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Condo News
25 Feb 2019
In a hurricane even turkeys can soar
A few years ago, I started tracking the selling prices for units in
troubled condo corporations in the GTA. These buildings suffered from
serious political infighting, neglected maintenance and most had
obvious major building defects. Three of them went into court-appointed
administration.
The prices were as low as $40-50,000 (power of sales) for two-bedroom
apartments. These buildings, at least the ones that were not in
administration, were on their last legs, or so I thought.
In the GTA, over the last four years, units in well-run condos
appreciated by up to 200%. I figured that the troubled condos would appreciate far less than that. I was wrong.
I just finished comparing the latest
selling prices at these condos to the selling prices from four years
ago. The results were so surprising that I checked the pricing for 13 distressed condo corporations to verify what I was seeing.
The prices of these troubled condos increased from a low of 174% to a high of 486%. These are astonishing increases.
What is more interesting is the change in their monthly maintenance
expenses. Although they were all have a desperate need for more money,
two condos lowered their fees, four "enjoyed" zero fee increases, and
three condos raised their fees at levels lower than the
rate of inflation.
Only three condos raised their fees more than the inflation rate.
|
Increase in selling price
|
Increase in fees
|
1.
|
232%
|
-18%
|
2.
|
256%
|
-4%
|
3.
|
200%
|
0%
|
4.
|
400%
|
0%
|
5.
|
329%
|
0%
|
6.
|
486%
|
0%
|
7.
|
253%
|
4%
|
8.
|
257%
|
4%
|
9.
|
286%
|
6%
|
10.
|
174%
|
13%
|
11.
|
254%
|
19%
|
12.
|
250%
|
30%
|
13.
|
300%
|
50%
|
Why the high price increases?
There are two reasons.
The prices of free-hold houses in the Toronto area rose so high that
they have become unaffordable for most purchasers. People who would
love a detached house have been forced to lower their expectations.
As a result, the prices of quality condos doubled in the last five years. They too have became unaffordable.
Buyers who can only afford $400,000 or less and want a two-bedroom unit have
to buy a unit in these detoriated corporations. The
troubled condos jumped up in price because their sales increased.
The second reason is that many investors look for bargains. They will
buy a cheap condo unit if it is close to a university or community
college. They can rent out individual rooms to students.
From a recent MLS listing. Note that it is near Humber College.
The low purchasing prices makes it possible to make a profit off the rents—if they overcrowd the
unit—and on top of that, they will also enjoy far higher profits from capital gains.
So high condo prices helped the lowest levels of the market far more than it helped the highest. Who would have ever guessed?
So if my condo president brags about what a great job he did in almost
doubling our selling prices, I will tell him that if he was really
great, our prices would have gone up 400%.
top
Condo News
22 Feb 2019
Are St. James Town highrises an early warning for city's aging apartment buildings?
Toronto's highrises are home to half a million people and the state of
these buildings — the bulk of which were built in the 1950s to late
1970s — is under scrutiny after high-profile problems have left
thousands scrambling to find somewhere to stay.
This week, the City of Toronto ordered the water, heat and power shut
off at 280 Wellesley St. E. so the apartment building could be
thoroughly inspected. The shutdown lasted more than 48 hours.
"We will go in and do an evaluation of that building based upon 20
different areas and we look at cleanliness, elevator functionality,
cleanliness in the hallways, the lobbies, the doors to the exterior, if
intercom systems are all functional and working and if the grounds are
maintained," he said.
Often superficial problems, such as a lack of cleanliness, could mean
bigger problems with the electrical system or safety infrastructure, he
said.
"When we identify a building that fails its evaluation and is not in
fact being maintained, then we will do what we call a complete audit of
that building," he said.
A dirty building is something the
inspectors look for. In many condos, it is surprising how few condo
residents realize that their common areas are dirty.
The only other thing I can add is
don't forget the older condo towers. Many of them have been kicking
major repairs down the road for decades now.
—CondoMadness
https://bit.ly/2I2KS4m
Toronto condo owners asked for their dog’s DNA to solve poop problem
Property managers have long struggled with tracking down irresponsible
pet owners. To curb the problem, some are turning to companies that
catalog dog DNA and use stinky samples to identify delinquent dog
owners.
What is a prankster brings in random dog poop from the local park? A lot of DNA costs with no results.
