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What the coronavirus means for Canadian real estate

What the coronavirus means for Canadian real estate

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What the coronavirus means for Canadian real estate

The Canadian economy and real estate markets might not be able to escape the affects of the global coronavirus outbreak, but strong underlying fundamentals will return prosperity in the longer term.

This is among the findings of a new study from the Real Estate Investment Network (REIN), a Canadian real estate education and research firm whose members have transacted more than 39,300 properties worth more than $5.1 billion.

 

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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, due to:

  • Temporary, small decrease in GDP growth
  • Increased immigration
  • Increased foreign capital
  • Increased demand
  • Leading to increased property values

These factors represent a buying opportunity now, REIN says.

Following is an edited version of the report.

There is some good news

Looking at the numbers, the future may not look especially bright, but there are also signs of hope. Take, for instance, the fact that China recently closed its last temporary coronavirus hospital because there aren’t enough new cases to support its operations. Apple has reopened all of its 42 stores across China, and the number of new cases in South Korea is on a steady decline.

Recession may be unavoidable

Earlier economic forecasts originally saw the impact of coronavirus as “modest and temporary,” at worst. But as more stringent containment measures are placed and oil price shocks take hold, the impact may be greater and may last longer than initially anticipated. Stalled exports to affected countries are set to negatively affect the country’s quarterly growth.

According to experts, the oil price shock, coupled with supply disruptions, could tip the Canadian economy into recession this year.

Nevertheless, the same report suggests that the economy is bound for a sharp recovery once the virus is contained, stimulus kicks in and pent-up market demand boosts the economy upward once again.

In current conditions, the economic implications of COVID-19 will be driven by a decline in land and international travel, along with the unprecedented oil price shock and disruptions to industry supply chains. The implications of policies, changes and impacts are numerous.

Short-term impacts on real estate

This will depend on quickly changing information and resulting policies as they unfold.

Medium-term impacts on real estate

A decline in GDP growth may impair the rental and property markets in 18 to 24 months. However, this is a unique situation and the velocity of the changing situation and responses could compress outcomes and timeframes rapidly.

Longer-term impacts on real estate

Demand for Canadian real estate will likely have a positive lift resulting from increased demand, rental shortages, demographics, immigration policies, and Canada’s position as a relatively safer harbour for capital, including foreign investment.

While there are travel restrictions in place, existing immigration policies have not yet been altered. The Canadian Federal government supports a continued upsurge in immigrant populations in the next few years. Once the outbreak is contained and the dust settles, we can postulate an increase in demand for migration to Canada, particularly from China and other Asian countries. This could then increase demand for both rentals and ownership properties, providing a further lift to real estate markets.

Post-coronavirus Canada can also mean a haven for foreign capital. All things being equal, it’s possible that post-coronavirus foreign capital becomes increasingly directed to international property investments, further boosting rental and property markets in the process.

Historically speaking, real estate tends to be a very stable asset class, even in times of turbulence. While current market conditions may not be the most conducive for purchasing properties at the moment, it is best for real estate investors to use this time to position themselves in a place where they are best suited to weather rougher times ahead.

Canadian real estate investors and property owners can prepare by following trusted sources for updates on the confusing and rapidly evolving scenario, refinancing where possible and staying calm, well-informed and alert.

Your opinion matters

Click here to tell us what you think in our HPG COVID-19 Real Estate Survey.

Related reading

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


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Caesarstone Dark Collection

Embrace the beauty of the new Dark Collection from Caesarstone

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Embrace the beauty of the new Dark Collection from Caesarstone

5810 Black Tempal
5810 Black Tempal

In the kitchen, a countertop is the place where meals are lovingly prepared, where gatherings gather, and where finished dishes are featured for consumption. Not only is durability a concern, but the visual impact of such a large area sets the tone of the room – it’s the backdrop to all that is served.

As part of its Dark Collection, Caesarstone introduces deep, bold colours, as well as tantalizing textures to its newest line.

