Renovations can double the value of kitchens

Done correctly, kitchen renovations can add significantly to the resale value of homes.

“It could increase the value of the home by 4-6%,” said Tom Storey, team lead at Royal LePage Signature Realty. “It’s really just a return on the money you’re putting in. If you’re putting in $50,000, it could get you $75,000-80,000 in pure ROI dollars, but it has to be done correctly. It’s not like just any renovation can add value to your home. If you do it the right way and don’t use cheap materials, it could make a difference. What a lot of contractors will tell you is to spend extra money on the things you will touch every day, like a doorknob, tap, fridge, because you will notice those things more as you live there.”

It’s easy to break the bank on a kitchen renovation and that might limit how much can be added. Andrew Hibbs, owner of Edmonton-based Kitch, noted that, much to the frustration of homeowners, there’s a substantial gap between expensive, tailor-made kitchen products and standard Ikea systems that can be bought off the shelf.

“The kitchen is the hardest to redecorate because you’re not just throwing down a rug. Having an older home or a newer home with new cabinetry that has a current look is the key to selling your house for top dollar, and selling it quickly,” he said. “More people are of the opinion that they don’t want to go full custom shop because the timelines are longer these days and price points creep up every time they want to add another nook and more detail.”

Kitch’s cabinetry and shelving are made for inexpensive boxes, which Hibbs says reduces both price and delivery lead time. Moreover, a good kitchen renovation, which would typically run $20,000-40,000, can even double the value of the room.

“I would say that for any kitchen reno, whatever you put into the kitchen you’ll probably see a double return on it, at least,” said Hibbs. “If you put $30,000 into your kitchen, you should see $60,000 back on the sale end, but it also depends on the rest of the property too. In general, you double your money.”

2021-07-26 13:26:11

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Montreal is Canada’s leading luxury market: Engel & Völkers

Low interest rates and unprecedented household savings drove Canada’s luxury housing market during the first half of the year, and while demand has let up a bit, it will remain robust through the rest of 2021, says a new report from Engel & Völkers.

“After an unprecedented run, premium real estate markets are normalizing across Canada’s most in-demand cities, and that’s a good thing. At a global level, Canada’s real estate market is largely undervalued. But with low housing inventory and the buyer frenzy we saw in the first half of the year, Engel & Völkers believes the unprecedented demand for luxury properties will sustain. Local demand for luxury housing increased exponentially during the pandemic and international buyers are excited to return after a year of border closures. 2022 will be a year to watch,” said Anthony Hitt, president and CEO of Engel & Völkers Americas.

Montreal and Vancouver are expected to remain top destinations for international purchasers of luxury real estate, however, because Canada’s housing supply is constricted it will create tighter market conditions, says the report.

Montreal is doubtless investors’ favourite luxury market in Canada. The city attracts purchasers from French-speaking parts of the world and its robust employment opportunities and reputed educational institutions, not to mention its relaxed pace of life that’s evocative of Europe, have turned the city into a global destination. Home prices and production increased during H1-2021, with sales over $1 million rising surging by 115% in January to 131 from 61 during the same month last year. Sales of plexes in the city rose by 74% through the first four months of 2021 compared to the same period in 2020, while $1 million-plus condo sales increased to 138. Properties in Montreal are still favourably priced for investors, and Engel & Völkers noted that they’re creating funds to buy luxury detached homes in Westmount and Outremont, two of Montreal’s most prestigious neighbourhoods.

Vancouver, fresh out of the third wave of the COVID-19 pandemic, has a promising luxury market, says the report. Recreational properties, especially with resort-style amenities, outside of the city are in high demand among city dwellers. The city’s luxury condo market has also been strong all year, with buyers demonstrating preference for things like square footage, amenities and parking, irrespective of price. Engel & Völkers says the city remains a seller’s market, although it’s slated to balance in autumn. Vancouver is also anticipating an influx of new residents from around Canada and internationally, some of whom will begin driving ultra-luxury home sales in the city.

