Thursday, February 28, 2013

3 unit income building 1 hour from Ottawa

Asking Price - $299,900

3 total units – 1 commercial space, 2 two bedroom units
Commercial - $1,700
Apt second floor - $1,050
Apt third floor - $850
Total rent is $3600 - $43,200 annually

Taxes - $8,006
Water and Gas for two residentials and 4 hydro meters - $7,746
Total expenses - $15,752

Mortgage payment (assume 30% down, 4% interest, 25 year term) - $13,251.36
Deposit needed - $89,970

CASH FLOW – $14,196.64 ($1183.05 monthly)
CAP RATE – 9.15%
Cash on Cash return – 15.78%

Looking for cash flowing properties within a few hours of Ottawa real estate, contact the Bennett Property Shop Realty Brokerage!

E and OE.
Proformas are for illustrative purposes only. Cash flows will vary during brief periods of vacancy

8 unit building 2 hours from Ottawa

Asking Price - $539,900

8 total units - Breakdown - 4- 1 bedroom units, 3- 2 bedroom units, 1 - 3 bedroom unit.

155. $825 June 1, lease
157. $670 June 1, 13. Month to Month
159. $714 May 1, 13 lease
Apt 1 $665 July 1, 13 lease
apt 2 $975 Oct 1, 13 lease
Apt 3 $819 May 1, 13 lease
Apt 4 $845 Oct 1, 13 leased
Apt 5 $675 Jan 1, 13 lease
Total rent is $6188 / month and $74,256 per year

Expenses are as follows:
Utilities are approx. $10,800
Taxes $ 9600
Insurance $3400
Maintenance $2000
total expenses - $25,800

Mortgage payment (assume 30% down, 4% interest, 25 year term) - $23,855.88
Deposit needed - $161,970

CASH FLOW - $24,600.12 - ($2050.12 monthly)
CAP RATE = 8.97%
Cash on Cash return - 15%

Looking for cash flowing properties within a few hours of Ottawa real estate, contact the Bennett Property Shop Realty Brokerage!

E and OE.
Proformas are for illustrative purposes only. Cash flows will vary during brief periods of vacancy

Wednesday, February 27, 2013

Byward Market Flip

Often the most successful flips are when a property is converted from one use to another.  The most common one, is converting a bungalow to a duplex.  This will increase the rental income and usually the value of the property because it is no longer a bungalow, but now an income producing duplex.

Rarely, do you see an opportunity to do the opposite, but an interesting option recently presented itself.  at 140 Clarence, in the Byward Market, there is a 4 one bedroom unit apartment building.  It is a lovely heritage frontage property at the corner of Dalhousie and Clarence.  The location is superb, mere blocks from the Byward Market building. 

During a recent conversation with the city, it was revealed that the city would support conversion of this property from a 4 unit apartment to two luxury townhomes.  There are no real comparables to the location and potential of these properties, but a listing in the $700,000 plus range is not unreasonable.

Purchase price is - $949,500
Projected sales price - $1,400,000 
Renovations - ?
Potential Profit - approx. $200,000 plus
If flipping houses in Ottawa is your passion, please contact the Bennett Property Shop Realty Brokerage. 

E and OE.
Proformas are for illustrative purposes only. Cash flows will vary during brief periods of vacancy

Tuesday, February 26, 2013

things that make you go HHMMM!!!!

Ottawa's average household income is up $14,000 from 2006 to 2012

In 2012, the Federal government in Ottawa ADDED 600 jobs

The number of households making over $100,000 annually in Ottawa rose from 31% to 41% from 2006 to 2012

Solution To Retirement Fears: Purchase A Rental Property.

Ottawa has the third most expensive rents in Canada behind only Vancouver and Toronto. This is great new for a landlords and potential landlords.In the Ottawa real estate market the average rent for a 3 bedroom is $1,632.00 per month and expected to increase by 3.1% this year (for a total of $1,682.59). To put this in prospective you can purchase a property for $400,000.00 and have a mortgage payment of only $1,252.00 per month.

This is great time to purchase a new home or a rental property. The expected increase in Ottawa homes this year is said to be 3%-5% this year.  On an average price of $350,000 that results in a projected rise in price of between $10,500 and $17,500.

For information and assistance to buy Ottawa Real Estate or Ottawa Investment Real Estate, contact the Bennett Property Shop Realty Brokerage.

E and OE.
Proformas are for illustrative purposes only. Cash flows will vary during brief periods of vacancy

Monday, February 25, 2013

Change the Residential Tenancies Act

Below is a link to petition to change the Residential Tenancies Act for landlords who are taken advantage of by tenants who use the law to allow them to remain for months in a rental property without paying rent. We have all heard horror stories.  Time to try to make a change!

