House Archives - Amora Escapes https://amoraescapes.com/tag/house/ Property 101 Sat, 17 Jun 2023 08:57:30 +0000 en-US hourly 1 https://amoraescapes.com/wp-content/uploads/2022/11/Amora-Escapes-Favico.png House Archives - Amora Escapes https://amoraescapes.com/tag/house/ 32 32 Luxembourg’s Property Prices are Finally Going Down https://amoraescapes.com/2023/06/22/luxembourgs-property-prices-are-finally-going-down/ Thu, 22 Jun 2023 03:39:55 +0000 https://amoraescapes.com/?p=4376 Housing prices in Luxembourg have made a sharp downturn in the second quarter of 2023…

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Housing prices in Luxembourg have made a sharp downturn in the second quarter of 2023 after the Central Bank of Luxembourg announced an increase in interest rates for mortgage and consumer loans to 3.9%.

The data came in a report by atHome.lu, one of the largest real estate websites in the country, and shows a serious trend reversal in one of Europe’s most unaffordable housing markets.

 

As the growth rate of the price of property started slowing at the end of 2022 and turned into negative digits this year, the local housing market started experiencing a boom in prices for rental.

Although this trend may be related to the Grand Duchy’s reforms from October, most analysts point to interest rates as the driver of the shift.

Luxembourg has one of the highest housing prices in the European Union – a condition that has created a lot of problems for the small landlocked country. One of the issues is that almost half of Luxembourgish workers actually commute from France, Belgium and Germany every day.

This situation has created so-called housing refugees, as a lot of these workers are Luxembourgish nationals, who have been priced out of their home country.  In turn, however, this movement of people looking for housing has caused a spillover effect in border regions of neighbouring countries.

Purchasing prices

The report shows that, in the second quarter of 2023, average apartment prices have gone down by 7.3% while with houses that number is 5.5%. This followed a growth slowdown that started in the middle of 2022, as the war in Ukraine intensified and the EU started spiralling into a cost of living and energy crisis.

However, the Luxembourgish housing market came down from a record high, as property prices frequently grew in double-digit numbers over the pandemic years. In the first quarter of 2022, apartments and houses saw more than a 10% rise in value. The trend only turned at the start of 2023.

In the West region, the drop was the most dramatic, as apartments devalued by 14.1%, while houses dropped by 5.6%. In the central region, holding the city of Luxembourg, apartment prices fell by 4.2%, while the price of houses dropped by 13.9% and the average price came to around 1,041 million.

Rental prices

In contrast, average rent prices have continued to rise steadily through the last two years, starting off at a modest 2.7% for apartments and 2.4% for houses at the beginning of 2022. That number changed dramatically in the latter half of last year, which saw a 14.2% and 12.8% increase in the third and fourth quarters.

2023 has not managed to bring much relief for renters as the first trimester with atHome.lu registering an 8.3% increase for apartments and 11.8% for houses. The average rent in central Luxembourg is now a staggering 2,118 euros, closely matched by the rents in the Western region sitting at 2,005.

Source: The Mayor

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Redevelopment of Turf Club Will Support Plans to Turn Woodlands into Regional Hub: Property Analysts https://amoraescapes.com/2023/06/19/redevelopment-of-turf-club-will-support-plans-to-turn-woodlands-into-regional-hub-property-analysts/ Mon, 19 Jun 2023 03:15:02 +0000 https://amoraescapes.com/?p=4370 Building housing at the Singapore Turf Club site in Kranji will support the development of…

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Building housing at the Singapore Turf Club site in Kranji will support the development of Woodlands Regional Centre as Singapore’s largest northern economic hub, said property analysts on Monday.

The Government had announced that the site now occupied by the club will be returned to the state by March 2027, and be developed for housing – including public flats – and other uses such as leisure and recreation.

PropNex Realty chief executive Ismail Gafoor said housing developments on the site of around 120ha will enlarge the population catchment for commercial developments in the area, and provide more workers for businesses and industries in areas such as Lim Chu Kang and Senoko.

At a press conference on Monday, Second Minister for National Development and Finance Indranee Rajah said the site’s redevelopment is “in line with a broader plan to develop the northern region”.

Citing greenery in nearby areas such as Mandai and Sungei Buloh, she said planners will “plan in the context of the place”.

“As we develop the northern area, we want it to have a unique identity, a unique appeal and defining characteristics of its own,” she said.

Diagonally across the turf club’s site will be the Agri-Food Innovation Park, part of previously announced plans to rejuvenate the Sungei Kadut industrial estate, as well as introduce new spaces for business, industry, and research and development in the Woodlands area.

Farther away, the Lim Chu Kang area will be redeveloped into a high-tech agri-food cluster.

