Welcome friends, today were will try to unravel the financial implications of condo vs freehold ownership. There is always confusion when we meet clients,  which is better and what it takes for owning these two diverse style of assets. Lets begin.

Condo Ownership: Long-Term Financial Implications

Maintenance Fees:

Condo owners pay monthly maintenance fees to cover shared amenities, building upkeep, and contributions to the reserve fund. These fees can increase over time due to inflation or unexpected repairs, as seen in the GTA where fees rose by 5.51% in 2023. Special assessments may also arise, requiring additional payments for major repairs or budget shortfalls.

Lower Upfront Costs:

Condos are often more affordable upfront compared to freehold properties, making them attractive for first-time buyers 14.

Predictable Expenses:

Maintenance fees provide predictability for shared expenses like utilities, landscaping, and building repairs, reducing the need for individual planning. However, these fees can offset the lower property taxes typically associated with condos.

Appreciation Potential:

While condos appreciate over time, their growth may be slower than freehold properties due to additional costs like maintenance fees and potential buyer hesitations about rising fees. This filters the buyers when we decide to dispense a condo, and it finally reflects in the appreciation. 

Freehold Ownership: Long-Term Financial Implications

No Maintenance Fees:

Freehold owners avoid monthly maintenance fees but are fully responsible for all property upkeep, including repairs and landscaping. This can lead to higher out-of-pocket costs over time. Maintenance costs for freehold homes can average $6,500–$10,000 annually for major repairs spread across decades (e.g., roof, windows, heating and cooling equipment etc).

Higher Upfront Costs:

Freehold properties generally require a larger initial investment but offer greater long-term value due to full ownership of both the land and the property.

Greater Appreciation Potential:

Freehold properties tend to appreciate more significantly over time because land value typically increases faster than building value. This makes freehold ownership a stronger option for long-term wealth accumulation.

Flexibility and Control:

Freehold owners have full control over their property without restrictions from condo boards or shared governance. This autonomy allows for renovations or upgrades that can further enhance property value.

Key Takeaways

Condos: Offer lower upfront costs and predictable shared expenses but come with rising maintenance fees and occasional special assessments that can impact long-term affordability.

Freeholds: Require higher initial investment and ongoing maintenance costs but provide greater appreciation potential, flexibility, and financial independence.

Which Is Right for You?

The choice between condo and freehold ownership depends on your financial goals, lifestyle preferences, and ability to manage ongoing costs. If you value convenience and shared amenities, a condo might suit you better. If long-term growth and full control are priorities, you have budget, a freehold property is likely the better option.

For personalized advice tailored to your situation, feel free to reach out and we will be happy to help. 

Wish you all the very best! Reach out to our dedicated team at Elixir with any queries you have about real estate, and we will do our best to help.

Mudit Mehta 

Broker of Record

ELIXIR REAL ESTATE INC.

Welcome! Today, we’re discussing one of the most debated topics in real estate: What's more important when buying a home - location or size? This age-old dilemma has puzzled homebuyers for generations, often, when I work with clients, this question is asked, and I thought it would be good to create a vlog on this.

Why Location Matters

Let's start with the classic real estate mantra: "Location, location, location." There's a reason this phrase is repeated so often in the industry.

Property Value: A home's location is often the most important factor in determining its value. A great neighbourhood can help sell your home faster and for more money than similar houses in less attractive areas.

Quality of Life: Your home's location affects your overall quality of life, including school choices, commute times, and social opportunities.

Future Appreciation: Homes in desirable locations tend to appreciate more over time. As demand for a location increases, so does the property value.

Key Location Factors

When considering location, keep these points in mind:

Centrality: Cities with limited room for expansion, like Toronto, often have higher property values.

Amenities: Proximity to grocery stores, restaurants, entertainment, recreation centres, libraries, parks, trails and public transportation can significantly impact a home's value.

School Districts: Even if you don't have children, the quality of local schools can affect your home's value.

Safety: Low crime rates make neighbourhoods more desirable and can increase property values.

Future Development: Plans for new schools, hospitals, or commercial areas can improve property values in the future.

The Argument for Size

Now, let's look at why size matters in home buying.

Growing Families: If you're planning to start or expand your family, a larger home provides the space you need.

Entertaining: More space means more room for hosting guests and social gatherings.

Work from Home: With the rise of remote work in recent times, extra space for a home office can be critical for a family.

Storage: Larger homes offer more storage options, which can be a significant advantage for many buyers.

Size Considerations

Larger homes typically cost more, not just in purchase price but also in maintenance, utilities, and property taxes.

While size does affect value, it's not always proportional. A well-designed smaller home in a great location might be more valuable than a larger home in a less desirable area.

The Verdict: Location vs. Size

While both location and size are crucial factors in home buying, location often edges out size in terms of long-term value and lifestyle impact. However, the best choice for you will depend on your specific needs, budget, and future plans. Let’s explore some finer points,

Flexibility: You can always renovate or expand a home, but you can't change its location.

Long-term Value: Location tends to have a more significant impact on long-term property value.

Lifestyle Fit: Consider your daily life and what matters most to you - proximity to work, schools, or amenities versus having more space at home.

Remember, a home is more than just an investment - it's where you'll build your life. So, consider both factors carefully, but don't be afraid to follow your heart a little too!

That's all for today, folks! If you found this information helpful, don't forget to like, subscribe, and share your thoughts in the comments below. Take good care and I will see you soon!

Wish you all the very best! Reach out to our dedicated team at Elixir with any queries you have about real estate, and we will do our best to help.

Mudit Mehta 

Broker of Record

ELIXIR REAL ESTATE INC.

Hello everyone, Today, we're diving into some exciting news that’s probable to shake up the real estate market here in the Greater Toronto Area. The Bank of Canada has just cut interest rates by 50 basis points. But what does this mean for you as a buyer, seller, or investor? Let's break it down!"

On October 23, 2024, the Bank of Canada lowered its key interest rate to 3.75%, marking the fourth consecutive cut since June. This move is aimed at boosting economic growth and easing inflation, which recently fell to 1.6%—back in line with the central bank's target.

Impact on Buyers

So, what does this mean for homebuyers? Well, lower interest rates generally translate to reduced borrowing costs. This could be a golden opportunity for those with variable-rate mortgages, as their payments might decrease in the coming months. Plus, if you're considering a fixed-rate mortgage, keep an eye out—rates might drop further if market conditions continue to improve.

For first-time buyers, this rate cut combined with new mortgage rules—like increased price caps for insured mortgages and extended amortization periods—could make homeownership more accessible. It's a promising time to explore your options!

Impact on Sellers

Now, let's talk about sellers. With lower interest rates potentially increasing buyer demand, we might see more activity in the market. However, it's important to note that while demand may rise, the prices would need to be within reason to generate traction as the market has lot of inventory already.

If you're thinking about selling and have urgency, this could be a strategic time to list your property as more buyers enter the market looking for opportunities with this cut. If your situation allows you to wait, then 3-4 months wait for the Spring time could be well worth it, with couple of more cuts impending and busier Spring market. If you are in a move-up situation, it would be better to list it at the earliest, to make more benefit on the higher priced buy side due to the slow market.

Market Dynamics

The GTA housing market is currently experiencing a surge in new listings—up 35% from last year—which has pushed inventory levels to their highest since November 2008. This means buyers have more options and negotiating power, making it crucial for sellers to price competitively. Despite this influx, prices have seen moderate declines when you consider yearly numbers. The average home price in September was down just 1.1% from last year. This stability indicates a balanced market where both buyers and sellers can find opportunities.

In September alone, home sales in the GTA rose by 8.5% year-over-year, indicating that buyers are already beginning to take advantage of more favorable market conditions.

In summary, this rate cut is likely to stimulate more activity in the GTA real estate market. Whether you're buying or selling, staying informed and prepared is key. As always, consult with your real estate professional to navigate these changes effectively.

Wish you all the very best! Reach out to our dedicated team at Elixir with any queries you have about real estate, and we will do our best to help.

Mudit Mehta 

Broker of Record

ELIXIR REAL ESTATE INC.

Today I want to share some big news that could affect many Canadian homeowners. The Office of the Superintendent of Financial Institutions, or OSFI, has just announced a significant change to mortgage stress test requirements. Let's break down what this means and why it matters.

The Big Announcement

On September 25, 2024, OSFI revealed that it will no longer require borrowers with uninsured mortgages to undergo a stress test when switching providers at renewal. This is a major shift in policy that could have far-reaching implications for the Canadian housing market.

What is the Mortgage Stress Test?

Before we dive into the changes, let's quickly recap what the mortgage stress test is:

Introduced in 2018, the stress test requires borrowers to qualify for a mortgage at a higher interest rate than their actual rate.

The qualifying rate is the higher of 5.25% or the contract rate plus 2%.

This test aims to ensure borrowers can handle their mortgage payments if interest rates rise significantly. Stress guidelines introduced in 2012, initially only for those with less than 20% down payment. In 2018 Stress test was expanded to all mortgages, insured as well as uninsured.

Under the existing rules:

Borrowers with uninsured mortgages (those with a down payment of 20% or more) must pass the stress test when switching lenders at renewal. This has often made it challenging for homeowners to shop around for better rates, potentially trapping them with their current lender.

The Change:

Now, here's what's changing:

OSFI will eliminate the stress test requirement for "straight switches" of uninsured mortgages. A straight switch means renewing with a different lender but keeping the same loan amount and amortization schedule. This change will take effect on November 21, 2024.

