Our New House - Renting Vs Buying during a Housing Bubble

 Back in April of this year my wife, my son and I moved into a new house. It isn't our dream home, but it has a great backyard, a large front yard, lots of space, great amenities nearby, conveniently close to work...

I gotta admit I love this house.

However there is 1 big problem. It is a rental.

We are renting a house for almost $4000 per month, and while that is a good chunk of change, we see it as a transition between where we are now and buying a house later on.

It would be nice to buy a house (in Toronto), but let's face it the housing prices right now are ridiculous (in Toronto), and I really don't want to buy a house (in Toronto) because I am worried the housing market (in Toronto) will implode any moment.

See the problem?

Toronto's housing prices have become so overheated and ballooned into a giant housing bubble where even if we can afford to buy a house, I wouldn't want to because what if the housing bubble implodes?

We could end up buying a house, it implodes, and we lose the house and every dollar put into it through no fault of our own.

And mark my words, a housing bubble implosion is coming. It even has a name:

THE BABYBOOMER SELLING SPREE!

Or something like that. Something Babyboomer in the name. The Great Babyboomer Bubble?

Yeah. I like that. Let's use that. The Great Babyboomer Bubble.

So here's what is going to happen.

During the next 10-20 years a lot of babyboomers are going to start dying off due to old age (or possibly COVID because 10% of them didn't get vaccinated) or moving into elderly homes and selling their old homes, and this in turn will cause a surplus of houses being put on the market.

At some point this surplus of houses will reach a tipping point, at which point the housing bubble will implode. Housing prices will drop significantly within months.

This will then trigger a second wave of sell offs... from foreign investors. And from domestic investors too, but most of the housing investments is from foreigners.

Toronto, Vancouver and Montreal have seen huge ballooning in housing prices thanks to foreign investors who buy houses, rent them out, and then watch the housing prices skyrocket - so they're making money two ways: Money from the rental, money from their investment going up in value.

But what happens when the market goes in the opposite direction?

Buying a house suddenly gets cheaper, which means people renting can finally afford to buy a house, but they're going to wait until the market bottoms out before doing so.

The investors meanwhile are trying to sell their houses in a hurry before the market bottoms out, which means they need to SELL NOW. Right away. So they drop their prices in hopes of getting a faster sale.

But when many investors (and babyboomers) sell their houses all at once it results in too many houses becoming available at the same time. The babyboomers will be the catelyst, but the foreign investors dumping their properties back on the market is what will cause a downward spiral in housing prices.

When it finally bottoms out... That is when my wife and I will finally decide to buy a house (in Toronto).

Or the other alternative is that we buy a house outside of Toronto, somewhere that the prices are more reasonable.

You would have to be really dumb to buy a house in Toronto right now.

Hence why my wife and I are renting. When the housing prices finally collapse (and they will, just look at the chart below to see how big the Toronto housing bubble has become in the last 15 years) we can expect the average house price in Toronto to drop to approx. $400,000, give or take a few.

So remember when the Great Babyboomer Bubble bursts and you own a house, please think of me... And how I warned you not to buy right now.

And for all of you homeowners who are thinking of selling... Yes, you should sell NOW while the prices are still high.

Toronto Home Rentals - Finding what you want is Difficult

So my wife and I have been very happy living in Leaside for the past many years, but we're now looking for a new place for us, our son, and my mother-in-law.

There is a big catch however. We ideally want to rent a house that has a bedroom on the first floor so that my mother-in-law won't have to climb the stairs.

This also means we need a full bathroom on the first floor so that my mother-in-law doesn't need to climb the stairs to reach the bathroom.

However finding a house that is for rent... In the area we are looking for... With a minimum of 3 bedrooms... With at least 1 bedroom + 1 full bathroom on the ground floor... With room for 2 cars in the driveway or garage...

Well, it is proving to be difficult.

Plus coupled with the fact that landlords are sometimes, unfortunately, racist. We have encountered this particular problem twice already where landlords are coming up with excuses not to rent to us. Not because of money reasons, my wife is a lawyer, I am gainfully employed as a personal trainer whenever COVID is not interfering with my work, and my mother-in-law is retired and has a hefty pension plan from the Hospitals of Ontario Pension Plan (HOOPP). So we definitely have the money, but landlords are a sketchy bunch when it comes to renting to African-Canadians.

As a Caucasian I admit this is my first time encountering this problem. I am admittedly used to just asking to rent a place and people just automatically saying "Yes, sure you can rent it!" Most of the places I have rented in the past didn't even ask for a credit check. (Yes, you read that correctly. White people are not used to having credit checks when we ask to rent an apartment or a house. People just usually take us on our word that we can afford the place. I fully recognize that I have been benefiting from white privilege for decades.)

There also seems to be a lack of availability in the East York region of Toronto that we are looking in, so we don't really have a lot of options.

We can...

1. Look elsewhere. We might have more luck in a different neighbourhood.
   
2. Wait and keep looking for new places to come on the market in the desired neighbourhood.
3. Do both 1 and 2.
   

Really those are our only options right now.

I have to assume that somewhere out there is a landlord who isn't racist with a house that fits our needs.

The parking issue alone is annoying. Not every home even comes with a lane way or garage and some streets just use "on street parking", which unfortunately gets into legalities of where homeowners can actually park their cars without fear of being towed.

The other big issue happening right now is...

COVID.

Which makes viewing homes a little bit trickier, but COVID has also thrown a wrench into the works with respect to house prices and also home rental prices.

What we have noticed is that the prices for renting a house keep coming down, which should really make landlords eager to find a renter - regardless of the colour of their skin! But apparently racist landlords would rather earn less money than rent to someone who is African-Canadian or to an interracial couple.

11 Tips for Apartment Renters for getting a Better Price

Here are some tips for renters to help them secure a better price and find a better apartment:

1. Research the Market: Before starting your apartment search, research the local rental market to get an idea of typical rental prices in the area. This knowledge will help you determine if a rental price is fair or if there's room for negotiation.

2. Determine Your Budget: Set a clear budget and stick to it. Consider your monthly income and expenses to determine how much you can comfortably afford to spend on rent. This will help you focus your search on apartments within your price range.

3. Be Flexible with Timing: If possible, consider looking for apartments during off-peak rental seasons. Landlords may be more open to negotiation and offering discounts during these times when demand is lower.

4. Be Prepared to Act Quickly: Good apartments tend to get rented out fast, so be prepared to act quickly when you find a suitable place. Have your necessary documents (proof of income, ID, references, etc.) ready in advance to speed up the application process.

5. Use Multiple Listing Platforms: Explore various online listing platforms, real estate websites, and social media groups dedicated to rentals. By casting a wider net, you increase your chances of finding hidden gems and competitive prices.

6. Negotiate Rent: Don't be afraid to negotiate the rent with the landlord. If you've done your research and have valid reasons, such as comparable properties at lower prices or a longer lease commitment, you may be able to negotiate a better rental price.

7. Consider Roommates: If you're open to sharing living space, consider finding roommates to split the rent and utilities. Sharing expenses can significantly lower your housing costs and allow you to afford a better apartment.

