Live Better,
Love Life
With over a decade of experience in residential real estate, Alex Mahallati is a dedicated Realtor, builder, and investor with a comprehensive understanding of the Greater Toronto Area market. His career has always been rooted in hard work, a value instilled in him by his parents, who owned and operated several successful Subway franchises along Dundas Street in Oakville. A proud Oakville resident since 1997, Alex has developed a strong connection to the community, both personally and professionally.
Alex has now moved back to Oakville with his wife and partner, Noelle, and their baby boy to be closer to family and further deepen his ties to the area. With a background in construction engineering, Alex offers a unique skill set that allows him to guide clients through all aspects of the real estate process. Whether they are buying, selling, leasing, building, or investing, Alex’s diverse expertise ensures his clients receive comprehensive and tailored solutions.
Known for his integrity and dedication, Alex has helped countless clients navigate the complexities of the real estate market, always keeping their best interests at heart. His passion for real estate, combined with his technical knowledge, makes him a trusted partner for any real estate needs.
What's Your Home Really Worth?
FIND OUT FAST AND FREE
Enter your address below
MY BLOGS
Dr. Jack Mitz's in-depth analysis of the capital gains tax hike highlights a critical issue: it won’t just affect the wealthy
Dr. Jack Mitz's in-depth analysis of the capital gains tax hike highlights a critical issue: it won’t just affect the wealthy—it could significantly impact middle-class Canadians as well. While capital gains taxes are often seen as a tool to target the wealthiest, Mitz demonstrates how even those with modest incomes can be swept into higher tax brackets during significant asset disposals. Historically, capital gains have been taxed less than other income forms. However, with the 2024 federal budget proposing to increase the capital gains inclusion rate from one-half to two-thirds for gains exceeding $250,000, many taxpayers—including middle-class investors—could face steep tax bills at crucial moments in their lives. These large, one-time gains, such as selling a home, business, or farmland, might push middle-income earners into a higher tax bracket temporarily, only for them to return to their usual earnings in following years. As Mitz points out, most Canadians only experience such large capital gains once or twice in their lifetime, meaning they aren’t consistently in the "wealthy" category. Mitz's analysis emphasizes that nearly 80% of Canadians who report capital gains above $250,000 only do so once or twice in their lifetime. This means a significant portion of those affected by the new tax rate will otherwise have middle or modest incomes. The government’s prediction that only a small number of taxpayers—roughly 40,000 individuals and 307,000 corporations—will be impacted annually might be misleading. Mitz estimates that on a lifetime basis, around 1.26 million Canadians (4.3% of tax filers) could be affected by the new capital gains tax rate. The broader economic impact is also troubling. Mitz explores how capital gains taxes, particularly corporate ones, can reduce equity values, discourage investments, and lead to lower wages or higher consumer prices. With many Canadians investing in domestic assets and corporations, the hike in capital gains taxes could lead to reduced dividends and suppressed share prices, affecting pension plans, savings accounts, and overall wealth accumulation. The capital gains tax hike is meant to ensure that the wealthiest pay their fair share, but Dr. Mitz's deep dive shows that the middle class—those who don’t regularly realize large capital gains—could bear the burden too. His analysis echoes Adam Smith’s wisdom from 1776: taxes on movable capital, such as stocks and shares, tend to have broader economic consequences.
The Bank of Canada’s Interest Rate Cut: A Turning Point for Real Estate Buyers?
