Commercial Real Estate 101

Real Estate Insider: April 2020 News Report

2020-04-06T15:34:00.001-04:00

Is this pandemic another example of why real estate is the best investment? Read here how this investor wanted to diversify his portfolio with real estate, and is now expecting a 15% return on his purchase!

A lot of people with an up-to-date will think they are prepared if anything were to happen to them, but there are two more documents that everyone over 18 should have in their possession! Read here about how a financial and medical power of attorney could save you and your loved ones a lot of money and hassle during a difficult time.

The financial samurai makes an argument for taking advantage of the low interest rates and stock market correction by re-financing your home to buy stocks, but do the pros outweigh the cons? Read both here and decide for yourself!

If the Stress Test is stressing you out, you may just need to learn more about it! It was implemented to prevent another market crash when interest rates rise (and they will). Read here everything Canadians need to know about the mortgage stress test!

Contract wording can be tricky… this buyer found out the hard way when he lost his $100,000 deposit! Read this article about the “reality cheque” this buyer had to write for not fulfilling his contract, even though “without personal liabilities” was written directly in!

Changing tenants in your rental property can be a long and expensive transition, this article is here to smooth out any bumps in the road you may experience by preparing you to be in control! The best way to avoid a problem is to solve it before it starts, so read this article, take control, and “smooth out the move out!”

OK BOOMER — Recent study shows that 86% of baby boomers want to stay in their current house for as long as possible. Is the age of downsizing over? Read here the motivation for most adults wanting to stay put!

You always hear about people’s wins, but never their losses! While everyone seems to have made huge money on Toronto real estate in the last few years, there have been people who have lost just as much! Moral of the story: real estate isn’t a perfect investment, and can be done extremely wrong! Read here some stories on how people lost big, so you don’t make the same mistakes!

Easiest way to protect yourself as a tenant or landlord? Make sure it’s in the lease! Handshake deals are a thing of the past, and at the end of the day, what’s in the lease goes. Read here why “having it in writing” isn’t always enough.

Deciding to buy a home with your significant other can be a very exciting (and nerve wracking) time. Unfortunately, this seemingly happy process needs to be dampened by “the talk”. It is very important to make sure everyone is on the same page with what to do with your property IF you were to ever break up. Making sure the ground rules are in place before it gets ugly can save everyone a lot of time and money! Read here why having such an awkward talk is definitely worth it in the long run.

The whole world needs to come together (metaphorically speaking) at this time to minimize the damage done by COVID-19. One of the biggest aspects affecting how this will all turn out is the actions taken by big banks to help their borrowers affected by this pandemic. It seems PR is doing their job, but are their business practices really here to help? Read here how big banks may seem like the good guys right now, but caution needs to be taken because at the end of the day, the banks are working for their shareholders.

Last month saw the big banks cut rates three times! How much lower will they go? Read here how these rate cuts are attempting to cushion the impact that this virus has brought on.

When the Federal Reserve cuts rates, most people expect the mortgage rates to drop by a similar amount. This isn’t always the case, because the Federal Reserve doesn’t control the mortgage rates, it is actually the market that calls for an increase or decrease in mortgage rates! Read here the aspects controlling out rates and what to expect moving forward!

Financing is a complex tool that should never be taken for granted. Just because you have all of your ducks in a row, doesn’t mean that lenders have the same agenda that you do. Read here how assuming similar mortgage rates and terms as previous deals might end up costing this investor all of his return!

An array of misinformation has caused panic at the Landlord Tenant Board, particularly in the “is rent still due” area. This has pushed GTA investors to call for a “rent bank” to be created to help landlords who’s tenants are refusing to pay with little to no consequences. Read more here about the confusion and who you think should be on the hook!

The federal government has been faced with big decisions on how to disperse money amidst this crisis, and the NDP has once again called for the feds to make sure tenants, landlords, and all home owners aren’t devastated by this pandemic. Do you agree with their solutions? Let us know!

How will COVID-19 impact the real estate market in Canada? This article gives a glimpse of short-term and long-term changes to the real estate market, including one of the “coolest” spring markets we have seen in a long time.

Ontario’s Emergency Legislation is unfair to landlords, in summary, “Landlords have been handed the burden of taking care of the province’s social, low-income, and lack of housing problems.” Do you think it’s fair for the government to put that burden on landlords? It’s easy to think all landlords are rich and evil, but we can tell you from first hand experience that it is simply not true. This legislation may devastate many investors trying to provide a better life for their family, or setting up their own retirement fund (because many people can no longer count on pensions!) What are your thoughts? If you are a tenant or landlord in Ontario we would love to hear from you!

Real Estate Insider: Special COVID-19 Report

2020-03-25T11:52:00.001-04:00

Interest rates can’t get much lower before they hit zero, but are they poised to go into the negatives? As this pandemic timeline increases, so does the possibility of Canada’s government interest rates to go below zero for the first time in history! Read here about the possibility of negative interest rates and how it could affect other areas of the Canadian economy!

With the stock market in a free-fall, how does it affect real estate prices? This financial samurai has already lived through 3 “Bear” markets and takes a deep look at the numbers to find a correlation between the size of the stock market correction and real estate prices. Read here if you think now is the time to get into real estate!

Canada’s largest banks act quickly to cut prime lending rates, but will these savings be passed down to the average consumer? Read here and give us your thoughts!

EI AND EI SICKNESS BENEFITS 101: This article explains everything you need to know to get started with EI, including how to apply, the ins and outs, and who qualifies!

Mortgage relief amidst the Coronavirus - Big 6 banks all doing their part to help with the economic impact of this pandemic. They are mostly on a case by case basis, so read here how your bank is handling this (so far) and see what relief you qualify for!

This article provides 5 ways to potentially benefit from the slashing of interest rates!

Quarantine has had an affect on almost every aspect of peoples lives, including searching for homes! May not come as a surprise that during this pandemic, it seems Canadians have lost interest in buying homes! Read some of the statistics here.

Flippers beware, you might be in for a scare! With real estate flips being at the peak of popularity during the beginning of the year, many investors may find themselves with a beautifully renovated property, and no-one to show it to! So much uncertainty has evolved over the past few weeks, and re-sellers may find it difficult to get top dollar for their short term property flips. Read here this blogger’s thoughts on re-sale homes moving forward.