Mr Gafoor and other analysts noted that the turf club site – located next to Kranji MRT station on the North-South Line – is currently lacking in amenities, which are necessary to make the area suitable for homes.

The Government must provide retail, food and beverage, and childcare options, he said, while Dr Lee Nai Jia, PropertyGuru Group’s head of real estate intelligence, data and software solutions, said schools would also be needed to provide for young families moving into the area.

At 124ha, the area freed by the club’s closure is larger than newer developments such as the 93ha Bidadari estate, which was previously reported to comprise about 11,000 homes, but much smaller than the 700ha Tengah town, which will yield about 42,000 homes.

Huttons Asia senior director of research Lee Sze Teck noted that much of the land to the north of the racecourse site is zoned for industrial use.

Planners will likely want to insert a buffer between these industrial sites and future homes, and non-residential buildings could be used for this purpose, he said.

On developing an identity for the precinct, Mr Lee suggested that planners look to the turf club’s history in drawing up plans, and take inspiration from the nearby Kranji War Memorial.

Mr Tan See Nin, the Urban Redevelopment Authority’s senior director for physical planning, said at the press conference that master planning for the site has only just begun, and will take another two to three years.

He said the authorities will carry out a stock-take of the structures, buildings and vegetation on site, which will inform development plans.

“We won’t rule out the possibility of keeping some structures if it makes sense to keep them or repurpose them for other uses,” Mr Tan added.

As for the location of future homes, ERA Realty key executive officer Eugene Lim said these could be inserted in the western and eastern areas of the site, as an extension of existing housing types nearby.

For instance, plots for low-rise condominiums or landed homes could be inserted in the western area, said Mr Lim, referencing existing freehold landed properties near the area.

Flats could be built on the eastern end of the site, he said, highlighting a cluster of Housing Board flats in Woodlands Street 41 that is separated from the site of the racecourse by the Bukit Timah Expressway.

The authorities had also said on Monday that leisure and recreational uses are being studied for the site.

PropertyGuru’s Dr Lee said that with Mandai Wildlife Reserve still undergoing expansion – a new rainforest-themed park and a resort are in the works – hotels could be added to the turf club site to cater to visitors to the zoo and other parks.

Source: The Straits Times

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Council Advances $970M Property Tax for Affordable Housing in Seattle https://amoraescapes.com/2023/06/14/council-advances-970m-property-tax-for-affordable-housing-in-seattle/ Wed, 14 Jun 2023 01:16:36 +0000 https://amoraescapes.com/?p=4352 The Seattle City Council is close to sending voters a $970 million property tax levy, which would…

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The Seattle City Council is close to sending voters a $970 million property tax levy, which would build affordable housing, boost pay for human services workers and fund affordable homeownership programs.

The measure would renew and triple the existing Seattle Housing Levy, which expires this year. City leaders say expanding affordable housing is crucial as the costs of living in the city continue to climb and more people experience homelessness.

The levy will allow Seattle to “continue to address the most pressing crisis we see playing out every day across our city and our region,” said Councilmember Teresa Mosqueda.

Mayor Bruce Harrell, backed by affordable housing advocates, proposed tripling the levy to $970 million in March. After two months of discussions, the Seattle City Council green-lighted the total levy amount and high-level spending plans with a unanimous 8-0 committee vote Wednesday. (Council President Debora Juarez was absent.) The council will take a final vote Tuesday to send the measure to the ballot.

The new seven-year levy would charge 45 cents per $1,000 of assessed home value, costing about $390 per year on the median $866,000 Seattle home, or a $260 increase from the current levy rate.

Councilmember Alex Pedersen raised concerns about the cost of raising the total levy amount to a record high. Pedersen said he would reserve his final decision for Tuesday, but was “feeling more optimistic” about the proposal.

The levy will direct $707 million over seven years to construction and preservation of rental housing affordable to people making 60% of area median income or less ($74,000 a year for a family of three). Nearly two-thirds of that funding will pay for housing affordable to the lowest-income people making 30% of area median income or less ($37,000 for a family of three).

The city aims to help fund construction of 2,881 new affordable rental apartments and 277 new affordable homes for sale, plus improvements in 635 existing affordable apartments. Despite tripling the levy, the number of new homes built will not triple because of rising construction costs.

The levy also includes $122 million for operations, maintenance and services in affordable housing; $51 million for affordable homeownership programs, including construction of new housing, home-repair grants, foreclosure prevention and loans for homebuyers; $30 million for assistance for low-income tenants; and $60 million for administration.

Some operations funds will help boost wages for workers employed at certain subsidized housing locations. Workers say low wages make it difficult to hire and keep workers on the frontlines of the city’s homelessness response.

