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Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing January 29, 2019 103   0   0   0   0   0
With unpredictability characterizing much of the asset class this year, potential investors would do well to reconsider investing in Canada’s retail property segment, according to Avison Young’s 2019 North America, Europe and Asia Commercial Real Estate Forecast. In the mid-January report, Avison Young cautioned that vacancy in retail “remains in flux.” The chaotic conditions mainly arose from major failures among some large-scale retail chains, with a considerable proportion of the closures stemming from the ever-growing influence of e-commerce. “The focus on creating memorable consumer experiences will endure across the Canadian retail landscape in 2019.Significant investment in technology to track millennial behaviour is being made by retailers developing and enhancing their physical locations and online market shares while seeking the correct balance in the symbiotic relationship between bricks and clicks,” Avison Young principal and practice leader of research (Canada) Bill Argeropoulos explained. Read more:Canadian commercial investment to intensify this year[1] In a study released late last year, Morguard Corporation noted that leasing performance in retail has indeed become erratic recently, but added that the sector would still enjoy good performance despite these risks. A large contributor of this predicted strength will stem from the increased purchasing power inherent in a steadily recovering economy. “Sustained economic expansion over the next few years bodes
 
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Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing January 27, 2019 120   0   0   0   0   0
If you’re torn between investing in either RRSPs or real estate, don’t be. Calum Ross, a leverage wealth expert and VERICO broker with Mortgage Management Group—and author of The Real Estate Retirement Plan:An Investment and Lifestyle Solution for Canadians—says Canadians should invest in both.Ross will be discussing that and more at this year’s Investor Forum[1] on March 2 at the International Centre in Mississauga. “People have a tendency to think of either RRSPs or real estate investing for their retirement plan,” Ross told CREW.“The reality is that consumers need both.” The reason is that, in addition to diminishing rates of return, a growing number of Canadians these days don’t have defined contribution plans, which still don’t even give guaranteed payouts.Consequently, they need higher amounts of forced savings. “When you consider the vast majority of Canadians’ wealth is tied up in their homes, the only solution to RRSP, TFSA, RESP, or investment savings catch-ups is essentially in the home equity of their property,” continued Ross.“When you consider the fact that life expectancies now are moving towards 90 years old, the probability that your registered savings account lasts a lot longer than your mortgage is very high.What we’ve been doing is engineering investment products to ensure that the rate of return exceeds the cost of
 
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Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing January 27, 2019 121   0   0   0   0   0
With a $26-million federal investment, 14-storey Arts District will soon arise in Winnipeg. The project, announced last week by the federal government and local officials, will help relieve some of the pressure for more space that caters to the city’s affordable housing needs. Arts District is designed to provide 119 units for struggling middle-class families.Approximately 10% of the units will also be designed as barrier-free layouts. “This investment is wonderful news for the Winnipeg middle-income families that will move into these new affordable rental housing units.It will contribute to build a foundation for their social and economic success as well as help create new jobs and stimulate our local economy,” according to Robert-Falcon Ouellette, Member of Parliament for Winnipeg Centre. Read more:Majority of Canadians still hold on to dreams of home ownership[1] In Q3 2018, the median price of a condo unit in Winnipeg fell by 2.1% on an annual basis (down to $240,933).Despite this, affordability has been impaired by a considerable increase in condo fees, stemming from regulations mandating reserve fund studies for condo projects. “Demand hasn’t been strong enough to keep up as those units come onto the market, and this has caused some downward pressure on condo prices,” Royal LePage Prime Real Estate managing partner Michael
 
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Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing January 27, 2019 116   0   0   0   0   0
Multiple analyses have indicated that Canadian seniors are among the most active borrowing demographics, but a considerable number of them have in recent months expressed worry for the eventual fate of their home equity. This is despite the national reverse mortgage load reaching an unprecedented $3.48 billion outstanding in November 2018, roughly 31.68% annually and 1.85% higher on a month-over-month basis. The latest MNP Consumer Debt Index conducted by Ipsos found that 41% of Canadians are anxious about their current debt levels, and 43% are regretful over the amount of debt that they have taken on in their lives. “Seniors are usually on a fixed income, meaning a big loan isn’t likely to be paid quickly.At that age, they also aren’t likely to find new additional income streams either.That adds up to borrowers that will rack up interest for a very long time,” Better Dwelling stated in its analysis of the data. Read more:Growing number of PEI, BC locals burdened by insolvency[1] The OSFI noted that if the borrowing trend among seniors sustains itself, reverse mortgages will only become more popular over the next few years. A study by TransUnion in Q3 2018 reported that during the first quarter of that year, approximately 63% more
 
