Tag Archives: developers

Humber Bay, Etobicoke

Why Canadians should think long term in real estate – especially now

Latest News

Why Canadians should think long term in real estate – especially now

Humber Bay, Etobicoke

Unprecedented doesn’t even begin to describe it. A few weeks ago, we awaited an exceptionally active spring real estate market in the GTA, buoyed by the recent easing of mortgage regulations and interest rates.

Now, however, instead of seeing a spike in buying activity, we’re hunkering down, battening down the hatches and riding out the COVID-19 crisis, all in an attempt to flatten the curve.

Historic, surreal and unbelievable might be more suitable adjectives to describe these times.

And under such circumstances, with normal life routine displaced by the daunting and unknown, people naturally tend to worry.

In real estate, if location, location, location is the No. 1 rule of thumb, thinking long term is right there along with it, as 1A.

We’ve been through similar challenging times: The 1989 recession, Y2K, 9/11, the Great Recession of 2008-09 and SARS. Now we face COVID-19.

At times of economic uncertainty and extreme stress in the marketplace, people always revert to their number one emotional and financial investment – their home. People trust real estate. Buying that first condo, a new home for their growing family, downsizing once the kids move out or renovating the place you already love.

And, so it will be again.

Long-term lift

But don’t take our word for it. Consider, for example this report from the Real Estate Investment Network (REIN), a national group of investors which bases everything it does on independent research.

According to the REIN Special Report: The Coronavirus’ Impact on Canadian Real Estate, Canadian real estate will see an immediate cool-down – but a long-term lift. We may see a temporary decrease in GDP growth, but key drivers of real estate such as population growth and increased foreign capital, demand and property values will eventually rise.

“It’s still premature to predict how the coronavirus outbreak will be resolved, but data suggests that panic will only worsen the country’s economic situation,” says Jennifer Hunt, REIN’s vice-president of research. “There is reason to be alert, but there’s absolutely no reason to further raise alarm and cause more public fear. In fact, as a Canadian real estate investor, this may represent a buying opportunity for investors, with a likely future positive lift in rental and housing markets.”

Open for business

It might be a stretch to say it’s “business as usual,” but life does have to go on, as soon and as safely as possible. New home builders and developers are open for business, are accepting presentation centre visits to by appointment only, and as much as possible are moving communications to digital.

Meanwhile, the Bank of Canada recently lowered its influential overnight rate target twice in less than two weeks – from 1.75 to 1.25 per cent on March 4, then again to 0.75 per cent on March 16. Canada’s Big Five banks are following suit by lowering mortgage rates, and they, too, are increasingly going digital to facilitate business.


All of this means the opportunities to buy are still there (though with a modified process), with less short-term competition and a more buyer-friendly mortgage and borrowing landscape.

Indeed, as challenging as these times may be, it’s even more important to focus on the long term. And on that front, new-home ownership in the GTA is still a solid investment.


GTA home price growth to hit 10 per cent this year: TRREB

Outlook 2020 – 5 things you need to know about real estate this year

Get ready for a hot market in the GTA this spring




Featured Products

EDITOR'S CHOICE: Podium Developments

New home buying opportunities abound in Oshawa and Durham Region

Latest News

New home buying opportunities abound in Oshawa and Durham Region

EDITOR'S CHOICE: Podium Developments
Ironwood Towns in North Oshawa by Podium Developments and Urban Capital

Despite the bad news this week that General Motors Canada plans to close assembly operations in Oshawa, there are some good new home buying opportunities in the city and elsewhere in Durham Region.

As various levels of government and the Unifor trade union vow to somehow keep the plant open or otherwise deal with the fallout of the decision, the housing sector in Oshawa is expected to shift into a buyers’ market.

That could mean deals for buyers in a market where home prices have already been under pressure.


Also read: What the GM plant closure means for Oshawa economy and housing

Also read: Oshawa housing to move into buyers’ market thanks to GM closure


For those looking to buy a new home, know that there are still plenty of good opportunities in Oshawa and surrounding area.

First, let’s look at recent new home buying activity in the area, courtesy of statistics from Altus Group, theofficial source for market intelligence for the Building Industry and Land Development Association (BILD).


Total new home sales, units

Oshawa Durham Region
2013          682       2,376
2014       1,108       3,130
2015          971       3,433
2016       1,149       5,344
2017          490       2,385
2017          483       2,262
2018            83       1,065
Source:  Altus Group


Naturally, the GM news is a sensitive topic to an industry such as home building, where companies dedicate years to planning and construction development projects. So don’t expect a comment any time soon from BILD, the voice of home builders in the GTA, or individual companies.

