$229,900 for a Toronto home? The problem is the location

225 Prescott Ave in Toronto is an one-bedroom bungalow, in move-in condition and listed at just $229,900 — half the going rate of the average house in Toronto.

But it also has a Hydro tower rising behind its backyard, Go Trains go by 6 times per day and the only bathroom is in the basement.

“I’ve had million-dollar homes that were easier to sell than this one,” says Stephanie Cluett with a laugh, the Royal LePage realtor who is trying to sell the 750-square-foot house. Its been on the market for 8 weeks, a long time by Toronto standards.

The price is a steal by Toronto standards. the 2nd cheapest house in Toronto currently. But nobody wants it because of the triple whammy hydro tower, Go Trains and inconvenient bathroom location.

“It’s cheaper than a condo and you end up with more living space because it’s got a basement and a backyard. Usually a house at this price needs tens of thousands of dollars in renos just to make it livable,” observes Cluett.

The spacious kitchen has new paint and new hardware, but what it really needs is some renovations to add a ground level bathroom. But anyone who doesn't mind stairs would be just fine with the extra exercise.

Two previous offers both fell through, possibly due to old age (the elderly woman is believed to have realized that the stairs to the bathroom would be too much) and the second offer from a 28-year-old single guy fell through when he failed to qualify for financing — twice.

In a city where land itself is expensive $229,900 is a pretty reasonable price. (I'd buy the house if I thought I could afford the payments.)

Wow, nice grass on this house!

I really like the lawn on this house. Literally, ON the house. :)

WOW!

Even the interior of this house is amazing. Look at those stair cases!

One Bloor breaks ground finally / Toronto Real Estate

CANADA - What is arguably Toronto’s most important real estate site is one step closer to becoming a landmark today.

David Gerofsky, president of developer Great Gulf Group of Companies, broke ground at One Bloor today on the once controversial $450 million project at the intersection of Yonge and Bloor streets. The original buildings had been razed years ago by a different developer, leaving an empty chunk of land surrounded by a metal fence which has been an eye sore ever since.

Meanwhile millions have been spent on improvements on the Bloor St. corridor (improving the look of sidewalks, upgrading bicycle spots, adding flowers and trees, etc) which is often compared to Manhattan’s Fifth Avenue, the vacant lot at 1 Bloor was a reminder of failed potential, of things to come that were never realized, on what is Canada’s most expensive retail street known as the "Mink Mile".

Its also the intersection at the southeast corner at Yonge and Bloor where Toronto's two major subway lines meet. Its basically the arguably most convenient place in Toronto to live and one of the most important pieces of Toronto real estate. (I currently live just 10 minutes walk east of there.)

While the lot has been dormant for the last few years, president Gerofsky promises bigger things to come. For one thing, the development is getting taller than previously stated.

The new building known as One Bloor will now soar 70 stories, with the addition of five more floors as it anchors the corridor.

“I think it was indicative of the success of the project that we decided to add more floors,” says Gerofsky. “We were being conservative when we launched, but certainly the possibility of going higher was always in the back of our minds.”

The day cannot come soon enough for realtor Anna Cass. She was one of the first in line to buy a unit. She also represents dozens of investors in the building who have already purchased from her.

“I still have a rock that I kept from the first time they demolished the original buildings,” says Cass. “I can’t believe I’m going through this a second time. But I’m glad they’re finally building something. It’s been an eyesore. We have a lot of people who have been waiting a long time.”

After 15 months on the market, the project is now 85% sold which means it now has ample time and funding to begin building.

With the additional five floors, One Bloor now has about 732 units in the building, up from nearly 700. The new penthouse is up for grabs and can be as large as 8,000 square feet depending on market demand.

The original builder, Bazis International said the penthouse had been sold in 2008 to a Hong Kong entrepreneur for a then-Canadian record of $25 million, but that project later fell through due to incompetence and became insolvent during the global financial crunch in 2008.

“We can’t control economic conditions, but most of our units have already sold, and we have buyers who have put down substantial down payments for 85 per cent of the units,” says Gerofsky. “We’re in good shape.”

