Entries categorized as ‘Rental Information’
The Canada Mortgage and Housing Corporation released its numbers for the 2010 Spring Rental Market Survey, and the results show a definite increase in apartment vacancies thanks to increased homeownership.
The average rental apartment vacancy rate in major urban centers increased from 2.7 per cent to 2.9 per cent from April 2009 to April 2010.
“Rental construction and competition from the condominium market added upward pressure on vacancy rates and historically low mortgage rates attracted renter households towards homeownership over the last year,” said the CHMC.
Vancouver, Toronto, Calgary and Ottawa had the highest average monthly rent, while apartments in the province of Quebec has the lowest. Windsor had the highest vacancy rate, at 12.4 per cent, and Peterborough and Abbotsford each had average vacancy rates of 6.6 per cent. The lowest vacancy rates were in Quebec City with 0.4 per cent, closely followed by Regina and Winnipeg.
In fall of 2008, the national rental vacancy rate was only 2.2, increasing sharply to 2.8 in October of 2009. Windsor also had the highest vacancy rate then, with 13 per cent.
Back then, the increase in vacancy rate was attributed to a lower level of youth employment and demand for rental housing because of improved home affordability options. Now, the increase in vacancy rates shows an easier transition from renting to homeownership, likely due to the impending HST and mortgage rules as well as the record-low mortgage rates seen during the early spring.
Categories: General Information · Rental Information
Tagged: CMHC, Rental Rates, Vacancy Rates
Tackling a mortgage can be daunting, especially for those who haven’t done it before. Mortgages are usually the largest debt one will ever have, and it’s a long-term commitment. One option is to make the house help pay for itself by turning it into an income property. It’s a bit of a sacrifice, and isn’t for everyone. But if you’re looking for a way to make the mortgage payments less hefty, renting out a part of the home, such as the basement, is a possibility you can consider.
Save money on utilities
When others are renting, utilities being included is one of the more attractive facets of an apartment, even a basement apartment. If the homeowner pays for them, they can then charge more per month in rent and no one will be any the wiser. However, this makes it especially important to really make sure the apartment is thoroughly insulated, has green appliances and conserves energy in every way possible to lessen the overall cost to you.
Don’t go overboard
You’re not trying to sell the place at the moment, but if you intend to in the future then spending extra on the decor, flooring and counter tops would be a good investment. However, if you’re only renting out part of the home, it’s not for a return on your investment as much as it is to help off-set the cost of your mortgage payments. The space has to be livable, but doesn’t necessarily have to be overdone, and many little extras won’t bring in extra rent money. However, putting in appliances such as washers, dryers and dishwashers or installing a bathtub will create room for you to boost the rent anywhere between $25 and $50 for each item.
Do it the right way
The most attractive basement apartments have separate doors to the outside and are squared away for optimal privacy. Sometimes doing this can include costly renovations, and it’s a good idea to ensure that no matter what type of renovation you decide to undertake that all necessary permits are taken care of.
Finally, don’t hesitate to ask for references, bank statements or conduct credit or background checks like any landlord would. Renting out your home should benefit you, not turn into a nightmare.
Categories: Rental Information
Tagged: mortgages, Income Property, utilities, credit checks
Apartment vacancies are rising across Canada, especially in Toronto.
Last week the Canada Mortgage and Housing Corporation released figures showing that apartment building vacancy rates have risen to 3.1 per cent this year from 2.1 per cent last year mostly in part because of the competition from condominiums.
The amount of increase in residencies in condominiums and subsequent increase in apartment building vacancies is due to the significant increase in younger, first time buyers and low interest rates. First time buyers this year make up 57 per cent of the total market in 2009, a 24 per cent increase from 2008.
The Canada Mortgage and Housing Corporation expects that with most of the condominiums currently in construction becoming available next year, the vacancy rate is expected to climb even further to 3.3 per cent.