8. Look for Long-Term Leases: Landlords often prefer tenants who are willing to commit to longer lease terms. Consider signing a longer lease, such as a one or two-year lease, as it can give you leverage to negotiate a lower monthly rent.

9. Consider Older Buildings: Older buildings or apartments that may not have the latest amenities can often offer more affordable rental prices. Don't overlook them if the location and condition are acceptable.

10. Build a Positive Rental History: Being a responsible tenant with a good rental history can give you an advantage when negotiating or applying for apartments. Maintain good communication with your current and previous landlords, pay your rent on time, and take care of the rental property.

11. Hire a Rental Agent: If you're struggling to find the right apartment or negotiate the price, consider hiring a rental agent. They have experience and knowledge of the local market and can help you find better deals and navigate the rental process.

Remember, finding a better price and a better apartment may require some patience and persistence. It's essential to prioritize your needs and preferences, be prepared, and approach the rental process with a positive and proactive mindset.

Rental Fraud

I think it is disgusting despicable that people will take advantage of the poor and/or mentally ill in these rental fraud schemes.

It also shows that local governments are not doing their jobs properly to both police such situations, and to provide housing for the mentally ill so they don't end up in abusive situations like this.

If you are not familiar with this crime, here is what happens:

1. The criminal rents a house, often providing fake documents for their identity to make it difficult for police to later track who they are.

2. The criminal then rents out the home by pretending to be the homeowner to multiple people all at once, taking their first and last month cheques and cashing them. So for example if they rent out the home for $2000 per month, that is $4000 per each person duped. If they rent it out to 20 people all at once they could make $4000 x 20 = $80,000 for one giant fraud. They might even insist on being paid in cash, making it even easier for them to run off with the cash.

3. The people who thought they were renting the house all show up on moving day and discover that they are not the only people who was trying to rent the house, and furthermore discover that the person they were renting from was not the true owner.

The alternative to this fraud is even more heinous, it is when people rent out individual rooms in the house, for a comparatively cheap price, and then collects the pension cheques of the elderly or welfare payments for mentally ill people, effectively robbing them blind and take advantage of the fact that they are senile or ill equipped to defend themselves.

Unfortunately it is also very difficult to even find the criminal involved as they continually do these frauds, often moving from neighbourhood to neighbourhood. Some might not even live in Canada, but rented the place remotely and then rented it out remotely to any people foolish enough to send cheques or cash in the mail.

Rent Control returns to Ontario

Ever since 1991 there has been a loophole that allowed the owners to set and change rents as they saw fit, which meant they could gouge renters for more money if they wanted to.

Rent control still applied to buildings that were built prior to 1991, guaranteeing that rentals could not be increased annually by any amount above and beyond the rate of inflation - and was capped at 2.5% even if the rate of inflation was more than that.

But new buildings that were built in 1991 or after, did not have rent control.

The loophole was created in 1991 in order to encourage property developers to build more rental units. Rent control was considered to be cost prohibitive, ie. not profitable enough. Building rental units made no sense to someone meaning to make a profit, as it would take significant time to finally get back their investment in building the property.

So to remedy the problem, the province got rid of rent control for all new buildings that were built after 1991.

Unfortunately the industry took advantage of the situation, built lots of condos instead, and then rented them out.

And then more recently, renters would see their monthly rent skyrocket to double to whatever they were paying before.

eg. Valerie Bruce, a renter living in Liberty Village, recently received a notice saying her rent would double from $1,600 to $3,200, so she decided to move.

And she was not alone. Many other Torontonians saw their rent double within the last year, as they are quite literally being squeezed out of the market.

Part of the current problem is that vacancies right now are really low. It is currently 1%, the lowest vacancy rate Toronto has seen in 7 years - not since 2010 has it been this low.

And when availability is low, prices tend to go up because the demand is high.

However doubling the rent on people who already are living in a particular place, well that is just ridiculous. It is that kind of flagrant disregard by landlords that has basically given them a bad rep and caused the provincial government to step in and put a stop to this nonsense - see the Ontario Fair Housing Plan below.

So it is the fault of landlords for getting greedy in the first place.

It is also the fault of real estate developers for taking advantage of the 1991 loophole to build condos between 1991 and 2017, when they were supposed to be building affordable apartment buildings. The purpose of that 1991 loophole was so they would build more affordable apartments, but they didn't build more apartments, they built condos instead - some of which ended up being used for high priced apartments by investors. There was nothing affordable about it at all.

The Ontario Fair Housing Plan

• Expanding rent control to all units, including those built after 1991.
• Annual rent increases for existing tenants can be no higher than the rate of inflation. 
• Rent increases will be capped at 2.5 per cent, even if the rate of inflation is higher.
• A standard lease will be developed in multiple languages.
• Tenants will be adequately compensated if asked to vacate for "landlord use."
• Change becomes effective as of April 20, regardless of when legislation is passed.

That last part means landlords will not be able to raise rent by more than 1.5 per cent this year — the annual provincial rent increase guideline for 2017, which was determined based on the inflation rate in 2016.

However, a landlord can raise rent by any amount in between tenant residencies. For example, if one tenant paying $1,600/month chooses to move out of their unit, the landlord can charge the incoming tenant $2,000/month or more.

It is also theoretically possible for renters to get in a bidding war if multiple people end up vying for the same unit at the same time.

Apartments and Condos in Mallorca

Why Mallorca makes a great option for condo buying instead of Toronto

Mallorca (also known as Majorca, so I will alternate which name I use) is a tiny tropical island off the coast of Spain in the Mediterranean Sea, an island that is 80% dependent upon tourism for its entire economy.

So you would think that the prices of condos and apartments there are probably pretty expensive, right?

After all, we're talking about a tiny country that in 2013 sold 30 estate villas for over 5 million Euros each - the most expensive of which was 18 million Euros. That is a lot of very expensive estates for one little Spanish island.

Thus you would think Majorca really only caters to wealthy estate properties - but we are forgetting that the locals at Mallorca have to live somewhere too, right?

Which means that wherever they are living, it has to be affordable - either by renting a property, owning a condo, or owning a house.

What I have learned is that vacant beach front properties are very expensive. Vacant lots on the beach are in the 450,000 to 600,000 Euros range. (That is $675,000 to $900,000 CDN.)

I browsed some websites for condos and apartments in Majorca and on one of the websites I found 3 small condos for sale 69,000 Euros, 90,000 Euros and 90,000 Euros. (So between $103,000 and $135,000 CDN.)

Now compare those prices in Majorca to small condos in Toronto - and they are about the same. A small condo in Toronto costs about the same as a small condo in a tropical paradise.

And to be fair, the really expensive condos in Mallorca are about the same prices as the really expensive condos in Toronto - a city that so far this winter has average -15 degrees outside, so bitterly cold you start thinking "Hey, why am I living here? Why aren't I living in a tropical paradise instead???"

At which point you have to stop and think why anyone would bother to live in Toronto when they could live in Majorca or some other tropical place instead.

Like just look at these photos I found of Mallorca. I think they demonstrate the difference.

Yada yada yada, basically why would anyone live in Toronto - one of North America's most expensive cities to live in - when you could live in Majorca instead for the same price?

