This influx represents one of the highest rates per population of any country in the world.

These newcomers will be looking to navigate the dream of owning a home in Canada. According to REALTOR.ca insights, approximately 40% of individuals currently searching for homes are first-time buyers.

This article lays out the three significant steps to help you become prepared about the purchasing a home in 2024, including:

• Planning out your needs and what you can afford;
• Arranging your finances and mortgage; and
• Selecting a real estate agent

Plan the Requirements of Your First Home and What You Can Afford in 2024

What do you need in a first home?

Homes come in all shapes and sizes, in different neighbourhoods, and with various amenities. Before you even look at potential homes, you need to decide what’s important to you. This is especially true if you’re buying a home with a partner. It’s better to understand each other’s needs and wants now rather than later on in the process. For example, the neighbourhood and school district may be vital if you want or already have children and want to live in a neighbourhood with great schools.

What kind of first home can you reasonably afford?

You should also consider what you can afford when contemplating your needs and wants. You may want 3,000 square feet of space. But such a large home is out of reach for most first-time homebuyers. Areas with high-ranking school districts are also expensive.

Even if you can get an enormous mortgage to purchase the most expensive house available to you, it doesn’t mean you should. A sizeable monthly mortgage payment can hurt your financial and mental well-being in the long term. The Canada Mortgage and Housing Corporation recommends keeping your total housing payment (this includes taxes, maintenance, and mortgage) under 35% of your gross household income.

Arrange Your Finances and Mortgage for Your First Home

Are you financially ready to purchase your first home in 2024?

Buying your first home requires financial readiness. At this point, you’ve likely saved for a downpayment. But are you ready for closing costs such as legal fees and home inspection costs? These costs can amount to 2 – 4% of your purchase price. Further, once you purchase the home, are you ready for property taxes and maintenance expenses on top of your monthly mortgage payments?

It’s also important to understand what tools the Canadian government provides to first-time homebuyers. These tools generally make it easier for first-time homebuyers to make their purchase.

What is your credit score?

The next step is to review your credit score, which determines whether you’re qualified mortgage. It’s handy to find services that can help track your credit score. Many banks offer free credit score estimates without impacting it.

If your credit is on the low side, it’s essential to bring it up. This isn’t something you can do overnight. Raising your score may even delay your first home purchase. But a better credit score can provide you with better mortgage rates and more financial flexibility. If you’re purchasing your first home with a partner, note that lenders consider both of your scores.

How to find a mortgage for your first home

Your mortgage is commonly the largest loan you’ll take out in your lifetime. Therefore, it’s essential to shop for the best one. You’ll likely speak with two types of people in this process: a mortgage lender and/or a mortgage broker.

• Mortgage lenders are most commonly your large banks or credit unions. They lend money directly to you.
• Mortgage brokers don’t directly lend to you but arrange a transaction to help you find a lender. Brokers have access to many lenders beyond the big banks and credit unions — generally referred to as “A Lenders”. They can introduce you to B and C lenders who may be more lenient if you have a less-than-pristine credit score.

Previously this process involved visiting numerous banks and mortgage broker offices. But post COVID-19, this process is more commonly done over video conferencing. When the deal is settled, some lenders or brokers may still require you to visit in person to sign the paperwork.

The interest rate on your mortgage is the most crucial characteristic, but also consider aspects such as:

• Do I need to purchase mortgage insurance?
• What fees do I need to pay if I break the mortgage?
• Are there any penalties if I refinance my home?

Getting your mortgage pre-approved before you begin to look at properties is essential but optional. A pre-approved mortgage can provide certainty in how much you can bid on a house when you find the one.

Find a Real Estate Agent

Buying a home isn’t easy. It’s a lengthy process with complicated steps and procedures. Luckily, real estate agents are here to help. A realtor can match your needs and wants with what you can afford. They can also advise what to look out for in a first home — things you’ve never anticipated. They can address your concerns about the current market conditions, how certain neighbourhoods are, and what red flags to look out for and provide referrals to real estate lawyers, home inspectors, and other professionals part of the home buying process.

A REALTOR® can also do a lot of the in-person work for you during this COVID-era. Suppose you’re afraid of attending a home showing. In that case, many agents may be happy to visit the property on your behalf and show it to you via ZOOM, Facetime, or similar applications.

Once you’re ready to close on your deal, a real estate advisor can help prepare your offer package. This includes your offer price, pre-approval letter, proof of funds for the down payment, and terms and conditions.

It’s also important that you meet with several real estate agents before selecting the one you want to work with. Hiring an agent is similar to hiring an employee. You’ll want to meet with multiple agents and ask questions to understand their credentials. Online reviews are also a great way to differentiate between agents as reviews are written by real clients that have had a full experience working with the prospective agent you are interviewing.

Buying your first home is a complicated and exciting process — especially in 2024. It’s important to plan out what you can afford and what amenities and features that you and your partner need in a home. Arranging your finances and mortgage and finding an excellent real estate agent are also critical to making this process as smooth as possible and turning your homeownership dream into reality.

The post Three Steps to Purchasing Your First Home in 2024 first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

Snelgrove

Crime rates: 26% lower than Brampton average
Real estate prices: 12% higher than Brampton average
School rating: 73.3/100
Overall Livability Score: 87/100

Snelgrove lies on the border of Brampton and Caledon. The neighbourhood has a variety of grocery stores and plazas that are highly accessible. There are numerous parks here such as the Conservation Drive Park and Heart Lake Conservation Park that are perfect for children to play outdoors. Snelgrove is also near Highway 410 which makes it convenient for families to travel outside the town. While the real estate prices are higher, there are mainly two-storey detached homes that are spacious and surrounded by nature.

Northgate

Crime rates: 13% higher than Brampton average
Real estate prices: 25% lower than Brampton average
School rating: 67.8/100
Overall Livability Score: 85/100

Northgate is located in east central Brampton and is considered an older neighbourhood in the city. However, it has a diverse combination of stores, services, and amenities that make it easy to run errands. The average real estate price here is cheaper than the Brampton average because it consists of housing such as detached, semi-detached, and townhouses. This allows families to choose whichever housing option they feel is the perfect fit for them in terms of size and budget. Northgate also contains 10 outdoor parks and recreation centres that are all ideal for families with children.

Westgate

Crime rates: 1% higher than Brampton average
Real estate prices: 12% lower than Brampton average
School rating: 68.3/100
Overall Livability Score: 85/100

The average price of a single detached house in Westgate is $1.06 million, 13% lower than the GTA average. Single detached homes make up most of the housing in Westgate with some townhouses as well. This neighbourhood is quiet and family-friendly with lots of nature and open spaces. There is also the Bramalea City Centre shopping mall that is under 10 minutes away by car and is one of the largest shopping malls in Canada with over 300 outlets.

Heart Lake East

Crime rates: Equal to Brampton average
Real estate prices: 11% lower than Brampton average
School rating: 65.8/100
Overall Livability Score: 85/100

Although the school rating is lower than the previous neighbourhoods, Heart Lake East consists of 7 public schools and 6 Catholic schools that give families a variety of options to choose from. The highest ranked school is St Agnes Separate School with an 87% proficiency. Heart Lake East is also near the Heart Lake Town Centre and the Trinity Common Mall. The 9 parks in this neighbourhood provide families with children an open area with lots of green space.