Might developers at some point offer deals – be they discounts or upgrades – in order to move an unsold inventory in a market not feeling the strongest at the moment?

It never hurts to ask.


A selection of new home and condo inventory

Ironwood in North Oshawa, Building Capital and Podium Developments, contemporary freehold townhomes

Harmony Creek, Conservatory Group, townhomes and detached homes

Brook Phase 2, Delpark Homes, detached homes

Fields of Harmony Phase IV, Greycrest Homes, detached homes

Kingsview Ridge, Treasure Hill, 30-, 36- and 40-ft. singles

Park Ridge, Tribute Communities, detached homes from the low $900’s

U.C. Towns 2, Tribute Communities, townhomes form the low $600’s

Top of Townline, Woodland Homes, detached homes

For more new home buying opportunities, visit MyHomePage.ca

With files from Natalie Sicilia, New Home Research Manager & Map Editor


Featured Products


THE BROKER: Smart investors see into the future

Latest News

THE BROKER: Smart investors see into the future

Smart investors see into the future
By Ryan P. Coyle
CONNECT Asset Management

People often ask us how to invest in real estate and what they should be looking for in an income-producing property. The real estate industry is full of various scenarios and situations that can impact an investor’s return.

This is a great time for investors to buy a condo. If purchased early in the cycle, the developer generally offers more competitive pricing and incentives to get the shovels in the ground faster. The lower pricing and greater choice afforded by the pre-construction phase is certainly a big selling point for potential investors.

We are constantly talking to investors and listening to what it is that they want in a pre-construction investment property. What is interesting is that the dialogue is essentially the same regardless of whether we are speaking with a seasoned investor or somebody that is new to the investing process. Their investment strategy seems to have many of the same key features. Below is a summary of some of the top priorities for investors who are looking to purchase pre-construction.

A realtor that specializes in pre-construction

Investors are looking for a proven team with a solid track record and strategy in pre-construction. They are looking for knowledge and information and will look for a professional that can help them understand things such as taxes, costs and fees, how to read building plans, understanding assignment clauses, condo fees, etc.

There are definitely perceived risks to buying pre-construction due in part to fear of the unknown. Our advice is simple: only deal with a team who has worked directly with builders in the area and who have the most insight into the pre-construction process. Investors generally understand that the right professional can get them access to the best properties and help them manage these properties for the long-term.


It should be no surprise that one of the first things that investors look for when buying pre-construction is location. Investors understand that the quality of the location will influence the type of renters attracted to the property. In downtown Toronto, most renters are young professionals who enjoy the simplicity of condo living. Our clients are looking for locations with a robust job market, a good walk score and amenities like parks, grocery stores, restaurants, cafés and public transport hubs.


Rental income is the bread and butter of a rental property for an investor. One of the main things that investors look for when buying pre-construction are average rents in the area. Investors want to ensure that the rent will be high enough to cover mortgage payments and other expenses. Our clients are generally looking for opportunities that will put them in a positive cash flow situation. With low vacancy rates and condo rents soaring, it is no surprise that this can be a deal breaker for some people.

Future development

Investors want to be as educated as possible when shopping around for pre-construction investment opportunities. They want to know what future developments are planned for the area as this can positively or negatively impact the value of the property. Is it a high growth area or one that is currently in decline? While many clients are looking for a sure thing and will only buy in an established location, some clients are looking for a neighbourhood in the early stages of gentrification. Savvy investors know that these properties can sometimes result in a faster and higher appreciation for the investment property.

Special incentives

The deposit structure is something that investors will look at when buying a pre-construction condo. The more appealing the deposit structure, the more appealing the property. A lower down payment requirement up front, as well as a flexible payment schedule, can be very enticing to investors. Another thing that many investors look for is an assignment clause. Some investors want the flexibility of being able to sell on assignment, prior to closing. The assignment clause allows them to do this. Extra incentives like free parking or locker, discounts for buying early, etc. are also at the top of the list.

I believe that buying pre-construction is an essential part of the long-term growth story. Pre-construction condos are one of the best real estate investment opportunities available for independent investors who know that they can build serious wealth in real estate by buying pre-construction.

Ryan P. Coyle is a broker and real estate advisor with CONNECT Asset Management.



Featured Products