Welcome!

By registering with us, you'll be able to discuss, share and private message with other members of our community.

SignUp Now!

May 2011 Ontario Economic Fundamentals

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
News articles for May 2011.
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
Chrysler to repay Canada, Ontario loans




Chrysler Group LLC confirmed Thursday that it intends to repay its outstanding US$7.5-billion in loans from the governments of Canada and Ontario, as well as the U.S. Treasury, in the second quarter.




The loans from the Canadian governments, which were given to the troubled Detroit automaker as part of its bailout in 2009, currently have a face value of US$1.7-billion, while the U.S Treasury loans sit at US$5.8-billion, according to regulatory filings. As of Dec. 31, 2010, Chrysler said it had paid US$1.2-billion in interest on those loans.




Chrysler said it plans to repay the debt through refinancing it and from the proceeds of newly issued debt securities offered and sold to institutional investors in a private offering, subject to market and other conditions.




The news comes one week after Fiat SpA announced its intentions to increase its stake in Chrysler by 16%, bringing its current holdings to 46%. Fiat originally took a 20% stake in Chrysler when it emerged from bankruptcy protection in 2009, and has been building its holdings in the company as it meets a series of financial objectives.





Read the full article here.
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
Metrolinx gives summer timeline construction for Eglinton line construction




Residents will get some tangible proof that an underground transit line is coming to Eglinton Avenue when Metrolinx starts digging a giant hole this summer from which to launch its tunnel-boring machines.




The shaft at Black Creek and Eglinton will be the western starting line for two machines that will drive eastward next summer, officials said Thursday, and meet up with two other machines coming from the opposite direction. Jack Collins, vice-president of rapid transit implementation at Metrolinx, said it will take about two-and-a-half years to dig the central, 11-kilometre tunnel for the Eglinton Scarborough Crosstown light rail line. Metrolinx will then have to build the stations.




It still has to plan out the Eglinton east tunnel to Kennedy Road, which was supposed to be on the road until Mayor Rob Ford insisted that the line be buried. Metrolinx is also converting the Scarborough Rapid Transit into a light-rail system so commuters will be able to take the same mid-town train to Scarborough Centre. It should be done by 2020.





Read the full article here.
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
Toronto, Mississauga win 'cities of the future' ranking




Toronto and Mississauga have defined themselves as `cities of the future,` according to a survey of North and South American municipalities conducted by Foreign Direct Investment Magazine.




The ranking, contained in the magazine`s latest issue, put Toronto fourth overall in the category of North American `cities of the future` ` behind New York City, Chicago and Houston. Toronto, which was also listed as one of the top 10 `major cities of the future,` earned separate nods for its economic potential, infrastructure, marketing strategy and quality of life.






Mississauga, meanwhile, placed fourth in the category of `large cities of the future,` and was also recognized for its economic potential and infrastructure.




`Mississauga is well positioned to foster international business growth and expansion,` Larry Petovello, the city`s director of economic development, said in a news release issued Monday. `[We] will continue to build Mississauga`s international profile as a sound business decision and return on investment.`





Read the full article here.
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
Lear profits double as global auto production rises




SOUTHFIELD, MICH. ` Auto parts maker Lear Corp. said Friday that its first-quarter profit more than doubled as global vehicle production improved and seating and electric power management units saw strong sales.




The Southfield, Mich., company also said it expects that automaker production cuts due to a parts shortage from Japan could have a significant impact on the company`s second quarter, but it does not expect a significant impact for the full year.




Lear`s plant in Kitchener has benefitted from the production increases. Employment in the Manitou Drive plant, which makes parts for car and truck seats, has risen to 425. That`s up from about 150 two years ago, when the future of the plant was in jeopardy.




Lear reported net income of $156 million (all figures in U.S. dollars), or $1.44 per share, compared with $66.1 million, or 61 cents per share, in the first quarter of 2010 as the global auto industry recovery was just beginning. Revenue was up 19.5 per cent to just over $3.5 billion.





Read the full article here.
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
Barrie hydro bills to rise again on May 1



BARRIE - The Ontario Energy Board has approved another increase in hydro rates.



The 0.8-cent per kWh hike, along with a distribution cost increase, go into effect May 1.




PowerStream projects the typical customer with a smart meter, billed on time-of-use rates, and who uses 800 kWh per month can expect to pay $6.65, or 6.3 per cent, per month more, which takes into account the Clean Energy Benefit discount of 10 per cent.




The increases break down into per-kWh rates and the distribution cost.




For those PowerStream customers with smart meters and on time-of-use pricing, the off-peak rate rises to 5.9 cents per kWh, from 5.1 cents; to 8.9 cents per kWh for mid-peak, up from 8.1; and to 10.7 cents, up form 9.9 cents, for on-peak use.







