The annual rent increase guideline for income properties in Ontario is set at 2.1 percent for 2010.

I did a quick check of the Community Profiles on the Stats Can website to see how many dwellings are owned versus rented in the South Georgian Bay area.  Based on these 2006 figures, about 20% of all properties in our area are rented.  In Collingwood, the number rises to 39%.  That’s a lot of Landlords and a lot of Tenants who will be looking carefully at the new guideline.  I’ve also noticed a distinct increase in the number of potential buyers looking for income properties in our area.

Every year, the Ontario government sets the amount which is the maximum percentage a landlord can increase the rent for existing tenants.  The new rent increases are for the period of January 1, 2010 to December 31, 2010 and applies to most residential units.  The rent can be increased if at least 12 months have passed since the tenant moved in or since the last increase was applied.

In determining the rent increase guideline each year, the government bases it on the Ontario Consumer Price Index (CPI) which is used a measure of inflation and is designed to take into account increases in a landlords building maintenance and operating costs.

There are circumstances where Landlords may apply to the Landlord and Tenant Board for an increase above the guideline, if their costs for municipal taxes or utilities have increased by more than the guideline PLUS 50 per cent.  Details can be found on the governments website. 

If you are a landlord in Ontario who is planning to increase according to the guidelines, it is important for you to know that tenants must be given proper written notice of the planned increase at least 90 days before the rental increase is to take effect.

If you own a commercial building or operate a business in Ontario, you should make yourself well aware of the Accessibility for Ontarians with Disabilities Act (AODA). 

Chris recently attended a seminar on the Accessibility Standards for Customer Service Regulation 2009, which is one of five parts of the being implemented between now and 2025 and, here is her report.

According to the workshop’s facilitator, the purpose of the AODA is as follows:

“Recognizing the history of discrimination against persons with disabilities in Ontario, the purpose of this Act is to benefit all Ontarians by,
a) Developing, implementing and enforcing accessibility standards in order to achieve accessibility for Ontarians with disabilities with respect to goods, services, facilities, accommodation, employment, buildings, structures and premises on or before January 1, 2025
b) Providing for the involvement of persons with disabilities, of the Government of Ontario and of representatives of industries and of various sectors of the economy in the development of accessibility standards.”

She told us that the AODA Vision is:

“An accessible Ontario by 2025:
? Fundamental, comprehensive change to ensure accessible buildings, communications, services and employment for people with disabilities
? Facilitate full participation of all Ontarians in Ontario’s community and economic life
? Inform and change attitudes, values and behaviour towards accessibility
? Essential to quality of life and strong economy for all Ontarians
? An investment that makes good economic sense”
Specifically, this regulation deals with Customer Service. 

The speaker made it clear that we can have the best team of customer servers in the business, but if someone with an accessibility issue can’t get in, there’s a problem.  What this act aims to do over the next several years, is put all community members on a level playing field.  Fundamentally, the act will ensure access to buildings, communications, services and employment for people with disabilities.

The accessibility standard has five parts:
? Customer Service
? Information and Communications
? The Built Environment
? Employment
? Transportation.
 
As of January 1, 2008, if a business has one or more employee, it must comply.  If the organization is designated in the standard as ‘public sector,’ then they must comply by January 1, 2010.  If it is a private business, not-for-profit, or other service provider, with at least one employee in Ontario, compliance is required by January 1, 2012.

This will affect everyone! 

The act requires ‘reasonable accommodation’ which doesn’t necessarily mean that everyone who owns a business will have to go out and completely retrofit their place of business. 

