Monday, May 28, 2012

Baby boomer data will highlight upcoming policy challenges

The next set of data from the 2011 census shouldn't hold many surprises for anyone in Canada — but it no doubt will.

On Tuesday, Canadians will discover how old their society has grown. It will be apparent in black and white how fast the baby boomers are entering their golden years, and how quickly the population of seniors is overtaking the number of youngsters.

It's the second tranche in a series from Statistics Canada's 2011 census, a full count of the Canadian population done every five years.

Experts say they expect to see evidence that the number of people in Canada over the age of 65 will soon outnumber those under the age of 15 — the result of a surging senior population and a steady decline in the ranks of children.


Tuesday, May 22, 2012

Annual increases

Housing Price in Ottawa have increased over the past 10 years from $200,000.00 to $343,284.00. This is an average of 7% per year!!

Rental income In Ottawa has increased over the past 10 years from $932.00 per month to $1,161.00 per month. This is an 8% increase in rental income as well!!

Sunday, May 20, 2012

Top 25 USA turn around towns

Seven housing markets hit hardest by foreclosures – all from Florida – are leading the nation towards a general housing recovery, while unexpected new comers in Michigan, Texas, Iowa and California are showing signs of strength and stability, according to the Top Turnaround Town Report released today by, the #1 homes-for-sale site operated by Move, Inc., (NASDAQ: MOVE), the leader in online real estate.

The list of 25 Top Turnaround Towns, developed using year-over-year comparative data from the first quarters of 2012 and 2011, is led by Phoenix-Mesa, AZ, Miami, FL and Orlando, FL – three top foreclosure markets experiencing list price appreciation, along with reductions in inventories and their median age of inventory, all on a year-over-year quarterly basis. Other call out markets include Boise City, ID (4), which has been on the rise steadily since its debut at No. eight in the third quarter of 2011, and Naples, FL, which rose one spot from sixth to fifth in one quarter.

Noteworthy newcomers include Bay Area frontrunners Oakland, CA (6) and San Jose, CA (24), heating up as the nation watches the local hi-tech industry and upcoming Facebook IPO, and the Lone Star State markets of Dallas, TX (12) and Forth Worth-Arlington, TX (18). While Detroit, MI continues its struggle with high unemployment (10.2%), it landed in the 23rd position on the list with a 5.82% increase in list price appreciation, a -29.59% reduction of for sale inventory, and a market that’s moving 27.27% faster, all on a year-over-year quarterly basis.

“We continue to see signs of stabilization and recovery on the local level throughout the country, basing analysis on the real-time nature and accuracy of the data,” said Steve Berkowitz, CEO of operator, Move, Inc. “By all indications, the 2012 housing market is unfolding as we expected, and we’re encouraged with the progress local markets are making. However, much will depend on the continued health of our economy, specifically job rates, and how lenders will release their foreclosure inventories now that the 49 state AG Agreement has been signed. All of these key factors will determine how quickly our local housing markets recover and remain healthy.”

Read more: Names Top Turnaround Towns – May 2012 (DATA)® Blogs

Phoenix tops list of 10 turnaround markets

Editor's note:'s "Top Turnaround Towns" list is compiled using an algorithm that considers year-over-year median price appreciation, drop in year-over-year age of inventory, reduction of inventory levels compared to a year ago and year-over-year changes in unemployment rate. All data, unless otherwise indicated, reflect analysis on a quarterly basis.

It's sunny and international in's "Top Turnaround Towns" for the first quarter of 2012. Seven of the top 10 metros on the list are found in Florida. Seven also made the cut in a recent Inman News analysis of public records that identified the top 10 U.S. hot spots for global buyers.

Miami, Orlando and Naples -- No. 2, No. 3 and No. 5, respectively, on the turnaround list -- all ranked in the top 10 on the Inman News list of hot markets for global investors. Orlando, despite having lower and fresher inventory than a year ago, might be in the most precarious position of the three, having experienced 9,330 foreclosure filings (one for every 101 homes) in the first quarter.

Regardless, the fact that Phoenix and parts of Florida hit especially hard by the downturn are beginning to perform well lends an optimistic tone to the springtime buying season.

"By all indications, the 2012 housing market is unfolding as we expected, and we're encouraged with the progress local markets are making," said Steve Berkowitz, CEO of operator Move Inc.

