Frank Steinhausen, Broker
FSteinhausen@REMAX.net
RE/MAX Rouge River Realty Ltd., Brokerage
Phone 905-428-6533
Fax 905-668-1850
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Archive for the 'Real estate investment' Category
Another Large Subdivision for Ajax
June 3rd, 2008 Categories: Ajax, Buying real estate, Pickering Village, Real Estate News, Real estate investment
As you drive down Brock Road in Pickering, you crest a hill and get a 
glimpse of the Ajax-Pickering landscape. It is roof tops as far as the eye can see. And the Town of Ajax has recently approved plans for 1400 more rooftops to be built.
A massive housing development has been approved for northeast Ajax.
Council’s community affairs and planning committee on Monday approved a 1,420-home subdivision proposal from Sundial Homes. The project, at the southwest corner of Rossland and Audley roads, would be built in phases and, depending on the market, take about five years to complete.
Construction would begin along Rossland and move southerly, towards the existing Lexington County subdivision, said Chris Matson, the development manager for the project.
“It’s driven by marketing. We need to generate sales and activity,” Mr. Matson said.
The project includes conventional single-detached homes, detached homes, semi-s and townhouses with rear lanes, and back-to-back townhouses.
The variety of housing types and sizes makes the project “diverse,” Mr. Matson said.
Services will start going in this year and construction of the houses is to begin in the winter or spring of next year, he said.
“There’s a good blend of housing types and sizes,” said Mayor Steve Parish. “I like the treatment along Rossland and Audley. It lends itself to transit usage. I think it does what we want it to do.”
Sundial is the builder of the houses at Bayly Street and Monarch Avenue.
Want to know how new building affects the value of your home? I can tell you.
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Gather the Facts Before You Jump Into Your First Mortgage
May 6th, 2008 Categories: Buying real estate, Mortgage, Real estate investment
There was recently it was reported that many young women buying their 
first home alone. It is no longer love, marriage and a house with a baby carriage. More single, young women are opting for the home first.
I am all for the forced saving, nest-egg growing opportunity that home-buying offers. I wouldn’t be in real estate otherwise. I would like to present a little bit of the devil’s advocate position to caution young people before they jump in with both feet. Make sure you have all the information that you need.
Here is some helpful information:
- Two-thirds of all buyers are taking mortgages of up to 40 years amortization. This means that without pre-payment options or accelerated payments, young first time buyers may be paying their mortgage when they hit retirement age.
A 40–year amortization means that you are paying over $736,000 for a $300,000 house. That is $436,000 in interest payments. - An increasing number of buyers are putting little or no-money down. Increasing your mortgage principle increases your monthly payments, or your amortization. Either way, you are paying the bank more money to borrow theirs.
- Canadian Mortgage and Housing Corporation introduced an interest-only mortgage option echoing the US mortgage market trouble where house prices stopped increasing and people have ended up owing more than the house is worth.
Canada has taken some precautions to ensure that our housing market does not follow the US down. Higher risk mortgages are only available to buyers with good credit. However, buyers who are stretching themselves into buying a home make themselves susceptible to financial difficulties if the housing or job markets soften or if interest rates climb again.
Do you have questions about what mortgages are right for you, or when to buy into the market? I can help.
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2007 Year of the Condominium: Condominium appreciation outpaces single-detached housing
January 25th, 2008 Categories: Buying real estate, Real Estate News, Real estate investment, Selling real estate
Condominiums experienced unprecedented upward pressure on average price in 2007, surpassing gains reported in the single-detached category for the first time in key GTA districts, including the central core and west end.
According to RE/MAX Ontario-Atlantic Canada, the average price of a condominium rose 12.2 per cent in the central core in 2007 ($327,559 vs. $292,064) while values in the west end jumped 7.3 per cent from $215,036 to $230,749. Statistics for single-detached homes reveal an 11.5 per cent increase in average price in the central core ($910,906 vs. $816,938) and a 6.6 per cent increase in the west ($417,407 vs. $444,945) during the same period.
Condominiums are clearly a viable—and now financially feasible—alternative to single-detached housing. With so many purchasers forced to compromise on their choice of housing, the ever-growing return on investment in the condominium market is proving to be quite the consolation prize.
Despite higher prices across the board—approximately 20 per cent, or 12 of 63 Toronto Real Estate Board Districts, experienced a double-digit increase in average price in 2007—the condominium lifestyle allows purchasers to live in the GTA’s most coveted communities at a fraction of the price of a single-detached home. The best performing markets in 2007 include top-ranking Bayview Village (C15), leading with a 40.7 per cent increase in average price year-over-year ($241,611 vs. $340,113); Yorkville,
Condominiums now outsell single-detached homes two to one in the central core. Condo sales have accounted for an increasing percentage of the marketplace in the central, west, and northern districts since 2005. The trend is expected to continue as affordability levels diminish, particularly in the central core. It’s also important to recognize that the vast majority of these purchasers are end-users and speculation is a rare occurrence in the resale condominium market.
