Eric Potechin - Real Estate Page

09/26/2024

I don’t post on this page often, but the following paragraphs tell me that there is finally plenty of good news for buyers and sellers.

If you are thinking of a move or an investment let me know and I will show you how I can add significant value to your transaction.

Here is the news…

1) Mortgage insurance easing

Out of nowhere, the government decided that Canada’s default insurance market needed stimulation. Starting December 15, for those seeking insured mortgages, the government will allow:

A 50% increase in the maximum allowable home value (i.e., $1.5 million instead of the $1 million it’s been stuck at since 2012)

30-year amortizations for buyers of new builds

30-year amortizations for all first-time buyers

The first measure corrects the fact that value limits on insured homes haven’t kept up with the 76 per cent surge in home values since the rule was instituted.

The second measure creates a more liquid pool of buyers for new homes, incentivizing the construction Canada desperately needs.

The third change levels the playing field for first-time buyers who don’t have down payment assistance from their families.

2) Surprise below-target inflation

For months on end, the Bank of Canada has predicted that inflation would reach the two per cent target in late 2025. But on Tuesday, inflation unexpectedly slowed to just 1.95 per cent. That’s more than three quarters ahead of schedule.

Suddenly, the Bank of Canada has more leeway to cut rates without fear of re-invigorating inflation. And that’s precisely what it’ll do, with markets pricing in 200 basis points of rate cuts within 24 months, according to forward rate data from CanDeal DNA.

Such a drop would drastically slash payments, increasing the appeal of home buying relative to renting. It would also trim borrower’s debt-to-income ratios, making mortgage qualifying significantly easier. The resulting additional demand could mop up much of the inventory that’s piled up since 2022.

3) The U.S. Fed’s mega rate cut

Nine out of 10 economists expected the U.S. Federal Reserve to trim rates just 25 bps on Wednesday. Despite the U.S. economy being in “good shape” the central bank instead decided on a supersized 50 bps cut. A 50-basis-pointer theoretically lets the Bank of Canada cut more as well, since it doesn’t have to worry about a widening U.S.-Canada rate differential tanking our currency.

Those items above should give real estate a shot in the arm by the first quarter or before. As with all policy loosening, though, some buyers will try to jump the gun and beat the crowd.

Adding to demand is slowly improving affordability. Real estate has been correcting sideways for two years. Lower prices and rising incomes have been quietly working magic behind the scenes. For instance, the typical home is now just 4.2 times gross income for dual-income households earning average weekly wages. That’s down from a nosebleed 5.9 in February 2022.

I am never too busy for your referrals and I am looking forward to hearing from you when you need me.

Take care for now,

Eric

08/27/2020

ATTENTION AIR BNB LANDLORD INVESTORS. YOUR LIFE IS ABOUT TO CHANGE!

I am here to help you transition, do not hesitate to call with your questions and concerns.

Here are the highlights:

(i) A property owner may only rent for 180 days a year;
(ii) There will be a 4% tax levied on short term rental unit revenues, collected quarterly;
(iii) All short term rental providers must register with the City of Toronto;
(iv) All short term rental advertisements must show the City of Toronto registration number;
(v) Companies specializing in short term rentals now will require a licence;.. & here is the big one ...
You can ONLY do short term rentals in your personal home and ONLY 6 months per year;

Here is my response:

(i) I have been following this story for 2 years and I have advised both clients and friends against investing in the short term rental market. So, those of you who listened are now the winners;
(ii) The rental market will change for the good and nobody will lose their shirt. That makes me happy;
(iii) As a condo owner in a pandemic it makes me feel safer;
(iv) As a Realtor I have seen the damage that can be done by short term renters. It ain't pretty;
(v) This, in my opinion is the first good piece of legislation to come from any governing body in Canada;

How do you feel about this?

Will this have an effect on your pocketbook?

Should this be grandfathered in for those who already invested?

12/05/2019

If you are interested or know someone who is, please message me or contact me through the ad. My client and his wife are really nice people and very good Landlords. Thanks!

Toronto's rental appartment. Fabulous 1 Bedroom + Den with great amenities on the water, and a nature trail, both literally seconds from your lobby door! TTC streetcar is right across the street. U... www.viewit.ca/198605

11/18/2019

BEFORE YOU GIVE SOMEONE ANY ADDITIONAL MONEY FOR A REAL ESTATE DEAL, REMEMBER YOU READ THIS HERE FIRST:

If you are asked for additional funds by anyone who sounds like they might be involved in a real estate deal you are doing, please proceed with caution. It may sound legit, but you might not be communicating with the people you think you are communicating with. There are lots of scam artists out there, and they are very good.

Rule 1 ... Pass any additional fund requests received to your Realtor or Lawyer. They can help to verify the legitimacy of the request and will review or create the necessary paperwork to update the deal on your behalf.

Here is Rule 2... Additional funds are never “added” to a deal without your written authorization. That authorization comes from an ADDENDUM to the deal. This is a document that you sign.

Rule 3... Do not sign the Addendum unless your lawyer tells you to do so.

Rule 4 ... Hire a Realtor who strives to protect your hard earned money and keep you happy with your deal from beginning to end.