Despite the higher difference in price that condos have as opposed to renting an apartment, the amenities and locations offer a higher quality of life. The buildings are newer and well built, unlike most apartment buildings that were usually built with savings in mind long ago. Over 50 per cent of the apartment buildings that exist in the city were built between 40 and 50 years ago. A decline in immigration to the central Greater Toronto Area and a rising unemployment rate have also contributed to the increase in apartment vacancy rates.
The vacancy rate in the GTA is higher than other major cities, and the average vacancy rate across Canada has increased about 2.9 per cent over the past year. The major urban centre with the lowest vacancy rate is Quebec City with 0.6 per cent, and the major urban centre with the highest vacancy rate is Windsor with 15.5 per cent.
Categories: Rental Information
Tagged: toronto, Toronto Real Estate Market, Toronto Rental Information
Yes, in the Province of Ontario, it is legal for a landlord to ban smoking in private rental units.
A decision by the Landlord and Tenant Board in 2008 supported this concept. The legal community states that landlords also have a right to impose additional obligations or restrictions on tenants over and above the standard lease agreement terms. As long as these obligations do not contravene the Ontario Human Rights Code, the Residential Tenancies Act or other federal laws. A landlord does have the right to protect their investment.
Categories: Rental Information
Tagged: Central Toronto Real Estate, Real Estate, Toronto Rental Information
By Evan Sage
Outlined below are 12 benefits to buying as compared to renting a Toronto home:
1. Buying a Toronto home is a great investment. Homes tend to increase in value in Toronto over time, in the past 20 years the average Toronto home has increased 11% per year.
2. You are in complete control. You can make any changes or improvements you want, and when you do spend the time and money to improve the house it is for your betterment not your landlord’s.
3. You can leverage your money. You can put down as little as 5% and the bank comes up with the rest, yet you are still in full control. That is as long as you maintain your mortgage payments.
4. You have the ability to step up to a better home by leveraging your current home equity. This can happen without significant increases in monthly expenses.
5. You monthly mortgage payments are like forced savings. In the early days the majority of the payment is interest but you are still increasing you equity position bit by bit.
6. Protect against inflation. Assuming you have a fixed rate mortgage your payments will not change over the life of your commitment even if inflation goes up.
7. You have the ability to live how you want to live, decorate how you want to decorate. You get to be the king/queen of your castle.
8. You do not have to pay capital gains when you sell your primary Toronto residence.
9. Typically when you buy you get more space than when you rent.
10. It is usually quieter in a Toronto home that you bought than an Toronto apartment that you rent.
11. The monthly costs (including carrying the mortgage) of owning a place are often just a little bit more than what you would pay in rent for an equivalent space.
12. There are great tax benefits on investment properties. Even if the property is not your primary residence there are some significant tax deductions that that make this a very favourable investment strategy.
Outlined below are 8 benefits to renting as compared to buying a Toronto home:
1. If you tend to like to move around than buying may not make sense since there are some decent size expenses associated with buy and selling a property. The expenses associated with moving from one rented apartment to another are much less.
2. You may not be able to afford the down payment. If you rent usually you just have to come up with first and last months rent.
3. If there is a possibility that you will loose your job and not be able to make your mortgage payments. The downsides of missing your rent are much less than if you miss mortgage payments.
4. If you think you may be getting divorced you should wait to purchase a home as it is unlikely that you home will have appreciated by the time you are forced to sell.
5. If you have had bad credit you will need to reestablish your credit before you apply for a mortgage.
6. You may not be able to afford buying. There is nothing wrong with that, don’t make yourself house poor, just wait.
7. If you think the housing market is going down you may want to wait until it hits bottom and starts to bounce back.
8. You may just not want to have to deal with the inevitable maintenance of a home. As a renter all you have to do is call the landlord.
Evan Sage is a Sales Representative with Royal LePage R.E.S./Johnston & Daniel Division. Evan is also a regular contributor to the Muddy York Blog. Evan’s web site is located at www.evansage.com.
Categories: Rental Information
Tagged: Central Toronto Real Estate, Real Estate, toronto, Toronto Real Estate Market
