Toronto Real Estate Market Update - 5 Reasons Why This Market Is So Hot
Why Is the real estate market so hot? The average price is at a record high! In this video we will look at the five things that are driving this market and what should you do about it! TRREB just released the numbers for Feb 2021. • Sales were up 52.5% • Condo sales were up 64% • New listings were up 42.6% • Average Price was up 14.9% to $1.045M • And the HPI is up 14.8% All in all it is a very competitive market. There has been a significant shift since as recently as December. And this is primarily because: 1. There has been a shift in sentiment: people are seeing a light at the end of the lockdown tunnel 2. Canadians have saved an extra hundreds of billions of dollars and are now looking to spend it on RE 3. Interest rates are at historic all-time lows 4. We have a long-term supply problem in Toronto, we are not making enough housing, and we aren’t making anymore “houses” 5. People aren’t selling – while there has been a shift in buying sentiment sellers, especially downsizers are reluctant to make the move while we are still in the middle of this. Just in case you were feeling special, this isn’t a Toronto only problem, this is happening worldwide. And cities like Toronto that have supply problems seem to be seeing the biggest movement. As we have talked about before, the price gap is widening between condos and freehold houses. • The average price for a semi-detached home in GTA is up 20.3% • The average price for a condo in the GTA is down 3.7% I said many months ago, that we would have a glut of supply of condos in the fall of 2020. In November there were: • 340 Condos Sold in C01 (Downtown) • 823 New Listings (41% Sales to New Listings) • 1599 Active Listings (4.7 Months Supply) But that supply is quickly evaporating. In February there were: • 611 Condos Sold in C01 (Downtown) • 664 New Listings (95% Sales to New Listings) • 574 Active Listings ( less than 1 Months Supply) Congrats to all our clients that listened and secured properties last year. If you are looking for a condo there is still an opportunity to buy, but not for long. And there is still value there as the gap in pricing has opened. Two bedrooms houses in great neighborhoods have become unaffordable. But you can still get a great two-bedroom condo with a similar square footage in a great neighborhood, with a view for significantly less. And you will eventually have access to great amenities! Is the market going to slow down? Traditionally we should start to see some supply as prices move up but: • We will continue to have a supply problem, especially when immigration comes back • Interest rates are still going to be at historic lows So what should you do? 1. If you are looking to buy a home, buy one you can afford and lock in at a low interest rate. This will be a great long-term strategy. 2. If you have been waiting to buy a condo: don’t. Start looking now. 3. If you are looking to sell there has never been a better time 4. If you are looking to invest it is an interesting time as rents are significantly lower and building costs have skyrocketed but there are still opportunities! Please book a FREE investor consultation and we can help. I hope you found that hugely helpful….If you are looking to invest, buy or sell real estate let’s have a conversation now! https://calendly.com/thinkrealestate/investor If you have any questions or just want to chat about real estate please send me an email: email@example.com And please follow me on social! https://www.instagram.com/paulhaley_thinkrealestate/ https://www.facebook.com/paulhaleyrealestate/ https://www.linkedin.com/in/paulhaley-realestate/
3 Best Ways to Sell Your Home & Put the Most $ In Your Pocket
Have you gotten a "handwritten" letter recently offering to buy your house for cash? What is this letter and what is the best way to sell your home? There are actually three ways to sell your home and in this weeks video we explore which one may be right for you! 