Job? Learn to telecommute. Most of the high paying jobs in Toronto are in the banking and investment industry - jobs that could easily telecommute. Entire workplaces could all move to Mallorca and still hold meetings and do their regular banking stuff while enjoying sun, surf and relaxing drinks in a paradise.

It boggles my mind that tropical islands are not the financial centres instead of cold cities like London, New York and Toronto.

Apartment Rental Scams in Toronto

How to Recognize and Avoid Apartment Rental Scams in Toronto

If you're looking for an apartment, the last thing you want is to fall victim to a rental scam that takes your hard earned cash and leaves you with nothing. Scam artists like to take advantage of prospective tenants because emotions involved in the apartment-hunting process can make people more vulnerable and susceptible to making mistakes, often just by trusting people when you should not.

If you are feeling excitement and enthusiasm about finding a new home, your eagerness might make you become more trusting. Scam artists also prey on apartment hunters who are in a time crunch (because of a job relocation or personal issue, for example) and are desperate to find a new place as soon as possible.

What is a Rental Scam?

Rental scams are a variation on a theme. The scammer tries to get money from a prospective tenant for an apartment that the scammer is in no legal position to rent - meaning they don't own it, are not the current renter looking to sublet, etc. The apartment might be real or even fictitious. The scammer could even be a real landlord, former landlord or often just an impostor.

Often they take possession of your money and then you never see or hear from them again. Only to find out the apartment was never theirs in the first place.

Fortunately, there are many ways apartment hunters can lower the likelihood of getting tricked in a rental scam.

#1. Always view an apartment in person - or have a friend or family member view it for you. Never rent anything you haven't seen in real life and can verify it is really on the market. (Seeing lots of photos of it doesn't count.)

#2. If you see an apartment for rent on Kijiji or Craigslist, and the owner is overseas (and unavailable to give you or a friend a tour of the apartment) then it is most likely a scam.

#3. Ask the owner what landmarks / amenities are near the apartment. If they cannot name any then it is probably a scam.

#4. If they try to pressure you to send a payment immediately, it is probably a scam.

#5. Don't assume that just because someone says "God Bless you!" that they are a good Christian or anything like that. Scam artists love pretending to be religious and kindly because it leads people into a false sense of security.

#6. If the price seems to be too good to be true, it probably is.

#7. Don't be in a rush to pay immediately. Take your time and make sure the apartment is for real.

#8. Visit the building and when a tenant leaves ask if they like the building managers, the building in general - maybe they even know the person who lives (or used to live) in the apartment you are hoping to rent.

#9. Check Toronto real estate rental listings - if you cannot find the apartment that is being rented, or worse, if it is being rented, but at a different price - then something is fishy. A quick way to do this is to google the address of the apartment and look for rent listings.

#10. Often the scammer pretends to be the landlord, in which case you should always insist on meeting the landlord in person at the apartment so you can see it in person. If they refuse to meet you, or have someone else meet you, if they don't produce the keys and show you the apartment - then something is fishy. eg. A landlord that meets you there, but doesn't have the keys should not be trusted.

#11. Never let your guard down. Never give them a money order, cash, or anything other than a cheque. With a cheque you can call the bank and ask them to put a stop on the cheque - which means you won't lose your money if it turns out to be a scam.

#12. Don't assume that if you used a reputable website to find the apartment for rent that it is legit. Many rental scams are placed in legitimate rental websites and renters news catalogs.

#13. Sometimes the scammer might even use the name of a real landlord - in which case find out from a secondary source what their phone number is so you can contact them directly.

#14. If something feels wrong or fishy, look elsewhere. Avoid anything that is a red flag.

#15. If they ask you to send money wirelessly (not a cheque) for an apartment you haven't seen, its a scam.

#16. If they are asking you to lease the apartment and want you to pay before signing lease documents, its a scam.

#17. Never rely on promises, photos or even video of the apartment. See it IN PERSON.

#18. Even if you do see it in person, it is always possible they might try to rent it to multiple people at the same time - and they don't even own it. Moving day comes and 20 people all try to move into the same apartment - complete with 20 different copies of the same key. Make certain they are the owner of the place and not just some Joe Schmoe who lived there for 2 months.

#19. 99% of apartment rental scams are because the person didn't visit the apartment in person.

#20. If the supposed landlord seems too eager to lease the apartment to you, its a scam.

#21. If the supposed landlord suddenly lowers their price in an attempt to make it more appealing, its a scam.

#22. If the supposed landlord didn't check your credit score / criminal background / occupation, its a scam.

#23. If they are extremely willing to negotiate the rent and other lease terms with you, its a scam.

#24. If you're asked to pay 3 or more months in advance (or a whole bunch of upfront fees), its highly suspicious.

#25. If you say you want to consult a friend or a lawyer (regarding a lease agreement) and they tell you don't need a lawyer or to consult your friend, then they are up to something fishy and they want to rush you into signing and paying.

#26. If you ask the supposed landlord about other apartments they have for rent and they either don't have any, or they do but it is more expensive, be extra suspicious.

#27. If the landlord has a convenient excuse for not being able to meet you or show the property its a scam. eg. In the hospital, out of the country, visiting family for a funeral, etc.

#28. If the person has really bad English (like Nigerian spam emails), its more likely to be a scam.

#29. If they offer to help you get a green card for the country in question, its a scam.

#30. If they are Canadian but don't have a Facebook profile, it is suspicious. (80% of Canadians have Facebook profiles.)

What To Do If You Get Scammed?

If you become the victim of an apartment scam, you might feel there's not much you can do. But there are steps you can take to help catch who's behind the scam, get your money back, and put this unfortunate experience in the past.

#1. If you sent a cheque, put a stop on that cheque by calling your bank.

#2. Call the police. They can advise you on other options you can do to try and get your money back.

#3. Ask the bank to trace who cashed the cheque.

#4. Contact the publisher where you saw the ad. See if they have any contact info for the scammer which allows you and the police to track them down.

#5. If the scam occurred in the USA contact the Federal Trade Commission (FTC), which is the federal consumer protection agency. They can also provide tips for tracking down scam artists.

#6. Review your correspondence and look for red flags - and anything that might be a clue to the scam artist's whereabouts.

#7. Try finding another one of their ads, pretend to be someone else and see if you can catch them the 2nd time around.

#8. Learn from this experience as a lesson on when not to trust people.

#9. Warn others not to make the same mistakes you did.

Low Income Housing for the Elderly

We need more Low Income Housing for the Elderly - and more low income housing in general in Toronto.

The cartoon below is about the crisis for housing for the elderly in the USA, but it works equally well here in Canada.

Many elderly people are also on a fixed income and renting their apartments - and often are found dead only when the landlords realize they missed paying their rent.

Graduated and Living at Home

The infographic below is proof that there is something wrong in America...

Both in terms of lack of jobs, but also a shortage of affordable housing for people. And by affordable housing I also mean the cost of renting. House prices and the costs of renting are simply way too high for university and college graduates to be able to afford to live on their own.