Why the Change?

OSFI cites two main reasons for this policy shift:

Addressing the imbalance between insured and uninsured mortgages at renewal. The uninsured mortgages are allowed to switch lenders upon renewal, whereas consumers with uninsured mortgages where they have in fact have 20% or more as their contribution towards the property had to go through the stress test on switches.

The second reason is the data showing that the risks this policy was meant to address haven't significantly materialized.

Impact on Homeowners: A Practical Example

Let's consider a practical example to illustrate the impact of this change:

Imagine a homeowner, Jane, who bought a house in 2019 with a $500,000 uninsured mortgage at 3% interest. Her monthly payments were about $2,366.

Fast forward to 2024, and Jane’s mortgage is up for renewal. Current rates have risen to 5.5%.

Under the old rules: If Jane stayed with her current lender, she wouldn't need to pass the stress test. If she wanted to switch lenders, she'd need to qualify at 7.5% (5.5% + 2%). This made it difficult for Jane to shop around, even if other lenders offered better rates.

With the new rules:

Jane can now switch lenders without the stress test, as long as she maintains her original loan amount and amortization. This gives her the freedom to find the best rate available, potentially saving thousands over her mortgage term.

Broader Implications

This change could have several effects on the Canadian mortgage market and would see increased competition among lenders. There would be more options for borrowers at renewal time. Potential for lower mortgage rates as lenders compete for business. There could be a possible increase in refinancing activity as homeowners take advantage of the new rules.

While this is a significant change, it's important to remember that the overall goal of financial stability remains. OSFI has stated they'll continue to monitor the market and make adjustments as needed.

This change represents a major shift in Canadian mortgage policy, potentially offering more flexibility and better options for many homeowners. As always, it's crucial to stay informed and consider your individual financial situation when making decisions about your mortgage.

Wish you all the very best! Reach out to our dedicated team at Elixir with any queries you have about real estate, and we will do our best to help.

Mudit Mehta 

Broker of Record

ELIXIR REAL ESTATE INC.

Welcome back, Elixir Family! Today, we’re going to look into some ground-breaking changes in Canadian mortgage rules that are set to reshape the home-buying landscape. These updates are not just minor tweaks; they're the most significant reforms we've seen in over a decade. So, let's break it down and see what this means for you, especially if you're a first-time homebuyer.

Historical Context

Before we jump into the exciting changes, let’s rewind back to understand the impact of these new regulations. Back in 2006, you could get an insured mortgage with a 40-year amortization period. Imagine that! But things changed and in 2008 we saw it drop to 35 years. 2011 brought it down to 30 years. And in July 2012, we hit the 25-year mark, which has been the standard until now, i.e. 2024.

Also in 2012, the government capped insured mortgages at $1 million. Despite skyrocketing home prices specially since 2015, this cap hasn’t changed... until now.

Now, let's talk about what are the new big changes and when it's happening:

Extended Amortization Periods

As of August 1, 2024, first-time homebuyers can already access 30-year amortizations for newly built homes. This is huge for those eyeing fresh developments!
Mark your calendars for December 15, 2024. That's when 30-year amortizations expand to all first-time buyers, whether you're looking at a new build or a amazing resale opportunity.

Let us try to understand with an example: if you take a mortgage for principal of $800,000 from financial institution, say with a fixed term of 3 years at 4% rate and amortization of 25 years, the mortgage amount will come at $4,208 per month. With the new rules and for same figures, if we just alter the amortization to 30 years, the mortgage commitment per month would reduce to $3,804.

Increased Insured Mortgage Cap

Effective December 15, 2024, the insured mortgage cap jumps from $1 million to $1.5 million. Or in other words we have reduced minimum down payment requirement for homes priced between $1M and $1.5M. This is a significant change, especially in our pricier markets. Buyers can now look at homes between $1 million and $1.5 million with less than a 20% down payment. This opens up a whole new segment of the market for many buyers. Significantly reduces the upfront cost of buying a home in these price ranges. Right now the buyers were just limited to sub-million purchases due to this restriction on insured mortgages.

Overall, these changes are expected to benefit first-time homebuyers in several ways:

Lower monthly payments: The extended amortization periods can reduce monthly mortgage payments, making it easier to afford a home.  

Increased affordability: The increased insured mortgage cap and reduced minimum down payment requirements can make homeownership more accessible in high-cost housing markets.  

Greater flexibility: The changes provide more flexibility for first-time homebuyers in terms of the size of the home they can afford and the down payment they need to save.

Potential Market Impact

    1    Increase Competition While these changes are exciting, they could have broader effects on the market: Increased Demand: We might see more buyers entering the market, potentially increasing competition. 

    2    Price Pressure: This could put upward pressure on home prices, especially for in-demand metro markets like Toronto, Vancouver, Montreal, Calgary, Ottawa etc. 

    3    Market Stimulation: These changes could energize the market which was developing lot of fatigue in terms of buyers sentiments for good 2 years plus now, possibly leading to more construction and development. 

It's important to approach these changes with a balanced perspective: Longer amortization periods mean more interest paid over time. The potential for increased demand could offset some affordability gains as it might lead to increase in property prices.

As we wrap up, I want to say that these reforms represent the most significant changes to Canadian mortgage rules in over a decade. They're designed to make homeownership more accessible, but they also come with considerations that need careful thought. At Elixir Real Estate, we're here to help you navigate these changes. Whether you're ready to jump into the market or just starting to consider homeownership, we can guide you through the process and help you make informed decisions.

Wish you all the very best! Reach out to our dedicated team at Elixir with any queries you have about real estate, and we will do our best to help.

Mudit Mehta 

Broker of Record

ELIXIR REAL ESTATE INC.

Hello everyone, and welcome back to Elixir Talks! Today, we're addressing a common dilemma that many homeowners face when selling their property: Should you price your home competitively or slightly higher to attract offers? Let's review into the pros and cons of each approach to help you make an informed decision."

First, let's talk about pricing your home competitively. This strategy involves setting a price that is in line with or slightly below the current market value of similar homes in your area. Here are some benefits of this approach:

 Attracts More Buyers: A competitive price can generate more interest and increase the number of potential buyers viewing your property. This can lead to multiple offers, driving up the final sale price. I always say that a well presented property will automatically bear its price in the given market and attract a credible buyer.

 Sells Faster: Homes priced competitively tend to sell more quickly because they attract serious buyers who recognize the value. This reduces the time your home sits on the market, which can be advantageous in a dynamic market.

 Avoids Price Reductions: By pricing your home competitively from the start, you minimize the risk of having to reduce the price later. Frequent price reductions can make buyers skeptical and less likely to make an offer.

Now, let's consider the strategy of pricing your home slightly higher than market value. This approach can also have its advantages:

 Room for Negotiation: Pricing slightly higher gives you some wiggle room to negotiate with buyers. It allows you to accommodate offers that come in below your asking price while still achieving a satisfactory final sale price.

 Perceived Value: Some buyers may perceive a higher-priced home as being of higher quality or having more desirable features. This can attract buyers who are willing to pay a premium for what they believe is a superior property.

 Targeting Specific Buyers: Pricing slightly higher can target a different segment of buyers who are looking for a certain price range. This can be effective if your home has unique features or amenities that justify a higher price. If your property has substantial updates, it could very well work if those updates are reflected well in the marketing material.

However, it's important to be aware of the risks associated with overpricing your home:

Fewer Showings: An overpriced home can deter potential buyers from scheduling showings. They may view it as out of their budget or not worth the asking price, leading to less traffic and fewer opportunities to sell.

Longer Time on Market: Homes that are overpriced tend to sit on the market longer. The longer a home sits, the more it can develop a sentiment in the prospects, making buyers wonder if there's something wrong with the property.

Potential Price Reductions: Ultimately, you may need to reduce the price if your home doesn't attract offers. Multiple price reductions can make buyers think you're desperate to sell, which can result in even lower offers.

So, should you price your home competitively or slightly higher? The answer depends on various factors, including your local market conditions, the unique features of your home, and your selling timeline. Here's a balanced approach to consider:

 Market Analysis: Work with a knowledgeable real estate agent to conduct a thorough market analysis. Understand the comparable sales in your area and the current demand to set a realistic price range.

 Highlight Unique Features: If your home has unique or desirable features that justify a higher price, make sure they are prominently highlighted in your marketing materials and during showings.

 Flexibility: Be prepared to adjust your pricing strategy based on feedback and market response. Flexibility can help you find the sweet spot that attracts serious buyers while achieving your financial goals.

To recap, whether you choose to price your home competitively or slightly higher, understanding the pros and cons of each approach is key. At Elixir Real Estate, we're here to guide you through every step of the selling process, ensuring you make the best decision for your unique situation. If you have any questions or need personalized advice, don't hesitate to reach out to our team. Thanks for watching, and be sure to like, share, and subscribe for more real estate tips and insights. See you next time on Elixir Talks!

Wish you all the very best! Reach out to our dedicated team at Elixir for any queries you have in Real Estate, and we will do our best to help.

Mudit Mehta 

Broker of Record

ELIXIR REAL ESTATE INC.

Welcome back, friends! Today, we will start a two-part series exploring the basic forms of appreciation in real estate. We'll start with a market appreciation or natural appreciation, using real-life examples from the Greater Toronto Area to enrich our understanding of this topic.