😊 I get a call from my clients usually once a month asking me about a letter like this. To explain what this letter is first I need to explain the three ways to sell your home: 1. List it on MLS 2. List it Exclusively 3. Sell it Privately MLS In a strong seller’s market like we are experiencing in Toronto, listing your property on MLS is typically the best way to get the most value for your home. That is where you will have a team of experienced realtors like THINK Real Estate come in to: • Declutter • Repair • Stage • Take pictures and videos • Market the heck out of your home across many platforms And we do this to appeal to as broad an audience as possible, to get the most eyeballs on your amazing home as possible to find that one buyer that will love your home and pay you the most $. Exclusive Listing Listing your property exclusively, often called a “pocket listing” or an “off-market listing” is where we market your property to other realtors. Exclusive listings are a good way to: • Test the waters on selling price, there is no public record of exclusive listings. (unlike MLS) • Sell your property without a lot of traffic through your home, serious buyers only. Often used for higher value homes. • Reduced selling costs, typically exclusive listings don’t declutter, repair and stage. • Selling a property on Assignment – typically builders assignments agreements don’t let you list on MLS And often while we are getting your property prepared for sale we will list it exclusively to test the market. Private Sale A private sale is where you sell your home to another party, often without the involvement of a realtor just using your real estate lawyer. A private sale is typically used when: • You have a friend or family member that wants to buy your home and you want to reduce the overall transaction costs and are less concerned with getting most value from the market. • Or when you have to sell quickly or there are complications with the sale of your property that would make it difficult to market the property broadly. We have facilitated private sales when they make sense for our clients because we are looking out for their best interests. What is this letter? If you ever take a real estate investing course, they will encourage you to find “off-market” deals by buying investment properties privately, even to the point of employing what are called “bird-dogs” people that find deals and send out letters like this in the hopes of finding a private deal. They do this because they are trying to get a deal. They are trying to buy your home for less than market value! So please, burn that letter! Please call us if you want to sell your home and maximize the $ in your pocket! These letters make me laugh because they always say something to the effect of: “We will buy your house with cash!” Would they buy your house with goats? They are implying that they are just sitting on a mountain of cash waiting to buy your house, but the truth is you don’t know their financing arrangements. What is the BEST way to sell your house? Listing your home on MLS with an experienced realtor is the BEST way to appeal to the largest audience and maximize the sale price of your home, but exclusive listings and private sales are other tools in the toolbox and may make sense depending on your situation. If you are thinking about making a move and selling your home, please contact us and we can explore the best options for you! Just email me at firstname.lastname@example.org Book a FREE No Obligation consultation so we can help you start to navigate the buying or investing process: https://calendly.com/thinkrealestate/investor And please follow me on social! https://www.instagram.com/paulhaley_thinkrealestate/ https://www.facebook.com/paulhaleythinkrealestate/ https://www.linkedin.com/in/paulhaley-realestate/
GameStop - What Happened This Week & The Key Learning For Real Estate Investors
What the heck is happening with GameStop and the Stock Market? What is Shorting a Stock? What is a Hedge Fund? What is a Short Squeeze? Why did Robin Hood suspend trading? WHAT DOES IT ALL MEAN? Those are all great questions and in this weeks video I explain what happened with GameStop and the stock market, if that could happen in Real Estate and one very important take away that can help you! Normally I talk about Real Estate investing on this Channel, and while I favour real estate investing I have been investing in equities since I was 13 years old so I do have a passion for investing in general. I also believe that many puntis try and make investing sound complicated when it really isn't rocket science. I thought I would explain this current phenomenon simply because it isn't really that complicated. Just a bunch of wall streeters trying to make a bunch of money and falling on their face! If you have any questions about investing or real estate please email email@example.com Or book a FREE No Obligation consultation so we can help you start to navigate the buying or investing process: https://calendly.com/thinkrealestate/investor And please follow us on social! https://www.instagram.com/paulhaley_thinkrealestate/ https://www.facebook.com/paulhaleythinkrealestate/ https://www.linkedin.com/in/paulhaley-realestate/
Victorian Roncesvalle Reno - A Semi-Detached Home That's All Potential!