Brampton West

Crime rates: 100% lower than Brampton average
Real estate prices: 20% lower than Brampton average
School rating: 58/100
Overall Livability Score: 84/100

Brampton West is right next to downtown Brampton, making it accessible to many businesses and ancient buildings. There is also a nearby GO train that can take residents to Downtown Toronto in about 40 minutes. A single detached home is typically priced at $945,000, 23% lower than the average price in GTA. The diverse population makes Brampton West have a high livability score with a mix of restaurants and shops.

Madoc

Crime rates: 18% higher than Brampton average
Real estate prices: 28% lower than Brampton average
School rating: 57/100
Overall Livability Score: 84/100

Madoc is an older neighbourhood that is west of Highway 410, allowing residents to reach Downtown Toronto in 35 minutes by car. The housing contains older detached and semi-detached homes compared to other parts of Brampton, but it still has a mix with townhouses and apartments as well. Restaurants in Madoc are also known to be very diverse with ethnic cuisine. The area has 12 parks scattered throughout, including one that can accommodate ice-skating.

Fletcher’s Meadow

Crime rates: 11% higher than Brampton average
Real estate prices: 3% lower than Brampton average
School rating: 64.3/100
Overall Livability Score: 84/100

This neighbourhood is north-west of Brampton with a 40,000 population. Rose Theatre is a popular venue for shows that are scheduled throughout the year. Outside the Rose Theatre is Garden Square where there are daily shows including concerts and movie nights. Housing styles available include detached, semi-detached, and townhouses. The average school rating may not be the highest, but Ray Lawson is the highest ranked school in the neighbourhood with an 83% proficiency.

Southgate

Crime rates: 23% higher than Brampton average
Real estate prices: 33% lower than Brampton average
School rating: 66.6/100
Overall Livability Score: 83/100

Southgate is in southeast Brampton and is one of the older neighbourhoods. However, it is a convenient location due to its closeness to Bramalea GO and Bramalea City Centre. There is a large variety of housing options here that are all below the average price of homes in the GTA. Single detached homes are $965,000 and semi detached homes are $850,000. The downside to this neighbourhood is that the streets become extremely busy during rush hour with a lot of traffic.

Brampton East

Crime rates: 14% higher than Brampton average
Real estate prices: 15% lower than Brampton average
School rating: 58.6/100
Overall Livability Score: 83/100

The main advantage of Brampton East is that it is a quiet neighbourhood while also close to several amenities. It has single detached homes that are $1 million with decent sized lots. Housing styles include a mix of detached, semi-detached, townhouses, low-rise, and high-rise apartments. The West Humber River Valley is a recreation trail that is a popular destination for residents to enjoy some time in nature. Meadowland Park and Peel Village Park are also open green spaces that have sports fields and playgrounds for children.

Northwest Sandalwood Parkway

Crime rates: 5% lower than Brampton average
Real estate prices: 4% lower than Brampton average
School rating: 67.2/100
Overall Livability Score: 83/100

This neighbourhood is relatively newer with higher real estate prices compared to Brampton East and is located near Snelgrove. A single detached home is priced at $1.13 million, 7% lower than the average price in the GTA. Although this is a newer community and it is still evolving, there are restaurants that feature diverse cuisines. This neighbourhood is perfect for families who prefer newer homes, but also a quiet area with well established neighbouring regions such as Snelgrove and Fletcher’s Meadow.

The post Best 10 Neighbourhoods in Brampton for Families first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

With so many neighbourhoods in Toronto and such a variety of differences between them, it may be hard for new families  with children to choose where to settle down.

For young families, entertainment and activities, parks, top rated schools, transportation, the price of real estate, and much more all play a role in where to buy a home.

As a new immigrant, you may be starting to wonder what are some of the top neighbourhoods for families with children to put on your radar. This article is for you and lists 10 Toronto neighbourhoods to consider to settle down to.

Our Top 11 Toronto Neighbourhoods family friendly neighbourhoods include:

• North Toronto
• Branbury-Donmills
• Deer Park
• Riverdale
• Milliken
• The Beaches
• Rocensvalles
• Runnymede-Bloor
• East Lansing
• Etobicoke- West Mall
• Humber Valley Village

North Toronto

Avg Price of Condo (TREB Q4 2022): $728,000 (Yonge-Eglinton)

School rating score: 37.1/100

North Toronto includes the Yonge-Eglinton intersection and the area surrounding it. The neighbourhood was named “best Toronto neighbourhood to live in” among the 140 neighbourhoods in Toronto by Toronto Life. And North Toronto upholds its reputation with its easy subway access, variety of strong educational institutions, numerous parks, and much more. While the $2.4 million detached homes in the area may seem unaffordable for new families, Yonge-Eglinton offers many family-oriented, entry-level condos at a much lower price.

Branbury-Don Mills

Avg Price of Detached home (Q4 2022): $2,755,000

Avg Price of Condo (Q4 2022): $718,000

School rating score: 88.6/100

Though the price of a detached home averages $2.7 million in the Banbury-Don Mills area, it’s similar to North Toronto in the sense that young families can still move into the area with a cheaper, family-oriented condo. The neighbourhood has CF Shops at Don Mill at the centre, which is filled with amazing retailers and restaurants. Fairview mall is also close by and other activities, such as the Aga Khan Museum, aren’t too far away. The area provides a city-suburb feel and is close to the highway, making morning commutes to work that much easier.

Deer Park

Avg Price of Detached home (Q4 2022): $3,137,000 (Yonge-St. Clair)

Avg Price of Condo (Q4 2022): $1,379,000 (Yonge-St. Clair)

School rating score: 94.3/100

Yonge-St. Clair is a busy intersection filled with shopping, entertainment, and businesses. There are a variety of older detached houses, newer townhouses, and everything in between. The area has great schools, with the prestigious Upper Canada College right in the neighbourhood.  David A. Balfour Park and Oriole Park provide some much needed green space in this midtown concrete jungle. David A. Balfour Park alone has over 20 hectares of space and features a flower garden, the Rosehill reservoir, and a waterfall.

Riverdale

Avg Price of Semi-Detached home (Q4 2022): $1,691,000

Avg Price of Condo (Q4 2022): N/A

School rating score: 87.1/100

North Riverdale is a highly desirable neighbourhood in Toronto due to its proximity to the downtown core and to expressways, its variety of green spaces, and its beautiful Victorian-style homes. One of its most notable spaces is Riverdale park which has steep hills for tobogganing and an outdoor pool. North Riverdale is also home to Greektown, which hosts the annual Taste of Danforth. $1.69 million for a semi-detached home is a high price, but an alternative is South Riverdale, only steps away, where detached prices averaged $1.8 million and semi-detached prices averaged $1.3 million.

We asked Karolina Armstrong, from The Armstrong Team, to provide us her unique insights about Riverdale as she has been living in the neighbourhood for over a decade.

1) What makes Riverdale special? 

Karolina: “It beautifully walkable! And its filled with activities for children- There is every imaginable sport, tutoring, and art class within walking distance. It’s incredible. You can wake up, walk the kids to school. Grab a coffee. Drop off library books, pick up veggies for dinner, hop on the treadmill, take the kids to a park after school, see a show, and grab a bottle of wine…….all within walking distance. The greenery and local atmosphere is special here, there is a lot of charm.”

