Can housing affordability be restored? Is it just a matter of a few interest rate cuts and transit-oriented development? Reducing housing costs involves more than simply tweaking interest rates — it calls for a multifaceted approach that reflects the complexity of the problem. 

Lowering housing costs depends on several critical factors: the impact of government policies on the cost of homeownership, the necessity for community-focused strategies in new developments, the crucial role of collaborations between government and the private sector in enhancing quality of life indicators like housing accessibility and the embracing of proptech (property technology) advancements and data-driven decision making in real estate. 

Government participation in strengthening Canadian communities 

Developers want to create vibrant communities across Canada and support the needs of a growing national population. This is particularly relevant in Canada’s key metropolitan regions — Vancouver, Montreal and Toronto — as they receive the bulk of newcomers in the country.

By collaborating with developers to lower development and construction costs, municipalities and regional districts in British Columbia can significantly boost the financial viability of projects for developers. This strategy can open the door to new opportunities for building vibrant communities outside metropolitan areas where land is more readily available, while also stimulating growth in urban neighbourhoods that have seen limited changes.

The difficulty in managing costs can be seen in Vancouver’s 15-month delay in obtaining permits, which can substantially increase developers’ costs. This not only raises interest on project financing as funds remain idle but it also allows inflation to drive up material and labour costs. Additionally, this extended waiting period often leads to resource misallocation, potentially resulting in penalties for rescheduling construction crews and equipment. These disruptions can have a ripple effect, impacting broader financial plans and cash flow management.

Government policy is another crucial ingredient, as zoning regulations, building codes and taxation can significantly influence the availability and cost of housing. Policymakers must work closely with industry stakeholders to foster an environment that promotes sustainable growth and affordability.

Examining the impact of the new 30-year mortgage rule

However, policy for the sake of policy is not the answer. Take the new 30-year mortgage rule that the federal government introduced for first-time buyers. While this can increase the borrowing power of first-time buyers, the reality is that this will not impact the vast majority of Canadians who need relief when it comes to buying a home. Meanwhile, it does serve as an effective political soundbite. 

In larger markets like Vancouver and Toronto, a 30-year mortgage stretches payments over three decades, leading to higher interest costs for homebuyers in the long run despite immediate payment relief.

We must engage with local and provincial governments to ensure that both homeowners and developers are actively involved in decision-making processes.

Notably, developers in the United States have an easier time accessing information, permits and data. For example, in Seattle, developers who have applied for a development permit can obtain the permit in a minimum of 21 days. In contrast, in Canadian cities like Vancouver, permits are obtained within an average of 15.2 months. Our current high borrowing costs and extensive time spent waiting for permits ultimately get passed down to homebuyers.

Embracing proptech advancements alongside new policies 

Government policy alone won’t move the needle when it comes to helping first-time buyers get into their dream homes. But new policies combined with technology and innovation have the power to revolutionize the real estate industry, offering new ways to reduce costs and enhance efficiency. 

Proptech advancements, such as virtual reality tours and AI-driven property management systems, streamline operations and improve customer experiences. This goes hand in hand with innovations to speed up the approval process and grant building permits at the municipal and provincial levels. 

These technologies reduce the time and cost associated with buying, selling and managing properties. Additionally, the use of data and analytics allows for more informed decision-making, helping developers and policymakers identify emerging trends. 

Leveraging these technologies, alongside government programs and incentives designed to retain engineering and tech talent within Canada, will position us as leaders in innovation. This strategic approach will enable us to break new ground in the realm of development and affordable housing.

Meeting housing needs and strengthening Canada’s future 

Addressing the high cost of development and homeownership in Canada requires more than just lower interest rates. Local governments need to foster public-private partnerships, reassess zoning laws and incentivize affordable housing development. This goes along with embracing technological innovations that can enhance transparency and efficiency, while a proactive approach to managing real assets ensures long-term value and cost-effectiveness.

Governments at all levels should also be exploring strategies to streamline their cost structures, as current systems and processes lag behind the advanced technologies being adopted worldwide.

In addition, succession planning can provide stability and continuity in housing strategies. These measures collectively encourage smarter policymaking and will work to increase affordable housing supply, resulting in stronger Canadian communities.

Realtors, let’s admit it — most houses listed for sale on the market look pretty much the same. Sure, they may come in different sizes, shapes and colours, but the basic layout, design and features often feel like deja vu. 

However, every once in a great while, you may be contacted by someone who wants to sell their truly one-of-a-kind house. This could be a property with a distinct portability feature or a house with an unbelievably low price tag for its sheer size. 

So, if and when you get the chance to sell one of these special homes, do you plan on using your usual sales approach? 

We certainly hope not! Unlike conventional homes, unique properties have a limited buyer pool and distinctive features which means they need a special selling strategy. To guide you through this challenge, we gathered tips from top real estate agents on how to best sell these one-of-a-kind homes. Below are the strategies they shared. 

Tiny houses: Small properties that don’t cost much

A tiny house is what its name implies, a small home usually about 60 to 500 square feet. They’re cost, energy and space-efficient and budget-friendly, too. In fact, prices of some tiny homes in Ontario have recently been as low as $69,000.

Who are the target buyers for this unique property?

• Homebuyers on a budget
• A rent-weary tenant
• Environmentalists and minimalists

What strategies can help sell this one-of-a-kind property?