And the careers that they trained for simply aren't available because too many people are training for things that there simply isn't enough jobs in that field to go around.

Which says to me more Americans should be BUILDING affordable houses, hiring people to do construction, creating jobs in the construction industry - while simultaneously making affordable housing more available.

There is ALWAYS more room for more people in the construction industry - especially the green homes industry. People who become experts at how to build green eco-friendly homes are guaranteed to find work in comparison.

Note: I had to modify the original infographic because it was too tall and wouldn't fit on here properly.

Solving Toronto's Homeless Problem

How many homeless people are living in Toronto?

What would we need to do to permanently solve Toronto's homeless problem?

Homelessness is much more common in large urban cities like Toronto, Vancouver, Edmonton, Calgary, and Montreal. It is a constant presence and a symptom of a city's bloated real estate prices and the people who fall through the cracks of society.

In 2005 federal authorities in Ottawa estimated that Canada has 150,000 homeless people across the country - however homeless advocates say it is closer to 300,000. (And since 1 out of every 6 Canadians live in the GTA we can estimate that there is about 50,000 homeless people in the GTA.)

According to a 2007 report the annual cost of homelessness in Canada is approximately $6 billion in emergency services, community organizations, and non-profits.

Mathematically that means homelessness is costing governments approx. $20,000 per year per homeless person.

Also, contrary to stereotypes, only 6% of homeless people suffer from schizophrenia. Depression and affective disorders affect 20 to 40% of homeless people.

What is also interesting is that some of these homeless people do have jobs - but they sleep on the streets because they cannot afford to rent an apartment. They end up temporarily homeless, sometimes for months at a time, living on the streets until they can find a place they can afford. (There are national statistics for this on the StatsCan website, but I have been unable to find statistics just for Toronto.)

This tells us several things:

#1. Renting an apartment in Toronto is too expensive and there isn't enough low income housing in Toronto.

#2. There is a market for smaller apartments that are priced for people in a lower income bracket.

#3. There needs to a safety net for people who are "temporarily homeless" to help them find a new apartment quickly.

#4. For the 6% of homeless people (approx 3,000 people) who suffer from schizophrenia there needs to be a safety net to help get these people treatment.

So really what is needed is the following is...

Special places for the 3,000 schizophrenic homeless people in Toronto. This would require a significant investment in real estate and care services.

A government agency designed to help people who are temporarily homeless to find a new place quickly.

More subsidies for low income housing. Enough for approx. 47,000 people.

More new apartment buildings being designed with a portion of the apartments designed for lower income people. If every new apartment / condo building in Toronto was required to have just 1% of their units designed for lower income people we could solve this problem pretty quickly.

We should also note that the Canadian government USED TO have such measures in place. Back during the 1980s there was abundant support for instutions geared towards helping schizophrenic people, and the building of new structures for low income housing was dramatically higher - in 1986 alone the Canadian government supported the building of 30,000 new units - but over the years the numbers kept dropping, reaching a mere 7,000 in 1999.

So really supporting such measures would really be about going back to the ways things used to be done in the 1980s and earlier.

Now you might think "Hey, doesn't Toronto already have homeless shelters?"

Well, yes, we do. But homeless shelters are not a permanent solution - and their rife with crime, theft, sexual assaults, assaults, drug problems. Most women refuse to stay in homeless shelters because they're not considered safe. Even women-only shelters are dangerous.

Quotes about Homelessness in Toronto by social entrepreneur / activist Edward de Gale

"Canada is the second coldest country on earth and with a climate like Canada’s, energy, like food and housing is a necessity of life." - Edward de Gale.

"It is a little known fact that the inability to pay basic utilities/energy is the second leading economic cause of homelessness in this country." - Edward de Gale.

"Over 50,000 households a year have their power disconnected in Ontario while thousands of others struggle to provide the necessary energy to stay warm and cook meals. That’s one household with their power cut every 10 minutes, every hour, of every day, for a year." - Edward de Gale.

"Many Ontario households must choose between eating and heating, and seniors and those with special needs must choose between medication and heating." - Edward de Gale.

"Families, with minor children, unable to provide basic utilities/energy for their children are vulnerable to child protection orders because they are unable to provide the necessities of life." - Edward de Gale.

Edward de Gale is the executive director of "Share the Warmth", a local Toronto charity dedicated towards helping homeless people and getting them off the street. He founded the charity in 1995 and by 2002 it had grown to help 4 million people in 400 communities across Ontario. 18 years later it is still growing strong. [Source: Edward de Gale wins 2002 City of Toronto Community Service Volunteer Award.]

The Most Expensive Places to Rent an Apartment

Did you know Toronto is one of the most expensive places to rent an apartment? In Toronto the average price of a two-bedroom apartment is $1,259 (as of May 2012).

Seriously, its up there.

True, its no Tokyo or Hong Kong, but its still pretty pricey. Lets run down the list for a second...

Note: The following list is a composite list which also takes into account other factors like "cost of living" and the price per square foot. Figures are from the ECA consulting group. (All prices are in USD.)

Tokyo
$4,352 per month for a two bedroom apartment, average.
The capital city of Japan has a notoriously high cost of living. Its one of the reasons I went to South Korea instead when I was teaching English overseas. Tokyo has been on the list of most expensive cities for a variety of topics (not just apartment rentals) for many years. Its the result of super high demand in central Tokyo. Its cheaper in satellite cities further from the center.

Moscow
$3,500 per month for a two bedroom apartment, average.
You might not think Russia's largest city should be in the second spot on the list of most expensive cities to rent. Its because this Soviet city is also known for being home to a large number of billionaires and it jacks up the average dramatically, but don't expect to find anything much cheaper. The prices are high for other reasons too, but mostly its the billionaires (and possibly their mistresses).

Hong Kong
$2,830 per month for a two bedroom apartment, average.
China's economic growth has been red hot in recent decades and Hong Kong has become a world mecca for trade and commerce. That means lots of rich visitors looking for places to sleep and they don't want to stay in a hotel (which is even more expensive if you're there for multiple months on a contract).

London
$2,824 per month for a two bedroom apartment, average.
Old London town means you'd better have more than two pence to rub together. Like Hong Kong jolly old London is still a top location for business and commerce in Europe, and its a mecca for many rich expatriates who visit the United Kingdom regularly. Space in London is at a premium and the prices keep going up.

Singapore
$2,810 per month for a two bedroom apartment, average.
Singapore is a popular tourist and business destination and housing prices definitely reflect the influx of tourists, business people, workers and strong economic growth.

Abu Dhabi
$2,500 per month for a two bedroom apartment, average.
The United Arab Emirates is synonymous with wealth nowadays. Not so much for vacations although that is growing. Its the business of oil that has caused this place to have soaring rental prices in the past decade. Abu Dhabi beats Dubai when it comes to the cost of apartment rentals. Both cities have seen a small decline in rental prices over recent years, but this garden city of the gulf is expected to continue to see growth (and periods of decline) depending on the fluctuation of oil prices.

Paris
$2,390 per month for a two bedroom apartment, average.
Paris used to be one of the most expensive cities for rentals, mostly due to artists, romantics, tourists and so forth... but apparently romance is on the decline. The average price is 1,650 Euros, which fluctuates a bit.