2) Why would you want to raise a family in this chosen neighborhood?

Karolina: “I would and I have! We’ve been living in this neighbourhood for over 10 years and moved here when expecting. It has great schools, and so many places to explore with little ones. I didn’t realize how much green space was here and as soon as we started to explore as a family, it seemed that we found a new park every time we walked around. Everything is walking distance, so you don’t have to hop in your car every time you need anything and you feel a great sense of community walking around. The homes are full of character and you can feel the history in them.”

3) Tell us about some  community events that happen that you want to highlight?

Karolina “Numerous events at Withrow Park year-round! Ice skating in the winter, Farmer’s Market in the summer, outdoor theatre in the summer! Did you know that you can rent out the fire pits here and have an outdoor campfire with friends and family? A perfect local birthday idea for kids and adults! Withrow Park is the place families converge.”

4) Price trends in the neighbourhood?

Karolina: “When houses come on the market here, they don’t last. It’s a highly desirable neighbourbood with great schools. With the limited inventory in this pocket, bidding wars have been taking place for years.”

Milliken

Avg Price of Detached home (Q4 2022): $1,341,000

Avg Price of Condo (Q4 2022): $604,000

School rating score: 42.9/100

If you’re looking for more affordable real estate prices, Milliken may be the place for you. It’s quite far from the downtown core and a bit of a drive just to hit the highway, but the average price of detached homes here are half the price of many midtown and downtown areas. Milliken also has many reputable schools and a lot of ethnic diversity. There are also great restaurant options, especially for East- and Southeast-Asian cuisine.

The Beaches

Avg Price of Detached home (Q4 2022): $2,033,000

Avg Price of Condo (Q4 2022): $938,000

School rating score: 55.7/100

The Beaches features beautiful boardwalks and easy access to the Gardiner and Lakeshore expressways. Accessing the downtown core is only one streetcar away. The area has many annual events such as the Christmas Tree and Menorah lighting festival, the annual jazz festival, and much more. Although the average home price is high, the price is brought up by many of the expensive homes along the boardwalk. Properties not along the boardwalk are likely more affordable.

Roncesvalles

Avg Price of Detached home (Q4 2022): $2,053,000

Avg Price of Condo (Q4 2022): $868,000

School rating score: 15.0/100

Roncesvalles is a convenient location due to its closeness to the downtown core, High Park, and the Toronto waterfront. High Park is only steps away and has children’s playgrounds and a small zoo. Other parks in the area include Charles G. Williams and Sorauren park. While Roncesvalles didn’t score well on the Toronto Life school rating, it’s partially due to schools clustering in the adjacent High Park-Swansea neighbourhood, which had a school rating of 32.1. Roncesvalles may be the better choice than its neighbour, however, as High Park-Swansea detached homes average $2.4 million.

Runnymede-Bloor

Avg Price of Detached home (Q4 2022): $1,332,000

Avg Price of Condo (Q4 2022): N/A

School rating score: 73.6/100

Runnymede-Bloor West Village is north-west of High Park and is walking distance to the popular green space. The area is a popular shopping and restaurant district with plenty of bakeries, delicatessens, specialty food shops, cafes, and much more. Similar to Roncesvalles, it’s very close to the downtown core, but as an added bonus, Runnymede-Bloor is also close to the Runnymede and Jane subway stations. Again, though the area scores low on its Toronto Life school rating, it’s partially due to schools clustering in the adjacent High-Park Swansea neighbourhood.

East Lansing

Avg Price of Detached home (Q4 2022): $ 2 081, 000

Avg Price of Condo (Q4 2022): 671 K

School rating score:

Lansing, positioned along the Yonge Street corridor, is conveniently close to the former North York City Hall and close to the sheppard subway line. Lansing is also known for its excellent amenities. In addition to the North York Civic Centre and the North York Central Library, which are both located in the neighborhood, Lansing is home to a variety of parks, schools, and community centers. For those who enjoy outdoor activities, Earl Bales Park is a popular destination for hiking, biking, and skiing, while the nearby Don River Valley offers even more opportunities for outings with families.

The Dave Elfassy Team. winners from our Top 50 Teams in Canada in 2022, shared some insights for families interested in moving to East Lansing:

1) What makes East Lansing special? 

Dave Elfassy Team: There are great parks, Mel Lastman square is very close by and large lots for growing families.

2) Why would you want to raise a family in this chosen neighborhood?

Dave Elfassy Team: Raising a family in an area with lots of activities to do with the kids, highly rated schools, and a neighborhood with a very high safety rating and low crime rate.

3) Are there community events that happen that you want to highlight?

Dave Elfassy Team: There’s lots. Usually, there are weekly events at Mel Lastman Square to enjoy.

4) Price trends in the neighbourhood?

Dave Elfassy Team: Prices have remained resilient in this neighborhood even with the latest downturn. It’s so close to transit, hubs, and many other activities. This area will always be in demand and prices will stay high.

Etobicoke West Mall

Avg Price of Detached home (Q4 2022): $1,106,000

Avg Price of Condo (Q4 2022): $559,000

School rating score: 30.7/100

Etobicoke West Mall is a great area that’s a lot more affordable than most of Toronto. It’s just west of highway 427 and has TTC busses that take you straight to the Kipling subway station. Just south is CF Sherway gardens as well as Cloverdale Mall on the other side of the 427. The West and East Mall parks are close by, as well. Each park has a tennis court, baseball diamond, and children’s playground, and the West Mall park has an additional ice rink and outdoor swimming pool.

Humber Valley Village

Avg Price of Detached home (Q4 2022): $2,098,000

Avg Price of Condo (Q4 2022): $650,000

School rating score: 14.3/100

Stationed right by Humber River, Humber Valley Village has a huge network of parks along the waterway. The neighbourhood is also 20 minutes away from the downtown core and 10 minutes away from Pearson airport. A short TTC ride can get you to the subway line if that’s your prefered method of transportation, and the nearby golf courses and shopping centres make for perfect weekend activities. Similar to other expensive areas, a family condo may be better than a detached home if you choose to settle in Humber Valley.

The post Top 11 Best Family-Friendly Neighbourhoods in Toronto to Move Into first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

The riverside city blends historical and modern architecture and features a plentiful nightlife and fabulous activities that are great for the whole family. Edmonton plays host to a wide variety of festivals ranging from K-Days to Bacon Fest — yes, you read that correctly. A festival of all things bacon! Last year they hosted the Red Bull Crashed Ice event that drew major crowds and during the summer they host the Sourdough River Raft Race where families and friends build their own rafts and take advantage of the River Valley at Terwillegar Park.

According to the Realtors Association of Edmonton, detached homes in the Greater Edmonton Area (GEA) averaged $451,659 as of February 2, 2023, a 4.2% decrease from December 2022. While condos averaged $189,631, a 5.5% increase from December 2022.

The City of Champions is known as a city of hard-working, industrious and resourceful people that play just as hard as they work.

But, when night falls and it’s time to put the kids to bed, here are 12 communities you can’t pass over on your search for the perfect place to call home.

