Rent-to-own contracts for major household equipment such as hot water tanks and HVAC systems (furnaces and air conditioners) may seem like a good idea initially. Monthly payments to rent can be affordable and lower than the cost of buying big ticket appliances outright. But beware that rental contracts often make it difficult to sell a house to prospective buyers.

This is because people looking to a buy a house don’t want to take on rental contracts signed by the previous homeowner, and there is an expectation that the sale price of a house includes everything in it – from the fridge and stove to the furnace and hot water tank. Trying to convince potential buyers to take over a rental contract on a furnace or other expensive appliance can prove to be a deal breaker. And paying to get out of a rental contract, many of which run for five years or longer, can be costly.

Doing the math

The most common type of equipment rental in a home is a hot water tank. In many instances, hot water tank rental contracts come with newly built houses. Builders rent the hot water tank during construction and then pass the rental contract onto the homebuyer. In rural areas, some gas companies will not provide propane to a residential house unless the homeowners’ rent a hot water tank from them. But be advised that the cost to rent a hot water tank can be expensive over the long-term. Monthly rental costs are typically $30 to $55. And the length of contracts range from 60 months (five years) to what’s known as the “useful life” of an appliance (between 14 and 18 years).

Do the math and the rental fees add up to a substantial amount. Paying $40 a month to rent a hot water tank, for example, will end up costing you $2,400.00 after five years and a whopping $6,720.00 after 14 years. Consider that to purchase a brand new hot water tank at Home Depot costs between $600.00 and $1,000.00, and it becomes painfully obvious that renting a hot water tank is expensive over the long-term. At a minimum, you’ll likely end up paying more than double the cost of buying a new hot water tank.

Other major household equipment such as furnaces and air conditioners can also be expensive to rent. According to the website FurnacePrices.ca, renting a furnace in Canada typically costs between $50 and $90 per month. And the rental contracts usually run for seven, 10 or 15-year terms. Rent a furnace for $75 a month over 10-years, and you’ll end up paying a total of $9,000.00. That’s nearly double the average price of $4,800.00 that it costs to buy a new, high-efficiency furnace. While monthly air conditioner rentals tend to be lower ($25 per month on average), they too can add up over many years.

Even if you don’t do the math yourself, you can bet that cost-conscious house hunters will be doing the calculations on what it will cost to purchase your house. And extra, often unexpected, bills such as equipment rental fees can be a turnoff. House purchase contracts can stipulate that you, the current owner, must get out of any and all rental agreements prior to the house sale being finalized. This too can be expensive.

Breaking a rental contract

Most rental contracts are ironclad and designed to ensure that the rental company gets their money one way or another. This means that, should you want to get out of a rental contract before the term ends, you will have to pay the balance owing in full. In the case of extremely long contracts (10 years or more); you might have the option of breaking the contract after five or seven years. Be sure to read the fine print. At the very least, you’ll likely have to pay the cost of purchasing the equipment outright.

You should also be aware of tricks that rental companies play with homeowners when it comes to breaking a contract. For example, while your furnace may be three or four years old when you decide to get out of a rental contract, the company renting you the equipment may charge the cost of purchasing a brand new furnace. Rental companies may also fail to deduct the cumulative total of the monthly payments you’ve made on a furnace, hot water tank or air conditioner and instead charge a lump sum that’s over and above the monthly amount you’ve paid to rent the equipment.

Many agreements also require homeowners to use the rental company for annual maintenance of a furnace, hot water tank or air conditioner. Miss a scheduled maintenance appointment, and the rental company could use it as an excuse to not allow you out of a contract, or to charge you additional fees should you break the deal.

Pay close attention, as some of these tricks can violate a rent-to-own agreement. Some Canadian provinces, such as Ontario, have passed legislation to prevent rental companies from engaging in deceptive practices that cost homeowners big bucks in fees and penalties. Under Ontario’s Consumer Protection Act, 2002, unsolicited door-to-door marketing and contracting for water heaters and HVAC equipment is banned. And, as of March 1 this year (2018), suppliers in Ontario are required by law to provide a cover page with contracts for major household equipment that spells out the rental agreement details and penalties involved with breaking a contract.

When in doubt, do your homework and consult a qualified realtor or lawyer concerning a rental contract and the costs involved in getting out of one.

What you can do to protect yourself

The best way to avoid expensive rental contracts for major equipment such as furnaces, hot water tanks and air conditioners is to not agree to them in the first place. Whether you’re purchasing an old or new house, be sure to check and see if it comes with rental agreements. Negotiate to have rental contracts removed as a condition of you buying the house. Even with a new house, talk to the builder and make sure that all the equipment comes fully installed and is included with the purchase price. Don’t let the builder stick you with a rental contract that will become a financial albatross in the long run.