Although they carry some pretty hefty price tags, single-detached homes continued to post solid gains as well, with approximately 21 per cent or 13 of 63 Toronto Real Estate Board districts, reporting increases over 10 per cent in 2007. The best return on investment occurred yet again in proven blue chip neighbourhoods. Forest Hill (C03) led the way with a 21.1 per cent increase in average price in 2007, rising from $849,697 in 2006 to $1,028,960. Leaside (C11), Lansing, Willowdale (C07), and Bathurst Manor, Armour Heights (C06) placed second, third and fourth, with prices rising 16.6 ($791,083 to $922,607), 15.4 ($537,891 to $621,185), and 13.9 per cent ($523,736 to $596,551) respectively year-over-year. Thriving Port Credit (W12) placed a strong fifth with a percentage increase of 9.4 per cent in average price, bringing single-detached housing values in the area to $577,461 from $509,380 in 2006. (Based on districts reporting over 100 sales per annum)
When it comes to bricks and mortar, homeownership can be cost-prohibitive. The surge in condominium sales and prices is a glimpse at the future. Not only is the condo lifestyle more widely accepted, it is also highly coveted by many. Location, price, amenities, views, low-maintenance living—it’s the ideal package for a growing number of purchasers. As such, price growth and demand are expected to continue strong into 2008.
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“Green” Is The New Gold: 4 Ways To Renovate For The Environment
January 14th, 2008 Categories: Buying real estate, Real Estate, Real estate investment, Selling real estate
Canadian home buyers have said that they are willing to pay more for “green” features. New home builders are offering special “green” options in things like the selection of building materials and energy-efficient choices. If you are renovating your home, perhaps to sell, consider some environmentally-friendly alternatives:
- Out with the hardwood, in with the bamboo. Bamboo is considered a “green” choice because of its high yield in farming and quicker re-growth (than hardwood).
- And put the floor in with formaldehyde-free glue.
- Use “Green Seal” paint. Volatile organic compounds (VOCs)—they
just sound wrong to put on your walls—and other additives in conventional paint can have negative consequences on your health and the environment. Look for a green seal when you are re-painting. - Go with the low-flow. Low flow-shower heads and aerators save water without sacrificing water pressure. Low-flow toilets can reduce your water usage by almost half.
Environmentally-friendly features in your home could give you the competitive edge in any real estate market.
For more “green” tips, call me for a free report.
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Ontario Expands Land Transfer Tax Refund Program
December 17th, 2007 Categories: Buying real estate, Real Estate News, Real estate investment
First-time buyers of resale homes to benefit from new tax measure
TORONTO – The McGuinty government is giving all first-time home buyers a break on land transfer tax by proposing to expand the Land Transfer Tax Refund Program to include purchases of resale homes, Finance Minister Dwight Duncan announced today.
“Expanding this Land Transfer Tax refund is an important part of our government’s commitment to helping Ontarians buying their first home,” Duncan said.
Effective midnight tonight, first-time buyers of resale homes, as well as newly constructed homes, would be eligible for a refund from the provincial government of up to $2,000 of the Land Transfer Tax paid.
The expanded Land Transfer Tax Refund Program for First-time Home buyers is part of a package of new tax initiatives announced in the 2007 Fall Economic Outlook and Fiscal Review that would provide $1.4 billion in provincial tax relief for business and people over three years. The government is making strategic investments in people, communities and infrastructure to strengthen Ontario’s economic advantage and help manufacturers and other sectors challenged by current economic conditions.
http://www.fin.gov.on.ca/english/media/2007/nr12-fes2.html
Can you benefit from this program? I can tell you.
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Tips for Finding the Perfect Neighborhood
November 27th, 2007 Categories: Buying real estate, Real Estate, Real estate investment
The neighborhood you choose can have a big impact on your lifestyle—safety, available amenities, and convenience all play their part.
- Make a list of the activities—movies, health club, church—you engage in regularly and stores you visit frequently. See how far you would have to travel from each neighborhood you’re considering to engaging in your most common activities.
- Check out the school district. The school boards in your town can probably provide information on test scores, class size, percentage of students who attend college, and special enrichment programs. If you have school-age children, also consider paying a visit to schools in the neighborhoods you’re considering. Even if you don’t have children, a house in a good school district will be easier to sell in the future.
- Find out if the neighborhood is safe. Ask the police department for neighborhood crime statistics. Consider not only the number of crimes but also the type—burglaries, armed robberies—and the trend of increasing or decreasing crime. Also, is crime centered in only one part of the neighborhood, such as near a retail area?
- Determine if the neighborhood is economically stable. Check with your local city economic development office to see if income and property values in the neighborhood are stable or rising. What is the percentage of homes to apartments? Apartments don’t necessarily diminish value, but they do mean a more transient population. Do you see vacant businesses or homes that have been for sale for months?
