Learn how to make a more informed and confident decision by exploring these important aspects during your second visit to a potential dream home.
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Selling your home is a significant undertaking, and one question that often arises is whether hosting open houses in Toronto is worth the effort and investment. In this blog post, we’ll explore the pros and cons of open houses to help you make an informed decision about whether they are the right strategy for selling your home!
The Top 5 Pros of Open Houses:
- Exposure to a Wide Audience: Open houses attract a broad range of potential buyers, including those who might not schedule private viewings. This exposure can increase the chances of finding the right buyer for your home. The more people through the door, the better the chance of getting the most for your home.
- First Impressions Matter: Open houses allow buyers to experience your home in person, creating a tangible connection. A well-staged and inviting presentation during an open house can leave a lasting positive impression. Remember, we don’t sell like how we live… so don’t take it personally if your realtor advises clearing out personal effects.
- Feedback and Market Insights: Hosting an open house provides an opportunity to gather feedback from potential buyers. This insight can be valuable in making necessary adjustments to the price or to enhance your home’s appeal in the market.
- Sense of Urgency: Creating a sense of urgency by having specific viewing hours can motivate potential buyers to make decisions quickly, especially if they see others expressing interest in the property.
- Facilitates Networking: Real estate agents often use open houses to network and connect with potential buyers. This can lead to additional exposure for your property through word of mouth and industry connections.
The Top 5 Cons of Open Houses:
- Security Concerns: Opening your home to the public may pose security risks. While most visitors are genuinely interested in purchasing, there is a potential for theft or unauthorized access. Always have jewelry, laptops, and any other high-value items removed from the home.
- Inconvenience for Sellers: Hosting open houses can be disruptive for sellers, requiring them to vacate the premises for extended periods. Balancing privacy and the desire to showcase the home can be challenging.
- Quality of Leads: While open houses attract a wide audience, not all attendees may be serious buyers. Some people might be curious neighbors or individuals who are not financially prepared to make a purchase.
- Limited Time Frame: The limited time frame of an open house might not be sufficient for potential buyers to thoroughly explore the property. Private showings often allow for a more relaxed and detailed viewing experience.
- Effectiveness Varies: The effectiveness of open houses can vary depending on the market, location, and property type. In some cases, the return on investment may not justify the effort.
If you’re interviewing multiple realtors before choosing the right one to sell your home, ask them to outline all the processes and procedures they use to host a safe and efficient open house!
The 3 Best Tips for Maximizing An Open House:
- Effective Marketing: Promote your open house through various channels, including online listings, social media, and traditional marketing methods. Don’t discount the old-school methods of sidewalk signs and door to door marketing.
- Well-Staged Presentation: Ensure your home is impeccably staged for the open house to create a positive and memorable impression. (and yes, a tray of freshly baked cookies is always a good idea)
- Security Measures: Implement security measures to protect your property during open houses, such as removing or securing valuable items. Have your realtor keep a log of all guests and visitors
Is Having an Open House Worth it for Your Home?
The decision to host open houses when selling your home ultimately depends on various factors, including your comfort level, the local market conditions, and your specific goals. While open houses can provide exposure and valuable insights, they come with potential drawbacks. Carefully weigh the pros and cons, and consider consulting with a real estate professional to determine the most effective strategy for showcasing your home in the competitive real estate landscape.
Toronto, like many other major cities around the world, is grappling with the challenges of urban housing. As the city continues to evolve and attract new residents, policymakers are exploring innovative solutions to address the housing shortage and ensure a sustainable and vibrant urban environment. One such solution that has gained traction in recent years is the Toronto Vacant Home Tax.
Understanding the Vacant Home Tax
The Vacant Home Tax (VHT) is a policy aimed at encouraging property owners to put their vacant properties into productive use by imposing a tax on homes that remain unoccupied for extended periods. Homeowners who choose to keep their properties vacant will be subject to this tax and VERY IMPORTANT TO NOTE: residents are required to declare the occupancy status of their property every year, even if they reside there.
In Toronto, this initiative represents a proactive approach to address the housing crisis, promote community engagement, and maximize the utilization of available housing stock. Revenues collected from the Vacant Home Tax will be allocated towards affordable housing initiatives, including the Multi-Unit Residential Acquisition (MURA) program.
How to Declare Your Homes Occupancy Status
Owners of properties in Toronto that are classified within the residential property tax class are required to declare occupancy status every year and can do so by visiting the City of Torontos Vacant Home Tax Portal. You’ll also need the following:
- Assessment Roll Number, found on your property tax statement
- Customer Number, found on your property tax statement
- If applicable, documents required to show your Vacant Home Tax Exemption
The whole process will take less than 5 minutes, and can save you thousands in unnecessary taxes each year!