Read here some first hand stories from frustrated homeowners looking to take advantage of the mortgage deferral program, only to find out the banks are just as unsure as they are!

Would you be willing to risk your health to reduce the financial impact of this Virus? Read here about real life examples of people who aren’t financially able to last during this shutdown for more than a few weeks, and let us know where you stand!

Must watch! Real Estate lawyer gives tips on how to protect your real estate deals during COVID-19.

Read here different testimonials from Realtors all over Canada on how COVID-19 has affected their market!

Real Estate Insider: March 2020 News Report

2020-03-11T12:26:00.000-04:00

Whether it's Ballin or Renovating, most people doing it are on a budget! This article talks about looking “below the surface” and can give you some awesome tips on choosing tile and counter tops when renovating to give you the most bang for your buck!

Did you know the first metre or two of your property frontage is a city owned right of way? This means they do not need your permission to install and service many items. Read here this person’s experience of a surprise sign being erected on their lawn, how it could affect your property value, and how you can fight it!

If you’re hiring a renovation company to do some work in your home, you need to make sure you know what contracts and insurance to have in place before they break out the sledge hammer! Lucky for you, this article does exactly that!

Would a 10 year fixed rate mortgage term make you more comfortable when taking out a loan? It would certainly get rid of the fears of rapidly rising interest rates every 5 years. This seems to be a possibility in the near future for Canadians, but one of the main things keeping this from happening sooner is lack of demand! Read here the benefits of longer term fitted rate mortgages and how it could help people currently excluded from the market buy in.

You know the old saying, “If you don’t have anything nice to say about a company, the company will get their employees to make up positive reviews for you.” Or something like that, right? Purplebricks Canada is under investigation after incentivizing their employees with paid vacation days to write fake reviews about the company. Would this lose your trust as a customer? Let us know! Read more here.

With mortgage rates at an all time low, is it time to pay off your mortgage early? Read here the benefits and costs that are associated with this strategy, as interest rates continue to fall!

The best teacher is experience! Read here this couples re-cap of their first year with a Mini-Split Heat pump, and how much money they actually saved!

Do you own, or have used an Airbnb in the past year? If so, look out for the increase in regulations across Canada and make sure you’re prepared! Read here the first few cities to see the tightened regulations, and who’s next!

If you are a commercial Tenant, make sure you read this article differentiating between a “sublease” and a “lease assignment” so you don’t accidentally lose your rights as a Tenant!

Real Estate Insider: February 2020 News Report

2020-02-11T14:06:00.000-05:00

If you’re sitting on a paid-off house in a prominent area, you may think you’re sitting on a gold mine for retirement. However, there are many factors to consider when deciding whether to down-size, right-size, or get out of the market completely. This article gives you a general overview of things to consider before pulling the trigger on putting the “For Sale” sign up!

In response to the current housing crisis, Ontario Conservatives have released a “Co-ownership guide” to help people maximize the space in large homes and share the cost. This sounds great in theory, but there is a high risk of financial disputes that they fail to mention or prepare you for. Do you think you could own and live in a home with a friend? If your answer is yes, read here for some potential problems to prepare for!

How well your investments do largely depends on the asset class you choose to invest in. Read here why this investor chose farmland 7 years ago over many other investment classes, and why he just realized a return of 268%! Even if farmland isn’t your cup of tea, this article can help you look at the bigger picture when it comes to investing so you can make sure your money is working harder than you are!

With many new condo projects in the works for Windsor-Essex, make sure your current condo is keeping up with the modern look! Here’s 3 renovation tips for condos that can help keep it at (or bring it too) the top of Market Value.

If you have one or more rental properties, you may be missing out on RRSP room that could help you during tax season! Read here “How does income from a rental property create RRSP contribution room”.

Read here why wood-framed apartment and condo buildings are slowly becoming the “norm” in todays market and why some builders even prefer this method! **Hint hint, it has a lot to do with money!

Canada’s top banker believes a solution to the affordability crisis is to split mortgage costs with investors. This is far from a perfect solution, but could be a step in the right direction, Read more here about what it would entail.

Canadian rents are up 4.3% since last year, read here which cities saw the biggest increase and which cities are still “affordable”.

This article describes 4 ways to save more on taxes if you’re a real estate investor. Including the difference incorporating yourself or your business can make!

Real Estate Insider: January 2020 News Report

2020-01-16T11:10:00.000-05:00

A sign of a good economy is cranes in the sky! There were more permits for new construction in 2019 than ever before in Windsor-Essex! Read here some of the biggest developments happening in Windsor and the most popular permits granted across the city!

A large reason for the recent Windsor- Essex real estate boom is the vast number of people moving to town! But who is it that’s moving in? From immigration to youth from other Ontario cities, see which group is moving in the largest numbers and why!

Being a Landlord is becoming more and more difficult in Ontario, especially if you rented to a bad Tenant (and now you’re stuck with them). According to this article, it is mostly due to the incompetence and abuse of power the Landlord Tenant Board is showing in favour of Tenants. Read this article about this Landlords bad experience and let us know if you’ve had your own bad experience with the LTB!

With a large percentage of the population set to retire in the coming years, there will be a lot more people looking to supplement their retirement income with investments, but should these retirees be borrowing to invest? The answer is most likely no, but everyones situation is different! Take Garrey for example, he’s wondering if borrowing to cover his rental property expenses is a good long term strategy in retirement. If you have similar questions, this article is a great starting point!

Do you know your credit score? If you’re going to be applying for a mortgage in the near future, the more you know the better! Read here to learn more about where to find your credit score, how it is calculated, tips on improving it, and more!

The Average single family home size is declining, this is a positive sign for Real Estate investors due to the cyclical tendencies of the market. Learn more about why the reduction in size could mean big bucks for real estate investors in the coming years.

Ever wonder what would happen if your real estate deal doesn’t close on time? It can get pretty messy if the Buyer or Seller is late delivering documents! Read here what would happen if bad weather or traffic were to hold up the closing of your dream home.

Here’s 5 tips to keep the temperature up and heating bill down all winter long! What we like to call a “Win Win!”.

Read here why EVERYONE should have a will, and keep it updated!

Real Estate Insider: December 2019 News Report

2019-12-18T15:59:00.000-05:00

Take a page out of Russel’s book if you are considering a recreational investment property, and look to the south! (Or if your’e in Windsor, North!) This article explains the advantages of investing in the US for Canadian Millennials.