Read the full article here.
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
An expert explains the ins and outs of occupancy





Confusion may arise when reviewing his or her agreement of purchase and sale for the purchaser of a condominium, and sees the use of the words `tentative occupancy date`, `outside occupancy date`, `closing date`, and the like. With this article, I hope to clarify generally what the importance is of these terms.







For all new home sales on or after July 1, 2008 (for condominiums, where the first unit sold in the project is on or after July 1, 2008) the use and significance of these terms must comply with Tarion`s Statement of Critical Dates and Addendum to Agreement of Purchase and Sale (collectively, the `Tarion Addendum`) which must be attached to all new home (whether condominium or single family dwelling) agreements as mandated by the Ontario New Home Warranties Plan Act (the `Act`).







By way of general information, as in most home sales (whether new or resale), for ease of reference, the fundamental terms of the condominium agreement of purchase and sale are typically located on the first page of the agreement - these will include the identification of the seller and buyer (vendor and purchaser); the property being purchaser (the dwelling unit and its appurtenant interest in the common elements, which also may include a parking unit and/or storage unit); the purchase price (usually inclusive of HST); the amount and date of deposits required to be given; the tentative occupancy date (or the first tentative occupancy date), and the date of offer and acceptance and signing of the parties to the agreement.







Read the full article here.
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
Honda warns of Civic shortage due to production cuts





DETROIT - Several Japan-built models in Honda Motor Co's vehicle line-up, including its Fit and Civic Hybrid cars, will be in short supply until later in the year due to auto parts shortages from Japan.







Additionally, the launch of Honda's 2012 CR-V crossover will be pushed back by at least one month, Honda said in a statement Monday.







Honda will extend production of its 2011 CR-V model to bridge the gap between the model years







The automaker also said production of its 2012 Civic will be "significantly reduced" through at least the summer months.







"Due to the limited parts supply from Japan, Honda will bring in only a very limited number of Japan-built vehicles for the remainder of the year," the company said in a statement.







Read the full article here.
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
Too much large-lot housing, too little urban housing to meet demand




The chart above comes from Arthur C. (Chris) Nelson of the University of Utah, as reported by Rob Steuteville in his New Urban Network blog. It compares three estimates of American consumer housing preferences ` from Nelson`s own research, market analysts Robert Charles Lesser & Co. and the National Association of Realtors ` to what we actually have now on the ground, as measured in the 2010 American Housing Survey. It shows that we have far more large-lot housing than we are going to want going forward, and considerably less small-lot and attached housing than we are going to want.




These numbers reflect the trends that I described last week regarding the collapse of the assumptions behind sprawl. The expected result would be, in general, declining values for large-lot housing and rising values for more urban housing types, which is exactly what we are starting to see. And, by the way, Chris Nelson has been following these trends for years, and actually predicted the foreclosure crisis before it happened. So we should be paying attention.





Read the full article here.
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
Chrysler turns first since bankruptcy thanks to growing sales




DETROIT ` Chrysler has turned its first profit since leaving bankruptcy two years ago.




The company reported first-quarter net income of $116 million and revenues of $13.1 billion on Monday. The profit is a milestone in Chrysler`s long road back to health after its 2009 bankruptcy. It last reported a profit in 2007.




Several trends put Chrysler Group LLC back in the black. Its sales rose 18 per cent worldwide in the first three months of the year as the economy improved and buyers responded to a fresh lineup of new cars and trucks.





Read the full article here.
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
When can you evict a tenant for a family member?




When can you evict a tenant for a family member?




John from Toronto wondered if he could get rid of a problem tenant by letting his son to live in the apartment and how long his son would have to live there before he could rent it to someone else.




The question shows the confusion, as well as the lack of trust, on the part of both landlords and tenants when it comes ending a lease because you want the apartment or house for a family member, or when a buyer of a home requires vacant possession after closing. There are several issues.





Read the full article here.
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
Competition Bureau asked to settle new fight over MLS listings




A fresh fight is brewing in the home sales industry, as the associations that represent real estate agents try to enforce restrictions on new, lower-cost competitors in an effort to prevent them from doing business across provincial boundaries.




The competitors offer low-cost, flat-fee listings on Realtor.ca, and were under the impression they would be able to accept clients from across the country after the real estate industry settled a case with the Competition Bureau last year that allowed them entry to the market.





Read the full article here.
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
As factories stall, imminent rate hike less likely





The unexpected contraction of the Canadian economy in February bolsters the case that the Bank of Canada will delay its long campaign to raise interest rates until the summer.




The Canadian economy shrank in February for the first time in five months, dragged down by the largest retreat of manufacturing activity since the worst stretch of the recession.





Read the full article here.
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
Rent or buy? Do the math




A young couple who have been renting in our modest Toronto condo building recently bought a home a couple of miles away in a nice old neighbourhood with the aim of starting a family. The house is a big, detached fixer-upper and the renovation costs will be extensive.




