Real Advice with Rita: COVID-19, Curious couples, and the future of Condos

Is it the right time to buy? What renovations should I do before selling? How can I get the most for my money? Does paint colour really matter? What should I be looking for in a REALTOR®?

Each month I’ll examine the real estate questions keeping you up at night. 

Backed by a network of REALTOR® connections across the country, I promise to offer advice that is always well researched, but never sugar-coated.

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Rita,

My son and his wife are looking to buy their first home in the Greater Toronto Area (GTA) specifically Whitby, Ajax or Oshawa. They’re finding the housing market is out of their reach right now. Due to some of their consumer debt they qualify for a little over $300,000. Can you tell me what’s driving the market there so insanely high? Obviously, this is good for the sellers, but certainly not the buyers. Could it be recommended to wait another year to see if these prices back down a bit? I would hate to see them buy so high and then be under water in a year or two. Can you offer any advice?

– Curious parent

Hi Curious,

You may have heard: we’re experiencing record-breaking activity in real estate markets across the country.

Home sales in the GTA were up again in October year-over-year for the fourth month in a row, according to data reported by the Toronto Regional Real Estate Board (TRREB)’s MLS® System.

The MLS® Home Price Index (HPI) Composite Benchmark was up by 10.8% on a year-over-year basis in October, with the average price (for all home types) sitting at $968,318—up 13.7% from October 2019.

Why?

The short answer: the COVID-19 pandemic.

Will there be relief in the future? Personally, I don’t believe in tarot cards, so I won’t pretend to have an answer. However, TRREB’s CEO, John DiMichele, says “Looking beyond COVID-19, it is clear that the high demand for housing will continue.��

The Canadian Real Estate Association’s Senior Economist Shaun Cathcart agrees, noting, “For anyone waiting for the Canadian existing home market to begin to settle down following this summer’s surprisingly strong recovery, they’re going to have to wait a little longer.”

I recommend following our Market Trends section as we will be monitoring this topic closely over the next few months. Better yet, feel free to drop me a line in the spring and we can see what the market is looking like.

Rita,

The cold weather is here and I’m using my fireplace a lot more. The only problem: I’ve realized how boring my mantel is. How can I spruce it up?

– Firestarter

Dear Starter,

Fireplaces can be a great cozy focal point for a room.

If you’re happy with the fireplace itself and just want to spruce up the mantel there are a number of easy and affordable ways to add some visual interest.

You could add a fresh coat of paint to your current mantel—and you can even paint the surrounding brick. A nice classic shade of white is great because it’s neutral, but modern, and allows you to play with colours in other areas of the room.

If your current mantel is a heavy, dark wood, you could replace it with a repurposed piece of old barn wood for a shabby chic look or find a more modern floating shelf that would fit the area.

Once the mantel is the way you like it, you can start adding decorative items. First, find an anchor piece—your favourite painting or an interesting sculpture.

Mirrors are also a great way to make a statement above a mantel. Mirrors reflect light and brighten up a space, create the illusion of a larger room and come in a variety of frames to fit your style.

After you have your anchor piece you can add layers with stacked books, asymmetrical vases or succulents.

Mantels are also a great place to add seasonal decorations: add a garland for Christmas, fresh flowers in the summer or pumpkins in the fall. These small changes will ensure your mantel feels fresh all year round.

Dear Rita,

My girlfriend and I are sick of living in an apartment, but I’m worried about buying a house as an unmarried couple. What happens to the house if we split up?

– Cautious couple

Hi Cautious,

I’ll assume you two are already living together, so you don’t need to worry about what will happen when you decide to shack up. (You already know she leaves bobby pins and hair ties everywhere).

Buying a home without tying the knot can be complicated, so you’re right to proceed with caution.

You’ve (hopefully) already discussed finances since you’re already splitting living expenses, but if not, having an open discussion on salaries, debt and goals is a good first step. How much will you each contribute to the down payment? How will you split other expenses like the mortgage, bills, home insurance, groceries and repairs?

Living with someone, even if you’re common-law spouses, doesn’t give you the same legal protections as a married couple. Common law legislation can vary from province to province, so make sure you know what the rules are in the province you want to buy a house in.

It’s important for unmarried couples to co-own a property they’re both paying for. This means ensuring both names are listed on the property title. If you’re not married and only one person is listed on the title, then it doesn’t matter what your financial contributions were, you have no right to the home upon separation, according to Toronto-based tax and real estate lawyer Ed Esposto. Any contribution you make to a property (where your name is not on the title) is just seen as rent to the owner.

A cohabitation agreement can help protect both of your interests and ensure assets are fairly divided in the event of a breakup or death. This agreement should also address how expenses will be handled. Consult your REALTOR® and lawyer.

Hi Rita,

It seems like everyone I know wants to move to the country, but I’m still interested in a condo. Am I crazy?

– City slicker

No! There’s a perfect home out there for everyone, yours just might be high up in the sky.

During the pandemic, there’s been an increase of home buyers looking for single-family homes. This shift is due to the need of a home office space or a desire for additional outdoor space, but these things aren’t important to everyone.

When you’re looking for a home there are several things you should consider like how many bedrooms you need or the proximity to important locations (work, school or nightlife, depending on your lifestyle). When you sit down and write out all the things you need and want in your new home, you may find a condo matches your lifestyle better than a house in the suburbs.

There are a lot of pros living in a condo:

• You’re not responsible for most maintenance outside your unit.
• They’re more likely to be in a central location.
• You could have access to amenities like a gym, pool, concierge or security.
• They usually have great views.

Now might also be a good time to get into the condo market. There is less demand and less competition in a lot of downtown markets, however a local REALTOR® can give you a better idea as to what you can expect during your home buying journey.

Do you have a décor or real estate question you need answered? Send it to crea-comms@crea.ca. 

The article above is for information purposes and is not financial or legal advice or a substitute for financial or legal counsel.