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.

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.

An economic downturn could stress you out if you’re selling your home. A contracting and uncertain economy doesn’t usually yield top dollar for home sales.

At RankMyAgent, we aim to make the home selling process more manageable. So this article explains what a recession entails and tips to sell your home for the best price during a recessionary environment.

What is a Recession?

The traditional definition of a recession refers to two consecutive quarters (three-month periods — so two consecutive quarters equal six consecutive months) of declining Gross Domestic Product (GDP). But this definition comes with numerous asterisks.

Even if Canada faces two declining quarters, we may not be in a recession. We continue to face record-low unemployment rates, and in a recession, unemployment peaks.

A recession depends on numerous factors like employment, consumer spending, and GDP. An “official” recession usually occurs once a group of leading economists looks at these factors and determines we’re in a recession.

What Can We Expect During a Recession?

A recession’s outcomes and contributing factors are a “Catch-22” — i.e., the presence of the factors indicates a recession, but the same circumstances also result from an economic downturn.

We usually see the following during a decline:

• Layoffs: Businesses fear the unknown and want to reduce spending when the economy begins to tumble. You can expect layoffs in business departments that aren’t critical or where companies previously overhired.
• Less consumer spending: People are also fearful when we hit a recession. We’re scared of losing our jobs or taking a loss in the stock market. As a result, we might spend less and save more of our income for a rainy day.
• Depressed stock market: Investors may sell their stocks and choose safer investments. So, you can expect stock prices to decline. Some corporations also don’t fare well during a recession, and their stock price reflects that.
• Higher interest rates: This isn’t true for all recessions. But in our case, a recession may be caused due to the Bank of Canada increasing borrowing rates to tamp down inflation. This would make buying a home and making mortgage payments more expensive.

These factors can turn the residential home market in favour of the buyer. We’re more cautious about making significant financial decisions in a recession. We’re also unsure whether we can hold our job or afford increasing interest rates.

As a result, there are fewer buyers on the market. We might wait until economic conditions are more positive and confident before applying for a mortgage and making the largest purchase of our life.

But the number of sellers remains the same or even increases during this time. Some Canadians may need to sell their second home to cover costs or downsize to afford their mortgage in a poor economic environment.

Tips for Selling Your Home During a Recession in Canada

1. Rethink if You Need to Sell

Housing prices tend to peak before an economic decline and slide once a recession becomes a reality.

Selling in the middle of the downturn might not bring you the best price. Downturns tend to be buyer markets, where homebuyers have more leverage. You won’t likely have the same bidding wars or unconditional offers we saw a year ago.

Sometimes, you might not need to sell an investment property or move into a larger home right now. It’s best to consider whether entering the real estate market is required.

2. Sell Sooner Rather than Later

Past recessions show a history of dipping home prices. If you plan to sell in the near future, it’s better to do it as soon as possible. You’re only going to face tougher selling conditions.

Otherwise, you should wait until the economy is more positive before you sell. Home prices tend to fare better when there’s financial prosperity among Canadians.

3. Don’t Overprice Your Home

You might be used to seeing bidding wars and homes selling for hundreds of thousands of dollars over asking. But the market right now might not have the same prospects. You should temper your expectations to something reasonable.

Working with a real estate agent can help you set a reasonable selling price. Additionally, a realtor can guide you towards getting the best dollar for your property. They might suggest minor renovations or staging to bedazzle the prospects.

4. Give Your Home Some Minor Renovation

Minor renovations, deep cleanings, and restoring curb appeal can help move your home on the market. These changes make your home shine in photos and showings.

You don’t need to overhaul your entire kitchen. It may not be worth it in the current environment since labour is in short supply — contractors aren’t as open to negotiations or discounts. At the same time, home prices are going down.

Contributing your own labour by refreshing walls with a coat of paint or deep cleaning your carpets may be what you need to increase your chances of selling. A clean and refreshed home can help potential homebuyers envision themselves living there.

5. Consider Renting your Property Out Instead

Cities like Toronto and Vancouver are seeing record-high rent prices because surging interest rates have left prospective buyers unable to purchase a home — therefore, many Canadians continue to rent.