Market appreciation refers to the organic growth a real estate asset undergoes over time, influenced purely by market forces. Let's examine the factors that impact the growth of an asset:

Inflation

Inflation is a primary driver of market appreciation in real estate. As the cost of services, goods, materials, and labour rises, so does the value of real estate assets. They become costlier to rebuild over time. This natural hedge against inflation makes real estate an excellent investment vehicle. As the perceived value of the asset is bound to rise with inflation dynamics. This reason alone make Real Estate a great investment vehicle as it provides an inbuilt inflation hedge.

Rental Rates

With the advent of time and inflation, the purchasing power of money decreases with time. The Rental rates increase and they are a second big reason which drives up the value of a Real Estate Asset. For an investor along with the monthly appreciation which happens in the asset due to inflation, they get to benefit from the rental payments to pay up their mortgage commitments. The principal repayment part in the mortgage increases their equity in the asset month over month. The increase in the rental prices, definitely helps the property appreciate.

Economic Growth

In good and progressing economies with the rise in inflation, there is also movement in terms of economic growth. New jobs and industry sectors are established pushing the economies which indirectly makes the Real Estate assets appreciate with the economic stimulus. More jobs mean higher income levels, which bolsters consumer confidence and ultimately leads to growth in the Real Estate sector.

Infrastructure Development

Properties in metro areas or regions anticipating significant infrastructure investment typically see greater market appreciation. Easy access to highways and public transit can significantly influence an area's growth compared to regions with less developed infrastructure. After spending almost a decade in real estate, I can confirm that 'location' is indeed critical to natural growth.

Population Growth

In a place like the Greater Toronto Area, there is a lot of population growth in the form of immigration which takes place in Canada. And GTA being the biggest job market in Canada, which makes a lot of net new people choose to live in such regions. This population growth is very simply put directly proportional to market appreciation. Another reason Location plays a key role is that population growth will be centred around in-demand locations where job opportunities and chances of growth for a newcomer are abundant.

Supply Constraints

Supply constraints are another reason price growth happens in Real Estate. If you observe major municipalities like Mississauga, Burlington, Richmond Hill and Brampton, their landscape doesn’t allow for more sub-divisions as already they are saturated with constructions to the boundary of these towns. When the land is saturated, and the market forces keep the area in demand. The progression of time makes the prices increase due to this saturation in the land development; as there is limited supply of new development. 

Government Policies and Interest Rates

Any government or municipality should be instrumental to make it easier for first-time home buyers and investors in form of tax breaks and incentives. These policies help sustain the buy/sell of the assets and increase their demand, which pushes the appreciation. Schemes like First-time home buyer RRSP Advantage allow prospective homeowners to leverage interest-free money from their RRSP savings. There are couple of other policies like the Land Transfer Tax Credit on the first home for $4,000, or the First time home buyer tax credit. All of these policies help flourish and promote home ownership. 

Federal bank's interest rate policy changes are another major factor. They can go either way, as you would have noticed the historically lower interest rates in the Covid-times pushed the prices way above, and then the tightening of borrowing rates in 2022/2023 also brought them down. The fine balance of interest rate policy changes and the market prices continue. In the short term, they are inversely proportional. However, in the longer term with the above other reasons we laid down, the inflationary pressures, drive up the asset prices in a growing economy.

Real World Case-Study

Let us now consider an example where we can understand how natural appreciation can come into play. For this case study, I have chosen detached 2-storey single garage dwellings in couple of municipalities across GTA that got sold in June of 2010. The next step is to determine their median sold price and then look at the median sold price for similar categories of properties in June of 2023.  I have chosen this 13-year duration as it covers the highs/lows we observed in the 2017 market and similar occurrences we observed in the first quarter of 2022. 

This tabulation highlights the power of Market Appreciation in the Greater Toronto Area, just by virtue of the growing population base here in the GTA, booming economic considerations in the last 13 years overall, and sustained employment opportunities, all these have a combined reflection on the market prices. 

Based on the data we can safely say that GTA had almost ~200% of natural appreciation due to these factors and after surviving two market downturns, and this is all organic growth and ‘market appreciation’ in action. In the next episode I will continue our discussion to the second type of appreciation which is ‘Forced Appreciation’ the factors involved there and how it takes place in Real Estate. It would be an interesting one and will completion our discussion on the topic of appreciation. 

Wish you all the very best! Reach out to our dedicated team at Elixir for any queries you have in Real Estate, and we will do our best to help.

Mudit Mehta 

Broker of Record

ELIXIR REAL ESTATE INC.

Hello friends, In the bustling world of real estate, where first impressions are not just important but everything, the role of professional photography in listing a property on the MLS cannot be overstated. Let's find out why it is like that.

First Impressions are the Key

First impressions are very important in Real Estate Selling and a lot of time I see amateur photos taken by smartphones with bad camera angles and inferior composition. The lighting is way off and gives a neutral to negative impression of the property. 

When you list a property for sale on the MLS system, our responsibility as a Seller is to get maximum traction on the listing in terms of showings. This is to make it a point that we have a decent count of broker showings who are working with sincere buyers. Because, unless a showing happens, there is no probability of them getting an offer on the table for purchase. 

The photos, videos and marketing content come at the front end of this cycle, where the photos result in credible buyers being excited about the property. As a result, they ask their brokers to reserve an appointment and arrange for a showing. The photoshoot plays a very important part in the scheme of things and is the first step to a successful sale.

Another reason I want to bring to your notice and it would resonate with you. Suppose the photo shoot for a listing is not done professionally. In this case, it would not attract quality and sincere buyers, at best it would attract less motivated buyers who are looking to buy with low-balling offers.

Good quality and professionally done photography would have a three-fold result. It would help you achieve the fair market value of your property, which you deserve. Secondly, it would help in smooth selling and the listing would not stay on the market and get stale. Lastly, it would help the listing to stand out from the competition, the higher the quality, the more attraction it will generate. Rest would totally depend on the prevailing market conditions, things which are in our control when listing a home should be taken care. 

Photography - The Right Way

The photography should be done by a professional photographer who would bring in their skills to do justice to the property and its fair representation. The ideal times for such shoots are during the morning or early evening hours, avoiding the harsh, overexposed light of midday. Prior to the shoot, staging and decluttering are essential steps to ensuring your home looks its absolute best.

Ensure to feature the highlights of the property in the photography, it could be the high-ceiling foyer feature, the skylight illuminating the upper landing space, or the expansive primary ensuite, or it could be the recent stone interlocking which you did in the driveway and backyard. The unique features like the in-ground pool in the backyard, spacious upper floor hallway with a character, premium tray ceilings or crown moulding works in the living room, landscaped backyard, the list goes endless. Take stock of the highlights of your property and ensure they are captured during the photo shoot. It would enhance the marketability of the property. 

In closing, photography in real estate is not merely an optional selling tool; it is a fundamental component that elevates the professionalism of your listing and enhances the overall selling experience. By ensuring your property is represented in the best possible light, you not only attract the right buyers but also set the stage for achieving the value your property truly deserves. Should you require assistance in navigating the complexities of real estate, our team is here to offer the unparalleled "Elixir" experience. Take care, and we look forward to connecting with you soon.

Wish you all the very best! Reach out to our dedicated team at Elixir for any queries you have in Real Estate, and we will do our best to help.

Mudit Mehta 

Broker of Record

ELIXIR REAL ESTATE INC.

Welcome everyone, today I am going to tell you the top 5 things you can do which are cost-effective and which will enhance the appeal of your listing. This will make the whole Home Selling Process more rewarding and smooth! Let's get started. 

Selling a home is a detailed task that, with the right preparation, can be immensely rewarding. Given that selling a home isn't an everyday occurrence, seizing the opportunity to maximize its value is key. Here are some budget-friendly updates that can truly make your property stand out:

Painting Your Home

Applying a fresh coat of paint in neutral tones is the most effective way to instantly freshen up your home, making it appear modern and well-cared-for. This eliminates any signs of wear and odours, offering a clean slate to potential buyers. I've noticed that properties we've painted before listing often exceed expectations in the final sale. Don't miss painting your front and garage doors as well; it's a small change that can dramatically boost curb appeal as buyers approach.

Smooth Ceilings

If your budget allows, transforming stippled or popcorn ceilings into smooth surfaces can add a luxurious feel to your property. This simple alteration can make the space feel larger and more refined, enhancing the overall appeal of your home. The likability of the property increases by leaps and bounds.

Lighting Updates

In the current market, especially in the Greater Toronto Area, adding pot lights to the main floor can significantly improve the attractiveness of your home. Bright, well-lit spaces are more inviting, which is particularly beneficial for older homes with smaller windows. Lighting plays a major role in the likability of a property. Additionally, updating light fixtures and switch plates to more modern designs can give your home a contemporary vibe. Consider installing under-cabinet LED lighting in the kitchen for an easy yet cost-effective enhancement.

Kitchen Refresh

While a full kitchen remodel might be beyond your budget, minor updates can make a big difference. Installing a new backsplash, updating cabinet hardware, and potentially replacing old appliances can revitalize your kitchen. These changes are affordable and can dramatically increase your kitchen's appeal. They become even more important if your kitchen is 15-20 years old. As part of your listing readiness, look for appliance pair deals during major sales events like Thanksgiving or Boxing Day.

Bathroom Makeover

Aiming for impactful yet affordable bathroom updates can contribute to a successful sale without breaking the bank. Simple changes like replacing the vanity or toilet can freshen up the space significantly, especially when combined with a new paint job I recommended earlier.

