Rental Housing, We Need It

The rental vacancy rate in Toronto is at a record low of 1.1%. In other words, there are few, if any, vacant rental units available in the rapidly growing city. Prices for a bachelor apartment now exceed $1,500 and condo rent is also rapidly increasing to reach $2,000 in many cases. The lack of affordable rental housing, once plentiful, consistently built, and widely appreciated in Toronto, is crunching and distorting the real estate market. From the 1950s to the early 1980s, rental apartments were consistently and routinely built. Much of the existing rental stock was built in the 1960s.

Why Building More Rental Housing Is A Good Idea

There are many financial disincentives to building rental housing. Permits are hard to come by, government intervention has interfered in building plans; mandating certain number of affordable units, and it is easier and more profitable in the short term to rapidly sell newly built condo units. Rent control measures recently introduced by the outgoing Liberal government in Ontario will make disincentives to build rental housing greater as it adds red tape to removing troublesome, potentially costly tenants. The new PC government will maintain these rent control measures, but also have the opportunity to introduce measures to spur new rental housing development.

Are We Paying Too Much To Rent?

Tenant organizations and groups have released polls showing that over half of Toronto rental tenants are reporting that they feel that they pay too much in rent. More affordable rental housing will help young millennials, student, and families save for an eventual condo and house purchase. It will also take some pressure off the condo market, under huge pressure to meet demand which is showing no signs of abating. Most housing experts believe that a heathy rental vacancy rate should be from 3-4%, four times present levels.

top ten median rent across canada

Your smartphone is now your financial advisor? Applications that will set you on the path to financial success.

If you’re anything like us – you’re always glued to your smartphone device. With every application you can imagine, our smartphones have quickly become our navigational system, entertainment system – and our financial advisor? That’s right – there are a ton of very useful (and easy to use) apps out there that will not only help you track your money, but manage it as well. Here are a few of our favourites at Tembo Financial:

Mint

Mint is a free app compatible with both IOS and Androids and allows you to track your finances, let’s you know if you’re about to go over budget, as well as categorize the types of spending you do. We love this app specifically for the later feature. Four dollars a day on a cup of coffee doesn’t seem so bad – but trust us, it ads up quite a bit. Tracking where your money is going to specifically can help you make much smarter financial decisions.

LearnVests

Although this app is unfortunately only available on IOS – it has its major pros (sorry Android users). Similar to Mint, LearnVests helps you track your spending and budget. But what makes LearnVest Different is its focus on financial literacy. LearnVest’s roots are in financial literacy and education, so it offers plenty of reading material in both the app and website, based on topics you select as important to you. We think this is a great feature for anyone who is still new to the world of bills, rents and debt. Understand how to spend wisely, and save will greatly benefit you down the line.

Budget Boss

This super easy app is an amazing way to evaluate the effectiveness of your budget. Creating a budget is one thing, but is it smart? Budget Boss analyzes the budget you’ve created and makes recommendations and estimations based on those numbers. Thinking 5… Even 10 years down the line is a bit of a daunting task. Budget Boss helps you create the smartest budget for your financial future.

Although these are only three out of many financial applications available, we truly believe that investing a little time tracking your spending, and creating a budget that works for you, will set you on the path to financial success.