The Hamptons:

Enjoy the quiet suburban lifestyle in this family-focused modern neighbourhood that was built in the early 2000s. Right off of the Anthony Henday freeway, The Hamptons are close to everything you need. While at home, slow down, kick your feet up, or enjoy the pathway systems, parks, playgrounds, lakes and ponds that are freckled throughout the community. The family-oriented neighbourhood is close to shoppings, cafes, a medical centre and there are two schools that serve the community — Bessie Nichols Public School and Sister Annata Brockman Catholic School. Best of all, the Black Hawk Golf Club is right around the corner for you golf lovers to take advantage of throughout the summer.

Keswick on the River:

Just south of Windermere and bordering on the North Saskatchewan River, Keswick is a developing, family-oriented community in Edmonton’s southwest! Vibrant in green space, minutes away from local eateries and shopping, and close to the to-be-developed Heritage Valley Hospital in Edmonton, there is a bright future for this bustling new neighbourhood.

Considering your young ones? Keswick has great options for schooling, with a total of local 6 schools ranging from K-12. Joey Moss K-9 School and Joan Carr Catholic Elementary/Junior High School are two local Keswick schools that opened in 2022 – plus, these schools are within walking distance in the neighbourhood.

Outside of schooling, Keswick offers great greenways for adventures with the whole family, as well as bustling community life for different seasonal events. Amenities are also plentiful. Nearby shopping outlets, restaurants, and farmers markets are a great hangout spot for the kids, grandparents, family members, and friends!

We spoke with Amie Brown, team member of HACK&Co and professional at RE/MAX River City, and here’s what she had to say about Keswick, a community she’s raised her own family within.

1) What makes this neighbourhood special?

Amie: “Keswick on the River is one of the lowest density neighbourhoods in all of Edmonton. It is bordering the North Saskatchewan River, and has over 8 kms of paved walking trails taking advantage of the view. The architectural detail of the homes in the neighbourhood allow for incredible curb appeal due to variety and visual interest.”

“Just this year, brand new K-9 Catholic and Public schools opened in the community. There is a strong sense of community here, the residents even came together and built their own skating rink in the park this year!”

2) Why would you want to raise a family in this chosen neighbourhood?

Amie: “I chose this neighbourhood, due to my unique position as a new home sales person at the time I built. I could se who else was choosing Keswick and knew it would be full of young families looking to put down roots! I have been here for 9 years now, and my neighbours are genuinely family at this point! I also love that there is no commercial space in Keswick on the River, so there is no extra traffic!”

3) Tell us about some community events that happen that you want to highlight?

Amie: “The new skating rink is still up in the park and open for anyone to use. There is often ‘Yoga in the Park’ offered at the gazebo during the summer. We also have the Green Shack program at the kids park. You can also expect Edmonton Public Libraries to set up pop ups.”

“Halloween in the neighbourhood is the absolute best with so so many families participating and next level decorations! And at New Years Eve, there are normally fireworks!”

4) Price trends in the neighbourhood?

Keswick on the River is a neighbourhood is a community that has and continues to increase in value. Having built many homes, and then been a part of selling them on the resale market has shown me this over and over in this community’s short life span!

Jamieson Place:

With F.C. Jamieson Park nestled right in the middle of Jamieson Place, this West Edmonton community is the perfect place to call home. This family-oriented community near the Anthony Henday, Whitemud Drive and the airport, offers a plethora of activities for people of all ages. There are ball diamonds, soccer fields, playgrounds and green spaces to take advantage of. Jamieson Place is also close to grocery, gas, pharmacy, restaurants and more shopping. The main school that is located in this community is Michael A. Kostek School.

Brintnell

This Northwest Edmonton family-friendly community boasts parks, pathways and greenspaces. Built primarily in the 2000s, Brintnell is close to great schools, including Dr. Donald Massey and Edmonton Christian Northeast School, great shopping, fantastic dining and there is quick access to the freeway making travel to downtown quick and easy.

Rosenthal:

Found in west Edmonton, Rosenthal should be on your radar of communities to move into. The community is growing rapidly today, could your family be the next residents?

Rosenthal continues to attract young families due to the peaceful identity the community has. The local greenways offer over 5k worth of walking paths, with natural attractions around such as waterfalls, brooks, and a community garden. Plan an outing with your kids to the local splash park, playgrounds, skating rinks, and keep your eyes out for the upcoming recreational centre.

Sheri Lukawesky, from The Christy Cantera Group of RE/MAX River City and a winner in RMA’s Top 100 Agents in Canada, advocates Rosenthal for families raising children. Here’s what she said:

1) What makes this neighbourhood special? 

Sheri: “The community feel. There is a Facebook group where homeowners ask questions, ask for help and you see the responses from other neighbours and it so heartwarming. In my opinion this provides an important source of social connection and a sense of belonging.”

2) Why would you want to raise a family in this chosen neighborhood? 

Sheri: “Due to the strong sense of community, this is an ideal neighborhood to raise a family in. This community is primarily with younger families, you have a more like minded and relatable neighbors.”

3) Tell us about some community events that happen that you want to highlight? 

Sheri: “Community pumpkin carving contest, splash park parties, haunted house & Halloween events.”

4) Price trends in the neighbourhood?

Sheri: “The Rosenthal neighborhood does really well overall homes typically sell within 45-60 days. Our team helps clients buy and sell within the community at least 4 transactions each month.”

Cumberland:

Tucked away in North West Edmonton, this newer community is perfect for young families looking to settle down. There is tons to enjoy in the lakeside community including parks, expansive pathways and greenspaces. And, there is an abundance of community-organized events in the area such as family movie nights under the stars orchestrated by the active Oxford/Cumberland Community League. This neighbourhood has it all, it’s close to schools like the Hilwie Hamdon School, and shopping, Cumberland is a great place to start the nest.

MacEwan:

Comprised primarily of multi-family dwellings such as apartments and duplexes, this community offers a fantastic backdrop to your children’s upbringing. Close to transportation and with quick freeway access, MacEwan is accessible and convenient. MacEwan is close to Victory Christian School, which serves Kindergarten through Grade 12, and it’s near George P. Nicholson Public School. Enjoy evening strolls through green spaces and stop at the massive playground tucked away in the heart of the community. For you golf lovers, MacEwan is close to Jagare Ridge Golf Course, so we know where you’ll be on weekends!

Terwilligar Towne:

Escape the hustle and bustle of big city Edmonton for that small town vibe in the middle of it all. With green spaces, walking paths and water features, Terwilligar was designed to make you feel like you are somewhere new altogether — somewhere tranquil. The neighbourhood emphasizes community through central meeting places and green spaces, plus there are fantastic schools nearby to serve the community such as Ester Starkman School and Lillian Osborne High School.

Want to try something new? Try out a new sport or get your workout on at the conveniently located state of the art Terwillegar Community Rec Centre. Terwilligar Towne also has convenient road access to the Anthony Henday, getting back to the real world is just as easy.

Sheri Lukawesky, previously introduced, shares her recommendation of Terwilligar Towne.

1) What makes this neighbourhood special?  

Sheri: “The neighborhood is ideal as it is close to various parks, well known and sought after schools not to mention lots of amenities at your fingertips.”

2) Why would you want to raise a family in this chosen neighborhood? 

Sheri: “The community is very close knit with various block parties and community events always happening.”

3) Any community events that happen that you want to highlight? 

Sheri: “In August, there’s a Summer carnival!”