There is lots of potential with this beautiful roncesvalles Victorian. It needs a lot of love and renovation, but there is plenty of positives to make this your dream home. Original stainless windows and light fixtures, fireplace in the large bedrooms. Attic space that can be converted to a bedroom or an office. Unfinished basement for rental income opportunity or your very own rec room. Lovely nook to convert into an open concept kitchen, spacious living and dining areas. 2 Car garage. Easy access to the lake & Martin Goodman trail, Steps to Queen West Amenities/Transit. Street Presence Second To None. This would be a great flip or buy and hold potential with a 13.5% Cash on Cash return and an ROI that will really make you blush! Please send us an email firstname.lastname@example.org if you have any questions or would like to see it! Book a FREE No Obligation consultation so we can help you start to navigate the buying or investing process: https://calendly.com/thinkrealestate/investor And please follow me on social! https://www.instagram.com/paulhaley_thinkrealestate/ https://www.facebook.com/paulhaleythinkrealestate/ https://www.linkedin.com/in/paulhaley-realestate/
Toronto Real Estate Market Update - 2020 Recap & 2021 Forecast
2020 was an unprecedented year, and despite lots of negative forecasts for the real estate market it was a very interesting year indeed. TRREB just released the numbers so let’s recap 2020. • Sales were up 8.4% to 95,151 compared to 2019, the third biggest year on record. • A record year-over-year increase of 64.5% for December, with 7,180 • Year-over-year sales growth was strongest in the GTA regions surrounding Toronto, particularly for single-family home types. • The average selling price reached a new record of $929,699 – up by 13.5 per cent compared to 2019. This included an average price of $932,222 in December – a year-over-year increase of 11.2 per cent. • The strongest average price growth was experienced for single-family home types in the suburban regions of the GTA. • After a pronounced dip in market activity between mid-March and the end of May, market conditions improved dramatically in the second half of the year, with multiple consecutive months of record sales and average selling prices. While the housing market recovered strongly in 2020, there was a dichotomy between the single-family market segments and the condominium apartment segment. The supply of single-family homes remained constrained resulting in strong competition between buyers and double-digit price increases. In contrast, growth in condo listings far-outstripped growth in sales. Increased choice for condo buyers ultimately led to more bargaining power and a year-over-year dip in average condo selling prices during the last few months of the year. This is a tale of two markets and two geographies. • The average price for a detached home is up 17.7% o 22.7% in the 905 o 8.1% in the 416 • The average price for a condo is down 2.0% o Up 6.3% in the 905 (Which is about a third of the market) o And down 4.7% in the 416 So what do we expect in 2021? Pretty much every "expert" prediction was incorrect for 2020, and I don’t have a crystal ball. But I remain bullish on the real estate market because: • Interest rates will remain low in the short to medium term • Immigration is forecast to comeback in a very big way • Job creation especially in the high paying tech sector is growing faster than New York, Washington, Seattle, Austin and Silicon Valley combined! • Despite the glut in the condo market we still have a supply problem when immigration returns • Toronto ranked 5th in world and 3rd in North America as the world's most competitive city (Google it, I just did!) • Canadians SAVED yes saved $200 Billion more than anticipated last year and the forecast is for another $50 Billion this year. Which should help drive an economic recovery Let me say it very simply: • There will continue to be a supply of free money around the world and people will use it to invest and buy up real assets like real estate. • Toronto is a world class city and people will come here in droves. • The nature of work is likely to remain different, but businesses will still want people to have a physical presence which means people are going to want to live in the city in some capacity. Maybe not to the same degree as before but maybe that will be a good thing? This city was and maybe still is spiraling out of affordability. Will this change, probably not? But it may slow it down a bit. So what should you do? 1. If you are looking to buy a home, buy one you can afford and lock in at a low interest rate. This will be a great long-term strategy. a. If you are looking to buy a condo to live in there may never be a better time to buy, certainly in the next few months. b. Timing any market is difficult, prices are down and there is lots of supply. 2. If you are looking to sell Freehold or if you are in default wait until the new year 3. If you are looking to sell a Condo: a. Wait if you can wait b. If you can’t wait then we will need to be creative, which we have recently done 4. If you are an investor there are still lots of opportunities: a. Rents are down but not out. It takes longer than it used to but we are still finding great tenants at reasonable rents. b. Now is actually a great time to develop a property, and hopefully you will finish the development just as immigration comes back and rents come back. i. The only caveat is that the cost of building supplies has surged and there are shortages of key materials and appliances. Book a FREE No Obligation consultation so we can help you start to navigate the buying or investing process: https://calendly.com/thinkrealestate/investor If you have any questions or just want to chat about real estate please send me an email: email@example.com And please follow me on social! https://www.instagram.com/paulhaley_thinkrealestate/ https://www.facebook.com/paulhaleyrealestate/ https://www.linkedin.com/in/paulhaley-realestate/
Roncesvalles Reno - Investment Property of the Week
Welcome to our property of the week! For 2021 we decided to bring you a new property each week from properties great for investors to real estate eye candy. This week we bring you this great Roncesvalles reno that is the perfect project for a flip or even to buy renovate and hold. The numbers look good on this project, please see below. This is really only for investors and clients that are working with Think Real Estate as it will be difficult to finance and project execution could really make or break the numbers. Please email firstname.lastname@example.org for a full breakdown of the numbers and if you have any questions! Target Price $1,100,000 Rehab Costs $900,000 After Reno Value $2,600,000 Potential Profit $600,000 Net Investment $151,876 NOI $109,600 5 Year Total ROI 73.5% Cash on Cash Return 16.7% Return on Cash Flow 8.5% Cap Rate 10.0%
Getting A Mortgage - What is a Mortgage Broker?