Is your rental property a part of your short term or long-term financial strategy? This will determine how you should allocate the costs of the improvements you will most likely have to make. Read here if you are wondering whether to write it off of your income this year, or take it off of your capital gains when you go to sell!

Cashing out on your home and renting in retirement might seem like the right choice, but there are many other things to consider before making the jump from owner to renter. What kind of return could you get if you invest the money? What kind of retirement do you want to have? These questions and more are considered in this article for soon-to-be retirees!

CRA is really cracking down on Real Estate transactions. Make sure you consult a professional when Buying or Selling Real Estate so you don’t get caught paying hundreds, if not thousands, in fines! Read more about Real Estate tax mistakes a lot of Canadians are making here.

Is Real Estate still a good investment in Canada? The simple answer: As long as you do it right! Read here this real estate investors tips on doing it right and the risks to look out for!

Have you had an experience with the Tarion warranty? This article claims that Tarion seems to favour the Builder and not the Homebuyer. This needs to be fixed as soon as possible! We want to hear your experience dealing with Tarion!

Water is something you use everyday without question, so the next time you’re thinking about doing a renovation, keep your water bill in mind! An undetected leak or failed system can cost you thousands per year in wasted water. Read this article on how to reduce your water bill and save some coin while doing it!

The mortgage stress test is to ensure people are still able to afford their home if interest rates were to increase. This sounds like a good idea for most, but not for retirees! Read here how the stress test is making it tough to borrow later in life.

Do you know the assessed value of your home for tax purposes? More times than not it is much lower than the market value of your home. MPAC announced that they will be doing new property assessments on some properties in Ontario! Do you fall in the category for a potential new assessment? Find out here.

This video explains 5 things to know about the changes to Real Estate Agent laws in Ontario.

Real Estate Insider: November 2019 News Report

2019-11-26T09:16:00.000-05:00

Four step process for Landlords when establishing the relationship with your Tenant. A must read for all new landlords. Read about it here.

What would you do if your friends wanted to do something illegal with a rental property that you're a partner in? That's the issue this man had when his friends didn't want to claim their portion of capital gains. What type of risk is he exposed to? Read here and always be careful who you go into business with!

When interest rates dropped, amortization periods were also lowered to even things out. We are at a time now when interest rates are set to rise again, however no one really knows when. This article discusses the potential increase in amortization periods to offset the predicted rise in interest rates. Read all about it here!

Mortgage 101: A guide for the first time homebuyer.

Which is better for your mortgage, a longer or shorter amortization period? Well that depends on your income, downpayment, risk aversion and more! Read this to help you decide which path to take when deciding on the terms of your mortgage.

The student-housing crisis also correlates to a big opportunity for real estate investors, but what makes a great student rental? REIN has released a student housing formula to help you make an informed decision when choosing student rentals.

Everything you need to know about Mortgage Brokers and why going to your bank for a mortgage may not be the best option.

The classic Buy vs. Rent debate continues! But this time it's about... Hot Water Tanks? You may never have thought twice about your hot water tank, but maybe now it's time to take a second look! Read about it here.

If you own a property in the states (especially Florida), this article can explain the process of handing this property down to your kids/loved ones! Also how to avoid probate and other unnecessary expenses!

Landlords - Reasons For Ending a Residential Tenancy Early in Ontario

2019-11-13T12:41:00.000-05:00

In dealing with our investor/landlord clients, we often come across situations where a residential tenancy agreement needs to be terminated early. Because this can be a technical process sometimes the rules are misunderstood. Today we are going to cover the legal reasons for ending a residential tenancy agreement early so you don’t get yourself in trouble.

Reasons for Ending a Tenancy Early

1. The landlord and tenant mutually agree to end the tenancy early. This can be for whatever reason. Form N11 should be used for this process.

2. Ending an agreement for “cause”. Some examples include:

I). Not paying the rent in full

II). Causing damage to the rental property

III). Disturbing other tenants or the landlord

IV). Illegal activity in the unit or complex

3. There are also other reasons for ending a tenancy that are not related to what the tenant has done, or not done. These are sometimes called "no fault" reasons for ending a tenancy and can include:

I). The landlord plans to do major repairs or renovations that require a building permit and the work cannot be done unless the rental unit is empty.

II). The landlord requires the rental unit because the landlord, a member of the landlord’s immediate family or their caregiver wish to move into the unit.

III). The landlord has agreed to sell the property and the purchaser requires all or part of the property because the purchaser, a member of the purchaser’s immediate family or their caregiver wish to move into the unit. (This reason for eviction only applies in rental buildings with three or fewer units and in condominiums.)

4. There is a long list of other technical reasons. They can be read here Ontario Landlord & Tenant board website:

http://www.sjto.gov.on.ca/documents/ltb/Brochures/How%20a%20Landlord%20Can%20End%20a%20Tenancy%20(EN).pdf

Now that you know some of the reasons a residential tenancy agreement can be terminated early in Ontario, you can protect yourself. Next time we will be discuss the forms, notices, time periods, etc you need to know to follow through on this process.

Readers, have you ever had to end a tenancy agreement early? How did it go?

Real Estate Insider: October 2019 News Report

2019-10-18T14:15:00.000-04:00

Ever wonder how the annual rent increase on residential properties is calculated? Is it really a fair percentage for Landlords? This article will give you all the information to decide for yourself!

Short term rentals and AirBnB, when are guests considered Tenants? How hard is it to evict? What you need to know heading into 2020! >>

If you’re buying an investment property strictly for short term rentals, be prepared for trouble when you go to get a mortgage! Why, you ask? This article explains how mortgage lenders are hesitant to loan money when the owner isn’t the one living there! Read more and how to get around it here!

Most condo’s or apartments have bylaws against short-term rentals, but that’s only if you get caught! Read here how the current enforcement is ineffective, and how new rules could pass that would change the short-term rental market drastically!

With the rapid increase of retiree’s from the baby boomer generation, and the last of the millennials entering the work force, retirement strategies are a hot topic! Millennials need to start thinking and planning for retirement as soon as yesterday, but with defined pensions reducing in popularity, is real estate a good alternative? This article says maybe not! Read more here.