2021-07-26 13:33:53

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Mortgage professionals finding ways around refinance backlog

Home sales in Canada, while elevated by historical standards, are decelerating and mortgage underwriters are finally beginning to turn their attention to the backlog of refinances.

Although that’s the case, good mortgage brokers leverage strong relationships with their lending partners to get their clients’ files moved to the front of the line. Certified Mortgage Brokers Toronto, a brokerage that mainly works with chartered banks and alternative lenders, has been running a campaign of late emphasizing its above-average turnaround times, which is made possible by its intricate CRM. Since the brokerage has built its business on expeditious turnaround times, which is no small feat in the broker channel, it’s decided to exploit that strength at a time when refinances are taking weeks to fulfil.

To understand why the market has become so inhospitable for transactions as ostensibly simple as mortgage refinances, Shamil Shamilov, founder of dNOVO, a Toronto-based digital marketing company that has a sizeable roster of clients in the real estate and mortgage industries—and, therefore, has an insider’s perspective on the market—says that lenders simply have a dearth of staffing.

“Underwriters have been focusing on the deluge of purchase files that have fallen on their desks because funding a purchase is more of a priority than a refinance,” said Shamilov. “But what we’re seeing right now is, even though underwriters are finally getting to refinances, turnaround times are incredibly slow.”

Although refinances have taken a backseat to purchase files, the volume of those dossiers has risen inordinately. Mortgage broker Leon Turkin explains the reason is a combination of low-interest rates and massive home equity growth that’s a result of a frenetic sales pace over the last year or so.

“It’s a no-brainer for people to turn to refinances at this time because the Bank of Canada has already said it fully expects to increase its benchmark interest rate by 2022, so people are rushing to access cheap money in their homes, which have benefited from white-hot sales across most of the country,” said Turkin of the Turkin Mortgage Team.

Last week, the Bank of Canada decided to maintain its benchmark rate but the clock is ticking and Canadians are on notice. Consequently, real estate professionals—even some of the seemingly unlikeliest—have been left scrambling to keep up with demand for their services, and just like Certified Mortgage Brokers Toronto, some are building their businesses on how quickly they get things done.

“It isn’t just mortgage brokers and underwriters who are feeling the heat from all this extra demand,” said Mariya Berenbaum, owner of MB Property Law, real estate lawyer in North York.. “There’s been an increase in people trying to secure the services of real estate lawyers, especially because refinancing a mortgage isn’t always as easy as it sounds, but lawyers are backlogged right now. At M.B. Property Law, we’ve made it our mandate to answer every call and work those extra hours to help our clients refinance their mortgages at regular turnaround times. Word’s gotten out that we’re meeting regular turnaround times and our phones have been ringing non-stop.”

2021-07-26 02:29:34

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GTA townhomes give semis, detached homes run for their money

Townhouses used to be affordable ground-related housing options, but in cities like Toronto where price points are close to seven figures, buyers want more bang for their buck.

“Townhomes used to be what passed for houses or semi-detached living, even community living, but they were cookie cutters at the time, although they were affordable ways of giving people the opportunity to have direct access from the street to a home with a backyard and terrace space,” said Dan Menchions, a partner at I BY IV Design, which designed The Willows Townhomes Collection at Bayview the Village, developed by Canderel Residential.

Townhomes in the GTA are evolving to reflect their price points—while not entirely luxury commodities, they aren’t far off—and that’s reflected in The Willows Townhomes, which is part of a 238-unit condominium development, and which has a rich amenity package that townhome purchasers will have full access to.

“You have direct access from the street front and you also have your backyard in a house-like environment, but while still being part of a community that’s right beside you,” said Menchions. “The Willows has higher-end finishes from the flooring to the countertops; the ceiling heights are 10’ and most kitchens are L-shaped, which allows for a more open floor plan, and the islands are dual-level for larger surface height and that supports work-from-home lifestyles.”

The finishes are standardized with what Menchions calls “condo penthouse-quality,” but unlike typical townhomes, units appear commodious to the eye.

