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Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing December 04, 2018 63   0   0   0   0   0
Montreal might have one of Canada’s hottest real estate markets, but that doesn’t mean its high-rise condo investors are reaping the benefits. According to a Canada Mortgage and Housing Corporation report, upwards of 75% of investors in the new high-rises that have recently sprouted around downtown Montreal are in the red—the reasons being their mortgage payments, condo fees and annual taxes. Subscribe to CREW for the best in real estate news and insight – whatever the season. Use code HOLIDAYS2018 to claim your free festive gift.[1] “We had a sample of 375 condo units being rented out of the new high-rises in Montreal, and we see cash flow is mostly negative in those condos,” Francis Cortellino, a CMHC economist, told CREW. The number could be lower, though.Cortellino advises that the study presumed those buyers only put 20% down to purchase their units, but the reality is a number either put more money down or even purchased in cash. The report brings to mind a joint report from CIBC and Urbanation earlier this year that revealed 44% of Toronto’s condo investors were in negative cash flow—of which 45% were short by less than $500, and 20% between $500 and $1,000.In that case, investors were very likely banking on
Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing December 04, 2018 57   0   0   0   0   0
Would-be investors who remain wary of the Canadian real estate market’s price growth should take a measure of comfort in the results of a new study conducted by Chartered Professional Accountants of Canada (CPA Canada). The research found that the market’s fundamentals have robustness as their main feature, precluding any U.S.-style meltdown in the near future. Give the gift of real estate success this year – grab a seasonal CREW subscription. Use code HOLIDAYS2018 to claim your free festive gift.[1] “Beyond prices and debt levels, Canada shares far fewer similarities with the U.S.than you might think.This becomes very apparent when you look at just one measure:credit quality,” CPA Canada chief economist Francis Fong stated. Fong emphasized that seeing the U.S.crisis as a reference point for the possibility of a Canadian collapse would be futile due to the pre-eminence of different factors in the two markets. Read more:Canadian retail will be a great investment destination in 2019[2] The sheer volume of subprime mortgages issued to borrowers with low credit quality, who cannot afford to repay debt, is frequently cited as one of the leading causes of the U.S.breakdown. In comparison, Canada’s share of high-credit-quality clients increased from 66% in 2002 to 88% in 2017,
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Andrea FordAndrea Ford Updated December 03, 2018 753   0   0   0   0   0
Your tenants are the golden geese that provide you with a monthly golden egg, and your investment property is the nest they live in. Whether you manage your own property, are part of a rental pool with professional management or are an individual with property management in place, it’s important to keep your tenants happy and convert them into long-term tenants – what I like to call residents. Using the term ‘resident’ signifies a difference in the way that both the tenant and the landlord view the property. Generally, residents consider their dwelling to be more like their own home, and with that comes pride in your property. When I was a tenant (before I was a landlord), I found that when I was considered a resident, I was treated with more respect and, in turn, wanted to stay longer and treated the property with more respect – even though I was just renting. So, as a landlord, it’s in your best interest to elevate how you view and treat long-term tenants. Having quality long-term residents can minimize wear and tear on your property, as well as reduce turnover and the need to advertise, interview and vet new tenants (thereby saving you time and money). To achieve this type of relationship, and reduce many of the issues and hassles associated with real estate investment, follow my top 15 tips to keeping your tenants happy. 1. ...
Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing December 02, 2018 61   0   0   0   0   0
Canadian real estate investors are often dissuaded from purchasing American properties because of the exchange rate, but a lot of needless headaches can be avoided by receiving U.S.financing from select Canadian banks. “A $400,000 home in the U.S.will become $532,000CAD, so the makes sense to mitigate the impact of the weak Canadian dollar,” said Alain Forget, RBC’s director of business development in the U.S.“At $0.76, a lot of Canadians are backing out of purchases because they’ll still have to change their money at about 33% exchange.A lot of Canadians don’t know they can get U.S.financing from a Canadian bank like RBC, and for investment properties they rent out all year long we can finance 75% of that.But for a second home, if they use the property for six to eight weeks and want to rent seasonally for a few months, we can go with 20% down.” Canadians are investing increasingly south of the border, spending $10.5 billion last year. “It averaged $384,000, and that number can buy you a lot of real estate in the U.S.’s Sun Belt states,” continued Forget.“There’s a lot of opportunity in those markets to get three- or four-bedroom homes, or even nice townhomes with three bedrooms and 3,000 square feet in gated communities that have resort lifestyles.”
Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing December 02, 2018 65   0   0   0   0   0
A high-end property in Vancouver’s premier West End district will be put up for sale to the highest international bidder as part of Concierge Auctions’ December sale. The single-family, multi-level 6137 Collingwood Place, which boasts of a design by legendary Vancouver architect Kenneth McKinley, will be offered at Concierge’s online marketplace to Chinese property investors starting December 14.Bidding is expected to close at a live auction in Hong Kong on December 20 (December 19 Canada time). The 2,900-square-foot property was previously offered for $3.67 million – and taking updated zoning into account, the parcel offers substantial opportunities for expansion into a multi-family building, “either up to approximately 8,147 square feet,” Concierge said. Read more:Canada’s luxury property markets maintain strong performances[1] “Between its multi-family development potential, land assembly condo potential, location and superior design, the property itself appeals to a wide range of buyers,” according to listing agent Mark Wiens of Dracco Pacific Realty. “I believe a set auction date will induce the buyers who have already expressed interest to take action.I can personally attest to the extra exposure the property is receiving since starting the Concierge Auctions process.This has already led to enquiries coming from areas where a standard Multiple Listing Service listing would not have reached.”   Related stories:
Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing December 02, 2018 58   0   0   0   0   0
A 36-storey office tower touted by its developers as the tallest commercial building in Vancouver to date will feature the latest innovations to meet the “net zero carbon” emissions standard – a major step in Canada’s long-term program to combat the worst effects of global climate change. The 161.5-metre Stack tower by Oxford Properties Group will be among Canada’s very first buildings to pilot the new standard, a move that is anticipated to magnetize a greater volume of high-quality investment, according to head of real estate management Andrew McAllan. “There’s a convergence of interests in sustainable building.Some are altruistic and some are just good, old-fashioned capitalism,” McAllan told The Globe and Mail. Scheduled for completion by 2022, the complex will offer 540,000 square feet of office space.That volume of commercial space operating to the specifications of the most advanced green standards will cement Canada’s place as a worldwide leader in sustainable development, Oxford said. Read more:Vancouver office sector to see good inventory, falling vacancy[1] The building is the latest in Canada’s drive towards illustrating that environmental consciousness and high-class commercial spaces are a package deal.The Canada Green Building Council estimated that since 2004, it has certified over 3,600 LEED buildings nationwide and registered over 7,600. “Overall, Canada ranks very
Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing November 29, 2018 64   0   0   0   0   0
A confluence of government policy, affordability and extremely robust market fundamentals is impeding movement in Toronto’s rental market. The Canada Mortgage and Housing Corporation’s Rental Market Report for Ontario revealed that Toronto’s vacancy rate hasn’t changed much from the 16-year low recorded in 2017 (increasing from 1% to 1.1% in 2018), and that the year-over-year turnover rate recorded in October dropped. “The rental market is still pretty tight,” said Jordan Nanowski, a CMHC senior market analyst.“We saw average rent increase 4.9% and people are staying put as a result.The turnover rate has decreased substantially from 14.5% to 11.2% because the average rent for vacant units are 18% higher than occupied units.” The prohibitive cost of homeownership in the GTA has forced a growing number of residents into rental accommodations, of which the dearth is dire, and coupled with population inflow there simply aren’t enough rental units available. “It’s a function of very strong demand that is exceeding supply,” said Nanowski.“A lot of factors go into it, like housing prices, which are more expensive in the GTA, so people are turning to renting instead of owning.It’s also that there are higher borrowing costs with interest rates rising, and there’s less mortgage availability because of OSFI’s [Office of the Superintendent of Financial Institutions] new stress testing.”
Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing November 29, 2018 59   0   0   0   0   0
A throng of retirees, investors, and buyers from Canada’s major metropolitan areas should be credited for robust recreational property performance, according to a new report by Royal LePage. “Across our vast land are recreational regions that offer adventure, opportunities for creating priceless family memories and a simple refuge from the hustle and bustle of city life,” Royal LePage president and CEO Phil Soper said. The phenomenon was especially visible in Ontario, which saw Toronto and Golden Horseshoe residents gather in droves at the province’s cottage markets in search of the perfect seasonal getaway. Collingwood’s median detached home prices increased by 6.3% year-over-year (to reach $549,900), and condos by 5.4% (up to $407,700). “Torontonians, and those living west of the city in Cambridge, Guelph and Kitchener-Waterloo, make up the largest buyer segment in Collingwood, and the region is seeing increased sales activity from these purchasers,” Royal LePage Locations North broker and manager Rick Crouch stated.“Recreational property buyers are choosing Collingwood for its year-round amenities, such as access to private ski resorts in Blue Mountain, bicycling clubs and hiking trails.” Read more:Retirees’ influence heating up recreational home prices[1] Another leading recreational province was Quebec, which magnetized buyers and investors through its strong economic performance, consumer confidence, and geographic features. “Proximity to the slopes
Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing November 29, 2018 66   0   0   0   0   0
While Montreal’s average home sales price considerably increased by 6.29% year-over-year in October, historical trends will quash any fears that the market is headed towards a state of potential meltdown, the Canadian Real Estate Association assured. The last peak that Montreal reached prior to last month was June 2010’s annual price growth of 8.89%.This is a positively bygone era compared to Toronto and Vancouver’s peaks, which were on April 2017 (31.43% increase) and July 2016 (32.61% growth), respectively. In addition, Montreal’s prices grew by 41.19% over the past 10 years, a rate less than half that of Vancouver (96.98%) or Toronto (113.34%). Read more:Montreal housing market continues hot streak to 2020[1] “Montreal real estate price growth is attracting attention since it leads the country,” Better Dwelling noted in its analysis of the CREA numbers.“Except Montreal has lagged Toronto and Vancouver significantly over the past few years.” Indeed, Montreal’s average home price was at $350,000 as of October.Toronto ($766,300) and Vancouver ($1,062,100) continued to host Canada’s most expensive housing markets.   Related stories: Montreal to grow increasingly unfriendly to first-time buyers Montreal’s largest mixed-use complex to arise soon[2][3]   Are you looking to invest in property?If you like, we can get one
Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing November 27, 2018 68   0   0   0   0   0
General Motors’ announcement that it’s slashing as many as 2,500 jobs in Oshawa will likely have a temporal chilling effect on the local market, and that presents an opportunity for seasoned investors. “I know of two deals that were conditional where people pulled out as a result of this, and I believe that for the next three to six months there’s going to be a lot of investors sitting on sidelines waiting to see what’s going to happen in marketplace,” said Michael Dominguez, a sales representative with REMAX Jazz in Oshawa, and owner of company name is Doors to Wealth Group. “My advice is to take advantage of this opportunity because many novice investors will sit and watch what happens.” News of the job cuts broke Sunday evening, and as of Monday, Dominguez had already fielded a number of phone calls from worried investor clients, whom he reassured. “The sly is not falling, doom is not setting in,” he said.“Stay calm is the message I’m delivering.” During its peak, GM employed over 20,000 people in the Oshawa area and today there aren’t even 3,000.Moreover, Oshawa has changed drastically since the plant’s heyday. “There have been changes over the last 10 to 15 years where plants have shut down
Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing November 27, 2018 65   0   0   0   0   0
Statistics Canada reported that the national retail sector beat earlier predictions of flat growth with a 0.2% increase in activity last September, despite some evidence of sluggishness in the third quarter. Food and beverage retailers stood at the vanguard with a 0.9% increase, along with car and clothing outlets. During the same month, retail sales also increased in 6 of 11 subsectors tracked by StatsCan.These accounted for 75% of September’s retail trade, the agency told Bloomberg. These numbers dovetailed with a new Morguard Corporation report, which found that the powerhouse retail segment will have a vigorous 2019, defying risks such as mixed leasing performance. Read more:Record investment in this sector will continue in 2019[1] “While retail sales growth continues to moderate, properties with development or repositioning potential are expected to generate strong interest among the investment community looking ahead to 2019,” Morguard explained. “Sustained economic expansion over the next few years bodes well for the Canadian commercial real estate sector as a service provider to the economy.Canadian commercial property sales activity will remain robust over the near term, against a backdrop of positive overall sector performance.” Together, all of the gains along with the good prospects helped offset the 1.1% decline in gas station sales in September,
Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing November 27, 2018 66   0   0   0   0   0
Data from Urbanation indicated that Toronto condo rent rates increased by 7.6% on an annual basis to reach an average of $2,385 in Q3 2018, and by 17% for newly available purpose-built units. Long considered a haven for the city’s affordability seekers, the rental market is becoming less friendly to all but the wealthiest families. “We’ve reached a point now where given the amount of people, industries we’re attracting, we are already becoming terribly unaffordable for everyone,” University of Toronto professor Richard Florida told Bloomberg.“We’re at a crisis and we don’t even realize it:Our transit, traffic problem and housing problem are urgent matters.” “Everyone’s getting priced out,” he added.“My students at the Rotman School of Management in the University of Toronto, who are going to be some of the most successful students in Canadian business, are now saying it’s doubtful they could ever afford a single-family home.” Read more:Renters deserve adequate protection from housing risk[1] A scarce supply of rental units is not helping matters, with Toronto’s apartment vacancy rate currently around 0.5%. “Homelessness is growing, couch-surfing is growing and this will have a lot of pressure on families and on the city itself,” according to Alejandra Ruiz Vargas of the low-and-moderate-income advocacy group Association of Community Organizations for
Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing November 25, 2018 64   0   0   0   0   0
All too often, amenity spaces are banal.However, a New York-based company is looking to change that using the Greater Toronto and Hamilton Area as its Canadian springboard. hOM is a real estate technology vendor that teams up with landlords in both the residential and commercial sectors to develop holistic amenities that emphasize emotional and physical health.Established four years ago in New York, where it grew to 35 employees and manages 90 properties with 45 landlords, hOM believes Toronto is amenable to its concepts. “We work with property managers to provide a tenant experience that comes in the form of group fitness and wellness classes and then our community lifestyle events,” said Lilli Markle, director of business development at hOM.“We consider ourselves managers in that we have tech platforms that support the communication of our programming and data collection that positions the value to the landlord as an actual ROI.We’re able to translate the data from our tech platform and survey and interface directly with the users, then present the data to the landlords.It allows landlords to retain tenants, which over time saves operation costs and leasing costs” hOM has only officially partnered with Cadillac Fairview in Toronto, although it’s in discussions with other companies.In Toronto’s TD Centre, hOM is going to transform an underused section into
Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing November 25, 2018 68   0   0   0   0   0
With ever-growing prices pushing more and more Canadians out of the single-family home segment, renting has become an increasingly popular choice in the hottest markets, a development that the government should begin responding to in earnest. Vancouver-based advocacy group Generation Squeeze is calling for regulatory changes that would grant tenants as much long-term security as home owners. Among the most important issues is supply, thus the need to develop more purpose-built, affordable rental housing. In its analysis of September data from Statistics Canada, real estate information portal Point2 Homes reported that the home ownership ratio nationwide fell for the first time in nearly 50 years, shrinking by 1.2% between 2011 and 2016 to reach 67.8%. Read more:Rental demand to boost further apartment construction – CMHC[1] A boosted rental inventory would give more Canadians the opportunity to enjoy the unique benefits of renting, according to Housing Matters founder Chris Spoke. “When you think about things like labour mobility, being flexible enough to move to where the opportunity is, you’re less tied down.That’s something that you see as we extoll the virtues and benefits of home ownership — you do see less labour mobility and less flexibility on these fronts than societies that have higher rental rates,” he told the
Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing November 25, 2018 59   0   0   0   0   0
Devimco Immobilier, in cooperation with the Fonds immobilier de solidarité FTQ and Fiera Properties, has announced the development of the MAESTRIA mixed-use project, which will be the largest of its kind so far in Montreal’s Quartier des spectacles. Construction of the 2 towers (51 and 53 storeys tall) will commence by the end of next year.The entire complex will offer 1,000 condo units and 500 rental spaces. Marketing of units will start on February 2019, with the spaces offered ranging from 300 up to 2,500 square feet.MAESTRIA will also have 512 interior parking spaces, along with a diverse selection of high-class amenities. Read more:Montreal to grow increasingly unfriendly to first-time buyers[1] The $700-million development will be accessible to Jeanne-Mance, De Bleury, and Sainte-Catherine streets. “We are proud to be building a distinctive, avant-garde property that will help enhance the urban fabric of this booming arts and culture district,” Devimco Immobilier president Serge Goulet said. “With this landmark project, we intend to maintain the Devimco tradition of creating a living environment with mixed uses that will serve project residents as well as visitors to this highly popular part of Montreal.” Are you looking to invest in property?If you like, we can get one of our mortgage experts to
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