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Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing January 24, 2019 106   0   0   0   0   0
Although it may seem counterintuitive, cash flow is not the be all and end all of investing in real estate. “Everyone has such a cash flow mindset, and don’t get me wrong, cash flow is amazing and will help support a different lifestyle eventually, but making those dollars year-over-year is where the wealth comes from,” said veteran investor Lee Strauss of Strauss Investments.“If you have an extra $1,000 in your pocket every year, the return on investment is dismal and doesn’t even add up.But if you take $26,000 year-over-year, now we’re talking.” Strauss is, of course, alluding to tenants paying down a mortgage’s principal balance for the investor while the latter rides the property’s appreciation. “On average for a single-family dwelling, the principal pay down is going to be about $6,000 a year,” he said.“The other reason is you have an income-producing asset that is hedged against inflation, and that income-producing asset appreciates, on average, 5%. “If you purchase a $400,000 property and it goes up by 5% in one year, that’s $20,000 in the first year.Five percent appreciation plus mortgage pay down, which you’re not paying and will be about $6,000, is $26,000 in one year.” Mind, appreciation is a compounding factor. “After year three, you’re at about
 
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Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing January 24, 2019 120   0   0   0   0   0
B.C.’s housing markets continue to be national top performers in the most important metrics, but December data from Statistics Canada showed that while the provincial population exceeded 5 million for the first time, the territory also lost about 1,200 people in Q3 2018. A major contributing factor to the outbound flight is the throng of young professionals leaving for more affordable housing elsewhere in the country, according to Finance Minister Carole James. Speaking to The Canadian Press, James stressed that “there’s no question that Vancouver is facing a brain drain.” “Crisis is not too strong a word to describe the challenges we are facing, not just in Vancouver, but other urban settings around our province.” Vancouver’s prices bear out these observations:The REBGV’s December report showed that the average price of a detached home in the city was at just over $1 million, while attached properties were at $809,700 and apartments at $664,100. Read more:Perceived corruption is driving mistrust in the Vancouver market[1] Andy Yan, director of the City Program at Simon Fraser University, said that Vancouver is good at enticing those who are still studying and those who are just starting their careers, but it could certainly do much better in retaining this pool of valuable talent. Vancouver’s
 
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Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing January 24, 2019 161   0   0   0   0   0
With a diverse selection of selection of older condo units that can be purchased for less than $350,000, coupled with relatively high average income, Ontario has proven to be one of the country’s most active sellers’ markets in 2018. During the fourth quarter of last year, the aggregate housing price in the city reached $475,831, representing 9.3% annual growth.Two-storey homes were at $510,840, enjoying an 11.0% year-over-year increase. Bungalows went up to $453,698, growing by 6.3% over the previous 12 months.Condos stood at $328,436, with a 3.1% uptick. Read more:This is Ontario’s most promising and consistent market[1] These numbers promise further market dynamism this year, impelled by strong purchasing power and an avid home-buying populace. “Homes that come on the market are quickly sold, with multiple offer situations often present,” according to John Rogan, broker of record and branch manager of Royal LePage Performance Realty. “Overall, healthy employment and wages are propelling higher housing demand in the region.This increasing demand, coupled with Baby Boomers remaining in their homes longer than previously expected, is putting pressure on all housing types and fueling price appreciation.” Are you looking to invest in property?If you like, we can get one of our mortgage experts to tell you exactly how much you can afford
 