—CondoMadness
https://tgam.ca/2SVHfl1
Police search for gunman after shooting leaves 2 in life-threatening condition
As more and more people live in condos, all of the city's troubles moves in with them.
This shooting incident happened in a condo that is just south of Yorkdale Mall.
https://bit.ly/2E6Eeor
Montrealer using Smart car to plow snow in Saint-Henri
Montrealer Frank Espina has come up with a unique and clever solution
to clear snow at his condo building in Saint-Henri — attach a plow to a
Smart car.
https://bit.ly/2ScFcEG
Calgary condo owners, facing millions in repair bills, find out their builder isn't who they thought it was
Don't ever buy a pre-built condos.
Remarks from readers
Renee Edison
Our condo in Sage Hill is going through this exact same situation!
Except our condos are only 4 years old, and our assessments are at
least $35,000 each! Passed city inspections and everything, then was
found to have safety violations and deficiencies...
Marcin Majczak
We know! The most important Factors in Canadian Construction are Envelope and Structure.
Disaster become when quality of these factors are bridged!
If "live quality" take a place and concerned your attention? Ask a
Brian Fitzgibbon
As a former condo owner and condo board director I have a word of
advice. NEVER EVER buy a condo in Canada. Condos pay the same taxes as
other residential properties but do not receive the same services by
the city. Condo fees go up and up to cover the services not received by
the city in addition to building up a reserve fund for future owners.
Special assessments for unexpected maintenance not covered by the
reserve fund are made to your detriment. In addition condo boards look
after their own needs first. Condo boards often hire lawyers to
litigate problems. Lawyers charge $300. an hour for phone calls. You do
the math. It doesn't take long to spend everyone's monthly condo fee.
https://bit.ly/2GzkOfl
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Condo News
17 February 2019
Residents of condo tower where woman threw chair off balcony say short-term rentals are not a problem
Over
the years, the behaviour of short-term renters has raised concerns in
Toronto, but most residents at Maple Leafs Square Condo were
indifferent or expressed mild concern over it.
On Thursday, the Star spent four hours at the condo’s
lobby and two main entrances, speaking to residents and observing as
individuals and small groups of people entered and exited, some with
their suitcases. About a dozen people, including a couple who said they
had just landed from Paris, said they were staying in Airbnb units.
Dozens of residents who spoke to the Star said they know a large number
of units in their building are used as Airbnb. But they said disturbing
incidents are rare and most people staying in Airbnb rentals are
generally polite.
“Honestly, it doesn’t bother me,” said Stella Cabrera, who has lived at
the building for nearly a year. Two units next to hers are used by
short-term renters. She said she understands the convenience of Airbnb
in the area, which lies near entertainment venues. Hotels are expensive
there.
Ivonne Flores, a recent graduate and a resident of Maple Leafs Square
for the past two years, sometimes feels “uncomfortable” seeing
strangers strolling in the building, which happens especially on
weekends. Apart from the drinking and partying that tend to happen in
Airbnb rentals, major incidents of concern are few, she said.
“That chair thing was the first, and it was surprising that everyone was making such a big deal about it,” she said.
The property manager said: “Right now, we’re working very hard with the police on this, and trying to keep our profile as low as possible, as you can imagine.”
I am not surprised to hear condo
owners saying short-term rentals are not a problem. Condo owners worry
about property values (for many it is the only thing they worry about)
so it is natural for them to deny there are problems.
A second issue is that most residents
don't know what is going on in the building. The management and board
of directors hide as much negative information as they can: from the
residents and the public.
If you want to know the truth, talk
to the renters—the ones who don't have a financial stake in the
building. Even better, talk to a disillusioned director who know what
is going on or to the security guards.
Hanging around a condo lobby for four hours doesn't sound like much investigative journalism to me.
—CondoMadness
https://bit.ly/2SZjwjC
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Condo News
15 February 2019
Early condo living
That was then
Condo owners call on city to rein in Airbnb
CBC News
18 August 2016 (abridged)
Tensions are rising in the corridors of Toronto's condo buildings as
some owners look to cash in by listing their units on short-term rental
sites like Airbnb, while others are calling on the city to step in and
stop them.
"We constantly get complaints," said Linda Pinizzotto, who is president
of her downtown condo board and the head of the Toronto-based Condo
Owners Association.
Pinizzotto says the constant come-and-go of Airbnb guests is turning her building into a de-facto hotel.
"They knock on a resident's door asking if they can borrow salt, they
complain because they can't find coffee machines," she said.