Some sellers who aren’t getting the offers they hoped for have turned to the rental market because the sky-high rent prices make being a landlord much more appealing.

If you aren’t in a rush to sell, renting out your property until better economic conditions might be an option to get the best return on investment from your property.

Recessions don’t have to be scary. Yes, there’s a fear of layoffs and depressed stock prices, but things rebound eventually. If you’re planning to sell your home during a recession, it’s vital to temper expectations. You can’t expect your home to sell for the same amount that homes sold for during a growing economy.

The post How to Navigate a Recession as a Canadian Home Seller 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.

Almost one year after going public, Airbnb has an enormous market cap of over $106 billion, which is approximately $60 billion higher than Hilton’s market cap and $93 billion higher than both Choice and Wyndham hotels. As a property owner, adding an Airbnb to your portfolio, or turning one of your current properties into one can become a highly profitable venture. However, like any business move, research is needed to make sure your Airbnb profits can be maximized.

How are Airbnbs doing in this stage of the pandemic?

While higher vaccination rates have allowed North America and other well-vaccinated countries to inch closer back to normal, it seems almost intuitive a business-like Airbnb would be disadvantaged in a pandemic. There is truth to that while Airbnb has faced difficulties such as having to lay off a quarter of its workforce, the company has weathered the pandemic better than some of its other counterparts in the hospitality industry. Airbnb, compared to companies like Expedia and Marriott, experienced much smaller drops in revenue during the advent of the pandemic. Since its IPO, Airbnb has had gains in revenue. While consumer trends in housing accommodations for travel have changed, seeing less short-term rentals and more longer-term stays, new Airbnb hosts have collectively made over $1 billion during the pandemic. If you are willing to attract longer-term rather than shorter-term tenants, and your Airbnb is located in a travel destination such as Toronto, Montreal or Vancouver, a profitable Airbnb may be in your future.

What are the regulatory burdens to making my property into an Airbnb?

It’s no secret that Canada is in a housing crisis, and some feel that something that contributes to that housing crisis are Airbnbs. Thus, regulatory risk is a serious consideration for those thinking of running an Airbnb. Airbnb regulation, like housing regulation, can be done at both the municipal and federal level, so different jurisdictions will approach Airbnbs differently. Toronto for example, requests that all short-term rents in a dwelling unit (essentially Airbnbs and other bed and breakfast type ventures that are rented out for less than 28 days) are registered with the city and collect a 4% Municipal Accommodation Tax.

Edmonton also requires short-term rental owners to have licenses for their dwelling, but no Municipal Accommodation tax like Toronto. British Colombia is more on Toronto’s end of the spectrum regarding Airbnb regulation, collecting 8% provincial sales tax and up to a 3% municipal and regional district tax on short-term rentals. BC is also a good example of how provincial regulations can mix with municipal regulations, as Vancouver (like Toronto) limits short-term rents to primary residences. Overall, there is quite a bit of variation in Airbnb laws through Canada and North America as a whole – New York for example, features a total ban on certain apartments being rented out for fewer than 30 days.

Before getting a lawyer, there are many online resources to educate yourself on your jurisdiction’s Airbnb regulations. Airbnb’s website features regulatory hubs for potential hosts in each city. Be you in Calgary, New York or anywhere else, Airbnb likely has a nice digestible summary of all relevant regulations an Airbnb host should know. Aside from Airbnb, Provinces and Municipalities also feature education resources, such as this 10 things you should know about short-term rentals article on the City of Toronto’s website. Of course, only lawyers can provide legal advice, but a simple google search can provide you with a quick baseline of knowledge of what you may be dealing with as an Airbnb host.

How should I run my Airbnb?

So, after examining the state of Airbnb overall and the regulatory burdens associated with short-term rentals, you’ve decided you want to proceed with owning an Airbnb. How do you run it? Considering that over 63.5 million reviews on Airbnb average 4.8 stars, excellence is the standard for a successful short-term rental venture.

