The Economics Behind The Toronto Housing Crisis

Housing crises are similar to energy crises, but the implication of the former is higher in the socio-economic impact on the people. Speaking of the consequences of Toronto real estate bubbles, it demands everyone to speak out and rise in defense of sanity in the industry. A quick check at real estate sites for low-rise houses. It will show a list of unsustainable prices increase that only speculators will dare to touch. With low-rise houses going as high as 16.5% in the first quarter of 2017 compared to 4.8% in 2012, one wonders if the economy of the Greater Toronto Area has been so good to warrant such sharp rise in its real estate prices.


By implication, any unsustainable sharp rise in the prices of properties is a bubble that takes a little more time to burst. But when the bubble bursts, industry watchers are concerned of the economic implication that will follow. Experts predict up to 90% crash in real estate prices that will go beyond the GTA to affect the entire Canadian real estate market. Using the 15% 2012 real estate price gain as a reference, it says the industry will lose more in 2 years than it has gained in 5 years.


Other industry pundits may not agree with a 90% crash, but their figure of imminent real estate price collapse in Canada is between 40-50%. Mortgage brokers may put up a stiffer defense to ward off the gloom future market naysayers as mortgage activities at Owemanco and other mortgage lenders are already processing the new Canadian stress test which aims at building credibility in the real estate market by short-circuiting excess homeowners’ debt burden that may plague the industry if things should go awry!


Already, the reality of Toronto housing crises is sending jitters into the spines of prospective investors. Whether we agree with the gloom predictions of 90% or 40-50% or we pitch tent with mortgage brokers and realtors to believe that things are not as bad as being painted, thinking like the average investor means there is imminent crash as many homebuyers and investors will stand back to watch how the market swims out of the troubled waters.


With the Toronto housing crash staring everyone in the face, going by recent reality checks, the industry is finally in its real price crash! Toronto ranked top in Global Real Estate Bubble Index among 20 major cities facing housing price bubbles. Although the power of demand and supply is potent in real estate market, more than such power playing out; the fear of not want to lose more money in an unsustainable property market may see a downward trend for the price crash than its appreciation.


Already, industry commentators and various predictions list Toronto as the riskiest real estate market. With as much as 50% increase in housing prices in 2016 with any possibility of making a breakeven for investors right now, the market risks more plummeting in the coming days, and no one knows when the downward spiral may end.


But all hope is not lost as the new stress test for the mortgage market is one of many policies mortgage brokers think will restore confidence in the market.

How To: Stay Cool At Home In The Summer

Your mortgage broker can bargain the best home price for you, but there are conditions in the house he cannot help you with. Although we all look forward to the coming of summer, your mortgage broker may use an excellent summer location as a reason to buy a property, but he may not be helpful in solving the severe heat problem of the season!


Excessive summer heat causes many to sweat uncontrollably that we wish to prevent it. And yes, you can avoid summer heat and keep your home cool for a comfortable living. Knowing the economic impact of using the AC makes seeking a cool home without air conditioner a top priority. Summer without AC may sound impractical, but it is true, you can do it!


The following natural heat remedy will help you to survive summer heat:


  1. Use the fan. To keep your home cool during summer blazing sun, make sure to keep indoor air in good circulation. You can make use of the fan to have a consistent air circulation. Unlike the AC, fan is a low cost option to aerate your home and keep the air circulating for more fresh air.

Lower the greenhouse effect. Sunlight carries enormous heat. It is best to keep sun rays out of your home by keeping the curtains down, shut the blinds and keep the windows opened. Always make sure your indoors, the bedroom and every other place in home are sunlight locked!

Use UV protective film in your windows. UV is a destructive element emitted by the sun. Make sure to prevent it from entering your home with UV protective film to filter out the UV rays and save your home from unwanted element.

Build well insulated roofing. You need to talk to your builder about building your roof to prevent summer heat. Once your mortgage broker informed you of the climatic condition of the area, use that information to prepare ahead of summer.

Build cross ventilated windows: every building location has its environmental features, your mortgage broker must be privy to some useful information about the climatic condition of your new environment, let your building design prepare for summer.

Provide for sufficient water supply system. Intense summer heat will need you to shower or bath often. It requires a good source of water to cool your body as often as possible. In your building design make sure you provide for good bathing system to cool yourself in summer.