I hope you find these tips valuable for your home-selling journey. For the best guidance in Real Estate, reach out to our team here at Elixir. We're here to assist you in achieving the best possible outcome. I look forward to connecting with you soon!

Wish you all the very best! Reach out to our dedicated team at Elixir for any queries you have in Real Estate, and we will do our best to help.

Mudit Mehta 

Broker of Record

ELIXIR REAL ESTATE INC.

Navigating the pivotal decision in the real estate journey—whether to embark on buying a new home before selling your existing one or vice versa—poses a significant dilemma for many homeowners. This guide is designed to demystify the process, offering strategic insights for those contemplating their next move in the dynamic real estate market. Whether you're a move-up buyer or looking to relocate, understanding the nuances of Real Estate Strategy for Homeowners can make a substantial difference in your experience.

Aligning Your Real Estate Transactions

Achieving a seamless transition between selling your current property and stepping into your next home hinges on the synchronization of these transactions. This approach not only ensures a smoother move but also aligns with Optimizing Real Estate Transactions, a key consideration for anyone navigating the Real Estate Market Trends in 2024. Initiating the search for your next residence concurrently with preparing your current home for sale paves the way for timely, coordinated closings.

Seller's Market Strategies

In a seller's market, where demand outstrips supply, the wisdom often leans towards buying your next home first. This scenario, termed Navigating Seller's Market Real Estate, requires a keen understanding of Tips for Buying in a Seller's Market. Securing your next abode in such a competitive environment might take precedence, ensuring you're well-positioned to list your current property in a market ripe for swift sales.

Buyer's Market Considerations

Conversely, a buyer's market presents a different set of challenges and opportunities. Here, How to Sell in a Buyer's Market becomes a pivotal strategy. The abundance of available properties means selling your home might require more time and effort, underscoring the importance of Real Estate Selling Tips. Selling first in this context alleviates the pressure of owning two properties simultaneously, allowing for a more calculated purchase thereafter.

The Balanced Approach in a Neutral Market

For those facing a Neutral Market, the decision can swing either way. However, leaning towards selling first might offer a safety net, providing flexibility without the financial burden of juggling two mortgages. Real Estate Transition Tips in such a market often include the possibility of a rent-back agreement, offering a cushion to finalize your purchase and coordinate moving dates effectively.

The Foundation of Your Decision

Embarking on both the buying and selling journey simultaneously offers a strategic advantage, granting you the flexibility to navigate Real Estate decision-making with confidence. Whether you're Buying a Home in Ontario or Selling Your Home in Mississauga, starting early facilitates a smoother transition, aligning with Home Buying Strategies and Home Selling Strategies tailored to your local market dynamics.

In conclusion, navigating whether to buy or sell first requires a nuanced understanding of the market and a strategic approach to your real estate transactions. By considering the insights and strategies outlined here, you're better equipped to make informed decisions, ensuring a smoother transition to your next home. For a deeper exploration of these concepts, I invite you to have a deep conversation with us, where we can help to make these critical real estate decisions.

Welcome friends today, we're tackling a bit of an unconventional topic as we discuss the real estate market over the last decade. This analysis will provide us with valuable insights into how things have transpired in real estate, aiding us in making better decisions for both the near and long term.

Being in real estate, one must stay on top of market trends, and at Elixir, we do this on a month-to-month basis to better understand the market and inform our clients accordingly. Today, I thought it would be beneficial to do a special session to overview the entire last decade, offering a holistic and different perspective on the real estate market.

In this infographic, we see the TRREB MLS Sales that have occurred since 2011 up until 2023 in the Greater Toronto Area. From this data, we can infer and understand that the GTA average since 2011 is 90,000-95,000 transactions or sales in a given year. The last two years, 2022 and 2023, were outliers, and as you can see here, 2023 is by far the slowest year in terms of sheer sales and movement in the market. We will come back to these recent years shortly.

For now, let's step back and go to the start of 2011. The market continued consistently till 2015. However, 2016 was an outlier year when the market saw huge demand, and supply was not able to cope. There were 113,040 home sales in 2016. This surge was due to low borrowing costs, a strong economy, and low unemployment rates. 

In October 2016, the Mortgage Stress Tests were introduced by OSFI for insured mortgages, with OSFI being the governing body of financial institutions. This introduction was to ensure that purchasers are comfortable with their payments in case the borrowing rates increase. However, this didn't dampen the market, and it surged crazily in the first quarter of 2017.

On April 20th, 2017, the Ontario government introduced a 16-point Fair Housing Plan to assist people in buying homes, increase supply, and protect buyers and renters.

The major point was the introduction of a 15% NRST (Non-Resident Speculation Tax) in the Greater Golden Horseshoe Area for any purchases made by individuals who are not citizens or permanent residents of Canada. Other points were also introduced to protect renters with rent control, action to boost the housing supply, etc. The market changed dramatically after this announcement in April 2016, and we saw those effects in the balance of 2017 and 2018.

Effective January 1st, 2018, the Stress Test was mandated even on uninsured mortgages. So, if you are contributing 20% or more towards the purchase of the property, a stress test is required. In 2018, irrespective of whether it was an insured or uninsured mortgage, everyone needed a stress test. The year 2018 saw only 78,017 sales, and the market remained buyer-driven, as we can see here in 2017, 2018, and 2019.

Then came 2020, and with it, the start of the pandemic. Restrictions were put in place, and pretty much everything came to a standstill. There was nothing called 'Business As Usual.' The heavy restrictions on movement and the shutting of businesses hampered consumer sentiments. From late-February to March 2020, the entire system, including Real Estate, was at a standstill. Unsure of what would happen next, there were a lot of properties sold by panicking sellers in April 2020, as consumers were scared and wary that global lockdowns would hit prices hard.

Meanwhile, in March 2020 itself, the Bank of Canada reduced the overnight rates three times, totaling a reduction of 150 basis points. From May 2020 onwards, the real estate market started to open with restrictions. The allure of incredibly low-interest rates attracted consumers to purchase. And despite all restrictions still in place globally, there were 95,056 homes sold in the year 2020 in the Greater Toronto Area.

With 2021, the low borrowing costs and easing of pandemic restrictions simultaneously drove up the demand for housing. In fact, the concept of remote working for certain job profiles also increased the demand for housing. People, looking to lower their mortgages, started to move to places outside the GTA, to places like Woodstock, London, Brantford in the West, and Clarington, Barrie, etc., in the East and North, with a lot of migration from the GTA outwards. Their job profiles allowed them to work from anywhere. As we see here, the market in the GTA alone saw a massive 121,712 sales in the region.

With this came the tightening of mortgage rates, and on March 3rd, 2022, the first 25 basis point increase was introduced, with 7 increases in 2022, totaling 400 basis points in the overnight rates. With the stress test already in place, this completely and directly impacts the eligibility and affordability of consumers. This ultimately translated to the market, and we saw that in a total buyer's inclined market in 2022 with only 75,047 sales in the GTA region. Effective October 25th 2022, the NRST (Non-resident Speculation Tax) was increased to 25% for all properties located anywhere in Ontario, and purchased by non-residents. 

There were three more rate increases made in January, June, and July 2023 at 25 basis points each, which resulted in further reducing buyers' eligibility and the sentiments overall. The GTA TRREB MLS saw only 65,982 transactions in this past year of 2023.

If we see that in 2011 we had close to 90,000 sales in the Greater Toronto Area and the average in forthcoming years was similar. Consider how many new subdivisions have been built in the last 13 years across the GTA. Countless subdivisions were built in Brampton, Whitby, Oshawa, Milton, Oakville, Burlington, Caledon, and so on. With the sheer new volume of homes, still, in the last two years, we had remarkably low sales.

This tells us that there is a lot of latent demand that has now built up in the last two years, both on the selling and buying side. As and when we hear some correction in the rates, or with the reduction in fixed interest rates from major banks, it would result in an impetus to the sales.

Now, consider the humongous number of newer subdivisions that have been built across the Greater Toronto Area, and the sheer number of new homes that are available on the market as of today. In comparison to 2011, now we have a way more volume of dwellings available in the GTA region. There is a definite gap and spillover of transactions that will happen from the past couple of years to 2024 and 2025. This tells me that it is a good time for first-time homebuyers and move-up buyers to capitalize on the bottomed-out market.

The argument could be that the market could go even lower. However, that is difficult to predict, and the best guess based on the data I see is that it will gradually rise from here month to month.

Hope you find this insightful. Please share it with your colleagues and friends who might benefit from this analysis. For the best in class Real Estate services, reach out to our sincere team here at Elixir, and experience the difference.

Wish you all the very best! Reach out to our dedicated team at Elixir for any queries you have in Real Estate, and we will do our best to help.

Mudit Mehta 

Broker of Record

ELIXIR REAL ESTATE INC.

Welcome friends, to a brand-new topic which I wanted to discuss with you today and that is ‘Assignment Sales’. Why and how assignment sale works for both buyers and sellers.

As you, would have noted the market, has been mostly inclined to buyers for over a year now, things towards dramatically changed and since July 2022 market has sort of plateaued.  In such markets, the demand becomes low and the supply increases. 

Speaking of Assignment Sales, it was traditionally a clause that the purchaser takes when buying a pre-construction home from a builder. This clause is meant to assign your contractual obligation of purchase to another buyer or assignee. This provision is placed in the original Agreement of Purchase and Sale to deal with any change in situation for the purchaser, the changes could be financial, logistical or personal which may require the consumer to assign his right to purchase at the agreed amount to a new willing buyer. It could be that the original buyer’s family situation or work location changed during the construction time, the location of the purchase doesn’t work anymore for them and they are looking for an assignment.