Emphasize its unique value proposition. As stated, tiny homes are all about affordability and energy efficiency. So, this is what you must focus on during marketing. Here’s an example of how you can highlight the affordability factor of tiny homes to a tenant who is fed up with rent increases.

Let’s suppose you’re selling a tiny home in Toronto — a market where you can get a tiny home for under $100,000. First, show your buyer the market data of how the average asking rent for even a condominium apartment is quite pricey:

Then, point out that it’s not really smart to pay around $2.400 for a condominium apartment in Toronto or even settle for a $2,000 rental in Barrie (as reported for August by rentals.ca). Instead, they could buy the tiny house in Toronto with a 5.0 per cent down payment, pay around $500 monthly on mortgage payments and build their own equity. 

When it comes to the energy-efficiency perk of tiny houses, also highlight it with numbers. For example, you can say that a normal-sized house uses an average of 26-33kW power every day but a tiny home uses just 3-4kW power.

Don’t let compact space be a dealbreaker for buyers. Kamal Pillai, a realtor in Ontario experienced in selling tiny homes, shares, “One main concern that tiny home buyers usually have is limited square footage. Hence, the seller of these houses should try their best to show that the home is thoughtfully designed to maximize every square inch.

They could achieve this by adding space-saving solutions in the home like a fold-out kitchen table or built-in storage. It’s all about making the most of what you have and presenting it in the best light possible.”

Price the home correctly. Unlike traditional homes, you don’t have much historical data to rely on for tiny houses, which makes pricing these properties trickier.

So, set a fair price for the tiny home by calculating the home’s construction costs and the estimated value of its unique features. Also, assess the current demand for tiny homes in the particular neighbourhood to make sure your price aligns with what buyers are willing to pay.

Houseboats: Homes on the water

Yes, houses on the water, also known as houseboats, can be found in the Canadian housing market. In fact, according to some houseboat owners, buying this type of property is one of the best lifestyle choices they have ever made.

A houseboat is a boat designed or modified to be mainly used as a living space rather than for transportation purposes. Some people live on houseboats all year round to enjoy the beautiful views of the water every day while others use them as vacation homes. 

Who are the target buyers for this unique property?

• Nature lovers
• Homebuyers on a budget
• Real estate investors 

What strategies can help sell this one-of-a-kind property?

Give the houseboat a clean and charming look. First impressions matter, even when selling a houseboat. So, advise the seller of the boat to deep-clean every nook and cranny of their houseboat before opening its door to buyers.

Pay extra attention to the kitchen and bathrooms, as they often leave the strongest impression. Also, if saltwater has caused rusty metal hulls in the boat, give it a fresh coat of paint. 

Make sure the houseboat has no severe safety issues. Apart from fixing the aesthetic issues in the houseboat, make sure the houseboat doesn’t have any major safety problems.

To do this, hire an expert marine surveyor who can assess the houseboat’s overall condition including the hull, engine, electrical systems and plumbing. You must also ask the seller if all necessary permits, registrations and insurance documents of the houseboat are up-to-date.

Pick the best time to put the houseboat on the market. The prime selling season for houseboats in Canada is usually from late May to early October.

This is when the weather starts to get warmer in Canada, and people are most interested in spending time on the water. So, showcasing the property during peak boating season lets potential buyers experience the houseboat lifestyle firsthand.

Cottage homes: A vacation home away from home

A cottage is often a cozy, rustic and charming house usually located in a rural or countryside setting.

Most cottages in Canada are specifically built for the warmer months, meaning they can’t handle the chilly weather. However, you can also find a few four-season cottages for sale that are inhabitable at all times of the year.

Who are the target buyers for this unique property?

• Second home-buyers
• Vacation rental investors
• Retirees

What strategies can help sell this one-of-a-kind property?

Highlight how investing in a cottage can pay off. Make sure to highlight to a would-be recreational property buyer that, according to a Re/Max report, Ontario cottages are expected to see a price increase in 72 per cent of recreational markets this year, with values potentially rising by up to 33 per cent.

Also, as interest rates fall, the price and demand for properties including cottages will likely surge more. Sharing these market statistics will help support your point on why your client should make a move now. 

Keep the cottage looking its best for sale. On hearing the word “cottage,” images of a charming property usually come to mind. This is the image the would-be buyers of the property for sale would be expecting, too.

So, do your best to ensure the cottage looks charming, inviting and well-cared for. This means tidy rooms, neatly arranged furniture, sparkling clean windows, shining kitchen counters, a trimmed lawn, blooming flowers and a welcoming porch. 

With carefully thought out and planned strategies like these to sell unique properties, you can easily adapt your sales tactics and get set to achieve a successful sale. 

A lot can go wrong in a home that can be costly to repair. When showing a home or viewing it with clients, there are some common issues realtors can make buyers aware of when it comes to plumbing.

Every homeowner should at least have a basic understanding of problems that could arise as well as the appropriate professional to remedy the situation. It’s helpful for your clients to have a trusted plumber to call when there’s a problem — sometimes even with small issues because things can quickly escalate.

Following are some plumbing problems your clients may come across. It’s important to have an expert on hand to pinpoint and fix any issues before water damage occurs. On top of dealing with that, they could even end up paying more in water bills thanks to deficiencies.

7 plumbing issues that may require a plumber’s expertise

1. Dripping faucets. Faucets and fixtures in sinks, bathtubs, showers and dishwashers should not drip when turned off. Dripping is often due to worn seals and can lead to higher water bills over time. Addressing these drips promptly can save money and prevent further wear.

