers’ Market? By: Nicolas Di Nardo The CREA has stated that the GTA has had the biggest drop in sales in June, and Toronto has now fully moved from sellers’ territory (ratio above 60 per cent) to buyers’ territory (ratio under 40 per cent). Patterns of sellers facing difficulties offloading properties as buyers sat around hoping for prices to come down, may have led the change. Sales-to-listings ratios are also a benchmark that is utilized to determine the territory, which the following can be identified: Balanced: 50 per cent (5 homes are sold for every 10 that come on the market) Sellers’: 60 per cent plus Buyers’: 40 per cent and below This is a significant change in Toronto’s market. If you take a look at the ratio in March, that stood at 86 per cent. Considering the effort put in by the government to assist in cooling down the hot Toronto market, it seems to now be taking some effect. Not only has it changed the way people are now looking at the housing market, but they are beginning to deter buyers from snatching up every single property within Toronto, due to the new initiatives in place. This drop is the largest monthly decline since 2010. Homes priced at $1.5 million and above have seen very little action, with low attendance to open houses, and being on the market for weeks rather than just a weekend. It will be interesting to see if the decline will continue, or if the current market trend and prices will stay stagnant into 2018. “This article is intended to inform and entertain. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Real EstateJuly 19, 2017June 22, 2020
Rent Increase capped at 1.8% in 2018 By: Nicolas Di Nardo Under Ontario law, rent increases can not exceed 2.5 per cent. However, under the new housing reforms, the Liberal government extended their rent control to buildings since 1991 and landlords are required to apply to authorities if they are seeking to increase rent by more than 1.8 per cent next year. This will be done under what is known as The Rental Fairness Act, 2017. The Rental Fairness Act, 2017, will effect all privately-owned rental properties across the province, which is looking to help cities like Barrie from soaring rental prices. The Ontario Ministry of Housing has set the rate at 1.8 per cent, basing it on the provincial consumer price index, in the hopes of providing better housing to Ontarians. Barrie is in need of this cap. Based on data collected from PadMapper at the end of January, Barrie is the eighth most expensive city to rent in, when just three months prior it was sitting at 15th. It is now one of the most expensive cities in Canada to rent in. For example, recent rental rates have the average price of a two-bedroom unit sitting around $1,500 per month plus utilities. Renters are having trouble trying to find anything lower than that, even with a budget of $1,000 a month (inclusive), prospective renters are spending months searching for a place they can afford. With the new reforms in place, it will allow renters to afford to get into an apartment, and live there year after year, without the fear of rent being increased to an amount they will struggle to afford – it will be more predictable which can help renters get their finances in order. These protections come after a series of “unreasonable” rent increases and tenants being evicted from their units by their landlords. Landlords will now face a penalty if they evict tenants for personal reasons such as moving in a family member. Additionally, Premier Kathleen Wynne implemented this as part of their housing reforms in order to cool down the then-overheated housing market in April, when units built after 1991 were showing evidence of rent and sale price increases. There are exceptions to this cap. The cap does not apply to: Vacant units Social housing Nursing homes Commercial properties If a landlord makes improvements to their units, they have the option to apply to the Landlord and Tenant Board for increases (no more than 2.5 per cent). As a result, 250,000 tenants will be protected and 1.2 million private rental units will have to follow the new rent cap. If you are in need of a Barrie Real Estate lawyer, please visit our website and contact one of our Barrie Real Estate lawyers today. If you are in need of any other services or have any questions, you may also contact our Barrie office directly at 705-812-2100. “This article is intended to inform and entertain. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Real EstateJune 27, 2017June 22, 2020
Reasons Why A Starter Home is No Longer an Option By: Nicolas Di Nardo Toronto’s chief planner Jennifer Keesmaat says you won’t be able to have the traditional starter home that previous generations have had in the city of Toronto anymore. With current prices, increased condo and apartment developments, and fewer single-family homes being built, the idea of a starter home with a patch of grass is starting to disappear. As stated in previous blogs about: Affordable Housing Should Be a High Priority for the Next Provincial Election Toronto Must Figure Out Housing Solutions or Risk Losing Top Young Talent Toronto Housing Solution: Laneway Suites Affluent Boomers are Taking Pressure from ‘YIMBY’ Groups in the GTA All expectations must now change, as Toronto’s housing landscape takes a turn. Jennifer has even encouraged her own children to imagine raising a family in an apartment, rather than a house. From previous research conducted, as mentioned in our previous blog, housing preferences for the next set of homebuyers is out of sync with what is currently available, as well as what home-buyers are capable of affording. With the statistics listed in the above blog post: In April, Toronto’s detached re-sale homes hit $1.6 million on average. To make matters worse, young professionals aged 18-39 say: 32% plan to buy a home in the next year 58% say high prices are why they won’t buy a house in the next year 19% will stay in their current home 17% want a townhouse 51% want a detached house 13% want a semi-detached 17% already own a home It makes housing a much more important issue when you compare the above stats with the single statistic that, 83 per cent of housing built from 2011 to 2016 in Toronto consisted of midrise and high-rise apartments. Jennifer went before the Toronto Region Board of Trade (TRBOT) with all of her concerns, and even suggested that condo developers should reconsider the amenities they put into their buildings. For example: Replace pools with gymnasiums Introduce craft and media rooms As a result, there will be a focus on young children and provide a more welcoming environment for families. From all of these developments in the Toronto real estate market, young professionals are the ones most effected. As mentioned in another blog post and in Jennifer’s speech, young professionals are fighting against foreign investment, rising prices, and the fact that the housing they want is either occupied or sought after by other parties. To make matters worse, millennials are faced with these obstacles while on an entry level salary or position, pushing them further and further out of the market and the city. Hence, the push for laneway suites and town-homes. These two solutions could help increase