Why Canada is still attracting Foreigners?

Canada is not the best place to live in the world. At least that is according to one study that seeks to assess the degree to which the country is providing a "high and sustainable quality of life". The order is as follows:

1. Denmark
2. Norway
3. Sweden
4. Netherlands
5. Finland
6. Austria
7. Canada
8. Belgium
9. Ireland
10. Germany
11. Switzerland
12. France
13. Australia
14. U.K.
15. Italy
16. Japan
17. U.S.

Canada gets low mark on child poverty, income inequality and gender equity. Why do we attract so many immigrants and people investing in real estate in the hopes of calling Canada their future home? Because we score high on diversity. Canada is the best performer of the group of 17 countries above on acceptance of diversity. We also score high on life satisfaction. So while we work towards making this country number One again, congratulations are in order to my fellow Canadians. The study is by Conference Board of Canada slated to be released today. 

Jagdeep Singh, B. Arch.

Real Estate Broker

Direct Tel: 647-287-4644

Direct Fax: 866-450-9199

www.JagdeepSingh.ca

Formally educated as an Architect, Jagdeep Singh is Toronto REALTOR™ consulting on both resale real estate and new developments. Powerful Local Focus on Real Estate with a Global Perspective™

This post is for information purposes only. Though effort has been made to ensure the accuracy of the contents, the reader is advised to verify the information independently. This post may contain contain information that is privileged, confidential and exempt from disclosure under applicable law. The reader is not allowed to reproduce it in any medium without the author’s prior written permission. Jagdeep Singh is a broker with Century 21 Heritage Group Ltd., brokerage (416) 798-7133 which is independently owned and operated. This message is not intended to solicit parties currently under contract.

How's the Real Estate Market going to be in 2013?

The most important thing to remember with any real estate market forecast is that real estate is a very local phenomenon. So, while the global, national, provincial and city level indicators affect you, their specific effects are more localized. It is absolutely imperative to understand how these indicators apply to your specific property and to your specific financial situation. It is always best to call and ask for a personalized one-to-one consultation. That is why I am here; to provide a Powerful Local Focus with a Global Perspective.
 
Short of having a crystal ball, let's look at the indicators starting with a real estate category that is rapidly increasing. 

The Condo Market: What's interesting is that condo rental demand is very strong, leading to some widely-reported bidding wars on rental units. This will be a key trend to watch. A strong rental market is unquestionably supportive of real estate values. While prices flat line and rents increase, the rent to value ratios are getting better. This will drive the investors back in. Not so much the 'flippers' but the 'buy and hold' kind of investors.
 
Single Homes: It is important to understand that this group is gaining value predominantly due to the value in land. By adding the land from Oakville, the Province of Ontario recently increased the amount of Greenbelt. (Keep up to date with developments like this through my Facebook page). Notice on the graph that the housing starts for single homes has been dropping consistently since 2002. 

Interest Rates: The economy and the labour market will likely remain weak in 2013. The real estate market has slowed down due to the tightening of mortgage rules. The slowing GDP trend could keep the interest rates low as low interest rates tend to keep the economy propped. How this applies to your specific situations depends on a lot of factors, such as your ability to take on loans, existing debt, debt allocation among various assets, savings, your personal income forecast etc.
 
Population Growth: Population growth is a real simple indicator of demand. We gain more and more people each year. They need to live somewhere, so they will rent, buy or move in with relatives. Any of those 3 situations shake up the real estate world around them and give the activity a boost. In recent years, we have always added to the population in Greater Toronto Area. The good news is, recent newcomers are bringing a lot more money than their predecessors.
 
Other Markets: With British Columbia, especially Vancouver taking a hit and Alberta market becoming more reasonable, the focus shifts to other major cities like Toronto and Montreal. The international buyers also look to the immediate south and as the U.S. market picks up, the activity is going to start to come back to Canada.
 

Of course, as the year unfolds, I will report on the updated market conditions. I wish you a very happy 2013 however only you can ensure that it is happy by taking action. Take some time out and talk to me, even if you are not planning to buy or sell.  Who knows, there might be an opportunity or two. Make yourself your number 1 priority. 

 

Jagdeep Singh, B. Arch.

Real Estate Broker

Direct Tel: 647-287-4644

Direct Fax: 866-450-9199

www.JagdeepSingh.ca

Formally educated as an Architect, Jagdeep Singh is Toronto REALTOR™ consulting on both resale real estate and new developments. Powerful Local Focus on Real Estate with a Global Perspective™

This post is for information purposes only. Though effort has been made to ensure the accuracy of the contents, the reader is advised to verify the information independently. This post may contain contain information that is privileged, confidential and exempt from disclosure under applicable law. The reader is not allowed to reproduce it in any medium without the author’s prior written permission. Jagdeep Singh is a broker with Century 21 Heritage Group Ltd., brokerage (416) 798-7133 which is independently owned and operated. This message is not intended to solicit parties currently under contract. 