2. Leaky pipes. Leaks can occur in both visible and hidden pipes, leading to water damage, mould growth and increased utility costs. A plumber is needed to locate the source of leaks, especially those hidden behind walls or under floors, and to repair or replace the affected pipes.

3. Running toilets. Toilets should not continue to run after flushing. A running toilet indicates an internal leak, which wastes water and increases bills. If jiggling the handle is necessary, components like the flapper valve, float or fill tube may need adjustment or replacement.

4. Clogged or slow-draining sinks. Kitchen sinks often clog due to food debris and bathroom sinks frequently become clogged with hair. While some clogs can be cleared with over-the-counter solutions, persistent issues require professional attention. Using strainers can help prevent clogs by keeping debris out of drains.

5. Sewer line backups. A clogged sewer line can cause significant damage by backing up raw sewage into the home. This issue is often due to tree roots or broken pipes and requires specialized equipment and expertise to diagnose and resolve.

6. Water heater issues. Leaks, sediment buildup or faulty thermostats can lead to inefficient heating or complete failure. A plumber can assess the water heater’s condition and perform necessary repairs or replacements to ensure it operates safely and efficiently.

7. Outdated or banned piping. In older homes, you may find galvanized or polybutylene pipes, which are prone to corrosion and can lead to lead contamination or system failure. Replacing these pipes with modern materials is a complex task that requires a plumber’s expertise.

Other issues

Additional common plumbing issues our inspectors often come across include: 

• No water shut-offs — essential for quickly stopping water flow in emergencies
• No backflow valve — prevents contaminated water from entering the clean water supply
• Improper fittings — can lead to leaks or inefficient water flow
• Incorrect dishwasher connections — improperly installed drain lines can cause leaks
• Loose toilets — can lead to leaks and water damage
• Poor water pressure — may be a sign of underlying plumbing issues

Encouraging your clients to schedule annual home maintenance inspections can help identify these issues early. Home inspectors can spot problems and may recommend local plumbing experts to address any concerns.

An annual inspection is also a great time for homeowners to bring up any issues they’ve noticed throughout the year that weren’t remedied right away. Preventative maintenance not only provides peace of mind, but it can also save money by addressing potential problems before they become major issues.

Understanding insurance needs can be daunting for any small and medium-sized enterprise (SME). Yet as SMEs contend with an evolving landscape marked by economic fluctuations, technological disruptions and heightened regulatory scrutiny, having a robust insurance strategy is crucial to maintaining stability and peace of mind. 

This is particularly true in the real estate industry. In fact, according to Innovation, Science and Economic Development Canada, over 99 per cent of businesses in real estate and rental and leasing are small businesses. To safeguard against uncertainties, it’s crucial to identify specific risks that could jeopardize their operations and seek appropriate, tailored insurance solutions to protect their bottom line.

Unique challenges faced by real estate SMEs

Real estate SMEs operate in a highly competitive and often unpredictable environment. From property management firms to small-scale developers, the risks are diverse — ranging from monetary or reputational harm, they can significantly impact a business’s bottom line. 

For instance, a property manager might be forced to face legal action if a tenant damages a property and the screening process had been inadequately performed. Imagine a scenario where the property manager overlooks the tenant’s previous eviction history during screening. The tenant subsequently causes extensive damage, leading to costly repairs and lost rental income. The property owner then sues the property manager for negligence, claiming that the manager should have identified the tenant’s past issues during the screening process. 

Such situations underscore the importance of having insurance that appropriately addresses highly specific risks. However, knowing which ones you face can be a challenge, and working with an insurance professional who has specialized knowledge and experience in risk assessment is always a good place to start. 

Essential insurance solutions for property managers

Considering the various risks that can jeopardize their operations, property managers operating on tight budgets may see insurance as an expense rather than a necessity, overlooking its importance for business continuity.

Essential coverages for property managers can offer security by mitigating risks that could disrupt operations and stunt future growth:

• Directors and Officers (D&O) Insurance. Protects the personal finances of directors and officers from legal challenges arising from their decisions, offering crucial protection for company leadership.
• Errors and Omissions (E&O) Insurance. Protects professionals whose business decisions may lead to errors, omissions, neglect or breach of duty while providing services resulting in third-party claims.
• General Liability Insurance. Protects against claims of bodily injury, property damage or personal injury that occur within their office premises.

Customized insurance solutions: A necessity, not a luxury

Every industry has its own unique risks, and the real estate industry is no exception — whether it’s residential property management, commercial real estate or development. That’s why working with an insurance professional who understands the specific challenges of the industry can help tailor a policy package that fits a business best. 

One common challenge SMEs face is limited resources. When it comes to insurance, most SME owners don’t have the bandwidth to explore every option available, and this can lead to difficulty in finding comprehensive coverage that properly protects them from a range of exposures.

To address this need, the insurance industry is developing new inclusive policy packages — offering combined policies that are customized for small businesses. This can make it easier for SMEs to manage various areas of coverage and enhance their ability to proactively control risk.

In response to the specific needs of SMEs for a single insurance policy, many are seeking “insurance packages” that combine various coverages into one, including E&O liability, general liability, contents, cyber and legal coverage together, simplifying the management of insurance needs for small businesses.

Balancing affordability with adequate protection and a reliable contact point

Cost is always a concern for SMEs. However, it’s essential to balance the need for affordability with the need for adequate protection. Cutting costs by reducing coverage can lead to vulnerabilities that may be far more costly in the long run. Instead, SMEs should look for insurance providers who offer competitive pricing without sacrificing the quality of coverage. 