There are 11 requirements for the customer service regulation:

1. Establish policies, practices and procedures to provide goods and services to people with disabilities.  If a business already has policy and procedures, insert proper language with no exclusions.)
2. Use reasonable efforts to ensure policies, practices and procedures are consistent with the core principals of independence, dignity, integrity and equality of opportunity (ie. look at your mission statement:  is it inclusionary?)
3. Set policy so that people can use their own assistive devices to access your goods and use your services; and set policy about any other measures your company or organization may offer (ie. services, assistive devices or other methods to enable the disabled person to access your goods and/or services.)
4. Communicate with the disabled person in a manner that takes into account his/her disability.  (This may well require training!)
5. Allow people with disabilities to use guide dogs/service animals in those areas of the premises you own or operate open to the public, unless the animal is excluded by law; or use other measures to provide services to the person with disabilities.
6. Permit people with disabilities who use a support person to bring that person with them while accessing goods or services in premises open to the public (ie. interpreter.)
7. Where admission fees are charged, provide notice ahead of time of what admission, if any, will be charged for a support person (ie. discount?  free?)
8. Provide notice when facilities or services that people with disabilities rely on to access or use when goods or services are temporarily disrupted (ie. YMCA Collingwood is under construction.)
9. Train staff, volunteers and contractors and any other people who interact with the public or other third parties who act of your behalf on a number of topics outlined in the customer service standard. 
10. Train staff, volunteers, and contractors, etc. who are involved in developing your policies, practices and procedures on the provision of goods and services on a number of topics as outlined in customer service standard.
11. Establish a process for people to provide feedback on how to provide great services to people with disabilities and how you will respond to feedback and take action on complaints.  Make info about your feedback process readily available to the public.  (Put it on your website!!)

 Finally, if you have 20 employees or more, you must:

1. Document all your policies, practices and procedures for providing accessible customer service.  Meet other document requirements set out in the standard.

2. Notify clientele/customers that documents required under the customer service standard are available upon request.

3. If you are giving the customer service standard documents to a person with a disability, provide the information in a format that takes into account the person’s disability.

In part two of a survey conducted by Canada Mortgage and Housing Corporation (CMHC) across ten major centres in Canada, they found six percent of households purchased a home in 2008, down slightly from 7% in 2007.

The survey further stated:

• Across five of the ten markets surveyed, Halifax, Montreal, Toronto, Calgary and Vancouver, 17% of those who purchased primary residences in 2008 were between the ages of 18 and 24 years, while 16% were between the ages of 25-34 and 8% were between the ages of 35-44.

• First time buyers accounted for 36% of the households who purchased in 2008 (42% in 2007.)

• Seventy percent of those respondents, who had previously owned a home, bought one worth more than their previous home while only 19% purchased a home worth less.  59% of those previous owners upgraded to a large home and 25% purchased a smaller home.

• 73% of households purchased an existing (resale) home.  23% purchased a newly built home (down from 27% in 2007.)  Single-detached accounted  for more than 50% of the home purchases; while the remaining 50% was pretty much split equally amongst semi-detached, row/townhouses and apartments in 2008.

• 25% of respondents who purchased a home last year, bought a condo, with the majority of homebuyers aged 65 and up buying condominiums last year. 37% of householders between the ages of 55-64 purchased a condo in 2008 (43% in 2007.)

• In the ten major centres participating in the survey, 5% of households intend to purchase a primary residence in 2009.   This is down slightly from 2008 at 6%. 

• The majority (59%) of intended purchasers of a home in 2009 are currently renting. 

• Of those householders who plan to buy a home in 2009, most plan to buy a single detached home (55%).  A majority of those intending to buy in 2009, plan to buy an existing home.  50% of those intending to buy a home in 2009 plan to purchase a larger home; 23% intend to purchase a smaller home and 25% intend to buy a similar sized home compared to what they have now.  57% of those intending to buy in 2009 are 25-44 years of age.

• Of those intending to buy in 2009, 22% plan to purchase a condo; and of those, the majority is age 65 and older.

Back in September 2007, I told you about our foray into the world of real estate investment.  We purchased a condo in Collingwood that we rented to a fantastic family and, we are still very happy with our decision.  There’s more though.  One never knows where things can lead and many things have happened since then.

First, I was elected to the board of directors of the condominium corporation last year.  It’s been a tremendous learning curve but one I am so glad to have taken on.  Having book knowledge of the Condominium Act and all of the inner workings of a corporation is quite different than having practical knowledge as I do now.  Our little corporation may in fact be one of the more complex ones in the area for a variety of reasons and has therefore exposed me to a very wide range of issues from how parking is enforced to condo budgets, reserve studies, property maintenance and management.

