[Ric]

The average size of a new condominium in the GTA is 650 square feet per year, meaning based on average price, it will cost you $330,000. With rental rates on average $2.21 per square foot, you could expect close to $1,450 per month in rent. But will that rent cover your costs? If you put 20% down, a $264,000 mortgage at even 3% amortized over 25 years, your principal and interest costs would be close to $1,250. Monthly condo fees are about 50¢ per square foot per month on average and property taxes are about 1% of home value. Add in heat and hydro and you are easily under water.
.

I don't know where you got that information from but I dont know of any new project downtown that you can rent a 650 sq ft unit for $1,450. Have you seen the rental market over the past 3-4 months? New 1br starts at minumum $1600 with multiple offers. But, by all means let me know when you find that $1,450 unit. I have at least 9 clients who need to find somewhere by November.

There has been a significant rise in rental rates for new products on the market just over the past few months (this has also pulled the rest of the market up). This isn't Realtor BS; this is a fact.

 

[James]

I don't know where you got that information from but I dont know of any new project downtown that you can rent a 650 sq ft unit for $1,450. Have you seen the rental market over the past 3-4 months? New 1br starts at minumum $1600 with multiple offers. But, by all means let me know when you find that $1,450 unit. I have at least 9 clients who need to find somewhere by November.

There has been a significant rise in rental rates for new products on the market just over the past few months (this has also pulled the rest of the market up). This isn't Realtor BS; this is facts.

I agree. I believe the writer, Garry Marr, based his $2.21/sq.ft. number on GTA rent figures compiled from an unnamed source. While it is possible to find a unit in a high-rise apartment building, like on Thorncliffe Park Drive or Flemingdon Park at Don Mills & Eglinton, I have never, ever seen a condo unit downtown rent out for that unit cost.

 

[Eug]

Housing market correction 'appears to be under way'

A correction in Canada’s housing market “appears to be under way,” led by Vancouver but destined to spread after the government’s new mortgage restrictions, Toronto-Dominion Bank warns today.

“We expect the slowdown will become more broad-based following a fourth round of mortgage insurance regulation tightening by the federal government in July,” economists Craig Alexander, Derek Burleton and Diana Petramala said in a new report that also warns Canada’s economy is “stuck in a soft patch” this year.

This housing correction will weigh on Canada’s over all economic growth, the TD economists added

---

They cited the fact that sales and prices in Vancouver have slumped by 31 per cent and 7 per cent, respectively, over the past year.

Of course, Canadian interest rates are expected to remain low well into 2014, so there’s only so far that prices can fall. TD said it still estimates the market is overvalued by 10 per cent.

“The adjustment is expected to occur gradually over the next two to three yars, which should be quite manageable for most Canadian households,” they said.


GTA REALTORS® Release Mid-Month Resale Figures

Greater Toronto Area (GTA) REALTORS® reported 2,544 transactions through the TorontoMLS system in the first 14 days of September. This result was down by 15 per cent compared to the 2,995 sales reported during the same period in 2011.

“The combination of stricter lending guidelines, rising home prices and the added upfront cost associated with the land transfer tax in the City of Toronto resulted in a slower pace of sales during the summer of 2012 compared to a year ago,” said Toronto Real Estate Board (TREB) President Ann Hannah.

The average selling price for sales during the first two weeks of September was $496,786 – representing an annual rate of increase of more the 9.5 per cent. Average selling prices were up for both low-rise and high-rise home types, including condominium apartments sold in the ‘416’ area code.

“Price growth continued to be strongest for low-rise home types during the first two weeks of September. This segment of the market has been very tight, with months of inventory remaining low from a historic perspective,” said Jason Mercer, TREB’s Senior Manager of Market Analysis.

 

[bird1010]

Rental Listings and prices

I agree. I believe the writer, Garry Marr, based his $2.21/sq.ft. number on GTA rent figures compiled from an unnamed source. While it is possible to find a unit in a high-rise apartment building, like on Thorncliffe Park Drive or Flemingdon Park at Don Mills & Eglinton, I have never, ever seen a condo unit downtown rent out for that unit cost.

I did a quick search on Craigslist today and there seems to be plenty of 1 bedroom 600 sf plus units for $1450 - $1600. Here are some examples

http://toronto.en.craigslist.ca/tor/apa/3224039363.html
http://toronto.en.craigslist.ca/tor/apa/3246818847.html
http://toronto.en.craigslist.ca/tor/apa/3273768672.html
http://toronto.en.craigslist.ca/tor/apa/3277543318.html

This is not to say that there maybe multiple bids for these units? but the listings are there.

 

[Ric]

I did a quick search on Craigslist today and there seems to be plenty of 1 bedroom 600 sf plus units for $1450 - $1600. Here are some examples

http://toronto.en.craigslist.ca/tor/apa/3224039363.html
http://toronto.en.craigslist.ca/tor/apa/3246818847.html
http://toronto.en.craigslist.ca/tor/apa/3273768672.html
http://toronto.en.craigslist.ca/tor/apa/3277543318.html

This is not to say that there maybe multiple bids for these units? but the listings are there.

I usually use MLS as my guage (not craigslist or kijiji). Having said that I can bet you 1. These are Phish listings (placed by agents to recruit renters) 2. They are already leased 3. They are priced low to generate buzz and will lease above list price with multiple offer.

Just ask any agent how is the rental market downtown?