Lastly — and perhaps most importantly — having a reliable point of contact during the claim process will help ease the pressures faced by SMEs throughout that time. This fosters trust and facilitates more seamless solutions when an incident arises so that SMEs can focus on what matters most: their business. 

Embracing technological advancements  

Brokers act as a lifeline for SMEs, providing them with products, services and experiences based on the risks they’re exposed to. As the insurance space adopts new technology, brokers can now utilize user-friendly digital portals to better assist real estate SMEs in a timely and efficient manner.

These portals offer real-time quotes and policy issuance, available around the clock, enhancing satisfaction and ensuring that clients can purchase insurance policies at their convenience.

Insurance plays a vital role in risk management for SMEs in the real estate industry. Understanding insurance products and utilizing technological advancements can greatly simplify the process of acquiring comprehensive coverage. Staying informed, leveraging technology and prioritizing comprehensive coverage will help real estate SMEs protect their bottom line and build a resilient business for the future.

It was a rainy fall day in October 2015. I was inching through downtown traffic when an agent from one of our offices called me. One of my jobs was to help our agents when they had clients who had real estate needs outside of our service area.

“What’s the situation?” I asked. The agent explained that her friend and her friend’s husband had both died of cancer within some 12 months of each other, orphaning two young children. The children were being adopted by an unmarried uncle on the other side of the country. While he was a successful professional with a well-paying job, his urban bachelor pad wasn’t going to be sufficient, especially since he was also in the process of relocating his parents from Europe to the United States to help him raise his nephew and niece. 

We worked closely with our affiliate in the destination market to find an agent who was very knowledgeable about real estate and, importantly, also deeply empathetic. Around six months later, an email arrived containing a very rewarding photo: the uncle, his parents and the children smiling in front of a generous suburban home, on a snowy day.

Part psychologist, part salesperson: Transactions often weighted with emotionally fraught situations

It has been said before and it bears repeating: a home is the biggest investment most people will ever make — an investment often weighted with emotionally fraught situations. This combination tends to lead to intense and transparent interactions.

The best agents will readily tell you they are part psychologist, part salesperson. On a recent listing presentation, one of our agents spent hours with a woman who was going through a nasty divorce, listening to her and advising her gently on what small improvements and tweaks she could make to increase the saleability of her home. Our agent may or may not get the listing assignment, but she knows on a human and professional level that she’s truly been of service. 

Dealing with the ‘3 Ds’: Divorce, death & debt

In the course of working with their clients, real estate agents often encounter the “3 Ds”: divorce, death and debt. While it may sound trite, it isn’t: these are delicate human situations of almost sacred importance.

With most professionals — dentists, lawyers, accountants — if you need to meet them, you go to their office. But agents often come to their clients’ homes, even if they’ve never met them before.

They’re invited in, literally and figuratively into all the joys and misfortunes it contains. They help a couple find a new place for their growing family, the living room where their child will take his first steps, the bedroom where their daughters will sleep. For another family, they help navigate a marriage breakup and the division of the home — what is (usually) the biggest financial asset and also the one with the most relational baggage.

The soul of the real estate agent (it’s not the legal framework and compensational mechanics we see in the news)

Organized real estate has been much in the news over the last year. The class-action lawsuits in the U.S. and similar, earlier-stage actions in Canada focus industry and media attention on the legal framework and compensational mechanics of the real estate business.

For agents, these factors are background noise, secondary to the trusted advisor work they perform on a day-to-day basis. Good agents don’t do it for the money; they do it because they love to help people, even (or especially) in complex, tragic and delicate situations.

Making a living is a byproduct of the help agents offer families — this is the soul of the real estate sales professional.

The Canadian real estate market is a dynamic one, often influenced by several economic factors. With the post-pandemic shift in the market, we’ve witnessed a lot of fluctuation in property prices. As prices have recently increased, this trend may cause potential first-time homebuyers to hesitate when purchasing their home. 

However, when it comes to pre-construction properties, now is actually one of the best opportunities to secure a deal. Let’s walk through some of the key reasons why pre-construction investments remain a smart choice, and how you can strategically help your clients navigate the current market.

Pre-construction pricing dynamics

Best suited for first-time homebuyers, the key fundamental aspect of pre-construction properties is the pricing mechanism. Unlike investing in resale, pre-construction properties are sold at today’s prices but completed and delivered roughly three to four years later. 

What does this mean for your buyers? The price they agree to now does not reflect the final market value at the time of completion. Real estate markets are cyclical, and as history shows, property values are set to appreciate over time. Plus, pre-construction offers a flexible down payment plan best suited for first-time homebuyers. 

Many aspiring buyers are hoping for a further price drop, but by the time their pre-construction property is built, the market is likely to have rebounded, resulting in a property value increase. Essentially, buyers lock in a lower price now for a property that will be worth a lot more in the future. This inherent appreciation potential makes pre-construction properties a lucrative investment.

Helping clients adopt a long-term perspective for real estate

These days, it’s crucial for both buyers and sellers to educate themselves on why the real estate market is all about long-term perspective. The idea is to build and preserve wealth over time. 

For buyers, this means getting used to market fluctuations and understanding that patience is key. The current dip in real estate presents an opportunity to enter the market at a slightly lower cost, instead of expecting prices to go down further and that values will rise by the time their property is ready. Have these important conversations with your clients.

