Monday, November 30, 2009

111 West - New Westboro Condo - RSVP today for December 8 exclusive opening









Exclusive opening - December 8, 2009 - 6:00 pm
Public price - starting in the $220,000s (Special pricing for Bennett clients)
Deposit - $20,000 for first 30 buyers
Closing - Fall 2012

Amenities -
4000 sq.ft of common areas amenity space on the ground floor featuring:
a home theatre
pilates studio space
fitness /cardio area
games room
party/event room with a kitchenette
fire pit outdoors in the central park area with a tranquil garden

2,000 sq. ft roof top terrace area featuring:
a hot tub
outdoor kitchen
4 separate outdoor dining rooms
sun lounge area

Sunday, November 29, 2009

Why not invest in Florida?


Above is a map of the city of Orlando. The pink houses show foreclosures. There is a significant portion of the homes in Orlando are under foreclosure. There are estimates that banks are holding off on foreclosing on numerous other homes (in the 6 digits).
The concerns for many investors is the economy in Orlando.

Friday, November 27, 2009

Wellington at Island Park

Last week there was a great launch at Wellington at Island Park.
- 38 of 39 condos sold on opening night -



Click here to register for our next launch!

Monday, November 23, 2009

Multifamily income property list

This week's multifamily income property list has arrived. Some new additions to our list have beefed up the numbers. Please take a look and let me know if you have any questions or comments. If the terms do not make sense to you, please feel free to email or call me to discuss - gblok@kwottawa.ca


Thursday, November 19, 2009

RRSPs in Real Estate

I often get inquiries on how to invest your RRSP in Real Estate. I can tell you it is not an easy process. It can be a complicated process to invest your RRSPs in Real Estate.

Complicated unless you use a real estate syndication. For information on how to turn your RRSP into a hard asset backed product please click here

Wednesday, November 18, 2009

The Wellington at Island Park

The Wellington at Island Park



A Better with Bennett exclusive PRE-PUBLIC Priority opening on Thursday November 26, 2009. Only $20,000 deposits. This property features top quality finishings, a garden terrace and

Please RSVP to my email me at: gblok@kwottawa.ca

The Ottawa Citizen is catching on to our strategy - click here to read

Parkdale Market Refurbishment


The Parkdale Market refurbishing project is moving along nicely. This is a nice touch to a quickly improving neighbourhood. The existing Parkdale Market Lofts, will soon be joined by the top-notch Soho Parkway project, due to start construction in March 2010.
The Parkdale Market refurbishment is a big step in creating the Arts District of Ottawa. The QUAD as it is formally known, will be a vibrant neighbourhood in the core of the city, attractive to the young professionals and down sizers looking for the urban lifestyle.

Monday, November 16, 2009

Income property list - November 16 2009

Income property list for November 16 2009.

Please note, the property in Rockland is less than one year old.



the Team Approach

Greg,

I have been remiss in thanking you for your assistance in my recent investment reconfiguration. Since our first meeting at the Bennett Real Estate Professionals seminar on the 24th of May 2009, you have provided me with an excellent advice and cautiously guided me through the process of intelligent property investment. I have followed your guidance with military precision by first equally redirecting my RRSPs into purchasing shares from two Bennett recommended organizations: your RRSP company and Raymond James under the calculating and savvy outlook of Kash Pashootan. Both of these investments have already yielded promising dividends.

You also provided me with the necessary information for me to spear along fearlessly and purchase not two but three rental properties in three different cities in the period of only one month. Each of these rental properties have differing but complementary attributes contributing to a balanced portfolio aiming at reconciliating long term and short term growth and cash flow aspirations. This feat required a great deal of coordination and communication and would not have been possible without the outstanding services of Lilianne Eid. Under the cover of an irresistible smile, she provided me with competitive rates and easily dismissed her rivals; and worked with care to ensure contractual closing went as well as reasonably possible given some extenuating circumstances.

I will now slowly and wisely learn the intricacies of property managment and fiscal accounting before attempting the next wave of investment. It has been a pleasant learning experience and I hope we can work again in the future. Again, please accept my sincerest appreciation for your assistance in this endeavour.

Kind regards,
Jacques

Saturday, November 14, 2009

Changing demographics

The workplace across Canada will be experiencing changing demographics. In the Ottawa Citizen on Saturday Nov 14 2009, there is an article on the impact of changing demographics on policing. Over the coming few years, many senior level officers will be retiring and there will not be enough incoming officers to replace them.

This is a common problem across the employment sectors. From my personal knowledge, the only government department that has been preparing for this changing demographic is the Department of Foreign Affairs (DFAIT). The department of foreign affairs has been planning for the coming changing demographics for years now, with their innovative hiring practices.

