Toronto Income Property Newsletter: July 2015
Happy Canada Day everyone. I hope you all take some time out to do something fun today and celebrate that we are in the greatest country in the world. We are very fortunate to live in a city like Toronto, despite our sports teams and the impending Pan Am Games traffic chaos.
The real estate market traditionally slows up a touch in July and August although properties that show well continue to sell in multiple offers as they have done so for most of this year thus far. Properties with rental offset or profit potential continue to be desirable for investors and live-in folks even more.
2015 Mid-year Income Property Report
Since we are half way through the year I’d like to present my income property statistics for the first six months of 2015. This data is all pulled from MLS and includes all properties that have sold with three or more kitchens, thus being deemed to have some sort of income-generating component. This does not count duplexes or houses with basement apartments. Here are some selected
Toronto neighbourhoods – see how your area is doing compared to other parts of the city.
Number of trades by area:
- Toronto Downtown (C01): 31 – Average Sale Price: $1,132,222
- Annex (C02): 15 – Average Sale Price: $1,350,640
- Cabbagetown (C08): 6 – Average Sale Price: $1,476,000
- Rosedale (C09): 1 – Average Sale Price: $1,750,000
- Riverdale (E01): 8 – Average Sale Price: $1,002,725
- Beaches (E02): 13 – Average Sale Price: $1,183,869
- High Park (W01): 18 – Average Sale Price: $1,345,399
- Bloor West Village (W02): 23 – Average Sale Price: $984,622
Note how the average sales prices in all but one of the above districts are over a million dollars. We know that detached homes on the GTA are over a mil and we can add triplexes and multiplexes to that list as well.
Electronic Signatures now permitted on Real Estate Agreements
The Ontario Real Estate Association (OREA) has announced that as of today, electronic signatures may be used by real estate agents and consumers on real estate agreements of purchase and sale. The change comes after a long lobbying campaign led by OREA that urged the provincial government to amend the Electronic Commerce Act, 2000 (“the ECA”) to remove an exclusion of real estate agreements of purchase and sale. The Ontario Attorney General, made the announcement in Ottawa this week. OREA President Patricia Verge participated in the news conference and discussed what great news this change will mean for agents and consumers in Ontario. The ECA provides that a contract or other legal document will not be invalid simply because it is in an electronic form, provided a number of requirements are met. Since its enactment, however, the ECA has excluded documents that create or transfer interests in land and require registration to be effective against third parties, such as agreements of purchase and sale for land. On July 1, 2015, the ECA is amended to include documents that create or transfer an interest in land, specifically including agreements of purchase and sale of land. Other affected documents would normally include such documents as mortgages and leases and others.