To move…or to renovate…THAT is the question! Real estate prices have risen drastically in the last few years, but so have construction costs! Is adding an addition more beneficial than moving to a bigger home? There are many factors to consider, and this article will help!

A lot can happen when selling your home, including accidental damages left by potential Buyers! Who is responsible for fixing these damages? The answer might surprise you! Read more here.

How divorcing your spouse can affect your mortgage, and how the new mortgage rules are making it difficult for divorcees to find a new home. >>

Here are 6 things that could be hurting your credit score that you might not even know about! Read here to stay informed and keep that credit score up!

Real Estate Insider: September 2019 News Report

2019-09-24T10:03:00.000-04:00

Not a surprise that Windsor-Essex is a Seller’s market, but statistics show that it’s balancing out! Check out how it compares to the rest of Canada, and also see the best places in Canada to buy a house! >>

If you’re lucky enough to own a cottage, hopefully when you’re not enjoying the simpler things in life, you’re making some money off of it! Here are 11 tax-deductible expenses you may have missed to bring up that bottom line! >>

You’ve heard the saying “Don’t put all your eggs in one basket”, but does that apply to bank accounts? Read here for tips on where to keep your money to make sure it’s protected! >>

Minneapolis just changed the affordable housing market game! Allowing multi-residential properties to be built anywhere in the city. Do you think this would solve Windsor’s problem? Read more here!

If you’re thinking about buying a home this is worth the read! Step-by-step process on everything from improving your credit score, getting a mortgage pre-approval, and costs associated with owning a home! >>

Short-term rentals and airbnb, advice from a lawyer on what you need to know! >>

Just because a document comes from a large professional company (like a bank), doesn’t mean it’s perfect! Things like mortgage documents must be read carefully, and this article will give you the major points to go over to make sure you understand what you’re reading! >>

Is Canada’s real estate market due for a correction? According to these ratios, the answer is yes! Read here how Canada ranks world wide for risk of a Housing Bubble.

You can do pretty much everything online; it’s time to add, “Mortgage shopping” to that list! Read here tips on finding the best mortgage rates online.

Contrary to popular belief, Tenants can’t end a lease early for no reason. This may be one area where the Landlord is more protected than the Tenant! Make sure you know your rights as a Landlord and also as a Tenant! Read here on proper notice and correct steps to ending a lease early. >>

Raising the Rent In Ontario - Everything You Need to Know

2019-09-17T14:39:00.000-04:00

This one is for all you landlords or aspiring landlords out there. Raising the rent on a residential tenancy in Ontario is a pretty technical process compared to many other jurisdictions. Today we will touch on what, when, how and why so you don’t make any costly mistakes along the way.

How Much Am I Allowed to Raise the Rent?

In Ontario in 2019 you are allowed to raise the rent 1.8%. In 2020 the rate will be 2.2%.

Where does this rate come from?

The rent increase guideline is based on the Ontario Consumer Price Index (CPI), which is calculated monthly by Statistics Canada. The 2019 guideline is calculated by averaging the percentage increase in the Ontario Consumer Price Index during the 12 months from June 2017 to May 2018. By law, the rent increase guideline cannot be more than 2.5 per cent, even if the CPI increase is higher.

How Often am I allowed to raise the rent?

In most cases, the rent for a unit can be increased 12 months after a tenant first moved in or 12 months since the tenant's last rent increase.

How Much Notice Do I Need to Give a Tenant Regarding the Increase? Hey

A tenant must be served a notice of a rent increase with a Landlord and Tenant Board approved form at least 90 days before the rent increase is to take effect.

Is There A Special Form I Must Use For Notice?

You must use a form called an N1: Notice of Rent Increase. You can find the form at this link:

http://www.sjto.gov.on.ca/ltb/forms/

The allowed increase rate is so small. Why should I even bother?

Your expenses are increasing usually in line with the inflation (CPI) rate, so if you aren’t increasing the rent, on a real return basis your rents will be decreasing. Also if you don’t or delay, you’ll missing out on some valuable compounding of your rent increases. This is especially important in multiunit buildings where if you are not doing these increases, the cash flow of the building will be going down and therefore the value of the building too based on that cash flow.

Are there exceptions to these rules?

Yes there are exceptions for certain situations where the landlord can apply to the Landlord Tenant Board to increase the rent more due to higher costs or capital expenditures. There are also some types of rental units that are exempt from these increase guidelines. You can read more about this on the Ontario landlord tenant board website - http://www.sjto.gov.on.ca/ltb/.

Increasing the rent is an important topic and this guide should help you avoid any issues. If you ever have any questions regarding residential tenancies don’t hesitate to reach out to us.

Real Estate Insider: August 2019 News Report

2019-08-21T12:25:00.000-04:00

Owning a home is a goal everyone is striving for. These days more than ever, the stress that Millennials put on themselves to own a home is negatively impacting a large portion of young adults everywhere, especially since it is statistically the most expensive time to get into the market. Read here who’s to “blame” and why owning a home early isn’t as necessary as most of us think.

Do you ever go out of town for a weekend, a week, or even a month? Why leave your house sitting empty when you could make some cash by turning your home into a short-term rental! No lake house cottage needed! Read here on a few tips to make sure you’re heading in the right direction!

Thinking of selling and not sure whether to spend your hard earned money on fixing it up first? Will the ROI be worth it? Read here why making your home “Move in ready” can make all the difference to young millennial buyers, and other tips to max out the sale price.

Millennials trying to break into the real estate market are getting creative now that prices are skyrocketing out of reach. Here are testimonies of 14 millennials on how they got into the housing market (Hint: be nice to your relatives).

Real Estate experts found and ranked the top 35 cities for buying real estate in Canada, and this is how they did it.

If you’re buying or selling, you should read this article on disclosers and the classic “as is” clause and what you should do to make sure you’re protected.

Mortgages are expensive, and so are getting out of them! Make sure when you make all the necessary calculations to see if breaking your mortgage is worth it in the end. Here’s what you should know. >>

Paying off your mortgage vs investing, the age old debate that everyone has an opinion on. Thankfully, this guy put his money where his mouth is! Clay has shared with us real data on his months of doing both and how the results influenced his decision for future money allocation.

Deciding how to invest your extra money can be difficult, luckily mortgage investing has just become easier thanks to Fundscraper – read about it here!