A friend of mine, retired about two years ago and was telling me that over 75% of the people in his department are retirement age eligible within 5 years. With that large number of retirements coming, it is easy to see that there will be huge turnover within the government. This will likely lead to a huge influx of people moving into the city of Ottawa to fill those high paying, secure job positions within the Federal Government.

I am certain other departments have been working through this problem and in talking with clients who work for Human Resources Canada they are making changes to the working enviroment to try and recruit more top end candidates. Many departments are looking at flex hours and working from home solutions.

How does this affect a real estate investor?

In the city of Ottawa , this changing demographic should lead to an influx of under 40 year old people. This group will replace the "baby boomers" who are at the point of retirement with a comfortable pension. I think you shall see a large increase in the city of Ottawa population over the next few years.

This new population leads to a simply supply and demand equation - more people moving into the city, means a need for more houses, which means the existing housing stock will not be enough to service the future needs. As more houses are need, the prices will go up.

This positive growth in housing prices will occur in both the core areas, fueled by downsizing baby boomer and in the suburbs as the under 40 year old demographic need large backyards, hockey rinks and schools. My thoughts are core areas will increase first and faster, then followed by the suburbs in 5 to 7 years.

The current condominium market will stay strong for about 12 to 15 more years, then the market will turn completely towards the suburbs, when the Echo Generation are starting their families. Coincidentally, the Echo Generation's first home, is likely to be a smaller condo, downtown, close to work and convenient to walk to work, bars and restaurants.

Tuesday, November 10, 2009

Property Inspectors

It is important to make sure you have a property inspected prior to purchasing it. I have found a list of property inspectors that is regulated. My favourites are Marc Parent and John Clermont (Pillar to Post).

Schools and Investments

Where are the Ottawa schools in relation to the property that I am thinking about? This is an important question as investing in single family homes makes schools an important variable. A new family that is moving into a neighbourhood, one of their first questions is where are the schools.

I'm so happy that the internet is available, because within minutes I was able to find a map of the Ottawa-Carleton Catholic Schools and a map of the Ottawa-Carleton District Schools online.

Thursday, November 5, 2009

Real Estate Millionaires

“Ninety percent of all millionaires became so through owning real estate. More money has been made in real estate than through all industrial investments combined.”
-Andrew Carnegie

This quote is very famous. Research currently puts this figure around 80% of new millionaires in Canada are created through real estate. Funny how over 100 years, the statistic has stayed much the same. It is that old 80/20 rule (Pareto principle), 20 percent of people end up with 80 percent of the wealth.

It really is a mind set. It is changing the way you do things. Trying a new method. If you follow the road map that a very successful person has followed, logic says you will have the same or greater success. Real estate investing is a repeatable process, you can follow the road map. You need a coach, or mentor who can help you get where you need to go.

I have had the fortune lately to re-connect with some clients and the successes that people are experiencing are amazing. Passive income, equity growth, dreams realized, plans put in place.

I still get the people who tell me that using home equity is completely out of the question, but I think that is the wrong attitude. I can show you real estate products, with 80% loan to value (LTV), that pay 11% annually in income. Based upon using a home equity line of credit (HELOC) to secure this money, you will get a return in your pocket monthly of $645.83 for a $100,000 investment.

Imagine, you are sitting on significant wealth in your own home. If you have a $500,000 house paid off, I can show you how, without changing anything in your day to day life, you can increase your monthly income by $2583.33!

Tuesday, November 3, 2009

How do you determine the value of an income producing properties?

There are a number of methodologies that can be employed to determine value:

Cap Rate. Comparing the "capitalization rate" of the subject property to those of other properties recently sold, in the immediate area.

Gross Income Multiplier. Comparing the gross income generated by the subject property to that of other properties recently sold, in the immediate area, times a "multiplier". For example if a building grosses $35,000 and similar buildings have been selling for 5 times the gross, then the value could be assumed to be $700,000.

Net Income Multiplier. Comparing the net income generated by the subject property to that of other properties recently sold, in the immediate area, times a "multiplier". For example if a building nets $50,000 and similar buildings have been selling for 10 times the net, then the value could be assumed to be $500,000.

Average Price per Apartment. If similar buildings to the subject property have been selling for $90,000 per apartment and there are 5 apartments in the building, then the value could be assumed to be $450,000.

R.O.I. How much of a "return on investment" would a prudent Buyer want for his down payment on a property? Should it equal or exceed what he could get in the stock market, in bonds, or some other investment. The R.O.I. could then determine how much a Buyer is willing to pay for the subject property.

Cost of Replacement Value. Separating the land value from the value of the building, how much would it cost to construct a new building on the site of the subject property. Is construction replacement value $125 per square foot or perhaps $150 per square foot?

Income property list - November 3 2009

This week's income property list has some new entries.




Please note - the property in Chesterville is apparently in very rough shape. It will need someone interested in renovations.