Calmer times have arrived to Toronto housing market

All Toronto realtors and homeowners can be happy about the numbers concerning the August development on the market. The Toronto real estate board published their monthly report showing that the market is still very active, however slowing down a bit after the turbulent times in the previous three months. For example the number of items sold in August was somewhat lower than in July, but much better compared to August 2008.

The development concerning all the other key indicators is quite similar - figures are generally a bit smaller than in June or July, but higher than for the same period last year. For more details, why don't you read the who GTA real estate article.

Is Canada the preferred choice for real estate investors or is the USA?

Real estate properties have interesting discounts available now the boom period prices have been regulated. This is what real estate investors are always anticipating. To pick up a bargain. What are the dissimilarities between the rivals?

The USA real estate prices are not yet seeing recovery, whereas in Canada the MLS have plenty of real estate and prices are beginning to rise. As prices are lesser in the USA wouldn't you think this was the prime place to invest? If you have additional money to invest, professionals still say Canada is the top investment.

Global Property Guide professionals still warn of rushing into the US market and suggest Canada as a more practical option. Even though prices seem to be levelling off in the USA, experts expect that there may be more busts ahead. Profits are moderate to poor, the tax system is perplexing and the rental market heavily pro tenant. The long term investment grading chart only awards the USA 2 stars out of 5.

Although Canada is not the top market in the world (top rated is Uruguay, followed by other South American markets), we have been given 3 stars, primarily for good yields, secure economy, a better tax system and a strong rental market for immigrants (Canada is represented by Toronto and the USA is represented by New York).

Buying real estate in Canada has less expensive fees joined with it. Example property (resale $250 000 condo in major city, cash paid) transaction costs (inclusive of registration costs, real estate agent charges, legal charges and sales and transfer taxes) count for 6.96% of the sale price in Canada, while it is 9.07% in the USA. Real estate investors will appreciate the 2% lower fees.

Photo source: swisscan

Asbestos : Are You Safe?

Because of its great characteristics such as resistance to heat, fire, wear or chemicals, asbestos used to be a very desirable material - until a short time ago.

For decades it was used in making thousands of products, from building material to clothes and toys, until about 50 years ago when it became clear that it was also poisonous. What is asbestos poisoning? The advantage and disadvantage of asbestos at the same time is its durability, which has been exploited in various industries. On the other hand, when present in human bodies, the body has no way of disposing of it.

If asbestos is part of some material, as long as it stays in it, it is not dangerous. It only becomes dangerous when the tiny needle-like fibers become airborne, which makes them possible to be inhaled. The trouble with asbestos poisoning is that its primary symptoms such as dry cough, tightness in the chest or shortness of breath match the symptoms of a lot of less serious diseases. Regarding also the long latency period, it often happens that the real cause of the sickness is found out only when it is too late.

The most common sicknesses that have been linked to asbestos poisoning are asbestosis, mesothelioma and lung cancer. Asbestosis is caused by the lungs trying to get rid of the asbestos fibers by producing acid, scaring the tissue, causing it to harden. Eventually, the capability to breath is very limited. Mesothelioma is an cureless cancer of the outer lining of the lungs. Mesothelioma can be caused also by only a brief, even accidental exposure to asbestos poisoning (unlike asbestosis). More than half of the people dying from asbestos poisoning suffer from asbestos-induced lung cancer. Nevertheless, if the diagnosis is determined correctly and the patient starts the treatment early, he/she is quite likely to lead an active life for many years after.

Asbestos in Canada, being once one of the most important asbestos producers in the world, still supports its use in its less dangerous variations. The asbestos mines in Quebec are still in use. Until the 1980s, asbestos had been widely used in most office buildings, public buildings and schools, usually for thermal, fire and sound insulation. The people who were most 'at risk' were mostly the workers installing asbestos materials, especially in cases where health and safety rules were ignored. Then the dust from the installation process could get into the air and people were breathing in the poisonous toxins. The use of asbestos still hasn't been banned in Canada. Nevertheless, improvements have been made - Ontario banned using asbestos as insulation back in 1973. Local governments have been trying to get rid of this material from public buildings and any work that involves either installing or removing it is governed by very stringent regulations.

Asbestos in Toronto Since 2007, Ontario has established strict regulations for asbestos used in buildings. If a landlord finds any suspicious material deteriorating in the building he owns, he has to submit it for examination. There are professional companies that can remove the asbestos safely, if its presence is discovered. If there is any danger of continuous deterioration, the whole impacted area has to be removed, again following strict safety rules.

The most common use of asbestos in non-domestic buildings: - insulation on pipes - ceiling tiles - panels boards - cement panels - sprayed coatings on walls - asbestos ropes and cloth - textures coating The most common use of asbestos in residential homes in Toronto: - exterior surfaces: deck undersheeting, roof felt and shingles, window putty - all kinds of insulation - flooring: vinyl asbestos sheets, tiles and undersheeting - interior surface: sprayed-on acoustic ceilings, acoustic tiles - appliances: water heaters, range hoods, clothes dryers and dishwashers Asbestos is still not a solved problem. A year ago, there was the Sunrise Propane blast, as most of us can still remember. Five streets were hit by asbestos debris and 3000 inhabitants had to leave their homes until a complete and careful clear up of the place. One of the assignments for our local governments is to keep struggling against the danger posed by asbestos. Nevertheless, the extent of this danger is very hard to quantify. As only 0.5% of asbestos in material is considered toxic, it’s hard to trace back all the potential risks.

There are professional companies that you can summon and they will inspect your home in case you have even the smallest suspicion it might have been impacted (there is a list of such companies available in the Toronto region). Under no circumstances, you should try to deal with the suspect material yourself!

Photo source: Marshall Astor

Canada is the first!

Many people are concerned about their banks in these days. I am dealing Toronto houses for sale so for me, a sound bank system is extremely important - real estate business and banks are very closely bounded.
Full of negative thoughts and dubitations, you should open World Economic Forum's survey The Global Competitiveness Report 2008-2009, because in chapter 8.07 (named The soundness of banks) you can find very interesting information. Canadian banks placed as the soundess in the world!
Around 10000 proffessionals were asked between the years 2007-2008 to evaluate banks in more than 130 countries. They should give 1 to 7 points (the more the sounder bank). Canada recieved average score 6.8 points and placed 1st! This is definitely nice information, which may fortify people's trust in our bank system - and positive thinking and trust is the main core for the banks.
You may think that business proffesionals had tendency to overvaluate banks in developed countries, but if you look at the results you will see it's not true. Germany placed 39th, USA 40th and UK even 44th, beaten by Botswana or Senegal for example.
The worst banks are in Algeria (3.9 points, last place), Libya (4.0), but also Argentina (4.2), or Russia (4.86 points, placed 107th).