Real Estate Insider: May 2024 - Lalovich Real Estate Skip to Main Content

Real Estate Insider: May 2024

Posted on May 21st 2024 by Lalovich

Welcome back, Real Estate Insiders! This month we’re covering the reality—and dying dream—of homeownership in Canada, a ridiculous new tax proposal for Toronto, why you should know if your landlord is a foreign resident, and so much more! If you haven’t signed up to our newsletters SUBSCRIBE NOW to receive insider updates, tips and advice, the hottest YQG listings, and so much more to keep you informed throughout the month. Let’s dive in!

Detroit: Home Of The Lions, Tigers, And Real Estate Opportunities!

Detroit might be a great spot for real estate investors who are looking for sale prices well below the national average with cash flow potential and tons of upside! 

Affordability Has Eroded In Canada—Is There Hope On The Horizon?

RBC analysts say that it could take years to restore affordability in Canada’s major cities, banking on rate cuts for short term relief.

Read: Buying A House In Canada Has Never Been Harder, Years To Correct: RBC

Generational Luck: The Real Reason For Homeownership

Gen Z caught a bad break. No one could have predicted the housing market bull run that we recently experienced. This has left a lot of first time home buyers—who are making good money—still finding themselves priced out of the housing market. Bought a house prior to 2022? Consider yourself lucky!

Read: Generational Luck in the Housing Market

NAR Settlement Myths That You Should Stop Believing

From remuneration to improved affordability, there are a lot of myths swirling around about the settlement that is doing more harm than good in the real estate sector. Don’t believe everything you hear and do your own research. Reading this article is a good place to start!

Read: Real Estate Pro Says Don’t Believe National Association Of Realtors Settlement Myths

April Showers Bring…A Bigger Tax Bill? Toronto Mayor Wants To Implement A “Rain Tax”

Here’s the latest creative way for them to reach into our wallets. Is the “air tax” next?

Read: KINSELLA: Toronto’s Overlords Pondering Implementation Of A Rain Tax

The Dream Of Homeownership Is Dying, And Canada Needs To Revive it ASAP

Here are 3 ways they can improve supply, but they all must be implemented at the same time, and there’s no time to waste! 

Think Lower Rates Will Improve Affordability? Think Again

The common misconception is that lowering rates has nothing to do with demand, however this article states that couldn’t be further from the truth. Lower rates seem to stimulate demand and thus increase prices, therefore cancelling out any savings that the lower rate would provide. Find out why waiting for rates to drop may be the wrong move.

Read: Lower Rates Do Not Improve Housing Affordability: US Federal Reserve

Blackstone Makes Largest Multifamily Investment To Date In $10B Deal

They made this investment in cash and plan to invest another $400 million in improvements. Read more here!

Read: Blackstone Takes AIR Communities Private in $10B Deal

Who’s Still Buying Houses These Days?

With interest rates having skyrocketed and home prices the highest they’ve been in years, it begs the question of who can still afford to buy these homes? The “5 Ds” of Real Estate may have something to do with it! Read more here about who, when, where, and why people are still buying homes.

Read: Who is Buying a House in this Market?

Sorry Amazon: Brick And Mortar Shopping Isn’t Going Anywhere

Strip mall vacancies are at their lowest since 2003—what’s the reason?

Read: Strip Mall Vacancy Rates Lowest Since 2003

Single-Family Homes For Single Families: The Quest To Ban Hedge Funds From Buying SFH

Democrats have introduced a bill pushing hedge funds and institutional investors to sell their existing stock of single-family homes, while also deterring them from buying any more in the future. Some think this will improve affordability for those looking to buy, while others think it will deter builders from new housing starts if they decrease demand. What do you think?

Read: Inside The Quest To Ban Investors From Single-Family Rentals

Is your Landlord A Foreign Resident? If You Don’t Know, Apparently You Should Ask!

In the midst of a housing crisis, the CRA is making it even harder for tenants to find a suitable home by grilling their landlord about their citizenship, and withholding rent in the event the landlord doesn’t pay their taxes. If you don’t? You’ll be paying the taxes of a home you don’t own! Oh, Canada.

Read: Foreign Landlord Fails To Pay Taxes, CRA Goes After Tenant

Strip Mall Conversions Are On The Rise—Are Office Building Conversions Not Far Behind?

Here are some major success stories about vacant strip malls (aka serviced and empty lots) being converted to much-needed rental units. I think everyone in Windsor is hoping that the old Sears building is next on the list!

Read: America Is Full Of Abandoned Malls. What If We Turned Them Into Housing?

Tax Hike FAQs

Take this accountant’s best advice on how to navigate through the proposed capital gains increase coming (maybe) June 25th. 

Best Cities For Garden Suite Additions: Did Windsor Make The List?

Here is “Suite Additions” list of top eight cities in Ontario for garden suite conversions and mini home developments!