why realtor should be familiar with building terminology ...€¦ · real estate development...
TRANSCRIPT
• Whyrealtorshouldbefamiliarwithbuildingterminology?
• Whichtypesofhomerenovationboostvalue?
• Home-improvementtrends
• Whendoi needabuildingpermit?
• CityofTorontozoninginformation
• Realestatedevelopmentkeyterms
REALESTATE
BUILDING
ECONOMICS
LAW
REALESTATEDEVELOPMENTKEYTERMS
• MeasuringRealEstate
• 1SquareFootisequalto0.0929SquareMeters
• SquareFeetorSquareMeters;SometimesalsoAcres(1Acre=43,560ft2)orHectares(1Hectare=10,000m2).
• Determininggrossareainsidebuilding,floorsize,andnumberoffloors;alsousedtocalculatelandacquisitioncosts.
• FloorAreaRatio(FAR)
• AllowableLotCoverage
REALESTATEDEVELOPMENTEXPENSES
5MAJOREXPENSECATEGORIESINREALESTATE
• LandAcquisitionCosts:Buyingtheactuallandandpayingforbrokerfeesandpermits.
• HardCosts:Buyingtherawmaterialsandphysicallyexcavating,demolishing,andconstructingthebuilding.
• SoftCosts:Payingarchitects,designers,lawyers,andengineerstodesignthebuilding.
• Furniture,Fixtures&Equipment(FF&E):Payingfortables,desks,chairs,computers,andsoon.
• TenantImprovements(TIs):Payingforitemsspecifictocertaintenants– forexample,ifonetenantwantsadifferentstyleofwindow,carpet,orarrangementofdesks
REALESTATEDEVELOPMENTFUNDING
• TheLoan-to-Cost(LTC)orLoan-to-Value(LTV)ratiotellsyouwhatpercentageofdebtyoucanuse.
• DeveloperEquity
• 3rdPartyInvestorEquity
• Mezzanine&SeniorDebt
THECONSTRUCTIONTIMELINE
• Granular– youthinkinmonthsratherthanquartersoryears.
• Planning/Pre-Construction:Youacquirethelandandpermitsanddesignthebuilding.
• ConstructionPhase:YoupayfortheHardCostsandconstructthebuilding,aswellasanyadditionalpropertiesthatareattachedtothebuilding,suchasparkinggarages.
• Post-Construction:Tenantsbegintomoveinandyoustartcollectingrent.
• SaleDate:Youassumethatthepropertyissoldattheendoftheperiodonceitreaches“stabilization”(nofurtherchangestorent,expenses,ortheVacancyRateasidefrominflation).YoucannotearnanacceptableIRRunlessyousellthepropertytosomeoneelseinthefuture.
LANDTERMS
• Shelllease
• Vanillashellimprovements(VSI)
• BareLand:Unimprovedland;landinitsunusednaturalstatepriortodevelopmentorconstructionofimprovementssuchasstreets,lighting,sewers,andthelike.Sameas rawland.
• BuiltOut:Thecompletionofconstructionofa shelllease buildingaccordingtothetermsagreeduponbythelandlord(lessor)andthetenant(lessee).
• Finished&Graded:Rawlandthathasbeenpreparedfortheconstructionofbuildings,includingtheinstallationofimprovementssuchassewerandelectriclines,streets,publicfacilitiesandcommonareas,andsoon.
HEALTHYHOMESRENOVATIONTAXCREDIT
• TheHealthyHomesRenovationTaxCreditisapermanent,refundablepersonalincometaxcreditforseniorsandfamilymemberswholivewiththem.
• Claimupto$10,000,Theamountofmoneyyougetbackfortheseexpensesiscalculatedas15percentoftheeligibleexpensesyouclaim.
• Examplesofworkthatqualifies:– non-slipflooring– installingahand-heldshower– doorlocksthatareeasytooperate
• Waterproofroof• functioningguttersanddownspouts• Drybasement• Goodfurnace• Solidfloors• Wallsthatareingoodrepair
andalloftheothercommon-senseitemsthatyouexpecttofindinahome.
