Bank of Canada maintains overnight rate

Wednesday April 10, 2024 - OTTAWA The Bank of Canada has maintained its overnight rate target at 5%, with the Bank Rate at 5¼% and the deposit rate at 5%. The Bank expects the global economy to continue growing at a rate of about 3%, with inflation in most advanced economies easing gradually. The US economy has proven stronger than anticipated, buoyed by resilient consumption and robust business and government spending.

One key cause for concern is a housing market that's showing signs of heating up. The benchmark average home price in Canada is down more than 17 per cent from its peak in 2022. But the numbers for December and January indicate the market may have bottomed out and started to rebound.

The Bank has revised its forecast for global GDP growth to 2.7% in 2024 and about 3% in 2025 and 2026. Inflation rates are projected to reach central bank targets in 2025. In Canada, economic growth stalled in the second half of last year and the economy moved into excess supply.

Important Update For Condo Owners

If you currently own a condominium property - especially those who have Tenanted investment properties, these new changes will be of interest. Long overdue, we are finally seeing an up date to the Condominium Act giving Landlords more tools leverage when issues arise.

The Government of Ontario has introduced new changes to the Condominium Act, 1998 related to an expansion of the jurisdiction of the Condominium Authority Tribunal (CAT) – the Province’s virtual tribunal that helps resolve condo-related disputes.

As of January 1st, 2022, the CAT will be granted the authority to handle disputes involving nuisances, annoyances, and disruptions.Specifically, prescribed nuisances under the Condominium Act 1998 will now include “unreasonable” instances of:

• Odour

• Smoke

• Vapour

• Light

• Vibration

Previously, these issues were dealt with through mediation, arbitration, or the courts, leading to costly and time-consuming proceedings. Under the current rules, landlords and condo owners often have to foot the bill for these types of disputes.

The new rules will provide a faster and more cost-effective dispute resolution mechanism for condo owners and their tenants. It is important to note that the expanded jurisdiction of the CAT will not have a direct impact on eviction proceedings, as those issues are still governed by the Landlord and Tenant Board.

Applications for condominium-related disputes can be found on CAT’s online portal and dispute resolution services are offered at a total cost of $200.

OREA will be releasing more information on updates to the CAT’s jurisdiction as they become available. For more information about the CAT, please visit the Condominium Authority of Ontario’s website at: www.condoauthorityontario.ca.

We will post more details as further information is released.

Investment Property "Flips" - It Takes a Team

The discussions about ‘flipping’ an investment property come all the time - with so many people watching the endless number of TV programs showcasing investment properties, it can often seem much easier than it really is.

The reality, is that many of these projects - despite the best intentions and target - get caught up in all those small details, most people don’t even consider beforehand. We see well intentioned Clients who are attempting to be their own ‘project manager’, get hampered by decision-fatigue. The seemingly endless stream of small decisions to be made along the way, and having to constantly battle that balance between what they personally may like, versus what the market may demand.

In all honesty, most people should rely heavily on an experienced project manager / general contractor for the bigger jobs - they remove the personal connection, provide a buffer to trades and suppliers, and can advise and guide based on numerous other projects they’ve completed in the past. It’s hard to provide better resources yourself, than an experienced contractor.

The Team: Architect, Client and Contractor

We were thrilled to be a part of our Clients most recent project - updating and renovating a small bungalow in Markham Village, for the express purpose of maximizing their financial return. Our contribution started with a deep analysis of the market conditions and trends, to then guide the scope and direction of the overall project, to best position the home for later sale.

David Johnston was the key architect on the project, and was able to capture our suggestions and design them into an attainable project. Old Village Construction was the general contractor, and really the driving force behind the project - with Graham Dewar leading the charge to turn our paper wish-list and design, into the gorgeous home we all see today - 12 Gleason Avenue in Markham - a tiny 1 bedroom bungalow, that evolved into a rustic-yet-modern 4 bedroom, 2-storey showcase home.

The take-away from this is simple: If you want to truly maximize the potential of a real estate project, ensure you have fully engaged a proper team. Everyone from your Realtor, to your designer, architect, project manager and contractor all have important contributions to the team!

Want to learn more about the behind-the-scenes of this exciting build? Or just want to talk about a potential project you had in mind? We’re always happy to discuss our thoughts - contact us anytime!