“No two-floor plans are the same in this development, and that helps individualize the footprint of each of these homes—and these don’t feel like regular townhomes; they feel like unique, detached homes,” he said. “The units use windows at either end, so there’s sunlight from two directions and airflow throughout the townhomes, meaning there’s a lot of natural light to help emphasize the scale of the space and the height of the ceiling, the width of the units, the materials, and the finishes.”

Townhomes have not just surged in value because semis and detached homes are unattainable for many homebuyers; in fact, they’re ideal for empty nesters wanting less square footage and a measure of autonomy, as well as younger, upwardly mobile move-up buyers. In short, there’s robust demand for townhomes, but they’re scarce in supply.

“Townhomes used to be affordable, entry-point housing for people before they would take the next step, which would be a semi-detached or detached home,” continued Menchions. “Today, people are looking for townhomes as permanent residences. They want a sense of community with a neighbouring high-rise but they still want that individual unit, that luxury lifestyle of living in an independent property where they have direct access from the street.”

In Mississauga’s coveted Port Credit district, Brightwater Towns is a master-planned community featuring luxury townhomes that, according to Christina Giannone, VP of Development of Port Credit West Village Partners, flout the cookie-cutter design principles of townhomes past.

“We have also offered customizable floor plans for the units to allow purchasers to create the home that most suits their own needs,” she said. “Each townhome offers large floor plans with two outdoor terraces, with most incorporating a flex space which can be converted to a bedroom, a work from home space or a fitness gym, and stunning oversized windows, which provide ample natural light. The response to these townhomes has been tremendous—so much so that we have already started to design our next phase. The demand for thoughtful, elevated and well-designed townhomes is there, and will only grow going forward.”

2021-07-23 13:17:02

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New condo launches next to Niagara Falls

Not only is the Canadian side of Niagara Falls a top global tourist attraction, it’s also one of the world’s most popular honeymoon destinations, and a new boutique condo development just minutes away is capitalizing on that.

Riverwalk Niagara will be a five-storey, 51-unit condominium with unit sizes ranging from 700-1,600 sq ft in Chippawa, ON, just 4 km away from the Falls and directly across the street from family-favourite Kingsbridge Park. The building’s rooftop patio also has unimpeded views of the beautiful Niagara River and the Niagara Falls skyline.

“The interesting thing about this is, given the location and proximity to the Falls, the potential for both short- and long-term rentals is quite high,” said Shaminder Gogna, broker of record and founder of Condoville Realty Inc., a sales team that doubles as strategic partners in real estate developments and works in secondary and tertiary markets, specializing in infill sites.

“Niagara Falls is one of the top honeymoon destinations in the world. You have the fundamentals of tourism already present, and with COVID causing people to leave the larger nearby cities for exurban areas, we saw a lot of value in the Niagara region. In the last two years, property price appreciation in the area has grown by 20%, and as a result a lot of people are choosing to either live or invest there.”

In fact, a number of applications for developments just south of the Niagara Falls have been submitted, but it isn’t likely mortgages for units in those developments will carry very well since prices will have surged by then. However, being one of the first few new developments in the area, Gogna says rents for Riverwalk Niagara units will easily carry the mortgages.

“This is the first of many developments that will be occurring in the next decade,” he said. “Price appreciation and growth models would suggest that this is where you want to put your money—it’s an area that has end users coming over, you have this giant tourist attraction, and you have people buying around there as recreational properties, so there are several markets you’d be able to rent and sell to in the coming years.”

The area is rich in amenities with several golf courses and MarineLand just minutes away, and Buffalo Niagara International Airport a mere half hour away.

“For anybody looking to go back and forth between Buffalo and Ontario, this is a great opportunity,” said Rahmat Bawari, Condoville’s sales manager. “Niagara-on-the-Lake, where there are 88 wineries, is only 15 minutes away; it’s 25 minutes to St. Catharines and Brock University; and Metrolinx, which is expected to have connectivity to Union Station in Toronto, is fewer than 10 minutes away. All the larger fundamentals required for living and investing are within 10-15 of Riverwalk Niagara.”