Before you start Airbnb-ing, insurance is something you should strongly consider to protect your investment. Airbnb offers its own host insurance, but other private sector entities can provide insurance as well. Once insurance is settled, there then comes the question of how you stock your Airbnb. Perhaps you have great taste and a love of furniture and interior design – you can probably skip this paragraph then. However, if you need a little help deciding what to buy to make your short-term rental unit amazing, HostGPO.com is a great resource. HostGPO is a buying group for short-term rental companies, where members get access to “the best deals on furniture, supplies and more”. For subscribers or those who are using their 3-month free trial, Airbnb owners can get access to brands such as Pottery Barn, Brooklinen, Helix Sleep and more for your furniture, amenities and textile needs.

Once your Airbnb is stocked and looking nice, you must now post your listing with photographs of your Airbnb and a written description. The photograph is key – like how real estate photographers can help a listed house get sold, Airbnb photographers can help owners receive new tenants. It is said that the right photographer can get you 24% more bookings, and a 26% increase in Airbnb prices. Once people purchase a stay at your listing because of the excellent photo, they get to stay in your nicely stocked property, and the five-star reviews will start rolling in.

The Airbnb learning never stops

Like any continuous venture, the learning of running an Airbnb never stops.Learnbnb.com is one of many excellent online resources that can guide new Airbnb owners to success. Google (or Bing!) is your friend and can lead you to new information to help maximize your Airbnb investment. These resources can lead you to continually improve and refine your Airbnb process. Airbnb also publishes important information for owners, that can give data points that suggest guests note helpfulness, communication and friendliness as important factors in getting a five-star review. Any investment has risk but done right, an Airbnb can be very profitable. Download the Airbnb app, and get started.

The post How to turn your property into an Airbnb first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

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 what 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?

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. But keep in mind during the home purchase process that you’ll be house hacking so you can plan.

When buying a home, you’re not only looking for your primary residence but an investment property. Therefore, you want to consider things like your neighbourhood and how you can renovate the property. Areas with post-secondary institutions can potentially reward you with 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.

Unlike BRRRR, house hacking doesn’t require that you find a gem of an undervalued property. Generally, your goal isn’t to be profitable but to reduce your monthly expenses. But, it’s still important not to overpay for a home and to find the best deal available.

Build equity in your property with fewer costs

Whenever you make a mortgage payment, part of the payment goes towards the principal of the loan. By renting out part of your home, you can make this payment with less of your own money, in that you’re using someone else’s money—the rent from your tenant. Thus, you’re effectively building equity in your home for free!

Begin your real estate investment journey

While capital is also an issue, individuals commonly fear real estate investing because of their lack of knowledge. To be a real estate investor and landlord, you need to understand the role’s financial, legal, general contracting, and other aspects.

However, house hacking ignites your learning because you begin to act as a landlord and real estate investor on a small scale. If you continue to invest in real estate, you’ll already know how to find and manage tenants and attend to many legal and financial situations.

Property management is much easier when you live there

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.

Your quality of life may be reduced

If this is your first home, you want to make the house really feel your own. But when you house hack, this may not always be possible. For example, House hacking may mean you have a tenant in the bedroom beside you or that you can’t use your basement because it’s currently a rental apartment.

There are tons of upfront costs and work

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 many upfront costs for a down payment, lawyer fees, realtor commissions, and more. 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 necessary time or capital to manage it, house hacking may not be for you.

Being a landlord is a part- or full-time job

The idea of having your mortgage payments primarily covered by a tenant seems nice. However, you want to remember that you’re a landlord now. Despite what some believe, being a landlord is a job and requires attending to particular duties. You need to prepare for finding tenants, drafting leases, and managing ongoing tenant issues and maintenance requests.

Because you’re living with your tenant, the renter selection process is more critical than usual. Remember, this person isn’t only a monthly cheque but someone you’re living with or living beside.

Tax considerations have both pros and cons

There are both tax benefits and disadvantages to house hacking. On the pros side, house hacking lets you deduct the costs of being a landlord, such as property taxes, house maintenance, utilities, and interest payments.

However, the Canadian tax systems won’t 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 situations such as a tenant that shares a kitchen and bathroom with you make it more complex. It’s best to speak to an accountant or tax professional to understand where your tax liabilities lie.

Final thoughts

House hacking is a great way to build equity in your home while reducing your monthly costs. However, there are many advantages and disadvantages to it, and it’ll depend on your circumstance whether it’s a right fit for you.