"It's unbelievable."
It's a bomb that's going to explode down the road if we continue to allow this type of thing without proper legislation.
—Linda Pinizzotto , President, Condo Owners Association
Increased traffic from short-term rentals is also leading to higher
utility bills and greater wear-and-tear on common areas, according to
Pinizzotto.
"These buildings were not made to be hotels, they were made to be
primary residences," she said. "The value of these buildings will
decrease if the maintenance fees go up too high."
"It's a bomb that's going to explode down the road if we continue to allow this type of thing without proper legislation."
Advocacy group wants regulations
But it's the bad experiences that are driving owners like Pinizzotto to
push for municipal regulations, such as the law that prevents owners
from renting their properties for periods of less than 30 days in New
York City.
The COA is a member of Fairbnb, which describes itself as "a national
coalition concerned about the proliferation of short-term rentals in
cities across Canada." It also has links with the Union for Hospitality
Workers in the GTA.
This is now
Now Linda is an Airbnb Superhost.
So if you are looking to short-term rent a downtown condo unit, perhaps you would like to get in touch with her or Derrick.
https://bit.ly/2SUtR0j
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Condo News
14 February 2019
Police seek public's help in ID'ing woman in video that shows her tossing chair off condo balcony
Police are asking for the public's help in identifying a young woman
who threw a chair and other items from an upper floor of a downtown
Toronto condo building.
A video posted on the weekend on Facebook with the caption "good
morning" shows the woman taking a peek over the balcony, and then
throwing a folding chair onto the Gardiner Expressway and Lakeshore
Boulevard below.
https://bit.ly/2SGWhL5
The woman who is believed to have been filmed this weekend throwing
chairs off the balcony of a high-in-the-sky Toronto condo unit has
turned herself in, according to police.
https://bit.ly/2Gpsgd9
Are St. James Town highrises an early warning for city's aging apartment buildings?
Toronto's highrises are home to half a million people and the state of
these buildings — the bulk of which were built in the 1950s to late
1970s — is under scrutiny after high-profile problems have left
thousands scrambling to find somewhere to stay.
Not enough scrutiny I would argue. I keep expecting building
evacuations in a number of older condos in the GTA. They are coming but
none have been condemned so far. Why? Not yet a priority for municipal
building inspectors.
https://bit.ly/2I2KS4m
Woman in life-threatening condition after Etobicoke shooting
A woman is fighting for her life in hospital after a shooting in Etobicoke early Sunday, Toronto police say.
Emergency crews were called to the area of Lake Shore Boulevard West
and Park Lawn Road in the Humber Bay area at 6:50 a.m. Police had
received several calls about the sound of gunfire.
https://bit.ly/2GAx92j
How Airbnb is squeezing Toronto’s housing market
Three years ago, she and her husband Kevin and their four-year-old
daughter called a four-storey townhouse in downtown Toronto’s
Cabbagetown neighbourhood “home.” During that time, Brezina (pictured
above with her family) said someone bought up a number of homes around
her and began listing them all on Airbnb and another service called
FlipKey rentals—with her family sandwiched between them. She recalls
her residential street being overrun by temporary guests––more often
than not, “people from the 905 coming into town to party” along with
“charter buses [pictured below] pulling up and emptying everyone” onto
neighbouring properties.
https://bit.ly/2BttsrQ
Condo manager warned of sagging balcony months before collapse
OTTAWA: "With the cold weather upon us, snow cannot be far behind,"
Fitzgerald wrote. "I worry that the weight of the snow could cause the
above balcony to collapse onto ours. Can you please let me know when
the job will be completed?"
https://bit.ly/2E401hH
Goleta hotel worker behind bars after police find drug lab inside Marriott boiler room
A 37-year-old maintenance worker is in custody this week after
authorities said he set up a secret drug lab inside a hotel where he
worked in Goleta, Calif.
Employees at the Courtyard by Marriott on Storke Road called police
shortly after 9 a.m. Tuesday when they discovered suspicious chemicals
in the hotel’s boiler room, according to the Santa Barbara County
Sheriff’s Office.
Does the manager or the directors conduct regular inspections of all
your condo's maintenance roooms? You too may find a surprise.
https://lat.ms/2I4KvGe
Phoenix HOA manager imprisoned for taking $1.3M from homeowners associations, officials say
Harlow White, 77, of Gilbert, was sentenced Friday to 15 months in
prison for stealing the money, which was used, in part, to cover
approximately $300,000 in personal charges on his American Express
credit card, officials said.
