Three Best Toronto Neighbourhoods to Buy a New Condo

There are many reasons why someone should not buy a new condo. For starters, it takes an average of 3.85 years for a typical Toronto condo to move from the initial sales stage to occupation. As we all know, a lot can change in that time - romance, babies, breakups, job relocations, or it could be as simple as you bought yourself a St. Bernard in a building that only allows small dogs. Also, at this particular moment in time, in this city, you can often buy a resale condo at a better price per square foot than a new condo. On top of that, the average Toronto unit is shrunk by 65 square feet in the last four years. So, why buy new?

Well, it's not always a rational decision, and, to be fair, there are some pretty amazing projects under way in this city where SOME of the newer condos can clearly outshine the condos that have been around for a few years or more. In other words, the smart new condos have witnessed how some of the old ones have failed and attempted to improve where others screwed up.

Of course, not all new condos are worth considering, but some are pretty impressive. So, with that said, here are three Toronto neighbourhoods I think would be the best place to buy a new condo right now.

1. Corktown. This River City project where several condos went up all at once was planned perfectly. There is a good mix of midrise condos here so you don't feel like the extreme height of the buildings have blocked most of your daylight. You're still centrally located south of King Street East just west of the Don River. So, it's easy to get around. Best of all, the design behind this place was not a hodge podge of different developers squeezing every last spec of greenspace out of a neighbourhood. Not here. There are parks and promenades and some pretty great new community businesses starting to move in. The best part? Well, you have one of the best green spaces in the city called the Corktown Common. Believe or not, Waterfront Toronto can do something well besides not make decisions. In my recent walk throught the Corktown Common, I was amazed at how well the park was designed. It is overflowing with local plants and wildlife with extended boardwalks throughout. The large marsh also has a practical function as part of the stormwater management system. But it's also a place to play - playgrounds, splashpads, an athletic field and open lawn for informal gatherings. I think this area will be a little undervalued at first. You are investing in a vision, but this one has been well planned, and I think it's a great place to live or invest.

2. High Park North/ West Bend/ The Junction One thing about this area north of Bloor from Dundas to Runnymede, is the amazing collection of historic homes. Not only does it have great infrastructure with the city's largest park nearby, but this neigbhourhood entails an exploding commerical strip that is becoming a new centre for the hip restaurants and cool shops, right along Dundas West in the Junction. There's not a lot of room for condos in this area, but that's why you should consider buying here. When it comes time to sell in the future, your competition with other condos will be limited. It also has a lot of warehouse and church conversions, which I believe is a great buy in any neighbourhood, but especially this one. If you want everything new, there is a great opportunity here to buy right across the street from High Park, where there will never be a building placed in front of you to block your view of miles of green space and well-maintained parkland right down to the lake. If you can care less about the view, then know that it will be gold when it comes to resale down the road. Daniels, the developers, have been waiting a long time to get their hands on this land, but the High Park Condos are on their way! Also, I would suggest the very cool "Duke" condos, just east of Keele on Dundas. This part of the the West Bend/Junction strip is a little under-appreciated, but the design on this place is fantastic and this midrise fits in perfectly with the neighbourhood.

3. Yonge Street South of Bloor If the condo market ever goes down, I often say, it would be best to own something unique and boutique that does not look like every other condo. Alternatively, if you like to be high in the sky, you want to be near the TTC. And by TTC, I don't mean a pokey street car or a smelly bus, but a subway that can actually get you around this city quickly, like the Yonge Subway Line. If you like the views from the bigger condos, the Toronto city by-laws will now allow developers to build higher than ever before on places like Yonge Street. Further south on this main street, you have condos coming up like Yonge and Rich, sure it's a terrible name, but wow, they could sure use some condos with decks down there, which these condos offer. Then there's Aura. Though I don't always think big is the way to go, I think Aura confidently tells us to go big or go home. And at 78 stories, it contains the highest living spaces in Canada, at the corner of Gerrard and Yonge, an area that really needed an infusion of wow. And when you have a perfect walk score of 100, you can practically walk any where, get rid of your car, and rent out your precious parking for lots of money.