San Francisco
$2,100 per month for a two bedroom apartment, average.
Lets ignore that San Francisco is the future fictional home of Star Fleet Academy and Earth's government... that is after all, just fiction. However when you consider San Francisco's proximity to the Silicon Valley and it being home to many of the top technology companies in the world I guess you really can't be surprised by its high cost of living and rentals.

New York City
$1,359 per month for a two bedroom apartment, average.
Frank Sinatra's favourite city to sing about is a financial mecca, but its also crime ridden and has its share of poverty. A New York City apartment isn't even in the top 10. Its #17 down the list. Suffolk-Nassau on Long Island is more expensive at $1,592 per month. While the rentals in NYC are more expensive than the rest of the USA (ignoring San Francisco) its comparatively cheap when contrasted with Tokyo. Within NYC Tribeca and Soho are two of the most expensive, and Harlem is one of the cheapest. Many apartments in Manhattan are rent-controlled as a method of keeping them more affordable so maybe this explains why NYC is so low on the list.

OTHER EXPENSIVE PLACES TO LIVE
(Ignoring Cost of Living)

Europe: Netherlands, Amsterdam; Finland, Helsinki; Ukraine, Kiev; Italy, Rome; Switzerland, Geneva; Monaco.

Caribbean: Cayman Islands, Grand Cayman; Barbados, St James; British Virgin Islands, Tortola; Bahamas; Bermuda.

American real estate websites are interesting

For fun I sometimes look at real estate websites in the USA. I especially like real estate websites from Hawaii, just because its exotic.

Lets take midsouthhomebuyers.com for example, a website which specializes in Memphis real estate investing which basically means they take your money and invest it in rental properties, rent the property out and then you receive a portion of the rent.

Its an interesting concept... but what is more interesting is the question of how much these properties are actually worth. Remember that Memphis was hard hit during the US recession of 2007-2009.

From 2006 to early 2009 the median prices of homes in Memphis dropped from $105,000 and dropped down below $75,000. Right now the median price is hovering around $85,000.

Compared to prices here in Toronto, real estate in Memphis is dirt cheap.

Now I admit that is not as cheap as some other locations (ie. Detroit), but it is still a bargain.

What midsouthhomebuyers.com does therefore is hunt around for bargains, then flip them as rental properties and eventually (when the real estate market has recovered) sell it for a profit.

Lets say you buy a property for $100,000 and rent it out for $1,000 per month. 2 years later, depending on the demand, you might be able to sell the same property for $110,000... and better yet you've pocketed $24,000 (minus property taxes, income taxes, maintenance costs and lawyer fees) from the rent.

If you look at the ROI (Return on Investment) for many of the properties on midsouthhomebuyers.com it varies between 32% and 48%. It really makes you realize that renters in the USA are getting bushwhacked by high prices and that investors are cleaning up and laughing all the way to the bank.

I do think you could do this yourself, assuming you had enough spare cash. My uncle David and an investment partner did this years ago back during the 1970s and 1980s. They bought several properties near Niagara Falls, waited for them to shoot up in value and then sold them all. Then (for fun) the two of them had the bank give all the money to them in cash, bought some champagne and rolled around in the cash. My uncle even has photos of the event of him and his buddy rolling around drunk in all the cash.

So you can make a lot of money investing in real estate. You can go through a company or broker that specializes in it or you can do it by yourself or with an investment partner.

And in places like the USA where the economy collapsed a few years ago its easier to find deals where if you invest wisely (and spread the money over multiple properties, thus alleviating the risk) you can make a bundle.

During the height of the recession in Detroit there was properties being sold for $1. Just one dollar. They had been seized by the federal government for failure to pay back taxes. If a person wanted to buy those properties they could fish around, check which properties could be snapped up for $1 and whatever the back taxes were and they could get a chunk of land which 10 years from now might be worth $50,000 to $100,000 or more when the economy has recovered and Detroit becomes a desirable place to live in again. Too late now. All the really nice properties have been snapped up.

Cities like Memphis in comparison are less risky. The economy there is better. The prices are higher and the ROI is less, but at least there is comparatively little risk.

Food for thought.

My QUEST for a Condo - Trading up, the Kyle MacDonald Way!

Kyle MacDonald is a Canadian Blogger who created a website called "One Red Paperclip".

What he did was barter and trade his 1 red paperclip for other items and by the end of the year had traded up to a two-story house (seen here on the right).

This is my new quest for this real estate blog. I am going to trade a number of small household items into larger items and eventually, hopefully, get myself a house here in Toronto.

If you've looked at the real estate prices here in Toronto (the average home is almost $500,000) then you can only conclude that people with little means have no chance of ever owning a home because they're stuck in the endless cycle of renting.

Plus my credit rating sucks, so I could never get a mortgage.

But if I can do what Kyle MacDonald did, then perhaps I could trade my way up to a condo. Sounds like a plan!

So how did Kyle MacDonald do it???

1. On July 14th 2005 Kyle traded the paperclip for a fish-shaped pen.
2. Kyle then traded the pen the same day for a hand-sculpted doorknob, which he nicknamed "Knob-T".
3. On July 25th 2005, Kyle traded the Knob-T for a Coleman camp stove (with fuel).
4. On September 24th 2005, Kyle traded the camp stove for a Honda generator.
5. On November 16th 2005, Kyle traded the generator for an "instant party": an empty keg, an IOU for filling the keg with the beer of the holder's choice, and a neon Budweiser sign.
6. On December 8th 2005, Kyle traded the "instant party" to Quebec comedian and radio personality Michel Barrette for one Ski-doo snowmobile.
7. Less than a week later Kyle traded the snowmobile for a two-person trip to Yahk, British Columbia.
8. On January 7th 2006, the second person on the trip to Yahk traded Kyle a cube van for the privilege.
9. On February 22nd 2006, Kyle traded the cube van for a recording contract with Metal Works in Toronto.
10. On April 11th 2006, Kyle traded the recording contract to Jody Gnant for a year's rent in Phoenix, Arizona.
11. On April 26th 2006, Kyle traded the one year's rent in Phoenix, Arizona, for one afternoon with Alice Cooper.
12. On May 26th 2006, Kyle traded the one afternoon with Alice Cooper for a KISS motorized snow globe.
13. On or about June 2nd 2006, he traded the KISS motorized snow globe to Corbin Bernsen for a role in the film Donna on Demand.
14. On or about July 5th 2006, he traded the movie role for a two-story farmhouse in Kipling, Saskatchewan.

So in 14 trades Kyle managed to trade up from a mere red paperclip to a house in Saskatchewan.

Certainly I have some household items that, given time, I could trade up and get a condo here in Toronto.

So I am looking around my apartment.

What could I trade away that would be pathetically small and yet worthy of trading?

And then I spotted it...

A Hot Wheels 2008 Dodge Challenger. Like the one shown here, except mine is out of the package. Approx. value is $2.

I am willing to trade my Hot Wheels 2008 Dodge Challenger for something of greater value that is "Easily Tradeable".