This process of assignment is also called paper flipping, as in an Assignment Sale the new purchaser is not able to see the property in person and is buying based on the specifications, features and floor plan available on the paper. The assignor or the original purchaser provides the original Agreement of Purchase and Sale to the assignee or the new buyer, this needs to be vetted by the assignee's solicitor.

Let us discuss point by point why an assignment works for a Seller:

Transfer of obligation - The Seller (Assignor) is able to transfer his contractual obligation to perform the final closing or completion of the property and arrange for the necessary mortgage in order to complete the transaction and arrange the funds. They can get away with arranging the necessary mortgage to complete the transaction.

Recovery of deposit - The original buyer can reclaim the deposit made to the builder, possibly with a premium if the market conditions are favorable.

Land Transfer Tax - The Seller is not paying the land transfer tax which is due on the closing, this is in fact paid by the new buyer or the assignee as its due only on the closing. 

Utility Connection Charges - For the new home there are some utility connection charges, for the hydro, water, gas services, if applicable to the unit. This cost is transferred to the purchaser upon completion, in assignment the assignee pays these costs. 

Development Charges - The development charges are generally capped, these are the cost which are in-built into the original purchase price. However, there are situations when the municipality requires more from the builder to cover up the development levies since the time original permit was issued. These costs are capped in the original agreement, but would mean that some of it till the capping limit might be required by the new assignee to chip in at the time of completion. 

Now, let's explore the perks for buyers:

Reduced Purchase Price – Generally since the assignment purchase is done on paper, it would always be negotiated at a price slightly lower than the price of a similar product in the neighborhood. By product, I mean to say similar property type and specifications. This price benefit is due to the fact that the assignee is willing to commit to the purchase just by looking at the specifications, and plans on the paper. The other reason is that the assignee is saving the seller from their contractual obligation to the builder, so they have the upper hand in the negotiation to get it at a favourable price to them.

Less Waiting Period – In the pre-construction world there is a waiting time involved from the time you ink the purchase with the builder to the final delivery. It varies based on the fact whether the purchase is a high-rise condo or a low-rise freehold dwelling. In the assignment scenario, these sales typically occur closer towards the occupancy, and this is the reason that the assignee or the new purchaser experiences minimal waiting time to get into their new home.  

Brand New Property – Assignments can happen for resale contracts as well but they are not as commonplace as how they are with pre-construction world. The assignee or the new buyer receives a brand new and never lived in property.

I should highlight here that they require lot of challenges and restrictions as well for both Seller and Buyer. But, if navigated well it presents as an opportunity for all parties involved. 

Let me highlight some pitfalls as well for assignments. 

Ontario New Housing Rebate - The new Buyer or Assignee should have enough cash backup as there could be a HST component which they might need to cough up during the completion, generally the builders recover it from the government based on the undertaking if the buyer is using the dwelling as their own residence. However, in assignments sometimes the builders would want this Ontario Housing rebate amount from the assignee and in that case the new Buyer would need to come up with this extra cash at the time of completion. The maximum Ontario new housing rebate amount that is available is $24,000. The assignee would then be required to claim it back from the CRA, upon occupation.

Advertising Restrictions - For the Sellers its not easy to expose or list the assignment opportunity on platforms like MLS, the majority builders would have restrictions which would be specified in their original Agreement of Purchase and Sale. Advertising of any assignment opportunity would require consent from the builder and might limit the platforms available to the Seller, in order to get proper exposure.

Too close to the finish line – There would be some situations where you are coming too close to the final closing date and builders might not provide the approval for the assignment as it is too close to the finish line. The builders would not want to introduce a new assignee into the picture when the closing is short. So, in order to navigate the assignment process it needs to be done well in time for everything to go smoothly.

Tax Implications – There would be tax implications which should be discussed by the Assignor with their accountant as any profits if you realize during the process of assignment would be liable for taxes and rather considered as business income. The CRA would generally not considered the investment as a capital property, and would not allow them to have capital gain exemption unless they are able to satisfy the CRA with their personal situation on why they needed to assign. This needs to be discussed with your accountant. 

Assignment Fees – This is another fees which the assignor would need to pay to the builder to get the paperwork done to transfer their rights to the new purchaser. This cost is outlined in the original agreement of purchase and sale between the original purchaser and the builder.

In a nutshell assignment sale works on various levels for both parties, however, needs to be executed carefully with these pointers consulted with legal and financial experts to have the necessary peace of mind and be prepared for a smooth outcome.

Wish you all the very best! Reach out to our dedicated team at Elixir for any queries you have in Real Estate and we will do our best to help.

Mudit Mehta 

Broker of Record

ELIXIR REAL ESTATE INC.

In our previous discussion, we covered the crucial steps of pre-qualification, research, and home screening. Now, let's dive right into the next stage of this exciting journey.

Offer Negotiation Stage

So, you've done your homework, evaluated various properties, and finally decided on the one that aligns perfectly with your family's goals. Now, it's time for the offer stage. Your Realtor will prepare an offer, keeping your best interests in mind. The art of negotiation plays a significant role here. Your Realtor will review recent sales of similar properties in the same area and analyze how the subject property compares.

The outcome of this analysis is the Fair Market Value range, which represents what a willing seller and a willing buyer would agree upon in today's market. A well-prepared offer will have a negotiation strategy built in, starting at a certain point and allowing room for discussion.

Negotiations may involve back-and-forth exchanges between the two brokers. Once the terms are agreed upon by both parties, a contingency period begins. This period typically lasts five business days in the GTA and covers conditions such as financing and home inspection.

During this time, you'll provide an earnest money deposit to the listing brokerage, which is held in trust. If the conditions are not fulfilled, this deposit is returned to you. If the conditions are met, the deposit is deducted from your commitment to the bank for the purchase.

Offer Agreement Stage

In the contingency period, you'll reach out to your financial institution or mortgage broker with all the agreement papers and supporting documents. They'll work on securing your firm approval, which involves evaluating both your financial situation and the property itself.

Lenders want to ensure that they're financing a property at a reasonable price, so they'll appraise it. If the appraisal comes in lower than the purchase price, you might need to cover the difference. During this period, you'll also arrange for a qualified home inspector to evaluate the property's condition.

Once the financing is approved, you'll provide a Notice of Fulfillment to the buyer, confirming that your financing conditions have been met. In the meantime in doing your inspection, if some latent defects are discovered, the offer again is brought to the negotiation table by your Realtor. As we want to ensure that as a buyers broker we see that our clients aspect is taken care of and they are not impacted with immediate repair cost after closing. An example of such issue could be mould presence in the attic, or crack in the foundation wall, or the air conditioner not providing the cooling, metal door missing in the cold room, water pressure in the pipes very low, drains in one of the washrooms clogged, or a crack in the garage floor, a gas leak in the window panes etc. Once these things are agreed and sorted between the both parties, we move on and make the deal firm by fulfilling the finance conditions as well. For the deficiencies noted and agreed between the Seller and Buyer, sometimes the Seller will undertake to get them repaired by a qualified contractor in advance of completion and we put it in writing in our agreement as an amendment to our original purchase agreement. Or sometimes the Seller and Buyer will agree on a negotiated amount and the Seller will offer a further credit in the purchase price, and the Buyer accepts that provision, by a similar amendment to change the price.

Title Transfer and Completion 

This is the final stage and the major role is played by your Solicitor. Both Seller and the Buyer in a Real Estate Transaction legally will require to have their own lawyers, due to inherent conflict of interests in these transactions. If there are any deficiencies in the title of the property, for instance there could be lien which was registered 8 months ago on a property by a contractor who didn't get the dues by the current owners for the work done. Such deficiencies will be found by the Buyers Solicitor and they will advise the Sellers Lawyer to ensure they are cleared before completion. And once they are cleared, they will search again to see the title is free and clear for the buyer to assume. In Real Estate when the two parties agree on a purchase price, the Buyer is responsible for completing their part to provide the funds promised in full on the completion date and the Seller is obligated to provide a clear title to the property which will be transferred to the Buyer in exchange of the full amount agreed. 

The whole process of adjustments goes between the Seller and Buyers lawyer, suppose you were purchasing a condo and the condo fees is prepaid for the full year by the current owners and you are closing in the month of July. In this case for the balance of the year, the prorated value of the condo fees will be credited back to the Seller upon closing. On the other hand if they had outstanding dues since Jan for condo fees, they will be credited back to the Buyer on closing. This adjustment process is done for property tax payments as well as utility bills etc. Majority of these activities take place on the completion date itself. 

And once the closing is done the keys are exchanged and provided to you as the new owner of the property and title is transferred in the registry records as well. At this time I also want to mention that closing date will always happen on a business day Mon-Fri when the Land Registry Office is open, and its not a public holiday.

Wish you all the very best! Reach out to our dedicated team at Elixir for any queries you have in Real Estate and we will do our best to help.

Mudit Mehta 

Broker of Record

ELIXIR REAL ESTATE INC.

In this blog,  we will discuss point by point everything what a Home Buying Process should include. And it will certainly help you to put things into perspective if you are looking to be in the market for purchase your home for living or for investment. Without further ado, let's get rolling.