There are 100 units remaining, but the builder says he expects to sell them all before the building is complete by December of 2014, less than 3.5 years from now.

At the base of the building there will also be 100,000 square feet of retail space. As Bloor Street is Canada’s most exclusive retail strip, and the 37th most expensive in the world (according to Colliers International) having a mall at the base of the building will be exceptionally profitable.

Major corporations and retailers such as Apple Canada, are already eyeing the space.

Buyers have been wooed with images of the swooping building filled with piano-like curves designed by Hariri Pontarini Architects. Toronto’s Mink Mile will finally be getting a piece of world class architecture (with the exception of the ROM, most of the buildings on the street look pretty stale and boring).

See Older Post on this Topic: One Bloor East

1,000,000 American Foreclosures Delayed until 2012

In the United States an estimated 1 million foreclosure-related notices for defaults, auctions, and home repossessions that should be filed by lenders this year will be pushed back until 2012, according to the latest report by RealtyTrac.

While the delays give more home owners time to catch up on their payments and try to avoid foreclosure, housing experts warn this means the looming shadow inventory of distressed properties likely will continue to plague the US real estate market years to come.

"The best-case scenario is we don't get back to normal levels of foreclosure activity until 2015, which means the housing market recovery gets delayed by at least a year," says Rick Sharga, a senior vice president at RealtyTrac.

Overall, the number of American homes repossessed by lenders in the first half of this year dropped 30% compared to the same period in 2010. But foreclosure processing delays (lenders taking longer to take action against delinquent borrowers) is stalling the foreclosures.

About 1.2 million homes received a foreclosure-related notice in the first six months of this 2011, roughly one in every 111 American households.

Nevada has the most foreclosures; one in every 21 households in Nevada received a foreclosure notice in the first half of 2011.

The foreclosure process continues to lengthen too. From April and June, American homes took an average of 318 days to go from the first stage of foreclosure to being repossessed by the lender — up from 298 days in the first three months of 2011. (In New York State, the foreclosure process took the longest at an average of 966 days or 2.6 years; Texas boasted the shortest at 92 days.)

Source: “Delays in Bank Processing Push Likely U.S. Foreclosures Until 2012, Stalling Recovery,” Associated Press (July 14, 2011)

Cheap Deals in the USA... caution is key.

There are a lot of cheap real estate deals in the USA right now, thanks to the real estate market there collapsing back in 2008. Even now the United States economy continues to struggle and housing prices have yet to recover.

Thus you could get a small 9-acre farm with a 3 bedroom, Florida home for $360,000 USD... prime real estate, yet cheap by Canadian standards.

Or you could buy your dream home in Arizona for $276,000 USD... about 60% below the home’s peak value of $650,000 in 2007.

But these cheap / prime real estate deals don't come without a healthy dose of caution, so here's some advice I found for people looking to buy real estate in the USA.

1. A “site-built” house, i.e. no mobiles, modulars or prefabs, which are harder to insure and resell.

2. Look for places with plenty of space. You will appreciate this later.

3. No renovations necessary and sufficient space for everyone.

4. Look for places with easy access to local amenities and attractions, especially if you're just visiting there in the winter. ie. state forest trails.

5. Offer a price of $300,000 maximum. Anything over that and they're still dreaming of 2007 prices.

6. Make your offer conditional on insurance, an increasing problem in some states with so many major insurers no longer writing new policies. If you’re a Canadian snowbird the insurer may insist on a security system.

7. If you offer on a short sale, foreclosed or auction property, make it clear you want proof that the offer has been presented.

8. Don’t buy thinking you’re going to make a killing; buy because you love it and plan to use it for years.

9. Don’t assume the property tax on the listing sheet is what you will pay. There are a number of state exemptions for permanent residents and U.S. citizens.

10. Look at hundreds of homes online using the local multiple listing service, and then pick dozens of open houses in all price brackets to get a feel for the local market.

11. Eliminated from your list homes that were more than 10 years old so you don’t spend precious vacation time doing renovations.

12. Remember to count your blessings you live in Canada where we have a stable economy.