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Toronto real estate: Most millennials still want to buy first home and are prepared to leave GTA to make it happen – CP24

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Nearly six out of 10 millennials residing in the Greater Toronto Area haven’t yet given up on their ambitions to own a home one day but many believe they will have to relocate in order to do so and some are even willing to seek out remote jobs to make it happen, a new survey suggests.

The Royal LePage survey conducted by Leger reveals that 59 per cent of GTA residents between the ages of 26 and 41, who do not currently own a home, still believe that they will some day.

However, only 22 per cent of those respondents anticipated buying a home in the city where they currently reside.

Another 37 per cent said that they would have to relocate to realize the dream of home ownership while 13 per cent didn’t want to say.

Nationally, only 31 per cent of respondents said that they would have to relocate to afford a home.

The survey also found that a plurality of GTA residents (49 per cent) would change employers in order to be able to work fully remote. Nationally, the percentage of respondents who said that they would change jobs in order to work remotely was lower – about 40 per cent.

“A lot of people I think are caught up, young people, are caught up in the in the whole pandemic relocation wave that we saw for the very first time in the Golden Horseshoe, people leaving for other provinces,” Royal LePage President and CEO Phil Soper told CP24. “Typically we attract people from other provinces but during the pandemic that that trend reversed and I think our millennials, our younger homebuyers, our younger professionals are still thinking along the lines of remote work. (Toronto) Mayor Tory has talked about how some of that is changing but at this stage people are still thinking mobility will solve a lot of my problems.”

Real estate prices have fallen

Real estate prices in the GTA have fallen steadily in recent months amid a sustained campaign by the Bank of Canada to hike interest rates in a bid to battle inflation.

In a report released earlier this month, RBC warned that a housing correction already underway in the GTA could end up being “one of the deepest of the past half a century” with double-digit price declines from peak to trough.

However, it should be noted that the cost of buying a home in the Greater Toronto Area is still limiting for many residents with the average benchmark price in July coming in at $1,074,754.

According to the Royal LePage survey, more than half (56 per cent) of millennials in the GTA already own their home, which is roughly in line with the home ownership rate among that age group Canada-wide (57 per cent).

Of those who plan to purchase a home in the next five years, about 47 per cent said that they would do so in their current city while 45 per cent said that they would relocate.

Interestingly, when cost of living was excluded as a consideration approximately 80 per cent of GTA residents said that they would choose to remain in the region.

That was higher than any other urban centre for which a breakdown was provided.

“It comes back to what you want to do and what’s important to you, as a family, as a person and for most Canadians, about seven in 10 Canadian families, own their homes. So it’s been a long established way to build stability or security for your family and with millennial our research shows exactly the same mentality,” Soper told CP24. 

The Leger survey was conducted between June 10 and June 16 using an online panel of 2,003 individuals.

A margin of error was not provided because a non-probability sample (web panel) was used for this survey.

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Japan’s SoftBank returns to profit after gains at Vision Fund and other investments

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TOKYO (AP) — Japanese technology group SoftBank swung back to profitability in the July-September quarter, boosted by positive results in its Vision Fund investments.

Tokyo-based SoftBank Group Corp. reported Tuesday a fiscal second quarter profit of nearly 1.18 trillion yen ($7.7 billion), compared with a 931 billion yen loss in the year-earlier period.

Quarterly sales edged up about 6% to nearly 1.77 trillion yen ($11.5 billion).

SoftBank credited income from royalties and licensing related to its holdings in Arm, a computer chip-designing company, whose business spans smartphones, data centers, networking equipment, automotive, consumer electronic devices, and AI applications.

The results were also helped by the absence of losses related to SoftBank’s investment in office-space sharing venture WeWork, which hit the previous fiscal year.

WeWork, which filed for Chapter 11 bankruptcy protection in 2023, emerged from Chapter 11 in June.

SoftBank has benefitted in recent months from rising share prices in some investment, such as U.S.-based e-commerce company Coupang, Chinese mobility provider DiDi Global and Bytedance, the Chinese developer of TikTok.

SoftBank’s financial results tend to swing wildly, partly because of its sprawling investment portfolio that includes search engine Yahoo, Chinese retailer Alibaba, and artificial intelligence company Nvidia.

SoftBank makes investments in a variety of companies that it groups together in a series of Vision Funds.

