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LACKIE: Downsizers are critical to a healthy real-estate market – Toronto Sun

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Once upon a time, the real-estate market flowed in clearly delineated seasons. Spring and fall were busy, winter and summer slow.

In many ways this continues to be the rhythm — families will always prefer to be settled in time for school to start or the holiday season to kick off, and in a country with but a few short months of glorious summer, July and August will always find most of us out-of-office, even if just in our minds.

But in a city with a years-long inventory problem, real estate has now evolved to become opportunity-driven more than anything else; would-be buyers need to be on the hunt 24/7 lest they miss their chance.

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We talk a lot about the challenges first-time buyers face in a tough market like ours. Less frequently explored are the frustrations felt by would-be downsizers who want to shift their focus to their next acts but simply cannot figure out a way to get there.

Downsizers are a critical component to a well-functioning real-estate market. In order for first-time buyers to ascend the property ladder, upward movement depends on those at the top vacating their spots, in this case their family homes.

We call them “downsizers” but that presupposes that smaller houses, stair-free bungalows, or larger apartments are easily accessible. Going from house to a decent sized condo is most often a lateral move, financially speaking. So even though we’re all familiar with the classic Toronto tale of the Boomer couple who bought their Riverdale semi for $37,000 in 1976 only to now be able to sell for $1.5M, the problem is that those gains are meaningless if there’s nowhere to move that will free up some of that equity to fund retirement.

So what then?

Rental apartments are tricky as they’re not particularly stable. Even if you find one you can see yourself being happy in, it’s unwise to plan too far into the future as there is always the distinct possibility of the unit being reclaimed or sold out from under you. The few purpose-built rental buildings in the city are largely 1970s buildings that usually can’t compare to condos in terms of fit, finish and amenities, so not particularly appealing to people coming from a home they love.

And with recent moves by this provincial government to further limit rent control measures as a way to incentivize development of more rental supply, it’s even harder for someone contemplating life on a fixed income to feel secure.

We unfortunately know that COVID-19 has revealed horrendous vulnerabilities in the province’s assisted living and long-term care facilities, so that’s likely going to be a hard pass as well.

So what to do?

Firstly, for a while host of reasons it’s time to change the messaging around “affordable housing” initiatives in this city. We need to incentivize development of projects that meet pressing needs such as this, and advocate for them to the NIMBYs who complain about the city’s lack of housing supply yet simultaneously rail against such projects during the community consultation process.

We need to incentivize developers to build purpose-built rental apartments again, the bigger the better.

We need to lobby the government to help retirees find ways to access the equity in their homes.

At present, there’s no way to access a Home Equity Line of Credit without income, so for many retirees that leaves only predatory reverse mortgages. If the government would step in and legislate to protect seniors from predatory lending while also helping them tap into the equity in their home, that would go a long way. In the meantime, the only real option is to take out such a line of credit in advance of retirement, and keep it clear until you need to advance on it to fund your life. But that shouldn’t be the only way.

It seems to me that this is a moment of opportunity for a savvy entrepreneur.

There is an entire segment of our population who would love some help staying in their homes, even if it’s a smaller house around the corner or a bungalow 45 minutes north of the city. Service offerings that will take on the day-to-day headaches of running a home — garbage day, snow removal, gutter cleaning — for a monthly fee. Occupational therapists that can assess the home and make recommendations for how one might adapt the environment to meet the needs of seniors with evolving health challenges. Concierge-like services that will help tacking online grocery ordering and come help when the cable stops working or the skylight springs a leak.

Because the thing is this — in helping to facilitate the next steps for downsizers by doing more to meet the needs of our seniors, you’re opening up possibilities for everyone else. Win-win. For everyone.

— Lackie is a second-generation Sales Representative with Chestnut Park Real Estate and has been helping her clients navigate the challenging Toronto market since 2011

@brynnlackie 

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Waterdown home listed for $2M offers 'rural-style living' – Hamilton Spectator

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#HamOntHouseHunt is a regular feature looking at houses for sale in the Hamilton area market. Have a tip? Email us at fhewitt@torstar.ca.

Price $1,999,900



Barn

The fully functional barn located on the property of 694 Centre Rd. in Waterdown.




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Kitchen

The kitchen of 694 Centre Rd. in Waterdown.






Primary Suite

The primary bedroom of 694 Centre Rd. in Waterdown.




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Deck

The back deck of 694 Centre Rd. in Waterdown.




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Former HGTV star slapped with $10 million fine and jail time for real estate fraud – Fortune

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Back when mortgage rates and home prices were more reasonable and manageable, homeowners invested in fixer-upper properties and made them their own. Now these types of projects aren’t as popular. But in the early-to-mid-2010s, HGTV shows including Fixer Upper, Love It or List It, and Flip It to Win It were all the rage as viewers binge-watched dilapidated homes transform into dream properties.

But as it turns out, one former HGTV star’s house-flipping show was masking major real estate fraud. On Tuesday, Charles “Todd” Hill, was sentenced to four years in jail and ordered to pay back nearly $10 million to his victims following his conviction. Los Gatos, Calif.–based Hill, 58, was the star of HGTV show Flip It to Win It, which aired in 2013 and featured Hill and his team purchasing dilapidated homes and fixing them up. Hill then sold them for a profit.