2021-07-22 12:55:22

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Sellers getting greedy: RE/MAX | Canadian Real Estate Wealth

Home sellers’ expectations are too lofty and that’s stunting the housing market, claims a missive from RE/MAX Escarpment Golfi Realty Inc.

“While market activity was up 103.6% year-over-year, the Canadian Real Estate Association has noted a decline in national home sales by 7.4% on a month-over-month basis in May,” said the statement.

“Unfortunately, sellers are getting caught up in the previous numbers of the market or hear about a neighbour who sold their house for X amount of money a few months ago, and believe their house is worth the same or more. Many agents in the area are having trouble coaching and supporting both buyers and sellers.”

The letter also says that some sellers realize weeks later they botched good offers, and that the sooner they understand the market has entered an adjustment phase, the better.

Exorbitant price points, especially in Canada’s three biggest cities, could begin manifesting in atypical household formations, says the RE/MAX 2021 Housing Affordability Report, which found that of Canadians considering alternative ways of becoming homeowners—renting out part of their primary residence, pooling money to purchase a home with friends and families, living a co-op or shared living arrangement—54% of them are millennials and Gen Z.

The survey of Canadians conducted by Leger on RE/MAX’s behalf found that 42% of respondents believe the price of real estate is financially prohibitive and a barrier into the market, up from 38% in 2020. Millennials and Gen Z are also more likely to consider moving to different communities, the survey found.

In the report, Elton Ash, regional executive VP of RE/MAX of Western Canada, applauded the “ingenuity” of Canadians, but added that, in a bid to stymie runaway housing prices, there needs to be a national housing plan that expeditiously boosts inventory.

“It’s promising to see Canadian buyers deploying their ingenuity to be able to buy a home, but we must address the urgency of the underlying affordability problems, which are predominantly systemic,” said Ash. “While we wait for a nationally and municipally supported housing strategy based on an aggressive goal to boost our national inventory of affordable housing, there are regions across the country, especially in Western Canada, that remain accessible to first-time buyers looking to break into the market.”

2021-07-22 12:58:45

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EMBLEM’s Arte Residences slated to hit the market

EMBLEM’s Arte Residences expected to make a splash

EMBLEM Developments’ last project, 1 Jarvis, sold out in 48 hours—all 354 units.

The developer, which has established a reputation for great design and “forever buildings,” is once again making news, unveiling its collaboration with globally renowned artist Daniel Mazzone, with the development, Arte Residences. Located in Mississauga at 89 Dundas St. W., Arte is a few blocks south of Square One and 300 meters from the Hurontario LRT, currently under construction. Another distinctive, standout project from the design-forward Canadian residential developer, this stunning new building cements EMBLEM as a key player in the future vision of downtown Mississauga.

“We identify development sites which are opportunistic and poised for meaningful price appreciation, then combine it with exceptional design that is unmatched by anything around it,” said Kash Pashootan, EMBLEM’s CEO. “This formula is what we are building our reputation on.”

EMBLEM has always acquired land in strategic locations, a process established by the firm’s founder, who has over 20 years of investment expertise and experience that extends to EMBLEM homeowners. “Everyone knows what that ‘it feeling’ is when they walk into a special space—the right space,” said Pashootan. “The feeling cannot always be explained, but it is clear and very powerful when you experience it. The ‘it feeling’ is what we are pursuing with each and every project.”

EMBLEM has made Arte Residences distinct from other offerings in the area through its collaboration with globally renowned artist, Daniel Mazzone. Mazzone, referred to as the next Andy Warhol, travelled to 14 countries last year, collecting materials for his upcoming art installations and is a key artist in the annual Art Basel art show in Miami. He is featured in both 1 Hotel and W Hotel, and his pieces have been collected by heavy hitters such as François-Henry Bennahmias, CEO of Audemars Piguet, and Randy Frankel, owner of the Tampa Bay Rays. Mazzone’s relationship with Pashootan presented the CEO with an opportunity to connect with the artist and convince him to collaborate on the layouts, lobby, amenity spaces and design of Arte.