4) Price trends in the neighbourhood?

Sheri: “The community itself is very sought after, homes come up on the market and don’t stay as an active listing for long due to the high interest.”

Wild Rose:

Nestled in Southeast Edmonton, this newer community built in the 2000s has it all. Take a stroll in the diverse and colourful Mill Creek Ravine, or stay closer to home with a brisk walk through the Wild Rose Park or Kittilitz Park. Enjoy shopping nearby, or take up a class at the recreation centre that has a pool and an arena. Close to transportation and freeways, Wild Rose is a great place for young families. There is one main school that serves this community — the Father Michael Troy Catholic Junior High School. There is never a dull moment in Wild Rose. The active community hosts a number of events that are friendly for the whole family — from Bike Festivals to huge Canada Day celebrations — you will always find something you and your family can do.

Silver Berry:

Tucked away in The Meadows in Southeast Edmonton, Silver Berry is the perfect community for young families. And it’s close to Costco. There is an abundance of arenas nearby including the Kenilworth and Mill Woods arenas. Hot summer days? Enjoy the outdoor pools, recreation centres or leisure centres in the community. The community of Silver Berry is comprised of mostly single detached homes and features a number of pathways, green spaces and playgrounds, and it is located near the Grey Nuns Hospital. This area is home to the Mary Hanley Catholic School which serves students in Kindergarten to Grade 6.

Heritage Lakes:

Step out of the hustle and bustle of Edmonton and find paradise in Heritage Lakes in St. Albert. This neighbourhood promotes community with its abundance of playgrounds, nature spaces and walkways to enjoy. The St. Albert community has quick access to Highway 2 and commutes into downtown Edmonton are just about a half hour — or enough time for you to finish that Tim’s coffee. Heritage Lakes is home to and active Community Association that plans a myriad of community events that are fun for the whole family. This neighbourhood includes the Wild Rose Elementary School for students ranging from Kindergarten to Grade 4. With its large amounts of nature space and close proximity to shopping malls, Heritage Lakes could be your oasis.

North Ridge:

Located in St. Albert’s Northwest side, this quiet neighbourhood offers single detached homes. Residents can escape the city life with the sweet serenity of suburbia, without missing out on convenience. Close to shops and a number of recreational facilities, North Ridge is the great escape. Plus, with quick access to the highway, commutes downtown are convenient and efficient. This area serves students of all ages with schools like J.J Nearing Catholic Elementary School, Vincent J. Maloney Catholic Junior High School and Bellerose Composite High School.

The post Best 12 Family-friendly Neighbourhoods in Edmonton You Can’t Miss first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

After more than two years living in a pandemic world, we all got used to spending more time at home, many times surrounded by our family, so how can we make this day special? Especially when sharing tight living quarters.

There are, of course, financial and ecological perks to shrinking the square footage of your home, but what do you do when you can’t shrink the number of occupants?

Juggling multiple schedules, maintaining well-treaded, multi-use spaces, and organizing become top-tier tasks for families. Having well-delimited areas became essential during the pandemic. A home office to work quietly and an entertainment room where you can have fun with your family can make spending so much time together easier. So that is why we prepared a few tips to complete this daunting task quickly and without additional stress.

Everything has a home. This tried-and-true tip has been mentioned time and time again, but it is especially important in a smaller space. Make sure that every item in your home serves its purpose and has a place to live where it can be tucked away when it’s not in use. Channel your inner HGTV guru and hit up Home Depot, Home Sense, Ikea or Home Outfitters and find some cute — and practical — storage units that will work in your space, and don’t be afraid to make labels!

The hardest part about this tip — and I think we all know it well — is to actually follow through and put things away when we’re done using them. When living in a small space, especially with other people, things hanging out on surfaces will instantly make your home look more cramped and more cluttered. Tucking them away into their respective drawers or cupboards after use will have the place looking more put-together and reduce some of those stress levels, making clean ups more efficient.

When eyeing up your space, it’s important to ask yourself if all of the items in your home serve a purpose and if not, ditch the clutter and consider downsizing. Listen to Marie Kondo and her art of Tidying Up. If the item does not bring you joy or serve any real purpose in your space, it may be time to part ways with it. 

Use space wisely. Families living in smaller spaces may have to break away from the intended design of the space and get a bit creative. What I mean is who says that the master suite has to be for the adults? Why not put the kids in there? They can share the space, plus it can double as a playroom and keep their toys from spilling out into the rest of the living space.

You can also think of how you can use curtains and bookshelves as room dividers to better create designated spaces to serve specific purposes. Don’t have a closet, for instance? Use a cube shelf from Ikea as a divider and use a few free-standing rolling racks behind to create a makeshift wardrobe. Those cube shelves work wonderfully because you can store items on both sides.

One way to create the illusion of more space is to paint your walls white. Not only is this currently in fashion but it allows the light to add extra square footage to your space, well at least make it look like that. Colour has a tendency to overwhelm a space, so when creating your decor palette, stick to about four colours that can be used throughout the home with one contrasting “pop” colour. The nice thing about colouring your home with decor is that it can easily be replaced when you want to redesign or create a new atmosphere.

Do your kids love to make crafts? Real Simple offers this tip and I couldn’t help myself but include it in this list: throw out the glitter. Glitter is notorious for being the most impossible crafting supply to be cleaned up. Now, imagine what happens when you let this abomination loose in a small space? You’ve seen those glitter bombs? But picture it in your home, where your clothes live and your food! Glitter NEVER really goes away. It hides — lurks in the shadows, in the corners of your cupboard, only resurfacing its sparkly face in the most inopportune moments.

This tip ties in with Real Simple’s point of ditching the sentimental mentality. When living in a small space, you will really have to make some decisions on which meaningful items you keep and which you part with.

For instance, not every single piece of your child’s art collection can earn its spot on the fridge simultaneously. But, what you could do is bring in the tech. Take a digital photograph of your children’s masterpieces and put them on a rotating digital picture frame. That way you don’t have to keep all of the hard copies, but rather select a few of their favourites to store for when they’re older. Plus, they’ll have a digital copy of everything they’ve done on a USB fob when they turn 18 and move out!

Getting outside is one of the best ways to “add more space” to a small home. And now seems to be a good time to get out there as COVID-19 restrictions are being eased up in many provinces. Take advantage of the neighbourhood around you and enjoy quality time with your family as you take a nightly stroll, plan a tobogganing day with hot chocolate or a quick play at the park. Don’t forget to keep yourself and your loved ones safe!

Living in a small space with lots of people and children can be loud, busy and crowded, but by escaping into the wilderness, or even into our own communities, we can take more of that personal time and space while still enjoying the company of our loved ones.

Parents raising their children in smaller residences are becoming a more common occurrence as the housing market is still hard to break into in Canada’s big cities like Toronto, Vancouver and Montreal and Calgary. But with some creativity, planning, organization and absolutely no glitter, you and yours can make it work.

From everyone at RMA, we hope you have a fantastic and fun Family Day with your loved ones.

The post How to live small with a big family in 2023 first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

Places like British Columbia have had vacant real estate taxes for a few years now. Will the vacant home tax achieve its goal of reducing real estate prices? Where has the tax been sued before, and what were its results? This article will analyze the various proposals for vacant home taxes and look at places like BC, which have instituted such a tax to see how effective they can be.