The CNN Effect

The CNN Effect: A theory that seeks to explains the effect that 24-hour news networks, such as CNN or CBC, have on the general political and economic climate. 

Because media outlets provide ongoing coverage of a particular event or subject matter, the attention of viewers is narrowly focused for potentially prolonged periods of time. The CNN effect can therefore cause individuals and organizations to react more aggressively towards the subject matter being examined. 

For example, It can cause real estate consumers to think and believe any number of things such as the market is crashing or we are in a bubble or properties don't sell in winter months etc. 

This effect first came into light in 1980s and has since been used to describe the effects of media on general consumer behaviour. What can you do? Watch the news but don't get caught up in it. Don't hold or change your plans based on news. Definitely change or hold your plans based on advice from your consultant. 

Jagdeep Singh, B. Arch.

Real Estate Broker

Direct Tel: 647-287-4644

Direct Fax: 866-450-9199

www.JagdeepSingh.ca

Formally educated as an Architect, Jagdeep Singh is Toronto REALTOR™ consulting on both resale real estate and new developments. Powerful Local Focus on Real Estate with a Global Perspective™

This post is for information purposes only. Though effort has been made to ensure the accuracy of the contents, the reader is advised to verify the information independently. This post may contain contain information that is privileged, confidential and exempt from disclosure under applicable law. The reader is not allowed to reproduce it in any medium without the author’s prior written permission. Jagdeep Singh is a broker with Century 21 Heritage Group Ltd., brokerage (416) 798-7133 which is independently owned and operated. This message is not intended to solicit parties currently under contract.

Real Estate that Got Expensive Very Fast

The following were apparently the top global destination for super rich in the world. This of course is as indicated by the gains in real estate. The criteria was to look at individuals with a high net worth of more than $25 million in investable assets. 

The first number is the price per square metre (divide by 10.76 for price per square foot). The second number is the price change in last 5 years for luxury homes. Enjoy :)

Beijing              $17,500  +96%

St. Petersburg   $20,200  +77%

Shanghai          $19,600  +69%

Hong Kong        $28,300   +60%

Mumbai            $11,400  +64%

Jakarta             $2,900    +32%

Close to home Manhattan was at +24% or $23,300 per square metres.

The price per square metre in Hong Kong is for apartments.

Jagdeep Singh, B. Arch.

Real Estate Broker

Direct Tel: 647-287-4644

Direct Fax: 866-450-9199

www.JagdeepSingh.ca

Formally educated as an Architect, Jagdeep Singh is Toronto REALTOR™ consulting on both resale real estate and new developments. Powerful Local Focus on Real Estate with a Global Perspective™

This post is for information purposes only. Though effort has been made to ensure the accuracy of the contents, the reader is advised to verify the information independently. This post may contain contain information that is privileged, confidential and exempt from disclosure under applicable law. The reader is not allowed to reproduce it in any medium without the author’s prior written permission. Jagdeep Singh is a broker with Century 21 Heritage Group Ltd., brokerage (416) 798-7133 which is independently owned and operated. This message is not intended to solicit parties currently under contract.

Problematic Factors for doing Business in Canada

The World Economic Forum is an independent international organization committed to improving the state of the world by engaging business, political, academic and other leaders of society to shape global, regional and industry agendas. Among other reports it publishes Global Competitiveness Report that highlights world economies, their strength and weaknesses, and provides the competitive landscape of these various countries. 

The report also an insight in to the drivers behind the productivity and prosperity of various countries. It is by far the most comprehensive assessment of national competitiveness. Here are Canada's top 5 "Most Problematic Factors for doing Business in Canada".

5.  Tax Rates - why is this not a surprise? Don't we all feel this regularly. Taxation in Canada is almost stifling. 

4.  Inadequately educated workforce - This came as a surprise to me. Let me know your thoughts on this one. I think we are suffering as a nation because as a country made up of immigrants, we need to have a better program for assimilating the immigration influx and utilize their talents effectively. When our doctors, lawyers and engineers are driving taxis, trucks or working in call centres, no wonder we are ranking poorly on this. 

3.  Access to financing - Is Jim Flaherty reading this? 

2.  Insufficient capacity to innovate - I don't know anything about this one, and the number one is

1.  Inefficient Government Bureaucracy - Wake up Ottawa. 

Overall Canada is ranked number 14, behind countries like Switzerland (1), Singapore (2), Germany, US and UK ranked 6, 7 and 8. Get this, Hong Kong, Qatar and Taiwan are better than us at 9, 11 and 13. Last on the list is Burundi ranked at 144.

From a real estate perspective specifically in Toronto, if you are not in the above list, you may want to consider moving to the lovely city we call home - with one of the most vibrant economy and multicultural place to be in Canada. 

Jagdeep Singh, B. Arch.