On Wednesday, the Bank of Canada took a significant step by cutting its key policy rate by 50 basis points, bringing it down to 3.75%. This marks the fourth consecutive rate cut since June, driven by inflation data and a shift in focus from lowering inflation to maintaining inflation targets. Experts believe this move could spark increased buying activity in the real estate market, though some buyers may still hold off until the final rate decision of the year. Renewed Interest in the Housing Market Phil Soper, President and CEO of Royal LePage, commented on the impact of the rate cut, noting that the housing market had been sluggish in many regions due to high borrowing costs. However, with this more aggressive cut, Soper believes the market could quickly shift. "With every cut to the overnight lending rate, more homebuyers are expected to come off the sidelines," Soper said. He added that rising demand could push home prices up, eliminating the advantages of lower borrowing costs. In his view, an early spring market is now a possibility. Buyers May Still Hold Off While some buyers may act quickly, others may wait for further rate cuts or the last rate announcement of the year. Victor Tran, a mortgage and real estate expert with RATESDOTCA, highlighted the uncertainty that remains. "Many will wait for the final rate announcement of the year before making a move," Tran said. He noted that buyers are hesitant to act until they believe the market has bottomed out, though it's difficult to predict market timing with any accuracy. Favorable Conditions for Buyers Leah Zlatkin, a licensed mortgage broker, emphasized that the combination of the recent rate cut and upcoming mortgage rule changes in December creates favorable conditions for buyers. Zlatkin warned, however, that waiting for further rate cuts might mean entering a hotter market. "Once rates decrease to a point that the majority of buyers are comfortable with, the housing market will heat up quickly, and prices will rise," she said. She suggests that potential buyers consider shorter-term mortgage options to secure their place in the market before prices spike. Impact on Mortgage Holders For those renewing mortgages, the cut provides some relief. Alana Riley, head of mortgage, insurance, and banking at IG Wealth Management, pointed out that the cuts in 2024 and 2025 are expected to mitigate the impact of higher renewal rates. While homeowners will likely still face higher rates than their current ones, the situation is expected to be more manageable than at the start of the rate cut cycle. Psychological Shift in the Market Experts, including Tran, predict a "psychological shift" among buyers and sellers. If there’s an uptick in sales or home prices, buyers may rush to act before prices rise further, potentially leading to a busy winter and spring market in 2025. In summary, the Bank of Canada's latest rate cut is a significant step that could drive new activity in the housing market. However, many potential buyers may hold off until more clarity emerges from the Bank's final rate announcement later this year. With mortgage costs becoming slightly more affordable, experts are keeping a close watch on how the market will respond in the coming months.
OUR HOUSING CRISIS: WHY ARE SO MANY NEW BUILDINGS GOING BUST?
A housing development in Kitchener, Ontario was planned to add more than 500 residential units to an area with a tight housing market. The project initially seemed promising, with city approval granted in 2020. The first tower was scheduled for completion by 2024, but this didn’t happen. Only one of the four towers began construction, and it remains unfinished. This project is just one of over 200 housing developments that went insolvent last year alone. The insolvency rate is nearly 50% higher than the 10-year average. Many of these developments are large, with the potential to house thousands of people, and the real estate market is suffering as a result. The situation is expected to worsen at a time when housing demand is critical. So, what’s going wrong? Typically, a developer buys land, drafts plans, and gets city approvals. Before construction begins, they start selling units, usually requiring buyers to pay 20% of the price upfront. Developers need to pre-sell at least 70% of the units to secure the bank loans necessary for construction. Reaching this pre-sale threshold is a crucial milestone. If all goes well, construction moves forward, buyers close on their sales, and the bank gets paid back with profits. But in recent years, developers have faced a perfect storm of challenges, leading to many lucrative projects becoming unviable. First, the pandemic. The surge in demand and skyrocketing prices were beyond expectations, creating immense