Are Condos to Blame for Municpal Fiscal Shortfall?

Hey guys, I was reading the Toronto Sun, and National Post today and they had articles blaming the condo boom for the current tight fiscal and budgetary situation the City of Toronto is currently in. It is being reasoned that all this condo development is creating an undo burden on city coffers and that the developers are not being taxed enough, when their applications with the city are approved.

They also mentioned the fact, that both Mel Lastman and Rob Ford, had and have proposed tax freezes which ultimately end up costing the City large amounts of money down the line. I can see how the added burden of thousands of new condo residents is impacting the city, but  I don't see how people living in walkable areas of the city are more of a burden then if they were living in suburban Toronto and required far more driving space to get around. I just don't see it, considering all else is equal.. The argument from the National Post falls flat...

 Post City Article

For next year, Mayor Ford is proposing a tax rate increase at about half the rate of inflation. Freezing taxes and cutting sources of revenue have caused major problems, which is why city hall is constantly trying to chop back programs, particularly programs designed to serve those with the fewest resources.
But there’s another factor at play — the explosive growth of condos in the city. To accommodate growth the city must build new capital facilities – transportation improvements, parks, recreation centres, libraries, water, sewage and waste facilities.

City council’s budget for growth related capital expenditures this year is $659 million; $811 million in 2013; and $568 million in 2014. Council imposes a development charge for each new unit of housing, but the total revenue from development charges is budgeted at just $91 million this year and smaller amounts for the following years. The shortfall in meeting the costs of growth is well over a half-billion dollars a year. And the property taxes collected from these new units is not expected to pay for the operating costs of the new facilities. All that growth is causing a major financial problem.

The argument from the Toronto Sun will make you want to laugh. Their argument against the Mirvish-Gehry Development is that Toronto Landmarks like Z-Teca Tacos. Give me a break, they are saying that Condo's will kill the King West Strip. When it's the Condos that made the King West Strip Cool. Remember what King West use to look like before... all factories, and whatnot. If it wasn't for the Condos the place would be a major parking lot and factory zone. How soon, these fools forget..

Don't Take the Toronto Sun too Seriously, it'll hurt your brain

If successful, gone will be some famous Toronto landmarks like The Red Tomato, Fred’s Not Here and Z-Teca.
“Once those great restaurants are gone, how long before the domino effect occurs?” Carbone said. “Where are the tourists going to go?”
It’s an excellent question, because this restaurant row is a Toronto gem and among the last of the historic buildings in the city.
Why are zoning restrictions not protecting what precious little there is left.
“They talk about saving the facades and heritage designation, but everybody knows it’s just window-dressing,” Carbone said.

Getting a Mortgage and Mortgage Insurance through Dominion of Canada General Insurance Company for financing a loan to purchase at FIVE Condos is actually a relatively easy process, and new rules from the federal government has required that company include new regulations, which have made the home loan and mortgage process a bit more difficult. Those changes at Dominion of Canada General Insurance Company include shortening the amortization period for which the loan can be held by the consumer, and the degree to which the property is financed by the mortgage. They have also increased deposit requirements to lift the loan insurance amount. Mortgage insurance from Dominion of Canada General Insurance Company is actually one of the major financing costs on home loans.

Investment Trusts have no taken to looking to purchase rental properties and acquiring mortgages through financing auctions by the banks looking to shore up their balances sheets in light of stricter government regulation. These regulations have actually made holding residential mortgages by the large financial institutions harder to hold. Currently investors are looking to increase their position in rental properties in Toronto, at the same time the federal government in co-operation with the financial institutions are making getting and qualifying for loans and mortgages more difficult

Dominion of Canada General Insurance Company : What is Condo Insurance?
Condo Insurance is required to protect your personal contents from theft or fire damage in your condo if these unforeseen events should happen you should make sure that you have adequate protection. Some items in your condo are will also be protected by your condo association insurance policy which covers the general building. The events that are covered by condo insurance include Fire, as well as Lighting. Other weather related causes such as Windstorms, and Hail are also covered. The major one that most people worry about is theft which is covered by condo contents insurance policies.

Toronto Condo Market Report – February 26, 2014

Toronto Condo Prices continue to trend upwards, as sales also move up with general improvement not only in the Toronto economy, but the nation as a whole. Condo sale prices have not increased to the same degree as detached family housing, due to new supply coming onstream. However fears of a condo bubble, have not proved accurate, as trends move to the upside.