If you’re looking to buy a cottage, first of al congratulations! Second of all here are some legal issues to consider, because we always want to ensure you are prepared and protected!

Rental Property Investing - Confirming the Data

2019-07-30T16:27:00.000-04:00

When we consider investment property options, doing the math is generally straightforward as we determine ROI’s, cashflow projections, and the like. It’s how those numbers are arrived at and the ‘legitimacy’ of them, that is the next important exercise.

On the income side, we need to review the current lease agreements in place and confirm the rental amounts, in order to reconcile the gross revenue numbers which are represented. The lease will contain the balance of the term(s) remaining with the lease - including future increases, balance of time remaining, renewal details, and deposits which may apply. As a matter of best practice, time should be taken to review all leases in their entirety, to ensure there are not provisions which you may not be aware of (ie. early termination clause, additional rent caps, expiration of personal guarantees - just to name a few).

On the expense data, year end reports are typically provided and are ok for the initial review. But best practice is to verify the amounts against the owner’s income tax return(s), depending on the corresponding years being considered. Three years history is probably a reasonable period and again, we are looking for the figures to balance against what has been represented.

Just a further note on the tax return request – this would generally be something that would be incorporated in to the Offer to Purchase and form part of the Due Diligence process. The Seller needs to know that a deal is at hand and that the providing of such confidential details, is ultimately leading towards a sale of the property. Strict confidentiality provisions may also be required by the Seller.

In any type of rental property investing, as they say -- ‘the devil is in the details’. Make sure you verify those details, before proceeding to finalize any purchase.

Next up…discussing strategies and objectives with rental properties. Again, seek out experienced commercial realtors within your market to assist in finding the best rental properties available.

Real Estate Insider: July 2019 News Report

2019-07-15T15:04:00.000-04:00

With the increasing number of hoops the banks are requiring people to jump through to qualify for a mortgage, private lending is becoming more and more popular for many, especially the self-employed! Is a private lender advantageous for you and your business? Find out here! >>

Owning a cottage is a dream many of us have, and for good reason! But just because you can afford the mortgage payments, is it really the best idea for your short & long-term goals? Read here for tips and strategies to help determine if the relaxing weekend at the cottage outweighs the hit to your bank account. >>

The never-ending “Rent vs. Buy” debate continues! Read here about 10 lessons this couple learned after losing money on their home.

Windsor was named “The Best Place To Buy Real Estate” in 2019, but a lot of people are convinced we are sitting on a bubble that’s about to burst. What stage of the real estate cycle is Windsor currently in? Read here about the 4 stages of the real estate cycle and indicators of each and decide for yourself!

This Toronto lawyer thinks the government is very one-sided when it comes to dealing with developers and consumers contracts, with the consumers are getting the short end of the stick! But who’s really to blame? Read more here! >>

Interest-only mortgage payments are making a return to the Canadian market, this may be a viable option for those having difficulty qualifying for a traditional mortgage. >>

If the above article sparked your interest regarding interest-only mortgages, this article is for you! Read more about these mortgages and how they are taking the mortgage channel by storm. >>

Disclosure and “As Is” clause advice from a top real estate lawyer! What needs to be disclosed by a Seller and what doesn’t? Find out here. >>

A good way to make a cottage more affordable is to rent it out when you’re not using it! To help make this as advantageous as possible, here is a list of 11 tax-deductible expenses you should consider to save more of your money! >>

Having a pet can impact the sale price of your home in a negative way, so are they really worth it? Just kidding, of course they are! Be sure to follow these tips to make sure your lovable friend doesn’t turn away potential Buyers! >>

Rental Property Investing - Establishing Objectives

2019-06-28T14:25:00.001-04:00

Assuming you are considering rental property investing as a way to make money, then the next step is to establish a set of objectives. If you know what you want in terms of investment properties – you should try to focus your efforts on the best options within the market that fit.

Typical investment objectives should include:

Type of Property – residential, commercial/office/retail, vacant land
Types of Tenancies – single/freestanding building, multi-tenanted
ROI and CAP rate expectations
Growth/Appreciation expectations
Capital Available to be invested (aka – down payment)
Risk Issues – personal liability/financial guarantees/level of acceptable risk
Locational Preferences – core district, new/growth area, transitional area
Quality of the Buildings – older, newer, potential rehab and improvement costs
Management – self manage vs. professional management
Hold Strategy – buy & hold, buy/renovate/sell, buy&flip

This list should help you paint a pretty good picture of what sort of rental property best ‘fits the bill’. As with everything in the business world, compromises must and will be made. But this will allow you to search the rental property market from the outset, with a defined set of objectives.

Just a final note as you investigate your market of choice - all markets are local and operate based on their own local set of dynamics. Your investment objectives should be based in reality, to the market you are looking to invest in. It never hurts to review recent rental property sales, to see how likely you are to succeed - based on the set of objectives which you’ve established.

Again, seek out experienced commercial realtors to match your investment objectives to the rental property market in your area.

Real Estate Insider: June 2019 News Report

2019-06-17T16:07:00.001-04:00

Talk about attention to detail! This real estate investor kept track of 10 years worth of cash flows and headaches in their investment property all for the purpose of informing you! If you are thinking of investing in real estate, the phrase “hoping for the best, but expecting the worst” should always be in the back of your head. This article can explain why. >>

Are you ready to take your banking completely online? Read about Motusbank and its recent launch into Canada. How competitive do they have to be to get you to switch? >>

Reason #1374 why you shouldn’t cheap out on insurance! Could you imagine paying a mortgage on a house that didn’t exist anymore?? This family is living this nightmare after their house was swallowed by a sinkhole! Read more here. >>

There are some big changes coming to the Real Estate Industry in 2019! Make sure you and your Real Estate Agent are staying informed! Topics such as increased government assistance for first time home buyers, increased RRSP withdrawal limit, bidding wars are just some you should stay up to date on! This article is a great place to start. >>

You probably know that being close to public transit or highway access can increase the value of a property, but do you know how much? This article reveals the formula some investors use to perfectly time and calculate their purchases to get the most out of their investments. >>

Raise your hand if you’ve been personally victimized by a bully offer! OREA is fighting back against the bully offers by suggesting they be banned altogether! Do you think pre-emptive offers are just part of doing business, or a morally questionable tactic? Read this article and decide. >>