pressure. Between 2020 and 2023, building in Canada became more expensive than ever. According to RBC economists, industry costs increased by more than 50% across the country. For example, the cost of concrete rose by 55%, and structural steel by 53%. The entire construction ecosystem was stretched thin trying to keep up with demand. Labour costs also spiked, with wages increasing by nearly 10%—double the pace of other industries—as construction companies competed for a limited pool of workers. In 2022, more than 28,000 construction jobs went unfilled in Ontario, a 33% jump from the previous year. These shortages caused significant delays, especially for projects that began before the pandemic. As a result, developers who couldn’t finish their projects on time faced massive cost overruns. On top of rising material and labour costs, developers were hit with increasing fees and taxes. In 2019, development fees for a two-bedroom apartment were around $45,000 per unit. By 2024, those fees had jumped to about $69,000 per unit—a 51% increase in just five years. For a large building with 500 units, this increase can amount to nearly $10 million in added costs before a single shovel hits the ground. And then there's interest—a dreaded topic for any homeowner, let alone a developer. A half-million-dollar mortgage at 6% or 7% interest is daunting enough, but imagine interest on $30 million or more. The compounding effect of rising costs for materials, labour, fees, taxes, and interest has driven many projects to a breaking point. When a project fails, buyers who have already put down deposits can lose everything. Unless another developer steps in to rescue the project, there’s often little that can be done to recover. Meanwhile, inflation has driven up the price of individual units, so theoretically, developers could charge more to compensate for the higher costs, right? Not quite. The problem is that most of the units have already been sold at 2020 prices to secure the initial financing, leaving only a small portion of units available to sell at higher prices. In some cases, developers try to sell the remaining 20-30% of units at 30-40% higher prices to recoup their losses. However, it’s difficult to sell those remaining units at such inflated prices, especially when they are much higher than what earlier buyers paid. According to Urbanation, a real estate consulting firm, new condo sales in the Greater Toronto Area fell by 57% in the first half of this year compared to the previous year, and they are 72% below the 10-year average. This makes it almost impossible to sell the remaining inventory at higher prices. People tend to forget that there is a breaking point where buyers simply won’t pay inflated prices. This affects developers at every stage of the project. During the early pre-sale phase, developers could theoretically price in worst-case-scenario costs. But with interest rates so high, who’s buying at those prices? So, while it’s often said that the solution to the housing crisis is to build more supply, the reality is far more complicated.
- Any
- $ 100,000
- $ 150,000
- $ 200,000
- $ 400,000
- $ 800,000
- Any
- $ 200,000
- $ 300,000
- $ 400,000
- $ 600,000
- $ 1,000,000
- Any
- 1
- 2
- 3
- 4
- 5
- Any
- 1
- 2
- 3
- 4
- 5
- Any
- 1
- 2
- 3
- 4
- 5
- Any
- 1
- 2
- 3
- 4
- 5
10,000+ Featured Properties Available
- Default
- Price-High To Low
- Price-Low To High
- Newest Listings
- Beds (Most)
- Baths (Most)
- Year Built (Newest)
- Square Feet (Biggest)
- 1/6 62,082 SqFt$32Active
- 2 Beds 1 Bath$3,500Active
572 St Clair AVE W #Upper, Toronto C02, ON M6C 1A6
Listed by ICI SOURCE REAL ASSET SERVICES INC.
Single Family Home
- 1/8 84,182 SqFt$169,000Active
5511 Tomken RD #4-5, Mississauga, ON L4W 2P3
Listed by RE/MAX ABOUTOWNE REALTY CORP. BROKERAGE
Commercial
- 1/18 18424 SqFt$900Active
- 1/4 4652 SqFt$19Active
- $150Active
- $150Active
- 1 Bed 1 Bath$2,450Active
- 1/3 3790 SqFt$4,000Active
- 1/4 45,174 SqFt$7,500,000Active
- 1/33 332,053 SqFt$50Active
3495 Rebecca ST #108, Oakville, ON L6L 6X9
Listed by CENTURY 21 PEOPLE`S CHOICE REALTY INC.
Commercial
- 1,500 SqFt$10,000Active
- 1/5 5100 SqFt$750Active
- 1 Bed 1 Bath$2,250Active
- 1/9 9$179,999Active
- 12,376 SqFt$15Active
- 1/11 11
Free Account Required
Register or Sign In to View
*** SqFtRegister For Price
Address Not Disclosed
Commercial
- 1/9 9
Free Account Required
Register or Sign In to View
*** SqFtRegister For Price
Address Not Disclosed
Commercial
- 1/13 137,300 SqFt$11,500Active
- 1/3 31,610 SqFt$2,950Active
- 1/4 4
Free Account Required
Register or Sign In to View
*** SqFtRegister For Price
Address Not Disclosed
Commercial
- 1/11 11599 SqFt$57,995Active
- 1/4 491 SqFt$475Active
- 1/10 101,800 SqFt$2,400Active
GOOGLE REVIEWS
j
Tuc C
Ghada Ayoub