White was the president and CEO of Eagle Property Management, Inc. The
company was later called EPMI when ownership transferred to White's
daughter.
"Between January 2010 and May 2014, EPMI — with White’s knowledge stole
at least $1.2 million directly from HOA clients’ bank accounts," the
release said.
https://bit.ly/2Bt9kWT
'We've reached a crisis point': Experts decry Canberra building industry
The overwhelming majority of high-rise apartment buildings in Canberra
are likely to have major defects, industry experts have estimated, with
one warning the territory's construction industry has reached "crisis
point".
Experts in engineering, waterproofing and strata law have told The
Canberra Times that structural and design flaws would, in their
estimations, exist in most new high-rise developments in the nation's
capital, ranging from minor to more significant.
https://bit.ly/2SlMbjE
'Extreme lengths to avoid detection': Illegal rooming house operators becoming more sophisticated
Melbourne City Council has revealed the difficulties its officers face
in attempting to tackle illegal rooming practices, as operators use
more sophisticated methods to avoid detection.
"Sometimes, what you'll find is shift workers rotating on the same bed,
one will sleep there at night and one will come home from work and
sleep there early in the morning when the other one leaves.
"If you have 10 beds in an apartment where people are doing that then
you can just imagine how many people are coming in and out of there,"
Mr Raff said.
https://bit.ly/2TFzigT
'Uninhabitable': Geocon settles lawsuit over alleged defective home
Another very good reason not to buy a pre-construction condo unit.
https://bit.ly/2GlblrY
Concrete cancer and informing all owners
Concrete cancer (deteriorating concrete) is classed as a building
defect and therefore needs to be disclosed to insurers as part of the
owners corporations Duty of Disclosure. Failure to notify an insurer of
a pre-existing defect such as concrete cancer may mean that in certain
circumstances the Insurer is entitled to avoid the contract altogether
or the Insurer may be entitled to reduce liability in respect of a
claim to the amount that would place the insurer in a position in which
the insurer would have been if the failure had not occurred or the
misrepresentation had not been made.
https://bit.ly/2UTTKKY
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Condo News
10 February 2019
Residents sick of condo neighbours vomiting, tossing bottles, bones, cigarette butts onto balconies
Toronto: Kalisperas says some residents with units overlooking the
Graphic Arts roof started throwing their cigarette butts and garbage
over their balconies. "We're worried. This building is partly wood.
It's combustible," he said.
https://bit.ly/2HSpe2n
Condo balconies collapse in Ottawa, city investigating
The city of Ottawa is investigating after a trio of condo balconies
collapsed Monday morning in a “pancake effect,” officials said.
https://bit.ly/2SCT2Em
Tips for owners requisitioning meetings
Requisition meetings can be a source of anxiety for many directors,
managers, and owners. In my experience, the conduct of the parties
during the preliminary steps of the requisition process can exacerbate
the anxiety and cause a great deal tension, hostility, and bickering at
the meeting.
https://bit.ly/2SbcPva
Is this condo rule legal?
Owners can also propose a rule
While the most common method for a rule to come to be is after having
been voted in and circulated by the board, it is to be noted that
owners can requisition a meeting to vote on a rule of their own (or to
vote to amend or repeal a rule) even if it does not emanate from the
board. Such a requisition must be supported by at least 15% of
the registered owners. Assuming quorum is reached, the rule
proposed by owners will be adopted if a majority of the owners
participating to such a meeting does not defeat it.
https://bit.ly/2SctHlr
Safety compliance for condo corporations
The general duty clause therefore requires all employers, whether they
are condos, property managers, property management companies,
contractors or service providers to the condominium industry to “take
every precaution reasonable in the circumstances” using the Act and
Regulations, along with precautions to address each working
circumstance.
https://bit.ly/2RuoZdo
Government recommendations don't apply to short-term rentals
BC: There are no plans or indications by government to limit or change
a strata corporation’s ability to prohibit short-term rentals as
short-term rentals have been a significant cause for loss of rental
units in strata buildings.
https://bit.ly/2SmWNhm
Simpsonville man's dispute with HOA may lead to jail time
A homeowner in Simpsonville is facing potential jail time after
haggling with his homeowners association about a shed on his property
and related court fees for nearly two years.