Pre-Qualification

The very first step on your journey to real estate ownership should be pre-qualification. Think of it as getting a tailor-made suit that fits you perfectly or choosing the right-sized shirt from the rack. Similarly, in real estate, you'll encounter a wide array of options, from different locations to property types, styles, and ages. However, all of these considerations should come after you've completed your pre-qualification and set your budget ceiling.

Your budget ceiling is critical. It's not just about what you can qualify for based on your income and down payment; it's about what aligns with your overall financial picture and goals. 

For example you might be qualifying based on your family income and downpayment contributions to purchase a property upto $950k. However, your family and other commitments except housing, might dictate that your budget should be limited to $800k, as this would allow you to be peaceful in the property and able to tend to your BAU in every respect. This ceiling amount is the first thing you should determine. And only after this comes job of a Realtor. 

Research

Here comes the role of your realtor. A great realtors role is to see your budget ceiling, determine your family aspirations, needs and desires and then provide you with their market knowledge, the best options which would work for you as a family unit, and your next 5 year goals. When you talk about Real Estate Investment, nothing could beat the benefits of investing in a good location. The better the location is the more better you will see it will perform in term of returns in next 5-10 years. You should aim at going for the best location possible, certainly within your budget and it needs to be balanced out with the other aspects of the property which are property type, style and age of the home. To highlight the location importance to you, here in this visual you can see the median prices of freehold properties in the major towns of GTA in the month of Aug 2023. As you would note that a for a similar freehold property consumers are willing to pay almost twice amount when we compare locations of Oshawa and Richmond Hill. This is the power of location! It should be easy to understand here that if we spend money to buy an asset in Richmond Hill or Oakville that would grow at a better rate than the other parts of the GTA. Growth will happen irrespective in all locations, however the major momentum will be there on the right side of the infographic.

You can review our episode which I did in past on Why locations is the key for a real estate investment here and we will drop the link in the description as well. 

Balance Between Parameters 

Finding the right balance between location and property specifics is crucial. Every family has unique requirements, and that's where the art of balancing comes in. Let's consider an example: a family with a budget ceiling of $650k. They can get a 2-bedroom high-rise condo in Mississauga Square One, an older condo townhome in Stoney Creek, or a freehold detached property in Brantford for the same budget.

In Brantford, the location may not be as close to the GTA, but the property type is superior (freehold detached). Stoney Creek offers a balance between location and living style. And in Mississauga they are right in the heart of action and core GTA. In all cases, the budget remains intact. Balancing location, property type, style, and age helps you achieve your goals. As long as our family aspirations are clear, we will be able to finalize them.

If we interplay between Location, Property Type, its style and Age of a dwelling, you can pretty much achieve what you set out for in your area. The reason why in our company we definitely try to meet our clients in the first meeting for buyer/investor consultation, as with knowing about what all potentially a family can achieve in their budget, it would become a well informed and educated decision. This will help both in their quality of life as well as growth of the Real Estate asset.

You should definitely look at one of the blogs I wrote couple of years back on Four Pillars of Home Buying;it would put all of this into perspective for you and would tremendously help. We will drop the link for it here in the shownotes.

Home Screening Stage

After zeroing down on the location, property type, get etc of our desired home. This the most exciting part of the process where we see the properties which are in our budget in the area we want to invest or move in as a family. Its an educational process in itself for clients, as there are so many things which as a Buyer one should be cognizant of to make the best decision on whether to put their money on the property or not. There could be a property on a busy arterial road, on the face it looks good, but in practice it would always be a botheration to move in and out of driveway, specially would not hold well for families with younger kids. It would also lose on appeal when the time comes to dispense the property. 

Also, when we see a property, we should not get blinded by the glitz of shining potlights, nice painting job, good kitchen counter top, but rather we should be more concerned on the layout of the home. As the aesthetic elements we can at anytime get updated, and they are very economical to do when you compare it with the cost of the property you are paying. In fact if the house is not updated, it would work in our favour as it will provide us a negotiation edge. We should rather focus on the layout of the property at all floors as that has a direct bearing on our liveability, and future growth. In terms of layout a square living room like 13.5 ft x 11 ft would be more practical to a family for their enjoyment in comparison to a living room skewed in one dimension say 20 ft x 9 ft. You can review our episode on the importance of a Layout here, and we drop a link in description as well. We can change the flooring, painting, countertops, potlights, appliances etc in a property, but not the layout. That's the very reason, the layout should be your prime concern when you screen homes.

This process of triaging properties and going through them for couple of weeks, definitely would take lot of effort from your side, but believe me its worth every hour spent as it will dictate how your next 5-10 years are spent and how best you utilize the home and build memories. Or if you are investor, it would determine, how soon the property goes on rent and how quality tenants get attracted to your property. A home with a deficient layout, when you put on lease on the market, will be rejected by quality tenants and will be accepted by the parties which are not so strong on job credentials or credit score etc. And this journey of reviewing properties, only you have to go through and it cannot and should not be bypassed, one should not hurry up in making a decision and needs to be as objective as possible.

Wish you all the very best! Reach out to our dedicated team at Elixir for any queries you have in Real Estate and we will do our best to help.

Mudit Mehta 

Broker of Record

ELIXIR REAL ESTATE INC.

In Real Estate, we see multiple lot outlooks and property styles with their appeal. Nothing beats a property backing onto Ravine, a pond, a park or a wooded area. We will explore why such properties stand out and are suitable investments.

Real Estate lots backing onto a Ravine, a creek, a park or a stormwater management pond, etc., provide a calm and relaxed vibe in the backyard space. If you are living in a Ravine property, every day, the start of the day will be with a stunning view and establish a connection with nature. This fresh start of the day by being close to nature will give you enough momentum to carry through the day and is invaluable.

This is why the builders in the pre-construction world will charge a premium price on such private ravine lots. Throughout the year, you will look at a different landscape in the backyard with changing seasons. The Ravine will look different in the Spring, Summer, Fall and Winter with snow. Visualize this as scenery at the back of your home with constantly changing views throughout the year.

Another significant benefit of the ravine properties is if you decide to sell your property in the future. It will be a relatively smooth sale due to its attraction to the backyard's view and inherent privacy. It will also bear a higher value on the sale.

To showcase this with data here I have taken a snapshot of the Oshawa market for 2-storey detached 4-bedroom properties sold in the first quarter of 2021 (Jan 1st – Mar 31st).  I have deliberately taken the first quarter of 2021 as the market was not aggressive at that time and prices were within reason.
There were in total 148 properties which got sold in the first quarter of 2021, 127 of them were non-ravine and the median sold price was $1,035,000. Twenty-one of these properties were premium ravine lots and the median sold price of such properties is $1,225,000.


If the lot backs onto a municipal park, you benefit from a professionally landscaped view by the city in your backyard.
The backyards of Ravine properties provide an ideal setting for organizing parties and get-togethers since its a serene backdrop and a private background which helps tremendously to organize events.
With the ravine lots in my mind, the most critical benefit is the connection to nature as it helps to remain positive, calm and uplifting, this one comes from a personal experience, so I can vouch for it.

?Wish you all the very best! Reach out to our dedicated team at Elixir for any queries you have in Real Estate and we will do our best to help.


Mudit Mehta 
Broker of Record
ELIXIR REAL ESTATE INC.
Off: 416-816-6001 | [email protected]

How many lot shapes are there, in Real Estate, especially freehold low-rise real estate? What are the most suitable forms for future growth and overall appeal?

When you enter the Real Estate market to purchase a home for your living or you are seeking an investment property, there are many things which you need to focus on and apply your due diligence. At the top of this list, you will find lot considerations, which are two things: the shape of the lot and the lot outlook. This insight becomes very important when we deal with freehold properties. 

There are essentially five primary shapes of a lot,
Regular Lot -  Regular lots are primarily rectangular or square parcels of land where the frontage width and rear width of the lot are mostly making a rectangle. These lots are best suited for construction projects and efficient space utilization. They feature big front and rear yards and no wasted space on the sides as they are rectangular. Regular lots also offer increased privacy, as they are only exposed from the front and are private from three sides. 
For a lot which regular but with squarish dimensions, it will also have a considerable space on the sides and be relatively less in-depth; there would be potential for unutilized wasted space on the sides. 
In this sample lot, you can see it is 50 ft from the front and rear with a depth of 125 ft, it is a regular east-facing lot. As you can see, such lots give you privacy from three sides, and the property is exposed only from the front. 

Pie-Shaped Lots - Pie-Shaped Lots are lots on a cut-de-sac or a court location, where the lot's frontage is much narrower than the rear width of the lot. These lots, as a plus, will generally have a wider and bigger backyard space. A more oversized backyard allows for a tool shed, gazebo, firepit, play area, etc., in the property and still has space available. The downside of a pie-shape lot is that if it is too narrow from the front, it takes away the appeal of the front elevation as it looks small & restricted. The whole appeal of a lot comes from the front elevation, which is why in Real Estate, we value the frontage more than the depth. To make the point clear, let us consider we have two lots. One is 30 ft by 140 ft, and the second lot is 40 ft by 100 ft. The second one is by far the better choice, being wider.



In the image here, you can review that the lot frontage is only 27.4 ft. However, it is wide from the back and extends to 80 ft linear width. Due to being irregular, the depth is 151 ft on one side and 172 ft on the other. The yards becomes enormous and allow for a variety of usage.