In moving up to the rungs on the property ownership ladder, our young friends are committing themselves to a quantum leap in monthly expenses: They came up with a substantial down payment; they are taking on a mortgage payment, property tax bill and other expenses almost twice as large as their $1,600 rent; and they are spending a large amount on the renovation and other costs associated with buying a house.




It is a story that has unfolded millions of times in Canadian history and one that will continue to unfold because home ownership is deeply ingrained in our culture, a cornerstone of getting established and getting on our way in life. People will make great sacrifices and otherwise twist themselves out of financial and emotional shape to buy into the dream.





Read the full article here.
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
Pricey property surge draws average up




Strong sales in Canada's most expensive market helped push the average price of a home across the country up 8.9% last month from a year earlier, the Canadian Real Estate Association said.




The Ottawa-based group, which represents about 100 boards across the country, said the average sale price of a home was $371,286 in March.




But CREA cautioned that Vancouver was driving the numbers because of strong activity "in a few pricey areas.




`A record number of multi-million dollar property sales in Richmond and Vancouver West are pushing up average prices for Greater Vancouver, British Columbia and nationally,` said Gregory Klump, chief economist at CREA.





Read the full article here.
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
Expect demand in Toronto to remain strong





April 29, 2011
-- The first quarter of 2011 ended strongly for the existing home market in the Greater Toronto Area. Resale transactions reported through the TorontoMLSÂ system in March amounted to 9,262 ` the second strongest March on record behind March 2010. There were 19,610 sales reported during the first quarter, representing a 12.5 per cent dip compared to the record pace experienced during the first three months of 2010.







I asked Jason Mercer, the Toronto Real Estate Board's (TREB's) Senior Manager of Market Analysis, to provide some context for the sales figures reported so far this year. He provided both a historical back-drop and a forward looking view: "This year's first quarter result was slightly higher than the average for the last five years and was in line with TREB's forecast sales range for 2011. At the beginning of this year, our forecast range for sales through the TorontoMLSÂ was between 80,000 and 85,000. The actual first quarter result supports this forecast, so we will be making very little if any adjustment to our outlook on sales," said Mercer.







The average price for March 2011 transactions was $456,147, representing a five per cent increase compared to the average of $434,696 reported in March of 2010. Price growth through the first three months of the year was quite uniform, ranging between four and little over five per cent. I asked Jason Mercer to provide his view on the pace of price growth so far this year.







Read the full article here.
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
Domestic automakers report strong April sales





Ford Motor Company of Canada said Tuesday it had its best April in 11 years in 2011, with vehicle sales growing nine per cent yearover-year last month, allowing it to claim the top sales spot during the month, and for the year to date.




The Detroit automaker said that increase was fuelled by a 33 per cent increase in car sales, and a 2.6 per cent increase in trucks.




Overall, Ford said it sold 25,548 vehicles in April, compared to 23,441 last year.



Read the full article here.
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
Fewer sales help drive up home prices in Toronto




Existing home sales in the Toronto market are down by 17 per cent in April from a year earlier, according to figures released by the Toronto Real Estate Board Wednesday.




The board reported 9,041 existing home sales in April, compared with 10,898 in 2010.




However, because last April was an all time record, this year`s figures are in line with average April sales over the last five years, according to the board.





Read the full article here.
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
Do I need a lease? (Answer: Yes, you need a great one!)






What Makes A Good Lease?









As a seasoned veteran of hundreds of battles before the Landlord and Tenant Board, it`s clear: something is rotten in Ontario. Is it the legislation governing tenancies? The Landlord and Tenant Board? Irresponsible landlords? Predatory tenants?









No matter the reason for your tumultuous landlord/tenant relationship, one thing is for sure: if you don`t have a written Agreement, and end up having to litigate one or more issues before the Board, it`s going to be an uphill battle for everyone involved.






Some Agreements are better than others. Some are a dozen pages long and others, half a page and a handshake. Which approach is best?






These are the Terminator`s Top Ten
elements of a good residential lease, designed to protect all parties, and anticipate problems, while hoping there won`t be any!





Read the full article here.
 

Ally

Research Assistant
Registered
Joined
Mar 24, 2009
Messages
16,743
GM profit more than triples





General Motors Co (GM-N 31.59 -0.32 -1.00%) posted a stronger-than-expected quarterly profit, driven by a recovery in the U.S. market and strong sales in Asia, but vehicle prices disappointed analysts and its shares fell.







Quarterly net profit more than tripled from a year ago and its operating profit narrowly beat expectations.







Even though total sales rose 15 percent to $36.2 billion US against analyst expectations of $35.6 billion, analysts said that increase was lost to aggressive incentives early in the year.







"Worth noting that GM's pricing did not surprise on the upside as Ford's did," J.P. Morgan analyst Himanshu Patel said in a research note, referring to the first quarter. "GM's March to April incentive decline was not as steep as Ford's, suggesting Ford benefited more than GM."







Read the full article here.
 
Top Bottom