The post How House Hacking Can Reduce Your Housing Costs to Zero first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

Some argue that the BRRRR strategy isn’t possible in Canada because of expensive home prices in populated areas and Canadian banking regulations. But individuals such as Matt McKeever have shown it’s possible. Especially in smaller cities or university towns.

This article looks a bit deeper into the strategy and reviews some of the things you should look out for if you engage in a BRRRR project.

This heated market may make that a challenge or seemingly impossible. But some homes may remain under market value due to severe flaws that regular homebuyers would run away from.

For example, homes with a strong odour or need for significant repair may ward off buyers who don’t want the hassle of finding contractors and renovators. Yes, the house might smell like cat urine, but that’s also the smell of money to real estate investors.

Analyzing the numbers

A successful BRRRR project relies on the numbers working out. If they don’t, you could end up with a loss on your hands or insufficient cash flow to pay bills on time. This could spell disaster.

The numbers include the property’s purchase price and the cost of renovations, utilities, taxes, and more. You additionally need to figure out your property’s rental price and its potential post-renovation value. The renovated property value ultimately determines how much cash you can squeeze out of the property through a refinance.

Rehab

The rehab portion of BRRRR is usually the most intense. It comes with substantial costs and the management of various contractors and other stakeholders. As a result, delays to your renovation can ultimately throw a wrench into your project.

Areas that provide the best return on investment

Properties that need the most repair are often the best to purchase. The following areas are some of the best rehabs to increase the property value of an old or wrecked home.

• Roofs: Installing a new roof can provide a solid return on investment when it comes to a home appraisal during the refinance stage
• Kitchen & Bathroom: Renovating these two home areas usually increases the home’s value the most. These renovations can benefit your home value appraisal and make your property more desirable to future tenants.
• Adding additional bedrooms or bathrooms: If you’re accustomed to home listings, they’re commonly based on how many bedrooms and bathrooms are in the property. If there’s reasonable space to add a bedroom or bathroom, you could substantially increase its market and rental value.
• Turning a single home into a duplex: This can be a substantial renovation that often requires complex city approvals. But if you turn one house into two, it can mean substantially more rental income too.

Be careful what you take on

You may find some properties at a severe discount due to issues such as mould or damage to the foundation. Although it might seem like a good buy, these issues can often take substantially more effort to repair. If you don’t have significant experience in these areas of home improvement, it’s hard to properly project your costs, which means analyzing the numbers will be challenging.

Rent

If you’ve completed the proper renovations to make the property livable and desirable and the location is good, it shouldn’t be hard to find a great tenant. In addition, renting out the property provides cash flow to pay off mortgage and interest payments. Thus, allowing you to build equity in the house.

However, being a landlord is a job on its own. It involves screening and selecting tenants and responding to maintenance requests. While many may consider being a landlord as “passive income”, you need to be ready to unplug a toilet at 2 AM.

Alternatively, you could solicit the help of a property manager, but this ultimately eats into your profits and could hurt your project’s cash flow.

Refinance

Equity sitting in your investment property is not valuable. However, if you can turn that equity into cash through a refinance, you can invest this cash into another property.

When you head to a lender for a refinance, they’ll usually require a home appraisal. A home appraisal helps you and your potential lenders understand the value of the renovated property in today’s market. A lender may then let you borrow a certain percentage of the appraised value, which is capital you can put to work on your next deal.

Lastly, due to the nature of the loan and the risks that come with a BRRRR project, significant banks may not provide a refinance. However, it’s still possible to refinance through a B lender or private lender in such a case.

Repeat

If you’ve successfully refinanced your BRRRR property, it’s time to look out for your next project and complete the whole process over again.

Overall, the BRRRR strategy is a great way to develop your real estate portfolio. Just ensure you sufficiently analyze the numbers, choose an undervalued property, and proceed with the proper renovations. This will allow you to find quality tenants and obtain a favourable refinance.

The post Using the BRRRR real estate investment method in Canada first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

To fund these developments, prospective condo owners have the option to pre-purchase units before they’re even built. These units are commonly referred to as a pre-construction. If played right, a pre-construction can be a fantastic investment.

