My Agent Mike

Hi! I'm Mike Rapkoski.

Sales Representative, Keller Williams Referred Urban Realty Inc., Brokerage

I have spent the past 18 years assisting clients build their wealth through making wise choices with their real estate buying and selling. I am passionate, dedicated and committed to providing world class service to my real estate clients.

26 April 2017 ~ 0 Comments

Are your tenants costing you money?

With all the talk of late of the government’s recent request to change the provincial rent control laws to include buildings built after 1991 to the existing cap program*, it has some wondering what the outcome of the rental market in Toronto and its impact might be?

A few months back there were a few tenants who went to the media complaining that their rents were being doubled from $1660/month to $3320/month. What wasn’t spoken much about was that these units were owned by the bankrupted developer Urbancorp, and that their trustee company KSV, most likely were doing so to evict the tenants so they could sell the units to offset the millions of dollars owed to hundreds of people who were hit hard by Urbancorps bankruptcy.

Hundreds of thousands complain that Hydro rates have doubled; yet a few complaints come in and now we have new rental laws being enacted! That rant is for another day. J

One of the new rental laws is that rent increases will be capped at 2.5% on all buildings.

What will this mean to you if you are the owner of a condo that you have been renting and haven’t increased the rental rates in years? You were happy with your current tenant and although expenses have been increasing on your unit at least in the 5%-6% range (property taxes and maintenance fees aim between 2%-4% respectively at minimum to be raised) you’ve been nice (or lazy) and have not sent out increases.

Do you sell? Do you start to make scheduled visits to look further into whether your tenant has been maintaining the place? Do you hold off on replacing or repairing items in need but that isn’t an absolute necessity?

All valid points but let’s look at what most likely will happen.

For starters, I would suspect that everyone who can legally do so would send a notice to increase rents immediately. After all, you have to play catch up now in order so that you can maintain the value of your investment. Wear and tear is a reality. And as mentioned above, so are increasing taxes and maintenance fees.

Many will start considering cashing out on their investments as we all are starting to learn that when politicians act swiftly, there is no notice or phased in grace period anymore. When will the Federal Liberals enact higher capital gains taxes? Who knows? But you can be assured that if they do, it will be without notice and take affect immediately.

Those who want to keep their investment units may start to pay more attention and look for ways to legally evict a tenant for contraventions in the lease agreement. Have a no pet’s clause but discover one on your scheduled visit? More people living in the unit who aren’t on the lease?

There are so many scenarios that can play out. Whatever your course of action makes sure you are well versed in both your rights and your tenants right. The Landlord and Tenant Board website is a good resource http://www.sjto.gov.on.ca/ltb/ and place to familiarize yourself. If you have specific concerns or questions I encourage you to contact me so we can discuss what is the best course of action for you to take.

* The proposed changes will only become law if the bill passes final reading in the legislature and is signed by the Lieutenant Governor.

 

24 April 2017 ~ 0 Comments

Provincial Government Announces Housing Plan Including Non-Resident Speculation Tax

The provincial government has announced a 16 point plan intended to improve housing affordability, including a Non-Resident Speculations Tax, and a commitment to review the Real Estate and Business Brokers Act, 2002.

 

The provincial plan includes the following actions:

  • Introduction of a 15 per cent Non-Resident Speculation Tax (NRST) on the price of homes in the Greater Golden Horseshoe (GGH) purchased by individuals who are not citizens or permanent residents of Canada or by foreign corporations.  The proposed tax would apply to transfers of land that contain at least one and not more than six single family residences. “Single family residences” include, for example, detached and semi-detached homes, townhomes and condominiums. The NRST would not apply to transfers of other types of land including multi-residential rental apartment buildings, agricultural land or commercial/industrial land. The NRST would be effective as of April 21, 2017, upon the enactment of the amending legislation. Binding agreements of purchase and sale signed on or before April 20, 2017 are not subject to the NRST. Refugees and nominees under the Ontario Immigrant Nominee Program would not be subject to the NRST. Subject to eligibility requirements, a rebate would be available for those who subsequently attain citizenship or permanent resident status as a well as foreign nationals working in Ontario and international students.
  • Expanding rent control to all private rental units in Ontario, including those built after 1991. Rental costs will only rise at the rate posted in the annual provincial rent increase guideline. Over the past ten years, the annual rent increase guideline has averaged two per cent. The increase is capped at a maximum of 2.5 per cent. Under these changes, landlords would still be able to apply vacancy decontrol and seek above guideline increases where permitted. Legislation will be introduced that, if passed, will enact this change effective April 20.‎
  • The government will introduce legislation that would, if passed, strengthen theResidential Tenancies Act to further protect tenants and ensure predictability for landlords. This will include developing a standard lease with explanatory information available in multiple languages, tightening provisions for “landlord’s own use” evictions, and ensuring that tenants are adequately compensated if asked to vacate under this rule; prohibiting above-guideline increases where elevator work orders have not been completed; and making technical changes at the Landlord-Tenant Board to make the process fairer and easier for renters and landlords. These changes would apply to the entire province.
  • Establishing a program to leverage the value of surplus provincial land assets across the province to develop a mix of market housing and new, permanent, sustainable and affordable housing supply. Potential sites under consideration for a pilot project include the West Don Lands, 27 Grosvenor/26 Grenville Streets in Toronto, and other sites in the province. This builds on an agreement reached previously with the City of Toronto to ensure a minimum of 20 per cent of residential units within the West Don Lands are available for affordable rental, with an additional 5 per cent of units for affordable ownership.
  • Introducing legislation that would, if passed, empower the City of Toronto, and potentially other interested municipalities, to introduce a vacant homes property tax to encourage property owners to sell unoccupied units or rent them out, to address concerns about residential units potentially being left vacant by speculators.
  • Ensuring that property tax for new multi-residential apartment buildings is charged at a similar rate as other residential properties. This will encourage developers to build more new purpose-built rental housing and will apply to the entire province.
  • Introducing a targeted $125-million, five-year program to further encourage the construction of new rental apartment buildings by rebating a portion of development charges. Working with municipalities, the government would target projects in those communities that are most in need of new purpose-built rental housing.
  • Providing municipalities with the flexibility to use property tax tools to help unlock development opportunities. For example, municipalities could be permitted to impose a higher tax on vacant land that has been approved for new housing.
  • Creating a new Housing Supply Team with dedicated provincial employees to identify barriers to specific housing development projects and work with developers and municipalities to find solutions. As well, a multi-ministry working group will be established to work with the development industry and municipalities to identify opportunities to streamline the development approvals process.
  • The province will work to understand and tackle practices that may be contributing to tax avoidance and excessive speculation in the housing market such as “paper flipping,” a practice that includes entering into a contractual agreement to buy a residential unit and assigning it to another person prior to closing.
  • Working with the real estate profession and consumers, the province is committing to review the rules real estate agents are required to follow to ensure that consumers are fairly represented in real estate transactions. This includes practices such as double ending. The government will modernize its rules, strengthen professionalism and improve the home-buying experience with a goal to make Ontario a leader in real estate standards.
  • Establishing a housing advisory group which will meet quarterly to provide the government with ongoing advice about the state of the housing market and discuss the impact of the measures in the Fair Housing Plan and any additional steps that are needed. The group will have a diverse range of expertise, including economists, academics, developers, community groups and the real estate sector.
  • Educating consumers on their rights, particularly on the issue of one real estate professional representing more than one party in a real estate transaction.
  • Partnering with the Canada Revenue Agency to explore more comprehensive reporting requirements so that correct federal and provincial taxes, including income and sales taxes, are paid on purchases and sales of real estate in Ontario.
  • Making elevators in Ontario buildings more reliable by establishing timelines for elevator repair in consultation with the sector and the Technical Standards & Safety Authority (TSSA).

Source: Toronto Real Estate Board

24 April 2017 ~ 0 Comments

What should we expect with the Liberal governments housing plan?

The provincial government has announced a 16 point plan intended to improve housing affordability, including a Non-Resident Speculations Tax, and a commitment to review the Real Estate and Business Brokers Act, 2002.

So what should we expect the impact will be on our current hot housing market?

I don’t see much of anything changing with regards to the announced changes in the short term.

The housing market ebbs and flows and without a doubt, we currently have a major supply issue. This is clearly evident with the many buyers having to look out far across the GTA for affordability reasons. Nothing in the Liberal’s fair housing plan truly addresses supply.

So let’s talk demand. 15% foreign investor tax. Sounds sexy…and protectionist at its core, but in reality will have little affect other than raise more income for a fiscally inept group of misfits.

Are foreign buyers in the GTA a problem or not? The government itself at various times, has said no it’s not, it’s a very small issue. Maybe 5% of sales are related due to foreign buyers? To wash your money from an unstable and corrupt environment to one where stability (in comparison) is greater, even the mafia would be happy to pay 15 points for this wonderful opportunity. Zero long term affect.