Basic
IMPORTANT:Moneyspentontheseitemsisunlikelytobefullyrecovered,butshouldatleastresultinensuringthatthehomesellsforapricethatiscomparabletootherhomesinthearea.
WHICHTYPESOFHOMERENOVATIONBOOSTVALUE?
• Nicegreenlawn• Attractivelandscaping• Freshpaintinsideandout• Newcarpet• Newappliances• Stonecountertop
CurbAppeal
IMPORTANT:Itemsthataddcurbappealhelpthepropertytolookgoodwhenprospectivebuyersarrive.Whiletheseprojectsmaynotaddaconsiderableamountofmonetaryvalue,theywillhelptheplacesellfaster.
WHICHTYPESOFHOMERENOVATIONBOOSTVALUE?
• Attractivemainentrance• newsidingorstuccofinish• Kitchenremodeling• Bathroomremodeling• Newwindows• CustomDecks• Additionoflivingspace.
Addvalue
IMPORTANT:Mostoftheseeffortswillrecovertheircosts,somewillcomeclose.
WHICHTYPESOFHOMERENOVATIONBOOSTVALUE?
• Kitchenisland• Built-inkitchenappliances• Hardwoodfloorinkitchen• Laundryroomonmainfloor• Officeonthegroundfloor• Hometheatre• Whirlpoolbath
SEVENHOTHOME-IMPROVEMENTTRENDS
Source:TheAppraisalInstituteofCanada
Item ROI COSTKitchenupgrade 75%to
100%$700perLn.Ft.
Bathroomupgrade 75%to100%
Startingfrom$4,000
Interiorpainting 50%to100%
$4.60perSq.Ft.
Roofreplacement 50%to80% $2.75perSq.Ft.
Replacementoffurnaceorheatingsystem
50%to80% VariesStartingfrom$4,000
Expansion 50%to75% DependsonthesizeStartingfrom$110perSq.Ft.
Deck 50%to75% $5.50perSq.Ft.
Installationofhardwoodfloor 50%to75% $5.50perSq.Ft.
Constructionofagarage 50%to75% DependsonthesizeApproximate Budget:$20,000Source:TheAppraisalInstituteofCanada
PERCENTAGERECOVEREDUPONRESALE
PERCENTAGERECOVEREDUPONRESALE
Item ROI COSTFireplace(woodorgas) 50%to75% Startingfrom$3,000
Centralairconditioning 50%to75% Startingfrom$4,500
Finishedbasement 50%to75% DependsonthesizeStartingfrom$45perSq.Ft.
Woodfence 25%to50% $45perLn.Ft.
Interlocking 25%to50% $11perSq.Ft.
Landscaping 25%to50% Dependsonthesize&designApproximate Budget:$8,000
Asphaltdriveway 20%to50% $2.50perSq.Ft.
Pool 10%to40% Startingfrom$60,000
Skylights 0%to25% DependsonthesizeApproximate Budget:$4,000
Source:TheAppraisalInstituteofCanada
• ConstructaNewBuilding• Constructanadditiontoaexisting
building• Makestructuralalteration• Constructaccessorystructurelike
detachedgarages• Finishingabasementifincludes
structuralalteration• Energyandenvironmentalbuilding
improvementslikesolarpanelandsolarhotwatertank
• Constructadeckmorethan24inchaboveground
• Constructaretainingwallmorethat39inchinhight
• Constructingatentthatcoversmorethat646squarefeet
• Demolishallorportionofabuilding• Installorreconstructa chimneyor
fireplace• Installawoodburningstoveor
fireplace• Installormodifyheatingand
plumbingsystem(Varies)• Installabackwatervalve• Installbackflowpreventiondevice• Changeabuilding'suse
WHENDOINEED ABUILDINGPERMIT?
