How Does Starbucks Affect Toronto Home Values?

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I read an article recently that says living near Starbucks could raise your home's value. That got me thinking: What fuels gentrification? The answer seems to be coffee.

First, let's look at Leslieville. A client mentioned to me that there used to not even be a place to eat lunch there. In 2004, the average price for a semi-detached home was $310,000. In 2006, Starbucks opened its doors. Semi-detached home prices went up in 2007 to $467,000, and by 2013, the median price was at $748,000.

The same can be said for Dorset Park. Home prices were rising in 2014, and then in January of 2015, Starbucks opened. The average price of a bungalow in 2013 was $481,000. By early 2015, homes were selling for as much as $660,000, with an average price of $586,000. That's a whopping 79% increase in two years, and Starbucks moved in at the height of the increase. Now, this area sees a lot of bidding wars.

When Starbucks moves in, an increase in home value occurs. In order to see the most dramatic appreciation, make sure you get into a neighborhood before Starbucks shows up. The key is knowing what areas are gentrifying before they do.

We are experts on that. Buying a home in an area about to gentrify is the best way to build equity. If you have any questions on today's video, or on real estate in general, give me a call or send me an email. I'd be happy to hear from you.

How to Handle Multiple Offers On Your Toronto Home

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Selling a home?  Click here for a free home value estimate. 
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We've been hearing a lot of questions about multiple offer situations because the market has been heating up lately, so today we're going to walk you through what you can do to come out on top.

We're currently still in a strong seller's market in Toronto with an absorption rate of 58.5%, and this tells how many homes are up for sale compared to how many homes have sold. A neutral market would have a 25% absorption rate, which means 1 out of every 4 homes will sell in a month. 

If you're a buyer, you will need a skilled Realtor to help you write a strong offer. Sellers will be focusing on price, deposit, closing date, extras, conditions, and terms. For most sellers, price is the most important factor, but the other five factors can be equally important depending on the needs of the sellers.

Sometimes you can make a stronger offer by removing conditions from the offer, or sometimes writing a personal letter to the seller can help. This can help the seller relate to who you are as a person, and it may help to put a face to your name. Let them know why you want the home and how great a homeowner you would be for the property. 

Now, as a seller it's important to make sure that your home is clean, staged, marketed well, and you should also have a pre-listing property inspection performed. Staging your home can actually increase the value by 5%, and a pre-listing inspection will give buyers the peace of mind they desire when buying a home. 

If you get multiple offers in the first few days, don't jump on it too quickly. If the offer is above the market value, I would suggest hopping on it. Overall, the offer that is most convenient for you is the one that you should choose. 

If you have any questions about these things or if you would like assistance with real estate in Toronto, please don't hesitate to contact me.

Pay Off Your Mortgage Sooner!

Buying a home? Click here to search all homes on the MLS
Selling a home?  Click here for a free home value estimate. 
Call us at (416) 438-2536 for a FREE home buying or selling consultation

Today we want to talk to you about mortgages. More specifically, we are going to talk about mortgage payments, and how you can pay more of your mortgage off in less time. 

Over the years, we have found that there is a way to pay your mortgage off much sooner, without putting extra financial burdens upon yourself. The way to do this is by making bi-weekly payments. While you are paying your mortgage twice as often, you are paying half as much. If you make these 26 payments a year, you will be making an extra payment without even noticing it, in your head or in your wallet.

If you make bi-weekly mortgage payments on a 25-year mortgage, you can actually have the sum payed off 7 1/2 years sooner, without doing much extra work to get there.

This is a great strategy that we encourage our clients to adopt. It makes financial sense, and doesn't put any more of a burden on you. In fact, it takes a lot of the burden off of your plate, about 7 1/2 years to be exact. 

If you're waiting for the market to stabilize, you have been waiting too long. We don't know how long interest rates will stay where they are, but we do know they are historically low right now. Locking in a low rate around 4% today will not only give you more purchasing power in the present, but will save you thousands of dollars in interest over the years. 

We are always looking to give you a helping hand in the Toronto real estate market. If you have any questions for us at all, don't hesitate to reach out and give us a call. We would be delighted to help.