Rent control laws being adjusted. Almost every housing related economist in the world agrees that this will have the reverse intended affect. Rental units will tighten, existing low rent buildings will fall into disrepair (maybe even rival city owned and managed properties?) It will become harder to lock down a good rental apartment and Airbnb’s will become even more prevalent (a real contributor already to rental shortages).

I would venture to say that just the sheer amount of conversation from our three levels of government, Bank of Canada, the media (although we need to come up with a new term for this group as they mostly seem to be self interest slanted), will have a greater affect on sales slowing.

The real estate industry in Ontario accounts for 20% of its GDP. All levels of government benefit financially to a large degree. It’s no coincidence that they led with their first point being the 15% F.B.T.

Demand will soften in time as frustrated buyers remove themselves from looking. Additional sellers will come onto the market hoping to cash in on the crazy high prices some are fetching, allowing the remaining buyers opportunity to purchase.

I just don’t see much else happening in the short term, which is unfortunate in some ways. You want to feel that people who have grown up in our city, have a realistic chance of owning property in it. But this is not the Canadian way. We don’t grant land rights to its citizens.

People make choices on how to live their lives and real estate markets ebb and flow.

 

16 March 2017 ~ 0 Comments

Do we really have a housing shortage?

Almost everyone knows the Toronto real estate market has gone mad as of late, although many would like to have you believe for the most part; that all is okay and the madness is justified.

Governments manipulate interest rates to mask affordability. Banks either prop up or speak down housing depending on how it currently rates to their bottom line. Real estate associations tell you it’s not the “foreign” money driving high prices, its mainly local move up buyers and demand behind the recent high percentages of price escalation.

Let’s set the entire above aside and focus on who loses when the party is over and the lights are turned back on.

I’ll start by saying that not all properties or buyers may be at risk. We all can see that demand is high for choice quality houses in highly desirable neighbourhoods. The same can be said for condominiums as well.

Buyers who are selling property in this market and moving up, down or sideways are taking gains from the sale of one (and sometimes two) property and parlaying their gain often into a more desirable or suitable property. They too are not as much at risk.

Who is at risk? Maybe it’s better to say what is at risk! The entry-level condo market is becoming insane in its price per square foot. Rent, although on the rise the past two years, is not close to what it would cost to purchase and carry an average condo downtown, or in the west and east sides.

You would need $4 per sq.ft in rent after investing in a $475,000 condo with a $100,000 of your own money invested to break even. It’s not happening as of yet so unless rental rates continue to rise, you are operating at a loss on a monthly basis. What happens when interest rates rise on renewal?

What you are also doing is taking a unit that should sell for say $425,000 to an end user (owner occupied) out of the market by pushing up pricing, forcing the first time buyer away from home ownership and the chance to build equity and appreciation. Instead they become renters in a long cycle.

So what happens then? A dwindling supply of first time buyers who are forced into buying what used to be a move-up home/condo price tag as their first home? People trapped into a first time buyer type product because they can’t move-up due to very high prices? What happens when/if rent becomes so prohibitive that people in there 20’s, 30’s and 40’s can’t afford to live within a reasonable commute to where they work?

Our transit system is a joke! It’s nowhere near ready to support density growth outside the downtown core and this is now, not becoming, a very real problem.

Where and how it ends nobody knows. And in someway I hope I’m off in what I’m currently seeing in the marketplace. But don’t believe for a minute that our government’s encouragement and support of foreign investment in real estate isn’t a very big part of the problem.

11 February 2017 ~ 0 Comments

Spring has come early and sellers are doing very well!

The Toronto real estate market is on fire as of late, and properties that have come early to the market are reaping very big rewards!

Detached homes continue to be in very high demand everywhere, and semi-detached and townhomes in the trendier parts of Toronto, multiple offers are the norm and will continue to be so for a long time to come.

Rental demand along with buyers who are switching their focus from the house market to a condo, has translated into multiple offers on many condos as well.

So when will this hectic pace end many buyers are wondering? Not anytime soon.

Supply is near all times low on the house side of things and with demand far exceeding new listings that are coming to market, it will continue to be a battle to buy. Battles can be won, you just need to be prepared properly, and act swiftly and confidently when the right opportunity presents itself.

Rental demand and costs to rent are rising as well, so this can weigh in on housing availability.

In 2016 there were approximately 20,000 sales of detached, semi-detached and townhouses in the 416 area of Toronto. Add in about 21,000 condo sales (neither include all new construction sales figures).

When you look at this on a monthly basis and take into consideration how many neighbourhoods this represents, you can see the picture clearer. Some neighbourhoods have a few dozen sales throughout the entire year in certain price points.

If these areas are seeing 10-15 offers per property consistently, then it may take a long time to get your purchase. This goes back to the being prepared for when the opportunity presents itself. Make sure you are.

