June 29, 2015 11

Development

Why Do Builder’s Price New Homes So High?

I mean, most of them eventually reduce the price, right?

Time and time again, we see builders of new homes, primarily those over $2,000,000, price the property far higher than anything resembling fair market value, and reduce over, and over, and over, until the property finally sells.

Why is this?

Why do builders do the complete opposite of what resellers of single-family homes do?

Let’s take a look at the reasons; both those which are logical, and those which make no sense…

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June 26, 2015 20

Business

Could “Circumstances” Cause Your House To Plunge In Value?

For seemingly no reason?

Or for reasons unexplained?

Or for legitimate reasons, that can be explained, but that are based on luck, happenstance, and timing?

In the news this week were three separate houses which have dropped in value because of circumstances beyond the owners’ control, either hypothetically, or quantifiably.  It all depends on whether you ask the owners themselves…

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June 24, 2015 21

Business

Blame The Government For High Real Estate Prices!

Seriously, why not?  It’s actually a pretty good idea.

After all, society seems to blame the government for just about every problem known to man, especially those for which society, via man, are responsible…

When times are tough, people shout, “Why won’t the government do something?”

In the case of high real estate prices, some people are starting to shout…

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June 22, 2015 17

Stories!

A Tale Of Two Closings

I had two deals close last week, and they provided for two very different ends to the real estate journey for two couples.

Both were for single-family houses in the west end, and the houses weren’t actually too far from each other.

But the way the houses were left by the owners, and the way in which my two sets of clients found their new homes, were complete opposites.

You can only do so much to protect yourself from the thoughtlessness of others…

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June 19, 2015 10

Condos

What’s The Going Price For “Luxury?”

We have seen the completion of four so-called “luxury” condominiums in the past few years: Trump Tower, The Four Seasons, Shangri-La, and The Ritz Carlton.

A lot of Torontonians, those both uninformed, and in the know, have grouped these four buildings together as though they were all essentially the same, just because they’re brand-name, and five-star.

In reality, these buildings have completely different values, at least intrinsically, or in the minds of buyers.

Let’s look at all four, both in terms of quantifiable sale prices, and the ever-popular “word on the street.”

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June 17, 2015 32

Development

To Build, or To Buy?

It’s a tough question, and as you might assume, it comes with a myriad of considerations.

What’s the location?  What is the price point?  How long are you looking to remain in the house?

I’m not convinced that there’s money in “flipping” houses in Toronto anymore, unless it’s your primary business, so today I’d like to ignore that realm of possibilities, and instead I’d like discuss the idea of building versus buying as it pertains to a young family who is looking to remain in the house for 20-25 years.

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