Taking advantage of a buyer’s market

In today’s buyer’s market, agents and brokers have a unique opportunity to guide their clients through uncertainty and position them for long-term success. Here are key strategies that can help professionals in the field increase client confidence and close deals effectively:

1. Strengthen negotiation leverage. As an agent,  the ability to negotiate effectively becomes even more critical in a buyer’s market. Educate buyers and investors on the leverage they have, not just in price but in securing favourable terms like extended deposit schedules, builder incentives or upgrade packages. Emphasize the value of these perks, and use them to craft deals that align with buyers’ long-term objectives.

2. Highlight the importance of capital utilization. In a market where things are changing by the minute and liquidity is king, it’s important to convey to your clients the advantages of putting cash reserves to work in real estate over letting them sit idle in bank accounts.

Highlighting how pre-construction properties offer a unique opportunity for growth where they appreciate over time, it’s important to note that property values are expected to rise over the next few years. Investing now means buyers are set to benefit from future appreciation. The property they invest in today at the current price could be worth significantly more by the time it’s completed, providing substantial returns on their investment. Money in low-interest savings accounts can be worth much less in the future, whereas investing in pre-construction can yield better returns.

3. Role of population growth in demand. With the growth in population around urban centres and the increasing opportunities and improved lifestyle benefits that come with it, the demand for housing is only going to increase.

Population growth means more demand for new homes, pushing property values upwards. While we already witness many developers working towards providing more housing options, the short-term price dip is only here for a while before demand increases again. New construction is finite in desirable areas, but this means it will inevitably lead to higher property prices.

Improving economic conditions also results in a return to consumer confidence and, with that, the demand for real estate is also set to increase. This cyclical recovery will bolster property values.

Seizing the moment

In a buyer’s market, the role of an agent or broker extends beyond merely facilitating transactions. It’s about empowering buyers with the knowledge, strategies and confidence they need to make sound investment decisions.

Real estate is a journey, not a sprint. By thinking long-term and making informed decisions today, your clients can set themselves up for substantial financial gains in the future.

The real estate market in the Greater Toronto Area (GTA) is interesting from a younger generation perspective, specifically with the decline of condominium sales and the rise of townhomes/semi-detached/detached home sales.

Condominiums in the past were affordable and the primary purchase of first-time buyers. Their low cost and almost immediate equity return made them enticing for young purchasers. However, this is not as common these days.

Daunting market for first-time buyers results in missed opportunity and risk

As a realtor in the industry, I’ve always aspired to live downtown in a condominium where the waterfront communities are located, but higher interest rates and current sales showing loss of equity and lower prices to entice buyers makes this a huge risk for a first-time buyer. Even with a longer amortization period being offered for new builds granted by the province, it’s daunting for many younger buyers entering the market.

The hidden costs of new builds mean the majority of buyers don’t have the funds to purchase. Therefore, many younger buyers entering the market are opting out of the risk of investing in a condominium and going for a townhome, semi-detached home or even detached home in an affordable community.

This is unfortunate for everyone involved. For one, the buyer can miss out on the experience of living in a vibrant downtown community like Toronto. As well, it raises the risks for builders due to not enough interest and pre-sale purchases to continue construction, potentially leaving construction projects abandoned and “devaluing” neighbourhoods with gaping holes and partially constructed buildings.

Larger homes in affordable areas with future growth similarly priced to downtown condominiums

Buying our first property is the biggest purchase of our lives, so it makes sense for buyers entering the market to be wary of what their return on investment will entail. Builders are seeing the backlash from this, with an influx of condominiums on the market advertised for months with little to no interest due to the risk.

This can force a company to not build its future projects because its target demographic isn’t buying existing inventory. If a young working professional has the chance to buy a townhome, semi-detached or detached home in an affordable area for almost the same price as a downtown condominium with the potential of increasing its future value, picking the latter is an unbeatable decision.

Bidding wars and short-term rentals alienate younger, first-time buyers

The biggest factor in cases of buying a condominium downtown is when it comes to placing an offer and the potential bidding war that ensues. I have friends with the financial means to buy who have attempted to offer on multiple condominiums downtown. They’ve made the cleanest offers with normal conditions to protect themselves, only to be bought out by a “no conditions” firm cash buyer.

Now, it may not be the case for each condominium in the GTA, but in the downtown area alone, many are being bought out by companies with real estate portfolios only looking to add to them and run the unit as a short-term rental. It can be disheartening for anyone who is young and looking to live in the downtown core when there are so many obstacles in the way of achieving that.

There are even condominiums completely run for the purpose of short-term rentals, with the condominium board members themselves profiting. While from an investor perspective there’s nothing wrong with doing this, the flip side of that coin is that it makes it impossible to keep affordable homes for the next generation. Looking ahead, this can mean that sales in the next 10 years may be problematic for those who own homes including condominiums.

This is why many people around my age, in their twenties and thirties — a huge demographic that condominium boards need to consider — are opting out of buying a condominium downtown. It’s what I believe is the biggest reason for declining condominium sales.

An Ontario government call-to-action

There needs to be stricter policy, especially in the downtown core, regarding the use of short-term rentals specifically in Toronto condominiums.

If Ontario follows the route British Columbia took earlier this year in May with the passing of legislation to restrict short-term rentals, it could make a huge difference in buyers’ mentality around condominiums. Most importantly, it would bring more condominiums to market and decrease the current “unsold” units, estimated at nearly 26,000 on the market.

