May not realize full impact of B-20 changes till Spring.

The pessimism that has been ruling the markets since the U.S. election may ease a little today.  President Obama is set to meet with the leader of the Republicans in an effort to avoid the fiscal cliff.  Bond yields are virtually unchanged, up just 1 basis point (bp).

We’ve been enjoying flat mortgage rates for a number of weeks now, with a downward trend in bond rates.  We’ve come down 15 bps over the last month so that being said, there’s little reason for mortgage rates to move up any time soon.  There’s been a bit of a cushion built into today’s rates as the cost to the lenders has come down, yet mortgage rates have not moved with them.

The market is still adjusting to the recent  B-20 underwriting changes that took effect the end of October.  As we go into what is generally a seasonal slowdown, it’s hard to really tell the impact it will have more immediately.  Come the spring, that may be the true test of this latest round of changes.

One can only hope that all this government meddling hasn’t caused more problems for the Canadian housing market.  I can appreciate the intent of trying to provide a soft landing and reduce the household debt issues that have been raised, but needing to step into the market four times in as many years seems a bit excessive, doesn’t it?

BEST RATES: 1yr 2.69% – 3yr 2.65% – 5yr 2.94% – 5yr Variable 2.65%

Lee Welbanks is a Mortgage Broker with Welbanks Financial Group, reach out to him if you have any questions about these changes and how they affect you. Heard about our awesome new home search tool? We’ve opened up the MLS just for you. Make sure you log-in to our custom Spring Realty Homefinder Tool and give it a spin! Find us on Facebook and Twitter too!

What's the best available mortgage rate for 1st time buyer?


42 Allen Ave – Riverside/Leslieville Flip Potential

In a hot housing market it’s been difficult to find ideal candidates with a solid return on investment (ROI) in flips recently. Investors (contractors, renovators) are competing with end users (those buying to live rather than flip) driving prices up and creating narrow profit margins. Flips must be done on time, on budget by experienced builders in order to mitigate the investment risk.

We’ve found the perfect home for a flip.  It isn’t desirable for immediate occupancy so it is highly likely that the potential purchaser will be a  builder or experienced renovator.  If done well I believe there is a large profit margin available for this project.

Ladies and Gentlemen allow me to introduce: 42 Allen Ave. This bank owned, foreclosure sale in prime Riverside (just west of Leslieville and east of Downtown) has just been put on the market at a very attractive $270,000! Now this isn’t some low price to attract a bidding war. This is a bank owned property in terrible condition requiring a full ‘gut-job’ renovation. From what I understand the foundation is strong and there hasn’t been any water penetration but it hasn’t been treated well by the previous owner/resident(s).

Here are the property details:

3 Bedrooms

1 Bathroom

Approximately 1100sqft

No Parking

Victorian Style Rowhouse

 

We see massive potential here. I studied the local comparables using  very specific parameters. I chose 15 recent sales using the following boundaries: DVP to Degrassi and Garrard to Queen. After reviewing the data I’ve determined that a row-house without parking, tastefully renovated with 3 bedrooms and 3 baths should achieve a sale price of between $550-750K. Now applying this information to 42 Allen St specifically. The data shows that it would likely sell for as high at $635K when complete!

It’s important to remember that this community is quite segmented; some streets sell more than others and vice versa. Allen St is a cute street with very little traffic. Close to transit (Streetcar) and a short ride to the subway. 42 Allen Ave offers access to Queen St East and all the best the Riverside and Leslieville has to offer. And an added bonus of being just a quick street car ride to the Downtown Core or a nice long walk if you’re up for it. All of this plus the added charm of the existing Victorian features make 42 Allen Ave the best buy with the most profit potential I’ve seen in a very long time.

With a potential purchase price of $270,000 and anticipated renovation costs of up to $200,000 it’s virtually a no-brainer for the experienced builder/renovator.

For more information or for a private tour of the property please contact us today.