The Miami area is especially hot, even though it lost its No. 1 ranking on the list this quarter to the Phoenix-Mesa, Ariz., metro. In March 2012, according to the Miami Association of Realtors, 65 percent of all home sales in Miami-Dade County were all-cash, and for-sale inventory dropped 48 percent from last year's first quarter. Median list prices saw a year-over-year jump of 24 percent.

The fast-rising Phoenix-Mesa, Ariz., metro continues its remarkable turnaround as No. 1 on the list, up from No.4 in the third quarter of 2011 and No. 2 in the fourth quarter of 2011. Just two years ago, in 2010, it topped the nation's metros with 55,732 bank repossessions in that year.

A substantial reduction in year-over-year for-sale inventory (48 percent), a sharp year-over-year drop in median age of inventory (33 percent) and the largest year-over-year median list price increase (27 percent) of any of the 146 metros tracks for the report landed the Phoenix-Mesa metro in the No. 1 spot. It also has a very good relative unemployment rate at 7.8 percent (February 2012).

Oakland, Calif., makes a surprise appearance on the list at No. 6, thanks to brisk home sales compared to a year ago (46 percent faster) and a steep year-over-year drop (48 percent) in for-sale inventory. From March 2011 to March 2012, the feisty, restaurant-rich Bay Area city had the largest drop (52 percent) of for-sale inventory in any of the 146 metros tracks for its top turnaround markets report.

With a low foreclosure rate in its county (one in every 519 homes) and a relatively strong unemployment rate (8.7 percent), the Boise, Idaho, metro continued its steady climb on the top turnaround towns list to No. 4. The Potato State capital had a year-over-year 37 percent drop in for-sale inventory and a near chart-topping 17 percent year-over-year increase in median list price on for-sale homes.

See's full 25 metro "Top Turnaround Towns" report here.


Calculating ROI

Some buyers/investors may think ROI is too basic a topic and not worth mentioning but for those new to real estate investing understanding ROI and how to calculate it is very important in determining if a property is a sound investment. When purchasing a rent and hold property, the rule of thumb in calculating the ROI is to look at the average income over a 2-3 year period. What is a good ROI on a real estate investment? Well that is a personal question and in a large part has to do with the opportunity cost of that investment for an individual investor. In other words "what else could you do with your money?" Considering that you would probably be lucky to get 1% on your money in a savings account or possibly 2% on a CD it does not take much to consider other alternatives. Lets look at a typical ROI calculation for an Arizona residential property. We want to give you a basic and easy formula to follow which can help considerably when purchasing a property to formulate a return on investment.

Ok here's the scenario:

Home purchase price = $95,000

Annual operating expenses = $5030

(Including: vacancies, Hoa, management fees, property taxes, and repairs/maintenance)

Estimated Rental income = $16,800 ($1,400 monthly)

When you subtract the operating expenses ($5030) from the annual rental income ($16,800) you get a net annual income of $11,770

As a formulation:

$11,770/$95,000 = 12% ROI

This property is a typical example of a property in the current Arizona market place.

Another key factor that can and should be used in determining the ROI is the potential equity that may be earned on the property. In the long run equity is just as important as the cash flow a property is generating on a monthly basis. If you were to add a modest 5% annual appreciation to the above example your total return on investment would be close to 17%. Of course the length of time you hold the property and the closing costs to sell the property would need to be factored in but where else can you expect these kinds of returns now?

Property values in Arizona are still low, but are now rebounding upward nicely. Arizona was number 3 in foreclosures six months ago but is now ranked 33 in the nation. Big Change! This tells us that bank inventory is not still flooding the market, and values are rising. SMART has all the rental and property value data needed to calculate ROI within our state of the art system.

Our SMART investors are currently taking advantage of our auction properties and reaping the cash rewards. There are 200 to 300 properties scheduled for auction each day in just the Phoenix area. we have the inventory available and the knowledge needed to assist buyers in buying very nice homes at great prices. When purchasing investment properties, it is important to get upstream and away from the competition! Let us show you how to buy before the property is foreclosed on and goes back to the bank. The time is now to sign up and start making a great return on Arizona real estate! Cash flow is easy in this market! We can show you how.


Luke Gross