I believe if a policy akin to the one out west was created in Ontario, many buyers would be living in the condominium as opposed to renting it out short-term for the sole reason of profit.

If you think AI begins and ends with ChatGPT, you’re missing out on a universe of possibilities. While OpenAI’s chatbot took the world by storm, it’s just one star in an ever-expanding galaxy of AI models. Relying solely on ChatGPT is like trying to build a house with only a hammer — you’re limiting your potential and possibly compromising your results.

This principle applies across industries like Canadian real estate. Realtors in this field wear many hats, requiring skills in negotiation, social media, content creation and more. By exploring AI tools beyond ChatGPT, realtors can leverage diverse AI capabilities to enhance various aspects of their business, rather than limiting themselves to a single tool.

Risks of relying on a single AI system

• Missed opportunities. Using a single AI system can lead to missed opportunities and biased results.
• Limited perspectives. A single model can only provide a narrow view of a problem or solution.
• Stagnation. Relying on a single AI system can lead to stagnation, as you miss out on innovations from other models.
• Vulnerability to outages or updates. Dependence on a single system leaves you exposed if it experiences downtime or significant changes.

My experience using various AI models over the past four years has reinforced these risks. The quality of outputs can change dramatically, sometimes on a weekly basis. This volatility underscores the danger of stagnation when relying on a single system.

For instance, if one AI model consistently produces poor social media posts for first-time homebuyers, exploring alternative models could yield better results rather than waiting for improvements in a single system. 

Benefits of AI diversification

• Comprehensive insights. Multiple AI models provide a more comprehensive understanding of a problem or solution.
• Innovative solutions. AI diversification can lead to innovative solutions and new ideas.
• Adaptability. By using multiple AI models, you can adapt quickly to changing circumstances.
• Enhanced problem-solving. Different AI models approach problems in unique ways, leading to more robust solutions.

Diversify your AI arsenal — at no cost

Imagine having unrestricted access to the internet in its early days — you would have seized the opportunity!

Today, top tech companies worldwide are offering their cutting-edge AI language models for free. However, unlike the internet’s early days, we now have multiple AI models in an intense arms race, with innovations emerging every week.

Compare AI responses: One prompt, multiple platforms

One of the most effective ways to harness the power of AI diversity is to use identical prompts across different AI platforms. This approach allows you to directly compare outputs, highlighting each model’s unique strengths and perspectives. By using it, you can identify which AI excels at specific tasks, uncover nuanced differences in language understanding and even spot potential biases.

The method not only enhances the quality of your final output but also deepens your understanding of each AI’s capabilities, enabling you to make more informed decisions about which tool to use for future tasks.

Top alternative AI tools

In the rapidly evolving artificial intelligence world, several powerful alternatives to mainstream AI models have emerged, each offering unique strengths and capabilities.

For example, Claude by Anthropic excels in nuanced conversations and ethical reasoning, while Google’s Gemini brings multimodal capabilities and up-to-date information to the table. Perplexity AI stands out with its real-time information synthesis and source citation (very important), offering an interactive search experience. For those seeking open-source solutions, Meta’s Llama 2 provides flexibility and customizability.

By exploring and leveraging these diverse AI tools, users can tap into a rich ecosystem of capabilities, each suited to different tasks and requirements.

1. Claude by Anthropic — known for nuanced conversations, ethical reasoning, detailed explanations

2. Gemini by Google — known for multimodal capabilities, up-to-date information, integrated search

3. Perplexity AI — known for real-time information synthesis, citation of sources, interactive search

4. Llama 2 by Meta — known for open-source flexibility, customizability, strong performance on various tasks

Stay diverse to stay ahead

The AI landscape is evolving rapidly, and relying on a single AI system can lead to missed opportunities and biased results. By embracing AI diversification and exploring multiple models, you can gain comprehensive insights, innovative solutions and adaptability.

Stay ahead of the curve in your real estate business by harnessing the power of AI diversification.

In the world of real estate or any other entrepreneurial vocation, it can be challenging to keep the motivation, passion and momentum at full capacity. At the same time, the idea of entrepreneurship is exciting and enticing: be your own boss! There’s no ceiling to what you can make! It’s all up to you!

As one of my mentors, Brian Buffini, notes, you might be a terrible boss who is too lax or too strict. There may not be a ceiling to what you can make as an entrepreneur, but there is also no floor … and it really is all up to you. Moreover, being in business for yourself and by yourself can be incredibly lonely.

Real estate: One of the only industries offering a tangible fee for your relationship

The challenge of keeping a high level of motivation and continuously propelling yourself toward success is one of the reasons real estate sales conferences are so popular. Hundreds (or thousands) of real estate professionals come together in a far-off location like Vegas, Halifax, Toronto, Dallas or San Diego for a few days, and the world stands still.

The material is engaging (hopefully), and you take notes, you might get a new book or two to read and you network with fellow agents, hoping that a great conversation will lead to a connection and, perhaps, even a referral. Oh, how we love referrals!

P.S. If you still need to get on the referral train, I recommend hopping aboard immediately. Real estate is one of the only industries offering YOU a tangible fee for your relationships. And make no mistake: the relationships we build in real estate can take years to build and a small fortune to create. You completely deserve a referral fee when you connect a client to a colleague for help in another market. Stay tuned for my next article on referrals. But really, do it. Do it NOW.

