Toronto Income Property Newsletter: May 2011

First off, I’d like to wish a Happy Mother’s Day to all our moms out there.

The Toronto income property market continues to roll along in full swing. Sales of duplexes and triplexes have been brisk, especially the properties in key areas close to the subway lines and prominent retail strips. Cap rates are still hovering in the low to mid five range and properties in many cases are still holding back offers and often selling for over the asking price. Expect this to continue throughout May and potentially into the summer months.

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With the weather getting nicer, many of us undertake spring cleaning and small renovation projects at this time of year. As a landlord you are always responsible for keeping your rental suites in a state of good repair. This is often the time to make cosmetic interior improvements (paint, replace light fixtures, etc.) and do a general clean-up of any lingering maintenance items. I personally am finally embarking on cleaning up and refinishing my basement.

A lot of times my clients ask how much kitchen and bathroom renovations may run. Obviously, there is no definitive answer as the price will vary based on the quality of the finishings and individual room components. I recently found this chart that listed many common jobs that we often need to get done, courtesy of The Ontario Contractors Database. (www.ontariocontractors.com). This is a great website by the way for general construction tips and information.

Interior Renovations

Remove old plaster & install drywall $2.50 -5.00 sq.ft.

Install drywall over exiting plaster $1.50 – 3.00 (board) sq.ft.

New Plaster $8.00 – 11..00 sq.ft.

Install drywall in an unfinished area -supply and install/no insulation $7.00 – 9.00 sq.ft. floor space/.14 sq.ft. board

Texture spray ceiling $1.00 – up sq.ft.

* New house construction- 080 sq.ft. board -board, mud/tape, labour only.

Suspended Ceiling Tile Installation $2.50 – 6.00 sq.ft.

Acoustic Ceiling Tile Installation $1.50 – 5.00 sq.ft.

Sand & Finish existing wood floors $2.00 – 4.00 sq.ft.

Wood floor installation $5.50 – 12.00 sq.ft.

Ceramic Tile – Supply & install $10.00 – up sq.ft.

Ceramic Tile – labour only $5.50 -8.00 sq.ft.

Underlay – installation only $1.50 -2.00 sq.ft.

Vinyl floor tiles – supply & install $2.00 – up sq.ft.

Vinyl sheet flooring/linoleum $6.00 – up sq.yd.

Carpet – synthetic $15.00 – up sq.yd.

Carpet – natural wool $50.00 – up sq.yd.

Carpet – underpading $5.00 – up sq.yd.

Carpet – cleaning/steam/chemical $30.00 – up per room

Windows-replacement – 1,800 sq.ft. house $10,000.00 approx.

* amount may vary depending upon the situation.

Windows – sliders, casement, awning, doublehung – installed $140.00 – up

Windows – fixed, bay, bow, round – installed $1,200.00- up

Doors – exterior, insulated,metal $750.00 – up

Doors – exterior, solid wood $850.00 – up

Doors – exterior, fibreglass $900.00 – up

Doors – exterior, double, insul., metal $1,200.00 – up

Doors – exterior, double, solid wood $1,500.00 – up

Doors – exterior, double, fibreglass $2,000.00 – up

Replace entrance door latch & lock set $150.00 – up

Install decorative glass in entrance door $500.00 – up

New Storm door $450.00 – up

Install patio doors – brick wall $2,500.00 – up

Install patio doors – wood frame wall $2000.00 – up

Replace existing patio doors $1000.00 – 2000.00

Install basic skylight $1,000.00 – up

Install venting skylight $1,500.00 – up

Fireplace – Masonry $2,500.00 – up

* Note: Ont. Building Code for new house construction may require CO detector & fresh air exchanger ($2,500.00 – up) for wood burning fireplaces-gas does not require this.

Fireplace – Zero clearance $2,000.00 – up

Fireplace – Natural Gas $2,300.00 – up

Glass fireplace doors $250.00 – up

Install Fireplace damper $250.00 – up

Chimney cleaning $200.00 – 375.00

Video Chimney inspection $250.00 – up

Video Plumbing inspection $150.00 – up

* Video inspections start at $110/hr – plumbing, chimney – whatever the case.

Interior door – hollow core, hardware incl $150.00 – up

Interior door – solid core, hardware incl. $400.00 – up

French doors $600.00 – up

Bifold doors $75.00 – up

Louvred Bifold doors $150.00 – up

Sliding closet doors $200.00 – up

Sliding mirror closet doors $350.00 – up

Kitchen renovation – full $7,000.00 – up

Kitchen Cabinets – replace $150.00 – up lin.ft.

Kitchen counter – replace $25.00 – up lin.ft.

Stove fan-venting outside $475.00 – up

Ceiling fan – installed $200.00 – up

Painting – interior – whole house $1,500.00 – up

Wallpaper – hanging $2.00 – up sq.ft.

Central vacuum system $800.00 – up

Security System – you own $600.00 – up

Remember to keep your receipts as any improvement charges are capital items and do go against your capital gains if you were to sell in the future. Also, keep a receipt for all maintenance items as they will be allowable deductions on your income statement for the year.

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The Toronto Real Estate Board reported 9,262 sales of single family homes in March 2011. This sales volume represents a 48 percent increase over the sales volume for February 2011 as well as an 11 percent decline from the record breaking sales volume reported for March 2011.