- See if you’ll make money. Ask me to get information about price appreciation trends in the neighborhood. Although past performance is no guarantee of future results, this information may give you a sense of how good an investment your home will be. I also may be able to tell you about planned developments or other changes in the neighborhood—like a new school or highway—that might affect value.
- See for yourself. Once you’ve narrowed your focus to two or three neighborhoods, go there, and walk around. Are homes tidy and well maintained? Are streets quiet? Pick a warm day if you can and chat with people working or playing outside. Are they friendly? Are their children to
play with your family?
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A Prenuptial For Homes
November 23rd, 2007 Categories: Buying real estate, Real Estate, Real estate investment
Focusing on resale potential before you buy a property is a little like considering the terms of the divorce settlement before co
nsummating a marriage. Yet, this is precisely what savvy real estate investors do. They plan out their exit strategy before they negotiate a purchase. Home buyers who give consideration to resale potential before they buy can reduce their chances of losing money when they sell.
Location is often touted as the prime value indicator for real estate. This is because properties in the best locations appreciate more during good real estate markets and hold their value better during down markets. The community in which you buy will have an effect on your resale potential, as will market conditions at the time you sell.
There’s usually higher demand for properties that are located in areas where the public schools are good. Because of the demand, these communities tend to be the most expensive. When faced with the alternative of costly private schools, many prospective buyers would rather pay for a more expensive home where they can send their children to the public schools.
Buying in a community that’s on the upswing can result in a big payoff when you sell. These communities are usually located adjacent to more affluent communities that are beyond the price range of most buyers. Look for communities that are close to public transportation, and within a reasonable commute distance of a major metropolitan area.
Location within a community can also affect a property’s resale potential. Usually, homes that are on busy streets, or next to freeways, will sell for less than similar homes that are located on quiet side streets. Being located across the street from a school, which can be noisy, may also result in a discounted price.
Buyers pay more for homes that offer easy access into the main living area. An entry that is level in from the street is ideal. A garage that opens directly into the kitchen area is also desirable. On the other hand, homes that are located up or down a lot of stairs are a hassle for most buyers. An inconvenient access can have an adverse effect on value.
If you buy a home that has an incurable defect, like a busy location or too many stairs, make sure that you don’t overpay. There’s nothing you can do to remedy an incurable defect. It can also negatively impact the price when you decide to sell.
The best time to sell a home that has an incurable defect is when the market is strong and the inventory of homes for sale is low. This is when buyers are willing to make compromises for the sake of being able to buy at all.
In a slow, buyer’s market, where there are plenty of homes for sale, buyers will take their time. They can afford to be choosy. You’ll have to discount your price more in a buyer’s market in order to look attractive relative to the competition.
It’s a good idea before you buy a home to check the permit history on the property. Make sure that you’re not paying a premium for remodeling that was done without necessary building permits. In some communities, homeowners are penalized if the building department becomes aware of work done without permits. You could incur extra expenses that you hadn’t anticipated.
THE CLOSING: Deferred maintenance usually results in a lower sale price. Your best protection is to keep your home well maintained.
Dian Hymer is author of “House Hunting, The Take-Along Workbook for Home Buyers,” and “Starting Out, The Complete Home Buyer’s Guide,” Chronicle Books.
Copyright 2003 Dian Hymer
Distributed by Inman News Features
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Ghosts in the attic, blood on the stairs…Is this Ajax house rentable?
September 14th, 2007 Categories: Ajax, Buying real estate, Durham Region, Real Estate, Real estate investment
Robert Allen and Robert Kiyosaki not withstanding, researching to decide 
whether to become a landlord in the Durham Region real estate world unearthed some interesting information about the market.
The Toronto rental market remains strong. As you move further along the 401, deeper into Durham Region, the market begins to slide. So it isn’t so much as whether this house is rentable as whether there is anyone out there who wants to rent. Durham Region isn’t enjoying strong full-time employment which tends to keep the rental market strong. A three bedroom apartment in north Oshawa, near the university, where friends can share space seems to be the only guarantee for finding a tenant.
What is keeping the tenants away? There are a few factors the Canada Mortgage and Housing Corporation (CMHC) take into account when deciding on rental market trends. Youth employment tends to encourage young people to stretch their wings into the rental market, leaving the nest. Full-time job opportunities have softened in Durham Region. Less youth are venturing away from home, or they’re heading into Toronto for jobs and apartments.
Opportunities for first time home buyers has also affected the vacancy rate. House prices have shown a slight rise; mortgage rates remain reasonably low; and housing starts remain strong in Ajax, Whitby and Oshawa. Many Generation X’ers are opting for home ownership.
Slower migration to Durham Region, due to the slower manufacturing sector, has also affected the rental market. New immigrants tend to be renters.
What does this mean to the fledgling real estate investor? It means you need to be smart about your real estate investment purchases. If current trends continue, the rent you will be able to collect from that 3 bedroom townhouse will likely not increase to match inflation. Keep an eye on your ownership costs as they can eat into your profit and select a rental unit where you can capitalize on the current demand.
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