This post is all about pre-constructions. It discusses the benefits and cons of purchasing one, how the buying process works, and what questions to ask before signing the purchase agreement.

The Pros and Cons of Buying a Pre-Construction

The value of pre-construction condos is hotly debated due to the various pros and cons. Because pre-constructions are not built yet, it’s an opportunity to purchase a condo in the future at today’s prices. Although you need to pay a deposit and downpayment now, these costs are more manageable than the downpayment and mortgage of a resale property.

Another advantage of a pre-construction is the ability to customize your unit, meaning you can choose the countertops and appliances in the unit. Speaking of appliances, purchasing a brand new unit means that appliances, cable wiring, alarm systems, and other fixtures are all brand new. The need to replace these fixtures likely won’t appear for the next decade.

Although these units may look like the greatest purchase ever in the showroom, there are a lot of downsides to them. First, what you see in the showrooms and in the sales brochures are often not the reality of what you get. These marketing materials are made to give you the best impression of the product. It’s common that maintenance fees are skewed towards the low-end and that completion dates are optimistic. So, if this is an investment property, it’s hard to tell what your expenses will be or when you can expect to start renting the unit out.

What’s worse than a delay is the potential that a pre-construction is cancelled entirely. This occurs when developers can’t secure financing, have zoning issues, or can’t secure enough pre-construction buyers, among other reasons. Though with variation province to province, you would get your deposits back in this case, of course.

Lastly, there are various fees, aside from the purchase price and condo fees, that you need to account for. There are not only closing costs, but also fees unique to new developments such as development and education charges. Even items such as the installation of water and gas metres may be part of your bill. This ultimately depends builder to builder.

The Purchase Process

How to Pay for a Pre-Construction

One of the biggest drawing factors to purchasing a pre-construction is that you don’t need to pay the downpayment all at once. It’s made in staggered payments, which vary builder to builder. One example could be

• 5% of the purchase price with offer
• 5% of the purchase price after 30 days
• 5% of the purchase price after 90 days
• 5% of the purchase price after 180 days

When paying a 20% downpayment, it’s much easier to pay the amount over half a year than all at once. This gives you the opportunity to secure the unit with only 5% of the purchase price.

Cooling Off Period

To make sure you’re not forced to make a decision due to the limited supply of units, some provinces regulate a “cooling off” period after you pay your deposit for a pre-construction. In Ontario, this is 10 days while British Columbia allows for 7 days. During this time, you can renege the purchase agreement without consequences.

The cooling off period is also an opportunity to do your due diligence on the pre-construction. This means bringing the paperwork to your lawyer to check for any red flags. The period also allows you to find financing for the rest of the purchase price.  

The Questions You Need to Ask before Buying

Who’s the builder? A condo developer’s reputation is one of the most important factors in buying a pre-construction. Due to the demand for condos in major Canadian cities over the past few years, many new builders have joined the game. These builders have plenty of capital and leverage but often lack experience, which results in a poor end product. It’s best to find someone with a good reputation who has had past projects with satisfied tenants. Researching the builder can also provide insight on how long their past developments were delayed for and if they delivered on the promises made in sales brochures and showroom floors.

Who are you buying this unit for? Are you buying the condo for yourself, for a long-term rental, or for a short-term rental? Make sure to check the condominium by-laws to see if short-term rentals are even allowed. If you’re purchasing for yourself, could you tolerate potential delays or not knowing who your neighbours will be?

Location: Of course, location is important. But keep in mind whether the area is somewhere renters want to live if you’re purchasing as an investment. It’s also good to look into whether the surrounding areas have been approved for development. It would be horrible to purchase a pre-construction only to discover a chemical plant is being built right beside it. Lastly, what’s the location prospected to be like by the time the development is done? Is the area going through gentrification or heading downhill?

A pre-construction condo can be a great investment. But make sure to keep in mind the benefits and downfalls of purchasing one. The payment structure and cooling off period are handy tools in the buying process, though you must make sure to ask who the builder is, who you’re buying the unit for, and about the location you’re buying into.

