Thursday, September 22, 2016

Superb...

Dear www.bennettpros.com

A very many thanks and hopefully I will be able to use you again in the future. Greg Blok and his team did a superb job.
Kind Regards,
D-R

Thursday, September 15, 2016

Vanier sewer replacement update

Just like the Glebe, Westboro, Little Italy and most recently Rideau Street, Montreal Road through Vanier will soon have their sewers replaced and street-scape modified.  From the City of Ottawa.....

·         The 2016 Trenchless Sewer Lining Program (East) is currently in the preliminary design stage.  The City of Ottawa anticipates that sewer lining on Montreal Road, between North River Road and L’Eglise Street, will occur during the first half of 2017.   
·         An integrated road, sewer and watermain rehabilitation project is planned on Montreal Road between North River Road and St. Laurent Boulevard. The work will consist of road resurfacing/reconstruction, sidewalk reconstruction, streetscaping, watermain replacement and only specific sections of existing sanitary sewers (38 m west of Ducharme Blvd. to L’Eglise St. and L’Allemand St. to Lajoie St.). This project is currently in the planning stages and design is scheduled to take place in 2017 / 2018 and be constructed in the 2019 to 2021 timeframe.

Monday, September 12, 2016

Air BnB hotel concept

I think this would be an amazing place for an Air BnB hotel type concept.  It is 26 units, in two buildings just blocks from the market.  The majority are one bedrooms.  The effective age is approximately 3 or 4 years old.  

Cheapest hotel is usually 'Les Suites' and it is about $150 per night.  If you can rent these at $110 per night, per unit, with 50% occupancy, that is a gross rent of $43,615 per month ($523,380 annually).  

Annual insurance, utilities and taxes are $63,513.52

This is about $2,287.50 per month (similar to a furnished rental rate from the government).  I could arrange for a company to completely furnish the suites for about $10,000 per unit (furniture, linens, dishes, etc)

In other cities, owners hire a property manager who advertises, cleans the units, handles all the inquiries, bookings, etc and gets paid in the range of 20%.  I think you could probably bring this down a bit.  That would work out to about $104,676

Since these would not be rented on longer term leases, you would not be subject to the Landlord Tenant Act (imo - would need to verify with a lawyer).  

They are asking in the $5.8m range, but I am sure there is some flex.
Net income in the range of $364,190 (cap 6.28%)

Friday, September 9, 2016

Jobs up in August...

OTTAWA - The Canadian job market rebounded in August, gaining back much of the ground lost in a big drop in July.
Statistics Canada says the economy created 26,200 net new jobs in the month compared with a loss of 31,200 in the previous month.

However, even with the increase in the number of jobs the unemployment rate crept up to 7.0 per cent compared with 6.9 per cent in July as more people entered the labour force and started looking for work.

Economists had expected a gain a 15,000 jobs and the unemployment rate to hold steady at 6.9 per cent, according to Thomson Reuters.

The increase in the number of jobs in August was due to a gain of 52,200 full-time jobs, offset by a loss of 26,000 part-time positions.

For the full article, please click here 

Thursday, September 8, 2016

Buying an investment with less than 20% down

Typically clients need to have 20% or more down on a rental however with these solutions they can (if approved) buy a rental with less then 20% down.  

1.  Flex down / borrowed down mortgage

I have access to a lender, at discounted interest rates and no unusual conditions, that allows a client to borrow their down payment on a one to two unit property if they live in a unit.  (For example, a duplex where they live in one unit and rent the other)  A client can use a credit card, line of credit, personal loan, family loan and so on for the down payment and the lender will lend the rest.  

2.  Owner occupied rental

A client that is living in a unit of a 2-4 unit rental can put down as little as 10%.  This mortgage will be using a mortgage insurer (i.e. CHMC) and therefore a client will have to pay their fee and also meet the mortgage insurer’s guidelines to qualify.  Lenders will typically use only 50% of the rental income from the other units.  Also, many lenders will want to see that there is a vacant unit on closing that the purchase can move into.  

3.  Combing a first and second mortgage

I am able to review with clients a first and second mortgage option totalling up to 90% loan to value and with that, the client would put down 10%.  As one lender is not lending more then 80% of the value of a property, a mortgage insurer (i.e. CMHC) is not involved and therefore a client does not need to be bound to their guidelines and pay their fee.  This also may assist clients in qualifying for a larger price range.  Furthermore, the lender can typically use more then 50% of the rental income.  

Andrew Thake, Mortgage Agent
Ottawa Mortgage Man

Record breaking year for Ottawa resales

Members of the Ottawa Real Estate Board sold 1,484 residential properties in August through the Board’s Multiple Listing Service® System, compared with 1,276 in August 2015, an increase of 16.3 per cent. The five-year average for August sales is 1,265.

“To date, this has been a record breaking year for units sold,” says Shane Silva, President of the Ottawa Real Estate Board. “The year started off a little sluggish, but as soon as April hit we were either breaking records, or outpacing the year before considerably. Not only are we up 16.3 per cent over last year, this has also been the best August on record ever for Ottawa Real Estate Board Members, blowing the average for August sales out of the water. This is a-typical of August when units sold normally start to decline approaching the fall.”

“Units listed in both residential and condominium property classes continue to decline, as well as active listings at end of the month,” says Silva. “These numbers suggest that buyers have less options when looking to purchase, with the potential of entering into a seller’s market soon.”

August’s sales included 295 in the condominium property class, and 1,189 in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, townhouse, 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.

“Average sale prices have been keeping steady all year,” says Silva. “This past month, however, there were six more properties sold in the $1 million plus range over last year, a possible explanation for the bump in average sales price for both condo and residential properties.”

The average sale price of a residential-class property sold in August in the Ottawa area was $389,786 an increase of 2.5 per cent over August 2015. The average sale price for a condominium-class property was $272,166, an increase of 11.1 per cent over August 2015. 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 hottest segments in our market for August continued to be two-storey and bungalow residential homes in the $300,000 to $400,000 price range, followed by one-level and two-storey condos in the $200,000 to $300,000 price range,” says Silva. “In addition to residential and condominium sales, Ottawa Real Estate Board Members have assisted clients with renting almost 2,200 properties since the beginning of the year.”