Owning real estate in Toronto is truly a wonderful thing. Be it a house or condo where you will live, laugh and make lifetime memories, or that of an investment property which will help build your wealth. Even though it can seem like madness trying to get in or move up, in the end it is well worth it. Happy house hunting!

 

 

31 January 2017 ~ 0 Comments

TREB predicts 10%-16% increase in house values for 2017

The Toronto Real Estate Board released today their forecast for the GTA housing market for 2017. Much to the shock and awe of many, they are predicting an increase in house prices between 10%-16% over 2016 prices, mainly due to the constriction of supply. Activity is also forecasted to stay the same as the past few years with 100,000+ in unit sales.

Why such a bullish forecast when there is so much talk about a housing bubble? It’s simple, supply and demand.

It’s well known that Toronto houses (detached, semi and townhomes) have been lacking in supply over the past many years. Homegrown buyers have been fighting for ever in multiple bidding scenarios when a house comes on the market anywhere near their hopeful budgeted purchase price.

Now with many parts of the world enacting protectionist measures to keep foreigners out, Brexit and the United States for instance. What does this mean for housing costs in a country like Canada which embraces immigration and has played a large part already in fueling the massive rise in housing in two of its biggest markets, Toronto and Vancouver?

House prices will continue to rise as more people who still view Canadian housing as affordable continue to immigrate here, and that is great. It’s often referred to as the Canadian dream (and in past times one that was shared with our neighbours to the south) where you are welcome to come and make a better life for you and your family. Owning a home is part and parcel of the dream!

What seems to be happening to the buyer, who was born in Toronto, educated here then enters the workforce in hopes of one day owning a home? Many are being turned into a generation of renters is what we’ve been hearing about. The housing market is too expensive and too hot to compete in!

For the record, I don’t have a protectionist viewpoint in matters relating to our housing markets. But it does bring up a point of view that can easily paint the bad “foreigner” for driving up housing prices when in reality it’s our Canadian government who set the standards and rules both on who can come in to the country, and who can buy real estate here.

Nonetheless, It will be interesting to see how 2017 plays out in Toronto’s real estate market.

16 January 2017 ~ 0 Comments

Toronto City Council says “raise the land transfer tax cost”

#AnotherObstacle

It looks like Toronto City Council is at it again! Thinking that purchasers of real estate in Toronto’s neighbourhoods are flush with cash, they look to make sweeping changes to the Toronto Land Transfer tax program.

For anyone who has purchased a property in Toronto since February 1st, 2008, you are well aware of this cash grab by the councilors of our city that has contributed to drastic effects, such as a decline in the active selling inventory within Toronto’s boundaries and pushing house prices beyond reach for many of would-be future Toronto residents.

When you remove condominium apartments and townhouses from the mix, the average house price in December for a semi-detached and detached home in Toronto surpassed the $1 million dollar mark.

On a purchase price of $1,000,000 you would currently pay $32,200.00 in L.T.T. (land transfer tax). $15,725 goes into the city’s coffers and $16,475 goes to the clowns in the Provincial Liberal government to waste on all sorts of crap!

Well, if Toronto city council gets their way, effective March 1st, 2017 they would like to increase the percentage for all home buyers 0.05% which equates to a 7% increase in tax for repeat buyers and 6.5% for first time buyers.

Even worse, they want to eliminate the entire rebate for first time buyers who purchase above $700,000 (currently being contemplated by city staff). This is completely ludicrous and beyond punitive. This threshold is nowhere near the average house price in Toronto.

The Toronto Real Estate Board is going to bat, again, for this shortsightedness being pushed from city council against homebuyers in Toronto. Make your voice heard and read more information at anotherobstacle.ca

 

16 January 2017 ~ 0 Comments

Tips to protect your home and property: IBC

The Insurance Bureau of Canada (IBC) reminds Ontarians to review their home insurance policies, update their home inventories and take steps to protect their personal property.

“Reviewing and updating your home inventory list helps protect your personal property and can speed up the claims process in the event of a theft or loss,” says Kim Donaldson, vice-president, Ontario, IBC. “Ontarians are encouraged to take a few moments to review the following important tips on how to help ensure a safe home for their families.”