Back to the conferences

I have personally attended conferences by Buffini & Company with Mastermind, Turning Point, Success Tour, Masterclass and Peak, Kathleen Black Coaching Company, Richard Robbins International, Tony Robbins with Unleash the Power Within, Tom Ferry and Royal Lepage with the National Sales Conference. I’ve also attended a few large-scale conferences like TRREB’s Realtor Quest and The Power of Success in Toronto.

Yes, I know there are a lot of conferences. Too many, perhaps.

Just attending a conference — a GREAT conference — can make you feel like a brand-new person. It’s a bit cult-y, but it’s okay — we’re drinking the Kool-Aid, and it’s actually good for us. When we return, our friends and families are a little weary of our top-shelf energy, but it’s all good. Until that motivation and “whoop whoop” wears off.

Zig Ziglar notes that motivation is like bathing. It doesn’t last, so it has to be done daily. But you can’t go to a conference every day … Can you?

Ensure your time, money & energy investment translates into a more successful business and more joyful version of yourself

We can get so addicted to the hype of a conference, with the music, the energy, the immersion and that feeling of being unstoppable, that we forget conferences are meant to help us on our journey. They are not the journey. They’re like a booster pack for entrepreneurs: let’s GO!!!! You should not need to go to several conferences every year. Are they fun? Yes. Are they expensive? Yes. Can you confuse a conference for a vacation? You bet your boots you can.

So, how do we ensure that our investment of time and money (and energy … so much energy!) translates into a more successful business and a more joyful version of ourselves?

WORK. We have to put in the work. Nothing worth having comes easy.

With that said, here are the four steps to a successful conference experience.

1. Connection

Attending a conference can feel like you’re back at the first day of high school. You might know some people and even think your best bet is to find them and spend time with them. Maybe it is. But it’s also important to make room for new relationships — especially because you’re in a room of like-minded professionals. Chances are, you’ll have a few things in common.

When you have a conversation, trade information — either business cards, emails, cell numbers or social media. Send a little note afterward (and get them all in your business referral database ASAP). Try not to be the person with a pile of cards on or near your desk from the last few years of networking.

Pro-tip: Make a note of their name and your conversation with them, whatever they mentioned in the conversation. You will literally make their day if you send a note by email, text or snail mail, thanking them for sharing about (insert conversation here) and saying how nice it was to meet them.

Try to meet/connect or deepen a connection with at least three people every time you attend a conference. Small talk is for small people. There are so many exciting things to talk about — take a page from Vanessa Van Edwards and ask fun questions to deepen that connection and find your commonalities.

Pro-tip: Constantly pointing out how different and unique you are will actually isolate people in these initial stages. Be honest, and know that finding similarities will build a bond faster.

2. Learning/growing

Conferences can be a lot of fun. And I mean a LOT of fun. It’s great to sandwich the learning with playtime, but remember that this isn’t playtime. Otherwise, you’re just on a really expensive vacation without your family or friends.

Stay engaged, take notes and really listen. Stay off of your phone. Contrary to what we all believe about our very important real estate careers, an hour or two offline won’t end it all. If you were in a listing appointment with one client, would you stop in the middle of it to text another client? NO! So why are you interrupting your appointment with yourself and your personal development?

A lot of conferences will give you the workbook to fill in now, and those are very helpful. They force you to pay attention too (or sit with an excellent note-taker). Buffini conferences are great for this because they outline all of the points in the main talks. Bonus: You can recall the information more easily later on.

Jot down books that are recommended (I aim to read 10+ pages a day of a personal growth book, which everyone has time to do) and any thoughts you have about the talk, too. It’s also nice to use these topics to connect with your colleagues on breaks because sometimes you’ll hear a different perspective that you hadn’t thought about.

3. Reflecting

Now that you have spent the time connecting with like-minded individuals (LMIs) and have really leaned into learning and growing throughout the conference, it’s time to lock in that knowledge and experience with some good, old-fashioned reflection.

Go for a walk, hit the gym, swim, meditate and journal. Do whatever comes naturally to you for reflection. Think about what you learned and how you might implement some of it into your business and your life. What really stood out? Could you share any of this with colleagues, family or friends who weren’t there?

4. Rediscovery

In the latest conference I attended, Brian Buffini talked about rediscovery over reinvention. And if you’re on social media, you’ve probably seen countless ads advising us to go away for six months and return as a “new you.” Whether it’s fitness, health, business, money or beauty, the pull to change it up and become a new person seems enticing. But to what end? The real YOU is inside of you and will keep coming out. Take time to learn about the things that make that real you so fantastic and start the process of rediscovery today.

It’s powerful to be confident as ourselves. Our current culture makes it seem sexy to change it all up, but that only makes sense if you consider how many industries benefit when we aim to find a quick and easy way to the life we actually hope to have.

It’s important to also lean into whatever sets your soul on fire. Whatever makes you feel unstoppable and like the world is giving you a high five. It might take some more reflection and rediscovery, but what do you love to do? And, more importantly, if you’re not doing these things, why not?

For example, I love leading, mentoring, guiding and coaching, and I have the privilege of exercising these passions with my real estate clients and colleagues. I have a passion for sharing and am so excited to reach new heights together with my “marble jar people,” as Brene Brown says. I also love writing and sharing, so I started a podcast and a blog, and I’m working on a book.

I didn’t do these things for the longest time because I thought I had to be invited or have extra time or money. But here’s the thing: when you truly decide you want to do something or have something, the universe will conspire to ensure that you are given every opportunity to reach that goal.