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Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing January 22, 2019 163   0   0   0   0   0
According to a report from Altus Group, commercial real estate firms are beginning to adopt property technology platforms in ways that promise to change the industry in the near future. The Altus Group CRE Innovation Report surveyed 400 commercial real estate executives at firms with assets under management totalling over $2 trillion, 41% of whom are already using automaton for benchmarking and performance analysis.Thirty-nine percent are using automation for scenario and sensitivity analysis and 36% are using it for budgeting and forecasting. “Sixty-one percent of CRE [commercial real estate] executives around North America use some online lending platform, and 23% of them are using them in a pretty significant way,” said Ross Litkenhous, global head of business development for Altus Group. “From a crowdfunding perspective, you’re giving a broad, wide array of investors the opportunity to invest in a piece of real estate, whereas in traditional commercial real estate, you have folks that syndicate money or are tied in with a high net worth individual.Everybody gets a percentage of a deal.From crowdfunding you’re going out to the masses and asking people to invest in a deal through some sort of online platform, which is not the way real estate has been traditionally done.It’s taking evolutionary leap.” Some of the online lending firms are Lending
 
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Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing January 22, 2019 121   0   0   0   0   0
A combination of a stronger economy and record-low unemployment numbers propelled Victoria to a robust housing market performance in Q4 2018, according to the most recent Royal LePage House Price Survey. Victoria’s aggregate home price reached $695,793 in the fourth quarter, growing by 8.4% year-over-year.Meanwhile, condos enjoyed a 10.3% increase (to $512,024), and two-storey homes had an even more pronounced 13.2% growth rate (to $966,790). “We saw strong price appreciation year over year in the third quarter of 2018 due to an overall lack of supply, coupled with increased housing demand generated from our healthy local economy.However, during the last half of 2018, we saw prices moderate and level out,” Royal LePage Coast Capital Realty associate broker Bill Ethier noted. “The shortage of supply is being further shaped by a combination of federal and provincial regulations that have slowed the real estate market in the province.As a result, we are seeing a decrease in new residential construction.” Read more:Vancouver home price growth not the fastest nationwide[1] Ethier added that Victoria has established a reputation as a good destination for sound investments and relaxed lifestyles. “Retirees who choose to buy a condominium are competing against first-time buyers resulting in a lack of inventory.Retirees who are unable to find a condominium
 
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Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing January 22, 2019 104   0   0   0   0   0
CREW has never been shy in its belief that real estate is a business, and that’s not just because of the dollar signs.Real estate involves the same levels of planning, strategizing and execution that undergird every successful business. But according to Linda and Keith Perrin, co-founders of All-Ternative Solutions, many investors new to real estate don’t realize the importance of creating a sound, business plan and investing footprint.It’s a situation they hope to change as they welcome a fresh crop of investors into their real estate training program. “A lot of the people we come in contact with think ‘I want 1,000 doors in ten years’ is a business plan,” Keith says, “but a phrase like that is a dream or a goal, not a plan.” Without a proper, revisable business plan – which allows investors to chart their progress, tweak strategies and make sounder decisions about their properties – too many investors are just hunting in the dark, hoping to get lucky. But novice investors with no business experience may find creating a business plan daunting and, ultimately, discouraging.That is why the Perrins make building a business plan and footprint central to their teaching.At their upcoming three-day training event, taking place in North Bay, Ontario, from February 14-16, all attendees will be leaving with
 
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Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing January 22, 2019 106   0   0   0   0   0
When another day of US-dominated news draws to an end, few Canadians are lying in bed thinking, “Boy, things sure look good in America.We should buy some property down there.” But the political funk hanging over the country obscures some essential truths about its real estate market.Job growth has been staggering, putting more Americans in a position to either buy or spend more on improved rental accommodations.Most critically, though, prices for renovated properties in solid rental markets are incredibly low, often less than what the common Ontario or BC investor will put up for a 10% down payment on a 700-sq ft condo that has no chance of cash flowing. Canadian investors are running themselves ragged for 4% returns.Keith and Linda Perrin, the husband and wife duo behind All-Ternative Solutions, want to change that by making property investment in the United States as attainable for Canadians as it is for Americans.For them, there has rarely been a better time to purchase rental properties in the US. “In 2008, the market dumped,” says Keith.“And that was actually the best opportunity to start making money in the United States.The reason why we are in the states that we are in – New Jersey, Ohio, Kansas – is because they are some of the later ones to be recovering
 