“Daniel is not only well respected on the global stage, but he also embodies EMBLEM’s approach to design,” said Pashootan. “Creative and modern, yet having depth and expressing a classic aura which achieves ‘Timeless.’ That is our thinking at EMBLEM, and you see that with Daniel’s work. His art features an icon, a classic, and creates something new that is beautiful and creative but preserves the classic nature. When design is old and new at the same time, and it feels natural, that is the definition of Timeless.”

Arte evokes that feeling. Future residents will live surrounded by beauty in every facet of the community—a warm, welcoming place with stunning luxury suites, a modern, extensive amenities package, and nearby transit.

“With over 22,725 sq ft of indoor and outdoor space, Arte will feature amenities that surpass conventional norms, such as an outdoor fitness studio, outdoor rooftop bar and lounge, as well as an outdoor dining room with beautiful views and green walls for privacy. This and other amenities are all adorned with exceptional design to remind our homeowners that they have a piece of something rare and special,” said Pashootan.

This new community will go above and beyond and focus on outdoor amenities as much as indoors ones. The indoor and outdoor co-working lounges, fitness areas and dining rooms are just some of the amenities that will offer places to recharge and socialize. The tower’s 18 storeys transcend the ordinary and will forever change the standard in Mississauga.

As part of its growth plan, the Dundas corridor is poised to welcome 52,000 new residents and 9,600 jobs in the future. Anchoring its rapid growth are the amenities that make a city truly livable: more parks, green spaces and public art to enjoy, as well as dedicated cycling and bus lanes.

“Whether one is buying for their future home or buying as an investment, the combination of location, steps to transit, collaboration with Mazzone, building design and suite layouts make this a highly desirable project,” said Shamil Jiwani, director of real estate at EMBLEM.

2021-07-21 13:48:18

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GTA condo rents declined in Q2 despite rising demand

Bidding wars for leases, commonplace in pre-pandemic Toronto, have returned to the city’s downtown core.

“If it’s a good unit and offered at a good price, you get multiple offers on the lease,” said Scott MacPherson, VP of professional development at Right at Home Realty. “We see it in the core of Toronto—a one-bedroom, 700 sq ft unit or a two-bedroom, which is hard to find, and close to amenities, get multiple offers.”

MacPherson added that Mississauga’s city centre condo cluster, as well as downtown Burlington, also see bidding wars for leases.

However, according to the latest data from the Toronto Regional Real Estate Board (TRREB), rents for one-bedroom condominium apartment rentals in the Greater Toronto Area declined by 9.4% year-over-year to $1,887 in Q2-2021, but increased by 3.7% from the previous quarter. Two-bedroom units averaged $2,583, rising by 5.6% from Q1-2021.

Condominium apartment rental transactions more than doubled in the GTA to 14,920 in the second quarter of the year from 7,300 during Q2-2020, and climbed from 13,168 in the first quarter of 2021. There were 24,789 condos listed for rent in the second quarter of the year, a 15% increase from a year earlier, but dropped from 28,784 in Q1-2021, signifying growing demand.

“It is clear that the demand for rental accommodations has substantially increased compared to last year when there was a temporary pandemic-related lull. Strong rental demand will continue into next year, as immigration into the GTA picks up and we see a resurgence in the student population. With rental market conditions already tightening, and demand set to increase, we expect future increases in average rents. This trend further reinforces TRREB’s continued call for government action to increase supply,” said Kevin Crigger, TRREB’s president.

Although renters benefitted from lower rents last quarter—at least compared to the previous year—pre-pandemic market conditions have started manifesting, albeit inchoately, and as the region’s population returns to its normal growth trajectory, vacancy rates will fall and rental prices will increase.

MacPherson says that, as downtown Toronto becomes more vibrant by the day, many people who fled during the onset of the pandemic are returning.

“People see the end of COVID and a lot of them want that lifestyle where they can walk to a restaurant or a Blue Jays game, but a year ago it was isolating in the core with nothing to do and no green space,” he said. “We’re starting to see an influx of people returning to the core.”

