Tag Archives: RECO

Consider getting your Ontario real estate license by taking courses from OREA before the transfer to Humber

Opinion Piece: What follows is nothing more than an “opinion piece”. That said, my “opinion” will make sense to some people

The real estate may be slowing but …

Canada’s real estate boom has been fueled by artificially low interest rates. The low interest rate environment has resulted in the following:

1. It has been harder to get a return from money and certain financial assets. This has been painful for people living on pensions and a small investment portfolio.

2. Low interest rates have lowered the cost of home ownership, which has increased the demand for real estate.

3. The increased demand for real estate has led to huge price increases.

4. The increase in prices has increased the cost differential between renting and owning.

5. Renting is now a comparatively better deal. This has increased the demand for rentals.

6. The ebb and flow (ups and downs) continues …

7. It is now harder to make a good living (the easy money is over) as a “real estate sales person”.

8. More and more “real estate agents” will seek other kinds of employment. Many of then will wish to reduce their costs by “Park their real estate license” with a broker who is NOT a member of “organized real estate“. Of course they will have to stop using the “trademarks owned by organized real estate”.

9. Some real estate agents will leave the profession completely. There will be less demand for “real estate as a career”.

10. Remember that your real estate license has economic value. You worked hard for it. You have invested lots of money in it. You have made lots of money from it.

The rules and procedures for getting an Ontario Real Estate license have changed in Ontario. Starting in 2019 “educational function” will not be handled by OREA but will be transferred to Humber College. I suspect that is will be more difficult and more expensive to earn an Ontario Real Estate license after Humber takes over the educational function!

My advice:

Invest in getting you real estate sales and/or brokers license NOW while the program is still being run by OREA!

For many the first step will be taking the OREA admissions test. Consider how to best prepare for and pass the OREA exams!

By beginning the process now you will acquire an asset with significant economic value at a time when it is easier to earn it!

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As goes the #Torontorealestate market, so goes the number of “real estate agents” working in the Toronto market

When the real estate market goes up…

But, what goes up goes, down. When the real estate market goes down …

Whether the “real estate boom” is over or not …

It’s clear that it will harder for Ontario real estate agents to make a decent living. Even if the “real estate market” continued it’ frenzied pace, there are more and more “real estate agents” chasing the supply of listings and the new buyers. More and more buyers are attempting to sell their properties outside the conventional model. They are attempting to sell themselves by using discount brokerages. In short, many sellers are are attempting to avoid the fees that they must pay to use the services of a “full service broker”. It’s time for Ontario real estate agents to consider carefully how real estate agents provide value to their clients.

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“Organized real estate” vs “non-Organized real estate”: Comparing the costs to maintain an Ontario real estate license

In order to maintain your Ontario real estate license you must:

  1. Maintain your registration with RECO (which has its mandatory fees); and
  2. Stay “employed” with an Ontario Real Estate Broker (which has its own set of fees)

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