 

Ara Mamourian

Broker of Record

ara@springrealty.ca or 416-628-1088


TTC celebrates 90 years of service

Laying the first tracks on Gerrard street

The TTC is celebrating 90 years of service (Sept 1/2011).   Things have come along way from laying the first tracks on Gerrard street (see inset)  and the amalgamation of private and municipal street railways comprising the central system of the Toronto Railway Company, the Toronto Civic Railways’ five municipal routes and three routes of the Toronto & York Radial Railway within the city. Adult fares were set at seven cents and tickets were four for 25 cents.

The first subways were brought across the Atlantic from Britain to the port of Montreal for service from Union to Eglinton Station.  Today the TTC has the third largest ridership in North America trailing only Mexico City and New York City with populations in excess of 8 million.  The newest subway cars built in Thunder Bay by Bombardier hit the Yonge/Univeristy/Spadina line recently which for the first time feature continuous access across the 6 cars and ‘smart’ maps which light up stations as they are served.  The TTC also recently launched a GPS based Next Bus system which is discussed here.

One of the TTC's new continuous access cars.

What has made the TTC great in Toronto is that it’s a service that is used across socioeconomic groups.  On every train in the morning you’ll see businessmen in suits alongside students on their way to school.  The system is safe and reliable.

Unfortunately it’s finances have been in terrible shape since provincial fare subsidies were eliminated under the Harris government in mid-90’s causing it to be the largest Anglo-American transit operator without provincial or federal/state funding.  It’s in desperate need of funding to expand and maintain it’s infrastructure.  Most stations have not been maintained well over the years and are showing their age.  Bottlenecks have formed without any relief for commuters traveling to the downtown core.

The TTC is a great amenity that many potential home owners look to find close by when trying to find that dream home.  We’ve tried to list all local transit options on our Neighbourhood pages which can be accessed via the Neighbourhood and Building Maps. While the current municipal government is looking at service cuts to deal with a funding defect Spring Realty is holding out hope to see some service improvements or infrastructure maintenance for the 100 year anniversary.


No more standing in the cold with NextBus and TTC

TTC NextBusWe’ve all been there, you’re standing waiting for the TTC bus it’s –25 you can’t feel your toes or fingers. Each passing taxi looks like salvation but you resist the urge to flag it down because you’re sure the next bus is just around the corner. Of course it’s not and you continue to wait another 10 minutes, at which point your toes have turned a deep shade of blue and another taxi starts approaching. This time your not so certain that the bus is around the corner, you try to resist but the lour of the warm taxi is too much and you flag it down. We’ll we all know what happens next, no sooner do you sit down on the cracked plastic seat of an aged Crown Vic. then do you hear that high pitched whir of an approaching bus!

Well my friends no more! With little to no fan fair and even less media coverage the TTC released it’s automated vehicle  scheduling system a number of months ago, it’s called Next Vehicle Arrival System (NVAS). This fantastic little piece of technology allows the user to see exactly when the next bus is coming. Developed by the people at NextBus the system gives real time updates of all vehicles on the system. So no more guessing or trying to decipher those cryptic time tables posted by the stops (which at best are guesstimations based on a city with no cars). Simply pull out your chosen smart phone and go to www.nextBus.com from there you will be able to install a direct link that you uses the internal GPS in your phone to tell you when the next bus closest to you will arrive. Most importantly these times are not based on a set schedule but rather on live GPS information that is relayed from each bus. It is a real time, life and toe saver to be sure, to learn more and start using the NextBus system just follow the links below.

To read more about NVAS and the TTC go to:
http://www3.ttc.ca/About_the_TTC/Projects_and_initiatives/Customer_Information_Initiatives/Next_vehicle_information_system/index.jsp

To install the NextBus on your smart phone:
http://www.nextbus.com/wirelessConfig/PDAs.jsp

To see when the next bus is coming from the comfort of your computer:
http://www.nextbus.com/predictor/stopSelector.jsp?a=ttc