Fees Fines and Penalties Related to the Toronto Vacant Home Tax
If the declaration is not submitted by the specified deadline, the property will be considered vacant and will become subject to the Vacant Home Tax. Starting January 1, 2024, a fee of $21.24 will be imposed for failing to submit the declaration of occupancy status by the designated deadline.
Interest charges, amounting to 1.25 percent, will be applied to any outstanding Vacant Home Tax balance on the initial day of default and subsequently on the first day of each subsequent month until the outstanding taxes or charges are settled.
In case of payment default, the unpaid amount will be included in the property tax roll for the residential property and will be collected in the same manner as regular property taxes.
Any payments dishonored by a financial institution will incur a Dishonoured Cheque Processing/Non-Sufficient Funds (NSF) fee.
Failure to submit the declaration of occupancy status by the deadline may lead to a $250 fine. Additionally, making false declarations regarding occupancy status or failing to provide requested information may result in a fine of up to $10,000, in addition to the required tax payment.
Exemptions to the Vacant Home Tax
A property may be left vacant and be exempt from the Vacant Home Tax if one of the following criteria is met:
- Death of a registered owner – (need to show death cert.)
- Major repairs – (submit work permits and contractor receipts.)
- The principal resident is in long-term care (hospital or supportive care facility)
- Transfer or Legal ownership (what we just talked about… submit a copy of deed)
- Occupancy for full-time employment (proof of residency outside GTA and signed letter from employer
- Court order – a court order is made which prohibits occupancy of the property
Visit the City of Torontos Vacant Home Tax website for more details!
Key Features of the Toronto Vacant Home Tax
- Definition of Vacancy: The Toronto Vacant Home Tax identifies vacant properties based on specific criteria. Generally, a property is considered vacant if it is unoccupied for more than SIX MONTHS within a calendar year.
- Tax Rates: The tax rates are structured to incentivize property owners to either occupy or rent out their vacant properties. Higher tax rates are typically applied to properties that remain vacant for more extended periods, creating a progressive system that encourages swift action.
- Exemptions and Appeals: The policy also considers legitimate reasons for property vacancy, such as renovations or major repairs. Property owners can apply for exemptions, and there is an appeals process in place to address any disputes regarding the determination of vacancy.
Impact on Toronto’s Housing Landscape
The Vacant Home Tax is expected to have several positive impacts on Toronto’s housing market:
- Increased Housing Availability: By discouraging long-term vacancy, the tax aims to bring more housing units into the market, increasing the overall availability of homes for residents.
- Neighborhood Revitalization: The initiative is likely to contribute to the revitalization of neighborhoods by reducing the number of empty homes and fostering a sense of community.
- Revenue for City Services: The tax revenue generated can be used to fund essential city services and initiatives aimed at addressing housing challenges and improving the overall quality of life for Toronto residents.
Challenges and Criticisms
While the Vacant Home Tax is seen as a step in the right direction, it has not been without its challenges and criticisms. Some property owners argue that the tax unfairly penalizes them for circumstances beyond their control, such as personal or family reasons for keeping a property vacant.
Conclusion
Toronto’s Vacant Home Tax is a bold and necessary step in addressing the city’s housing challenges. By encouraging the efficient use of available housing stock, the initiative aims to create a more dynamic and inclusive urban environment. It’s important to remember that the deadline for declaring the status of your property is the last day of February and that the property status refers to the previous year’s history.
You can get more information on the latest details of tax, as well as declare the status of your home by visiting the City of Torontos Vacant Home Tax Portal.
We had another record setting month of sales in the city of Toronto with over 11,000 recorded in July!
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The month of May marked the second full month of Covid-19 lockdowns in the City of Toronto. See how each real estate segment performed during…
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The month of April marks the first full month of Covid-19 lockdowns in the City of Toronto. See how each segment performed below
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Premier Kathleen Wynne, Finance Minister Charles Sousa and Housing Minister Chris Ballard announced plans to cool Ontario’s housing market. We’ve summarized the proposed changes, and included our thoughts on how it we feel it impact the market:
Rent Control For All Tenants
Current rent controls, only apply to properties built prior to 1991 leaving many of Torontos downtown condos exempt from increase limits (currently set at the rate of inflation). The new proposals will now cover all properties regardless of when they were built.
They are also looking into unlocking provincially owned surplus lands that could be used for affordable and rental housing development and a $125-million, five-year program to encourage the construction of new purpose-built rental apartment buildings by rebating a portion of development charges.
These steps won’t really do much to add to the current lack of supply, and with the introduction of rent controls, will probably deter developers from ever actually building new rental stock.
I do think that rent controls are needed, but at rate higher than just inflation – something as simple as inflation plus 5% would result in only a $140 rate increase/month on a $2000 rental. I was hoping the Liberal government would have introduced some controls on Hydro and Heat costs to help with monthly affordability for all!