A realtor can help. Licensed realtors are knowledgeable about the building industry as well as the housing market. They understand how equipment rentals and rent-to-own contracts work, and the ways in which they disadvantage homeowners. They also know the tricks that can be played by rental companies and how to avoid losing hundreds or thousands of dollars in unnecessary penalty fees. Remember that a realtor works for you and safeguards your interests when it comes to selling a house. They’re on your side, not the rental companies’ side.

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Articles abound for tourists and residents alike about how to experience Toronto like a local. What many of these miss is that each neighbourhood has it’s own quirks and you really need to venture far off the busy streets to find the hidden gems. Riverdale, and its coffee scene, is no different.

There are undoubtedly many cafes to visit along well-known avenues such as Danforth and Queen East, and many of these spots have also been written up in all sorts of neighbourhood guides for years. But if you’re actually looking for a good place to work, relax, and sip some splendid coffee from independent businesses, you’ll have to look further than merely the Insta-famous hotspots. Riverdale itself is not a coffee mecca, nor has it ever pretended to be. If Riverdale is anything, it’s real. Locals aren’t interested in the newest latte fad or any sort of BlogTO hipster trend that graces any number of visitor guides or fleeting social media explosions. What we want is solid coffee, good, friendly people, and a chilled place to read a book or work on an essay. Of course, it never hurts to have an Instagram-ready aesthetic either!

Chances are that if you’re familiar with the east end, you will have heard of our favourites already. If not, get ready to be let in on a local secret. Picking from the offerings in Riverdale is not exactly an easy thing to do, but the fact that we aren’t over-saturated with identical types of cafes is actually what gives us an edge. While there are some similarities to west end, downtown and uptown cousins, Riverdale’s cafes have something unique that just oozes both the comfortable, laid-back attitude of local residents and the constant aim to give people the best experiences (and coffee!) possible, even east of the Don Valley.

Scattered throughout the neighbourhood are Rooster Coffee House on Broadview, Hailed Coffee on Gerrard, and Riverdale Perk Cafe on Logan. Needless to say, there are even more small shops around but these three really seem to encapsulate exactly what makes Riverdale so unique and so beloved.

Rooster Coffee House

Address: 479 Broadview Ave
Hours: Mon-Sat 7am-7pm, Sun 7am-8pm
Website | Facebook | Instagram

This is possibly the more recognizable name on the list, partly due to it’s more central sister shops on King East and Jarvis. It’s also the only coffee shop with an overlooking view of Riverdale Park, and the downtown core on a clear day. Opened in 2009, the flagship location still boasts a bustling crowd of regulars and visitors alike, and you’ll be lucky to catch a free table in the gorgeous summer patio season because there is no other shop on Broadview Avenue with a view like this. In fact, there are no other cafes on this stretch of Broadview at all which makes Rooster not only a hot commodity for java addicts but a busy meeting place for locals of all kinds: parents with kids, young 20-somethings, grandmothers, business people, and everyone else in between. It’s no surprise that locals flock to Rooster in great numbers. Ample seating inside and out—including a large table for working groups and huge armchairs for those who are staying a while—accommodate everyone easily. And there are plenty of tables to prop up a laptop or newspaper, all in the vintage-meets-class vibe.

With an expansive coffee bar and spread of all sorts of delectable baked goods, everyone at Rooster looks like they genuinely enjoy what they do. The vibe is immediately welcoming and the whole space is energized but without that overwhelming buzz of fakeness that can come with some coffee shop experiences. The staff know their beans, and can make anything you throw at them. So, it’s not just the great location that has led Rooster to success; it’s also the love for the roasting and brewing craft, and the owners’ sincere love for the neighbourhood and its people.

And why wouldn’t they have love for Riverdale? As owner Shawn Andrews says, “Riverdale is our home.” Not only does she and co-owner Dave live just next door, most of the staff is within walking distance as well and it shows.

We all need a soft place to land once in a while and this neighbourhood has embraced that feeling which we have been able to bring forward to our other shops too.

Keeping it close to home, all the fresh, daily-made baked goods and foods are from Toronto chefs and bakers, like partner Village Juicery who provides Rooster with “organic, cold pressed juices and elixirs along with organic plant-based salad boxes to balance out the brownie-stuffed cookie binges!” Whether you’re after something healthy or something to satiate that sweet tooth, Rooster has anything you could want to go accompany a coffee, tea, hot chocolate, or juice.

Most of all however, the focus is the coffee. In partnership with Toronto-based Pilot Coffee Roasters, Andrews is extremely proud of Rooster’s specialty grade beans and the direct trade model—and the alternatives to the usual caffeinated drinks.

We are very proud of the quality of our coffees. We have a unique partnership with Pilot Coffee Roasters which has us going on origin trips to meet the farmers that produce our incredible coffees that create our signature Rooster blends. When you are just coffee’d out and in need of a healthy boost we created our turmeric “latte” using all organic turmeric, ginger, Himalayan sea salt and cracked pepper which you can have with any of our 5 milk alternatives.