The city would pair money from the levy with funds from the city’s JumpStart payroll tax, then distribute that funding to nonprofits based on the number of apartments they operate. The Office of Housing plans to track worker turnover and wages at organizations receiving those funds.

The city will also spend up to $30 million on short-term loans to allow nonprofits to buy existing apartment buildings. (That funding would come from levy funds not yet spent for other programs, then be repaid.)

Councilmember Lisa Herbold argued city agencies should focus on acquiring existing buildings and keeping them affordable, given the climbing costs and timelines of building new housing.

Council members tweaked a resolution accompanying the levy, including requesting that the Office of Housing prioritize family-sized units, focus homeownership funds on communities that face displacement or discrimination in the past, and seek broad geographic distribution of affordable housing, a struggle for the city’s housing programs.

The council is likely to give final approval to the measure Tuesday. Voters would weigh in during the Nov. 7 election, when seven council seats will also be on the ballot.

Source: Seattle Times

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Birmingham is Leading The Way for Property Sales in The UK https://amoraescapes.com/2023/06/12/birmingham-is-leading-the-way-for-property-sales-in-the-uk/ Mon, 12 Jun 2023 23:50:34 +0000 https://amoraescapes.com/?p=4348 The Birmingham property market is driving forwards after it recorded the highest number of property…

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The Birmingham property market is driving forwards after it recorded the highest number of property sales in the UK in the first quarter of this year.

Across the UK as a whole, property sales were down during the first three months of this year compared with the first quarter of 2022. According to new data revealed by Nested, using Land Registry figures, a total of 76,489 sales completed during the period – down by 58% year-on-year.

While this was not wholly unexpected, being a result of both the turbulence at the end of 2022 slowing the market, as well as the rush to buy during the previous period thanks to the government’s stamp duty holiday which created a surge of transactions much higher than previous years.

However, not all areas have experienced the same decline, with the housing markets in certain local authorities in England and Wales bucking the trend and showing a much stronger level of performance and market activity. Birmingham recorded a standout 1,070 completions, making it the leading location in the UK.

Birmingham as a top investment location

Strong transaction activity indicates that not only are there plenty of properties coming to market, meaning sellers have confidence, but also that buyer demand and follow-through is high. Birmingham is benefitting from a high level of regeneration, which is bringing plenty of new homes to the market to meet the demand.

Birmingham was also recently listed as one of the UK cities that was experiencing higher than expected house price rises, according to a report from Purplebricks. Property prices increased by 1.4% in March in Birmingham, above the UK average, and the average value there is now £279,920.

On an annual basis, Birmingham also recorded the second strongest house price growth in the UK in Zoopla’s index for March, with a 6.1% average year-on-year price rise. This was followed by Manchester with a 5.8% increase, and Leeds with 5.4% growth over the past year.

Vincent Courtney, chief sales officer at Purplebricks, said: “We’d always expect prices to rise to a degree in March but the property markets in Birmingham and Leeds not only are out-performing the wider Northern Powerhouse, they’re outperforming our expectations.”

Uplift is expected

After Birmingham, the research from Nested lists the top five locations for property transactions between January and March in England and Wales as follows: Leeds (1,043), North Yorkshire (938), Cornwall (920) and Somerset (876).

The parts of the country that have seen the biggest falls in completed property transactions during the period are North West Leicestershire, with a 73% year-on-year fall, followed by Harborough (-70%), Anglesey (-70%), North Warwickshire (-69%) and Melton (-69%).

However, while each part of the country experienced a drop in housing market activity, there are positive signs on the horizon, as this year got off to a busy start in terms of buyer levels and an uplift in properties coming to the market. This means activity is expected to rise again over the course of 2023.

Alice Bullard, managing director at Nested, said of the findings: “The higher cost of living, increasing interest rates, a disastrous mini-budget and the resulting turbulence seen across the mortgage sector all had a significant impact on buyer demand levels during the closing stages of last year.

“While 2022 may seem a long way away now, what we’re currently seeing is the knock-on effect from this reduction in market activity, with the lower level of sales agreed now reaching completion.

“The good news is that the industry has widely reported an uplift in activity almost immediately in 2023 and so while we’re yet to see this materialise in terms of actual homes sold, we can expect to see an uplift over the coming months as these sales finally reach the finish line.”

Source: Buy Association

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Saskatoon Property Taxes Could See 13 Per Cent Hike as City Confronts $75M Revenue Gap https://amoraescapes.com/2023/06/11/saskatoon-property-taxes-could-see-13-per-cent-hike-as-city-confronts-75m-revenue-gap/ Sun, 11 Jun 2023 08:23:28 +0000 https://amoraescapes.com/?p=4345   Significant property tax hikes may be needed to cover a funding shortfall, according to…

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Significant property tax hikes may be needed to cover a funding shortfall, according to City of Saskatoon administration.

