Sunday, June 22, 2014

Student housing opportunity

At a recent property management symposium in Toronto, the general consensus was that student housing is a top choice for investors going forward. Ottawa, in particular, was discussed as a very desirable student housing destination.  The University of Ottawa has approximately 42,000 students and only 2,800 residence beds. 

There is an extreme lack of student housing in Ottawa.

House located in MacDonald Gardens
only 2.2 kms from University of Ottawa
Number of bedrooms - 5 (space for a 6th)
Number of bathrooms - 2 (rough in for 3rd full)
Estimate rent - $500 to $550 per room per month

Asking price - $499,900

Friday, June 20, 2014

Rental Increase in Ontario 2014

TORONTO -- The Ontario government is capping next year's rent increases at 1.6 per cent.
The cap, also known as the rent increase guideline, is the maximum a landlord can raise a tenant's rent without the approval of the Landlord and Tenant Board.
It applies to rent increases between Jan. 1 and Dec. 31, 2015.
The guideline is based on the Ontario Consumer Price Index, a measure of inflation calculated monthly by Statistics Canada.
The 2014 rent increase guideline was just 0.8 per cent -- the second-lowest cap since rent regulation was brought in almost 40 years ago.
The guideline covers about 85 per cent of private residential units in Ontario and applies only to buildings built before November 1991.

Read more:
The Canadian Press
Published Friday, June 20, 2014 2:19PM EDT 

Wednesday, June 18, 2014

Home sales data

National Home Sales:
Month to Month Sales increased by 5.9% from April to May 2014
Year to Year sales increased by 4.8% from May 2013 to May 2014
Listings climbed month over month by 3.8%
Average sale price has gone up 7.1% year over year Nationally (taking out Greater Vancouver and Toronto sale prices increased 5.3%)
Average price in May was $416,584.  Omitting Vancouver and Toronto, average price point was $336,373 year over year.

Ottawa monthly Breakdown:

1,792 Properties sold in May of 2014 (1,489 Residential and 303 Condo), 5 less than May of 2013. Still higher than the 5 year average for May (1765).
Average Sale prices (residential and condo) was up to $381,172, which is a 3.2% increase year over year.
Condo’s average price in May was $280,661, up about 6.9% over last May.
Residential average price was $401,626, yearly increase of 2.1%.

Monday, June 9, 2014

Brand new duplexes

There are four new Ottawa duplexes being built.  They are town home style duplexes.  This is very, very RARE.  These properties are part of a larger development of Ottawa town homes.

Deposits - $20,000
Close - Spring 2015
Prices - $524,900 to $574,900
Condo fees - $295

The duplexes feature:
1 three bedroom and 1 two bedroom
1 two bedroom unit and 1 one bedroom

Modern exteriors designed by Barry Hobin. 

Wednesday, June 4, 2014

my first investment property

I recently bought my first investment property with Bennett Property shop. From the start Greg was able to provide excellent advice and strategies in everything from property type selection, to maximizing returns over the long term.  The Bennett Pro's team has the negotiating skills and industry contracts to get the job done to your advantage.  I would definitely recommend Bennett Property shop, they are very attentive to your personal goals and do a  very efficient and professional job.

Many Thanks


TD Economics

Data Release: Higher inflation and subdued growth lead to minor language, not rate, change
  • As was universally expected, the Bank of Canada held firm on its overnight rate, keeping it at 1.00% (unchanged since September 2010).
  • Recent developments have made the Bank of Canada's job increasingly difficult, as it balances off a somewhat higher trajectory for CPI inflation against lackluster real GDP growth in the first quarter of 2014.
  • This said, the world seems to be largely unfolding in line with the Bank's narrative.  While total CPI inflation hit 2.0% y/y in April, the Bank largely chalked up the surprise to transitory factors such as the increasing prices of natural gas and other energy areas.  Meanwhile, core inflation came in at a more subdued 1.4% y/y, albeit the latest in what looks to be a slow moving upward trend. 
  • At the same time, the muted growth in the first quarter of this year came in modestly below the Bank of Canada's projection in the April 2014 Monetary Policy Report (MPR) (1.2.% vs 1.5%, respectively).  In spite of the weak growth in the first quarter, the Bank emphasized the impact of temporary factors, such as severe weather in Canada and the U.S., and highlighted its view that the lower dollar and anticipated strengthening of foreign demand should spur exports while stronger corporate profits should support business investment going forward.   
  • Looking beyond Canada and the U.S., developments in the global economy were weaker than the Bank's expectations in the April MPR, with the Bank emphasizing slightly greater weight on downside risks from the global economy.
  • Finally, rounding out the risks identified by the Bank is the elevated level of household debt, which continues to be on the Bank's radar but doesn't look to be a driving concern as growth in household debt has slowed markedly since the recession.
Key Implications
  • All in all, despite mixed signals coming from prices and growth, the world is generally unfolding in line with the Bank's expectations laid out in its April MPR, justifying its continued policy of maintaining the overnight rate at 1.00% and emphasis on the downside risks to the inflation outlook.
  • With both total and core inflation tracking higher than the Bank's April projections for the second quarter and growth expected to pick up modestly over the remainder of the year, expect to see the emphasis on the downside risks to inflation diminish gradually going forward.  That said, in an environment where core inflation remains below 2%, the Bank will have wiggle room to maintain its currently highly-accommodative stance into 2015.
  • With this in mind, TD Economics continues to expect the next interest rate hike won't come until the second half of 2015.