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Archive for the ‘Rentals’ Category

Should Retirees Buy or Rent?

Tuesday, April 3rd, 2018

A spate of recent news reports have suggested that Canada’s seniors and retirees would be better off to rent their living space rather than to own it.

Proponents say there are a lot of freedoms that come with renting: it frees up your finances and your time from all of the indoor and outdoor maintenance that comes with owning a home. The other perhaps equally big benefit is the amount of equity homeowners can have access to upon selling.

Using that equity to pay for rent and some of life’s pursuits such as travel, cars and dining out are an added bonus. Oftentimes, senior homeowners might have enough equity stashed away that the returns on their invested funds nicely cover the cost of rent.

According to Moneysense.ca, 68 per cent of Canadians are homeowners with the rate rising as people age. The home ownership rate peaks to 75 per cent at about age 65. Rates level off until age 75, where they begin to decline.

But being a renter isn’t all fun and games. As a tenant, you have far less control than an owner about such pursuits as decorating, remodelling and owning pets. Growing accustomed to that loss of control can be frustrating and hard to handle, especially for someone who has owned their own home most of their adult life.

And being a cash-poor retiree whose assets are largely tied up their home’s equity isn’t the doom-and-gloom scenario it once was. With home equity lines of credit and reverse mortgages, seniors can tap into their home’s equity so they can enjoy the kind of lifestyle they’ve come to expect.

The other advantage is that your fixed housing costs likely won’t rise, unlike your rent. This, of course, does not hold true for property taxes and maintenance costs but it will for your mortgage especially if your rate is fixed. In fact, many senior homeowners live mortgage free so mortgage payments aren’t even an issue.

If you’re still uncertain and your decision comes down to dollars and cents, do the math. For buying, factor in mortgage costs, property taxes, insurance, utilities and maintenance. Compare those numbers to rents in the area you’re interested in.  Use online websites to assess the rate increases that come with renting and be sure to include that in your calculations.

In the end, there really is no right or wrong answer to renting versus buying. Weigh the pros and cons of each and decide which suits you better.

Toronto’s Housing Looking Up Again

Monday, August 14th, 2017

The dip in Toronto’s housing market is expected to bounce back soon, says the federal housing agency.

The Canada Mortgage and Housing Corp. (CMHC) says the city’s current decline will be short-lived and real estate prices will pick up again as demand returns. According to the Toronto Real Estate Board, prices in the city fell from an average of $919,589 in April to $793,915 in June; however, the CMHC expects a rise in prices again due to a strong economy and a lack of housing supply.

Toronto’s red-hot real estate market was curbed in the spring when the Ontario government introduced measures designed to cool an overheated market. Included in the measures was a controversial 15 per cent tax on foreign buyers.

The CMHC said similar taxes imposed against foreign buyers in Vancouver worked to calm the market there by reducing the number of foreign buyers. However, the Vancouver market has since picked up again.

“The response we’re seeing in the Toronto market seems almost emotional and a knee-jerk reaction to some of the changes, which suggests that these impacts will be short-lived,” Dana Senagama, CMHC’s principal market analyst for Toronto, told the Canadian Press.

The province’s measures also include more rent controls and legislation that allows municipalities to tax vacant homes.

“If job creation continues in Toronto … and the economy continues to fuel the housing demand, we can expect some of the pressures on house prices in Toronto to resume,” said Bob Dugan, CMHC’s chief economist.

In the CMHC’s recently released housing market assessment, the agency ranked its overall risk rating for the national housing market at strong. The quarterly report is based on information collected from the first quarter of 2017.

Finding a Good Tenant

Wednesday, June 22nd, 2016

It almost goes without saying that landlords want trustworthy tenants, who will be quiet, pay their rent on time and be respectful of their space.

But having that perfect tenant can be an awfully tall order.

Now is probably one of the better times to be a landlord in Toronto because vacancy rates are super low, rents have increased significantly and you have a larger pool of potential tenants from which to choose.

To find that ideal renter, you need to market your room or apartment effectively. According to the Canada Mortgage and Housing Corporation, you should differentiate your property from all others in some way. When compared to other rentals in your area, is yours newer, bigger, more stylish, cheaper, cleaner and safer? Does it have better appliances, amenities and scenery? What is the neighbourhood like? Is it a quiet, family-geared area or a bustling neighbourhood filled with restaurants and galleries?

There’s nothing wrong with advertising your property on Kijiji or Craigslist but be cautious of scammers.  There is a good variety of rental sites, some of which require payment in order to advertise. Viewit.ca is a great website with plenty of photos.

To find the perfect tenant, consider placing a ‘for rent’ sign on your property or try newspapers. You can also post flyers at the local library or grocery store. If you’re interested in renting to students, visit the campus housing office of your local college or university.

You can always hire a realtor to help you. At Freeman Real Estate, we offer a range of leasing services such as pricing, advertising and negotiating. If finding an awesome tenant is too time consuming or bothersome, this is a great way to go.

Be sure to screen your potential tenants. Doing this properly in the beginning can save you the risk of loss in future. You will need to do a credit check. Be sure to ask for a confirmation-of-employment letter in addition to references and first and last months’ rent. Ask your potential renter to fill out a rental application form, which requires information about the applicant’s job, supervisor, income, government identification and next of kin.

While the process of finding your ideal tenant may seem too finicky and tedious, remember that being scrupulous early on may save you headaches down the road.

 

The data included on this website is deemed to be reliable, but is not guaranteed to be accurate by the Toronto Real Estate Board. The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used under license.