If any of these projects tweak your interest at a time where you would like to buy a new condo unit for yourself or for investment, it would not be wise to go marching into the sales centre and buy a unit. Use a real estate salesperson so you have someone working in your corner, and not working for the builder's best interest. If you want to save on new condos, get in early. Though it's always more of gamble to go in early without the sales centre set up, I think you can score some good deals here during the VIP days. Alternatively, wait until the building is registered when a lot of buyers, who have bought years ago, will all be trying to sell at once. At that point, prices can be temporarily be pushed down when there's a flood of new units on the market from the same building. So, if you want to buy new, do it right, and do it in the right neighbourhoods!

Home Ownership in Canada: Some Surprising Stats

I think most Canadians can admit that we are a little home ownership crazy. People like to talk about out-of-control bidding wars and neighbouring properties that never sell like they do about Miley Cyrus on the MTV video awards. Not quite as titilating, maybe, but certainly more impactful to our lives.

But just how does Canada stack up with the rest of the world? Well, it's pretty high up there. Of the 196 countries in the world, Canada is ranked 16th, slightly ahead of the U.S. and slightly behind the U.K. As of 2006, 68% of Canadians own their homes. Some believe that number may have cracked 70% since then.

Many believe that North Americans love home ownership more than Europeans because they have a history of land ownership that dates back centuries. Immigrants once came to the Canada and the U.S. where they were offered land for practically nothing, and if they were lucky a free mule was thrown in. In Europe, land ownership was often geared around the upper class. Peasants would rent from the gentry. As you can imagine, this model does not hold up as well nowadays.

Today, home ownership has a lot to do with the policies of the government, of a particular nation and the culture of that country. In Europe, for example, Germans are super keen on renting. They are a bit more cautious by nature, and the federal government does not make purchasing easy. Taxes are much higher in Germany and a buyer requires a 20% down payment. In addition, the increase in property values across Germany has not increased a great deal in value over the past 10 years compared to other European countries. That is why places like Berlin have a 90% rental rate. Financially, it may be easier to just rent. The UK is quite different. Despite their drop in property values since the recession, the value of their properties have doubled in the past ten years. And when Brits can't afford to buy in expensive cities like London, they go to Croatia and Spain and other parts of the EU to hunt for properties. They see a good return on their investment and they want to own property, even if it's a big commute on a plane or train.

Canada may be slightly lower than the UK, but we prefer home ownership as well. Since 1971, home ownership rates in Canada have plateaued for a short time, then rose steadily.

Some argue that home ownership rates may be peaking now in Canada. The government is making it tougher for first time buyers to qualify. Prices in cities like Vancouver and Toronto are making it costlier for people to get into home ownership, even thought the cost of renting has increased substantially as well. That is why home ownership rates have declined among the lowest income earners in Canda in the last ten years.

In Canada, home ownership also has a lot to do with whether you have children. Even single parents have a higher rate of home ownership than couples with no children. Of course young families with kids are most likely to be owners. The biggest change in Canada, though, has been the fivefold jump in home ownership with unattached youths. From 1971 to 2006 the rate of home ownership jumped from 13% to 60%.

At the end of the day, the question usually becomes: Is home ownership worth it? Well, if you live in Germany, maybe not, but if you live in Canada or the UK in the past 10 years, it's definitely worth it, or at least nearly 70% of all Canadians think so.

REAL ESTATE INVESTORS: GOOD OR EVIL?

 People are afraid of the unknown. Some times there are good reasons.  Perhaps aliens are visiting earth and would like to use us humans as their food supply. Other times, there was really nothing to fear at all, like the concern of  Christopher Columbus about steering his ship off the edge of the earth.

When it comes to real estate, the big unknown for Canadians has to do with how many real estate investors there are out there. These investors, from Canada and abroad, are buying properties for investment purposes and do not plan to live in their purchased properties. They either wish to hold them and rent them out, or they are hoping they can flip them and sell them for more money down the road.