Reverse Pie-Shaped Lot - Reverse pie-shaped lots have wider frontage and become narrower at the rear. These lots look grand from the front due to the extra wide elevation and its appeal.  However, from the back, they are very restricted in space, which takes away the charm & functionality of the property. As a result, these properties would have relatively less appreciation in the neighbourhood and fewer takers, as the consumers are primarily looking for a decent enough backyard space in the freehold market. 
This lot you can review has an extensive frontage of 97 ft and becomes skewed at the rear, and is only 26 ft wide. Reverse pie lots are usually found in situation where the street takes a curve. 

Irregular Lots - As the name suggests, these are not rectangular, square or pie-shaped and have highly disproportionate edges. These are the least desired lots as they are challenging to plan and develop. And for this apparent reason, they carry less appeal and will have fewer takers and appreciation. 
In our sample lot, you can review that the frontage is 110 ft; however, all of the other edges are disproportionate, and its 103 ft deep on one side and only 30 ft from the other. 


Triangular Lots - As the name suggests, this is a triangular parcel of land with three sides and, due to its limit, will have front or back severely restricted and won't allow for efficient use of space when building in such lots. The triangular lots you will find very far and few. In our sample, the frontage is extra wide 118 ft and highly unconventional. 

From all of these lot shapes, if we have to pick the best, it would be the regular lot which is rectangular, for efficient utilization of space. Rest would depend on personal preferences, as some consumers love the extra vast backyard and would prefer to go for a pie-shaped lot. 

The underlying theory when you buy real estate is that it should match with the community and the lots around. If the lot shape is an outlier, it will become an issue when we decide to sell it. In a hot market, it would still find takers, but in a saturated and balanced market, the property will tend to sit on the market for some time before finding the right buyer. 

Wish you all the very best! Reach out to our dedicated team at Elixir for any queries you have in Real Estate and we will do our best to help.


Mudit Mehta 
Broker of Record
ELIXIR REAL ESTATE INC.
Off: 416-816-6001 | [email protected]
 

In this write-up, we will discuss everything involved in placing an offer to purchase a Real Estate property, the various elements of an offer and the outcomes that can happen in a Real Estate negotiation.
You pass through steps to research and find properties which meet your family goals and investment aspirations, and finally, you find one and are ready to place an offer to purchase. At this point, your broker would prepare an Agreement of Purchase and Sale. The Buyer would generally initiate this document and send it to Sellers and their broker.
To completely understand the Agreement of Purchase and Sale (APS) let us take a deep dive into various elements of an offer,
The agreement should clearly identify the Real Estate property and the buyers and the date on which the offer was written
Details on the Purchase price and the initial deposit amount - The initial deposit amount could be herewith, which means that the Buyer is submitting the initial deposit draft along with the offer. Or it could be 'Upon Acceptance, ' which means that the Buyer would submit the deposit to the listing brokerage within 24 hrs of acceptance of the offer. There is no set amount of deposit that one can submit with an offer. However, in the Greater Toronto Area, it is generally 5% of the purchase price. This is also called a good faith deposit and shows the buyers' sincerity in the offer.

Contingencies (Conditions) - There could be several contingencies which you can build into your offer. The most common ones are for Finance and Inspection. The general convention is for 5 business days after the offer acceptance date. The condition of finance is to ensure the buyers have enough time to work with their bank/financial institution on their formal mortgage approval against the property. The bank might go for a 3rd party appraisal, allowing all of that to be taken care of. Especially in the saturated and dynamic markets, as it is now in the end of 2022, it is imperative to have a financial condition in the offer.
The condition of inspection gives the added safety net as a buyer to get the property inspection by a qualified inspector. For example, if the condition has been placed for 5 business days, the Buyer has 5 days to coordinate the inspection. Based on the feedback of the review, if there is anything material concerning the property, the offer can again be brought back to the negotiation table. Based on the agreement between Seller and Buyer, this re-negotiation might end up in Sellers agreeing to take care of the inspection feedback items or they can agree on a rebate in the originally agreed purchase price.

Inclusions/Exclusions - The agreement should clearly specify all of the chattels included in the purchase and any exclusion of any fixtures the Seller might want to take along with them. The underlying convention of Real Estate offers is that the fixtures are always part of the purchase, and chattels don't come with the purchase. For this reason, the Chattels like Fridge, Stove, Dishwasher, Washer & Dryer etc, need to be mentioned explicitly in the offer.

 The completion date or closing date is an essential part of the offer and should be a business day, the day when the Buyer will receive a clear and free title to the property and in exchange, the Seller will receive the dues agreed in the APS.

Irrevocability - Any offer which is made to the Seller cannot be indefinite, it always will have something called irrevocability. The convention in GTA Real Estate is to have offer a 24-hour irrevocable, to provide enough time for the Sellers to act on the buyer's offer. In an inclining or seller-oriented market when there is an established offer date, the irrevocability in multiple offers scenario is provided till midnight, the idea is that the Sellers would be able to decide from the offers on the table and pick the one which suits them best.

Offer Registration - This is the first step when your broker places an offer for a property to the listing brokerage, there is a form 801 which is provided by OREA and we utilize it to convey that we have a signed offer in regards to a property. This offer registration form doesn't have any material aspects of the offer, like purchase price, deposit amount, conditions, completion date etc. It just has the information about who the Buyer is, when the offer is sent, what time it is valid and the brokerage's details.
Offer Presentation - This is the time when the main offer documents are shared/presented to the sellers/seller's agent. It could happen in person as well as remotely too. It is always advisable to share some background information about yourself as a buyer and your financial qualification to purchase. This gives confidence to the Sellers to accept your offer. Real negotiation in Real Estate is when both buyers and sellers feel that they are getting the value out of their sale and buy.
Contingency Period - or we also call it a conditional period. If your offer has conditions say, for example, finance for 5 business days and inspection for 5 days as well. You now have the window to provide your bank or mortgage advisor with the accepted agreement copy along with your supporting documents. And they can initiate a formal approval at the financial institution to get your mortgage approved. Something banks would hire 3rd party appraisers to appraise the property, as they want to ensure that you didn't overpay for the property.
In parallel, you have the inspection condition where you hire a licensed home inspector and at a mutually agreeable time with the Sellers. This is an opportunity to get the in-depth inspection done for all elements of the property, including but not limited to the foundation, electrical, plumbing, drains, appliances, roof shingles, a/c, furnace, attic etc.
Once you as a buyer are satisfied with the financial eligibility and you are alright with your inspection results. The next step is to provide fulfillment to the Sellers. This is a document declaring that you have completed your obligations for the conditions in your initial offer and now have fulfilled those. By virtue of fulfillment, your offer now becomes a firm agreement, which is legal and binding on both sides. 

Wish you all the very best! Reach out to our dedicated team at Elixir for any queries you have in Real Estate and we will do our best to help.


Mudit Mehta
Broker of Record
ELIXIR REAL ESTATE INC.
Off: 416-816-6001 | [email protected]

In this write-up, we discuss the most important things to keep in mind when as we prepare ourselves as a Home Seller and before we list a property for sale. These tips will ensure you do a great job in the sale and everything goes smoothly and you get what the property deserves.

Selling a home is a project which if planned and executed right can reap the benefits by allowing us to sell the property in reasonable amount of time and at a reasonable price.

Pricing - The first and most crucial step in selling a property is its evaluation and agreeing on the right Pricing which is fair in the current market and justifies the property. This needs to be arrived at objectively, and without emotions, a fair comparative analysis of comparable recent sales in your area should be done by your realtor and after meticulously accounting for adjustments and features in the subject property and other properties which have sold in the neighborhood, in the due process arriving at the fair market value.

Getting a home listed at a higher price than its current worth in the market would not help the property to sell and gain any views, it would at best remain as a reference house for similar properties in the market which are priced right. It will in fact help other properties to sell fast if pitched unreasonably.

?Another downside of pitching property at a higher price than the fair market value is that it reduces  exposure to any qualified buyers who had a budget for buying our property if it were priced right. On the other hand, if you put it for less price on the market, sure it will sell fast, however, you will lose out on the money which property rightfully deserved.

A decent job done in evaluation and pricing of a home would result in decent showings on the home to eventually translate to offers, which is a trademark of decently listed property. The rule of thumb for asking price is that it should look and feel like a ‘good investment’ to a prospect, which will encourage them to come forward with an offer that is what you want as a seller. For an in-depth look at the pricing please refer to one of our episodes here, link would be in the show notes as well.

Now that we have discussed the pricing, the next most important component of a listing is the Product, which is the home itself, it should be made very clean and appealing to the viewer so that they can visualize themselves living in the property.

Updates and Upgrades - Updates & Upgrades, if required should be done in the property and in time to make it market ready. This would require a bit of planning and home work; also implementing any cost-efficient upgrades which can give a face-lift to the property, for a great lasting first impression. You don’t list often, so take this as opportunity to make the property shine and this will help you in getting the reasonable amount the market can bear for the property and also smoothness in the sale.

Bright Interiors - The home which is not presentable and has a dark look will dissuade any prospective? buyer from even entering the house. They will make an impression from the photos and marketing material and will not be encouraged to come forward for viewings. Ensure that curtains and blinds are half open to ensure enough natural light is present in the homes, to make them look impeccable.

Clean State - The property at its every nook and corner should be impeccably clean,without any clutter and any strong odours; make it as neutral as possible to gain the attraction of prospects walking-in. Making a home presentable and well-staged ensures that the showings translate to successful offers and the house is not on the market for a long time and becomes stale on the market. 