The rule of thumb when buying a house is to not have the yearly costs be more than 30% of your income. However it seems 4/10 Canadians are breaking that rule to get into the housing market. Are you willing to wait? Or is being “house poor” worth owning your own home? >>

Most “Condo Vs House” debates are about living quality and price, this article goes a different route and is looking at them from an investment standpoint. Which do you think is a better investment in your city? >>

While not having a mortgage is a great goal to have, other priorities can get in the way of quickly paying it off. Enjoying life should be one of those priorities! Read here why you shouldn’t stress if paying off your mortgage isn’t top 3 on your priorities list. >>

Read here about the large US Lender that is investing in Canadian business! >>

Rental Property Investing - Due Diligence on Yourself

2019-05-31T11:27:00.001-04:00

Investing in rental properties can be a lucrative way to create wealth, by not only providing an income stream, but also by creating an opportunity for capital growth – AKA -- an increase in the property’s value during your period of ownership. Types of properties can include – residential (single unit & multi-family), retail/commercial buildings (single unit & strip centres), office buildings (single unit & multi-complex), mixed use (ground floor commercial & above ground residential), industrial buildings (single unit & multi tenant complexes), and even raw land that generates some level of income.

After assessing the various property categories, determine the type that best fits with your objectives and will best meet your criteria. It isn’t one-size-fits-all in considering rental property investments and you need to do some necessary due diligence on yourself before moving forward – due diligence on the properties/market will follow later. Markets throughout Canada are littered with investment property ventures ‘gone bad’ and the best advice here is to ‘walk before you run’.

Some key questions to ask yourself:

Am I more interested in residential or commercial/industrial properties?
What locations/neighbourhoods are of interest?
Am I hands on, or will I require a property manager?
What are my cash flow/return on investment objectives?
What type of financing is required and what % downpayment can I put up?
What sort of financial implications can I expect due to vacancies?
What sort of maintenance & capital improvement costs am I willing to accept?
Will I incorporate? How can I best limit any liability?
What sort of market am I comfortable buying in?
Is liquidity an issue if I need to sell (quickly)?

Any investment comes with its share of risk and rental (investment) properties are no different. Good preliminary planning, starts with an honest self-assessment of YOU, your objectives, capabilities, comfort zone and so on. Once you’ve figured that out, it’s time to move on to the market in whatever direction best suits you.

Real Estate Insider: May 2019 News Report

2019-05-17T15:58:00.000-04:00

Whether it’s your first time or your 30^th time buying a home, you should be striving to possess as many of these traits of successful home buyers as possible! Read about all 9 here. >>

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If you own an older home and have been lucky enough to have never flooded, chances are you eventually will have to deal with that issue (hopefully on a small scale). But are you aware of what is covered under your current insurance? If not, you should be! Read this article to get started now and make sure you aren’t one of the many misinformed so it won’t cost you big later! >>

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The classic "Rent vs Buy" debate continues! This couple kept track of every penny they spent on their home over a 3-year period up until they sold, and compared it to renting. Which do you think was more expensive overall? Read here to find out! >>

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Younger generations are finding it harder and harder to break into the housing market. To help combat this, the growing trend seems to be “Friends with (housing) benefits!” Read here to learn some tips on buying a house with a friend! >>

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Don’t believe everything you read on the internet! Read here why that mortgage rate you saw advertised online most likely won’t apply to you. >>

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Just because a house or condo is new, doesn’t mean it is without risks! Make sure you take the phrase “Buyer Beware” just as seriously on new builds as you do on re-sale. Read here why! >>

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If you had a $50,000 budget, would you rather renovate your current home or relocate? And no, you can’t use the money for vacation! Read here if your answer is similar to most other Canadians. >>

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Should you aggressively pay off your mortgage? Everyone has probably thought about it, but no one seems to have a clear-cut answer. This may be because they aren’t looking close enough at the Yield curve. Read here why whether the curve is inverted or not should be a major deciding factor for you! >>

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Selling your home can be very stressful, but it doesn’t have to be! Follow these 8 strategies to guarantee a positive experience next time you go to Sell your biggest investment. >>

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Another great article on the Stock Market vs Real Estate debate! >>

Commercial Leasing 101 by Josh Shepley

2019-04-30T16:58:00.000-04:00

EVERYTHING YOU NEED TO KNOW BEFORE YOU LEASE YOUR FIRST SPACE

Windsor is known for being dependent on the automotive industry, but with the recent announcement from Chrysler about going back to two shifts, it is becoming more clear to everyone that diversification is essential to continue feeding the growth that Windsor- Essex has experienced in the last 3 years. One of the other major factors that drive this economy are small businesses.

We personally get calls everyday from entrepreneurs who have a great idea and a plan to execute, however need help with one of the most important aspects of starting/growing a business; a place to actually run their business! This is why we have put together this step-by-step guide to commercial leasing to make it easier for entrepreneurs to get everything they need to bring their idea to life!

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STEP 1: LOCATION

Everybody knows location is everything in business, and to be in the right location for YOUR business can make or break new businesses, especially in their first few years. Are you a destination or a walk-in based business? Do you have to be on the 1^st floor? What demographics are you trying to target? Do you need to be on a public transportation route? Do you have a complementary business that you would like to be close to? These are just a few of the questions that we ask when finding you that perfect location.

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STEP 2: ZONING

Every property has a zoning that has a list of specific permitted uses. Before you spend too much time on a location, make sure the zoning permits your business to operate in the space

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STEP 3: NET LEASE VS GROSS LEASE

NET LEASE

A Net Lease is typically what we see in commercial real estate; this lease is broken down into net rent, additional rent (operating costs), and utilities. The net rent is basically how much the Landlord’s charging you to use their space, this is the only rate that can be negotiated when leasing. Operating costs are how much it costs the landlord to run the building even if it was empty, this typically includes property taxes, building insurance, common area maintenance, garbage and snow removal, building repairs and maintenance, etc. All of these yearly costs are added up and divided by the total leasable square footage of the building, and the Tenant is responsible for their proportionate share. Typically when you see this type of lease, each unit is responsible for putting utilities in their own name and pay based on usage.