What's the unknown to be afraid of here?  Well, as far as Canada goes, there is no official record of how many investors have bought into the real estate market, particularly in the condo market of big cities like Toronto or Vancouver. Some estimate that up to 50-60% of all units now being built are for investors.

 Why be worried? Some fear investor have artificially pushed up the demand for housing, particularly with condos. If the market should suddenly fall, then some believe investors will attempt to get rid of their property as a way of minimizing their loses.  For some, it will not be cost-effective to keep a condo that's tanking in value.  Those owners who live in the place they have purchased are more likley to ride out the rough times since they need to live in the place they have bought. So, they are far more likely to hold on to their properties. If many investors leave at the same time, the housing market is flooded with oversupply and prices plummet and no one's happy, except those poor first-time buyers who have been waiting for a break for over a decade.

Think Florida, a place where vacation rentals and tourism are a key part of the economy. There's a place that has a definite high number of investors.  And low and behold, it was one one of three states that has the worst price drops during the American recession and housing crash. Luckily, they are on their way back up.

In many ways, it sound like a horrifying recipe for disaster. But investors can be good too!  What many of those worried about the numbers of investors in the market don't realize is that investors are currently very essential to the rental market. In many cities, such as Toronto, there are very few new projects that are built for renters. Builders can simply make more money if they sell condos. Regardless, those in need of rental accommodations continues to rise. For those who are not ready to buy or even never intend to buy, the rental market is tight. Strangely, as prices go up and the banks make it more difficult for buyers, particularly first-time buyers, to get financing, there are more rental units required. In growing cities with migration and immigration, there is even a bigger need for rental units.

In many ways, these real estate investors are the solution to what could have been a rental crisis in many cities across Canada.

In Toronto, rental condominiums are currently outpacing resale prices.  And this has two key ramifications. First, investors are not necessarily keen on flipping their property and would prefer to rent out their units.  And second, the rental market stays more balanced. Even with all the investors providing the rental accommodations, rental demand is still up 4.1% from last year to a record $2.35 per square foot, according to the research firm Urbanation.

In fact, currently with the increase in rental units coming to market, the vacancy rate is still low in most Canadian cities. The average Canadian vacancy rate is 2.7%, but many of the larger cities have lower rates including: Calgary and Edmonton, both at 1.2%, St John's Newfoundland at 1.5%, Toronto at 1.6% and Vancouver at 1.8%.

Of course, we all know in real estate that things can change quickly. Currently, though, it seems that the investors are not attempting to flip their properties as much. Instead they are deciding a more conservative approach by holding their units for a longer term, and having their mortgage paid off or partially paid off by the rent they generate. Some of this may have been brought on by the recent decision of Revenue Canada to come down like a hammer on those who are flipping their properties to make sure they pay their capital gains and income tax. Financially speaking, it may be wiser for the investors to hold out.

Any way you slice it, investors are  here to stay, and there will be more to come, though there numbers may be dwindling as foreign investors move on to cheaper destinations in the United States. Regardless, there will be more new condo units coming to market in Canada, but builders have really begin to ease back on their builds, reducing the supply, and hopefully steering away from an oversupply situation. But real estate is not a science. There will always be a fear, real or imagined.

Termites: Where You May Not Expect To Find Them

If they were not such a threat to my clients and their homes, I believe I would respect the mighty termite. They are industrious workers that never stop, focusing on their munching task a full 24 hour each day. And though they are not native to anywhere in Canada, except a small portion of southern British Columbia, they have settled into every province across Canada hitching a ride on shipping cargos from the all over the United States. They are pioneering. They work as a team. And in the right light, they are kinda cute. Well, maybe not conventionally cute, but I've seen uglier insects!

Unfortunately, we humans and termites cannot be such good friends. According to Pest Control Canada, termites cause more damage to our property than tornadoes, hail storms, windstorms and hurricanes combined. They're have been recorded reports of termites in Ontario since the 1920s, and in Toronto since the 1930s. Though they have traditionally favoured the neighbourhoods near the ports where the termites and their families first arrived, they can  now be found all over the GTA. 