And speaking of signature blends, they’re available for take-home purchase as well.

When speaking with Andrews, it’s hard to imagine Rooster beginning anywhere else because everything she holds dear about the cafe is the same stuff that makes Riverdale itself so charming. The idea to treat people with “down-home human kindness” really comes through in the absolute care put into every drink. It’s not just one of many Toronto neighbourhood’s to Rooster’s owners, staff, and patrons.

What Riverdale means to us is a small town in a big city. Where only minutes from the electric energy of the down town core, you’ll find kids playing ball hockey on the streets—”CAR!”—and neighbours sharing a glass of wine across their porches. It’s really a tight and warm community.

Hailed Coffee

Address: 801 Gerrard St E
Hours: Mon-Fri 7:30am-2pm, Sat/Sun 8am-5pm
Website | Facebook | Instagram

The newest coffee shop on our list, Hailed Coffee on Gerrard Street East, may not be the first place you’d think to find a Western and Middle Eastern fusion cafe. But it’s here and it’s the perfect blend of diversity that Riverdale is known for. Just a few doors down from the corner of Logan and Gerrard, Hailed draws on the modernist aesthetic that asks a visitor to focus first and foremost on the coffee. That isn’t to say that it’s a blank slate; the bright and white walls give off a feeling of freshness and are complimented by a local photographer’s exhibit—which currently is Steven Evans eye-catching industrial offerings. This lightness is a necessity in contrast to the sometimes dreary storefronts of Hailed’s neighbouring businesses, effectively making Hailed a bright haven in an otherwise nondescript row of old East Chinatown shops.

And while many may not think of that intersection as a particularly buzz-worthy space to grab a cup of morning joe, it has a constant flow of happy patrons and plenty of seating to accommodate someone looking to do some work or a parent bringing some kids around for a bite. It’s quickly become one of the best and most popular parts of the more westerly strip of Gerrard East with residents.

It’s specifically this dedication to its Arabic roots that puts Hailed one step above many other places in the area. While you can pick up a regular latte or flat white, the flavourful twist of cardamom is what becomes the “must try” of any visit. It’s so important to the cafe, in fact, that many may be surprised to learn that “hailed” translates to “cardamom”!

General Manager Marjorie McCallum is most proud of this aspect of their shop and vision.

That is our specialty, everything cardamom! An ancient pairing in Arabia in the version of Arabic coffee, infusing espresso beverages with our signature Hailed shot is our signature touch. Try “Hailing” your favourite beverage to get a feel for how this ancient pairing translates into a perfectly prepared cup.

It’s one of only a few cafes in Toronto that provides authentic Arabic coffee, as well as a huge selection of pastries and biscuits, many of which employ the ubiquitous flavours of dates, also a staple of the Middle East and perfectly baked to pair with any number of signature drinks at Hailed. These are not imported treats but carefully crafted locally and with attention to the perfect balance and blend of sweet, spice, and savoury. If dates without all the gluten are more your thing, there is a nice range of unique date varieties to sample.

This corner of Riverdale is, according to McCallum (and many others), “a truly unique spot in the city.” Her suggestion to getting the most out of a visit to the east end, and Hailed specifically is to “grab a couple friends, get a dallah (pot) of Arabic coffee, enjoy it with complimentary dates and sit back and enjoy the beautiful Steven Evans art exhibit on display until December!” Hailed is more than a cafe; it’s a rare experience in Toronto overall.

Like everything else in the Riverdale neighbourhood, community is the most important aspect of life here. After hunting for a long time for the perfect locale, Hailed chose the area for many reasons that locals can attest to.

Riverdale is a rich, vibrant community in Toronto that has historical depth and a warm communal feel. We know our customers and their kids. We love to make them their coffee while we catch up on latest news.

This sense of belonging can happen anywhere but it particularly pronounced in diverse, residential neighbourhoods such as this. Locals already know the secret, and the rest of Toronto has yet to fully catch up on how attractive it really is, but Hailed has got in on the ground floor.

That is what our dream cafe is: a warm, welcoming hub in the heart of a loving community and it makes what we do all worthwhile.

Riverdale Perk Cafe

Address: 633 Logan Avenue
Hours: Mon-Sat 7am-6pm, Sun 8am-6pm
Website | Facebook | Instagram

The oldest coffee shop on our list, and possibly one of the first genuine cafes in Riverdale proper, Riverdale Perk Cafe is tucked away on a tree-lined corner of Logan and Withrow, amongst old Toronto homes and just steps from the sprawling Withrow Park. Unless you know where to look, you may miss it altogether because it’s not the sort of place that is known to outsiders. While almost a secret to most of Toronto, it’s incredibly popular with locals, especially nearby residents. So much so that you’re lucky to find a seat at peak lunch times since unlike many coffee shops in the area, it serves up a full menu of soups, sandwiches, hot and cold plates.