The company’s founder, Masayoshi Son, is a pioneer in technology investment in Japan. SoftBank Group does not give earnings forecasts.

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Yuri Kageyama is on X:

The Canadian Press. All rights reserved.

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Trump campaign promises unlikely to harm entrepreneurship: Shopify CFO

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Shopify Inc. executives brushed off concerns that incoming U.S. President Donald Trump will be a major detriment to many of the company’s merchants.

“There’s nothing in what we’ve heard from Trump, nor would there have been anything from (Democratic candidate) Kamala (Harris), which we think impacts the overall state of new business formation and entrepreneurship,” Shopify’s chief financial officer Jeff Hoffmeister told analysts on a call Tuesday.

“We still feel really good about all the merchants out there, all the entrepreneurs that want to start new businesses and that’s obviously not going to change with the administration.”

Hoffmeister’s comments come a week after Trump, a Republican businessman, trounced Harris in an election that will soon return him to the Oval Office.

On the campaign trail, he threatened to impose tariffs of 60 per cent on imports from China and roughly 10 per cent to 20 per cent on goods from all other countries.

If the president-elect makes good on the promise, many worry the cost of operating will soar for companies, including customers of Shopify, which sells e-commerce software to small businesses but also brands as big as Kylie Cosmetics and Victoria’s Secret.

These merchants may feel they have no choice but to pass on the increases to customers, perhaps sparking more inflation.

If Trump’s tariffs do come to fruition, Shopify’s president Harley Finkelstein pointed out China is “not a huge area” for Shopify.

However, “we can’t anticipate what every presidential administration is going to do,” he cautioned.

He likened the uncertainty facing the business community to the COVID-19 pandemic where Shopify had to help companies migrate online.

“Our job is no matter what comes the way of our merchants, we provide them with tools and service and support for them to navigate it really well,” he said.

Finkelstein was questioned about the forthcoming U.S. leadership change on a call meant to delve into Shopify’s latest earnings, which sent shares soaring 27 per cent to $158.63 shortly after Tuesday’s market open.

The Ottawa-based company, which keeps its books in U.S. dollars, reported US$828 million in net income for its third quarter, up from US$718 million in the same quarter last year, as its revenue rose 26 per cent.

Revenue for the period ended Sept. 30 totalled US$2.16 billion, up from US$1.71 billion a year earlier.

Subscription solutions revenue reached US$610 million, up from US$486 million in the same quarter last year.

Merchant solutions revenue amounted to US$1.55 billion, up from US$1.23 billion.

Shopify’s net income excluding the impact of equity investments totalled US$344 million for the quarter, up from US$173 million in the same quarter last year.

Daniel Chan, a TD Cowen analyst, said the results show Shopify has a leadership position in the e-commerce world and “a continued ability to gain market share.”

In its outlook for its fourth quarter of 2024, the company said it expects revenue to grow at a mid-to-high-twenties percentage rate on a year-over-year basis.

“Q4 guidance suggests Shopify will finish the year strong, with better-than-expected revenue growth and operating margin,” Chan pointed out in a note to investors.

This report by The Canadian Press was first published Nov. 12, 2024.

Companies in this story: (TSX:SHOP)

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RioCan cuts nearly 10 per cent staff in efficiency push as condo market slows

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TORONTO – RioCan Real Estate Investment Trust says it has cut almost 10 per cent of its staff as it deals with a slowdown in the condo market and overall pushes for greater efficiency.

The company says the cuts, which amount to around 60 employees based on its last annual filing, will mean about $9 million in restructuring charges and should translate to about $8 million in annualized cash savings.

The job cuts come as RioCan and others scale back condo development plans as the market softens, but chief executive Jonathan Gitlin says the reductions were from a companywide efficiency effort.

RioCan says it doesn’t plan to start any new construction of mixed-use properties this year and well into 2025 as it adjusts to the shifting market demand.

The company reported a net income of $96.9 million in the third quarter, up from a loss of $73.5 million last year, as it saw a $159 million boost from a favourable change in the fair value of investment properties.

RioCan reported what it says is a record-breaking 97.8 per cent occupancy rate in the quarter including retail committed occupancy of 98.6 per cent.

This report by The Canadian Press was first published Nov. 12, 2024.

Companies in this story: (TSX:REI.UN)

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