Real eState
Over 60 per cent of area condos owned by real estate investors
“It confirmed what we have believed has been a trend for the last 10 years,” said economist and Smart Prosperity Institute senior director of policy Mike Moffatt.
“Ontario, in particular, has seen a lack of purpose-built rentals. For years, investors have been buying condos and renting them to students, post-graduates and those who can’t become first-time buyers because of high home prices.
The study was based on data collected in 2020 and from the 2021 Canada Census, but Moffatt said the trend only accelerated during the COVID-19 pandemic.
A growing population, increased immigration and more international students attending Ontario’s post-secondary institutions have added to rising demand.
Also included in the study were Nova Scotia, New Brunswick, Manitoba and British Columbia.
Nova Scotia (31.5 per cent) and New Brunswick (29 per cent) had the highest percentage of investor representation. However, a significant percentage of those investors were for multiple properties that were vacant lots.
Less than two per cent of Ontario investors owned two or more vacant lots in the province.
Investors owned 23.3 per cent of all housing stock in British Columbia and 20.4 per cent in Manitoba.
In Southwestern Ontario, London followed a similar pattern to Windsor with 14.1 per cent of all homeowners being investors and 86.5 per cent of condo owners.
By comparison, Toronto’s investor ownership of condos was 36.2 per cent.
“Condos are particularly popular with investors in cities between 300,000 and 400,000 people with a high number of students in university and college,” Moffatt said.
“It makes condos a very attractive investment.”
“It’s kept rents from going up higher than they otherwise would have because there would have been even more of a shortage or rentals,” Moffatt said.
“A growing population had to be housed somewhere.”
Condominiums are particularly attractive to investors classified as businesses.
In Windsor, 45.1 per cent of all condos were owned by businesses while it was 77.9 per cent in London.
“Condos are attractive because they’re the easiest type of investment category to operate in,” said Rhys Trenhaile, CEO of Walkerville Capital investment firm and a realtor with The Vanguard Team that specializes in income-generating properties.
The additional benefits for investors are they get a tax write off as landlords, they historically enjoy real estate appreciation and the tenant pays down their mortgage.
Trenhaile added Windsor’s high percentage of investor-ownership in condos is the result a combination of factors that have built up over the years.
He said it’s common for companies, such as electrical and plumbing contractors wishing to be involved in a project, to purchase a few units in a proposed building to help the developer get enough pre-sales to secure funding to launch construction. Many choose to hold onto those units as investor income.
Then there are investors who have been attracted by Windsor’s low prices and the chance to generate larger monthly cash flows than they can from condos in the Greater Toronto Area. With no intention of residing in the building, they can wait the two years for the units to be finished.
The third factor is many people in the past who bought a condo as their first home don’t need to get the equity out of it when they’re looking for something bigger. They choose to rent their unit out as a new income stream.
“The whole process of building condos kind of encourages investor interest,” said Trenhaile, who added Greater Toronto has been the main source of outside investment in the local market for 20 years.
“Most of us can’t wait for two years for our home to be finished.”
He expects demand to only grow and admits surprise that only 12.1 per cent of all residences locally are held by investors.
“I think you’ll see that number come up given people are now allowed to create additional dwelling units on their lots,” Trenhaile said.
Moffatt said the growth of investors owing slightly more than one in five homes in Canada should be concerning. It’s creating a bottleneck on the property ladder that also impacts the rental market.
“The concentration of investors on the home ownership side is real problematic for first time buyers,” Moffatt said.
“There’s less movement in the rental market, more competition, not enough available units and rents go up. They end up competing with more investors who are attracted to the condo market because the shortage creates opportunity.”
Windsor-Essex County Home Builders’ Association vice-president Brent Klundert said speculation in the new home market has also grown locally. Such activity isn’t currently at the level seen during the heights of the COVID pandemic, but Klundert feels smart investors are just trying to time the bottom of the market before jumping back in.
“We did see an influx of out-of-market buyers,” Klundert said.
“Investors would invest in a home or townhouse bet the market would increase and they could sell the contract at a higher price before construction even finished.”
At one point, homes could increase in value during construction by more than $100,000 over the initially agreed price.
Despite the pause in investor activity, Klundert said interest in the region is still percolating. He noted the positive January numbers for new-builds contracts.
“Windsor prices are still better than the GTA, so they can enter the market easier,” Klundert said.
“The economic outlook is bright. I think there’s still money looking at this area.”