To sign the petition, please click here

Tuesday, February 19, 2013

Ottawa School Reports

Once you have children, it becomes very important to do research on more than just your dream home.  It now becomes an essential piece of house hunting process to research schools that your children will attend.  As a licensed Ontario teacher and a real estate broker, I have a unique skill set to assist in finding the perfect family home in a great school district.

Please click here to research your local school

Searching for a school, might start with something like the IB program (International Baccalaureate) - please click here for schools in Ottawa with IB programs.

The most common Ottawa Schools that are requested are Katimavik Elementary School, Lisgar Collegiate Institute and Cantebury High School

Katimavik Elementary School

School hours: 8:45 am – 3:15 pm

Katimavik ES is located in the Katimavik area of Kanata, a suburb of Ottawa. The school is a French Immersion Centre offering:
■Early French Immersion Program from Grade 1 through to grade 8.
■Katimavik Elementary School was built by the Carleton Board of Education in 1981; an addition was added to accommodate the Intermediate students in 1984.
■This year Katimavik has a Middle French Immersion program from grades 6 through 8.

The school is known as a French Immersion Centre, today serving approximately 550 students from grade 1 to grade 8. When our students leave after grade eight they are able to read, write and speak in both French and English. They receive a thorough grounding for bilingualism, thanks to the combined engagement of families, staff and students.

Lisgar Collegiate Institute
Lisgar is conveniently located in downtown Ottawa and boasts a building with history and prestige. Its music program is among the best in Canada, and its high academic standards breed excellence in its students. We focus on the three "A's" - Academics, Athletics and the Arts, with a strong emphasis on our community. We are extremely proud of our accomplishments and welcome any opportunity to work in partnership with others to develop all Lisgar students in the areas of excellence, leadership and citizenship."

Cantebury High School
Located in the southeast sector of Ottawa, Canterbury is a hub of creative activity for over 1300 students. It is a school with a 40–year tradition of excellence made up of students from our local community and students who have auditioned for the specialized Arts Canterbury program. Students in the Arts Canterbury program enroll in one of the following art disciplines: dance, drama, literary, music, or visual. There is rich diversity in the school population that is respected and encouraged. As a result, the students are motivated, creative, energetic and committed to their studies, their school, and their community. The extra-curricular athletic program at Canterbury lends balance to both academics and arts. Our goals are to nurture excellence in our students by challenging them with the best of the academic, artistic, and athletic worlds, and to help students become well-rounded individuals who care about and understand our greater community.

For a full list of how Ottawa school's stacked up, according to the Fraser Institute's report, please click here

For information on Ottawa real estate and Ottawa investment real estate please contact the Bennett Property Shop Realty Brokerage.

Wednesday, February 13, 2013

Basement Apartments - great value add

Watching television and seeing shows like Income Property is a great idea.  It shows how a house can produce extra income when a secondary suite is added.  This can be a huge bonus!

For instance - a small bungalow in Ottawa can be bought for approximately $340,000 and rent for $1800 per month.  This is an annual rent to value ratio of 6.4%.  By adding a basement suite, your rent will jump to a likely $1500 on the top and $1100 on the bottom for $2600 per month.  The renovations should cost you approximately $60,000, so your new ratio is 7.8%.  Adding that basement suite is a massive change in your return. 

A basement apartment might be appealing but there are pitfalls.  As the owner, you assume any liabilities, even if the suite was built prior to you owning the property.  There is no single government authority, which provides written certification that any given basement apartment is legal. Make sure the basement apartment complies fully with all the applicable fire codes, building codes, Electrical Safety Authority regulations and zoning and housing standards by-laws. Illegal basement apartments can be a risk to the occupants and others in the structure.

 Light, Bright & White. Good for a basement

The Ontario Building Code which prescribes minimum requirements for the construction of buildings is a code that applies only when the house was built. The building code changes over the time but for the most part, it does not apply retroactively. The fire code which prescribes construction and safety issues as they relate to how the building is required to perform should it catch fire, can apply retroactively.