Negligent security case costs association and management company significant money
Recently, a Florida condo board was sued by an owner who was stabbed
twelve times by another resident. The board of directors claimed to be
unaware that a tenant in the community was harassing and stalking
women. The board further claimed that the manager failed to share that
vital information with them.
https://bit.ly/2Gz0fzd
Burst radiator heating pipe leads to extensive property damage
On Friday January 6, 2018, I sent an email to management about not
enough heat in unit 205. Prior to informing management, we learned that
many other units also reported receiving insufficient heat. In any
event, management dismissed our concern, saying the building’s heat is
running at full capacity without any problems. Less than 48 hours after
I sent the email to management, the radiator pipe in unit 701 burst.
https://bit.ly/2SbCJiB
Government warned design flaw left Canberra apartments at risk of fire
The ACT government was warned in 2013 of a "very disturbing" design and
construction practice apparent in at least six Canberra apartment
buildings, including the Elara complex, which posed a potentially
significant risk to residents' safety, The Canberra Times can reveal.
https://bit.ly/2D5xdUb
Shifting services costs and secret profits – Owners getting shafted
New South Wales—It has become increasingly common for developers to
pursue a development in such a way that owners corporations and lot
owners are locked in to using various service providers or paying what
amount to deferred development costs.
https://bit.ly/2SasPhh
Arson suspected in Paris apartment building fire leaving at least 10 dead
The firefighter and his girlfriend told officers they were leaving to
go sleep elsewhere in peace and warned them that the neighbour had lost
her mind and one day there would be an accident because of her,
according to a police report seen by The Associated Press.
https://bit.ly/2D9DqyH
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Condo News
04 February 2019
Time to file your 2019 CAO condo returns
Ontario: Deadline is Sunday 31 March 2019.
https://bit.ly/2Wslyrw
Toronto city budget process
Staff also recommended a 10-cent TTC fare increase, a 2.2 per cent
increase for garbage collection and a 3 per cent water rate increase.
Let the CAT out of the bag
An excellent article on Ontario's Condominium Authority Tribunal and why it is time to expand the types of disputes it can hear.
https://bit.ly/2MGKU0v
Canadian household borrowing rates resume rise
Canadian households face higher borrowing costs, despite the lack of
policy rate hike. Bank of Canada numbers show the weekly effective
interest rate for households reached an almost 10 year high. The
increase comes after the effective rate had stalled for six weeks.
https://bit.ly/2RjgBO5
Cheap entry into the landlord business
This older condo townhouse, up in northern Etobicoke, sold for $334,500. For that price, it appears that the new owner can:
1. Move in & rent the basement.
2. Move in & rent the basement & a bedroom.
3. Move in and rent FIVE bedrooms to students.
There is definitely a profit that can be had here. It helps that the
other condo owners are willing to subsidize this "private business".
Condo burglar arrested after crashing in snowbank
WIinnipeg— Thieves broke into a condominium complex on Creek Bend Road,
breaking into several vehicles in the parkade and stealing one, using a
spare key that had been left in the car.
https://bit.ly/2MJJvWS
Treasurer should be reviewing strata (condo) transactions
Sounds so obvious but a lot of condo treasurers don't do much.
https://bit.ly/2Rq3UB6
The doorbells have eyes: The privacy battle brewing over home security cameras
Condo residents may find that security cameras in their units are a very good idea. Break-ins are on the increase.
https://wapo.st/2D6RgS7
Residents upset over piles of trash in their condo complex
Florida— Trash that hasn't been picked up has local condo residents disgusted.
https://bit.ly/2Tl31LQ
HOA, condo & co-op corruption and fraud roundup (Jan 2019)
Condo corruption and fraud is an ongoing problem. It will never end.
https://bit.ly/2G5WUI7
Can we avoid strata (condo) manager insurance commissions?
Another article about Australian condo managers getting commissions on
building insurance policies. Three points here: 1. they have to
disclose the fact that they are getting the commissions & 2. what
is the incentive to hunt for lower rates? Finally, what are the
practices here in Canada?
https://bit.ly/2CRm1dY
China's fastest subway train to run in September
TCC subway plans got to back to the drawing board. Scarborough gotta
get some of these driver-less 160km an hour babies. Why settle for 2nd
best?
https://bit.ly/2BbQMu6
Boy puts lit fireworks down manhole cover, blows up sidewalk
Watch the video right to the end. Sewer gas is dangerous.
https://bit.ly/2CXifzG
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