The lease rates you see are usually per square foot in the unit, per year. To get your total monthly cost, you must add the net rent and additional rent together, multiply it by the total square footage of the space, and divide that by 12. Utilities are use dependent, but as an example, we typically advise office users to budget $2.50 per square foot per year on utilities. If the lease is “Triple Net” then the Tenant is also responsible for any repairs to major capital items (Plumbing, HVAC, etc) that may be required during the term of the lease. If you are getting into a Triple Net Lease, be sure to have all these items inspected.

GROSS LEASE

This is typically seen in older buildings and buildings where utilities aren’t separated. This means that the price advertised is your “all in” monthly rent and you have no other costs for leasing the building. However some landlords will still require you to pay for utilities on top of this amount, make sure this is clearly understood before signing the lease.

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STEP 4: TENANT IMPROVEMENTS

Chances are the space you lease is going to need some renovations to make it suitable for your business, if it doesn’t; this is what we call “Turn Key”. There are many ways to go about Tenant improvements, and it largely depends on the specific situation and preference of the Tenant and the Landlord, and is negotiated before signing. Some of these methods include:

Rent Free Time – the first few months in your new space is rent free so you can spend that money on improvements and you are open for business and making money when your first rent cheque is due.

Tenant Improvement Allowance: - If the lease space is in rough shape or needs lots of renovations, sometimes the Landlord will give an improvement allowance so the Tenant can build out the space to their requirements and in exchange will sign a long term lease. The Landlord will reimburse the Tenant the agreed upon amount once renovations are complete and receipts are provided to prove the money has been spent in the unit and all proper permits pulled.

Landlord Build Out – This is where the Landlord will build out the space to the Tenants requirements, and typically in this situation we see Tenants paying higher rental rates so the Landlord can amortize the cost of the improvements over the Term of the lease.

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Overall, these are just a few of the things to consider when Leasing a commercial space. Be an informed tenant and your lease transaction should go smoothly. Also consider working with a qualified commercial leasing expert to make sure your interests are protected!

Real Estate Insider: April 2019 News Report

2019-04-18T13:24:00.000-04:00

Happy Easter Weekend! Before you put all of your eggs in one basket, read some of these reports we found useful for making real estate decisions.

If you aren’t debt free going into retirement, you may have considered using your investments to pay off your mortgage. But is that the best retirement strategy? This isn’t simply a “Yes or No” question, there may be more things to consider than you thought. This article is a good place to start if you’ve been contemplating which route to take to retirement. >>

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Solar is the energy of the future without question, yet is buying a house with solar panels worth it today? It all depends on the company and the contract they have! Read here how solar panels on the roof ended up costing this couple more! Would helping the environment be worth a few extra dollars each month? We will let you decide! >>

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Ever heard of smart wood? This BC company is tired of the damage concrete is doing to our environment, and has developed wood that is stronger, lighter, and more soundproof than concrete. Read here more of the benefits of this timber over concrete. >>

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Living mortgage free is a dream most have, but is pre-paying on your mortgage payments a good way to accomplish this? This article breaks down why pre-paying may not be all it’s cracked up to be! >>

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Buying your dream home might not be the best idea if you want to live your dream life! Don’t just take our word for it, read here why if this couple could go back in time, their “Dream Home” might have been crossed off their list of priorities. >>

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If you are selling your house and you want top dollar, the first thing you should do is call Team Lalovich! The second thing you should do is read this article for 5 tips on staging your home to attract the most buyers! >>

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Housing shortages is a major problem that Ontario is facing; this group has an easy solution! Your move Doug Ford. >>

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What was your reason for your last move? Do you fit in with the majority? The answer might surprise you, find out here! >>

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“2 Years of Home Ownership – The Good, The Bad, and The Ugly” >>

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If you’re contemplating ways to make passive income, this article is for you! Especially if AIRBNB is one of those contemplated ways. >>

Why Are Housing Starts Down So Much In Windsor - Essex in 2019?

2019-03-29T09:29:00.000-04:00

A lot of economists see statistics such as new housing starts (basically building permits to construct new residential housing) as a leading indicator for the economy. CMHC reported in their March 2019 Housing Start Data, that the Windsor-Essex region’s housing starts had fallen 23% year over year. Is that cause for concern? Today, we are going to discuss some of the factors we think that are leading to this slowdown and what else you need to know.

Reason 1 - Shortage of Building Lots

I know this seems very obvious but this really is an issue. I personally know people who would love to build but can’t find a building lot for sale. A lot of subdivisions are nearing completion and the pipeline to replace them is pretty slim. Basically, not as much supply of building lots compared to last year.

Reason 2 - Bringing on Additional Supply of Building Lots is Difficult

We have so much land in Windsor they say, why don’t you just develop it? While Windsor isn’t the most dense city, getting a piece of land to a serviced, shovel ready project isn’t an easy task. If you have to go through the municipal rezoning process that can take 6 months easily and can cost tens of thousands of dollars in some cases. There are also significant area of red tape to battle through including: biology studies, archeological studies, utility servicing studies, traffic studies, noise studies, etc. This can take years and lots of capital, with no guarantee of success, or can make a project uneconomical. This all leads to decreased supply long term and is a major issue for municipalities all over the province with Windsor being no exception.

Reason 3 - New Home Prices are Getting Unaffordable

Some of these construction costs are driving the pricing of new homes to price points that are no longer affordable for the average person. It's commonplace to see $700-800k price tags on the average new build. The market has been doing extremely well locally but sticker shock has to have some effect on demand eventually.

Reason 4 - Labour Shortage Affecting Trades Pricing

Tying into point 3, part of the reason for the large price tags on some of these new builds are the escalating pricing from the trades. Electricians, plumbers, bricklayers, etc are in high demand and able to command premium pricing in today’s market. This trickles down to the end buyer. Hard to see this changing anytime soon.

Reason 5 - Its Taking Longer to Build Homes

Essentially the labour shortage also means slower build times. Back 5 years ago it wasn’t uncommon to build a house in 90 days. Now it's not uncommon to see 180+ days. This statistically is taking units out of the data.

Bonus Point - What Does All This Mean for the Resale Market?

This decrease in new home sales activity is adding demand to the resale market. Taking some of the buyers out of the new home market for the above reasons is directing them to the resale market. And the resale market already has a supply-demand imbalance. This increased demand could explain some of the crazy resale statistics to start 2019.

Thats how we are seeing the new home starts data. What are you seeing out there?