• Installasumppump• Addingorreplacinginsulation• Installationofcabinetryandmillwork• Undertakingwaterproofingrepairsto
abasement• Repairingandreplacingplumbing
fixtures• Replacingexistingroofingmaterial• Finishingabasementofahouse,if
• theworkdoesnotincludestructuralormaterialalterations;
• noadditionaldwellingunit(s)is(are)created(i.e.asecondunit);and
• theworkdoesnotincludetheinstallationofnewplumbing;
• Theinstallationofadditionalcoolingsystems,gasfireplaces,aircleaners,in-linehumidifiers,orhotwatertanks
• Replacingafurnaceorboilerinahouse• Thereplacementofwindowsordoors
providedthereisnochangeinthelocationorsize
• Re-claddingofahouseorsmallbuilding(3storeys orless)withnon-combustiblematerialotherthanbrickorstoneveneer
WHENISABUILDINGPERMITNOT REQUIRED?
ServiceDescriptionPreliminaryreviewofthesubmittedplanstoconfirmzoningcompliance
ServiceOutcomeAwrittennoticeofzoningcomplianceoranExaminer'snoticelistingzoningdeficiencies
RequiredDocumentation• Survey• SitePlan• FloorPlans• ElevationsandCross-Sections
WhatisPreliminaryProjectReview(PPR)
ServiceDescriptionPreliminaryreviewofthesubmittedplanstoconfirmzoningandapplicablelawcompliance,allowingacompleteapplicationforabuildingpermit
ServiceOutcomeAzoningcertificateoranExaminer'snoticelistingzoningandapplicablelawdeficiencies
RequiredDocumentation• Survey• SitePlan• FloorPlans• ElevationsandCross-Sections
WhatisZoningCertificate(ZZC)
ServiceDescriptionAbuildingpermitforanewdwelling,suchasadetachedhouse,semi-detachedhouseorrowhouse.
ServiceOutcomeBuildingPermit
RequiredDocumentation• Survey• LotGradingPlan• SitePlan• FloorPlans• RoofPlan• TrussDrawingsandFloorJoistPlan• ElevationsandCross-Sections• ConstructionDetailsandNotes
WhatisrequiredforNewHousesPermit?
• Mechanical(HVAC)Permit• PlumbingandDrainPermits
CityofTorontoWebsiteZoningBylaw:www.toronto.ca/zoning
ZONINGINFORMATION
HowtoaccesstheNEWZoningBylawZONINGINFORMATION
ResultPageZONINGINFORMATION
FRONT LOT LINE
FRONT LOT LINE
REAR LOT LINE
SIDE
LO
T LI
NESID
E YARD SE
TBACK
SIDE Y
ARD SETBA
CK
SIDE Y
ARD
SETB
ACK
SIDE LOT LIN
E
SIDE Y
ARD
SETB
ACK
SIDE LOT LIN
EREAR LOT LINE
FRONT YARD SETBACK
REAR YARD SETBACK
Lot Line means any boundary of a lot.
Front Yard Setback means a horizontal distance on a lot measured at a right angle from the front lot line to the nearest main wall of a principal building or structure.
Side Yard Setback means a horizontal distance on a lot measured at a right angle from the side lot lines to the nearest main wall of a principal building or structure.
Rear Yard Setback means a horizontal distance on a lot measured at a right angle from the rear lot line to the nearest main wall of a principal building or structure.
A
B
AB
C
C
C
D
D
Setback Definitions
Setbacks
© 2012 City of Toronto. All Rights Reserved
City of Toronto Draft Zoning By-law
FRONT LOT LINE
FRONT LOT LINE FRONT YARD SETBACK
X
Y
Z
(X + Y) ÷ 2 = ZZ = Front Yard Setback
In the Residential Zone category, if a lot is located:
Beside one lot in the Residential Zone category, and that abutting lot has an existing principal buildingfronting on the same street and located, in whole or in part, 15.0 metres or less from the subject lot, theminimum required front yard setback is the existing front yard setback of that principal building on theabutting lot; or
Between two abutting lots in the Residential Zone category, each with an existing principal buildingfronting on the same street and located, in whole or in part, 15.0 metres or less from the subject lot, theminimum required front yard setback is the average of the existing front yard setbacks of those principal buildings on the abutting lots.