Friendly reminder: Please speak to an accountant or tax professional when dealing with any potential taxes (be it on your property or personal income). This article provides information about taxes – not tax advice.

How do the proposed Vacant Home Taxes Differ?

Income taxes are prevalent worldwide at Federal, Provincial and State levels. Of course, the specific income tax in different regions varies in what percentage of income is taxed, and vacant home taxes can vary in the same way. On top of what percentage is taxed off the value of an empty home, how that tax is enforced can differ in numerous ways.

Peel’s proposed vacant home tax responds to an estimated 13 000 vacant units across the region. The tax, developed with the help of Ernst and Yonge, has the goal of encouraging owners to either sell vacant houses or rent them. Owners would have to report if a property is vacant, and if vacant, the municipalities of Peele would collect the vacant tax with property taxes. A 1% tax would net about $16.4 million a year, with the cost of administering the tax being $5 million annually.

The region of Peel is currently still in the process of collecting public consultations about their inputs on the level of public support, public policy implications, potential effectiveness of the tax in terms of increasing the supply of affordable housing, its impact on affordability, and privacy-related concerns. The results of the consultations will help them determine next steps and program design options of the implementation.

The Toronto vacant home tax follows a similar structure to the proposed one of Peele. The onus is on property owners to declare if a home is vacant each year, and the city will investigate possible homes suspected to be vacant. While the proposed Peele Region tax is still being developed, the Toronto vacant home tax seems to have more devices to tackle homeowners with vacant homes that have not declared their residences as such. On top of being subject to the tax, the city may subject non-declaring owners to various penalties and fines. Toronto’s tax is set at 1% and is predicted to raise $55 to $66 million for the city.

Overall, the much-discussed vacant home taxes in Ontario follow a similar structure of self-declaration and enforcement through auditing. The difference in Ontario’s jurisdictions is how much the tax is (with Peel considering a tax of 1-3%) and, as shown through Toronto, how they plan to reprimand homeowners who do not declare their vacant homes.

What is the Toronto Vacant Home Tax Declaration in Toronto?

Property owners in Toronto must annually now declare the occupancy status of the properties they own, even if they are currently living in the property.

This declaration  will determine if the Vacant Home Tax will apply and needs to be paid.

The Vacant Home Tax is 1% of the Current Value Assessment (CVA) and applies to Toronto homes declared, deemed, or found vacant for over 6 months in the previous year. The tax is based on the property’s occupancy status in the previous year.

To declare, you’ll need your 21-digit assessment roll number and customer number from your property tax bill or statement. Declarations can be made through the City’s online portal or via a paper form. Incomplete paper forms will not be accepted. Owners of unoccupied properties may be subject to an audit.

Corrections to declarations can be made before the February 2 deadline or by filing a Notice of Complaint after the deadline. Failure to declare or making a false declaration may result in a fine of $250 to $10,000.

Some Exemptions exist where a property can be left vacant and the tax does not need to be paid:

Source: https://www.toronto.ca/services-payments/property-taxes-utilities/vacant-home-tax/

What was the effect of British Columbia’s vacant home tax?

BC’s vacant home tax (the “Speculation and vacancy tax”) turned three years old at the end of 2020. Like the goals of the proposed vacant home taxes in Ontario, BC implemented the tax to increase the affordability of real estate. Owners must declare if their home is vacant, and if vacant, the relevant tax rates apply.

The BC model differs from many of the proposed models in Ontario because the rate depends on one’s citizenship. After 2019, the tax rate stayed at 0.5% from its 2018 level for Canadian citizens and permanent residents who are not part of a satellite family. However, if you are a foreign homeowner or a satellite family, your tax rate will be 2% off the value of your home.

Vancouver’s empty home tax has a similar structure of administration (declaring, audits, etc.) but increased to a tax rate of 5% in 2023 compared to 3% in 2021-2022. However, Vancouver and BC’s taxes are, of course, different – theoretically, someone could be exempt for both or have to pay both when the taxman comes knocking. Hence, a Canadian citizen may have to pay Vancouver’s 5% tax and BC’s 0.5% tax for their empty home. If Ontario were to implement a vacant home tax on a provincial level, it would likely interact with the taxes of its municipalities like Toronto similarly.

In terms of effect, both taxes use their revenue to invest in housing initiatives, on top of their intended effect to deter empty houses. For the fiscal year 2020, BC raised $81 million for affordable housing programs. However, Vancouver and BC at large still remain seller’s markets – BC housing prices are still unaffordable for many people. So, evaluating the effectiveness of the taxes becomes a bit of a chicken or the egg situation – is the tax ineffective? Or would prices have increased even more without their implementation? One of the tax goals, to stop houses from being vacant, seems to be effective, with rental units increasing in metro Vancouver.

The city of Toronto is estimating the tax will bring 66 million in revenue per year, which will be used to create affordable housing.

The post The Full Guide to the Vacant Home Tax in Ontario and Lessons to be Learned from BC first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

The metaverse isn’t just another Bitcoin. It’s not even a recent concept! The metaverse simply describes integrated 3D virtual worlds — imagine games like Roblox or World of Warcraft. These games have been around for decades!

But as technology advances, companies are finding new ways to put the metaverse to use. McKinsey believes that the metaverse could drive physical product sales, reduce the need for physical stores, and enhance in-store experiences. The consulting firm further found that 64% of consumers surveyed were excited about shopping in the metaverse.

This article discusses the metaverse and how it may affect the real estate industry.

What is the metaverse?

The metaverse is any online 3D world where you can interact with others via an avatar. We’re used to metaverses through video games. But companies now want to apply the technology to industries beyond gaming.

For example, instead of using a video conference to meet with someone halfway across the world, you could meet in a metaverse and engage in new ways. Integrate this experience with virtual and/or augmented reality and create a much more immersive experience than just a ZOOM call.

You could also create better digital shopping experiences. Instead of flipping from webpage to webpage, consumers may someday visit virtual malls from the comfort of their homes. Here, people could purchase real-world items in a more mesmerizing shopping experience, and this better user experience could translate to more sales.

The possibilities for the metaverse are endless. And the industry is only beginning. That’s why everyone has high hopes.

Many people are already investing in the metaverse by purchasing land in specific digital universes, hoping that the value of these digital properties will appreciate.

How does buying metaverse land work?

Some metaverses let you purchase unique digital land and other properties. Big names like Snoop Dogg and Steve Aoki already own properties in a metaverse called Sandbox. Decentraland is another popular network where people can purchase unique parcels of land.

Metaverses usually have their own cryptocurrency used as a medium of exchange. Decentraland’s currency is called MANA, for example. To purchase real estate on Decentraland, you ultimately need MANA.

After obtaining the necessary currency, the land purchase process depends on the specific metaverse. Each has its own procedures.

Many assign you an ownership ID to the digital land parcel, similar to an actual deed. Buyers may need to show proof of their real-life ID and address too. Your virtual deed could also come as an NFT.

Like the real world, these properties can be anything from houses to apartments to commercial storefronts. It can also be a plot that you develop into a customized residential or commercial space.

Unlike reality, land in metaverses is infinite. There’s also usually no travel time between two points in a metaverse. In the real world, land scarcity and a property’s location determine a building or land parcel’s value and cause it to appreciate.