But how were they able to expand so much in Canada? Well, for starters, they are tough to see and move around without us humans even knowing. They are silent nibblers. They are hidden behind your walls and under your house. If you don't know what you are looking for, ideally with a qualified home inspector, you may never know how at home they are in your house. 

Termites are unassuming insects. They are less brazen than the mosquito and not nearly as dramatic as the cockroach.  And since they want your home and not you or your food supply, they stay out of your way and often go undetected. 

There are a lot of misunderstandings about termites. I think the biggest myth arises from the advice that many contractors and termite specialists give to homeowners. They often suggest homeowners remove all wood-to-soil contact to prevent the termites from coming into your home/condo.  It's not bad advice. Termites love wood. Unfortunately, removing any wood-to-soil contact functions more as a deterrent for termites, but it is no guarantee they won't get in.  You may have no wood-to-soil contact with your home, yet the termites may still drop in. 

Don't believe me? Well, let me tell you about a recent experience I had.  Not too long ago I took on a beautiful listing in an established neighbourhood that is known for having termites. The thing is, this home was less than five years old, and it had a concrete foundation with absolutely no wood-to-soil contact. Nothing beside concrete was in contact with the soil.  My seller and I were fairly confident that this home was termite-free, but thought it wise to check for them with an inspector.  And as it turns out, they were making their way into the home, moving up the concrete in some of the typical fine cracks that develop when the house settles.

Lucky for us, they did not move more that a foot into the house and the property was not damaged or compromised. Termites are the turtles of the insect world. They are VERY slow moving. It will take  several years  for them to do any real damage to homes. Since this house was fairly new, the termites could not really travel very far. It was something we disclosed to any potential buyers, and we had the property treated to remove the termites from the house. 

I asked the termite inspector why termites are appearing in new homes, and he told me this: Before the city of Toronto amalgamated, the old city of Toronto made it mandatory for all new builders to treat a site for termites wherever they built new. Once the amalgamation took place, I was told this policy was removed. Builders were no longer expected to treat for termites in the new almagamated Toronto. So, when a site that previously had termites has been knocked down, then the termites may be waiting in the ground, and can easily travel into a new property, even with concrete foundation. 

So, now that I have scared you that termites can show up in properties where you might not expect them to be, let me give you the good news. If you have termites, you don't necessarily have to freak out.  Many homes have had termites, that have subsequently been treated, and are now fine. It all depends how long you have had the termites and how much damage they have caused. The presence of the insects themselves is treatable. You can get rid of them, but you may need to have an update treatment every year. Another piece of good news:   There is a new treatment coming in Canada next year that is even better than the current one. Both of them will get rid of the termites. The current treatment deters termites from staying or coming into your home, but requires update treatments each year. The new treatment will kill the termites in and near your home, and future treatments will not be necessary.

Ultimately, the thing to remember:  If you are buying or selling a home, it may be wise to have a termite inspector go through your house to see if you have any signs of termites.  At the very least, you may want to contact the local pest control company to see if they have treated anywhere near where you plan to buy or sell, though this is no guarantee.  

 In most cases, I find, if the termites are caught early, you are fine. Because they don't bother us directly like say, the pesky bed bug, we are not inclined to hunt them down. However, if you want to be sure your home is not a buffet for a colony of termites, you may want to have a specialist in to have a have a look. 

When an Emerging Neighbourhood Takes Flight

Emerging neighbourhoods can vary widely. They often start out as dismal and down-on-their-luck areas that MAY turn around, but they can also be the neighbourhood that was once down-on-its-luck and has since transformed into one of the most vibrant and successful neighbourhoods in Toronto.

I have helped clients buy and sell properties in both types of emerging neighbourhoods. I become excited when I see a neighbourhood transformed from a lackluster, underpriced outpost to a location where buyers are clamouring to buy property or open a business that has creative flair and imagination.