2021-07-21 14:06:35

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Mortgage backlog will likely quell rate deals

Mortgage underwriters are so busy that it is unlikely rates will drop again before their anticipated increase in 2022, says a Toronto-based broker.

“Consumers need to remember that what lenders discount off of the prime rate is up to the lender. Lenders tend to use lower rates to drive borrowing and the last few months have seen a record number of mortgages being processed,” said Leah Zlatkin, principal broker at Brite Mortgage and an expert with LowestRates.ca . “Lenders are short staffed and often can’t submit applications fast enough to keep up with demand. Given this environment, why would lenders incentivize homebuyers to increase lending?”

CanWise Financial recently rolled out a 98 basis variable rate mortgage that’s being made available to homebuyers who have less than 20% for their down payments. It also includes a 120-day rate hold, a 20% prepayment option, three months of interest as the penalty for breaking the mortgage, and it’s both portable and assumable.

Citing the deal, Zlatkin suspects there will be few, if any, similar rollouts.

In fact, some lenders have even raised rates to alleviate pressure on their mortgage underwriters, says Daniel Johanis, principal broker at Pekoe Mortgage.

“We’ve noticed that underwriters are human and only have so many hours in a day,” he said. “Some close friends of mine are underwriters for banks and I sympathize, for sure. One thing we’ve been doing is communicating with our clients on new expectations, as far as turnaround times, whether for purchases or refinances. Purchases take more precedence because there’s usually a hard deadline, while refinances are more flexible. We see underwriters straining to keep up with the volume.

“Equitable Bank, for example, raised its rates in June because of its backlog of files.”

However, good mortgage brokers usually have strong relationships with underwriters, and that could help get a file funded faster, but—of course—there’s no guarantee that will happen anymore. Johanis says that typically there would be a 24-hour turnaround just for a file review, however, in most cases it now takes weeks to hear back from underwriters.

“It’s definitely out of the ordinary and not what we’re used to, and I’m hearing the same thing at the branch level with pretty high turnaround times just to get an answer, not funding,” he said. “If you look at Meridian Credit Union, they were halting applications for refinances recently because their turnaround time was something crazy like 16 weeks.”

2021-07-21 15:50:24

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Vancouver’s commercial sector had robust Q1 showing

Commercial real estate in the Vancouver area increased by 15% year-over-year in the first quarter of the year, and at $2.7 billion, it also marked the highest total since the fourth quarter of 2018, with gains this time led by apartment sales, says a new report from Altus Group.

There was $738 million invested in the multifamily sector alone, marking a 73% year-over-year increase in Q1, but it was also the highest total quarterly investment since Altus Group began tracking transactions 22 years ago. Forty percent of multifamily investment came from a single portfolio transaction, which comprised 614 doors across 15 buildings worth $292.5 million.

Vancouver’s industrial sector performed very well in the first quarter of 2021, with lease availabilities hitting record lows in the area. Investors and owner/users invested $649 million in the sector, a 12% increase over the first quarter of last year, says Altus. The city’s retail sector also had a good showing in the first quarter with investment increasing by 79% over the same quarter in 2020, and 40% over the previous quarter, as investment totalled $386 million. The majority of retail transactions, at least what Altus referred to as the most significant, were multi-tenanted properties that had stable holding income and, in some cases, long-term development potential. Although availability rates for retail space are increasing in the Vancouver area, investment activity is also rising.

In terms of transaction volume, Vancouver’s office sector had a difficult first quarter of the year, however, investment rose by 86% year-over-year with $243 million invested. One transaction comprised 43% of total volume—it was Low Tide Properties and PCI Group’s joint venture purchase of 1077 Great Northern Way—and according to Altus, owners of office space are disinclined to sell their properties, likely because of how patient they have been throughout the COVID-19 pandemic which appears to be reaching a conclusion.

The residential land sector in Vancouver had a difficult Q1-2021, with investment declining by 43% year-over-year to $271 million, which marked 11 straight quarters of annual declines.

2021-07-21 16:00:05

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