In 2024, the city is set to face a $52.4 million funding gap. The next year, in 2025, a $23.2 million revenue gap is projected.

Clae Hack, the city’s chief financial officer, largely attributed the gap to inflation.

“Nobody’s happy presenting these numbers. Administration’s not happy. We don’t expect residents, businesses or city council to be happy with where the numbers are at right now,” Hack told reporters at city hall, in front of a screen projecting the city’s gloomy financial figures.

Hack said “it’s pretty unprecedented” for the city to see this high of a funding gap.

“It’s probably close to double where we’re typically starting these conversations,” Hack said.

To make up the money, Hack said “everything is on the table” — including raising property taxes and adjusting city service levels.

During the media briefing Wednesday morning,  Hack presented a chart showing potential 2024 tax increases and how much money the city would need to slash from its budget to acheive them.

At the lower end of the spectrum, the city would need to find nearly $35.5 million in savings to hold property tax increases to six per cent.

The highest number Hack floated was a 13 per cent increase — which would still require almost $15.7 million in cuts.

“It’s difficult to say where the property tax will end up,” Hack said.

If the revenue gap isn’t confronted, the city would be faced with a 18.56 per cent property tax impact for 2024 and 6.95 per cent the following year.

Hack said administration is “not recommending anything” at this time, but rather simply presenting the numbers.

It will be up to city council to make the tough decisions about how to address the funding shortfall.

Hack used fire trucks as an example of how the city is battling inflationary pressure. A fire truck costs about $1.5M today, but two years ago it was $900,000.

He also pointed to certain projects putting pressure on the budgets — such as a spike to snow clearing costs, extending Saskatoon Transit services and the opening of Recovery Park.

Recovery Park is a waste diversion facility, next to the landfill, that will accept materials such as appliances, construction and demolition waste, and rigid plastics.

Budget meetings with city councillors and committees are scheduled throughout the summer.

Source: CTV News

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Cottage Country Braces for The Invasion of The Floating Home https://amoraescapes.com/2023/06/02/cottage-country-braces-for-the-invasion-of-the-floating-home/ Fri, 02 Jun 2023 02:36:58 +0000 https://amoraescapes.com/?p=4217 Longtime cottagers call them ‘water squatters’ and say they will transform their high-priced lakes Floating…

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Longtime cottagers call them ‘water squatters’ and say they will transform their high-priced lakes

Article content

“We build dreams,” Joe Nimens says on his website, and it was always Nimens’ dream to be in Port Severn on the shores of Georgian Bay, about a two-hour drive north of Toronto, and where he’d spent his summers as a youth at a nearby family cottage. For 20 years, he’d been “thinking about this idea of a kind of four-season floating home,” and after two decades of thinking and planning and drawing and calculating, he built his prototype, Cagey Vixen, named for the “initial description I had in my mind” upon meeting his girlfriend, Erin Morano, 10 years ago.

Cagey Vixen emerged on the waters of the Trent-Severn system more than two years ago, two repurposed shipping containers 24-metres long and six-metres wide and boasting “all the comforts of a modern home.” Nimens, 50, had been building steel structures and docks and piers, “mostly steel things,” really, for most of his life. “And now we live in a big steel box. Go figure.”That steel box floats. Whether it’s a “vessel” or a “house” is at the heart of a growing controversy that’s touched a raw nerve in Ontario cottage country and beyond. Lakefront property owners and cottage associations say those floating structures are water squatters that could threaten the environment and the “unique character” of prime cottage country like Muskoka, a land of lakes and rivers, Precambrian rock and vast forests of green studded with multimillion-dollar vacation homes.

While public lands and waterways are available for all to enjoy, critics say these floating dwelling units have taken advantage of a Transport Canada loophole that has deemed them “vessels,” allowing owners to drop anchor on crown land on any navigable waterway. Cottage associations are concerned wastewater could end up in their lakes and rivers, that the “floating homes” are dodging municipal bylaws and property taxes, and that they’re “non-conforming,” meaning aesthetically unappealing. The latest issue of Cottage Life looks at the controversy: “Is it a vessel? Or a float home?”

 

People in the area couldn’t believe this contraption

PETER KOETSIER

One’s view of the water “may or may not be blocked by these ugly sea cans,” said Mike Burkett, mayor of the Township of Severn, who would very much like Transport Canada to be more forthcoming and explain to municipalities its rationale “as to how did they ever label these a vessel, when they are not? They’re a floating house on water.”

