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.

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)

22 December 2016 ~ 0 Comments

As 2016 Comes to a Close

As 2016 comes to a close, I would like to take this time to thank each and every one of you for your support and trust in making me your Realtor of choice. It’s been a record year in receiving new client referrals from all of you and this further fuels our commitment to our vision of, “looking after our clients’ needs as we would that of our loved ones.”

Oh, by the way, I’m never too busy for your referrals! ☺

This year, there have been many changes both locally and internationally that will have untold ramifications on Toronto’s real estate market (look to early 2017 newsletter for my thoughts regarding this). December will finish out what will be a never before seen record number of sales in the Toronto Real Estate Board as well as average house prices. Whoever would have thought we would see the value of an average detached home price across Toronto reach above $1.3 million!

2017 is looking like it could be a formative year for Toronto real estate. I look forward to continuing to be your trusted resource, and that of your friends and family, for timely and valuable information regarding Toronto’s real estate market.

Wishing you all a safe and happy holiday season!

Best,
Mike Rap

14 November 2016 ~ 0 Comments

I’m Moving to Ireland to Live in a Castle!

With the United States election finally behind us, many have posted the question, “where can those who want to flee from the land of the free, under a Donald Trump regime, go?”

Well, for starters, the entire world is becoming a lot less friendly with fewer options to live in. With England and their Brexit vote, not as much of an option for our American friends to the south.

Canada gets much talk and on the surface, it makes a lot of sense given our close proximity. On election night, Canada’s immigration website actually crashed (or was taken offline depending on who you listen too ☺), with hoards of Americans looking to flee. Snoop Dogg, you are always welcome. Kanye? Sorry, we’re full. In reality, I don’t think we will see many Americans come north for a few reasons…

One, Toronto and Vancouver are very expensive markets to live in – costlier than most American markets. Vancouver has added a 15% foreign buyer tax, which is pretty much Canada’s version of a wall. The high cost of housing, food, transit, and taxes make Toronto a non-starter for many. The east coast is an option, but unlikely. I think that the most logical choice would be Montreal. Known for its world-renowned culture, affordability (although ask a native about this and you will be scoffed at), and thriving metropolis – but, with some pretty serious political issues of its own.

How about Ireland? The gateway to Europe I recently read has Castles for sale starting from $1.35 million (U.S.) to $4.95 million (U.S.) A Castle sounds nice! Of course with Brexit you may see an increase of ex-pats returning but imagine what it would be like to throw a massive “castle party”! This, I could get excited about! Oh, wait. It’s Americans looking to flee, not Canadians. Now, back to reality.

Australia and New Zealand are both beautiful places to live… If you have mountains of cash! You would certainly get pretty far away from having to watch Ivanka, Eric, and Don Jr. help Dad with his “transition” planning. Who would have thought years of sitting around the boardroom table-practicing saying, “you’re fired” to C level celebs may come in handy.

So where does this leave the many Americans who want to flee the United States for something better? You tell me. I’m sure we all feel our Countries are the greatest places on earth to live in. I think that when the dust settles, very few will choose to relocate as the options abroad are tough at best. Maybe better to just stay put, and be the change you wish to see.