Archive for June, 2009

Peter Gilgan, the owner of Mattamy Homes here in Oakville recently sent out an email regarding his company’s North Oakville development plans. For those of you who don’t know, Mattamy is the largest land owner in the yet to be developed area of North Oakville (North of Dundas Street).

At the heart of the email is Mattamy’s concern over a proposed increase in new development taxes. When a new home is built, the developer has to pay a development charge to both the region and local government in exchange for certain developmental services such as roads and utilities, park development, fire and rescue services, additional library and recreational services, etc. Ultimately, these development charges are passed down to new home buyers as reflected in the purchase price of their home.

Oakville’s current development tax is already significantly higher than other surrounding communities (see figures below). On July 15^th, Halton Regional Council is voting on a proposal to raise the development charges by $8,000 per lot to $55,200. To exacerbate the issue, a further $9,000 charge is being contemplated by Oakville Town Council, bringing the potential charge for a small detached lot in Oakville to $64,200.

Current Development Charges for small detached or semi-detached lots:

Oakville $47,200*

Mississauga $32,100

Aurora $37,100

Pickering $29,800

* Oakville’s current development charges are roughly 47% higher than Mississauga, 27% higher than Aurora and 58% higher than Pickering. The proposed increases to $55,200 and $64,200 will respectively bring charges in Oakville a whopping 72%-100% higher than our neighbours in Mississauga.

To be fair, I would expect Oakville to charge higher than average development costs as it also provides its residents with great services and a great community. Charges in excess of 50-100% do however make me question exactly how this money is being spent. I question whether or not the developers and new buyers are being forced to take the hit for shortfalls in government money no longer being passed down from the federal and provincial levels.

Development conversations have been going on for six long years now. Like many people, I am excited by the North Oakville development plan and am looking forward to see it move forward. Recent arguments over government funding and now development charges are however making me wonder if the benefits of careful planning are being outweighed by the costs of inertia. The longer these developments are delayed, the higher the cost of development to potential buyers. There have been 6 years of consideration given to understanding the effects of new development on the Town of Oakville. The question I want to know is whether or not anyone has considered the effects of NOT developing. Improvement of town services through an increased tax base being just one positive impact of new development.

We all want a great place to live but at some point, we have to stop the roadblocks and find a way to let development move forward. In my mind, squeezing the developers and in turn, squeezing the pockets of new residents is not a great approach. If you have thoughts on the matter, I would love to hear from you. You can contact me at 905.338.9000, lindsay@remaxaboutowne.com or visit my website at www.lindsaywalls.com.

Regards,

I had an epiphany a few days ago – in a car dealership of all places. My sister was looking for a new car and had asked me to come along with her to negotiate with the sale rep she met a few days earlier.

To protect the guilty, I will not mention the name of the dealership we went to however we were greeted with a warm welcome and immediately ushered into the salesperson’s office where things quickly fell apart. While the salesperson was very much interested in getting to figures, my sister was still trying to figure out if she liked the dealer’s cars and if so, which model to choose. I started asking some questions thinking that this would help her reach a decision. Questions along the lines of fuel efficiency, safety features, maintaining warranty protection, pricing structures – you get the picture. Apparently this was the wrong thing to do. The salesperson was convinced that a certain model was best suited for my sister and seemed offended that she would even have questions, questions that he wasn’t able to answer. The longer we sat there, the more he pushed; the more he pushed the less we listened. Perhaps it was just coincidence that there was an abundance of stock on the model he wanted her to buy; perhaps there really was a computer crash that prevented him from answering our questions but something in my gut (and my sister’s) just wasn’t buying it.

Much like car salespeople, realtors often get a bad rap for being pushy, uninformed, lazy, you name it. Let me be very clear though that my opinion of salespeople is not a negative one. I’ve come to appreciate the difficulty of sales roles and have had the privilege to work with some amazing people along the way. However, sitting across from this particular salesperson I was just a mad and frustrated consumer. I couldn’t figure out why this person was unwilling and/or unable to answer our questions. To make matters worse, I got the distinct feeling that he was trying to push something on my sister because it suited him with complete disregard for her needs and wants.

Reflecting on this experience, it occurred to me that there is a HUGE difference in how salespeople approach their roles. The salespeople I want to deal with are patient, knowledgeable, and listen to the needs and wants of their clients. Much like an educator, they equip me with the knowledge I need to make an informed decision. Conversely, there are those salespeople that come across as pushy, intimidating and self-serving. They are the people I like to think of as skilled at the hard sell.

The next time you meet a salesperson, ask yourself if they are trying to “SELL” you or if they are trying to “EDUCATE” you. You know yourself better than anyone else, including the salesperson you work with. A good salesperson knows this and works hard to give you the information you need to be comfortable making a decision for yourself. Next time you find yourself in a car dealership (or real estate office), look for the signs of a true educator and hang on tight when you do!