The day Nimens first floated his prototype out onto the water, phones in the Township of Georgian Bay started ringing. “People in the area couldn’t believe this contraption,” said the township’s mayor, Peter Koetsier, who, on Friday morning, was heading into a virtual meeting about floating cottages. “People thought, innocently, it would be deemed illegal, and removed from the waters within a day,” Koetsier said. “Here we are, a couple of years later.”
Transport Canada’s definition of a vessel under the Canada Shipping Act 2001 is all encompassing — basically, anything that floats. Vessel is defined as a boat, ship or craft “capable of being used solely or partly for navigation” and without regard “to method or lack of propulsion.”

Nimens’ floating home made from four shipping containers is moved by tugboat from spot to spot. (Photo courtsey Live on the Bay)
Nimens’ floating home made from four shipping containers is moved by tugboat from spot to spot. (Photo courtsey Live on the Bay)

When Nimens wants to move, he latches his shipping containers together (there are four in total, two for a garage and workshop) and attaches them to a tugboat, “which actually pushes, as most tugs do.” The rig moves at about five kilometres per hour. Upon arrival at the chosen destination, “spuds” are dropped, steel spikes that lodge into the lake floor. “When we want to move, we lift the spuds (using solar-powered electric winches), cruise to our next stop, drop the spuds and enjoy the scenery,” Nimens said. He and Morano have so far kept mostly to Gloucester Pool and Little Lake, near Port Severn. “Sometimes we do this whole move (from one spot to the next) while having our morning coffee,” if the transit is less than one kilometre in distance. Their dwelling has been described as Muskoka-style, “charming shabby chic.” It’s also engineered to freeze into lake ice. The couple spent the winter at a marina in a small bay in Port Severn. “The best part is that Erin and I can sit over dinner tonight and decide whether we’re going to leave the marina this weekend or next.”

Sometimes we do this whole move while having our morning coffee,

JOE NIMENS

Since his inaugural launch, Nimens has turned his dream into a business venture. His company, Live on the Bay, is struggling to keep up with demand. Nimens has four floating homes currently under construction, including one for his first customer, Ian Wilson, now also his director of marketing. “We’ve got doctors, we’ve got lawyers, we’ve got accountants talking to us, and people working in factories that are looking for affordable accommodations,” Wilson said.

 

Nimens recently listed a two-bedroom, two-bathroom floor plan with a rooftop patio for $195,000 on Kijiji. “It is a floating Party! Or rent it out on Airbnb … where else can you spend $195K and start renting … and renting a really cool floating home,” read the ad. His $1.4 million “floating off grid home or cottage vessel” comes with four bedrooms, three full bathrooms, 2,000 square feet of interior space, 1,700 of exterior entertaining space including a two-car garage, rec room and den. All models are engineered to be beached or moored on or against, hard rock shorelines, and options include a self-contained septic system Wilson said they found “from a guy out in B.C.” who has been selling them for the last 20 years to Fisheries and Oceans. “It’s an actual septic system with a five-year clean out, far better than anything you’re going to have on a typical boat.” When Cagey Vixen was crafted, “the best solution we could find was an incinerating toilet,” Nimens said. “We’ve come up with something better.” The dwellings also feature rooftop solar panels “so you can be 100 per cent off grid.”

Some cottagers, who have spent millions in real estate costs for their precious lakefront views, would prefer they were not just off grid, but off away, altogether.“If this man is allowed to avoid lots of provincial and municipal rules and regs by simply saying he’s a ‘vessel’, we’re going to get more and more of these contraptions floating all over our various lakes,” Koetsier said. “We need to make it a political thing in Ottawa.” Organizers have a number of MPs on board, he said, and they’re working to get more to express their concerns to Transportation Minister Omar Alghabra that, “this is not acceptable.”

 

There are hundreds of floating homes around the world, in Holland, in Victoria Harbour, or Bluffer’s Park Marina in Scarborough, where they sit moored to a dock. They’re connected to shore sewar and water services, Koetsier said. “They pay taxes; they do have to pass certain safety and building code regulations. It’s not like there isn’t precedents around the world.”

 

Floating homes in Bluffers Park, Scarborough, Ontario.
Floating homes in Bluffers Park, Scarborough, Ontario.

Due to the increase in the number and types of “structures and things” on Ontario’s waters, the province’s Ministry of Natural Resources and Forestry sought input from the public about “floating accommodations,” and proposed amendments to a Public Lands Act regulation related to camping on water over public land. However, the ministry recently walked back several proposed changes. Gone are proposals that would have reduced the number of days that a person could stay in one location from 21 to seven days, increasing the distance that a “camping unit” must move to different location from 100 metres to one kilometre, and prohibiting camping on water within 300 metres of a developed shoreline.