When the condo development was first built, it had a playground for the children but over the years, it fell into disrepair and ultimately, it all but disappeared.  Residents have called for its refurbishment for a long time now but money was an obstacle.  This week, all that has changed.

At our last annual meeting, we put forward the idea of establishing a task force of residents to put together a business plan.  It was astounding to see almost every single person at the meeting step up and volunteer to be on the committee.  For the next two months, they worked together.  Our own tenant used his engineering skills to pull together a design.  The parents of one of our residents  donated a swing set and slide.  Other people donated time and equipment for land preparation and, a local company donated tires for edging and playing.  Before you know it, we had a very workable plan at a relatively minor cost.

This past week-end, we called for volunteers and the turnout was outstanding.  From 8 am to 6 pm, residents, property managers, owners and others worked side by side to build the playground.  It was accomplished in a day.  There was a BBQ.  There was lots of laughter.  The kids starting playing before the work was finished.  It was an amazing day.  More than building a playground, it was building a community.  Here are some photo’s:

The most common question REALTORS® hear is, “How’s the market?” I suspect that if you asked 10 people this question though, you’d likely get 10 different answers.

There are so many ways to view and interpret data.  Are we comparing areas?  Home styles?  Price ranges?  Month to month or year over year?  All of these things dramatically impact the findings so, BE CAREFUL in believing everything you read or hear!

Chris and I work hard to keep you informed on this blog with weekly hard data, monthly summaries and analysis.  We’re always looking for better ways to understand market conditions and trends:  daily monitoring of sales, traffic in open houses, multiple offer situations, active price ranges, sale-to-listings ratios, new home sales office activity, agent chatter, sale prices, listing prices… they all go into the mix.

One of the trends that I think is important, is the relationship of the number of new listings coming onto the market versus the number of sales.  There are seasonal trends but usually, both listings and sales will go up or down in some degree of concert.  This method over-rides that seasonal effect.

As I mentioned in a previous post , it is an easier way to follow market trends.  You’ll see a trend line on this chart.  When the two black lines start moving toward each other, it could be considered a strong signal that the market recovery is underway.

A few weeks ago, I learned a lesson in the obvious.  About how easily we take things forgranted.

While showing Blue Mountain properties to some buyers who were here from Asia, one of them asked me what the difference was between a cottage and a chalet.  It seems that in our discussions and in her research about Ontario real estate, the two terms came up at different times and she was curious.

It got me thinking about how I intrinsically just know the difference but it was challenging to explain in a way that made sense when I said it out loud.  So, since then I did a little homework on Google and interestingly, the terms have different usages in different parts of the world.

Generally speaking, Webster’s Dictionary defines a chalet as “A wooden dwelling with a sloping roof and widely overhanging eaves, common in Switzerland and other Alpine regions.”  In our part of Ontario, we typically refer to any mountain-oriented, recreational homes as chalets.  For example, a stucco dwelling used for vacations and week-ends would typically be called a chalet around here.  I’ve even heard many people refer to their condominium as their chalet.

In Canada, the term “cottage” usually refers to a vacation or summer home, often located near a body of water. However, according to a reference on Wiki, this type of property is more commonly called a “cabin” in Western Canada, Newfoundland and Labrador, a “chalet” in Quebec, and a camp in Northern Ontario, New Brunswick and in some northern US states.  Here in the Collingwood area, people tend to call a waterfront, vacation home a cottage.  A small and humble rural property might be referred to as a cabin.

“I’m going to the chalet this week-end to do some skiing” or, “We’re going to the cottage this summer” are phrases you’ll hear often.  Very generally, the location and seasonal use will dictate the default term used.

When you think about it, it’s not a wonder that someone who grew up outside of Ontario may become confused about these terms.  Either way, they are very nice to have!

When it’s time to buy or sell real estate in the Collingwood, Blue Mountain or Georgian Triangle area, contact Marg, an experienced and competent Broker who’s ready whenever you are!