Here are few basic requirements for a legal basement apartment in Toronto:
(1) The detached or semi detached house must be at least 5 years old.
(2) The front of the house cannot be significantly altered to change its appearance from that of a one unit building.
(3) Basement unit must be smaller than the other units.
(4) Minimum ceiling height is 6'5". Ceiling must be continuous. Suspended (T-bar type) ceilings and exposed joists are not acceptable. Furnace room ceiling must be dry walled or plastered too.
(5) Doors must be solid wood or metal and minimum thickness is 1.75". Exterior door must be at least 32"x78". The smallest dimension of the window is 18" and the opening must be at least 600sq in. Windows must be within 3' of ground, and if there is window well it must extend 3' from the house wall to allow room to crawl out.
(6) Bathrooms have to have either a window or fan.
(7) A kitchen equipped with a refrigerator, stove in good repair and working condition. Cupboards having a capacity of not less than four cubic feet multiplied by the total number of persons occupying the unit.
(8) New apartments require building permits before construction begins. In most areas an additional parking space is required for new apartments. If there is a parking spot for the upper unit, there must also be a parking spot for the basement.
(9) The property owner is responsible to make sure that smoke alarms are installed and maintained.  Carbon Monoxide alarms are required under many Municipal By-laws. They are to be provided in each dwelling unit in a building containing a fuel fired appliance or an attached garage. Even if they are not required by legislation they make good sense with today's design methods providing for air-tight construction of dwelling units. Smoke alarms must be installed in each dwelling unit on every floor including those containing a bedroom or sleeping area. The alarm must be audible in bedrooms when the bedroom doors are closed. The smoke alarm may be battery operated or connected to an electrical circuit with no disconnect switch between the over current device and the smoke alarm.

Interconnected smoke alarms may be required if:
• 15min. Fire Resistance Rating is used between dwelling units
• one dwelling unit must exit through another dwelling unit

 Open-Concept is Best:  Whenever possible, open-concept is best in basement apartments. Anything you can do to keep a space feeling open and airy is helpful. Light colors on the walls help.

If required, interconnected smoke alarms must be installed in every storey above and below grade in each dwelling unit, and in every shared means of escape where applicable. These alarms must be audible in bedrooms when the intervening doors are closed.

(10) An electrical inspection by Electrical Safety Authority and all the deficiencies identified during the inspection must be addressed. Owners should retain the letter of compliance received from the Electrical Safety Authority for future reference purposes. This letter must be made available to the Chief Fire Official upon request.
(11) A continuous separation with a 30 min. Fire Resistance Rating is required between dwelling units and between dwelling units and other areas. This may be provided by existing membrane of lath and plaster or gypsum board. Openings in Fire Separation shall be protected with rated doors installed in hollow metal or solid wood frames and equipped with self closing devices Lesser degrees of Fire Resistance Rating may be acceptable with the provision of interconnected Smoke Alarms or Sprinkler Protection. The containment features are intended to provide protection for the occupants living in a dwelling unit from a fire occurring in another portion of the building, outside of their control.
(12) A single means of egress - provision for the escape of persons from each dwelling unit in the event of fire - may be acceptable if the following conditions are met:
• It is properly separated with a 30 min. Fire Resistance Rating
• The flame spread rating of means of escape does not exceed 150 (wood paneling is unacceptable)
• The means of escape does not involve entering another dwelling unit or other occupancy and leads directly to the outside at ground level. Two means of escape are required if one means of escape is through another dwelling unit. An existing means of egress may be acceptable if the building is sprinklered.

 basement apartment ideas | ... in the basement 5 Things to Consider before Finishing Your Basement

A detached house, semi-detached house or row house containing two existing dwelling units (each unit containing living, cooking, sleeping, and sanitary facilities) may be permitted if it was in existence on or before November 16, 1995 and meets the Ontario Fire Code requirements. Proof is required to establish the date upon which the second dwelling unit came into existence (on or before November 16, 1995):
* An affidavit, sworn before a notary public or commissioner of oath confirming the date of construction of the second unit and confirming that the unit has, either currently or in the past, been occupied as a dwelling unit.
AND, Any one of the following:
1. Past rent cheques
2. Assessment Roll information
3. Lease agreement
4. Installation date of a second hydro or gas meter
5. Utility bill for both units
6. An affidavit from past tenant(s), sworn before a notary public or commissioner of Oath confirming the occupancy date(s) – affidavit must include former tenant’s current address and phone number

Section 9.8 of the Ontario Fire Code prescribes the requirements for Retro-fit for basement apartments in the following areas:
1. Exits - egress
2. Separations between dwelling units (ceilings and walls), doors, etc.
3. Smoke alarms
4. Carbon Monoxide alarms (per By-law)
5. Hydro inspection

When exploring adding a secondary suite, the first and best step is to call 311 and talk to the city of Ottawa.  Ask for the building code department.  They can walk you through the steps.  They will require full drawings of the space, so be prepared for a bit of a process to receive your building permit.


For information on Ottawa real estate and Ottawa investment real estate please contact the Bennett Property Shop Realty Brokerage.

Sunday, February 10, 2013

My First Novel - Otto and the Hunt for Mal Goue

Writing and publishing my first novel, Otto and the Hunt for Mal Goue, has been an interesting experience.  It was a bucket list item to write and publish a novel, so that is one item I can cross off my list of life goals.  It is really neat to see something you created out there, in the world and being read and commented on by others. 