After following the above tips, the following low-cost tips will give natural cooling options in summer:

  • Use peppermint tea mist. This tea provides better cooling option than ordinary water to cool your body temperature in the summer heat. Boil and allow it to cool; sprinkle the cool water on your body. It will give tingly and cool feeling and make you comfortable.
  • Chrysanthemum tea. This natural heat remedy tea helps to keep your body temperature down. Prepare and drink the tea hot or cold and see its incredible effect on your body temperature.


When you are discussing your accommodation with a mortgage broker, be patient to get as much information as possible beyond price and cost issues. Such information about the weather in the area will help you prepare ahead of what to come.


If your area is prone to nasty summer heat, use some of the tips above to beat the heat.

Wealth Management Advice for New Graduates

Wealth connotes abundance of material possession. It includes property with immense economic resources and monetary value. Availability of wealth in most cases requires adequate management to sustain and expand its value to yield more wealth and is often trusted under the care of well-bred and schooled wealth manager to provide wealth management services such as Owemanco with a diverse portfolio to help wealthy individuals manage their resources.


Wealth management involves investment portfolio administration, financial planning, estate planning, retail banking, legal and tax administration. If you are a new graduates building a career in wealth management, your role is that of a wealth manager with a job to devise strategies and to employ various portfolio management techniques to minimize taxes and improve after-tax returns. Your clients will include both big and small business owners and families desiring expert financial advisor to coordinate their economic activities for wealth sustenance and expansion.

The wealth managers must understand credible sources to invest their clients’ wealth such as assets in equities, gold, bonds and real estate and or with credible realtors to choose genuine real estate high yielding property investment to guarantee a good return on their clients’ investment in assets with excellent market value.


Wealth managers wanting to work with wealth management firm such as Owemanco, Canada needs to have at least a bachelor degree in economics, finance or accounting; a master degree in similar areas will be beneficial. A wealth manager’s role isn’t a piece of cake because he is the livewire of his client and must work responsibly with immense honesty.


The job of wealth management is mentally challenging because mistakes are not something the wealth management organization takes lightly as such the wealth manager must be up and doing. A homeowner on whose behalf a real estate bridge lending is being negotiated needs a sound business decision to get his home renovated with less liability, the wealth manager involved in the negotiation has to make sure the deal is beneficial at the end to his client.


Becoming a great wealth management consultant isn’t something to accomplished overnight; it takes months of study, planning with countless hours in front of the computer to develop proven strategies to sustain and boost his client’s wealth.


Therefore, the following are things to note by new grads entering the wealth management profession:

  1. A wealth manager is held to a different standard of care. The law expects anyone acting in trust to put the interest of their clients first when rendering their professional services concerning their clients’ wealth management issues such as when negotiating real estate bridge lending.
  2. Continuous learning to build top-level expertise. Unlike in other the professions, a wealth manager must commit to lifelong skill acquisition to deliver a cutting-edge result. The wealth manager needs skills to research latest real estate offers and use online property listing facilities as an online resource to locate the best property deal for their clients.
  3. The market is rare to beat. A wealth manager should never assume the market is his without doing his due diligence to find the best deal under any market circumstance. Mortgage financing such as real estate bridge lending has different offers; the wealth manager must look for the best deal for their client.
  4. Commit to networking like your life depends on it. Yes, your career success depends on how much networking you do. Never ignore the gathering of industry professionals and clients drive.
  5. Your boss knows a part of the whole. There are veterans in the industry who will teach you the aspect they know. Never assume your boss is Mr. know all, there are things he might not know which someone else will tell you.

Why Are Millennials Downsizing?

Mortgage brokers like Owemanco have identified a worrisome trend that shows that millennials are accepting minimalism in their choice of homes. Although downsizings shouldn’t cause us to worry too much, a trend that will shrink sales and dwindling income should cause worries. And right now, it is happening with somewhat global acceptance without respect for geographical location or country.


Who are millennials?

They are teenagers, young people in their twenties and thirties, people born in the 80s, 90s and early 2000s! They are also called generation Y kids, following closely the children dubbed generation X of 60s and 1980! They are reason real estate e-commerce is trending and changing the old ways of the real estate market.


The downsizing trend in property ownership is following much other minimalist culture growing among your people. They want to start a family later or not at all, they are moving from local areas to cities and prefer small apartments and always on the move. As a mortgage broker, think of everything imaginable; you will find millennial at the center of it.


What is causing millennial to downsize even more than baby boomers?


Until now, young people always aim to outdo their forebears! Young people want to move from semi-detached house to mansions; they want to see the world, get married, raise children and maintain a happy family. In public life, they want to challenge the existing order and create a paradise on earth. This was the path young people before now followed until the millennial is rewriting history for the mortgage broker to follow.