A particular area of a metaverse might appreciate for other reasons, however. If you own the digital parcel beside Snoop Dogg, you could expect that that land could fetch a nice premium. High-traffic areas are generally the ones that sell for big dollars.

For example, one parcel of Decentraland land sold for $2.4 million worth of MANA in late 2021. This piece of land was located in the “Fashion Street” area of Decetraland, making it highly valuable. The purchaser, tokens.com, hopes to one day build a virtual shopping centre to sell virtual clothing for digital avatars.

In addition to infinite land, there’s also the potential for infinite metaverses. If Google, Meta, and other large tech companies all started a consumer-targeted metaverse, this could reduce the popularity of Decentraland or Sandbox and then reduce the value of all land there as investors rush to invest in a new metaverse.

Just think of the rise and fall of other websites and networks! You don’t know if your metaverse will be the next MySpace or Tumblr.

How Could the Metaverse Affect Tangible Real Estate?

While the potential for a new way to “invest” in real estate might become viable someday, how can the metaverse affect the real estate we know? One way is through more immersive showings and the ability to meet online in the metaverse.

Realtors currently use many ways to display a property. Photos are the most common. But videos, 3D renderings, and 360-degree cameras are increasing in popularity too.

But imagine a metaverse where potential buyers can walk through online replicas of houses on the market. Suddenly, buyers in foreign locations can view a listing as if they’re there. This could help increase the draw and attraction of a house and encourage more buyers.

Simultaneously, a realtor can take buyers through the property and interact with them in the metaverse as if it was a real-world showing.

The metaverse could also change home buying by giving buyers, sellers, and brokers a place to meet. As a buyer or seller, you may someday have an initial consultation with a realtor in the metaverse when an in-person meeting isn’t viable. Or, suppose you meet your mortgage broker in the metaverse. The ability to show and view facial expressions and body language could help you explain your needs and allow realtors or brokers to reveal how they can help.

The metaverse is not a new technology. But many companies are now trying to apply it to new industries. Buying and selling real estate in the metaverse has significant actual dollar values, though it comes with numerous risks.

For real-world homebuyers and sellers, the metaverse has numerous applications in how we’ll someday view a home or meet with the people who help us in the home purchase or sale process.

The post Real Estate and The Metaverse: Unique Potential for the Industry first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

What is bridge financing?

A bridge loan, also known as bridge financing, is a temporary loan that allows you to use the equity of your present home to pay the down payment of your next home even before your home sells. It is commonly used when closing dates are not aligned and you are in a competitive housing market with high demand. This loan is a quick and easy solution if you are financially stable.

These loans are usually between 3 to 6 months and can go up to 12 months, depending on your financial circumstances. A stable income and a good credit score are necessary to be eligible for this loan. The majority of lenders also need a minimum of 20% equity. However, some lenders will consider your income level and adjust the requirements accordingly. After those qualifications are met, you must make a sale agreement on your current home that contains the firm closing date and a purchase agreement on your new home in order to get a bridge loan.

The cost of bridge financing

While this loan is convenient and can provide comfort, there is a cost associated with this loan.

The cost mainly consists of three values:

1. Legal cost- Registering the loan requires your lawyer to do extra work so that they may charge more
2. Lender fee- Lenders need to set up the loan so that they can charge for the time it takes them to set it up
3. Interest rate- The bridge loan interest rate in Canada will approximately be Prime +2.00% or Prime +3.00%

To sum up the costs, a bridge loan usually costs between $1000 – $2000, but it also depends on a case-by-case basis and your circumstances.

Calculating your bridge loan

Now that we’ve looked at the cost of a bridge loan, how much can you get from a bridge loan?

To calculate your loan, take the amount of equity you have on your present home and subtract the down payment of your new home. Let’s take a look at a bridge loan example.

You have $150,000 equity on your present home, and your down payment for your new home is $50,000.

$150,000 – $50,000 = $100,000

Your bridge loan is $100,000 and is financed until the sale of your present home is over.

To get an accurate estimate of the sale amount available for your bridge loan and the approximate cost of your loan, be sure to use a bridge loan calculator.

Pros of bridge financing

Now that you know what a bridge loan is, let’s look at its advantages.

Buy your next home before the current one sells: The main advantage of this loan is that you get to buy your dream house even before your current home sells. This provides relief as you don’t have to stress over your home not being sold in time for purchasing your next home, especially if you are in a competitive area.

Financial Flexibility: A bridge loan also provides financial flexibility as it allows you to use the equity of your present home to pay for the down payment of your new home. If you find a house you love but can’t afford the down payment of it, this loan can be useful in covering the balance until the sale of your present home closes.

Find capital for renovations: if you want to make changes or renovations to your new home, this loan provides you with the funds and extra time that may be needed before you move in.

Cons of bridge financing

Despite how efficient bridge financing may sound, there are possible disadvantages that you should consider.

High-interest costs: Even though this is a short-term loan, the interest can get costly as the interest rates are generally higher than the interest rate you are paying for your mortgage. So evidently, the longer your loan is, the more interest you will have to pay your lender.

Need to qualify: Various factors, including income, credit score, and equity, determine the terms of your bridge loan. So, many aspects of a bridge loan may fluctuate, like the duration of the loan, interest rate, and requirements.

You must sell your home before the end of the bridge loan: This loan can lead to a higher risk because if your bridge loan exceeds the term and your present home is still not sold, you will have to pay for two mortgages until you can sell your home.

Who offers bridge loans?

Since more homeowners are using bridge loans, the well-known banks, including RBC, Scotiabank, BMO, CIBC, and TD, all provide their mortgage customers with the option to get a bridge loan. However, you can always reach out to your mortgage broker for more options if you’re unsure whether your bank offers bridge loans. A mortgage broker can help you find alternative lenders who may be more flexible towards home buyers with low credit scores or inconsistent incomes.

Alternatives to bridge loans

The most common alternative is the home equity line of credit (HELOC), also known as a second mortgage, which allows you to borrow against the equity in your house. The lender will then use your home as collateral to guarantee that you will pay back your loan. This is very similar to a bridge loan, except the repayment period can be as long as 10 years later.

If you have a stable job and a good credit score, another alternative is a personal loan which doesn’t require collateral and is usually funded more quickly. Certain lenders can give you a decent-sized loan with lower interest rates and fees. However, if your credit score is not superb, you can still qualify for a personal loan, but it may have higher interest rates and more fees.

Overall, bridge financing is a great resource if your closing dates don’t match up. However, you should contact your mortgage broker to find out the pros and cons that specifically apply to you.

The post How bridge financing can help you buy first and sell later first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

For many Canadians, owning real estate requires creativity – and House Hacking is a creative solution. Through House Hacking, you could reduce or eliminate your monthly housing costs entirely. In this article, we digest what House Hacking is and its advantages and drawbacks. If done right, you could be on the road to living in your home for free.

What is House Hacking?

The goal of House Hacking is to cut your living expenses while you build home equity. The premise is to purchase a larger home than you need so you can rent out the remaining space and act as a landlord. Your tenants’ rent should cover the full or a substantial amount of your mortgage payments. All the while, it’s you who builds equity in the property.

What goes into house hacking?