A counterintuitive approach

For a look that will stand the test of time, complement and offset a myriad of appliance and cabinet finishes, Caesarstone’s Dark Collection adds a touch of drama and contrasting shades, while inspiring a sense of warmth and comfort. A homeowner’s choices of decor, art, furniture and colour help identify a room’s personality, and Caesarstone’s Dark Collection is just one more way to help them create a look all their own.

Form and function

Deep veined variances and fluctuating tonal shades of mined products upgrade the look of any well-designed room. Darker colours can also be more forgiving, and possess an imperishable quality that elevates natural attributes.

Caesarstone countertops are made from composite quartz, which is a non-porous product. Because this material is low maintenance to stains, its appearance will never be altered or require extra maintenance. This outstanding feature, combined with the bold tones of the Dark Collection, have given new meaning to enduring beauty.

Deeper shades of dark

The Dark Collection consists of four extra-deep shades, enhanced by Caesarstone’s new Natural Finish, which adds extra depth to the textural darks. The look and feel of this collection is set by the beautiful grain that runs throughout, adding a tactile warmth and a pleasing emotive response. A satin sheen emphasizes the natural veining and textures, while intensifying the depth of colour. These saturated features take this collection to next level of desirability.

5101 - Empira Black
5101 – Empira Black

The deep black base of 5101 Empira Black is augmented by fine white veins to emulate authentic characteristics of real marble, and is available in a matte or a gloss finish.

3101 Platto Black
3101 Platto Black

3101 Platto Black intensifies any statement look. A fine granular appearance enhances the textured finish.

4735 Oxidian
4735 Oxidian

The oxidized russet effect of the tarnished 4735 Oxidian finish warms a dark grey base, with a slightly textured grain.

5810 Black Tempal
5810 Black Tempal

A light veil of white streaks emulates a galaxy of stars on the charcoal base of 5810 Black Tempal. This complex composition is reminiscent of an industrial travertine.

Caesarstone products combine the look and feel of natural surfaces with advanced technology, which ultimately intensifies the hardness and durability, and guarantees surfaces that are non-porous, scratch-resistent and low maintenance.

caesarstone.ca


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Eternal Spring

Floral motifs in home decor predicted for spring in RENO & DECOR’s Trend Watch

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Floral motifs in home decor predicted for spring in RENO & DECOR’s Trend Watch

Just like we count on seeing the first tulips in our garden emerge as a sure sign of the arrival of spring, floral motifs seem to sprout every year around this time in fashion and decor as well. We covered the oversized, tropical-inspired blooms trend five years ago here on the trend page but there has been a shift in the type of floral print we are seeing. From large-scale, edgy-looking flowers to small, delicate ones that look like they took root in the ’80s – this is not your grandmother’s tribute to the dated floral theme though; mixed with modern and traditional pieces, the minute petals breathe new life into a space.

Maria Raco, founder of exclusive designer wallpaper showroom NewWall, talks about the current take on the sought-after springtime trend. “The oversized floral trend had its shining moment a few years ago but the current trend is definitely smaller, very real-looking and bursting with colour,” says Raco. She affirms the popular posies reflect our incessant need to bring the beauty of the outdoors into our interiors. “Flowers represent beauty and installing a floral wallpaper is the perfect way to achieving this in your home.”

Of course, seeing the delicate blossoms after a Canadian winter evoke feelings of hope and happiness as we anticipate imminent real-time outdoors enjoying nature’s beauty first-hand. The flowers may be smaller and echo another period in time but they keep us in an eternal spring frame of mind.

1 Anthropologie Home Floral Stoneware VASE, $68; thebay.com

2 Kate Space New York Protective Hard-shell Floral Galaxy S10 Plus CASE, $54.99; thebay.com

3 JÄTTELILJA DUVET COVER AND PILLOWCASES, white, floral-patterned, Full/Queen, $79.99; ikea.ca

4 Floral A-Line MAXI DRESS, $24.99; marshalls.com

5 KitchenAid 5-qt. Floral CERAMIC BOWL, $119.99; thebay.com

6 Vale Floral PLACEMAT, $16.95; crateandbarrel.ca

7 Villeroy & Boch Petite Fleur Floral Porcelain SALAD PLATE, $25.59; thebay.com

8 Rosetta Verdigris, $395 per roll; newwall.com

9 Majorelle Azure, $395 per roll; newwall.com

10 Large Floral 34″ SUITCASE from Herschel Supply Co, $259.99; thebay.com


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del_condominium_rentals_paralegal_services_fi

Del Condominium Rentals’ paralegal services make landlords’ life a lot easier

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Del Condominium Rentals’ paralegal services make landlords’ life a lot easier

If being a landlord was easy, everyone would do it. From finding and screening tenants to managing your property to settling disputes… hey, sometimes things just happen.