Adorned with a cosy yet glamorous sort of ambience, there are sofas, armchairs, tables and chairs to choose from depending on your preference. Outside is an umbrella-lined patio perfect for taking in the occasional passerby or spend an hour dog-watching as the pups make their way to the large dog park just north of the cafe. Or bring your dog along as well! Riverdale loves dogs.

It’s a small shop comparatively, but fits with the overall vibe of being hidden in plain sight—if you know where to look, that is. Staffed in mornings with one highly-attentive barista, often owner and chef Danielle Quayle, it’s exactly what you’d expect to find in the neighbourhood: coffee with personality and a sweets selection, showcased like jewels to water any appetite. For the best selection of local baked goods to choose from, arrive early in the day or you’re likely to be beaten to the delicious punch by those in the know.

Riverdale Perk is truly an example of a “locals only” affair but not out of any sense of snobbery or exclusivity; it’s merely a fact of life when you’re not located on a busy street in Toronto, and it’s something that adds to the warm community feeling. It doesn’t matter if it’s your first or 30th time stepping through the door, you’re welcomed as if you’ve been there forever. There are no bustling, angry caffeine hounds on their impatient hunt but just a quaint, yet classy, sense of having a sit in a friend’s living room. You’ll hear conversations all around, friends sharing stories or the gentle clacking of a laptop as someone plugs away on an email.

It is the sort of place that tourists search for: an authentic experience of a local neighbourhood.*

But that’s sort of the feel of Riverdale overall. Each one of these cafes is expressly unique with experiences widely different from each other yet all are inherently Riverdale—which itself may actually be the definition of the neighbourhood. All sorts of people come together to relax, live, and enjoy life. Whether it’s stopping by for a cappuccino and the vista of Toronto at Rooster, taking a much-needed break to savour ancient flavour combinations at Hailed, or grabbing a bite to eat and a brew at hole-in-the-wall Riverdale Perk, this neighbourhood is all about connection with others, no matter who you are or where you’re from. One of Riverdale’s greatest strengths has always been it’s acceptance of vastly different people and cultures, all coexisting in respect and appreciation of one another.

We know where to go, and we know how to support our own. While a visitor may be tempted to play it safe by visiting always-popular Riverside or Leslieville for a latte, or would rather stick close to the subway line on Danforth, you’d really be missing out on the true experience of one of Toronto’s best and most welcoming neighbourhoods. Give one of these independent cafes off the beaten path a try instead. Chances are good that you’ll be won over by the east side.

* Vivian has approached Danielle from Riverdale Perk with questions about the coffee shop, but hasn’t received any response. We decided to publish the article without quotes after all considering Riverdale Perk is indeed a neighbourhood staple, but we were sorry not to hear back from the coffee shop.

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For over 40 years the Cabbagetown community has celebrated local artists through one of the longest running festivals of its kind in Ontario, The Cabbagetown Arts and Craft Show. Showcasing the work and inspiration of participants for their innovation is a fantastic way to pay tribute to the vast talent within our Toronto art community. The winners of this year’s Richard Silver Award are Pierre Quesnel and Coraline Allard of Q and A Design. The duo works primarily with wood and metal to make their projects both big and small go from vision, to design, to reality.

Most people don’t think of architecture as a stepping stone into the world of art and design. Can you tell me about the path that led you from architecture towards what you do today?

We worked for two years in architectural studios in France after completing our architectural degrees in Normandy. We decided it was time for us to travel and improve our English, so we picked Toronto, and that is where our path moved towards making. We met John, who needed plans at the time for a project making an aluminum riveted traveling trailer. Soon enough, the plans were drafted, and then John needed help building the trailer. Our first attempt was a mess, but John asked us to rethink the process, and we learned to design things to be made. We quickly moved from the computer to the shop, learning how to metalsmith, and constructed the first two prototypes of the Bowlus Road Chief Trailer.

We instantly loved the tight and bidirectional relationship between designing and building. It was great to design knowing you can make and create from scratch what you just designed. Sometimes it needed to evolve, which involved back and forth steps between drawing pads and the workbench. When this project came to an end for us, we wanted to keep on designing and crafting amazing projects, so we started our own design studio.

How do you decide which art shows to participate in and showcase your work? Why did you select the Cabbagetown Arts and Crafts Show?

We participate in few shows compared to other artisans, five to six per year, and all of them are in Ontario. We favour local shows to optimize connections we make during these events. We heard about the Cabbagetown Arts and Crafts Show from Nahid (a fellow artist) while participating in the One of a Kind Show, and she thought it would be a good fit for us. We were accepted to participate and love the vibes of that show.

Tell me about some of the work you’ve showcased at Nuit Blanche and how it compares to other works displayed at events like the One of a Kind Show?

Our participations at Nuit Blanche have been great experiences. We showcased in the Spadina Museum’s garden, in collaboration with LUBO, building small architectures around fire, and creating space for people to meet, gather, and share stories during that night.