“Bigger projects are coming fast and furious because of the supply crisis,” Klundert said. “We need to speed up approvals, so we can build more and faster.”
Windsor-Essex County Association of Realtors’ president Mark Lalovich said 2023 will be a transition year, but noted the market is lagging right now compared to 2021 and 2022 for investor interest.
Lalovich said purchases in the area handled by out-of-board agents were 20 of 265 sales last month versus 105 out of 676 in November 2021.
“We know we’re not capturing all out-of-town sales, as some are handled by agents in our board, but it shows what we’re seeing right now locally,” Lalovich said.
Lalovich added local developers he’s talked to feel we’re 12 to 18 months away from seeing the market become more active and prices begin to spike again.
In Lalovich’s opinion, movement among local homeowners this year will spill into the rental market generating more turnover in both sectors.
“Investors are quiet because of the interest rates and their sensitive to rates of returns,” Lalovich said.
“Most are sitting on the sidelines waiting to see what happens.
“That helps homeowner occupants get into the market. You don’t have competing investor interest.
“It’s better for the buyer because you’re in a more relaxed environment.”
dwaddel@postmedia.com
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MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
The Canadian Press. All rights reserved.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
Real eState
Former B.C. Realtor has licence cancelled, $130K in penalties for role in mortgage fraud
The provincial regulator responsible for policing B.C.’s real estate industry has ordered a former Realtor to pay $130,000 and cancelled her licence after determining that she committed a variety of professional misconduct.
Rashin Rohani surrendered her licence in December 2023, but the BC Financial Services Authority’s chief hearing officer Andrew Pendray determined that it should nevertheless be cancelled as a signal to other licensees that “repetitive participation in deceptive schemes” will result in “significant” punishment.
He also ordered her to pay a $40,000 administrative penalty and $90,000 in enforcement expenses. Pendray explained his rationale for the penalties in a sanctions decision issued on May 17. The decision was published on the BCFSA website Wednesday.
Rohani’s misconduct occurred over a period of several years, and came in two distinct flavours, according to the decision.
Pendray found she had submitted mortgage applications for five different properties that she either owned or was purchasing, providing falsified income information on each one.
Each of these applications was submitted using a person referred to in the decision as “Individual 1” as a mortgage broker. Individual 1 was not a registered mortgage broker and – by the later applications – Rohani either knew or ought to have known this was the case, according to the decision.
All of that constituted “conduct unbecoming” under B.C.’s Real Estate Services Act, Pendray concluded.
Separately, Rohani also referred six clients to Individual 1 when she knew or ought to have known he wasn’t a registered mortgage broker, and she received or anticipated receiving a referral fee from Individual 1 for doing so, according to the decision. Rohani did not disclose this financial interest in the referrals to her clients.
Pendray found all of that to constitute professional misconduct under the act.
‘Deceptive’ scheme
The penalties the chief hearing officer chose to impose for this behaviour were less severe than those sought by the BCFSA in the case, but more significant than those Rohani argued she should face.
Rohani submitted that the appropriate penalty for her conduct would be a six-month licence suspension or a $15,000 discipline penalty, plus $20,000 in enforcement expenses.
For its part, the BCFSA asked Pendray to cancel Rohani’s licence and impose a $100,000 discipline penalty plus more than $116,000 in enforcement expenses.
Pendray’s ultimate decision to cancel the licence and impose penalties and expenses totalling $130,000 reflected his assessment of the severity of Rohani’s misconduct.
Unlike other cases referenced by the parties in their submissions, Rohani’s misconduct was not limited to a single transaction involving falsified documents or a series of such transactions during a brief period of time, according to the decision.
“Rather, in this case Ms. Rohani repetitively, over the course of a number of years, elected to personally participate in a deceptive mortgage application scheme for her own benefit, and subsequently, arranged for her clients to participate in the same deceptive mortgage application scheme,” the decision reads.
Pendray further noted that, although Rohani had been licensed for “a significant period of time,” she had only completed a small handful of transactions, according to records from her brokerage.
There were just six transactions on which her brokerage recorded earnings for her between December 2015 and February 2020, according to the decision. Of those six, four were transactions that were found to have involved misconduct or conduct unbecoming.
“In sum, Ms. Rohani’s minimal participation in the real estate industry as a licensee has, for the majority of that minimal participation, involved her engaging in conduct unbecoming involving deceptive practices and professional misconduct,” the decision reads.
According to the decision, Rohani must pay the $40,000 discipline penalty within 90 days of the date it was issued.
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