 

[CN Tower]

I usually use MLS as my guage (not craigslist or kijiji). Having said that I can bet you 1. These are Phish listings (placed by agents to recruit renters) 2. They are already leased 3. They are priced low to generate buzz and will lease above list price with multiple offer.

Just ask any agent how is the rental market downtown?

Why would anyone with even a modicum of common sense and computer literacy skills (or mobile phone browsing skills), ie 90% of renters, use a real estate agent to rent an apartment? It baffles me to contemplate how anyone (landlord or tenant) would want to pollute such a standard transaction with an added layer of unnecessary complexity? The property management firm handling the building should be responsible for all building rental activity for a very modest fee as a service to the condo. It couldn't be more basic.

Do you use an agent to rent a car? I've got the best real estate agent in the world! She's only 14 years old and she works for free. Her name is Google.

 

[Ric]

Why would anyone with even a modicum of common sense and computer literacy skills (or mobile phone browsing skills), ie 90% of renters, use a real estate agent to rent an apartment? It baffles me to contemplate how anyone (landlord or tenant) would want to pollute such a standard transaction with an added layer of unnecessary complexity? The property management firm handling the building should be responsible for all building rental activity for a very modest fee as a service to the condo. It couldn't be more basic.

Do you use an agent to rent a car? I've got the best real estate agent in the world! She's only 14 years old and she works for free. Her name is Google.

Calm down Dude..

Whether or not you agree with landlord or tenant using an agent to lease a property has no bearing on the point that I was making: that the RE rental market is on fire.

Now take a prozac and calm yourself

 

[Wooba]

Ric I don't doubt you about the rises in rental rates with what you're seeing on MLS, but that's a flawed view of the market. As CN tower pointed out, most rentals are done outside of MLS. I signed a lease a few months ago and quickly found that MLS was a waste of my time. There was way more to pick from on Kijiji. Declaring the prices of rentals based on what's happening on MLS is like declaring the prices of groceries based on what the 7/11 is selling them for.

 

[000]

I use http://padmapper.com to search rental listings that aren't on MLS, it aggregates results from CL and kijiji and makes them way easier to filter

 

[Ric]

Ric I don't doubt you about the rises in rental rates with what you're seeing on MLS, but that's a flawed view of the market. As CN tower pointed out, most rentals are done outside of MLS. I signed a lease a few months ago and quickly found that MLS was a waste of my time. There was way more to pick from on Kijiji. Declaring the prices of rentals based on what's happening on MLS is like declaring the prices of groceries based on what the 7/11 is selling them for.

OK fine. MLS which accounts for only a very small % of rentals in C1 is telling me that rental prices are way up, days on the market is down and properties are receiving multiple offers when compared to the same period last year. I've also experienced this first hand. But don't take my word for it as my data is from MLS that only account for a miniscule amount of total rentals. Kijiji and Craigslist will provide a better guage for the market. One bedroom in a brand new building like Burano will fetch around $1800 on MLS but owners will rather list on kijiji and craigslist for $1450 (less than market) so they can avoid using an agent (for half months rental fee).

 

[Eug]

Why would anyone with even a modicum of common sense and computer literacy skills (or mobile phone browsing skills), ie 90% of renters, use a real estate agent to rent an apartment? It baffles me to contemplate how anyone (landlord or tenant) would want to pollute such a standard transaction with an added layer of unnecessary complexity? The property management firm handling the building should be responsible for all building rental activity for a very modest fee as a service to the condo. It couldn't be more basic.

My property management firm never did that AFAIK. I'm glad too, because I didn't want to pay (directly through my condo fees or indirectly due to time spent away from other condo duties) for my neighbours' rental activities anyway.

My friends who rented their properties often did hire agents to rent them out. They definitely didn't want to spend the extra time managing that.

Do you use an agent to rent a car?

I used a 3rd party car rental agency for my France car rental. It was significantly cheaper than going to the rental companies themselves. Stupid but true.

In Canada I go to redflagdeals and look for discount codes and browse the individual car rental companies' webpages myself.

 

[adeel]

OK fine. MLS which accounts for only a very small % of rentals in C1 is telling me that rental prices are way up, days on the market is down and properties are receiving multiple offers when compared to the same period last year. I've also experienced this first hand. But don't take my word for it as my data is from MLS that only account for a miniscule amount of total rentals. Kijiji and Craigslist will provide a better guage for the market. One bedroom in a brand new building like Burano will fetch around $1800 on MLS but owners will rather list on kijiji and craigslist for $1450 (less than market) so they can avoid using an agent (for half months rental fee).

maybe it depends on the agent, but i always thought standard was one full months rent...at half a month id be MUCH more inclined to get an agent

 

[ducati0000]

One month rent is the norm and is extremely easy to rent out a 1 bedroom condo in a good location....Ric take a chill pill you can find a decent condo one bedroom for around $1400 (no parking) downtown,of course it be on the fringes of the core but still its there........

 

[Eug]

It should be noted that for 1 month's rent, they manage the place for you too, including finding trades for repairs, etc.

 

[CN Tower]

My property management firm never did that AFAIK. I'm glad too, because I didn't want to pay (directly through my condo fees or indirectly due to time spent away from other condo duties) for my neighbours' rental activities anyway.

My friends who rented their properties often did hire agents to rent them out. They definitely didn't want to spend the extra time managing that.

So the management company gets the concierge or superintendent to show the unit and the head office to do a credit check and draft up the standard lease. Grand total? $100.