It is much different from exhibiting at the One of a Kind Show, where we offer crafted Christmas gifts such as aluminum lunch boxes, or bird feeders. This is the beauty of participating in such different events, we get to show the full spectrum of our work, from crafted wood and metal gifts to architectural sculptured spaces.

Which artists, designers, architects, and people inspire your work most? How?

We developed a great group of artist friends here in Toronto, ranging from gigantic art projections to wood carving masks, which boost our imaginations, and create a great dynamic of inspiration. We also like to look at old scientists’ research (like Leonardo Da Vinci) and adapt them to create a new project.

We have always been interested in small architecture, and especially architecture made with natural materials, creating curves. We came across Ibuku‘s work in Bali, and dream of going there one day. Also, a BIG source of inspiration is Ibuku’s project explanation process – its simplicity with graphic diagrams – they design it for everyone to understand.

What are your favourite places in Toronto to look for ideas and inspiration?

Our friends LUBO and Scott Eunson share a studio on Dupont. They have been there for years and gather bits and pieces from past projects. The energy there is so inspiring. Then we also like to check out what’s new in the retail shops of local designers. Queen Street West is a good neighbourhood for that. When we have gathered ideas, we love to get out of town and disconnect for a few days at a friend’s cabin in the woods. Cooking over a fire and swimming in the river helps us reconnect with nature, our inner self, and develop a new project.

What’s the most challenging thing about working on projects in such varying size and scope? What’s the best thing about tackling projects that are so unique from each other?

Working on such different projects implies different ways of working, different set ups in the studio. When we prepare for craft shows it must be organized and rational, everything is pre-established like a mini-manufacture, and when we work on commission it can go all over the place. Usually it starts with a big space for the computer and drawing space, but it never lasts, materials and tools end up taking up the entire room.

Good thing is: It is never boring! We like this diversity. We learn things from each project and adapt them for the next one.

Your work is primarily in both metal and wood, how do you find a balance both aesthetically and functionally in using these two differing materials?

We’ve always loved wood. It’s warm, soft and so versatile, even flexible! But is has limits.
Metal is quite new for us; we started working with aluminum when we were working on the trailer. We mostly worked with sheets for the shell and interior furniture, and tubing to build the framing. One of the main reasons for using aluminum is that it’s relative lightweight compared to its strength.

Next, we learned how to work with copper sheeting by helping a friend with roofing on a complex porch that had curves all over. After we mastered the technique, we created a commissioned sculptured mailbox for his client. We directly adopted it, as it worked well with cedar. We like to use materials for their best application, and therefore wood and metal complement one another naturally in a way that enhance or improves them both.

What are the biggest lessons you’ve learned since launching Q&A Designs in 2014?

Being an artisan is a complex job, besides always being creative and bringing new products to the table, you must get out of the shop, market your creations, and sell them. We have been lucky to meet people that have helped us to move forward with this, and therefore have learned so much since we started Q&A Design. And it is a challenge that we are happy to take on because it also gives us freedom to create and evolve the way we want / feel.

What has been the biggest inspiration towards creating your work?

I think our European / French culture plays a big part in our inspiration. But what we care most for is to create projects that will last physically and in people’s minds, using authentic and quality materials.

Which projects are you most proud of? Why?

In January 2018 we set up a trade show booth for Aya kitchens in Orlando. We worked with them on this design, creating an eye-catching space with the smallest amount of material possible. We used offcuts from the door department of their manufacturer to build a nest between art and architecture, encapsulating the whole 20’x30′ space. It was a great success; visitors were attracted to it and the company really enjoyed it.

What upcoming projects are you most excited about?

We are working with a developer on a permanent Urban furniture / Art installation to celebrate a neighborhood in the process of revitalization where we associate curves and lines to create a welcoming gathering place. Stay tuned for more. 

What surprises people most about your work?

The fact that we craft objects, that we design, build, and setup a custom tent for our shows is something unique. We make wood and metal gifts, but we also build unique tent structures, and this surprises people. We also get noticed for our attention to detail and precision in everything we make.

What’s the best way for people to find out about your upcoming projects and see your work?

We post our most recent works on Instagram and Facebook. We also have a website that showcases all our finished projects, and an Etsy shop where we list all our crafted gifts. For those who’d rather see things in person, we will be at the One of a Kind Winter Show from November to December.

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Erin Haas is a new addition to our team at Silver Burtnick & Associates. Born and raised in Toronto, Erin is very familiar with the lifestyle and neighbourhoods of our city which allows her to help both local clients as well as potential international buyers. We’ve interviewed Erin about her relationship with Toronto and her decision to pursue a career in real estate. So read on and meet our Erin!

What was it like growing up in Toronto?

Toronto has provided me a lot great opportunities throughout my life, and exposed me to so many people and places that perhaps I would not have experienced elsewhere. I have so many memories in all areas of the city, and have loved growing up in Toronto with the different seasons, opportunities to be in nature and benefits of the city life. With all the outdoor activities during the summers and winters, and large companies that make their home here providing careers for many, the opportunities are endless.

