Will Toronto Kill the Ontario Municipal Board?

More often than not, a judge’s expertise is a good thing.

Something important may be about to happen.

Industry outsiders no doubt missed it, given the councillors’ headline-grabbing spat over the TTC that overshadowed most other local news last Monday.

But on the same day, the Toronto City Council asked the province to free the city from the Ontario Municipal Board’s jurisdiction, a measure that its proponents claim would give residents a greater say over what gets built in their neighbourhoods.

This isn’t the first blow to the OMB — only a few months ago, Mississauga called on the province to abolish the Board, which hears appeals of zoning decisions and frequently overturns council.

Indeed, the OMB is no stranger to controversy, having been accused of not keeping itself up-to-date and of acting in a quasi-judicial manner. Recently, a Toronto Star reporter went so far as to call it “a 19th century relic.”

On the other hand, the Building Industry and Land Development Association (BILD) says the current system works fine.

“In principle, BILD strongly supports the necessity of the Ontario Municipal Board, by providing an impartial, adjudicative tribunal, further removed from local political pressures,” wrote BILD in a letter addressed to the council.

Moreover, as this article notes, while the OBC is often accused of cozying up to developers, it has also taken decisions that defied corporate interests, such as when it kept Walmart out of Leslieville in 2009.

Local councils certainly have no planning or development training. Their agenda is often short-term, which can prevent them from seeing the big picture.

Given these limitations, I doubt councils will be able to handle disputes between NIMBYs and municipalities, and I worry that they will indefinitely tie up projects.

What are your thoughts?

Summary of BILD’s High-Rise Forum

Toronto Condo Sunset

As you no doubt know, the GTA condo market is on fire. This is good news for us in the industry, but does raise important questions, such as how long will prices continue to rise, and more importantly, whether we’re facing a bubble that could burst anytime.

Last Thursday, I attended a high-rise forum analyzing the GTA condominium market. Organized by BILD, the forum sold out quickly, which is hardly surprising given the significance of the topic at hand.

So if you couldn’t make it to the forum, you’ll likely appreciate the following summary.

According to a Condominium Market Survey that Urbanation carried out last December, 53% of developers, lenders, brokers and consultants surveyed worry about price growth.

Little wonder: the sold index pricing in the Toronto census metropolitan area is up 8% annually to $509 per square foot, compared with $388 per square foot only 4 years ago.

Of course, as the price has gone up, so has the investors’ share of sales, which may reach as much as 80%, according to some in the industry. Indeed, investors are now seeing an increase in incentives designed to lure them rather than homeowners, such as lower down payments, capped closing costs, and guaranteed rental programs.

The problem with rentals is that condo rental appreciation isn’t keeping up with the new index price growth — in fact, index rents declined in the first quarter of last year.

Add to this decline the possibility that investors will experience less price growth, and you get a scenario that could see the Toronto condo market disrupted.

In the end, although we may not have to endure a bubble burst, it pays to act in a way that will mitigate the risks. Possible measures include:

  • Keeping 15% to 20% deposits for all units regardless of projects’ percentages sold, eliminating extended deposit structures,
  • Eliminating free or inexpensive assignments, and
  • Keeping broker commissions at 4%.

What are your thoughts on the GTA condo market?

Do You Sell Benefits or Features?

Mason Homes' Green for Life

Who wouldn't?

I was very pleased to learn last week that Mason Homes won EnerQuality’s award for Best Green Marketing Campaign (which we developed).

Called Green for Life, said campaign highlights the immediate, practical benefits that homeowners can derive from living in a Mason home and a Mason community. These include increased health and well-being, as well as saving money thanks to reduced water and energy consumption.

In other words, Green for Life is first and foremost about comfort, economy, and happiness. Saving the environment takes a back seat to the daily reality of most people’s lives.

In this, Green for Life differs from other builders’ green-themed campaigns that make the conservation of natural resources their main selling point.

This doesn’t make either product significantly different from the other. For example, most of these homes are Energy Star qualified. It’s their branding that differs.

To be sure, Mason homeowners are preserving the planet and reducing energy consumption. It’s just that they were sold on a different benefit.

My point? You don’t have to be different to be branded and perceived as different. More importantly, you’re better off not promoting features—it’s by drawing attention to benefits that you will succeed in creating perceived value.

As the article announcing Mason Homes’ award said: Green for Life and Mason Homes did “outstanding work in successfully integrating energy efficiency and a green message into their overall marketing program.”

Many people in the industry still work hard at selling features. In our experience, it’s the benefits that people want to hear about.

Always Put Yourself in the Buyer’s Shoes

Creating a new campaign is a very exciting process. I’m sure we all agree about that. Nothing compares with the brainstorming, the tossing of ideas, the criticisms, the jokes that happen when you work hard with your team.

One of the challenges that makes this process so fun is trying to present every campaign in a new, thrilling manner.