House Hacking starts as soon as you look for a property – you must find a home you can live in and rent out. Some House Hackers opt to purchase a duplex or triplex or a home with a basement apartment. But you can simplify it further. For example, you can rent out an extra room in your house to start your House Hacking journey. The tenant’s rent in that other room, basement or unit goes toward your mortgage payment. Thus, you’re effectively building equity in your home for free!

When buying a home, you’re not only looking for your primary residence but an investment property. Therefore, you want to consider your neighbourhood and how you can renovate the property. University towns are great areas to look at, as they consist of student renters who are often ideal tenants. You’ll also want renovations that aren’t specific to your taste and appeal to the general population.

What rental income can I plan for?

Of course, for house hacking to work, you need to plan how much you can earn in rental income. That is very dependent on where you House Hack. Vacancy rates are tightening after they fell during the pandemic’s peak, so conditions are becoming more favourable for landlords. In many Canadian markets, you can expect at least $1000 of rental income, and in peak metropolitan areas like Toronto or Ontario, you may be able to get $2000 monthly. To determine how much you can earn, but sure to do research localized to the region you are looking to buy in.

You have to put your investment before your comfort

House Hacking is time-consuming and full of upfront costs

Purchasing a home is hard. It’s even harder when you’re trying to buy a larger home so you can House Hack. There will be costs that you will have to pay upfront, including a down payment, lawyer fees and realtor commissions. Additionally, you’ll likely need to renovate the property to make it desirable to tenants. Renovations will further take time, and it can be a stressful process for some. If you don’t have the time or capital for these upfront costs, then House Hacking may not be suitable for you.

House Hacking means being a landlord is your new part- or full-time job

The idea of your mortgage payments being paid by a tenant seems amazing. However, you want to remember that you’re a landlord, which will take up a sizeable part of your week. Despite what some believe, being a landlord is a job and requires attending to particular duties. You must prepare to find tenants, draft leases, and manage ongoing tenant issues and maintenance requests.

Because you’re living with your tenant, a rigorous tenant selection process is more important than ever. You’re not just looking for someone to pay your mortgage; you’re looking for someone to cohabitate with.

Property management is much easier when you live there

On the flip side, property management can be challenging when you’re far away. Often landlords may live in a city but have investments across the province. If a toilet’s clogged at 2 AM, a landlord often can’t just get out of bed and drive over. Calling a plumber or other professional to remedy the situation may also be expensive or challenging. This issue doesn’t exist when you House Hack because you live with your tenant. If there’s an issue at 2 AM, it’s a matter of going downstairs or to the other unit.

Tax considerations have both pros and cons

There are both tax benefits and disadvantages to House Hacking. In terms of benefits, House Hacking lets you deduct the costs of being a property owner, such as property taxes, house maintenance, utilities, and interest payments.

In terms of disadvantages, the Canadian tax system will not allow you to claim the whole property for your principal residence exemption—only for the areas of the home you live in. This is easily calculated if you’re in a duplex, triplex, or renting a basement apartment. But more complex situations such as a tenant that shares a kitchen and bathroom can create confusion about your tax bill. In this case, it is best to talk to a tax professional to see how much you can deduct and how much you can owe.

Final thoughts

House Hacking is a way to buy property while minimizing your financial expenditures. However, it’s not as simple as getting a “Get a House for Free Card.” It will take time and money, and whether you have enough of both to reap the benefits of House Hacking is dependent on your situation.

The post How a House Hacking Strategy in 2022 can reduce your Housing Costs to Zero first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

The legislation, which “governs real estate brokerages, brokers and salespersons” in Ontario, seeks to modernize how our real estate sector is regulated. TRESA has updated our laws in different phases. For phase one, instituted on October 1^st, 2020, the act contained updates, such as changing the rules in which advertisements can “refer to brokers and salespersons.” We are currently in phase two of implementing TRESA’s new regulations, with the latest phase set to create more ambitious changes. These changes will update the Real Estate Council of Ontario’s (“RECO”) Code of Ethics, enhance RECO’s powers, increase disclosure obligations for RECO registrants, and perhaps what has been the most newsworthy change, instituting Open-Bidding in Ontario.

Does TRESA bring Open-Bidding to Ontario? The Federal and Provincial approach to Blind-Bidding

Open-Bidding has been a hot topic for the past few years, as real estate prices have skyrocketed since the pandemic. The current Federal Government, led by Prime Minister Trudeau’s Liberal Party, ran on instituting Blind-Bidding for real estate sales. While there is currently no timetable on when the full Blind-Bidding ban will be implemented, the Canadian Real Estate Association is working on an Open-Bidding pilot. As of now, though, there is no currently detailed set of legislation proposed that would allow analysis on how the ban on Blind-Bidding would work, be implemented, or the effects on the real estate market.

Comparatively, we have more to work with regarding the new TRESA Blind-Bidding regulations. The Ontario Blind-Bidding approach is noticeably looser than the Federal Government’s approach to Blind-Bidding. The current Bidding system for real estate is blind; you are looking to buy a house from Jane, but Tom is looking to buy that house as well, and June also just decided to put in a last-minute bid. Real estate brokerages must tell June, Tom and you that there are three written Bids for Jane’s property. However, there is no obligation for Jane’s brokerage to tell each of you the dollar value of said written Bids. Under Ontario’s current regime for bidding, you can know the number of bids competing against yours, but not the dollar value.

The Ontario regulations create an “Open-Bidding option.” Blind-Bidding will still be available, but the seller can decide whether they want to engage in an Open-Bidding, or Blind-Bidding process. The new Open-Bidding Option will come into force in April 2023, along with the other recent changes from phase two of TRESA.

What is the effect of Open-Bidding on the real estate market?

That’s the billion-dollar question. In terms of a total blind-bidding ban, critics feel that such a policy is overhyped in terms of its effect on real estate prices. They propose that to truly reduce the average cost of a home, efforts to increase supply and change zoning laws would be more effective. Some proponents of Blind-Bidding bans agree that Open-Bidding isn’t sufficient to bring down housing prices but a necessary step that must be complemented by increasing supply and reforming zoning laws.

Those critiques of Blind-Bidding are better suited toward the Federal Government proposition. As the Ontario Open-Bidding Option is different, the comments vary from those of the Federal Government’s complete ban. Proponents, such as Tim Hudak, the CEO of the Ontario Real Estate Association, welcome the Open-Bidding Option, as the new regulation strikes “the right balance between adding more transparency to the offer process and protecting a homeowner’s right to sell their home how they want, instead of blanket bans on the traditional offer process.”

On the other hand, critics disagree with the new rule because of the discretion it gives to the seller. They believe that the goal is increasing transparency. Open-Bidding must be the only option to achieve that goal. Such transparency is more valuable to a functioning real estate market and society than the right to Closed-Bidding for sellers. Some critics are not necessarily proponents of Open-Bidding, but again critique the choice given to sellers, saying that either you go all-in on Open-Bidding, or maintain the current Closed-Bidding-only regime.

Perhaps Ontario’s Open-Bidding Option will impact the average price of real estate in the province. Still, if it does, it will likely not be as significant as how changing zoning laws and increasing supply can impact price. Whether you disagree or agree with the new rule, it probably depends on whether you believe sellers should have the option to engage in Open-Bidding, or whether Open-Bidding should be mandated for transparency.

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