There are so many reasons why millennial are downsizing more than baby boomers, some of the Reasons are discussed as follow:



A real global village world system is achieved at their time. Millennial are also called technology children or generation because, at their time, the world attains real technology evolution where many things previously treated as science fiction are a reality. Thus, their desire to be mobile is possible because of technology. With just a gadget, the world is on their palm!


Care for the environment

They live their desire for a safe environment by action! They don’t talk of desertification and want to setup paper mill factory that will deplete what they fight so hard to improve. More advanced technology means a better environment.


Rising unemployment

There is global economic challenge causing a great recession that the world is in complete denial of its reality. Financial problems are forcing millennial to spend less as they think more of conserving and maximizing the little they have.


Virtual possession

Riches to a millennial are not the number of cars, houses or landed properties he has; it is in virtual wealth. Millennial wealth management idea is investing in faraway lands; they would instead take their investment into the cloud and work for its growth than sinking money into the oil field with attendant social, political and economic consequences that increase the population of the have-not and put the wealth in the hand of a few.


Choice of living

Millennial wants to live in the city and will pay more if they have to. They want smaller and smart homes. They want a home that is an embodiment of civilization with everything they need right there! They are not interested in something self-limiting; they want a lifestyle that makes it easier to move without looking back for a possible, big loss!


Shared economy

Why will I need a big car when I can borrow; this wasn’t pronounced in baby boomer time, but millennial can now get whatever luxury good they need by hiring it modern wealth management pursuit.

Millennial have grown to know the wisdom of living within their means. This was alien to older generations who don’t even know about real estate e-commerce during their time. This minimalist appeal is the reason why millennial are downsizing than baby boomers.

Living Uptown vs. Downtown Toronto

Toronto is Canada’s largest city and North America’s fifth most populous municipality with a population of 2.7 million people. When discussing with the mortgage broker to choose between downtown and uptown area in Toronto, do note that both have their Pros, and Cons, people’s choices in this regards cannot be universal, it will depend on individual preferences.


So, which is one do you prefer – downtown or uptown in your real estate e-commerce deal? What are the pros and cons of living in Toronto and commuting from the downtown or uptown? The difference between the two areas boils down to three things based significantly on personal preference: Money, Time and Lifestyle. Indeed, although rents get cheaper the further you get away from downtown, the travel costs and travel time offset any savings.


If you often wondered if you should find an apartment in the downtown district or the uptown area to move into a new apartment the following are Pros and Cons will guide you in your decision and sustain your wealth management desire.



There is up/down effect of moving back and forth between your home and workplace depending on where you live, especially if you are wealth management conscious.

  • If you chose downtown, you are living where you work. The Pro is you won’t spend so much on commuting. However, living far away from downtown has its cons regarding transport fare.
  • Residing in the uptown location means you have to spend more on transport because you are far away from your place of work. The extra cost of commuting will add up to your overall expenses every day.



Business attracts traffic; while this is good in real estate e-commerce, you should be concerned about its pros and cons. residing in commercial district draws hundreds of people per minutes both night and day but how is living in such area affects you?

  • Living in the downtown area is disadvantageous in term of people as it brings you neck to neck with constant traffic. Although your way home from the office is a walk away, however, the busy nature of the area brings lots of traffic around the residential area of the community.
  • You will benefit from less traffic by living in the uptown area; the traffic is predictable, so stay alert when discussing with the mortgage broker!



Who likes noise? Unless you are in a job that demands to stay close to a noise source, I doubt if you would prefer a noisy environment to a quiet one.

  • The location of different businesses in the downtown area naturally attracts noise pollution. Businesses playing music, promoting shows and other commercial activities can lead to high noise pollution, unlike in off downtown area.
  • People coming home to relax and prepare for another workday will not constitute a disturbance unto others. If you desire a quiet place to live, one significant advantage of renting the uptown property is that there is no noise!



If you are aversed to high-cost rent, you need to understand the difference between downtown and uptown apartment.

  • Costs in various shades and shapes are major Cons of renting an apartment in the downtown area. You can pay 2-3 times what you pay uptown. If this bothers you, consider other Pros and Cons to choosing wisely when dealing with mortgage broker.
  • Apartment rental in this area enjoys a low-cost advantage. There are hardly outrageous extra charges to pay for your apartment.


There are different reasons to choose a rental apartment it could be cost saving or relaxation. Whatever is yours, consider multiple favorable factors before you decide.