Burlington Real Estate Development

Why don’t we include developers vested in the downtown in the City’s ongoing “engagement” process on Grow Bold?  Why not bring developers to the table?

Why are we afraid to ask the private sector, experts in development, to participate openly in the process?

Why not bring developers together in a room (initially away from the public – away from the anger, hostility and venom) and ask for their “help” in dealing with the public fears on:

1. The loss of sunlight;
2. Increase in vehicular congestion;
3. Loss of green and liveable space;
4. Ensuring safe pedestrian flow and places of gathering;
5. Promotion of downtown businesses;
6. Ensuring sufficient parking for residents and visitors; and,
7. Any other big issue item….

Developers are not afraid of criticism.  They deal with it all the time.  And, they can be a powerful team to help with resident issues if we ask them.

Why not ask them to sign onto a Memorandum of Understanding to come up with a coordinated design away from the fear of public scrutiny and criticism, at least in the initial stages of brainstorming and design.

Challenge them to put together a coordinated plan or design, and more than one plan or design, which addresses the public concerns and ensures an integrated approach to responsible development rather than the “one-offs” we are currently getting with individual development applications.

Put their coordinated plan or design(s) before the citizen engagement forums.  At least the residents would have something tangible to review and comment on.

Developers will listen, and even though they may not like the resident feedback, the hope is that their engagement gives them an incentive to incorporate good design ideas into their individual development applications.

What do we have to lose?

I told you it was a crazy idea…..

Karmel Sakran, Ask a Real Estate Lawyer »

Real Estate Bubble?

I believe it is everyone’s right to have a safe and affordable home to raise a family.  The reality in today’s economy is quite the opposite.  I see people making desperate decisions to buy a home out of their price range for fear that they won’t be able to afford anything similar if they wait.  They are maximizing their credit cards, borrowing more from parents and cutting back on certain activities for their children just to make ends meet.

I had recently quoted Benjamin Tal, Chief Economist with CIBC World Markets, who spoke of a generation that is going to “inherit inequality”.  I won’t even attempt to explore the depth of the subject, but suffice it to say that there is a growing demand for rental units.  Just yesterday, I had a client that is selling her home because she can’t afford to live in it.  Yes, she intends to bank the little amount of equity she will get out of selling her home and rent.  I see this trend more and more.

The implication of what Tal was saying is that if you are not a homeowner now that you may not likely be a homeowner in the near future given the trend of skyrocketing home prices.  And, today’s Globe and Mail article about Ontario pushing Ottawa for some form of tax on speculative buyers or increasing the capital gains tax is a sign that governments recognize the seriousness of the problem.

Just think, you have people buying properties based on speculation of profiting, low inventory of homes on the market and first-time home buyers trying to get into the market.  How does a first-time home buyer compete with an investor with very few homes for sale?

Don’t get me wrong.  I don’t criticize investors.  After all, they have children for whom they want to provide a home and ensure a financial nest egg for themselves.  I get it.  But, if average people can’t afford to buy their own home and must turn to renting, that will put a corresponding strain on all levels of government, primarily provincial and municipal, to provide affordable housing.  It is a storm brewing like no other.

Ironically, I know that builders are in tune with this growing demand for rental housing units and have already started building a mix of condominiums and rental apartments.  The only issue is that market pricing remains an issue because demand is growing for good rental units.

My question is whether all levels of government can create a unified strategy in concert with builders whereby builders have the right incentives to build affordable rental units for growing families?  A grand idea perhaps, but if it works, would this not be a more cost-effective alternative to managing government deficits and pressure to keep increasing tax revenues?  Just saying……

Buying a home? Talk to a Real Estate Lawyer »

Burlington, Hamilton, Milton, Mississauga, Guelph

Real Estate and Homeownership in the GTA

Benjamin Tal, Deputy Chief Economist with CIBC World Markets, made a spectacular presentation to kick off the Landpro conference today at the Paramount Centre in Vaughn.

Tal spoke about the economy and real estate outlook for the GTA.

Tal started with Trump’s election and ended with the rise of housing prices, the trend towards a reduction in the number of CMHC insured properties and the need for “purpose built” developments (aka the need for more rental units).

Taking liberty with Tal’s insightful analysis, he believes Trump will only last 1 term as President because his expressed and demonstrated approach to creating more “jobs” (his mantra) is inconsistent with the economic realities occurring in the USA and the world.  He called Trump “inflationary” and predicted that Trump will fail in creating more jobs and trade.

Tal pointed out that the manufacturing sector in the US is outperforming Canada which should be the exact opposite given our much lower dollar.  But overall, manufacturing jobs have been falling long before China entered the WTO.

The number of American workers receiving disability benefits in 2016 outnumbered the number of production workers.  Government tax cuts reduce revenue which increases government borrowing.

Canada’s share of low paying jobs is rising.  And although there is an availability of good jobs, Tal said employers can’t find workers with the right skill sets to perform those jobs.

Canadian manufacturing is near full capacity and needs investment to lift exports.

From 2015 to 2025, there will be approximately $800 billion in the transference of wealth in the form of inheritances which Tal labelled as “inheriting inequality”.   This is tied to an individual’s ability to buy homes at their current prices and future prices.

The Bank of Canada’s real motive in keeping interest rates low is to support our weak dollar and not necessarily to promote private homeownership.

Rising home prices in Toronto are forcing people to look further and further away from City centre to find homes within their price range.  Although low-interest rates continue to promote new homeownership, the high cost of homes coupled with the new federal mortgage rules constricting the number of CMHC insured homes, Tal predicts will create an increased demand for rental units.

Sorry, Tal if I butchered your fantastic presentation – it was refreshing and insightful.

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Burlington, Hamilton, Milton, Mississauga, Guelph