Real eState
Hamilton real estate: Flamborough's average home prices soar in October. What else sold? – TheSpec.com
Residential properties in Flamborough and Burlington were among the highest-priced sales in the area in October, and also the lowest, says the Realtors Association of Hamilton-Burlington.
The three most expensive homes sold in the RAHB market area — which includes Hamilton, Burlington, Haldimand and parts of Niagara West — last month were in Flamborough, Burlington and Ancaster, and ranged from $2.7 million to $2.8 million.
RAHB president Kathy Della-Nebbia says all three areas have seen an increase to the average sale price over the past year, but Flamborough’s gains have been most significant.
“Flamborough’s average price in October was $1,106,337, which is up 48.3 per cent from last year,” she said, noting the whole region has seen steady traffic from people coming from elsewhere, thanks to an increase in remote working. “The pandemic has also highlighted the value of space within and outside a property, and we are seeing this reflected in the types of properties that are in demand, namely single-family detached (homes).”
The three least expensive October sales were two properties in Flamborough and one in Burlington.
“The two properties in Flamborough are … more than likely modular properties within a lease land community,” she said. “The bottom sale in Burlington is an apartment-style property that is most likely a co-operative ownership.”
Here’s a look at two houses that sold in Hamilton in October.
Kirkendall South: $2 million
Address: 125 Amelia St.
Nearest main intersection: Aberdeen Avenue and Queen Street South
Asking price: $2,249,900
Selling price: $2,000,000
House size: 2,902 square feet
Lot size: 16,258 square feet
Taxes: $12,646.82 in 2020
Bedrooms: 4
Bathrooms: 4
Sold: Oct. 23
Closes: Jan. 22
Main Floor: Living room/dining room, living room, kitchen, primary bedroom, ensuite bathroom
Basement: Recreation room, games room, office, laundry room, storage room, bathroom
Second floor: Three bedrooms, two bathrooms
Listing agent: Drew Woolcott, Re/Max Escarpment Woolcott Realty
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This mid-century home was designed by Toronto architect Jerome Markson and built around 1957. It’s on a deep lot at the end of the cul-de-sac, backing onto the Bruce Trail. The kitchen has quartz counters and the living room has a vaulted cedar-strip ceiling and floor-to-ceiling windows. The upstairs bedrooms include built-in drawers and desks.
According to the realtor, this $2-million sale is both the highest sale price within the last year in the former city of Hamilton, but also the highest sale price ever in Kirkendall.
North End: $390,000
Address: 449 Mary St.
Nearest main intersection: Burlington Street East and Wellington Street North
Asking price: $299,999
Selling price: $390,000
House size: 1,244 square feet
Lot size: 3,498 square feet
Taxes: $2,508 in 2020
Bedrooms: 3
Bathrooms: 2
Sold: Oct. 24
Closes: Nov. 19
Main Floor: Kitchen, living room, two bedrooms, bathroom
Basement: Bathroom, storage, utility room
Second floor: Bedroom
Listing agents: Reisha Dass, Re/Max Real Estate Centre
The sellers of this home bought it in 1972, says realtor Reisha Dass. Their sons are now adults; their mother sold the home to move in with one of her sons, says Dass.
The home has dated fixtures but is on a good-sized lot close to the waterfront and downtown. “Here’s an affordable opportunity for those looking for a lighter venture,” said the listing, targeting investors, renovators and flippers.
Real eState
Banks Believe They Are Well-Prepared for Commercial Real Estate Fallout – The Wall Street Journal
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Banks Believe They Are Well-Prepared for Commercial Real Estate Fallout The Wall Street Journal
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Real eState
Home buyer savings plans boost demand, not affordability – Financial Post
Robert McLister: Tax shelters don’t make housing more affordable, but those with the cash would be foolish not to use them
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With housing unaffordability near its worst-ever level, our trusty leaders are on a quest to right their housing wrongs and get more young people into homes.
Part of Ottawa’s big strategy to “help” is promoting tax-sheltered savings accounts and pumping up their contribution limits. That, of course, stimulates real estate demand amidst Canada’s population and housing supply crises. But save that thought.
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First-time buyers now have three government piggy banks to stockpile cash for a down payment:
1. The 32-year-old RRSP Home Buyers’ Plan — which lets you deduct contributions from your income to defer taxes and then borrow from the account interest-free for your down payment (as long as you wait 90-plus days to withdraw any contributions);
2. The 15-year-old Tax-free Savings Account (TFSA) — which lets you save after-tax dollars, grow your money tax-free and withdraw it without the taxman taking a bite;
3. The one-year-old First Home Savings Account (FHSA) — which is a combination of an RRSP and TFSA. It lets you deduct contributions from income, compound it tax-free and never pay tax on withdrawals used to buy a home. You can even save the deduction for a year when you need it more — when you’re earning more money.
Assuming you have the funds and contribution room, these tax shelters can combine to help you amass a supersized down payment.
“Looking at the FHSA alone, with the max annual contribution room of $8,000 for 2023 and 2024, a potential first-time home buyer could have as much as $16,000 deposited in the account today for a down payment,” says Eric Larocque, chief mortgage operations officer at Questrade’s Community Trust Company.
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“If you also add in the cumulative contribution room of $95,000 for the TFSA, it amounts to $111,000 in potential funds available — and that’s before incorporating investment gains from either account.”
And it doesn’t stop there. RRSP, TFSA and FHSA savings limits keep increasing. If first-timers have enough contribution room, down payment savers in 2024 can sock away even more in these tax-sheltered troves.
