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
“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
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
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
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
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
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
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
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
"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
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.
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Temperature-controlled industrial properties are a little-known,
yet superlative, asset class that’s sure to grow in popularity
among institutional investors.
The facilities are designed to maintain temperatures as low as
-29 degrees Celsius, which makes construction expensive and buy-ins
prohibitive for many, but at below 1% of Canada’s overall
industrial sector, it teems with opportunity.
“It’s a great investment, not only for REITs, but institutional
and private investors, as well,” said Victor Cotic, vice president
of national investment services with Colliers International.“All
the growth we’re seeing among industrial companies in real estate
is all related to consumer goods.Manufacturing has really taken a
downturn, so industrial real estate today is predominantly around
consumer goods, retailers, and public consumption.”
Temperature-controlled industrial facilities primarily house
food and pharmaceuticals, and for that reason they’re more or less
“Those are perfect examples of consumer goods because they’re
linked to population, and unlike some other retail sectors, it’s
recession-resistant,” continued Cotic.“Even in a down economy,
people are going to consume food and need pharmaceuticals.They
might buy a cheaper variety, but they’ll still need to put food on
Colliers oversaw a leaseback sale between Congebec Inc.and
Skyline Commercial REIT, with the latter taking ownership of a
nine-property national portfolio of temperature-controlled
warehouses.Two-thirds of the facilities are divided between
Montreal and Quebec
The average condo apartment rental rate in the GTA has grown by
9.3% last year to exceed $2,300, according to Urbanation’s year-end
2018 rental market results released late last week.
This marked the greatest rise ever since Urbanation began
tracking the metric in 2010, the report stated.The 2018 increase
also outstripped the 8.3% pace in 2017, contributing to the 4.1%
overall average growth over the past 8 years.
“Recent housing policy changes, combined with strong demand
fundamentals and supply constraints led to record growth for rents
in the GTA last year.These factors should continue to keep upward
pressure on rents, but to a lesser degree in 2019 as affordability
becomes a bigger issue and more condominium and rental units finish
construction,” Urbanation president Shaun Hildebrand said.
due for double-digit market rent increase in 2019
Inventory stood at 27,426 units as of the end of 2018, but lease
activity declined to 8%, the lowest it has been in 5 years.
“The reduced level of turnover was likely a function of the
expanded rent controls for tenanted units introduced in 2017 and
the increased barriers to homeownership caused by elevated prices,
higher interest rates, and new mortgage qualification rules.Low
turnover limited the amount of supply in the market
While Montreal’s housing market is renowned for its relative
affordability, especially when compared to powerhouses like Toronto
and Vancouver, the city’s luxury segment proved to be no slouch as
it boasted of remarkable sales growth last year.
Transactions involving single-family properties worth more than
$1,000,000 went up by 18% in 2018, while sales of condos worth more
than $500,000 grew by 30%, according to the Quebec Federation of
Real Estate Boards.
This activity impelled the market’s sales to reach a record high
last year, with a total of 46,753 deals across all housing
types.The 2018 figures represented 5% growth over 2017, and marked
the 4th consecutive annual increase in transactions.
leads country’s metro areas in price growth
Condos (overall) experienced 14% growth last year, while plexes
(2 to 5 units) had 3% more sales.Single-family homes went up by a
relatively meek 1%, which still did not dent the region’s new sales
“Generally speaking, 2018 ended with market conditions clearly
in favour of sellers for single-family homes, condominiums, and
plexes.The scarcity of supply of single-family homes as compared to
the demand is undeniable on the Island of Montreal, where the
number of months of inventory is slightly less than five,” the
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The fourth quarter of 2018 bore witness to the most significant
housing correction in Canada in a decade.
That’s according to the Royal LePage House Price Survey, which
also notes there was a 4% year-over-year rise in in the national
home price, averaging $631,223, during Q4 2018.
The Greater Montreal Area, Canada’s second-largest metropolitan
region, led the way in year-over-year price appreciation for Q4,
surging 4.1% to reach $407,230.During this period, two-storey homes
in the Montreal area rose 3.5%, for an aggregate price of
$517,190.The region’s condo market also performed well, with a 4.9%
hike in appreciation to reach $328,254 for the quarter.
Residents of the Greater Toronto Area spent 2018 adjusting to
new mortgage rules, which—coupled with the region’s high price
points—slowed movement in the real estate market.Buyers searched
for affordability and they found it in Toronto’s suburbs, the condo
sector, and other cities in Southern Ontario.The City of Toronto
nevertheless rebounded in the fourth quarter, but that’s more than
can be said for its surrounding areas.Toronto’s aggregate home
price rose 8.8% in the fourth quarter of 2018, but the GTA as a
whole only saw a 3.4% gain.