 

The boating industry worried it would restrict their ability to cruise and anchor their yachts, even though cruising boats weren’t the target, Koetsier said.

No one is trying to ban float homes or float cottages, said Claude Ricks, co-chair of the Gloucester Pool Cottagers’ Association in Muskoka Lakes District. “It’s about finding a place for them,” like Bluffer’s Park, where the dwellings are essentially permanently moored in the marina.  “You can’t put a motor on it, you can’t go navigate Lake Ontario, you’ve got to park and stay there,” Ricks said.“All we want is Transport Canada leadership to re-classify it as a floating home. We essentially want them to do whatever they need to do to save face and change this vessel to a floating home,” Ricks said.

“This isn’t about us trying to stop some guy from floating around in our lake. It’s a much bigger issue.”

Ricks and Cheryl Elliot-Fraser, president of the Gloucester Pool Cottagers’ Association, have launched a letter-writing campaign and petitions; they’re asking municipalities to look at creating resolutions “that basically say this is an untenable situation, you need to change the definition from vessel to float home, because we can’t manage it otherwise,” and are reaching out to MPs “to go cajole, knock on the door, whatever they do in Ottawa to tell (transportation minister Alghabra), ‘this is not kid stuff, their constituents are concerned. It’s a problem. You need to deal with it.’”

Peter Kelley, mayor of Muskoka Lakes Township, said putting an accommodation on the water is an understandable response to soaring cottage and land prices. A huge part of the population will never have the opportunity to own waterfront property.However, “we’ve tried hard through our official plan and our zoning bylaws and our bylaws, generally, to preserve the character of Muskoka,” he said.

It’s not about regulating architectural design, or colour. The lakes have everything from the most recent glass-cube design to 135-year-old cottages, he said. “We’re talking about (being) setback from the waterfront. We’re talking about not disguising it but leaving a strong canopy of trees around the built form so that it isn’t the dominant thing you see in the landscape.

“These things (floating homes) will be naked, as it were — dropped wherever in bays and channels.”They could also become navigational hazards if not carefully maneuvered and anchored.

Nimens’ prototype was to prove a concept, said Wilson, his director of marketing and sales. “Is it the most beautiful thing in the world? Well, beauty is in the eye of the beholder.

 

Just because it’s different doesn’t make it wrong. It’s still a boat

“Joe loves what he’s got here. What we’re building now is far more aesthetically pleasing,” Wilson said.

 

“Just because it’s different doesn’t make it wrong. It’s still a boat,” he added.

 

“The thing we hear all the time, ‘you’re going to park in front of my cottage. You’re going to block my lovely view,’” Wilson said. “Nobody in their right mind wants to park in front of somebody’s cottage and ruin their view. I would much rather take my vessel out, find a nice, secluded place where it’s me, myself and I, and have a wonderful weekend.”

Some customers want to be in Lake Eerie, he said. “Some people want to be in Lake Ontario. It’s not like there’s going to be three or four, or 10 or 20 of them in one spot. Nobody’s interested in that.”To his detractors, Nimens responds, “’Why don’t you come and see us, and talk to us and tell us what your concerns are, and learn about what we’re doing, compared to what you think we might be doing?’”

All waterways are under federal jurisdiction. “Townships have NO waters. Period,” he wrote in a follow-up email.

The whole purpose is to enjoy “what nature has built for us,” Nimens said. “You pick an island you like; you park your front deck at that island, you put these spuds down and then you step off the deck, onto the island.

“And then next week, you look across the bay and see another island you want to visit. Up go the spuds, and you sail away to the next place.” Or, at least tugged to the next place.

Source: National Post

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Sellers are ‘Back in The Driver’s Seat’ in Toronto’s Housing Market, RBC Says https://amoraescapes.com/2023/06/01/sellers-are-back-in-the-drivers-seat-in-torontos-housing-market-rbc-says/ Thu, 01 Jun 2023 02:22:07 +0000 https://amoraescapes.com/?p=4214 A housing correction that RBC once called ‘historic’ appears to have run its course and sellers…

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A housing correction that RBC once called ‘historic’ appears to have run its course and sellers are now “back in the driver’s seat in most major markets,” a new report from the bank suggests.

In a report published this week, RBC Senior Economist Robert Hogue said that “spring 2023 increasingly looks like the turnaround point for Canada’s housing market after a year-long slump,” with home sales across Canada rising 11.3 per cent month-over-month in April.

He said that the average benchmark price also increased in about three-quarters of all markets tracked by the bank last month, including in Toronto where prices rose 2.4 per cent to an average of $1.1 million.