I will be tracking the dates of each trade I make, who I trade with and I will be throwing in a link to your website of choice (ie. a charity of your choice if you don't own a website).

Sincerely,
Charles Moffat
Toronto, Canada
February 27th 2012

IF YOU HAVE SOMETHING TO TRADE ME PLEASE CONTACT ME at charlesmoffat@charlesmoffat.com!

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How to buy a house with no money down

By Mark Weisleder

If you have a good job and want to buy a first home, but don’t have a down payment, can it be done? The answer is maybe and depends on how you answer these questions.

How's you credit score?

In order to qualify for a mortgage you must have a good credit rating. Try and reduce or eliminate all outstanding credit card debt first. Cancel credit cards that you are not using.

Do not change jobs just before applying for a mortgage. The lender will want to see that you have a stable employment history. You can go to Equifax.ca to obtain a free copy of your credit score. If any information in your credit file is incorrect, take the time to get it fixed before applying for any mortgage loan.

Do you qualify for an insured mortgage? With an insured mortgage, you are able to finance up to 95 per cent of the purchase price, either through CMHC or a private mortgage insurer. You will need to have at least the remaining 5 per cent down payment, as well as approximately an additional 1.5 per cent to cover the land transfer tax, legal, moving and other closing fees.

You may also want to set some money aside to do some work on your new home before you move in. To obtain the insured mortgage, you will have to demonstrate that you have enough monthly household income to pay your mortgage as well as your household expenses. It is a good idea to try and get pre approval for a mortgage, so you know before looking how much you can afford, based on the down payment that you have.

Is a mortgage with no down payment possible?

Some lenders offer qualified buyers the entire down payment on the day of closing, if the buyer has good credit, stable employment and qualifies for the lender’s closed-mortgage rate over 5 years. This can allow you to buy a home worth up to $400,000 in most cases.

The disadvantages with these mortgages are that if you want to discharge them early, you will have to pay back a pro-rated portion of the money received. And you will probably be paying 3 per cent more interest on a monthly basis than you would if you were using a variable rate mortgage, which is popular today among most home buyers.

This extra interest will amount to more than the imputed value of the down payment over a five year period, yet it will be offset by the fact that you get to close your purchase now, with a down payment that you currently don’t have. Other lenders offer similar “cash back” mortgages, which may cover your 1.5 per cent closing costs or more, on similar terms and conditions.

What about the agent’s commission?

Most buyers use a real estate agent to find the right home and negotiate the best price. They provide advice on how to handle a bidding war, make sure your home is professionally inspected, and arrange the proper insurance. They may introduce you to a mortgage lender. Most buyer agents will try and obtain their commission from the seller. But if the seller refuses to pay them, it is expected that the buyer will pay the agent.

Let’s say the buyer agrees to pay their agent 2.5 per cent commission for their efforts. The agent finds a house and the buyer wishes to pay $400,000, with the understanding that the seller will pay the buyer agent the 2.5 per cent commission, or $10,000, plus HST.

Now let’s say the seller refuses to pay the commission. The buyer will then offer $390,000 to the seller and will pay the agent directly. The difficulty with this example is if you are a buyer with very little down payment, you do not have this extra $10,000 plus HST to pay the agent.

CMHC has indicated that in the above example, they will only finance the commission if it is included in the $400,000 sale price. This to me is wrong and needs to be changed. CMHC should permit a buyer such as the one in this example who pays $390,000 plus $10,000 directly to the buyer agent, to be able to finance this entire amount with an insured mortgage.

Hopefully, this will change, once CMHC sees the impact of all the recent changes to real estate brokerage models as a result of the settlement between the Competition Bureau and the Canadian Real Estate Association.

Until that happens, buyers need to be up-front and honest with their buyer agents. If you know you do not have the money to pay the buyer agent yourself, as in the above example, explain to the agent that every offer you submit must be on the understanding that the seller will be paying the commission directly.

Other stuff. If you are contemplating a home with a basement apartment to help carry your expenses, be careful to make sure that the unit has legal zoning and complies with the local Fire Code. In addition, make sure that you notify your insurance company about this.

Finally, always have a professional home inspection done. You do not want to find, after closing, that the house requires repairs that you can’t afford.

Even if you have a low down payment, by being properly prepared, your dream of home ownership can come true in 2011.

Building permits in August down

Developers in Canada were still building at a rate of $5.7 billion in new building permits in August, but its down 9.2% since July according to Statistics Canada, which released the data today.

The decline was mostly due to lower demand in commercial, institutional and industrial buildings in August, which are down 22% since July. The decrease was worst in Ontario, British Columbia and Quebec.

Canada's residential sector meanwhile has seen 4 months of decline, buoyed in August by a 2% increase in residential permits.... mostly apartment buildings and condos in British Columbia and Ontario.

But building permits are still up by 11.4% compared with August of 2009.

One Bloor East / Number One Bloor

It was the scandal everyone was talking about in 2009, the collapse of plans by the Bazis to build a huge skyscraper condo/hotel on the site of One Bloor East. Bazis International is an architectural company from Kazakhstan with strong ties to Toronto in Canada. The company normally builds residential communities, office towers, government buildings, hotels, apartments, theatres, shopping malls, and industrial complexes.

Thus when they announced in 2007 that they were tearing down the old Harvey's and adjoining buildings to build a huge 81-storey condo / hotel, they seemed like the perfect company for the job.

It was to be the most expensive and prestigious condo in Toronto. Rich people were lining up down the street for days just to get a chance to bid on the properties. Fist fights were breaking out and arguments as tempers and patiences became frayed. When they were finally allowed in to bid on some of the condos available the company announced they had doubled all the prices. Even so the condos sold like hot cakes and they were sold out in a matter of days.

The finished building was to have 189 hotel rooms and 612 condominium units. The glass and metal structure would have used the latest environmentally friendly and efficient technology making it one of the greenest condos in Toronto.

But all was not well within Bazis International. They had taken out loans to buy the land in the first place and to deal with construction estimates they decided to shorten the building to 67 floors. The Bazis had purchased the land for $63 million in 2007, but they ended up defaulting on a $46 million loan from investors.

By 2008 the global lending crisis was hitting hard in the USA and investors wanted their money back. They were forced to sell the property and give back the deposits from condo buyers. Bazis sold the property in July 2009 to Great Gulf Homes and the land currently sits empty.

Local high school teacher Stephen Young and a number of friends have since started a Facebook group and a petition promoting the idea that the vacant land be used for a public park... or more precisely "Bloor Yonge Square". But its doubtful the city will come up with $60+ million to buy the land and turn it into a public space.

Great Gulf Homes plans to build a 65-storey condo, using the name "Number One Bloor", and will be designed by Hariri Pontinari Architects. The first 6 floors will include retail space, a mall, a movie theatre multiplex, a cafeteria, restaurants and an outdoor terrace open to the public. The condo will have 687 units. See the architectural renderings below.





Of course such a condo is beyond the means of mere mortals like myself, but one can dream can't they?

Extreme Heat kills Bed Bugs

Some homeowners are turning to extreme measures to kill off their bed bug problem. One solution (and often an expensive one) is to kill the bed bugs using heat, by essentially turning your home into a large convection oven.