What is your favourite Toronto memory?

One of my favourite Toronto memories is when I used to sit on The Yorkville Rock on Cumberland Ave with my Father on a hot summer day relaxing and catching up. It so refreshing to be in the middle of a bustling city and find a peaceful place to relax and spend some quality time with your family. Toronto has so many places like that, which I love.

The Yorkville Rock at Village Of Yorkville Park, photo by Toronto.ca

What is your favourite spot/neighbourhood in Toronto and why?

I have more than one favourite spot/location in Toronto. But, I have always loved walking around the Annex, looking at all the old Victorian Heritage Properties. I also love going to the Danforth for some delicious Greek food. I recently moved Midtown, and am loving being surrounded by neighbourhoods of families, restaurants, and parks, which is not what I’m used to living downtown. I certainly love every neighbourhood for their own unique reason.

What is your favourite thing about Toronto?

My favourite thing about Toronto is the diversity. I never find myself bored or without anything to do. With the amount of events, festivals, new restaurants opening and places to see, there is always somewhere to go and something to do. I also value the acceptance and pride our city offers. I truly believe that in Toronto, it is becoming easier for everyone to be themselves. Toronto prides itself on equality and acceptance, and that is easily one of my favourite things about my city.

Why did you decide to work in real estate?

I decided to work in Real Estate because it seemed like a natural fit for me. Being born and raised in Toronto has given me an advantage, in that I am very familiar with the city, and I have an educated insight into the lifestyles and cultures, and the true heartbeat of the city. My background is in sales, and I have always had an appreciation and admiration for Architecture and Toronto boasts some of the worlds most beautiful properties in Forest Hill, Rosedale, Bridle Path, just to name a few. If you love Real Estate, then Toronto is a great market to join!

Why did you decide to join Silver Burtnick & Associates?

When I first received my licence, the first thing I did was call all my Realtor friends to get advice on how to choose my brokerage, team or no team, etc. As a new agent, there are many factors to consider when choosing your new brokerage. I was looking to work with a team, as I enjoy working with others, and to find mentors that I could look up to, who will help me grow and train me to be the best agent I can be. The first time I met with Richard, there was an instant connection. With his wealth of knowledge, charming personality, and years of experience, I knew this would be the beginning of my journey with Silver Burtnick & Associates. The team has welcomed me with open arms, and I am so grateful and honoured to be working alongside Richard Silver, Jim Burtnick, Rizwan Malik and Celia Alves, who are all pioneers in the Toronto Real Estate Industry.

How do you see the future of the city? It’s growing, more and more people are coming here to live and work…but housing supply seems to be problem. What do you think is the solution to this?

With the growing population and limited housing inventory, I certainly think it’s going to become increasingly important to make the best use of our space so we can continue to grow. As an example, on June 28, 2018, City Council adopted the Official Plan and Zoning By-law amendments permitting laneway suites in Residential areas in the Toronto and East York District, which will increase the city’s ability to supply the increasing demand for housing in the GTA. I do foresee, that a new generation of condominium owners will be increasing versus freehold home ownership in the future due to increasing prices and lack of supply in the GTA.

What do you think are the current up-and-coming neighbourhoods in Toronto, that will get just more and more popular in the next few years?

With the limited supply and high demand for housing in Toronto, a lot of families and young professionals are moving farther North, East, and West to find affordable housing. New developments are quickly on the rise all over the city to try and meet those demands but some neighbourhoods are still developing and are quickly becoming popular. Riverdale, Upper Beaches, Junction Triangle, Danforth Village, West Don Lands, and Rockcliffe- Smythe, are just a few of Toronto’s up-and-coming neighbourhoods and will become increasingly popular over the next few years.

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Buying or selling a home doesn’t come cheap. There are taxes, lawyer and mortgage fees, and not to mention your realtor’s commission. And some fees consistently catch buyers and sellers off guard.

Richard Silver, Senior Vice President – Sales at Sotheby’s International Realty Canada, finds that land transfer taxes and the Foreign Buyer’s Tax are usually the ones people don’t see coming:

[The closing costs that catches sellers and buyers off guard is usually] the 2% land transfer tax for the Province and [the other 2%] for the City of Toronto. If they are foreign without their permanent residency, they would also be subjected to a 15% Foreign Buyer’s Sales Tax.

A buyer and seller both have their own closing costs to worry about, but this article explains the fees to expect when you sell your home.

It includes:

• Legal fees
• Taxes
• Mortgage penalties
• Survey Costs

Legal fees

While it’s a relatively minor fee compared to the commision, a real estate lawyer can still cost upwards of $1,000 depending on the complexity of the deal. However, the service is well worth it as a lawyer protects you throughout the transaction, makes sure that all the terms in the offer are fulfilled, and that requirements by the buyer and other third parties are met. Silver confirms the service is worth it:

The lawyer makes sure that the buyer has a clear title on closing. Sometimes this is alleviated by title Insurance but [title insurance] cannot replace good due diligence.