Real Estate Broker

Direct Tel: 647-287-4644

Direct Fax: 866-450-9199

www.JagdeepSingh.ca

Formally educated as an Architect, Jagdeep Singh is Toronto REALTOR™ consulting on both resale real estate and new developments. Powerful Local Focus on Real Estate with a Global Perspective™

This post is for information purposes only. Though effort has been made to ensure the accuracy of the contents, the reader is advised to verify the information independently. This post may contain contain information that is privileged, confidential and exempt from disclosure under applicable law. The reader is not allowed to reproduce it in any medium without the author’s prior written permission. Jagdeep Singh is a broker with Century 21 Heritage Group Ltd., brokerage (416) 798-7133 which is independently owned and operated. This message is not intended to solicit parties currently under contract.

Sell Your Home Yourself

For Sale By Owner or FSBO websites and advertisements make selling your own home sound easy but there are some very real FSBO Challenges to consider. Understanding how FSBO listings work plus the advantages and disadvantages of selling FSBO versus listing with a real estate agent assures you select the right choice for your individual situation.

The most often cited advantage of listing a house for sale by owner is saving the real estate commission, but a closer look at how real estate commissions work deserves attention. A typical real estate commission is usually .06% to .07% of the selling price of the home. To keep things simple let's use .06% for this example on a $200,000 home. The total commission would be $12,000 but it is often shared by as many as four people. It works like this; when you list your home the listing agent and broker would be responsible for .03% of the commission (Approximately $3,000 or .015% each) while the selling agent and broker would be responsible for the other .03% or .015% each.

One of the challenges of listing your home for sale is enticing other real estate agents to show your home to their clients. To successfully do this you will need to provide an incentive by paying a similar real estate commission such as the typical .03% for the selling agent and broker. In our example above that means your total savings is now only .03% or $6,000. From that amount you must deduct the MLS listing fees, signs, advertising, lost wages for showing the home and much more.

To calculate if listing your home FSBO really makes sense, calculate the true cost of doing it yourself. Remember, it takes an average of six months to sell a home so when calculating the cost of advertising and other expenses use a six month average estimate of: Selling agent commission, MLS Listing fee, Signs, Posters, Flyers, Internet Advertisement with photographs, Newspaper Classified Advertisements, Missed Wages to Show Home, Market Research, Legal Fees to Create & Review Contracts, Escrow Company and Other Miscellaneous Costs.

Now compare the total savings against the time and money you will pay a traditional real estate agent and broker for listing and selling your home to decide if facing the FSBO challenges is the right choice.

Jagdeep Singh, B. Arch.

Real Estate Broker

Direct Tel: 647-287-4644

Direct Fax: 866-450-9199

www.JagdeepSingh.ca

Formally educated as an Architect, Jagdeep Singh is Toronto REALTOR™ consulting on both resale real estate and new developments. Powerful Local Focus on Real Estate with a Global Perspective™

This post is for information purposes only. Though effort has been made to ensure the accuracy of the contents, the reader is advised to verify the information independently. This post may contain contain information that is privileged, confidential and exempt from disclosure under applicable law. The reader is not allowed to reproduce it in any medium without the author’s prior written permission. Jagdeep Singh is a broker with Century 21 Heritage Group Ltd., brokerage (416) 798-7133 which is independently owned and operated. This message is not intended to solicit parties currently under contract.

5 Things you need to know before selling your Home

You are planning on selling probably your single biggest asset and perhaps moving up or moving into something manageable, either way, you want to get the most for your house. 

1. First of all you need to know what is your house worth. 

2. Declutter - I am sure you have lots that you have accumulated over the years that you can get rid off. Perhaps a garage sale

3. A REALTOR - Do yourself a favour and choose a REALTOR who does it, perhaps full time, for a living. Guaranteed REALTORs sell more houses than you ever will and the commission is worth it. For every $1000 that a REALTOR will get extra for your house, you get to keep $950 and the REALTOR only takes $50. Even that is split in to two (for the listing and the selling REALTOR). 

4. Depersonalize your home - It is simple to do. It should look like a hotel room.

5. Motivation - Do you really need to sell or want to sell? If yes, then do everything accordingly including pricing it at the optimum price.

Jagdeep Singh, B. Arch.

Real Estate Broker

Direct Tel: 647-287-4644

Direct Fax: 866-450-9199

www.JagdeepSingh.ca

Formally educated as an Architect, Jagdeep Singh is Toronto REALTOR™ consulting on both resale real estate and new developments. Powerful Local Focus on Real Estate with a Global Perspective™

This post is for information purposes only. Though effort has been made to ensure the accuracy of the contents, the reader is advised to verify the information independently. This post may contain contain information that is privileged, confidential and exempt from disclosure under applicable law. The reader is not allowed to reproduce it in any medium without the author’s prior written permission. Jagdeep Singh is a broker with Century 21 Heritage Group Ltd., brokerage (416) 798-7133 which is independently owned and operated. This message is not intended to solicit parties currently under contract.