Investors are leaving preconstruction condos behind and the Home of the Week: Canadian real estate news for December 6

Here are The Globe and Mail’s top housing and real estate stories this week and one home worth a look.

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Investors have fled preconstruction condos and no one knows when they are coming back

As costs begin to mount, investors are losing interest in preconstruction condo units, with value no longer skyrocketing every year and rent no longer covering the cost of owners’ loan payments and other expenses. Waning investor interest is raising questions about whether the market will ever return to its previous strength, or if the current slump could represent a long-term structural shift as burned investors look elsewhere for safer returns, writes Rachelle Younglai. Experts predict interest in preconstruction condos will remain weak until they become money makers again – for that to happen, prices have to come way down, interest rates have to drop further, demand has to increase and rents have to go up.

Mortgage rule changes could see a rare December jump in the real estate market

While the real estate market traditionally tapers off in December, new changes to Canada’s mortgage rules could see a new influx of deals coming in later this month, writes Carolyn Ireland. The new rules, which are slated to come into effect on Dec. 15, aim to lower the financial hurdles for buyers who want to purchase a home in the $1-million to $1.5-million range. Some realtors said that buyers have already been in touch to start the mortgage pre-approval process, ready to pounce when the new rules kick in.

Opinion: Bait-and-switch mortgage rates are everywhere. Here’s how to cut through the hype

Canada’s high-cost housing market forces buyers and owners to find the best possible mortgage rate, writes personal finance columnist Rob Carrick. Search Google and websites from lenders, mortgage brokers and financial data aggregators will present you with rates that look great in comparison to what banks typically offer. But those great rates are available only to specific borrowers, not to everyone, which can leave prospective buyers disappointed and deflated. Avoid mortgage rate letdown by understanding how discounts are handed out by lenders – where you find yourself in this spectrum of discounting depends on several factors, but none are more important than whether your mortgage is insured against default.

Condo buyers in Toronto win judgment in faulty status certificate case

A $75,000 court judgment against a condominium corporation over “fraudulent” documents highlights the risks of not examining closely the mandatory cost disclosures most condo sales require, writes Shane Dingman. A Toronto couple contested a demand from their condominium corporation for tens of thousands of dollars in repairs and removals. When they asked for proof they had been notified of these fees during their purchase, they were sent what the judge said was an “altered” and “falsified” document. He ruled in favour of the couple, and said, “the condominium corporation and its agents engaged in a shocking abuse of trust and power.” Experts say the decision was intended as a deterrent for others in the condo industry.

Home of the Week: A Toronto home with the office next door

408 Ontario St., Toronto – Full gallery here

Working from home was seen as the ideal solution for some workers who could join meetings from their living rooms, but what if “the office” is right next door? An unusual duplex in Toronto’s Cabbagetown neighbourhood offers a unique choice. Part of the building is a three-bedroom home, while the other is a commercially zoned office unit. Up the black and white painted stairs you enter a very tall living room with elaborate plasterwork, a massive Art Deco-style fireplace in the corner with tall narrow windows facing the street side of the house. The kitchen feels like it’s hosted a foodie video shoot or two with its mix of stainless steel and a butcher-block countertops. An island separates the kitchen from the hallway and dining room, which looks through a glass railing to the living room just below.