That’s why it’s so valuable to be connected with a property management company that can help with the unexpected challenges of owning and renting out an investment condo – including one that has an in-house legal department to help settle minor landlord-tenant disputes. That’s worth the price of admission right there!

Indeed, Del Condominium Rentals adds value to your property management by keeping all services in-house, so there are no concerns about delays, miscommunications or confidentiality. The company’s legal department comprises paralegals who are proficient in landlord-tenant and condominium law. And for you, the condo owner-landlord with ready access to such expertise, that’s priceless peace of mind.

What is a paralegal?

In Ontario, paralegals are legal professionals licensed and regulated by the Law Society of Ontario – just like lawyers. They have the required education and experience to represent clients and provide legal services in specific areas of law, such as small claims court, traffic court, tribunal work, and minor criminal matters.

In the context of real estate, for landlords, this is an incredibly valuable asset to have access to when working with a property management company. Because, as we said, sometimes things just happen, and disputes can arise between tenants and landlords.

Reliable legal services, with professionals who know the law and are adept at navigating these often-delicate situations, can help diffuse potential problems and ensure the terms of your lease are being enforced to protect both parties.

Benefits of using a paralegal

Paralegals are just as competent, educated and knowledgeable as any other legal service provider, as they have specific legal training for the areas of law in which they represent their clients. Paralegal education programs are specifically developed to provide both practical and theoretical training to students. These programs are constantly updated and improved to ensure that the curriculum keeps up with industry standards.

Importantly, paralegals are a key access point to the justice system, as they are a relatively more affordable alternative to traditional lawyer representation. Property management companies such as Del Condominium Rentals use paralegals for day-to-day legal services in specific areas, due to their specialized skills and affordability, and as an ultimate benefit to their clientele.

Quicker, more economical yet just as knowledgeable about essential areas of landlord-tenant laws. How’s that for affordable peace of mind?

Paralegal services

The paralegal team at Del Condominium Rentals aims to ensure that the company, its unit owners and tenants all comply with their respective rights and obligations under the Residential Tenancies Act, 2006 (the RTA), the Condominium Act, 1998, as well as the respective condominium corporation’s declaration, by-laws and rules.

Keeping track of all of these regulations and how they interact with each other is complicated, if you’re not well-versed in legalese and the justice system as a whole.

Day-to-day paralegal tasks include:

  • Liaising with condominium management teams regarding tenant complaints
  • Sending compliance letters to tenants
  • Rent collections
  • Drafting and sending various legal notices under the RTA
  • Preparing for and attending Landlord and Tenant Board hearings
  • Judgment enforcement
  • Accompanying unit inspections
  • Processing and attending evictions
  • Providing inter-department training regarding landlord-tenant and condominium law

Clients of Del Condominium Rentals’ property management services can also benefit from seminars on landlord-tenant rights and obligations, equipping with the basics of the law governing these relationships.

Are you a condo owner looking to hire a property management company to manage your unit? Contact Del Condominium Rentals at 647.952.3644 or sales@delrentals.com

Related reading

Building or renting out a condo? Call Del Condominium Rentals

In Conversation With… Shanker Narayanan, General Manager, Del Condominium Rentals

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march_20_re_newsletter_TRREB_fi

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

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

A strong economy and rising population will combine to cause a surge in home price growth and sales in 2020, according to the Toronto Regional Real Estate Board’s (TRREB) Market Year in Review and Outlook Report. This may be good news for those who already own a home, but it represents additional challenges for prospective homebuyers.