After reviewing, crunching, tabulating and charting, I finally have a report to share on the 2008 Georgian Triangle Real Estate Board performance.  The Georgian Triangle area traditionally includes Collingwood, Blue Mountain, Wasaga Beach, Clearview, Grey Highlands and Meaford however, the data in some cases captures a wider area that includes towns on the edges of our typical trading area. 

It’s a tough undertaking to provide you with the fairest and most unbiased data because as Mark Twain once said, “Facts are stubborn, but statistics are more pliable.”  The outcomes change depending on the data used and variables like areas, types of properties, time frames and values all change the picture.  For this reason, I’ve used a variety of approaches and have provided data that you can interpret as you wish.

Three Important Points to Ponder: 
1. Our MLS® system uses average sale prices rather than median prices.  Neither is an exact science but when used comparatively, it gives us a general sense of trends only.  For example, the absence or presence of very low or very high-end sales can dramatically alter averages within small sampling groups.  In recent months, both TD and National Bank-Teranet have developed new way to measure house price indexes and the results showed dramatically different results from traditional measurements.  What they did show is that house prices have not declined as much as believed in Canada.
2. 2008 data is being compared only to 2007.  You should note that 2007 was a record sales year that represented the market peak.
3. The data on these charts is cumulative for the year and does not show trends.  For example, most of the decline in prices occurred in the final quarter of 2008.  That signals a new trend is underway.  (December and 3rd quarter only data to follow in a post coming to you soon.)

Nonetheless, we have what we have.  Below are data charts which you can click on to enlarge (‘cause who can read this little stuff?).

Summary
• Total sales activity has declined since May (not just the final quarter as believed)
• The total number of listings increased in every month of 2008 except for March
• The sales to listing ratio is firmly into the Buyer’s market zone.  This ratio is measured by dividing the number of properties sold by the number listed.  A ratio of under 40% suggests a Buyers market, 40-50% is a more balanced market and over 50% is typically considered to be a Sellers market.
• The 12 month average sale price for single family residential units in the major communities of the Georgian Triangle is down about 7.5% although Collingwood is actually up slightly.  If you exclude sales under $100,000 and over $1 million, the pictures changes substantially with the average sale price in 2008 down just 1.9% over 2007 using the same parameters.  In this case, the average sale prices are actually up in both Collingwood and Wasaga Beach.
• The average sale price of condos in the Georgian Triangle was up marginally for the year.
• There were 1634 active listings (all types) on the Georgian Triangle Real Estate Board MLS® at years end.

All in all, this is not as gloomy a picture as the media has portrayed.  There has been more of a decline in the number of sales rather than price although, the trend is that prices are clearly moderating now.  Stay tuned for the 4th quarter report examining this trend closer.

All MLS® data and/or statistics obtained from the Georgian Triangle Real Estate Board.

When it’s time to buy or sell real estate in the Collingwood, Blue Mountain or Georgian Triangle area, contact Marg, an experienced and competent Broker who’s ready whenever you are!

I’m amazed at the talent some people have for knowing what looks good.

Drs. Vecchio (yup, there are two of them) have done it again.  After transforming their last home, they took this tired older home and did it again.  Applying concepts of Feng Shui and old-fashioned good taste, they have transformed their new abode into a welcoming home and business.

Their Inner Harmony Family Chiropractic and Wellness Centre is located at 272 Ste. Marie St one block east of the main street in Collingwood’s downtown core.  The area is an emerging commercial district with many recent residential to commercial changes.

Congratulations Dave and Melissa.  You’ve done it again!

When it’s time to buy or sell real estate in the Collingwood, Blue Mountain or Georgian Triangle area, contact Marg, an experienced and competent Broker who’s ready whenever you are!

Part 4 of a 5 post series

Someone said to me recently that they thought we were nearing the bottom of the market.  I couldn’t disagree more and I think there is more bad news ahead and we still have a way to go before balance returns to the market.  There is an overbuild of inventory to clear and more importantly, countries around us that need to stabilize their financial and banking systems.  That’s going to take a little while.

