Monday, June 22, 2009

New pre-construction condo OPPORTUITY

Soon I will have further information on an upcoming condo project that has great potential for pre-construction investment - the SoHo Parkway.

Please check out the web site for research on their properties in Toronto and Vancouver - http://www.metropolitan.com/soho/

Housing Prices over Time - Looking back....

“The prices of houses seem to have reached a plateau, and there is reasonable expectancy that prices will decline.” – Time Magazine 1947

“Houses cost too much for the mass market, Today’s average price is out of reach for two-thirds of all buyers.” – Science Digest 1948

“The goal of owning a home seems to be getting beyond the reach of more and more Americans.” - -Business Week 1969 (average price at the time:$28,000)

“If you are looking to buy, be careful. Rising home values are not a sure thing anymore.” – Money Magazine 1981

“The era of easy profits in real estate may be drawing to a close.” – Money Magazine 1981

“Most economists agree… a home will become little more than a roof and a tax deduction,
certainly not the lucrative investment it was…” – Money Magazine 1986

Friday, June 19, 2009

Cap Rates

Capitalization rate

Capitalization rate (or "cap rate") is a measure of the ratio between the net operating income produced by an asset (usually real estate) and its capital cost (the original price paid to buy the asset) or alternatively its current market value. The rate is calculated in a simple fashion as follows:

For example, if a building is purchased for $1,000,000 sale price and it produces $100,000 in positive net operating income (the amount left over after fixed costs and variable costs are subtracted from gross lease income) during one year, then:

$100,000 / $1,000,000 = 0.10 = 10%

The asset's capitalization rate is ten percent.

Capitalization rates are an indirect measure of how fast an investment will pay for itself. In the example above, the purchased building will be fully capitalized (pay for itself) after ten years (100% divided by 10%). If the capitalization rate were 5%, the payback period would be twenty years.

Monday, June 8, 2009

2nd Avenue West

It is finally time! The launch is on Thursday. Please let me know if you need any further information. I can get you the information package prior to Thursday so we can register for the priority opening.

This is an exciting opportunity to own a brand new condominium in the GLEBE. Traditionally, we see an over 20% return on purchasing pre-construction condos.

Contact me today to reserve your unit GREG BLOK, 613-788-2872 - www.bennettpros.com

Cash Flow Opportunity

I have found a great cash flow opportunity. This is a $36,000 investment that will present $1000 per month in income (minus maintenance and vacancy). This is a cash cow! Let me know if you need further details.

Purchase Price $179,900.00
Deposit $35,980.00
Financed Amount $143,920.00

Monthly
Income Expenses
Rent $2,850.00
Mortgage Payment $536.82
Management $285.00
Property Tax $95.67
Water/Sewer $178.33
Heat $208.33
Hydro $491.67
Insurance $30.00

TOTALS $2,850.00 $1,825.82

Monthly Yearly
$1,024.18 $12,290.14

Cash on Cash Return 34.16%
Mortgage reduction $2,417.08

TOTAL ANNUAL RETURN (on INVESTMENT) 40.88%

Your deposit is returned to you, cash in, from cash flow in under 3 years!!!

North Overbrook Loft Opportunity

I have the opportunity to sell 8 condos in a package that is quite unique. These units are closing in February 2010, so you are buying them pre-construction priced. I was able to negotiate a price reduction on the properties based upon the 8 sales.

Further to this, I arranged a special mortgage package and a management program. The manager will find tenants, manage the property and provide you with accounting statements. The property will cash flow $100 per month after all expenses.

I have provided the potential returns after three years in the program. These are based upon the historical rate of return of 6.27% annual increase in property values in Ottawa.

After Three Years (average 6.27% growth)
Unit # Cash/Mortgage Equity Return on Invest
212 $16,083.95 $71,139.89 40.90%
204 $16,022.02 $70,959.77 40.89%
104 $15,978.00 $71,039.82 40.86%
313 $16,114.49 $71,440.10 40.88%
312 $16,017.96 $71,259.98 40.85%
304 $15,945.04 $71,099.86 40.84%
205 $15,848.21 $69,999.09 40.91%
105 $15,870.22 $69,959.06 40.92%

Saturday, June 6, 2009

Wednesday, June 3, 2009

Record-breaking number of resale homes sold in May

Members of the Ottawa Real Estate Board sold 1,969 residential properties in May through the Board’s Multiple Listing Service® system compared with 1,896 in May 2008, an increase of 3.9 per cent. That number also represents a 19 per cent increase over the 1,594 sales recorded in April 2009.

Of those sales, 348 were in the condominium property class, while 1,621 were in the residential property class.

“This was the best May on record for residential resale home sales in Ottawa,” said Board President Rick Snell. “Homes in every price range are selling well, from starter homes to luxury properties. Homebuyers and sellers are showing a lot of confidence in the Ottawa real estate market,” he added.

The average sale price of residential properties, including condominiums, sold in May in the Ottawa area was $312,045, an increase of 5.3 per cent over May 2008. The average sale price for a condominium-class property was $231,351, an increase of 4.6 per cent over May 2008. The average sale price of a residential-class property was $329,368, an increase of 4.7 per cent over May 2008.