In addition to paying for these services, a lawyer charges you for disbursements, which are fees your lawyer had to pay to other companies on your behalf in the process of selling your home. This can include courier services, postages, photocopies, etc… Your lawyer pays these fees on your behalf due to convenience reasons.

Title Insurance

Title insurance is another part of the legal fee. It’s often part of the disbursements, although it’s a little more complex than photocopies and postages. Title is the legal proof that you provide to the buyer and to third parties to show that you currently own the property being sold. The title shows any registered mortgages, liens, and other important details.

Title insurance, on the other hand, protects you from any errors or misrepresentations on the title that could impact you negatively. The coverage usually costs a few hundred dollars but can save you thousands and protect you from fraud, survey errors, encroachment issues, and much more. And this is usually purchased by your lawyer.

If you discover that your last renovation encroached onto your neighbour’s property because of a survey error, title insurance would pay to rectify this issue.

Prepaid fees

Lastly, a lawyer prepares a statement of adjustments to show any fees that you paid in advance that the buyer would have to pay you back for upon closing. These prepaid fees can include tax or utilities, and the final adjustment statement includes these into the closing price.

If you paid for the full year’s land tax in January and the sale of your home closes at the end of March, the buyer has to compensate you for the April-December portions of the land tax—or ¾ of what you paid.

Taxes

Land transfer tax is a common term you may hear in real estate transactions, but it’s not something to concern yourself with if you’re doing the selling. Land transfer tax is usually never paid by the seller and is usually paid by the buyer.

If you’re selling an investment property, however, you need to consider capital gains tax. If the property isn’t your primary property, it’s considered an income or investment property. When you sell, you’re taxed on the appreciation (how much you bought it for – how much you sold it for). 50% of the appreciation value is taxed as income, and this can also push you into a higher tax bracket for the year.

For example, if you make $100,000 annually and sell your investment property with a capital gain of $50,000 (maybe you bought a condo for $700,000 and sold it for $750,000), then your annual taxable income for that year is now $125,000 ($100,000 + (50% of $50,000)) Suddenly, your income tax for the year goes from $27,860 to $33,286.

Mortgage prepayment/breakup penalty fees

If you have a mortgage, selling your home may result in a mortgage prepayment/breakup penalty or a porting charge. This depends on the contract you signed with your lender when you first got the mortgage.

Mortgage prepayment/breakup penalties occur when you pay off your mortgage in advance of the payment schedule and leave the mortgage contract. When selling your home, this is typically done because a new mortgage at current interest rates can save you more money than the cost of the penalty. Every bank is different, but Canada’s Big Five typically charge a prepayment fee of three month’s interests or the interest rate differential—the difference between current interest rates and the interest rate on your mortgage—whichever one is greater.

Calculating the exact penalty can be complicated, but to give you a taste, if you have $400,000 remaining on your mortgage, the penalty can be over $8,000! If you don’t want to pay the penalty or want to keep your current mortgage rates then porting your mortgage is the better solution.

Porting is moving your mortgage contract from the property that you’re selling to your newly purchased property. The fee associated with porting is usually a lot less than a prepayment/breakup penalty.

Porting may not always be possible, however. Some mortgage contracts don’t have this option, or if you’re upsizing, your mortgage broker may need to confirm that you have the income and debt-equity ratio to maintain a bigger mortgage. It’s best to understand the terms and conditions when you first get your mortgage, so you’re not stuck with more unnecessary fees when you sell.

Survey Fees

Surveying is not done as often as it should be, but is highly important to the real estate transaction. A survey is done by a professional who examines the deed and maps of a property to identify what the seller actually owns. By completing a survey before the sale, the parties can buy/sell with the confidence of what is being bought/sold.

Although issues due to land surveys are usually covered by title insurance, title insurance cannot replace a land survey. This $750-$1,000 expense can save you the stress of your deal falling through after the buyer realizes that there are issues with land ownership.

So how do you know if you should get a new survey? Silver advises,

A new survey is always warranted if the building has been added to and/or if fences were moved or removed since the last survey.

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Real estate prices in Toronto are fickle and month-to-month prices for homes can go from double-digit declines to positive growths in a matter of 30 days. So, in a market such as this, how should you price your home? What factors affect the price? And what are the different pricing strategies that can help you sell your home quickly and for top dollar?

Pricing factors

You should learn what determines the price of a home before learning how to price it. There are a plethora of factors, ranging from bathroom renovations to nearby schools, that affect price, and some factors are valued more than others. When asked what features of a home affect its price the most, Richard Silver, Senior Vice President of Sales at Sotheby’s Canada, says,

Location is tops and then any updates and renovations of course. Then there’s also comparable sales.