“Factoring in the recent changes to the Home Buyers’ Plan, which now permits RRSP withdrawals of up to $60,000 — up from $35,000 — we land at a potential total of $171,000 in deposited funds that can be tapped for a first-time home buyer’s down payment,” Larocque adds.
That’s quite a wad — easily enough to cover the 20 per cent ($139,706) down payment required to avoid mandatory (and pricey) default insurance on the average home. Canada’s average abode is now worth $698,530 by the way, according to the Canadian Real Estate Association.
Here’s the rub: Canada’s living costs are sky-high, and real disposable income has trended downward. So, how’s an average first-time buyer household, raking in less than six figures, supposed to amass such a stash?
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Based on national averages, saving 10 per cent of one’s pre-tax income per year (who does that?) would take a young FTB couple over 15 years to sock away $140,000. History shows what would happen to home values if you waited 15 years — they’d jet off without you.
If you have no other resources and your bet is that historical appreciation rates continue — despite slower population growth, more building and potentially higher long-term rates — you’re better off saving less and buying sooner with a five per cent down insured mortgage.
So, does Big Brother really expect your typical first-time buyer to max out all these savings plans? Nope. But hey, throwing a buffet of options at you sure paints a pretty picture of government effort, doesn’t it?
Ottawa’s dirty little secret is that these nifty programs crank up demand, turning renters into buyers. So don’t bet on them making the home-owning dream any cheaper, for first-timers or anyone else.
Take advantage of them anyway.
The government sets limits on these tax shelters with well-off home buyers in mind. One lucky bunch who can make use of all three down payment savings plans is the first-timer with prosperous parents.
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Such buyers can make a withdrawal from their parental ATM (a living inheritance, some call it), deposit that cash in all three savings vehicles above and reap: hefty income tax savings or deferrals (thanks to the FHSA and RRSP deductions); tax-free/tax-deferred growth on the investments; and tax-free withdrawals if the money is used to buy a qualifying home (albeit, you’ll have to pay the RRSP HBP back over 15 years, starting five years after your withdrawal).
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The more opportunities it gives people to save for a down payment, the more Ottawa worsens the imbalance between purchase demand and supply. And that, of course, boosts real estate values skyward — which is dandy for existing owners but contradictory to the government’s affordability messaging.
But hey, these tax treats are ripe for the picking. Home shoppers with the means — especially those with deep-pocketed parents — might as well take advantage of all three accounts.
Robert McLister is a mortgage strategist, interest rate analyst and editor of MortgageLogic.news. You can follow him on X at @RobMcLister.
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Real eState
$93 Billion Real Estate Giant Is Betting The Market Is About To Hit Rock Bottom – Yahoo Finance
Successful real estate investors have long followed the adage: When there is blood in the street, buy property.
Historically, this approach has yielded dividends, and it explains the mindset behind a new venture from Hines, a real estate giant with over $93 billion in assets under management. Hines recently announced a new platform called Hines Private Wealth Solutions that seeks to capitalize on the recent troubles in the real estate industry.
The management at Hines has been carefully watching the real estate industry for decades, and they believe that today’s market presents the perfect opportunity for investors to buy distressed assets and sell them at a profit in the future. When you consider that nearly $4 trillion in commercial real estate loans are set to mature between now and 2027, it’s easy to see the logic behind Hines Private Wealth Solutions.
The developers behind many of those projects took out loans assuming they would be able to refinance at pre-COVID interest rates. Considering that current interest rates are about double what they were before COVID-19, that assumption looks more like a losing bet every day. It also means there will be a lot of foreclosures that a well-positioned fund can snap up for pennies on the dollar.
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That’s where Hines Private Wealth Solutions seeks to step into the picture. It’s already contracted with investing heavyweight Paul Ferraro, former head of Carlyle Private Wealth Group, and raised $10 billion in funds for the new project. It will offer its clients a range of investment options, including:
In addition to these offerings, Hines will also give personal guidance to its investors on how to best manage their real estate assets. It is targeting investors who want to turn away from the traditional 60/40 investment model by channeling more money into real estate and away from other alternative investments. Hines is banking on the idea that high interest rates and high inflation will be around for a while.
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When that happens, it becomes more important for investors to hold inflation-resistant assets. That’s a big part of why Hines is betting that real estate is near the bottom after years of declining profits resulting from high interest rates and major losses in the commercial sector. Hines’s conclusion that now is the time to buy real estate is based on long-term company research showing that real estate typically declines after a 15- to 17-year-long growth period.
Its research shows that the decline normally lasts around two years, which is about the same length of time the real estate market has been suffering from high prices and high interest rates. Theoretically, that makes this the perfect time to make aggressive moves in the real estate market, and the Hines Private Wealth Fund was conceived to allow investors to take advantage of current market conditions.
Despite the deep troubles facing today’s real estate industry, it’s not hard to see the logic in Hines’s approach.
“This is a great vintage, it’s a great moment. This real estate correction began really over two years ago, right when the Fed started raising interest rates,” Hines global Chief Investment Officer David Steinbach told Fortune magazine. “So, we’re two years into a cycle, which means we’re near the end.”
If Hines is correct, real estate investors will have a lot of good bargains with high upside to choose from in the next 12 to 24 months. The good news is that even if you’re not wealthy enough to buy into the Hines Private Wealth Solution, there may still be plenty of opportunity for you to adopt their investment philosophy and start scouting for an undervalued, distressed asset to scoop up. Keep your eyes open and be ready.
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This article $93 Billion Real Estate Giant Is Betting The Market Is About To Hit Rock Bottom originally appeared on Benzinga.com
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