I have to admit, it has been a huge learning experience.  It is common to think and dream that our novel can be the next Harry Potter, Twilight,  Hunger Games or Da Vinci Code, but statistically, we are more likely to end up sell no books, that millions of copies, like the aforementioned. 

For new authors, you hear about the e-publishing miracles like Amanda Hocking, who sells over 300,000 copies of her books monthly, and dream that they can hop on the bandwagon and become the next "overnight success".  At one point, she occupied four positions in the top 100 best seller list in the NY Times, a pretty amazing feat for any author, including those named Steven King, Dan Brown or Michael Crichton. 

It doesn't always happen that way.  My book has been published for almost a year and I am patiently waiting for the sales to skyrocket.  Most new authors sell zero copies of their novels, so I feel pretty blessed that I am well above the average.  I am planning out my next project and searching for the time to potentially make it happen.  In the meantime, to help out a new author and read a pretty awesome book, if I may say so myself,

Please click here to purchase a copy of my exciting first novel - Otto and the Hunt for Mal Goue, for just $2.99..

Housing starts up in January, SFR down 50%

Some interesting data came out this week on the housing starts.  Housing starts are tracked to judge the health of the new home building industry.  According to NAR (National Association of Realtors) research, for every two new homes built, one job is created.  These jobs are not necessarily just trades and construction jobs, there is significant spin off as well including car sales, clothing, restaurants, etc.

The positive news for Ottawa is housing starts are up 6% in 2013, over January 2012.  The change in that news, is the SFR (single family residential).  Following the 2012 trend lines, SFR continues to decline, “However, construction of single-detached units retreated by over half of their 2012 level capturing only 10 per cent of total starts.”

To check out Ottawa's January 2013 housing starts numbers click here please.

The good news for SFR?  CMHC (Canadian Mortgage and Housing Corporation) predicts that the mid point of 2013, the USA economic engine will switch from neutral to drive and by 2014, the USA economy will be lead the global recovery.  This will have significant impacts on Canada, and Ontario particularily, as historically, for every 1% growth in the USA economy, there is a correlating 6% growth in employment in Ontario.

For additional information on housing starts and Ottawa Real Estate, please contact the Bennett Property Shop Realty Brokerage

Thursday, February 7, 2013

New construction in Manotick

Mahogany by Minto is ready to launch March 3, 2013 in Manotick.  This is a huge new development, just South of the Village of Manotick.  There will be 1,400 new homes constructed, doubling the size of Manotick Village.

The development will offer both 35 foot and 60 foot lots.  The homes will range in square footage from 2,017 sqft to 3,995 sqft.  Prices start from $489,900 ranging to $850,900.  Closings will be November 2013 to February 2014

This is a very exciting new community.  There is a limited release for this year.  In order to jump the queue and get access prior to the March 3 opening the the general public, please contact me and I will make arrangements for a tour.

Please click here to contact me and obtain additional information and an opportunity to see the model and purchase your new home before the general public.  Remember the first people who buy, get to choose the most premium lots before the general public (a HUGE bonus)!!!

For information on Ottawa Real Estate, contact the Bennett Property Shop Realty.

Wednesday, February 6, 2013

Ottawa market dips post "cool down"

Members of the Ottawa Real Estate Board sold 602 residential properties in January through the Board's Multiple Listing Service® system, compared with 682 in January 2012, a decrease of 11.7 per cent.

"The Ottawa resale market, which started to flatten out in November and December - potentially as a result of the governments' aim to "cool down" the market - maintained its steadiness into January," says Tim Lee, President of the Ottawa Real Estate Board. "January 2013 isn't too far off from the numbers we've seen in recent years, and although the units sold are a tad lower, Ottawa remains a healthy market."

An economic summary of expansion in Ottawa by Shore-Tanner and Associates indicated that the rates of growth in residents over the age of 55, and particularly in the formation of single and two-person households, will continue to rise in the coming years. Consequently, these trends indicate that there will soon be a strong demand for small apartments, condominiums, and retirement homes. "Within some areas of Ottawa, we are already starting to see condo sales on the rise," says Lee.

January's sales included 136 in the condominium property class, and 466 in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, stacked etc.), which is registered as a condominium, as well as properties which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties.

The average sale price of residential properties, including condominiums, sold in January in the Ottawa area was $342,458, a slight decrease of 1.8 per cent over January 2012. The average sale price for a condominium-class property was $268,604, an increase of 6.1 per cent over January 2012. The average sale price of a residential-class property was $364,011 a decrease of 2.5 per cent over January 2012. The Board cautions that average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.

The Ottawa Real Estate Board is an industry association of over 2,800 sales representatives and brokers in the Ottawa area. Members of the Board are also members of the Canadian Real Estate Association.

For questions about Ottawa real estate and investing in Ottawa real estate, contact the Bennett Pros.