Standardized Lease Document for all Tenants
This was briefly mentioned in todays announcement – Its purpose was to ensure “illegal terms and conditions” were not included in leases. I’m not entirely sure how they plan on handling this one as the Landlord and Tenant Board already has pretty specific guidelines that cover what can and can’t be included in leases. Also, every rental provides its own unique set of challenges that require the crafting of pretty specific clauses. To have a standardized lease could leave both sides unprotected!
An Assignment Ban
The government wants to ban speculators from assigning their pre construction purchases before completion. It’s not clear how they plan on qualifying someone as a speculator vs. a buyer who’s outgrown their space before the project completes.
A typical project takes about 2-5 years to complete and in that time things can change. I’ve worked with several buyers that have outgrew their initial purchase and wanted to sell before the project closed. When buyers take this route, the often sell at less than market value, but for more than their original purchase price.
We don’t see very many properties sell by way of assignment as they are often tricky to complete and require builders approval before the sale can be finalized. Those that do sell, often sell for less than market value (which helps those trying to get into the market)- so I’m not really sure how this will help with affordability.
Speculation Tax for Non-Resident Foreigners
Several reporters at todays announcement asked the officials for data to back up the claim that foreigners are buying up all these properties – but each time the question was avoided. In reality, the government doesn’t currently collect this information. As part of todays announcements, all purchasers will now have to reveal their citizenship and where they live. Buyers will also have to disclose if the property will be used as primary residence or investment (something we already have to do when applying for a mortgage)
They also planned to introduce a 15 per cent tax on home purchases by non-resident foreigners… but of course, since they currently don’t have any real data on exactly how many foreigners are actually buying property at the moment – it’s hard to say if this actually take any competition out of the market.
Final Thoughts
I’m a bit relived that these aren’t the catastrophic changes some have speculated may happen. “This plan balances those needs to stabilize the market and prevent a sharp correction that would be harmful to everyone,” said Wynne. My take is that ultimately these measures won’t bring much change to Torontos real estate market.
If you’re a buyer, things won’t be getting any easier anytime soon. You’ll still be faced with 5-20 people bidding for your “dream home”, with or without the foreigner tax.
Sellers, the climb continues (unless you’re trying to sell an assignment). Economics 101 teaches us that this price increase is fueled by a lack of supply and a ton of demand.
Renters of properties built after 1991 who haven’t received a rent increase in the last 12 months – expect a price bump in the coming weeks.
Rise above it all at the penthouses of the Shangri-La in downtown Toronto! With the help of Kristen Duern from Chestnut Park Real Estate Limited, Brokerage and Anthony Lavignasse from Fixed Exposure, we took a tour of these super exclusive spaces to bring you inside the Penthouses of the Shangri-La!
Imagine coming home to one of four, 2 level penthouses that can only be described as something out of a fairytale… except in this story, the glass slipper is a glass and steel staircase, complete with a Boffi Italian kitchen to cook up and left over pumpkin!
Penthouse 6501 measures in at just under 5000 sq.ft (including terrace). I instantly fell in love with the white oak, chevron flooring and the triple sided gas fireplace, – bookmatched with Calacatta stone in the living room!
Living Room and Fireplace
Dining Room
Flanked between the Living and Kitchen area is the Dining Room. The open concept space opens up to the 1,500 sq.ft. outdoor terrace and is the centre focal point of the main level. My eyes were instantly hooked on the cherry blossom chandelier by Swarovski!
Kitchen and Family Room
And now for my favorite part of any home… the kitchen! This kitchen featured Boffi Italian walnut cabinetry, matching corian countertop and backsplash along with a Miele built-in coffee maker. Miele appliances were also used for the speed oven, steam oven, wall oven and gas cooktop. The Sub-Zero fridge and freezer are seamlessly integrated to match the look and feel of the space. The open concept layout spills over and into the spacious family room.
Terrace
The terrace can be accessed from both the family and dining room. At over 1500 sq.ft. the space features Basalt stone pavers, Gas BBQ with stone countertop and under counter fridge, a jacuzzi along with landscaping and even a irrigation system. One element many don’t think about when this high up is the wind! Especially in downtown Toronto, being this high can present its own set of challenges. The architects and engineers solved this by including massive glass walls, spanning nearly to floors high. The thick glass provides safety from below and gives owners use of the space, practically year round!
Upper Level
At over 1600s sq.ft. the second level can be reached by private ensuite elevator, or the gorgeous glass stair case! Upstairs is where you’ll find the three bedrooms. Each feature a variety of finishes from the white oak chevron flooring, to Calacatta heated marble and even Boffi walnut cabinetry… oh, and VIEWS!!!
Additional Features and Price
Each penthouse comes with a triple car garage, motorized sun shades, built in ceiling speakers, valet and limousine services! Penthouse 6501 is currently listed for $9,332,500 and has monthly maintenance fees of $2,878.22.