Sometimes an emerging neighbourhood comes about slowly but when the whole area has gathered enough momentum there can be a sudden swift surge of change. The locals, especially those who have become involved with their neighbourhood, watch in wonderment at how rapidly their neighbourhood is transforming.

In 2013, I believe the neighbourhoods of West Bend and the Junction are experiencing that pivotal surging moment. These adjacent neighbourhoods, which have always had high quality housing stock, were at a lower price point for decades compared to most other neighbourhoods in downtown Toronto. The main commercial street, Dundas Street West, once struggled to attract and retain businesses. (With a few exceptions like the longstanding and outstanding Vesuvio's Pizzeria). It certainly did not have the draw to attract people in large numbers despite its impressive architecture. However, in the early 2000’s, change slowly began. The long established "Dry" bylaw, prohibiting the sale of alcohol, was removed in a plebiscite and very soon, restaurants, organic food supermarkets, design/furniture stores and health-related businesses began to open up. For those new business owners, it was an inexpensive place to open up. And it was this lower price point that allowed newer businesses to experiment and try out new ideas.

For many, there was a belief that the Junction and West Bend did not have the density or the easy transit access to allow for a vibrant exciting commercial strip. Many speculated that these areas would not draw crowds in the manner of Trinity Bellwoods or Leslieville with their easy access to downtown via the Queen streetcar. However, 2013 has put those fears to rest. Not only has the number of new businesses exploded in the Junction and West Bend, but the community in both neighbourhoods has come together to create a Farmer's Market, a Flea Market and now proposes to turn an old police station into a community hub.

In the last year alone, this part of Toronto has seen the arrival of the wildly successful Cantina and Indie Ale House. In the last 6 months, we have seen a surge in the number of new business arrivals. We have seen "Coming Soon" signage for a wine bar, an Italian restaurant on Annette, and a cheese store offering gourmet grilled cheese. We have seen the opening of Gerhard Supply, a men's clothing store where Canadians designers make all the clothes from Canadian sourced material. And though there are many, many coffee shops to choose from, we now have yet another delicious option at Full Stop. For meat lovers, there is the new Gourmeats. East of Keele, a strip of Dundas West that can be a little more challenging to entice new business, there is Foodbenders, offering catering and take-out options for those in search of a healthy alternative. Should you find you have overeaten at all these new tasty options, you can head out to the new RPM: Total Fitness for spin class or strength training.

This neighbourhood is now chock a block with options that most neighbourhoods would die for. On top of what I have already mentioned, there are bars, patios, Thai, Indian, Cajun food, a vegan bakery, a regular bakery, clothing stores, chocolate stores, lawn bowling, ice cream, yoga, pet grooming stores, a doggie supply store, a TV production company, pies and more. To be honest, I am not sure if the Junction and West Bend neighbourhoods are missing anything.

This is what you want an emerging neighbourhood to become.

First time buyers often ask me “what neighbourhoods will emerge next? Where can we buy in the hope that prices will appreciate more than other neighbourhoods in the city”. However, the question should really be “What will an emerging neighbourhood look and feel like if it fully emerges?” Then I could simply drive prospective buyers through West Bend and the Junction to illustrate how a neighbourhood can change. And later, when that person is ready to sell, he or she can make a great return on their investment.

What Toronto Neighbourhoods Can Learn from the Rust Belt

The other day someone asked me if I would invest in Detroit real estate. Hmmmm.... Let me think for a moment...Ah, no. But not everyone thinks like me. There are many Canadian investors who are buying up Detroit real estate at bargain prices in the hopes that Windor's American Cousin across the river will come back after free falling for half of a century. Hopefully, with this town's declaration of bankruptcy, the big "reset" button has been pressed, and it works this time.

In a way, Toronto has changed in the exact opposite way of Detroit. In 1950, Detroit topped 1.8 million in its population, where Toronto was just over 1.1million. That was the year that the Detroit population peaked. It's metro area is now a mere 700,000 today where Toronto has reached over 2.6 million (over 6 million if you count the GTA).  It's a remarkable turnaround for both cities. 