A
B
Front Yard Setback Averaging
Setbacks
© 2012 City of Toronto. All Rights Reserved
City of Toronto Draft Zoning By-law
ESTABLISHEDGRADE
FRONT YARDSETBACK
0.01m0.01m
BUILDINGHEIGHT
BA
B
A
B
AAA
Established Grade means the average elevation of the ground measured at the two points where the projection of the required minimum front yard setback line is 0.01 metres past each side lot line.
Determining the Height of a Principal Building:Unless otherwise stated in this By-law, in the Residential Zone category the height of a principal building is measured as the distance between the elevation of the established grade and the elevation of the highest point on the building.
EG
H
H
EG
What is Established Grade?
Building Height
(A + B) ÷ 2 = EGEG = Established Grade
© 2012 City of Toronto. All Rights Reserved
City of Toronto Draft Zoning By-law
© 2012 City of Toronto. All Rights Reserved
What is Lot Coverage & Maximum Building Depth and Length?
Performance Standards City of Toronto Draft Zoning By-law
A Lot Coverage B
C
Building Depth
Building Length
FRONT YARD SETBACK
BC
A
FRONT LOT LINE
REAR LOT LINE
SIDE
LO
T LI
NE
SIDE
LO
T LI
NE SIDE LO
T LINE
SIDE LOT LIN
E
Lot Coverage means the portion of the lot that is covered by any part of any building or structure on or above the surface of the lot.
Building Depth means the horizontal distance between the front yard setback required on a lot and the portion of the principal building's rear main wall furthest from the required front yard setback, measured along a line that is perpendicular to the front yard setback line.
Building Length means the horizontal distance between the portion of the front wall of a principal building on a lot closest to the front lot line, and the portion of the rear main wall of the building closest to the rear lot line, measured along the lot centreline. If the relevant parts of these walls are not intersected by the lot centreline, the measurement is from the point on the lot centreline where a line drawn perpendicular to the lot centreline connects with the relevant part of the wall.
A
B
C
What is Floor Space Index (FSI)?
Performance Standards
© 2012 City of Toronto. All Rights Reserved
City of Toronto Draft Zoning By-law
LA Lot Area
A FSI = 1.0Covering = 100% of lot on 1 floor
B FSI = 1.0Covering = 50% of lot on 2 floors
C FSI = 1.0Covering = 25% of lot on 4 floors
Floor Space Index (FSI) means the gross floor area of all buildings on a lot divided by the lot area. FSI
© 2012 Copyright City of Toronto. All Rights Reserved
How is Gross Floor Area (GFA) Calculated?
City of Toronto Draft Zoning By-lawPerformance Standards
1 First Floor CB Garage (NOT INCLUDED IN GFA)
A Basement (NOT INCLUDED IN GFA)
2 Second Floor
Gross Floor Area means the sum of the total area of each floor level of a building, above and below grade, measured from the exterior of the main wall of each floor level. 10.5.40.40.(1) Floor Area
espite the de nition of gross floor area in this y law, for a lot in a Residential Zone category, the gross floor area of a residential building, other than an apartment building:
(A) does not include the area of the basement, unless the elevation of the established grade is higher than the average elevation of grade along the rear main wall of the residential building by 2.5 metres or more, in which case 50% of the gross floor area of the basement is included in the calculation of gross floor area for the building,
( ) does not include the area used for required par ing,
(C) does not include the area used for par ing, to a maximum of two parking spaces for a detached house on a lot with frontage greater than 12 metres.