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Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing January 20, 2019 109   0   0   0   0   0
The acme of real estate activity is spring, but getting in early could tender gems for investors. “There’s far less competition from other buyers at this time of year with the financial hangover from the holiday season,” said Vicki Schmidt, broker of record and co-founder of JUSTO, a Toronto-based realty brokerage.“Buyers are typically strapped for cash and they can’t make big purchases, so buyers who are prepared financially have an opportunity to get a good price.” It’s also an opportune time for investors to find bargains, especially on fixer-uppers.Any seasoned real estate agent will advise their client to list during spring, but sellers who put their properties on the market during the frigid winter months are doing so out of necessity. “When we talk about the idea of people needing to sell, it’s for a reason,” said Schmidt.“It could be an Estate sale or a property for which timing isn’t so important.That property could need fixing up, and this time of year is usually when properties that need more work find their way onto the markets, so investors looking to get in early and close at a good price, but do renovations and update the property through the spring and summer months.” December was one of the slowest months in recent
 
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Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing January 17, 2019 121   0   0   0   0   0
With seniors slated to comprise nearly a quarter of Canada’s population by 2030, real estate that caters to their needs is being touted as one of the most investment-friendly sectors this year. That’s in spite of a somewhat volatile interest rate environment that’s expected to carry through 2019, says Montreal-based Fred Blondeau, an analyst with Echelon Wealth Partners. “The sector should be able to generate significant growth no matter how interest rates evolve, so we’re putting more emphasis on senior living at this point,” he said, referring to a report Echelon released last month. The report, The Ultimate All-Weather Investment:Canadian Senior Living Real Estate, differentiates between long-term care, which is the purview of governmental agencies, and senior housing, which requires private funds. “The appetite from investors for senior living spaces remain strong,” said Blondeau.“The sector will be subject to strong inflows from investors wanting to put their money in the space.” Echelon Wealth Partners reckons that times are turbulent and, in particular, it is worried about the global macroeconomic outlook.However, according to Blondeau, irrespective of whether the economic environment improves, remains stable or becomes more unstable, senior living spaces will be unaffected. “Especially in Canada’s strongest markets, like Toronto and B.C.,” he said.“We also feel like the market will continue
 
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Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing January 17, 2019 125   0   0   0   0   0
A real estate agent in Ontario recently discovered that two of her clients used cameras and microphones to listen in on the conversations of potential homebuyers. According to CBC News, Hamilton realtor Webster said she only found out about the surveillance when her clients mentioned it.Webster told CBC News that neither seller had installed the surveillance devices specifically to monitor potential buyers.It's also unclear if they were hidden, or had simply gone unnoticed. "You can see how somebody could listen in and get some very interesting information,” Webster told CBC News.“And then, when it's in your lap, you don't want to use it, but it could be tempting for some people.It could be tempting for anybody." While her clients said that they did not use this information to their advantage, Webster points out that temptation is inherent. "If your comments and their comments were being recorded certainly that puts the ball in the other person's court doesn't it?” she said. Now Webster is calling for a rule to compel sellers to say if their homes are under surveillance.According to CBC News, she also wants listing agreements to say if there's audio or video surveillance onsite, and for a warning sign to be posted
 
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Jarek Bucholc ||Street Smart RE InvestingJarek Bucholc ||Street Smart RE Investing January 17, 2019 121   0   0   0   0   0
Yukon Housing Corporation announced the availability of two new homes in Porter Creek.The duplex includes two two-bedroom units that are accessible and energy efficient. Yukon Housing Corporation will own and operate these homes as part of the rent-geared-to-income program, which houses families and individuals from the Yukon Housing Corporation wait list. "This new addition to our social housing rental stock made good use of our existing property in Whitehorse by replacing a single family home with a duplex,” said Pauline Frost, minister responsible for Yukon Housing Corporation.“This energy efficient duplex will keep two families safely and securely housed for many years to come." "The peace of mind that comes with having a secure and stable home is invaluable,” said Larry Bagnell, MP for Yukon.“This is why our Government is glad to be involved in the creation of these brand new homes, which will provide two families in Porter Creek with high quality, energy efficient and accessible housing.I'm glad to see we are making progress in tackling housing affordability, all while supporting the local economy." Funding for this project came from the Northern Housing Fund under the National Housing Strategy. Are you looking to invest in property?If you like, we can get one of our mortgage experts to tell you exactly how
 
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