What is a trusted team? A trusted team is when “we”, customer, realtor, mortgage broker, lawyer, architect, and contractors etc. work together to ensure you are absolutely going to get the best solution for what you are trying to achieve. In this video we are talking to a part of my trusted team, Ruth Akierman from Outline Financial to answer some questions about mortgage brokers. Why should I use a mortgage broker? https://youtu.be/rOwe2D-oYks?t=156 1. They can access all financial institutions to find you the best rate and terms with one credit check 2. They will give you options 3. They pickup the phone! When should I talk to you? https://youtu.be/rOwe2D-oYks?t=303 • “Clients should talk to me as soon as possible. Never too early to start the process. Many of my clients have files started with us in the ‘pre-approval’ stage so that when you are ready to pull the trigger on a property, we may only need a few documents updated to get an approval done.” How long does the process take? https://youtu.be/rOwe2D-oYks?t=362 • “Typically we could get a condition of financing (COF) done in 3 days and we could close a property in 2 weeks. In this market we are looking at 5 day COF’s or longer if possible and closing at a month minimum. “ What is a pre-approval? https://youtu.be/rOwe2D-oYks?t=443 • “Pre-approval- many different types and not all banks are made equal. A pre-approval could simply mean a rate hold.” • “I do a lot of the underwriting myself before the bank ever sees your documents. I will give you the options, and you get to decide how you will move forward.” When should I feel comfortable waiving a financing condition? https://youtu.be/rOwe2D-oYks?t=552 • “A mortgage broker is here to mitigate risk on going firm on a deal as well as helping you feel comfortable in waiving a finance clause. Once we have a firm approval in hand, we review with you to make that decision on waiving finance clauses.” What is better, a fixed rate or variable rate? https://youtu.be/rOwe2D-oYks?t=646 What do Mortgage Brokers Charge? https://youtu.be/rOwe2D-oYks?t=759 Top three reasons why I like working with Ruth 1. She answers the phone 2. She guides my clients through the process 3. Problem solver - If she says she will get you a deal she will get you a deal! ‘ "It takes a team of people and efforts in the background to get you from Offer to Ownership. The truth is Paul & Jordin make my job easier and I make their job easier.” I hope you found that hugely helpful! Please send me an email with any questions: email@example.com or for mortgage related questions: firstname.lastname@example.org Or Book A FREE No Obligation Consultation: https://calendly.com/thinkrealestate/investor You can download our FREE Investor's Guide: http://paulhaley.ca/free_investors_guide/ And please follow me on social! https://www.instagram.com/paulhaley_thinkrealestate/ https://www.facebook.com/paulhaleyrealestate/ https://www.linkedin.com/in/paulhaley-realestate/
How Do You Add $100,000 to the Value of Your Home in 2 Months?
We helped our clients Alex & Kieran find and renovate this house adding $100,000 of value in 2 short months! In this video we will take you through their experience of finding the house, the contractor and how the did a super smart renovation so every dollar they spent increased the value of their home. If you are looking for a house, something that you can make exactly how you want it and potentially add value, please leave a comment or send us an email to email@example.com Book a FREE No Obligation consultation so we can help you start to navigate the buying or investing process: https://calendly.com/thinkrealestate/investor And please follow me on social! https://www.instagram.com/paulhaley_thinkrealestate/ https://www.facebook.com/paulhaleythinkrealestate/ https://www.linkedin.com/in/paulhaley-realestate/