“Some see the huge amount of money in Silicon Valley real estate as a business opportunity,” Santa Clara County District Attorney Jeff Rosen said in a statement. “Others, unfortunately, see it as a criminal opportunity—and we will hold those people strictly accountable.”

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What did Hill do?

According to the indictment shared with Fortune, the accusations against Hill happened between 2012 and 2014, around the time his show (which lasted just one season) began. The indictment shows 10 counts of grand theft of personal property exceeding $950,000; three counts of embezzlement; and one count of diversion of construction funds. Hill could not be reached by Fortune to comment on the indictment, conviction, or sentencing.

Hill was convicted last year of the multiple fraud schemes, including scams that happened before his show aired. This included a Ponzi scheme with evidence showing that Hill had spent laundered money on a rented apartment in San Francisco, hotels, vacations, and luxury cars, according to a press release from the Santa Clara County District Attorney’s Office. HGTV did not respond to requests for comment from Fortune ahead of publication.

“To hide the theft, he created false balance sheets and got loans using fraudulent information,” according to the district attorney’s office. In another case, Hill diverted construction money for personal use. But one of the strangest accounts came from an investor who had poured $250,000 into a property he wanted Hill to remodel. 

Instead, during a tour of the home, the investor “found it to be a burnt-down shell with no work done on it.”

After the district attorney’s investigation, Hill was indicted in November 2019 and in September 2023 admitted his guilt and was convicted by plea of grand theft against all of his victims. He’ll have to pay restitution of more than $9.4 million and serve 10 years on probation.

Victims who spoke at Tuesday’s hearing said they’re still reeling from the financial and professional damages from the fraud, according to the district attorney’s office.

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Botched home sale costs Winnipeg man his right to sell real estate in Manitoba – CBC.ca

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A Winnipeg man’s registration as a real estate salesman has been cancelled after a family vacated their home on a tight deadline for a sale that never went through, then changed brokerages and, months later, got $60,000 less for their house than what they expected when they moved out.

A Manitoba Securities Commission panel found Reginald Wayne Kehler engaged in professional misconduct and conduct unbecoming a registrant when he signed a document on behalf of sellers without their knowledge, reduced the listing price of a home without their approval, and didn’t tell them for nearly a month that a potential buyer hadn’t paid a promised $100,000 deposit.

The sellers, identified as D.R. and P.R. in the panel decision released Wednesday, were awarded $10,394 from the real estate reimbursement fund. Kehler was ordered to pay $12,075 to cover costs of the investigation and hearing.

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The sellers were a military family who had to move in 2020 after the husband was posted to Ottawa.

They chose Kehler as their listing agent, because he had helped them find the home when they moved to Winnipeg in 2018, and they had a good relationship with him, the panel’s decision says.

They  listed their house in May and on June 15, 2020, accepted an offer of $570,000 with possession on July 15. A deposit of $100,000 was to be paid within 72 hours of acceptance of the offer.

Kehler was the salesperson for both the buyer and the sellers — but the sellers say he never told them that.

A form that indicated the sellers knew he was also representing the buyer, dated June 15, 2020, was filed.

While it appeared to be signed with the sellers’ names, they said they didn’t see it until March 2021. One of the two wasn’t even in Winnipeg on June 15.

“Kehler, in his interview with commission staff, acknowledges that the sellers never signed this document — we note that the purported signatures on the form look nothing like the actual signatures of the sellers on other documents,” the decision says.

Kehler told commission staff he’d been authorized to sign on the sellers’ behalf, which they denied. The panel found them more believable.

Once the deal was made, the sellers, believing they had just a month before the buyer would take possession of their home, quickly packed up and prepared to move with their two young children.

Buyer never made deposit

Meanwhile, the buyer hadn’t made the $100,000 deposit before the deadline — but Kehler didn’t tell the sellers.

Kehler told commission staff that was because he thought the deposit was still coming, and he didn’t want to cause more stress for the sellers.

On July 10, just five days before the buyer was to take possession and the day before the family was leaving Winnipeg, the sellers spoke to Kehler — but he still didn’t tell them the deposit hadn’t been paid.

Kehler “said everything was fine,” according to the decision.

It wasn’t until the evening of July 13, when the family arrived in Toronto on their way to Ottawa and just 36 hours before the scheduled closing, that Kehler told them he’d never received the deposit.

Eventually, they received $4,000 of the deposit, but the sale of the house never closed. The sellers scrambled to extend the insurance on their old home and make sure they continued to pay the utility bills, the decision says.

Home relisted

Kehler then recommended they relist the home, and it went back on the market at $574,900.

On Aug. 10, 2020, Kehler recommended the price be reduced to $569,900. Instead, the seller said he should reduce the price to $567,900.

But when the seller looked at the online listing on Aug. 22, it was listed at $564,900.

The sellers also asked Kehler about maintaining the property, since they were no longer in Winnipeg. He agreed he would, but friends ended up going and mowing the lawn, the decision says.

The sellers asked Kehler and his brokerage about what could be done to “make things right,” the decision says, but they never received any responses.

On Sept. 5, they hired a new brokerage to sell the home. Under the new real estate salesman, they accepted an offer on Dec. 13, and closed the deal Jan. 2, 2021, receiving $507,500 for the home.

Kehler’s actions were “contrary to the best interests of the public” and undermined “public confidence in the real estate industry,” the decision says.

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