the housing options in the city while using existing structures and limiting the development of new communities. This idea was discussed following Jenn’s speech and was also a topic for one of our previous blogs and it is believed that if this is implemented, it will add “gentle density” to areas around the city. Considering 62 per cent of land in the city is zoned for single family homes and Toronto has 300 kilometres of laneways, there is space to work with for the development of town-homes and laneway suites. The Fair Housing policy, along with the involvement from developers, the city, other levels of government, and public support, Toronto’s housing will eventually become affordable and provide an abundance of housing options for all levels of income and preference. Once the YIMBYs can outweigh the influence of the NIMBYs, everything will fall in place for Torontonians. At least, that’s the hope. If you are in need of a real estate lawyer, please visit our website and contact one of our real estate lawyers today. If you are in need of any other services or have any questions, you may also contact our Toronto office directly at 416-449-1400. “This article is intended to inform and entertain. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Real EstateJune 23, 2017June 22, 2020
Affluent Boomers are Taking Pressure from ‘YIMBY’ Groups in the GTA By: Nicolas Di Nardo During the recent Ontario Housing Summit the main focus was on millennials and home ownership, and the consensus of the Summit was that there is a need for more affordable housing supply. Some of the points that were made are: Boomers are restricting access to prime property Boomers would like to move out, but don’t see any suitable alternatives in their area Trade down houses (townhomes, midrise condos, duplexes) are not zoned in desired area “Missing middle” or those defined as trade down houses for boomers, starter homes for millennials, are not available NIMBYs, “not in my backyard” homeowners oppose development of such buildings in single-family home neighbourhoods However, there is a rise in YIMBYs in Toronto. YIMBYs are the supporters of affordable housing, or as the name goes, “yes in my backyard” homeowners. Toronto’s YIMBY group is known as Housing Matters, they are a group of activists. They are growing fast and hope to bring change to Toronto’s affordable housing, however, they must take more action than just utilizing social media to get their message across, they must approach the city and other groups with hard facts and evidence that affordable housing will be able to benefit not only the city, but the neighbourhoods they will be in. Until the city can determine what to do, it is a waiting game. For now, we’ll have to see what the government’s current measures to cool down the market will do, as it seems to have some impact on the housing market in Toronto already. If you are in need of a real estate lawyer, please visit our website and contact one of our real estate lawyers today. If you are in need of any other services or have any questions, you may also contact our Toronto office directly at 416-449-1400. “This article is intended to inform and entertain. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Real EstateJune 21, 2017June 22, 2020
Toronto Must Figure Out Housing Solutions or Risk Losing Top Young Talent As we are well aware, Toronto’s housing market has been a hot topic for some time now, with the rising prices and record sales. Unfortunately, for those who can’t afford to purchase a home for whatever reason, it leaves them renting within the city, or forces them to move to the suburbs with the hope that they can potentially afford something outside of Toronto. An article released by The Star features a couple, Chris Dunne and his fiancée, both young professionals, who are hoping to get out of their rental and begin their adventure as homeowners, get married, and start a family. Again, the current market is continuing to put a dent in their dream. Dunne and his fiancée, both 28, currently rent a condo in the area of Spadina Rd and Queens Quay. They both have steady jobs, but yet, they are struggling to find a place to call their own and begin a family. They moved to Toronto from Newfoundland 18 months ago with a dream, to live in Toronto. With a wedding planned for next year and plans for children, they want to find a place with a patch of green to call their own. The issue: it comes down to simple supply and demand. With no middle ground when it comes to the Toronto housing supply, it leaves few options for buyers. Before government involvement and the spring market, Toronto’s supply did not line up with demand. Supply was low, while demand was high, leading to high prices on the supply and demand graph. Currently, Toronto’s supply consists of primarily small condos and detached homes. There are few semi-detached and town-homes within Toronto available to current home-buyers. The current government involvement, spring listings, and demand for detached homes still high, sales have begun to decline. This is reflected through listings being active for longer than a weekend, and fewer sales as a result, as stated in our recent real estate update. In April, Toronto’s detached re-sale homes hit $1.6 million on average. To make matters worse, young professionals aged 18-39 say: 32% plan to buy a home in the next year 58% say high prices are why they won’t buy a house in the next year 19% will stay in their current home 17% want a townhouse 51% want a detached house 13% want a semi-detached 17% already own a home *Source: Environics Research for the Toronto Region Board of Trade. Survey-based off 387 people aged 18-39, part of a bigger 1,000 person survey Of the people who expect to buy in the next year, 81% don’t want to live in a condo and 69% want a house with at least 3 bedrooms. The Board of Trade CEO, Jan De Silva is urging the city or province to begin diversifying our supply to meet the needs of all residents and has even suggested they make it legal to add just one laneway house, coach house, or duplex per hectare in detached home zoning areas. This solution would allow individuals priced out of the detached home market, that don’t want to live in condos, to own a home, and would accommodate 45,000 people in Toronto. Unless this situation changes, the region could be compromising its ability to attract talented professionals to the city of Toronto. Without businesses being able to attract and retain young professionals or newcomer talent, our economy will begin to struggle to succeed. If you are currently searching for a property or have a plan to purchase property in the near future, contact our Real Estate Group with any questions or concerns you may have. Browse our Real Estate lawyers page and contact them directly, or, call our office at 416-449-1400 for more information. “This article is intended to inform. Its content does not constitute legal advice and should not be relied upon by readers as such. If you require legal assistance, please see a lawyer. Each case is unique and a lawyer with good training and sound judgment can provide you with advice tailored to your specific situation and needs.” By Fauzan SiddiquiBlog, Real EstateJune 1, 2017June 24, 2020