AS AN ASIDE: I walked into another dealership two days after the first salesperson debacle and had ALL my questions answered by a simply FANTASTIC sales person. My sister went back a day later armed with all the information she needed to make an informed decision and is now thrilled with her brand new car.

If you’re looking for a non-slimy salesperson, I would love to hear from you!  I can be reached at 905.338.9000, lindsay@remaxaboutowne.com, or www.lindsaywalls.com.

Regards,

RE/MAX just released their latest Recreational Property report which finds that Generation X’ers (myself included) have become a major force in the acquisition of recreational properties. Without further ado, here are the findings…

Mississauga, ON (June 2, 2009) — Generation X purchasers are poised to replace aging baby boomers as the major force in recreational property markets across the country, according to a report released today by RE/MAX.

The demographic shift was noted in the 2009 RE/MAX Recreational Property Report highlighting sales, pricing, trends and developments in 50 Canadian markets. The report found demand from Gen X (those born between 1965 and 1980) has nearly doubled over one year ago. Seventy-four per cent of markets surveyed this year reported a marked trend toward thirty-something buyers snapping up affordably-priced product, ranging from waterfront cottages to resort condominiums, compared to just 40 per cent in 2008.

“After being priced out of most markets for the better half of the last decade, Gen X purchasers now have the financial wherewithal to buy recreational product at virtually every price point,” says Michael Polzler, Executive Vice President, Regional Director, RE/MAX Ontario-Atlantic Canada. “Gen X is ideally positioned to pick up any slack in recreational property markets caused by softer demand from baby boomers and retirees. They represent the next wave of recreational property owners in Canada and they know it.”

The financial strength of the cohort dovetails well with current market realities. Sixty-six per cent of recreational property markets surveyed reported a decline in the number of recreational product sold in the first four months of 2009, while 22 per cent indicated sales were either up or on par compared to one year ago. While the combination of inclement weather and a global recession clearly hampered sales activity earlier in the year, many major centres are currently experiencing an upswing in activity as the traditional cottage season gets underway.

“Much of the activity in the marketplace today has to do with the mindset of this particular generation,” says Elton Ash, Regional Executive Vice President, RE/MAX of Western Canada. “More important than the investment aspect is the commitment to lifestyle. The purchase of a waterfront home or a condominium is more than a simple transaction to Gen X purchasers – owning a recreational property underscores their dedication to family and balance.”

The time to buy has never been better. With four exceptions, recreational property prices have softened in most major markets across the country. Only on the Newfoundland Coast and in Ontario, from Innisfil to Oro, Kingston, and Beaverton, have values increased this year compared to 2008. Starting prices remain similar to one year ago and in some cases are even higher.

“While buyer’s market conditions exist virtually across the board, sellers of recreational properties from coast-to-coast are clearly content to wait out the storm,” says Polzler. “They are in no hurry to unload their product. Many have held on to their properties for generations – they’re fully-owned yet underutilized, which has prompted some aging owners to list them for sale.”

The report also found that while lowball offers are on the rise, very few meet with success. Through tough negotiations with multiple sign backs, purchasers who are serious tend to find out the hard way that sellers are serious too. As a result, the sales-to-list ratio remains relatively high in most recreational property markets across the country.

“The prospect of greater stability down the road is creating cautious optimism in the marketplace,” says Ash. “Purchasers are seeking to buy quality product, whether it be situated on lakes, rivers, or ponds, before values start to once-again edge up.”

Highlights:
• Supply is adequate in most markets, but heated activity in the lower-end has resulted in tight inventory levels for entry-level product in 18 per cent of markets including: Bancroft, Combermere, Honey Harbour/Port Severn, West Kawarthas, Orillia, Flesherton, North Saskatchewan, and Salt Spring Island.
• Older cottage owners, many who own their properties outright, are selling to younger purchasers with families.
• Some American cottage owners in Canada are taking advantage of the stronger dollar to cash out of the market.
• American purchasers have largely fallen off the radar, with some exceptions: Lake Winnipeg, Shediac Bay, and Sault Ste. Marie.
• Pent-up demand is a factor in the marketplace, as those purchasers who had intended on buying recreational properties in the latter half of 2008 deferred their purchases to 2009.
• Older Canadians continue to seek secondary homes in warmer parts of the U.S such as Florida, Arizona, California, and Nevada.
• Generation X purchasers are prepared to spend their hard-earned dollars on recreational properties, but at the end of the day, they want to know that they’ve negotiated the best deal possible.
• The upper-end has somewhat softened in markets across the country.

To download the full report, click on this link: FULL REPORT

Have a specific question about the real estate market or want to learn more about Oakville? I would love to hear from you. I can be reached at lindsay@remaxaboutowne.com or 905.338.9000.

Regards,