The location is affected by other factors such as the nearby schools, the proximity to employment and amenities, and the overall community. Standardized tests like the EQAO or Ontario elementary/secondary school rankings such as the one by Fraser Institute is how many homebuyers assess local schools. Depending on a school’s test scores and rankings, it can either improve or reduce the value of the homes in the area.

Proximity to employment and amenities, such as public transit and highways, is another factor affecting a home’s location. No one likes long commutes, so either living close to or living in an area that provides easy access to where people work can make a location worth that much more.

A second important factor to price is renovations and maintenance. Though it may be obvious, newly renovated homes sell for more money—however, some buyers prefer a fixer-upper that they can renovate themselves. Bathroom and kitchen renovations are known to get the most bang-for-your-buck when it comes to increasing home value.

Lastly, the square footage of the home, the size of the lot, the number of rooms, and the existence of a garage are a few, but not the only, other price factors. The value of all these items ultimately depends on market demand in the area.

How to find your price

Comparisons to homes in the area and evaluations done by a real estate agent or a home appraiser are the most common way to start working on the price. Of the three methods, looking for similar houses or comparables/comps is the most simple for the average seller to do. It involves finding houses in the neighbourhood that have a similar square footage and a similar recency in terms of renovations. Ideally, you want your comp to be on the market, but recently sold listings work too. Walking into an open house in your area can provide a better idea of the comp’s similarity to your property and whether you want to list it for more or less than the comp. Your real estate agent can also provide you with a comparative market analysis that shows all the homes recently sold in your area within a certain price range.

If you don’t want to find a price yourself, having a real estate agent or an appraiser can help. To assess your property’s price, real estate agents also use comps as well as leverage their colleagues. Having a team of real estate agents with years of experience with the homes in the area can provide a more accurate price. An agent also has more experience evaluating prices through comps than the average seller, so their estimations tend to be more accurate. A step up from a realtor estimate is hiring an appraiser who provides a more detailed look at your home’s features. An appraiser usually costs $300-$400, but this cost can be worth it when you’re selling a $1 million property and the difference between a proper estimate and an improper estimate can cost you thousands of dollars.

Overall, Silver’s best tip is,

In today’s market one must look at the asking price on comparable properties and at what the end price was, especially if the sale was over-asking. A lot of sellers price [the home] at the end price and forget that it is the asking price that helped achieve that end price.

If you overprice, you won’t even reach most of the buyers

Pricing strategies

On most occasions, sellers follow one of three strategies: underpricing, overpricing, and pricing at market value.

Underpricing

Underpricing is knowingly listing your home at a value that’s lower than its market value with the intention of getting top dollar through a bidding war. This method is highly popular and sometimes brings great results; however, you can also end up with only a few bids and take a loss on the sale. Many in the real estate industry, from sellers to sales representatives, are highly against this tactic. Intentional underpricing lures individuals who can’t afford the property into thinking that they can. This ultimately leads to disappointment for many home hunters when the sale goes for a significant amount over asking price. The underpricing strategy can get a seller well over 15 bids, but realistically, only 3 of the 15 buyers can actually afford it.

Silver chimes in on his thoughts on underpricing:

If you intentionally underprice and don’t achieve the price you are hoping for, then you are caught between a rock and a hard place. You should always ask, ‘Can I live with the price I am asking?’ If not, you need to amend the price higher.

According to Richard, there really aren’t any situations where you should underprice:

Listing under market by too much is dangerous unless you are prepared to accept that price and majorly underpricing says that you are trying to manipulate the marketplace

Overpricing

There are a variety of strategies that involve listing a house for more than its market value, and it can also be the sign of an overly ambitious seller. There are many risks involved with overpricing, as potential buyers may be afraid to offend the seller by offering less than the listing price. This may lead to no bids which result in a stale listing that has no interest.

If you overprice, you do yourself an injustice as it will take longer to sell and you may get a lower price. You create a situation where there is no sense of urgency to offer and the property hangs on the market. That is not a big issue in a up-moving market but when the tables turn, you are left hanging.

Not to mention, if you overprice your home, you’re losing potential buyers, because they won’t even see your property when browsing.

Pricing at market value

As mentioned prior, you need to do your research and/or hire a real estate agent/appraiser to find a proper market value for your home. This requires looking at the current market, the surrounding areas, and the home’s features and qualities. Selling at market value is the strategy to use in most situations, as it gives potential buyers a realistic expectation for the capital they’ll need for a winning bid and reduces the likelihood of a stale listing.

But you might be thinking, what if I could get more than market value? Why not increase the price?

Richard says:

I always suggest to list close to the market and allow a week of showings before you entertain offers. It is important to know that no stone was left unturned and the price is acceptable.

In the end, it all comes down to doing research before deciding on the price:

The market sets the price. If you underprice or are right on you should sell quickly. If you overprice, you will stay on the market and there is a loss of value in the eyes of a buyer.

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