The post What You Should Know before Buying a Pre-construction Condo first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

Enlisting the help of a realtor could solve all these issues. In this article, we explain how a realtor provides access to rentals that you can’t find yourself, helps with the heavy lifting in finding and securing a new home, and provides valuable expertise in the rental process—especially if you’re moving to a new city. The best part is that it won’t cost you a dime.

Access to exclusive listings through MLS

You may be looking to rent an apartment by scouring websites such as Kijiji or Craigslist to find that perfect deal. In markets with low vacancy rates, this is a nightmare. Often, the second a rental is posted, dozens of prospective tenants call in. By hiring a realtor, you avoid these issues.

Although MLS is publicly searchable through Realtor.ca, there’s a 48-hour lag before non-realtors can see these listings. Thus, in cities with low vacancy rates, it’s common for the listing to be already gone by the time the public can lay eyes on it.

Helping with the nitty-gritty of renting

If you live a busy schedule, your real estate agent can also help with the “heavy lifting” of finding a property. This includes finding an available property and closing your rental agreement with the landlord.

After telling your realtor what you’re looking for and your price range, he/she can sift through the hundreds of listings on MLS and other sources to find the perfect fit for you and arrange viewings. They’ll also drive you around to view each place! This can save valuable time that would otherwise be spent calling landlords to set up an appointment to view the property and scouring the internet for your next home.

If you think you’ve found the home or apartment of your dreams and want to make an offer, the advantages of a realtor continue to shine. Because agents deal with rentals so often, they know exactly what the process is, what forms you need to fill out, and what document to provide the landlord. They can help you source papers, such as an employment letter when requested by the landlord.

An agent provides insight into both the rental process and the local real estate market, which is critical when you’re moving somewhere new.

Their expertise can cut out rental listings that are sketchy. The agent also understands your rights as a tenant and makes sure that landlords don’t do illegal acts such as ask for a security deposit in certain Canadian provinces. These two benefits can help save you from common rental scams, something that’s becoming more common as property markets get more competitive.  

Ultimately, your realtor is there to look out for you. He/she can pick up on uncommon or illegal clauses in the lease agreement that you may not entirely understand. And due to their knowledge of the local market, they know or can find out if certain buildings have a bad reputation. For example, some condo buildings may have a history of cockroaches or moulds or were designed by a developer with a reputation for low-quality products.

If you’re moving to a new city, it’s better to hire an agent who knows the market than bothering your one or two friends who live in the city, asking them about every neighbourhood. Real estate agents know their city and the neighbourhoods well. They understand which neighbourhoods are ideal for you, whether their family-friendly, commuter accessible, and much more. They can also prevent you from taking that value listing that turns out to be in the rough part of town.

You don’t pay—so what’s in it for the realtor?

There are many realtors who won’t touch rentals. Other just don’t advertise the fact that they do work with renters. The commission for rentals is much lower than if the agent had sold the property to you. While you, as the tenant, don’t have to pay anything, the landlord usually pays a commission valued at the first month’s rent. This commission is then split between the landlord and the tenant’s agent and any brokerages they work with. So, an agent would ultimately have to take on a considerable number of deals to turn a profit.

So why would real estate agents even help a renter? It’s usually to build a client base and hope that today’s renters become tomorrow’s homebuyers. If you’re satisfied with your rental, you’ll likely go back to the same real estate agent when you buy a home, and this is where the agent would profit. Better yet, you may even refer some of your home-buying friends and family to the agent. This is why, despite the fact that helping you find a rental is unprofitable, a good real estate agent still puts their best foot forward, hoping that your satisfaction makes them a hefty commission down the road.

If you’re looking for a rental property in a market with a low vacancy rate or in a city that you’re not familiar with, then hiring an agent is a must. Even if you aren’t in one of these situations, hiring an agent is still beneficial and likely costs you nothing. So why not take the chance?

The post Should you enlist the help of a realtor to find your dream rental? first appeared on RankMyAgent - Trusted resource about Buying, Selling and Renting.

Nothing is certain, but with a COVID-19 vaccine on the way, the market may return to something closer to what we’re used to. However, the pandemic left us with low-interest rates and housing trends, such as a desire for more living space, that will likely continue.