In some ways, they share a common history. Both are, historically speaking, "rust belt cities" that prospered when manufacturing contributed much more to the wealth of the U.S. and Canada. Still, each city could not rely so heavily on manufacturing to carry the city into the future. And like many cities at the time, both Toronto and Detroit have seen some flight to the suburbs in the 70s as well, though Detroit would suffer much more from it. 

Rust belt cities have been largely unsuccessful with the slow down of manufacturing sector in the American economy. Some have gone into a long decline - Cleveland, Detroit, Baltimore, Buffalo, and a few have rebounded like Pittsburg and Chicago. Aside from Toronto, that is currently at is highest population to date, American rust belt cities have suffered a decline in population, even in successful cities like Pittsburg and Chicago.  Some argue that Canada  faired better because its population did not have a Sun Belt to draw them away.  Others will say that the Toronto area has managed to diversity its economy better and keep its manufacturing base strong. 

In many ways, neigbhourhoods in Toronto function like a rustbelt city. Some are rebounding winners and some are in decline no matter what you do. Around the 1960s and 70s, many Toronto neighbourhoods began to go into decline as many moved to the more properous and, at the time, more attractive living in the suburbs. And after some decline, some city neighbourhoods emerged at a future date when the residents can find a way out of their decline. 

Let's take the Beach neighbourhood for example. In the early part of the 1900s, the Beaches of Toronto were all the rage. You can access the beach easily and there was a great advantage to being near one.  There was no air conditioning back then. So, on those hot summer days, people would head to the beach in droves. No one went to the cottage to swim - it would take much longer to get to Muskoka back then. Then of course, the highways improved and air conditioning arrived, and the beaches of Toronto went the way of the steam powered trains and powdered wigs. But not long after, the hippies and artists started to buy up the housing near the beach, the city realized that the beach was a good thing, and then the turnaround began. Now, the beach is insanely busy in the summer and one of Toronto's top established neighbourhoods. 

In Parkdale, we see another Toronto neighbourhood that went into decline due, in part,  to the end of the beach. At one time, Parkdale was for the wealthy set, with stylish city mansions and detailed Victorian architecture. A walk to the popular Sunnyside Beach was easy, but then along came the Gardiner to cut off access to te beach (on top of air conditioning, the flight to the suburbs and eas access cottage country) and Sunnyside Beach's glory days were done. Parkdale went into a deep decline, Detroit style. And still, Parkdale was able to turn it around to the point where many in Parkdale would like to stop the turnaround from happening so quickly. Those huge stately homes that were once a steal, are now not as cheap as they once were, despite Parkdale's gritty feel. 

Now, I don't want to give the impression that every part of Toronto is going to rebound into an emerging neighbourhood. Many parts of the city, further from the core will decline in the future due to poor urban planning and other urban woes. 

Some neighbourhoods are still undecided. Take Weston, for example. This area has been called "the rustbelt of Toronto".  It is like a little Cleveland or Detroit or Pittsburg right in the city. Like those rustbelt cities, the Weston neighbourhood was once largely a manufacturing area. It was a close-knit, working class neighbourhood with its own Santa Clause parade (which it still has), but then the factories where many of the locals were employed shut down, unemployment shot up and the decline began.  When the area's number one employer, the kodak factory, closed, that was the end of the areas manufacturing legacy. 

Unlike the rest belt cities, Weston has the advantage of having the city of Toronto behind it. Metrolinx will open up a GO station in Weston, creating easy access to downtown. Since Weston used to be a separate town, it has great architecture in its housing stock at a reasonable price.  The city as a whole, has seen the affordability of houses decrease for the average Torontonian. And with the increase in population and the lack of low-rise houses being built in the city, there may be buyers heading to Weston to cash in on the cheaper home prices.