There's two ways to do this:

#1. Hire a professional like 'ThermaPureHeat' or 'Magical Pest Control' to kill your bed bugs by pumping hot air into your home, at a cost of roughly $1 per square foot this is an expensive method. They pump hot air into your home for several hour, raising the temperature inside to 50 degrees C.

At 43 degrees C the bed bugs start coming out of the woodwork looking for a place that is cooler. Within 20 minutes of living in 46 degree C temperatures all the adults are dead, due to the heat and water loss. It takes another 30 minutes before the eggs are dead too. At 50 degrees for several hours all the bed bugs and their eggs are dead and to guarantee none managed to hide in a crack in the wall the company has fans to blow hot air into every nook and cranny. The extra time spent is to make sure every section of the home is permeated with the heat so that nothing survives. (Its recommended you remove anything that is vulnerable to the heat, like CDs, DVDs, etc.) All organisms have a thermal death point and for bed bugs its approx. 46 degrees C (115 Fahrenheit).

#2. Do It Yourself. You will need an industrial heater, fans and you will want to raise the temperature to 60 degrees C to be extra certain they're all dead. You will also want a thermometer gun and a fire extinguisher to make certain all the places in the home are heated to at least 46 C. The fire extinguisher is in case you have anything combustible that you forgot about.

However this technique of heating your home doesn't work that well on condos or apartments. The bed bugs tend to get into the neighbouring apartments and they're much harder to get rid of.

REMEMBER TO TURN OFF THE FIRE ALARMS! The last thing you need is a false alarm visit from the fire dept. from the heat setting off the fire alarm.

According to ThermaPureHeat they've only had 1 fire in almost 100,000 jobs and that was because of a lit cigarette near the propane, and nothing to do with the hot air being pumped into the building.

I know a third solution. You invite Stephen Harper over and he kills all your bed bugs with a load of hot air.

Leaside, a dream neighbourhood in Toronto

The Bank of Canada has raised interest rates again, making it more difficult for people to get a mortgage at an affordable rate. The key overnight lending rate has been raised from 0.5% to 0.75%.

With that in mind it makes sense to me that people might want to consider buying a house in a region of Toronto which is often overlooked.

Leaside is a small but quiet neighbourhood right in the middle of Toronto. Most of the homes in Leaside are traditional detached two-storey designs dating from the 1930s and 1940s, all-brick constructed, with distinctive intermixing of cut stone around entryways and front bay windows. Homes in Leaside often have exterior details such as leaded glass windows, arched / peaked entrances and broad wooden door casings. Its a level of artistry that hasn't been seen in decades and for someone like myself who enjoys older architecture, a pleasure. Inside you will typically see traditional wooden mouldings, baseboards, and floors... the type of things you'd see when visiting your grandparents.

Or in my case, my parents' farm... or the 1920s apartment building I currently live in.

I look at the architecture of some of the homes in Leaside and I just drool. They're "perfect", almost idealized, like a Carl Schaefer painting.

Not all the homes in Leaside are what I'd call affordable. Some of the really nice homes are $900,000 or more. Depending on where you look however there are more economical alternatives. South Leaside has a variety of semis and bungalows with price ranges hovering around $500,000.

The reason for this is because Leaside is a good place for anyone in the upper middle-class wage bracket. So that means people like myself probably couldn't afford to live there... but I can still dream right?

Sure, its not the multi-million dollar homes of Rosedale... and its not one of the soon-to-be-a-slum condos by the waterfront either. Its just a nice quiet neighbourhood with the following perks:

#1. Conveniently close to both Yonge Street and the Don Valley Parkway. Commute time to downtown is 15-30 minutes.

#2. Cycling distance from downtown. In fact there's plenty of bicycle lanes and trails in the surrounding region. (As a bicycle mechanic, I appreciate these things.)

#3. Abundant local parkland. Serena Gundy Park, David A. Balfour Park, Moore Park Ravine, Flemingdon Park, Sunnybrook Park, Blythwood Ravine, Sherwood Park.

#4. Lots of local schools for children and teens. Maurice Cody School, Blythwood School, Bessborough Drive School, Rolph Road School, Leaside High School, Northern Secondary School, Marshall McLuhan Secondary, North Toronto CI, Don Mills CI.

#5. Oh and its only a short bicycle ride to the Ontario Science Centre, a huge chunk of parkland, fishing in the Don River and the archery range just south of the OSC (as someone who enjoys the sport of archery I can appreciate that).

The area is named after the Lea family from Lancashire, England who arrived in Canada in 1819. John and Mary Lea later built the first brick house in York township in 1829. In 1841 their son William later bought additional land and built an octagonal home which he dubbed "Leaside". The house is no longer there, but its location was where the Leaside Memorial Gardens is now.

I did manage to find a painting of the octagonal home however, shown here.

A lot has changed since Leaside was once prime farmland. Now there's three subway stations nearby, Eglinton, Davisville and Bayview, a plethora of restaurants, boutiques and a combination of small "family businesses" and larger retail stores.

The history of the area includes:

The Leaside Junction Station, one of the busiest train stations and train yards in Toronto from 1894 to 1969.

The Leaside Viaduct, a bridge built in 1927 across the Don Valley.

Residential construction in Leaside didn't begin until the 1930s. In 1967 Leaside became part of East York and eventualled was amalgamated with Toronto in 1997. The area is popular with families, since it has such quiet streets, very little crime and a large number of schools / parkland. Many parents consider it to be one of the ideal locations in Toronto to raise kids.

In the 1990s a number of "exclusive" condos and townhouses were built in the region, attracting more families to the area. Many of Leaside's local shops are geared towards children and mothers, although the area also boasts antique shops, specialty stores and pubs. There's also libraries, community centres, indoor ice arena and an indoor swimming pool, curling rink and an auditorium. The local Sunnybrook Park even has horseback riding stables.

Seriously, freaking horse stables! Who wouldn't want to live in Leaside???

Well, maybe if you were allergic to horses or you have Hippophobia (the fear of horses)... but otherwise, com'on! Leaside is like a dream neighbourhood most people can only fantasize about living in. Of course, if you have a good job and can afford to live there that is another matter entirely.

Learn more about Leaside here:
Leaside : Prime Toronto Neighbourhoods
Search Leaside Homes
A Brief History of Leaside

Electricity Rates & Bedbugs

Would you buy a house with bedbugs?

According to veterans in Toronto's real estate industry its something that to many homebuyers is a deal breaker. If the house has bedbugs it can lead to lawsuits over the cost of spraying and removing the annoying insects. Especially if the previous owners failed to mention them.

According to real estate appraiser Barry Lebow he now sprays his jeans with bug spray before entering houses. Its an occupational hazard. “I promised myself that I wouldn't bring home bedbugs again — that stuff is murder,” says Lebow, admitting he accidentally brought bedbugs home with him after inspected a Toronto home. “We didn't sleep for three weeks.”

Blame new laws against pesticide use in Canada. Only farmers with permits are allowed to use pesticides now and getting the permits cost several hundred dollars.