IBC’s top ten tips:

  1. Review your insurance policy to ensure that you have adequate coverage.
  1. Shop around to find the right policy for your own unique situation.
  2. To prevent possible slips and falls, keep your walkways and front stairs clear of snow and ice.
  3. Create or review your family emergency plan.
  1. Update your home inventory list by adding new items, including gifts received over the holidays. Note the approximate value of the items, including makes, models, serial numbers and any other identifying marks.
  2. If necessary, hire an appraiser to determine the value of works of art or jewellery in order to avoid a possible claims misunderstanding.
  3. Take photos or a video of your home’s contents.
  4. Keep your home inventory list, and photos or video of your home’s contents in a safety deposit box, a fire proof safe or in another secure location away from your home.
  5. If you are renting, ensure you have tenant’s insurance. A landlord’s policy will not typically cover your personal belongings or liability.
  6. If you have questions, speak to your insurance representative.

For further information, contact IBC’s Consumer Information Centre at 1-844-227-5422 or visit www.ibc.ca.

12 January 2017 ~ 0 Comments

First-time buyers get a tax break

Effective January 1, first-time home buyers will get a financial break on the purchase of their new home with a rebate that is double the previous amount, the provincial government announced recently.

This is a huge saving for consumers and marks the culmination of advocacy efforts by the Ontario Real Estate Association (OREA) to help more young families afford a home. As announced in the fall economic statement in November, the provincial government committed to increase to $4,000 from $2,000 the amount of the rebate from the land transfer tax (LTT) to first-time home buyers. This news is the result of months of efforts by OREA lobbying Queen’s Park to make this change, which will help more people achieve their dream of home ownership. 

“Finding an affordable home has become a struggle for thousands of young couples,” said Ray Ferris, president of OREA. “This tax break will reduce a first-time buyer’s closing costs and help them save more for their down payment. This means that our clients can now get $4,000 off of their first purchase, which is fantastic news for so many people trying to buy a home.”

“We’re thrilled that the government has listened to consumers and to us as REALTORS® on an issue that we’ve worked hard to highlight,” Ferris added. “We applaud the government for increasing the rebate so significantly.”

According to research commissioned for OREA by Altus Group Economics, an improved LTT rebate will have many positive financial consequences for the province, beyond just the tax break to first-time buyers. The study showed that a larger LTT rebate will create 5,000 jobs and $268 million in economic spinoffs. Moreover, research shows that home ownership contributes to families becoming happier and healthier and more involved in their communities.

“Home ownership changes you for the better,” said Tim Hudak, Chief Executive Officer of OREA. “It builds strong communities and stable neighbourhoods. A tax break for first-time buyers will give a lot of young families the leg up they need to get into home ownership. The government deserves credit for taking positive steps to address affordability. It’s encouraging news for that young couple looking to get into the housing market.”

Source: OREA

03 January 2017 ~ 0 Comments

5 Home Design Fads That Are Out in 2017

Shiplap and white-on-white kitchens may finally be falling out of favor. The two trends have dominated home design in recent years, but realtor.com® says they’ll be fading fast in 2017. Here are some of the home design trends realtor.com® predicts will fall to the wayside in the new year.

  1. Gray. Once the hottest color, gray is now looking gloomy. “It’s been overdone,” says Tanya Campbell of Denver-based Viridis Design Studio. “Diversity in the palette will strike a contrast. We may even see a transition from gray color palettes to warmer mochas and taupes.”
  2. The glam look.This style’s signature is bold whites, bright silvers, and deep blacks, which have been popular in kitchen and bathroom designs. “We’re going to leave the glam era behind. That slick, stark, severe minimalism will be replaced with warmer elements,” says interior designer Bea Pila. “At the end of the day, we’re seeking a deeper comfort level in our personal spaces. That perfect showroom feel we were once into doesn’t make this possible.”
  3. Shiplap. Shiplap surged to popularity as Joanna Gaines, host of HGTV’s “Fixer Upper,” turned to it as her go-to remodeling piece. But realtor.com® notes: “If you’ve ever wondered what 2016’s version of tacky wood paneling would be, look no further than this trend that seems to have overtaken TV design shows.” It’s difficult to remove, and designers now say it often makes little sense to use, particularly in a Colonial or Tudor home style.
  4. White-on-white kitchens.White everything in the kitchen — from countertops to cabinetry and even the floor — is fading fast. “It’s just too much,” says Sara Chiarilli, a designer at Sarasota, Fla.-based Artful Conceptions. “This trend started to go in 2016, but you will find it completely gone in 2017.” That said, Chiarilli predicts that whites will stick around, but they will take on more depth and tones in kitchens in the new year.
  5. Copper. Expect to see less of this heavy metal in 2017. Copper fixtures are another trend on the chopping block in the new year, realtor.com® notes.

 

Source: “10 Interior Design Trends That Are So Completely Over for 2017,” realtor.com® (Dec. 29, 2016)