Accommodate Appointments - For a successful listing in the market ensure that once your house is listed, you should be able to entertain any showing requests. The fundamental always holds well: Homes that Shows Well..Sells Well. With restrictions on the time slot for the viewing, it will drive away from the prospective buyer which is the last thing you want. So, as a rule, once the house is listed on MLS, make your best effort to accommodate any viewing request which comes your way.

Wish you all the very best! Reach out to our dedicated team at Elixir for any queries you have in Real Estate and we will do our best to help.


Mudit Mehta
Broker of Record
ELIXIR REAL ESTATE INC.
Off: 416-816-6001 | [email protected]

In this write-up, we will discuss fundamentally how leasing and buying differ and what we should keep in mind to decide the best options for us. We will objectively try to review the pluses and minuses of both of these.

In order for evaluating leasing vs owning we will try to be as objective as possible to answer the question by discussing all arguments on buying vs renting and weighing the options for their merits. There is no straight answer to this, however, by end of this blog, I am sure it would make it easier for you and you can consider your personal situation and see what works best for you.

Let's first discuss what is

Good About ‘Renting’ :
Predictability – There are no repairs or maintenance costs, you have only the monthly rent to worry about.
The flexibility of Moving – If your work involves frequent relocation, renting is by far the best option. The rationale behind this is that if you are not keeping a home for 2 years or more the benefits in the equity are somewhat offset by closing costs related to buying/selling.
No Financial Responsibility – You are not affected by the market downturns if they occur, you are shielded from market exposure. So you can never end up with ‘Negative Equity’.
No Upfront Costs – For getting yourself in the rental home, you don’t have to worry about closing costs associated with ownership. You just need to arrange for a deposit in the form of last month’s rent, in addition to your first month's rent.

Not So Good About ‘Renting’ :
Opportunity Cost – This is true in the markets trending up, the more delay in the decision for owning and you end up paying a higher price for the same home.
Dead Money – The rental amount which you pay per month is not used for building any equity or future reserves for you.
Less Stable – If the owner decides to their home, you are left with no choice but to seek another leased accommodation and arrange for moving yet again.

Good About ‘Buying’ :
• Default Savings Account – Getting a mortgage for owning a home is often compared to as opening a mandatory savings account, for your initial years of repayment even though the interest component is high, still a good part goes as principal payment, which essentially builds your equity in the home with every passing month.
• Investment Returns – For other investment options (stocks, mutual funds, bonds, precious metals etc) you get returns on your invested equity, the unique thing about Realty is that if/when you decide to sell you get to keep the appreciation on the entire value of a home including portion lent by the financial institution, due to this leverage concept Real Estate becomes a unique investment vehicle.
• Secured Loan Opportunity – Over a period of time as you build your equity in the home with your initial down payment and as part of the repayment of the mortgage, the financial institutions offer you a secured line of credit (HELOC).
• More Control – Make any improvements or updates to the home for furnishings, wall colours, keeping pets etc.
• Tax Shelter – Government provides exemption on any capital gains on your primary residence, so when you sell it you keep the entire gains tax-free.

Not So Good About ‘Buying’ :
• Upfront Costs – For owning a home you would need to account for Closing costs (legal fees, land transfer tax, title insurance, home inspection fees, mortgage default insurance cost in case of high ratio mortgages etc).
• Market Risks – With your equity involved as a homeowner you are exposed to market crashes. Not a good investment vehicle if you are looking for short-term gains, but in the longer term it generally holds well.

The conclusion we can draw is that the decision of owning and renting should be taken very objectively by analyzing the parameters discussed and how they apply to your own family situation.

To close it off  let us take a deep dive and understand with numbers an example Scenario to Understand how we fare in Renting Vs Buying:

The assumptions we are taking are that the house is worth $700,000 and two scenarios of renting vs owning for a term of 5 years. For buying the down payment considered is $100,000 with a mortgage secured @ fixed rate of 4%, for the lease scenario the same amount of $100,000 is invested in mutual funds/bonds assumed to give a return of 4% annually.

Scenario 1 

We rent a $700,000 home
Rent per Month = $2,500
Rent paid in 5 years i.e. 60 months = $150,000
Utilities (Gas, Hydro, Water - assuming $250 per month) = $15,000
The investment return on $100,000 (from Mutual Funds, Bonds etc assuming 5% returns which are compounded annually in 5 years) = $27,628
 Net Savings = $27,628

Scenario 2

Owning a $700,000 home
EMI (with $100,000 down and mortgage for $600,000 at 4% fixed for 5 years) = $3,156
Interest Paid in 5 years = $111,690
Principal Paid in 5 years = $77,677
Property Tax paid in 5 years (assuming $3,500 per year) = $17,500
Utilities (Gas, Hydro, Water - assuming $250 per month) = $15,000
Closing Costs (Land Transfer Tax, Legal Fees, Title Insurance, Registration Costs etc) $14,000
Appreciation in 5 years (assuming 4% growth per year) - $151,657
Maintenance (assuming for 5 years) $20,000

Net Savings (after 5 years) $151,657 [appreciation growth] + $77,677 [principal paid] - $17,500 [property tax] - $14,000 [closing costs] - $20,000 [maintenance] = $177,834

Wish you all the very best! Reach out to our dedicated team at Elixir for any queries you have in Real Estate and we will do our best to help.


Mudit Mehta
Broker of Record
ELIXIR REAL ESTATE INC.
Off: 416-816-6001 | [email protected]

In this write-up, we will discuss the significant role of pricing in listing a property and how different pricing strategies affect the selling of your Property in the market.

For the Sellers, there is a host of items that one needs to take care of to put the home on the market and make it listing-ready. But nothing is more critical than the pricing strategy when you decide to sell a property.  

Pricing it right the first time is critical because, during the opening of 8-10 days, there is maximum exposure to the property when placed on a listing service like MLS®. Realtors across the board are actively looking for new listings to work with their buyer clients. As the property becomes stale on MLS®, it loses attention to time as other properties take precedence & come on top when Realtors conduct their searches while working with their buyer clients. And buyer prospects who are actively seeking in the market are presented with newer and more recent offerings on the market.

Secondly, the Realtors for their buyers always work on a set price range. Therefore, setting a price higher than fair value would essentially filter out the property in their searches for prospective buyers. As a result, you might lose the opportunity to show your property to otherwise qualified buyers for your home. For example, suppose your property's fair value is around $800k, and you list it at 830k. In this scenario, buyers qualified for a purchase up to $800k will not get an opportunity to look into your property. As it was listed beyond their range and didn't cut into their shortlisted properties.

Lastly, if we price it too low then it should be, you stand a chance of losing thousands of dollars that you could have received in exchange for the title of the property. The house would surely sell fast, however, we lost the opportunity for security at the price it deserved. For the scenarios where the property does come in range for a realtor working with a buyer client, if the Realtor is knowledgeable, they would know that the property is priced too high. The realtors prefer to show reasonably priced options active in the inventory and pass on the one priced aggressively. The buyers, too, tend to move towards moderately priced options.

For an owner, when it comes the time to sell a property it's a very challenging task to review it objectively. Our intent as a seller should be to maximize the exposure of your property and sell it in a reasonable time at a good price. In addition, the pricing of the home should be conducive to maximum showings to qualified buyers, increasing the probability of you receiving an offer from a prospective purchaser.

Three possible strategies for pricing we will discuss now, and based on the market condition and the property state, these can be adopted, no right or wrong but the one which works best for your case, we will discuss my recommendation as well:

Strategy #1
Pricing it Under Fair Value – This works in markets which more inclined towards sellers, where you want to achieve maximum footfalls in the initial few days in scheduled showings & open houses and aim to have a multiple offer situation created on the day of the offer presentation. Again, the inherent competition will get you to a fair value or probably more in a seller's market.

Strategy #2 
Pricing it Just Right – According to the property's fair market value; this approach works for all types of markets, whether they are buyer-inclined, seller inclined or balanced. When you adopt this strategy, you get exposure to the property to qualified buyers. And your value proposition is strong and has the upper hand in negotiations as you have priced it within reason. Your Realtor would require doing a bit of work here to prepare a comprehensive CMA (Comparative Market Analysis). This exercise is to determine fair market value; the CMA should be very detailed & objectively consider all the adjustments to the subject property from comparable sold in the last 60-90 days.

Strategy #3
Pricing it Over Fair Value – When you aggressively price your property when put into the market, the downside is that you lose qualified buyers and risk the ones who come to see with price point if they have a skilled realtor working with them.

This approach is adopted when the time is on your side and you are not in a rush; plus, you will have the upper hand in negotiation as the price has an inbuilt buffer for an interested buyer. Generally, this strategy would work for wow factor properties, where the properties have an abundance of upgrades right from the outside curb to the inside elements and finishes of the property. Such property can attract interested buyers willing to pay the premium for the updates & finishes. One downside of this listing strategy beyond fair value is that once the property goes stale with higher days on the market, it will sell even below the fair market value, which we could have easily gotten in the first place.

Strategy # 2 is the one I recommend to reach your goals fast and onto packing your bags and preparing for the next big move. This pricing strategy of pitching the property at the correct market value gets us the qualified and right interested buyer for a smooth selling experience and getting the price the property deserves.



Wish you all the very best! Reach out to our dedicated team at Elixir for any queries you have in Real Estate and we will do our best to help.


Mudit Mehta
Broker of Record
ELIXIR REAL ESTATE INC.
Off: 416-816-6001 | [email protected]