Want to know more on this topic? Curious about other Real Estate topics? Please get in touch with me to learn more. ... and ... There is no obligation! The only obligation is on me to help you. I am here for you.

06/06/2018

My dear friend Evan Landis is a builder extraodinnaire.
He also renovates with impeccable taste and detail. Super experienced, super competent ... and would be embarassed if he knew I was posting this! Always a pleasure to sell an Evan Landis Home! Below is a link to my latest listing, an Evan Landis creation .. Stunning! Take the virtual tour while you are there:

https://www.ericprealestate.com/ON/toronto/m9n2c6/4973213-MLS-W4142204-na-15-Boyd-Ave

I am always available and you can find me on my website, accessed by clicking the link below or just message me any time!

15 Boyd Ave, Toronto Real Estate, MLS # W4142204. Eric Potechin, Homes For Sale in Toronto by RE/MAX Realtron Realty Inc, Brokerage *.Stunning! 4Bed/5Bth Famil

11/20/2017

This condo sold in 3 days and then met all conditions in 10 days!
Hard work, excellent marketing and precision pricing wins again.
If you have a property you would like to sell, drop me a line. I will make it sell in less time for more $$$$.

10/19/2017

Hi Folks. Tell all your friends and family... I have a listing coming up in a condo, 155 Marlee Avenue. It is:
2 bedroom with parking, 1 four piece washroom plus large office which has the plumbing and electric to accomodate ensuite laundry. There is a squeaky clean laundry room with lots of machines in the building. The master has a walk in closet. Tons of storage within the unit and also a large locker available for rent (from Management) for around $40 a year. The condo fees cover everything, including water, hydro and cable and one parking spot! Very well managed, clean building. The unit is on the 2nd floor and faces the quiet side of the building. 1005 square feet plus a sizeable balcony overlooking a quiet, large, private, green grassy landscape. The building is located close to groceries, bus and subway. Ammenities include an indoor pool, gym, sauna, lots of guest parking, party room, kid's playroom, quiet library with wifi, outdoor playground, billiards room. Listing on Tuesday, no proper pictures yet but if you would like to see the unit please message me here, call, text or email. The owner is willing to entertain early offers at this point. The asking price is $469,900. Thanks!

07/30/2017

Hey everyone look at this wonderful review I just received from my client, Stephane Conn! It really made my day! Please feel free to refer me to your friends and family. They will be treated the same.

"I cant say enough about Eric! He guided my Mother (and I) through the long and difficult process of finding an apartment when she sold and moved out of our family house. Eric is a resourceful and determined problem-solver who doesn’t give up until his client is happy. He’s a great listener, and always in good spirits. If you’re hesitant about looking for a new place in Toronto, I would recommend him without reservation as the perfect ally in your search and subsequent move. Thank you, Eric!"

04/13/2017

Good Thursday sunny afternoon to all my friends.

I wanted to talk about the ontario budget and home prices. The upcoming provincial budget, I suspect will not have a great effect on our marketplace in the short run. I expect the Ontario Provincial Government will announce some immediate changes to taxation on foreign buyers and/or land transfer tax rules. For now I believe that Capital Gains rules will remain status quo until at least next year's Federal Budget.

Taxation is an obvious "go-to" solution in a government budget, but it is not the answer to the severe supply shortage in the GTA. More taxation is not going to add to supply. Only supply adds to supply, and nobody in any of our governments wants to address the supply issue in a significant way yet. There is a vast amount of vacant land in the GTA, but allowing builders on it is an issue that needs careful thought by our policy makers. We have to ask ourselves the following quesion before we start digging in to new land opportunity: At what cost to our lifestyle and to nature do we build on protected land in the GTA? No politician will want to touch this issue for quite a while is my bet.

So, with that in mind, here is my take on the market:

1) Multiple offers will still be the order of rule in the Toronto Residential Real Estate market. Perhaps instead of 5 to 20 buyers getting involved in a price war, there will only be 2 to 5 buyers getting involved. Remember that it only takes 2 buyers to get a transaction into the realm of "multiple".

2) The price of a Condo will continue to rise quicker than other types of residential property and will be the last to fall, if they fall at all.

3) Average prices for all residential real estate will continue to rise and we will remain in a seller's market until AT LEAST this winter. I cannot stick my neck out past this point except to say that if there are economic calalmities that affect our borders in terms of immigration or exportation of our goods and services, then all bets are off. Our low dollar is good, but only if we can continue to move our goods and services beyond our borders and allow foreign investment to continue. I believe that even if taxed, additional foreign investment will continue to flow into the GTA. The Canadian and our cost per square foot for a home is significantly lower than many other markets, worldwide. Also, as long as immigration continues at present levels, we will continue to see residences bought and owned through foreign investment.

... And don't get me started on residential investment property! Residential rental investments are presently and will continue to be a great, safe and wise place to park your money.

If you are interested in hearing my take on the Residential market either for investment or for lifestyle, drop me a line. I can fill you in by the numbers.

Remember also, I am never too busy for you OR for your referrals.

Have a great Easter and happy Passover if you celebrate and GO LEAFS, JAYS AND RAPTORS!!!