This article discusses three things we can expect from the Canadian real estate market in 2021. This includes:

• A return to a typical real estate cycle with higher home prices;
• An increasing demand for single-family homes in suburban cities; and,
• A rebound of the condominium apartment market.

The Real Estate Cycle Should Return to Normal with Even Higher Prices

In March 2020, the effects of COVID-19 finally hit Canada. The federal and provincial governments implemented new policies, such as closing non-essential businesses. People generally stayed indoors, and realtors could no longer hold open houses.

Although the spring season is usually when real estate markets rebound from their winter lows, home sales in Canada dropped drastically last spring. This downturn caused a “delayed spring market” which led to record-breaking sales in the summer and fall months of 2020. The Canada Real Estate Association (CREA) predicts that 2020 should end with a record national sales number of 544,413 units sold, an 11.1% increase from 2019.

Many real estate agents and professionals believe that the sales cycle will return to normal this year. That means we likely won’t see another spring drought or delayed market. The COVID-19 vaccine brings more certainty to our safety, and this hopefully translates to some normalcy returning.

People who have been holding out to sell or buy their homes due to the pandemic may feel more confident with a vaccine circulating in Canada. As a result, many expect that real estate activity will increase in 2021. The low-interest rates, reduced spending habits during lockdowns, and the vaccine may likely drive demand for homes and push average home prices across Canada upwards. CREA forecasts that home prices in 2021 will rise by 9.1%. Additionally, the 2021 RE/MAX Housing Market Outlook Report estimates that national residential home prices should increase 4-6% in 2021.

Single-Family Homes Will Continue to Drive Demand in the 2021 Real Estate Market

The move to single-family homes in suburban areas is a pandemic-induced trend we saw in 2020 that’ll likely continue into 2021. With the closure of offices and a need to stay home except for essential tasks, many city-core dwellers realized that a 900-square foot condominium is not enough space. Being stuck between the same four walls can be maddening!

As a result, many Canadians took advantage of the low-interest rates to move into a bigger, single-family home. These homebuyers commonly looked to areas further from the downtown office centres due to the ability or requirement to work remotely. For some, this means that they can move to the cottage country and only have to commute to their kitchen table or home office to start their workday.

Mid-size cities can provide attractive amenities but at a lower cost of living than Toronto or Vancouver. Houses in less dense areas are also usually better value. Small towns can provide even more value and possibly more greenspace.

For example, Ottawa became one of Canada’s hottest markets in 2020. In November, home prices grew 19% year-over-year, and people don’t believe it’s stopping any time soon. A Royal Lepage market survey predicts that Ottawa home prices will increase by 11.5% year-over-year in 2021.

The 2021 Condominium Market Will Rebound Once Travel and Universities Reopen

The condominium markets of busy cities such as Toronto declined in the later months of 2020 — a rare sight. Condo apartments in Toronto’s 416 area decreased 3.0% year-over-year in November 2020. These once busy condo markets have also declined in rent prices as it becomes a tenant’s market.

The fact that many city dwellers are moving to single-family homes is a large factor. But restrictions on travelling in and out of the country is also a factor. Short-term rentals for apartments are no longer viable for landlords as travel dries up. As a result, many of these apartment owners attempt to list their properties for long-term rentals or just sell their units.

In 2021, we may see investors take advantage of the declining condo apartment prices in core areas and low-interest rates to add to their rental portfolio. It may also be an opportunity for first-time homebuyers to get their foot into a competitive real estate market. This is why the condo apartment markets in busy Canadian cities will likely return to normal.

Many real estate professionals suggest locking in a lease with a favourable monthly rent now because 2021 will likely return rent prices to normal. As the vaccine begins to roll out, it’s expected the Canadian government will slowly lift travel restrictions, and tourism and demand for short-term rentals will boom again.

Additionally, new immigrants commonly start as renters. Between 2021 and 2023, Canada aims to welcome approximately 400,000 new immigrants each year. And these new immigrants will likely push up demand for condo rentals.

Hopefully, 2021 will be the year when the pandemic finally ends. The vaccine brings plenty of hope. Canada’s real estate markets may look more normal than last year, but the trend towards larger homes in the suburbs and smaller cities remains. Once travel returns, we can also expect that the condo apartment market return to where it was pre-COVID-19.

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