GFA
A
B
C
7.2m
10.0m
ESTABLISHEDGRADE
BUILDINGHEIGHT
ESTABLISHEDGRADE
BUILDINGHEIGHT
A detached house in an RD zone that has a roof with a slope of less than 1.0 vertical units for every 4.0 horizontal units, for more than 50% of the total horizontal roof area; the maximum height is 7.2 metres and the building must have no more than two storeys.
A detached house in an RD zone that has a roof with a slope greater than 1.0 vertical units for every 4.0 horizontal units, for more than 50% of the total horizontal roof area; the maximum height for a principal building or structure on a lot is the numerical value shown in metres on the Height Overlay Map. If the lot is in an area with no numerical value shown on the Height Overlay Map the height is to a maximum of 10.0 metres .
A
B
A B
Less than 1:4hallow or flat roof
Maximum Height = 7.2m
1:4 or GreaterSloped roofMaximum Height = 10.0m
What is a Sloped Roof and a Flat Roof?
Building Height
© 2012 City of Toronto. All Rights Reserved
City of Toronto Draft Zoning By-law
© 2012 Copyright City of Toronto. All Rights Reserved
Determining Attic Space GFA
City of Toronto Draft Zoning By-lawPerformance Standards
1.4m 2.1m (min. 80%)ATTIC
NOT INCLUDED IN GFANOT INCLUDED IN GFA
Basement (NOT INCLUDED IN GFA)
Gross Floor Area means the sum of the total area of each floor level of a building, above and below grade, measured from the exterior of the main wall of each floor level. 10.5.40.40 (2) Floor Area
In the Residential Zone category, the gross floor area of a residential building includes floor area located within the building above the main walls, such as in an attic, if it:
(A) is accessed by means of a permanent stair case or mechanical elevating device, or
(B) has a vertical clearance of more than 1.4 metres between the ceiling joists below and the roof rafters, if at least 80% of such area has a vertical clearance of more than 2.1 metres and an area of at least 10 square metres.
Exclusion of Certain Floor Area Within an Attic10.5.40.40 (3)
In the case of a floor area which meets the conditions set out in regulation 10.5.40.40(2), if this area or a portion of this area is used for the purpose of housing or maintaining mechanical equipment for the building and does not exceed 20 square metres, the floor area or portion thereof is not included in gross floor area calculation.
GFA
FA
X
Term DefinitionCertificateofoccupancy Adocumentissuedbya
governmentdepartmentoverseeingconstructionandbuildingsafetystatingthatastructurecomplieswithlocalbuildingcodesandissafeforuseandhabitation.
TERMINOLOGY
Term DefinitionHVAC(hvac) Heating,ventilating,andair
conditioning.Acommonabbreviationusedinrealestatelistingsandclassifiedadvertisements.
TERMINOLOGY
Term DefinitionRawlandBareland
Unimprovedland;landinitsunusednaturalstatepriortodevelopmentorconstructionofimprovementssuchasstreets,lighting,sewers,andthelike.
TERMINOLOGY
Term DefinitionShell Acommercialorresidential
buildingwithafinishedexteriorfacadeandlandscapingandunfinishedinteriorunits,toallowfortenantimprovements(TI)andtheinstallationoffurniture,fixtures,andequipment(FFE).
TERMINOLOGY
Term DefinitionTenantimprovements(TI) Interiorstructuralchanges
madetoacommercialorresidentialbuildingpriortotenantoccupancy.
TERMINOLOGY
WARM-AIRDISTRIBUTIONSYSTEM
TERMINOLOGY
Drain,Waste,VentSystem
TERMINOLOGY
ElectricalSystem
TERMINOLOGY
FoundationSystemTERMINOLOGY
TERMINOLOGY
BuildingThermalEnvelope
PartsofRoofSystemTERMINOLOGY
FloorFramingComponentsTERMINOLOGY
TypicalWallSection
TERMINOLOGY
THISPRESENTATIONPROVIDEDBYREMAXHALLMARK&WALLZCORPINC.
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