“Earlier tentative signs of a turnaround in Toronto and Vancouver were confirmed in a big way in April,” the report notes. “Home resales jumped 27% and 25% m/m, respectively, rolling back roughly one-quarter of the correction in one go. It appears buyers are quickly regaining confidence in both markets now that the Bank of Canada has paused its aggressive rate hike campaign.”

RBC had said as recently as December that the GTA had become a buyer’s market, despite “demand-supply conditions looking reasonably balanced nationwide.”

That, however, appears to have changed.

The average price of a Toronto home was still down 7.8 per cent year-over-year in April, according to the latest data from the Toronto Regional Real Estate Board. But prices have now risen in two consecutive months.

“April’s widespread vigour is a surprise to us. While we did expect the market to reach its cyclical bottom this spring, we thought it would take a while for the heat to return. Our view was—and remains—that the significant loss of affordability in the past year would keep buyers timid for some time,” Hogue wrote. “First-time buyers, in particular, continue to face major hurdles. Perhaps soaring immigration and a boiling hot rental market are becoming the primary driving forces fueling homebuyer demand. In which case, we could see prices extending April’s gains—possibly materially.”

The average price of a Toronto home across all property types peaked at $1,334,062 in February 2022 before dropping to a recent low of $1,037,542 amid an aggressive campaign to push up the cost of borrowing.

The average price of a GTA home in April was up about 11 per cent from the market’s low point ($1,153,269).

Source: CP24

 

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Could Low Interest Rates be Hurting Australia’s First Home Buyers? https://amoraescapes.com/2023/05/31/could-low-interest-rates-be-hurting-australias-first-home-buyers/ Wed, 31 May 2023 13:18:00 +0000 https://amoraescapes.com/?p=4212 New research has found that extended periods of low interest rates have been the death…

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New research has found that extended periods of low interest rates have been the death knell for first home buyers.

The report, Financing first home ownership: modelling policy impacts at market and individual levels, was undertaken for the Australian Housing and Urban Research Institute (AHURI) by researchers from Curtin University, University of Sydney, and RMIT University.

Cheaper mortgages but house prices doubled

Researchers found that mortgages fell by almost five percentage points across a 25 year period between 1994 and 2017. During the same span of time, house prices grew by more than double.

The residential price growth causes were attributed to factors such as housing availability, wages, and population growth, which accounted for two thirds of the rise. Almost one third of house price growth was due to lower interest rates, according to the research.

“Falling interest rates may seem appealing to first home buyers, but in real terms, it only increases competition and pushes prices higher, sometimes out of reach for those trying to get into the market for the first time.”

Rachel Ong ViforJ, lead author for the research and John Curtin Distinguished Professor from Curtin University’s School of Accounting, Economics, and Finance

Barriers to owning the first home

Savings were one of the barriers for first home buyers, with the study finding 84% had insufficient savings for a home deposit.

Meeting mortgage repayment requirements was another barrier for many at 71%.

An overwhelming majority were unable to buy their first home, the study found nearly nine in ten were locked out due to borrowing constraints.

“The research also notes that the housing market could see the return of young or lower income households again if a persistent rise in interest rates leads to a decline in house prices.”

AHURI

Unfortunately, while interest rates have been on a sharp rise over the past few months, and at least one or two more are still widely expected, the housing market seems to have turned a corner.

Data from across the industry is pointing towards house price growth, and while not consistent across the country, the national figures have seen there are several indicators which point towards a wider market shift towards growing prices.

Shared equity or mortgage guarantee?

Given the challenges first home buyers face in the current market, the study also modelled two first home buyer assistance programs to support home buyers on lower incomes: a mortgage guarantee scheme according to the design of the Home Guarantee scheme and a shared equity scheme modelled after the Help to Buy program.

The research found a mortgage guarantee scheme could assist 22% of qualifying first home buyers, while a shared equity scheme would assist 41% of eligible home buyers, a quarter of which would be in the bottom 20% of Australia’s socio-economic status areas.

“Our research indicates that while both schemes will help some households into first home ownership, the Help to Buy shared equity scheme is likely to be more accessible to people on lower incomes than the Home Guarantee scheme,” said Professor Ong ViforJ.

“It’s important to understand that while these schemes would support people living in lower socio-economic status areas, they would likely also boost demand for housing in these entry-level markets.

“It’s imperative the introduction of any such schemes is matched by an increase in the supply of local housing in order to avoid fuelling further house price rises.”

Source: The Property Tribune

 

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Owners of Australian Property Worth $33 Million Refuse to Sell https://amoraescapes.com/2023/05/27/owners-of-australian-property-worth-33-million-refuse-to-sell/ Sat, 27 May 2023 02:03:10 +0000 https://amoraescapes.com/?p=4203 An Australian home sits alone on 5 acres of land and is estimated to be…

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An Australian home sits alone on 5 acres of land and is estimated to be worth 50 million Australian dollars, or $33 million, Australia’s 7News reported.