You have to be part of it though. You need to take steps towards it. You will find the time. You will find the money. You have to believe that it’s possible. As Anna Buffini said at a recent conference, “You don’t need to see the light at the end of the tunnel. You just need to believe that there is a light.”

May your next conference be everything you dream it will be, and more.

I’ll probably see you there.

As real estate professionals, we’re well aware of the challenges facing today’s housing market, especially for younger buyers. Millennials and Gen Z are finding it increasingly difficult to break into the market due to soaring property prices, high interest rates and the ongoing cost of living crisis.

However, shared homeownership is emerging as a strategic solution, offering a creative pathway to homeownership that aligns perfectly with current market trends.

A shift in homeownership dreams

Homeownership has long been synonymous with stability, wealth and personal success — the quintessential Canadian dream. Yet, this dream seems increasingly out of reach for many younger Canadians.

A recent BMO survey highlights a significant generational shift, with 68 per cent of Canadians believing that buying a home is less attainable now than it was for their parents. This sentiment is even stronger among Gen Z and younger Millennials, who are navigating an unprecedented affordability crisis.

The financial landscape 

The National Bank of Canada reports that housing affordability has reached record lows, particularly in major urban centres. For example, in Vancouver, the cost of a home has surged to 14.5 times the median household income, while in Toronto it stands at 11.8 times and in Victoria, 10.7 times. Meanwhile, the cost of living has increased substantially, with rent prices in urban centres like Vancouver and Toronto averaging $2,500 to $3,000 per month for a two-bedroom apartment and exceeding $3,500 for single-family homes.

These financial pressures highlight the need for innovative solutions to make the dream of owning a home achievable for younger generations once again.

The co-ownership advantage

Shared homeownership offers many benefits that make it an attractive option for prospective buyers. By dividing the costs of a down payment, mortgage and maintenance fees, this approach makes it possible for individuals to enter the housing market sooner and with less financial impact. Sharing the financial responsibility reduces the risk for each co-owner, making the investment and monthly obligations more manageable.

A Royal LePage survey conducted by Leger reveals that six per cent of Canadian homeowners co-own their property with another party, not including their spouse or significant other, and that number is growing. According to a study by Compare the Market, 61 per cent of Canadian respondents expressed willingness to buy a home with friends or family to offset costs. The concept is simple: multiple parties jointly purchase a property, sharing the costs and benefits. 

One approach to shared homeownership involves parents co-signing mortgages to help their children qualify for better financing, leveraging their financial stability for improved terms and interest rates. This has led to more multigenerational homes, where families either live together or parents provide a financial investment while living separately.

Another common structure is Tenancy in Common (TIC), allowing multiple parties to own undivided shares of a property. Each owner holds a specific percentage and has the right to use the entire property, making TIC ideal for friends or family members co-owning a home while maintaining individual ownership stakes.

A case study in modern shared homeownership

Consider the case of Liane Van Raalte, a Squamish, British Columbia-based realtor. She and her family invested in two presale units at Sokana, a Kerkhoff Develop-Build development in Penticton, B.C. Developments like this go beyond simply providing homes; they offer a lifestyle specifically designed for the new generation of homebuyers.

Increasingly, new developments are transforming the concept of co-ownership by including resort-style amenities that elevate the shared living experience. These features make shared ownership even more appealing by providing benefits that individual buyers might struggle to afford on their own.

Co-owners can enjoy state-of-the-art co-working spaces, fitness centers, rooftop pools and communal areas, enhancing their overall lifestyle. This approach shows that shared ownership not only makes homeownership more affordable but also enriches the living experience, making it a highly attractive option for today’s younger generation of buyers.

For Van Raalte, the decision to invest in Sokana was driven by the development’s unique offerings and blend of practical and luxurious amenities. “We wanted to invest in something with our children that they may potentially live in down the road while starting to build equity now, rather than wait until they are more settled in their lives,” she explains.

Key considerations for co-ownership

While shared homeownership offers many benefits, it requires careful planning and clear agreements to ensure a smooth experience. Here are some essential factors to consider when counselling clients on co-ownership options:

1. Legal agreements. Advise clients to draft a comprehensive co-ownership agreement. This document should clearly outline each party’s rights and obligations, detail financial contributions and include processes for dispute resolution and exit strategies. A well-drafted agreement is crucial for protecting all parties involved.

2. Financial contributions. Emphasize the importance of clearly defining each party’s financial responsibilities. This includes the initial down payment, mortgage payments, property taxes and ongoing maintenance costs. Clear financial delineation helps prevent misunderstandings and conflicts.

3. Responsibilities and maintenance. Encourage clients to establish a detailed plan for property upkeep and repairs. This ensures that the property is well-maintained and helps prevent disputes over maintenance responsibilities.

4. Exit strategies. Stress the necessity of a well-defined exit strategy. This should cover the process for selling a party’s share of the property, valuation methods and rights of first refusal for remaining co-owners. Having these details sorted in advance can prevent contentious separations.

5. Conflict resolution. Recommend including mediation or arbitration clauses in the co-ownership agreement. These can help resolve disputes amicably and avoid costly legal battles.

Understanding and promoting shared homeownership can help you better serve your clients, particularly Millennials and Gen Z. This model not only makes homeownership more accessible but also aligns with the evolving needs and financial realities of younger generations. By embracing innovative approaches like co-ownership, you can help turn the dream of homeownership into a reality for more Canadians.