Bedbugs are not life threatening, but they're MORE annoying than an army of mosquitoes. If you've ever been attacked by mosquitoes you know how horrible they are.

In 2009 Toronto city hall formed a committee to look at the problem as bedbugs are becoming a growing nuisance in Toronto, hurting the well-being of many Torontonians. And the fact we can't use pesticides to kill them makes removal very difficult.

Some homebuyers are even putting bedbug clauses into their contracts, along with other clauses covering standard problems such as leaks, moulds, termites and whether the home has ever been a marijuana grow-op.

In 2009 apartment residents in two Des Moines, Iowa, apartment buildings filed a $7.4 million USD class action suit against management for ignoring the bedbug problems in their building. The suit also demands that the buildings not be allowed to rent to new tenants until all the bedbugs have been removed first.

There is even a website, bedbugger.com, which tracks tenant and buyer issues.

Its now being recommended that people check for bedbugs both in person and online before they buy a house or condo... even if its just in a neighbourhood building, because the critters are known to spread to neighbouring homes quickly... as easily as hitching a ride on the pant leg of the local postman.

Worse... people living with bedbugs often get fed up with them and try and find a different place to sleep. This migration often results in the bedbugs migrating too.

In June, Ontario MPP Mike Colle started promoting a private member's bill to protect tenants against bedbugs. If passed in the Autumn the bill would amend the 2006 Residential Tenancies Act to require landlords to disclose information with respect to bedbugs and other pests... because otherwise many landlords would prefer to lie about it so people don't know about the extra critters who will be biting them at night.

Some landlords are so paranoid about their reputation they are demanding bedbug removal services send their invoices and bills to a corporation number... and not to their company name.

Such services are booming anyway, up approx. 20% from 2009. Prices vary but expect to pay $400 for a two-bedroom house or $500 for a three bedroom home. Try bedbugscanada.com if you're looking for a local Toronto company.

This is a big shift from 2003 when bedbugs were practically non-existent in Toronto. There were only 46 reported cases in 2003. By 2008 there was over 2,500 during the year. Its believed there will be over 3,000 reported cases in 2010.

While you're checking for bedbugs there is several other things you should ask about:

Electricity Rates

Ask to see the sellers electricity bills (and their heating bills too, if applicable).

Then determine the average they pay for month. Assume an increase if you have more people in your family, especially if you have teenagers who consume more electricity.

Then calculate how much do you like to run the AC full blast in the summer... I run it all the time myself.

Once you have an idea of what it will cost, then you need to calculate how much money would you save if you signed a contract instead (buying your electricity either at a bulk rate over a period of several years, or buying it at a constant rate regardless of the time of day).

Most electricity companies (Ontario Hydro, etc) are moving to time-of-use prices, forcing customers to shift consumption to off-peak periods... however if you want to avoid this you could sign a fixed-price electricity contract.

But to do this its recommended you compare prices first before signing. The following website from the Ontario Energy Board will be helpful: www.oeb.gov.on.ca. You can also compare natural gas prices on the website too. This website is good too: www.energyshop.com.

Lets say you use 960 KWh per month, above the so-called Ontario average of 800 KWh.

If so your bill is likely $127.41 if you are currently with Toronto Hydro, of which $68.95 was the cost of electricity.

You are also paying $44.62 for delivery, $7.12 for regulatory charges and a $6.72 debt retirement charge. (Feel ripped off? Me too.)

Don't forget the 13% HST on top of all that.

Now when comparing companies you have to realize that some companies are a complete ripoff... Direct Energy for example would be charging $179.86 for the same thing and you'd be stuck in a 5-year-contract... I worked for Direct Energy years ago and I admit they are high-sales-pitch, lots of fluff and gain customers by scaring them with rumours that electricity rates are going to rise. Its a scare tactic and it works.

But if you shop around you MIGHT be able to find a deal. Or you might not. It really depends what you're currentl being charged and whether you're being ripped off.

Its entirely possible you could get stuck with a fixed-rate contract where you are actually paying extra... and what happens if you move later on? Weigh your options carefully. Signing a fixed rate contract also includes an extra $21.12 fee... a provincial benefit which gives more money back to the grid.

To learn more about the provincial benefit check the Independent Electricity System Operator’s website.

If it was up to me I'd calculate how much it would cost to install solar panels and windmills (enough to provide the needed 960 KWh or whatever you happen to us), a geothermal heating system to save on heating and electricity costs... and then calculate how many years it would take to pay off.

And while I was at it I'd make a point to purchase household items which use less electricity and retrofitting the home so it has better insulation (saves on both heating and air conditioning).

I think its best to know such things before you buy a house... the last thing you want is a surprise when the electricity bill comes... or when you're bitten by bedbugs.

Don't Gamble with your House

Some people like to gamble. They think its the easy way to either make money or save money. If you ever heard a "hot tip" my advice to always be skeptical and do all your research before jumping on proverbial bandwagon.

Let me elaborate.

A few months ago economists from the TD Bank and CIBC predicted that housing prices in Toronto might fall as much as 10% by 2012. That doesn't mean they will fall, nor does it mean they might fall the full 10% they described. It might only fall 1% or it might go the opposite way and housing prices might go up between 1 to 10%.

Some homeowners however have apparently thought this means this is a good time to sell their house, but instead of buying a new house they've opted to find a place to rent. (See Homeowners Staying out of Real Estate Market After Selling) The problem is that renting a house in Toronto is also ridiculous expensive and comes with its bidding wars involved. There are a lot of people out there looking to rent.

In fact Toronto and Vancouver have two of the lowest vacancy rates in all of Canada. The vacancy rate in Toronto is a mere 2.2% and Vancouver isn't much better at 2.7%. This makes finding a suitable place to rent both difficult and expensive. The two cities are epicentres for Canada's real estate boom, but its only booming because there is such a huge demand for housing. The demand is driven largely by university graduates who never leave and the constant inflow of new immigrants who need housing, so much so that the demand for houses and apartments never disappears.

Lets say you have a house worth $1 million right now. If you sell it, according to the TD Bank & CIBC, your house (or one equivalent to it) may only be worth about $900,000 two years from now. It might or it might not. Some home owners are apparently willing to take that gamble and are selling their houses, renting a place, and then waiting for house prices to cool down.

So they find a place to rent at $2,000 month... they wait two years and spend $48,000 on rent. What if housing prices only dip by 4.8%? They just wasted $48,000 which could have been spent paying off their mortgage. Or worse, housing prices could up instead and they will be kicking themselves for selling a home they had purchased when prices were still reasonable.

Sure, you might be save a bit of money on land taxes and maintenance, but you're also losing the convenience and security of owning your own place. There is a reason people prefer to own their home instead of renting. Its a well known fact "Renting is for suckers!"

My advice is that people shouldn't rush into this kind of gamble based on the speculations of economists. Even economists admit they can be wrong and frequently are. All it takes is an economic blip to throw all their estimates out of whack.

Look before you leap off the deep end.

See Also:

Toronto Home Bidding Wars Are Back

Why Home Owners Want to Throw Recycling Rules in the Garbage

What is Your Listing Agent is Saying About Your Home?