“The market correction in the suburbs of Toronto has been more
significant than elsewhere in the country, because price increases
in recent years
Demand for Canada’s residential property is definitely not
slowing down any time soon, but this hunger will be less apparent
in Vancouver this year, a new analysis from Altus Group warned.
Last year proved to be less than stellar for Vancouver as it
experienced a “remarkably constrained” supply of new homes.This
trend will most likely last well into 2019, as the market is
“exhibiting the most potential for downside risk,” Altus
Taking into account increasing borrowing costs and higher
construction costs, Vancouver will likely slow down in terms of
sales this year.
“A key challenge that has become more apparent as of late in
Vancouver has been the price sensitivity of consumers, with higher
priced projects, or those priced above the competition,
experiencing below average sales rates,” Altus said.
real estate is worth literally trillions, but…
Meanwhile, Toronto will enjoy a major boost from increased
immigration numbers along with healthy population growth rates.
“Markets in the Greater Golden Horseshoe, including the GTA,
have the most upside potential for an increase in sales activity in
2019 given the depth of the decline in 2018 and building off of the
sales recovery noted in the back half of 2018,” Altus explained in
its outlook for this year.
Investors in Metro Vancouver are in for a treat this year, as
the area’s commercial property market – especially the office
segment – is currently the best nationwide.
In its analysis, commercial agency Devencore stated that vacancy
rates for office space in the downtown area fell to 4.5% at the
beginning of the year, from 5% a year ago.
Demand for Class A space was even stronger, with vacancy rates
at 3.9% and average gross rents at above $51 per square foot.
The data came as approximately 1.6 million square feet of new
offices, most of which are already claimed by tenants, currently
undergo development.A total of 3.5 million square feet in 21 office
buildings are slated for completion within the next 5 years.
“It is a historical time for Metro Vancouver’s commercial real
estate,” Avison Young Vancouver market analyst Andrew Petrozzi told
Read more:Vancouver office tower to showcase latest green
Devencore attributed the market’s singular strength to
historically high property values and sustained development.
“The market is showing no signs of slowing down in terms of
rental rates.With various developments underway, but no major new
office buildings delivered to the market until 2021, tenants with
upcoming leases are competing within
The federal government announced the completion of recent
housing projects in the indigenous community of Webequie First
Nation in Ontario.
Bob Naulat, MP for Kenora, on behalf of the Jane Philpott,
Minister of Indigenous Services, joined Chief Cornelius Wabasse and
the community of Webequie First Nation to celebrate the completion
of several recent housing projects.These include 14 new modular
homes, two new four-plexes, five single-family homes, and
renovations to 14 existing homes.
The Canadian government is working in partnership with First
Nation communities to build new and renovated housing, reduce
overcrowding, and enhance the quality of life of families and
All of these housing projects were funded through the Canadian
government’s Community Wellbeing Pilot Project, launched in
February 2016.Since 2016, the federal government has invested a
total of $9,387,564 toward these housing projects.
"Every person deserves a safe and healthy place to call home.Our
government was proud to partner with Webequie First Nation on their
newly completed housing projects, which will provide 29 families in
the community with new, safe and modern homes,” said Philpott
“Through the Community Wellbeing Pilot Project, a
whole-of-government approach focusing on First Nation-identified
priorities, we are working with Webequie and other communities to
reduce the housing gap and support the needs of First Nations
families in communities across
Home prices in Montreal continued to grow as sales reached new
heights last month, according to the Greater Montreal Real Estate
The median price of a single-family home in the market increased
by 7% on a year-over-year basis in December, reaching
$327,450.Meanwhile, the median price of plexes grew by 8% during
the same time frame to settle at $525,000, and that of condos by 3%
These coincided with the market’s achievement of a new home
sales record for December, growing by 3% annually to reach 2,825
December was also the 46th consecutive month of growth in the
number of transactions, according to the GMREB.
to grow increasingly unfriendly to first-time buyers
Single-family homes accounted for 1,491 sales, growing by 3%
annually.Condo sales also increased by 2% (up to 993 deals closed),
while plexes shrank slightly by 1% (down to 336 transactions).
Montreal’s supply stood at 18,970 active residential listings as
of the end of 2018, which was 18% lower compared to the same time
in the previous year.
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