I do however want to say again what I said in the last post.  What goes down, always goes up.  Stop reading the media reports whose goal it is to sell their product.  We are NOT Iceland, Britain or the U.S.  In an email to REALTORS® this week from RE/MAX Ontario-Atlantic Canada Executive Vice President, Michael Polzler, he did a great job of outlining some of the fundamental differences we have in Canada compared to these other economies:

1. Subprime mortgages represent less than five per cent of our market nationally.
2. Foreclosures occur in about one quarter of one per cent of mortgage transactions in this country.
3. Canadians have more equity in their homes.
4. We have less debt than our neighbours south of the border.
5. Speculation has played little or no role in existing home sales in Ontario.
6. The fundamentals of our economy are relatively solid. Of the G8 countries, only Canada is expected to show growth in 2008 and 2009.
7. The Canadian banking system is one of the best in the world, relying more on old-fashioned lending than innovative financial products geared toward profit.
8. The Canadian job market is stronger than the US, adding more than 200,000 jobs so far this year.
9. Interest rates remain favourable.
10. Housing values in Ontario major centres did not experience serious, double-digit price appreciation year-after-year for an extended period. Our markets were characterized by stable, healthy growth.
11. Immigration continues to play a key role in housing markets. Between 2001 and 2006, more than 1.1 million immigrants came to this country, with about half settling in the province of Ontario. Immigrants tend to purchase a home within the first five years of living in Canada.

In a nutshell, the stability of our banking system ranks #1 in the world and, the current market reaction is not caused by distress sales, foreclosures or bank failures such as in the U.S.

Yes, I think the market will still go down and yes, this also presents great opportunities for those who are ruled with their heads and not by fear instilled in their hearts.  It’s time to take a breath and use our heads as we go through this cycle.  Know the signs of market bottom and then watch for them.  Consider all the facts before making decisions.  Chose to work with a REALTOR® who can be a trusted advisor.

Next post:  Signs of the Real Estate Market Bottom

Related Posts:

Part 1:  So, How’s The Real Estate Market You Ask?
Part 2: The Things Sellers Need To Consider Right Now
Part 3: The Things Buyers Need To Consider Right Now

When it’s time to buy or sell real estate in the Collingwood, Blue Mountain or Georgian Triangle area, contact Marg, an experienced and competent Broker who’s ready whenever you are!
The Things Buyers Need To Consider Right Now

I was having an email chat today with Vancouver real estate Broker, Maggie Chandler.  In one of her emails back to me, she included a clip from a newsletter written by Vancouver Real Estate Guru, Ozzie Jurock that happened to have a little line in it that said, “We also hear of Intrawest being in trouble.” 

Huh?  Why had I not heard this?

So a quick search on Google revealed that yes indeed, there is some stress if not big trouble brewing at Fortress who purchased Intrawest two years ago in a multi-billion dollar deal. Fortress owns a number of resorts including our own Village at Blue.

According to an article in todays Globe and Mail Report on Business, Fortress  Investment Group, which is a U.S. based asset management fund, financed their purchase of Intrawest through a lending group that among others, included Lehman Brothers and, well, we all know what happened to them.  It seems that Fortress’ $1.68 BILLION U.S. loan came due today (October 23rd) and they are struggling to refinance that debt.

In another Whistler publication, they naturally put a more positive spin on the situation given that Whistler-Blackcomb is the starlet of the resort group.

So what now?  Will they be able to refinance the debt and if so, will it be on favourable or harsh terms?  Will they go bankrupt (I sure hope not) or will they sell?  Will it be business as usual?  Given the global state of economic affairs, my guess is that’s it’s going to be a long winter for this company.

UPDATE:  The Globe and Mail reports this morning (Oct 24th) that an 11th hour deal was reached to refinance the loan despite the fact that Fortress stocks have dropped over 80% in value over the last year.  Whew.  For now.

When it’s time to buy or sell real estate in the Collingwood, Blue Mountain or Georgian Triangle area, contact Marg, an experienced and competent Broker who’s ready whenever you are!