The property’s owners, the Zammits, have refused to sell their house, forcing developers to build around them over the past few years, 7News said.

The home is situated at The Ponds, about a 40-minute drive from the center of Sydney.

A time-lapse video in a tweet shows the castlelike house at a standstill as rows and rows of two-story houses are built around the land over the years, which makes the lawn stick out, as it looks like a park in the suburban sprawl.

“The fact that most people sold out years and years ago, these guys have held on, all credit to them,” Taylor Bredin, a real-estate agent, told 7News.

He estimated that the land was big enough for 50 3,200-square-foot houses and that each would be worth 1 million Australian dollars, or almost $700,000.

Diane Zammit, the mother in the Zammit family, told the Daily Mail Australia that the neighborhood used to be “farmland dotted with little red-brick homes and cottages” when her family moved in 17 years ago.

The 5-acre property would have been worth about $3 million 11 years ago, based on the prices of neighboring houses in 2012, the Daily Mail Australia reported.

Some neighbors are glad that the family declined developers’ offers and chose to stay.

“I’m very happy they’ve refused to sell — it means we have a cul-de-sac, which is much safer for our kids — and their big lawn next to us makes it feel like we’ve got so much space,” one told the Daily Mail Australia.

 

Source: INSIDER

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Housing Prices Gain Pace as Auction Listings Increase Across Australia’s Capital Cities https://amoraescapes.com/2023/05/24/housing-prices-gain-pace-as-auction-listings-increase-across-australias-capital-cities/ Wed, 24 May 2023 01:44:44 +0000 https://amoraescapes.com/?p=4197 CoreLogic researcher Tim Lawless says current spike in migration countering effect of Reserve Bank’s rate…

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CoreLogic researcher Tim Lawless says current spike in migration countering effect of Reserve Bank’s rate hike earlier this month

Property price gains are picking up momentum in major cities as the number of homes listed for sale starts to lift from “extraordinary low levels”, data group CoreLogic says.

Up to the middle of May, home values in Sydney had risen 1.4% on a rolling four-week average from 1.3% at the end of April. For Brisbane, prices increased 1.1%, up from 0.3%. Perth values were up 1%, Adelaide 0.6% and Melbourne’s home prices rose 0.5%.

Tim Lawless, CoreLogic’s research director, said the spurt in population – with 400,000 migrants expected in the year to June alone – countered the effects of the Reserve Bank lifting its cash rate at the start of May for an 11th time in a year.

“It looks like at the moment the imbalance between supply and demand is enough to offset high interest rates,” Lawless said. “Whether or not that can be sustained is yet to be seen. If we see another rate hike, for example, you’d have to think that’s going to quell some of this exuberance in the marketplace.”

The revival of the housing market complicates the RBA’s task to rein in inflation without tanking the economy. Rising rents add directly to consumer price rises, while a lift in property prices boosts spending because many people feel better off.

“While the significant decline in housing prices over the preceding year had constrained consumption spending, housing prices had recently stabilised and some increases had been recorded,” the RBA said, according to the minutes from May’s meeting. “In recognition of this, the forecast for consumption growth by mid-2025 had been revised a little higher.”

Similarly, the last Westpac-Melbourne Institute monthly survey of consumer sentiment showed confidence falling sharply after the rate rise and a “mildly disappointing budget”. The key exception, though, was the housing-related gauge.

“The ‘time to buy a dwelling’ index lifted 7.3% in May, extending the 8.2% gain in April,” Westpac said. At 76.3, the index is back in the narrow 75-80 range typical before interest rates began to rise, although it remains about 40% below its most recent peak in November 2020.

Major city auctions will near 2,000 this week, or about 18% more than this time last year. Still, the measure remains about a quarter below the five-year average, and it will be a “real test” of the recovery to see auction activity rebound, Lawless said.

“If confidence in the housing sector is improving, we might start to see vendors becoming more active,” he said. “But we’re not really seeing any evidence of that happening at the moment.”

Rents, meanwhile, are continue to advance at an annual pace of about 10% nationally, although renters “are approaching the ceiling” of what they are able to pay. With real incomes still shrinking and credit hard to come by for renters to pay more rent, expect households to increase in size. Homelessness and “couch-surfing” will also likely rise, Lawless said.

“People who can afford it will be looking to escape this rental situation,” he said, which will add to buying demand for property.

Supply, meanwhile, “is going to be even worse” for at least another year or two before new housing starts picking up.

Source: The Guardian

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