Treetops is a new home community in Alliston, Ontario

Take empty nesters. Their kids have moved out. They’re either retired or close to it. Arguably, their outlook of life is not as eager or ambitious as when they became parents or bought their first home.

This is probably why many campaigns aimed at the empty-nester market seem quiet and discreet and almost crusty. Thinking the campaign should mirror what’s perceived as the demographics’ lifestyle, many marketers come up with campaigns that are at best virtually undistinguishable from one another, and at worst just plain ineffective.

Likewise, when it comes to first-time homeowners, many marketers try to conjure a vibrant, sexy lifestyle that they believe reflects the one their target demographic has (or wants to have).

What do consumers want?

All too often we forget in the advertising and marketing industries that people don’t think of campaigns. In fact, they don’t even care for campaigns. They just think about lifestyles.

Yet many new home community campaigns barely touch on lifestyle, promoting instead features and floorplans. Of the few that do actively sell lifestyle, most end up looking generic and uninspired.

So, the first step towards making your target consumer choose the lifestyle you’re promoting is simply to put yourself in their shoes — to look at things from their perspective.

Sometimes, if you work hard enough, this can help you find a lifestyle that your target audience didn’t even know was possible, one that excites them and makes them happy.

In the case of the empty-nester market, our campaign for the Port Hope Golf & Country Club did away with tradition and painted an optimistic image, active image, featuring unexpected touches such as touchscreens in the sales office and musical lyrics peppered on the website.

As a result, Port Hope Golf & Country buyers felt empowered to live an active lifestyle, to understand and appreciate technology, and to feel optimistic about the years ahead.

Concerning first-time homeowners, our latest campaign, Treetops, also tries to break with tradition. The community itself will be extraordinary, featuring 1,800 semis and detached homes in Alliston, Ontario, all of them adjacent to the Nottawasaga Inn and Resort, which offers a stunning array of activities, and is surrounded by 50 acres of forest and parks.

That said, none of the aforementioned are the reasons why they’ll buy a Treetops home — they’ll do it because they want to partake in the lifestyle reflected in this video. It’s a lifestyle that’s not just about being active, but also about happiness and romance and joy. A lifestyle where a touch of the whimsical is present every day, and where life extends beyond your backyard into a fantastic community.

How do we make that happen? For starters, by putting ourselves in the consumers’ shoes.

Will You Ever be Wealthy Enough?

A recent Globe and Mail article gave me pause for thought. In it, the writer quoted a consumer poll that asked almost 4,800 people in Canada and the US whether they considered themselves wealthy.

Here’s what the pollsters found.

Almost 50% of the people polled who make between $50,000 and $60,000 said they’d consider themselves wealthy if they earned at least $100,000. Yet, of the people who actually do make $100,000 or more, only 16% thought of themselves as wealthy.

Is the owner a wealthy person?

It gets better: 43% of the people making over $100,000 said they’d need at least $250,000 a year to be wealthy. Twenty-four per cent said they’d need half a million, and 11% said they’d need at least one million.

The conclusion, it would seem, is that people are never satisfied. This is indeed what the writer herself concluded, as did some of the article’s readers.

Other commenters raised a good point, namely that wealth is not just about your income. For example, a person who earns $35,000 and has little debt is doubtless wealthier than another who makes $200,000 but has prohibitive expenses.

So it’s arguably true that some of the people who were polled aren’t wealthy — even if they’re making $100K.

One way or the other, it’s an undeniable fact of life that most people will never settle for whatever they have. It may be a whole lot better than what they had before. It may even be a whole lot better than what the vast majority of people in the world have. (In fact, if you live in Canada or the US, you automatically are better off than most human beings.)

No matter. Whatever you have now won’t do. You’ll always want more.

And that’s not necessarily a bad thing.

I’m not suggesting we should overwork ourselves to death. Nor am I saying we should take on expenses beyond our means. And I’m certainly not saying we should work to the point where we barely spend time with our family.

Yet if we didn’t want more, we’d still be back in the caves. We wouldn’t have evolved as much as we have. We wouldn’t have modern medicine and airplanes and heated homes and more food than we know what to do with.

Of course, this isn’t to say the world is perfect. Senseless wars are still fought. Children still die from preventable diseases. Women are still oppressed. Even more depressingly, these things will likely continue to happen for quite some time. Perhaps forever.

But the evidence is that these awful realities have decreased throughout the last few centuries — and will continue to decrease.

Why? Because we fought. We innovated. We wanted more — and we reached out and we got it. This is our basic impulse, and it can take us too far, but it can certainly improve our lives.

So next time someone asks whether you’re wealthy, realize that you probably are, and then go about becoming wealthier, not necessarily because you make more money, but maybe because you reduce your expenses, or because you put some of that money to use in a way that contributes to making someone somewhere wealthier.

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