Weston has a long way to go though. The commercial strip is still pretty dismal, and some of the nearby high-rise rentals seem pretty rough around the edges. Still, crime here is decreasing, and the early buds of an emerging neighbourhood are appearing. Let's hope Weston functions more like a Pittsburg or Chicago that can successfully rise from it's industrial past and create some thing more diversified with a strong community, instead of a rustbelt city that can't seem to stop their decline. 

Buying A New Condo or House? Take Heed...

Often in my blogs, I express that I'm not a big fan of new builds. It's not that new condos or houses are not exciting. They can be. I get very excited about certain condo or townhouse developments in the works.

From a purely financial perspective, however, at this particular moment in time,  resale prices on a condo or home tend to be better priced than new builds, even with some of the incentives that are coming out. Nonetheless, you can't blame people for liking new things like a new pair of shoes or a new toothbrush.  So why not a new home? I can certainly see why buyers can get excited about certain projects.

Regardless of your desire for new, the real shocker is not that a new build may be priced higher, but that many buyers buy their units directly from a developer. They march up to the sales centre and just pick a condo and  buy it.

I'm not really sure why this happens. I'm assuming that some buyers feel they don't really need a real estate agent or that perhaps it will cost more if they use one.  Neither one of these things are true. In fact, acting without an real estate salesperson can lead to spending more money than you need to.

If you buy a new build on your own, you are essentially using the salesperson who is representing the developer, and since  his or her boss is the developer, there's a good chance they are not entirely in your corner. The developer's salesperson will be looking to sell units for the developer, not for you.

If you had someone there representing you, you are more likely to find out about the hidden costs. Most buyers who do not use an agent will miss these. Real estate agents (and lawyers) can spot and negotiate some of these and may be able to put a cap on some of these charges.

If you buy from the builder, they may not give you the preferred lot. Their sales people will likely be trained to give you the least favourable location first so they can more easily sell the choice ones after you. You need to ask for the premium lots.

The developer's salespeople will also try to chat about upgrades. What most people don't know: Upgrades are what will bring the builder the most profits. So, when offering upgraded finishes, the prices are often inflated. Some real estate agents can tell which upgrades will bring them additional value or return on investment and which ones will not.

Unlike resale properties that use a standard Agreement of Purchase and Sale form, many of the new builds use a form from the developers that their lawyers have help them put together. It is not a standardized form. I would make sure to run this builder's form by your own lawyer before signing any papers. The forms can vary widely, particularly with fees, but also government taxes, levies, connection fee and extra costs for such things as a recreation centre.

And lastly, let's talk about the builder's measurements. The builder's plans  are pretty generous. I know this first hand because I often hire a professional to measure a unit or home I'm selling for resale, and almost every time, the measurements are less than the floor plans of the developer. The developer's floor plans are usually taken from the outside wall, while most buyers who may live in this property want to know the measurements  from the inside wall. So builder's tend to be generous with their floor plans. But keep in mind a clause can be added that a unit must be within 2% of the measurements or a rebate can be had by the buyer.

Even if you, for whatever reason, do not want to use a real estate salesperson, you should visit the Tarion site to make sure the builder is registered with Tarion. New homes under Tarion Warranty will protect you for a given period of time on all of the new items. So, if your fridge breaks down the day your arrive, then they should be able to replace it. Some things have shorter warranties than others, but they are either 1 year warranties for things such as Ontario building code violations, 2 year warranties for such things as water penetration in the basement, and 7 years for such things as cracks or distortions in the foundation walls.

The Tarion site will also provide you with a list of builders who did not comply with the Warranty Program. You do not want to end up with a new place with a builder that has a lousy track record. Also on the Tarion site, you can find what other developments were done by the same builder. If you are serious about a property, go knock on some doors from buyers who have previously bought from the same buyer in a different project. Ask the owner of that condo or townhouse what they think of the devleopers and what sort of problems ( if any), they had along the way.

All in all,  for those of you who buy directly from a builder, you are not doing yourself a favour by skipping the real estate salesperson. The developer will not charge you any less for not using one. In fact, you may end up spending more on hidden costs, on overpriced upgrades, and a potential buyer who does not  have the reputation to follow through on their Tarion duties.