Kate Naccarato's blog

Buying a condo is an exciting step, but it’s essential to go beyond aesthetics and thoroughly evaluate the property and its overall management. Whether you’re a first-time buyer or a seasoned investor, this guide will help you identify the main concerns and ensure a wise purchase.

1. FINANCIAL HEALTH OF THE CONDO CORPORATION

• Concern: Poorly managed finances can lead to higher maintenance fees or special assessments.
• What to Look For:
  • Review the status certificate for reserve fund details, fee increases, and lawsuits.
  • Confirm there are no major repair projects planned that might increase...

Real estate is one of the most significant investments you’ll make, but it comes with financial responsibilities, including various taxes. Understanding these taxes can help you plan better, minimize surprises, and make informed decisions. Whether you’re buying, owning, or selling property in Canada, here’s a breakdown of the taxes you need to consider:

1. Land Transfer Tax

When you buy property in Canada, you’ll need to pay a Land Transfer Tax (LTT). In Ontario, this tax is based on the property’s purchase price. However, Toronto buyers face an additional Municipal Land Transfer Tax...

Investing in Toronto's real estate market offers promising opportunities, but understanding Return on Investment (ROI) is crucial for making informed decisions. ROI measures the profitability of an investment, calculated as the net profit divided by the initial investment cost. In real estate, ROI encompasses rental income, property appreciation, and expenses like maintenance and taxes.

Calculating ROI in Toronto Real Estate

To assess ROI, consider:

• Rental Income: Monthly rent payments from tenants.
• Property Appreciation: Increase in property value over time.
• Expenses: Costs such as...

Are you interested in building wealth through real estate but unsure where to start? Whether you're a seasoned investor or just dipping your toes into the market, our Real Estate Investing Panel is designed to provide you with invaluable insights and strategies from some of the top experts in the industry.

This exciting event, Brewing for Wealth, will take place on November 14, 2024, at Brewing Brokers, where you'll have the opportunity to hear directly from professionals who have mastered the art of real estate investing.

What You’ll Learn: The panel will address three key topics that are...

Buying your first home is an exciting milestone, but it can also come with a few unexpected challenges. As a real estate agent who’s worked with many first-time buyers, I’ve seen common mistakes that can lead to unnecessary stress and extra costs. Drawing from both my professional experience and personal stories, here are some of the most significant mistakes to avoid when purchasing your first home.

1. Not Budgeting for Hidden Costs

One of the biggest mistakes first-time homebuyers make is underestimating the full cost of homeownership. Beyond the down payment and mortgage, there are...

Owning a home has long been seen as a cornerstone of financial stability and personal freedom. Governments have consistently encouraged homeownership by introducing policies aimed at making it easier for first-time buyers to transition from renting. In 2024, with a surplus of condos on the market and favorable government programs, first-time buyers have a unique opportunity to step into the housing market.

1. Government Policies That Encourage Homeownership

The Canadian government has implemented various programs and policies designed to make homeownership more accessible, particularly for...

What is a Vendor Take-Back Mortgage (VTB)?

A Vendor Take-Back Mortgage (VTB) is a unique financing arrangement where the seller of a property extends a loan to the buyer for part of the purchase price. Instead of relying entirely on bank financing, the buyer receives a portion of the mortgage directly from the seller. This type of mortgage can be used to bridge the gap between the buyer’s financial resources and the property’s asking price.

In 2024, vendor take-back mortgages have gained renewed interest due to higher interest rates and stricter lending criteria from traditional financial...

Are you on a work permit in Canada and wondering if you can buy property without paying the hefty 25% foreign buyer tax? Good news: if you hold a valid work permit with at least 183 days left, you are exempt from the foreign buyer tax and the current ban on foreign buyers.

The Foreign Buyer Ban and Exemption for Work Permit Holders

Since January 1, 2023, Canada has imposed a ban on foreign buyers purchasing residential property in an effort to cool the housing market. However, work permit holders with at least 183 days of validity remaining are exempt from this ban. This means you can buy...

How a 30-Year Amortization Affects Monthly Payments

One of the most significant aspects of this policy is the ability to spread mortgage payments over 30 years instead of 25. This longer payback period can significantly reduce monthly payments, making it easier for first-time buyers to manage their cash flow.

Let’s use the example of a $1.1 million home:

• Purchase price: $1.1 million
• Down payment (20%): $220,000
• Mortgage amount: $880,000

Assuming a 5% interest rate, here’s how the monthly payments break down with a 25-year vs. 30-year amortization:

• 25-year amortization: ~$5,120/month

...

The Toronto condo market in 2024 is facing significant headwinds. With an oversupply of listings, rising interest rates, and capital gains tax concerns, investors are increasingly under pressure. For buyers, this creates a unique opportunity to enter the market and potentially secure favorable deals. Let’s dive into the current landscape and why now might be the right time to act.

A Surge in Listings and Price Declines

In 2024, active condo listings in the Greater Toronto Area (GTA) surged by 61.5% compared to last year, reflecting an oversupply as new completions hit the market​(