“Robust regional economic conditions, strong population growth and low borrowing costs will support increased home sales in 2020,” says TRREB President Michael Collins. “Market conditions will become tighter, as transactions will continue to outpace the growth in available listings. The resulting increase in competition between buyers will likely result in an acceleration in price growth across all major market segments.”

TRREB is forecasting at least 10-per-cent price growth this year to $900,000, up from $819,319 in 2019, as well as a 10.5-per-cent jump in sales to 97,000, from 87,825 in 2019.

This forecast rate of growth presupposes that price growth will continue to be driven by the less expensive mid-density, lowrise home types and condominium apartments. If the pace of detached home price growth begins to catch up to that of other major home types, the average selling price for all home types combined could push well past the $900,000 mark over the next year.

“The fact that tens of thousands of new households form each year in the GTA is testament to our region’s competitiveness on the global stage,” says John DiMichele, TRREB CEO. “We attract some of the best talent available into and across a diversity of economic sectors. However, in order to remain competitive, policy makers need to continue their focus on the constrained GTA housing supply and to ensure we have an integrated and efficient transit and transportation network that will effectively allow the movement of people and goods.”

“It’s a situation that’s been unfolding over the last decade,” Jason Mercer, TRREB’s chief market analyst and director of service channels, told HOMES Publishing. “A lot of these people are looking to purchase a home to find a place to live, yet we’ve seen a flatline in terms of both home completions, and that feeds into a flatline, even a downward trend in some cases in terms of listings.”

Jason Mercer, TRREB’s chief market analyst and director of service channels

Persistent shortage

While the GTA did see an improvement in condominium apartment rental supply in 2019, recent consumer polling, coupled with the potential for smaller returns on investment from rental income, suggests there are still forces working against more balanced market conditions in the GTA rental market, TRREB says. Policymakers at all levels of government need to be mindful of rental supply requirements as the GTA population continues to grow on the back of a strong regional economy and strong immigration. The organization expects above-inflation annual growth rates in average one- and two-bedroom condominium rents to be sustained in 2020.

“After more than three years of slower market activity brought on largely by changes in housing-related policies at the provincial and federal levels, home sales will move closer to demographic potential in 2020,” says Mercer. “The key issue, however, will be the persistent shortage of listings. Without relief on the housing supply front, the pace of price growth will continue to ramp up. Policy makers need to understand that demand side initiatives on their own will only have a temporary impact on the market.”

TRREB’s report this year focuses on planning for growth in the Greater Toronto Area and broader Greater Golden Horseshoe, with the subtitle “The Time is Now.” Contributions from several organizations all point to the same conclusion: Immediate government support to address housing supply and infrastructure – otherwise, home prices will continue to rise to prohibitive levels.

“Everyone realizes, if you’re thinking about our region both in terms of housing people and also remaining competitive, because if you’re attracting business, people will want a ready supply of housing, and that’s something that’s been quite constrained,” says Mercer. “So, moving forward, we need all levels of government to focus on bringing on more supply, but also great diversity of supply.”

Hon. Steve Clark

Affordability challenges

“Toronto’s booming economy has brought with it housing affordability challenges that will continue throughout the next decade,” says Frank Clayton, senior research fellow, Ryerson University’s Centre for Urban Research & Land Development. “Both the provincial and municipal governments must support a massive increase in the supply of all types of housing and tenures as priority number one and quickly transform the land use planning system to make this happen.”

The Centre for Urban Research & Land Development conducted a study that examined the economy and housing market up to 2031, which shows continuing deterioration of affordability.

“We expect a lot of employment growth, more higher paying jobs in the Toronto region… it’s going to be a good time over the next 10 years for employment and income growth. But, unfortunately, incomes on average will not rise as fast as housing prices or rents, so affordability will continue to be a very serious problem, in fact, get worse.”

Adds Paul Smetanin, president and CEO, Canadian Centre for Economic Analysis: “To accommodate the 480,000 new daily commuters that are expected to join the system between now and 2041, transportation infrastructure capacity will have to increase significantly, and especially for public transit. To get there without making congestion worse, it’s going to be very important to evaluate each new investment in transportation infrastructure on the basis of its productivity to make sure pressure is relieved in the right places.”

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