Real Estate Insider: March 2019 News Report

2019-03-22T15:43:00.000-04:00

Spring is here! This month we've got loads of tips & tricks as the Real Estate season begins to heat up!

If you’re looking to invest in a vacation rental, make sure you buy where the people are going! Read this list of 2018’s most booked Canadian destinations. >>

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ROI isn’t just a formula to use when purchasing a property; it should be used for day-to-day decision making in all of your real estate investments! Read here how ROI can be used in anything from purchasing a home to separately metering the water in a duplex! >>

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Read here this Doctors testimonial in favour of real estate investing, and how he came to this conclusion only after trying many other methods of creating financial independence and long term wealth. >>

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Buying or Selling a home can take up a lot of time, so why waste your most precious resource reading through long descriptions of tons of pictures when only a few works better? Read here why “short and sweet” is the way to go when listing a home. >>

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Here are 10 questions you probably have or have had if you are thinking about buying your first home. These might lead to a number of follow-up questions, but luckily we are always available to help you answer them! >>

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If you’re lucky enough to have your grandparents around, be sure to listen to all their stories! They might have advice that could change your life! Read here how this man’s grandmother defied the odds and became wealthy through house hacking, and sparked a passion in him that is responsible for his success today! >>

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The debate of Buying vs Renting continues! This time, it is explained in a different way that most people don’t think of! >>

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If you’re young and thinking about retirement (which you should be), you are probably thinking whether RRSP’s or buying a home should be your first step to a comfortable retirement. This article can shed some light on that question. >>

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When applying for a mortgage, would you rather speak with an expert or go completely digital? Seems Canada is lagging behind other countries in the automation of mortgage applications department. Call me old fashioned, but I don’t think that’s a bad thing! >>

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Should you re-new your mortgage early? Not saying drop everything and run to the bank, but here are a few things to consider! >>

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Thank you for reading & keep an eye out for more to come from your Lalovich Real Estate team!

2019-02-28T12:11:00.004-05:00

Russel's Review: Legal, Tax & Accounting Strategies for the Canadian Real Estate Investor

Hope all is well readers and you are looking forward to spring & a busy real estate season! Continuing on in my series from last year, reviewing real estate related books, I am going to be discussing a book I’ve recently read.

What is the Book?

Legal, Tax & Accounting Strategies for the Canadian Real Estate Investor by Steve Cohen & George Dube.

Who Are the Authors?

Steve Cohen is a Toronto Area lawyer and active real estate investor. George Dube is a Waterloo area accountant and also an active real estate investor.

What Will I Learn?

The book starts off by talking about the advantages of investing in real estate. How to get started with building a successful team (ie, realtor, lawyer, accountant, lender, insurance broker, etc).

It then delves into more complex topics of legal and tax considerations on purchases. The structure of how you buy a property is almost as important as what you buy. Other topics in this section include: active vs inactive income, partnerships, joint ventures, trusts, financing considerations, etc.

The book continues on to the time period of owning a property and covers issues such as: property management from legal and tax perspective, repairs, renovations and deducting expenses such as auto and travel. It starts to conclude with a section on selling properties. It discussed how to successfully sell a property for top dollar. Tax considerations for the savvy investor to minimize taxes and also some estate planning.

Lastly, the book finishes up with a section on bookkeeping and how important it is to have solid bookkeeping and accounting as a real estate investor, and then reviews some examples of financial statements.

Why I Recommend it?

Investing in real estate is a learning experience. You’ll always make some mistakes but hopefully you can minimize them through reading resources such as this one. Also it comes from a strictly Canadian perspective which is nice and applicable to most Canadians.

My Critique?

It is a little bit dry. Not an overly fun read for the casual investor. More targeted at the more sophisticated investor with larger ambitions.

So there you have it folks. Then next book review in our series. Have any of you read this book? What were your thoughts?

You can order a copy of the book on Amazon or Indigo. Happy reading!

Real Estate Insider: February 2019 News Report

2019-02-21T14:11:00.000-05:00

Welcome back! This month we compiled a set of topics fit for home owners and investors alike to help you weigh your options before making some of the big decisions in real estate.

If you are thinking of investing in commercial real estate (CRE), this article does a fantastic job of laying out the basics of all aspects of CRE to help point you in the right direction. After reading this, give us a call to learn more! >>

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Don’t be surprised, be prepared! Renting Vs Buying is an age old debate. While this isn't one of those articles (it kind of is), it simply breaks down the hidden costs of home ownership that many people don’t consider when contemplating purchasing a home. >>

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Radon, the silent killer. Make sure you know if you are at risk of harmful radon gas because it is one of the most preventable cause of lung cancer there is! Read here to find out what you need to know. >>

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Your ego might like the big house, but your back and wallet won’t. Here are 6 reasons to avoid buying a large house. >>

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Do you have foreign investments and want to buy a home in Canada? This article can explain some of the hoops you’ll need to jump through and some of the calculations you need to consider before making the leap. >>

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Winter is considered the real estate “off-season” because there are less listings, less buyers, and less motivation to go out and look at houses. Read why these are the perfect reasons to buy during this time! >>

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Thinking of buying an investment property but don’t have the down payment in your bank account? Have you thought about a home equity line of credit (HELOC)? Whether you have, or you have no idea what that is, this article is for you. >>

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Ever thought of what would happen to your mortgage if you pass away? This article walks you through multiple scenarios if this question ever crossed your mind. >>

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5 tips from a lawyer to make sure you are protected in 2019! >>

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What’s going on with mortgage rates? Make sure you do your research before your next renewal so you get the best rate possible. You can start with this video! >>

2019 Real Estate Market Predictions

2019-01-21T17:06:00.001-05:00

Happy New Year, readers! Hope you had a great holiday season and that your 2019 is off to a great start. Now that everyone is back to business, who wants to talk some real estate? Today, we are going to offer our real estate market predictions for 2019.

Cap Rates Will Mostly Flatten Out or Even Increase A Bit

Cap rates have seemingly hit bottom. They didn’t really have much further to go, so this isn’t surprising. Now that interest rates have increased a bit, investors appear to be looking for a higher cap rate on their commercial investment properties. We reached a bit of a standstill with some properties in 2018, with sellers' lofty expectations not being achieved in the market. To get these deals done, sellers will need to adjust their expectations.

Multifamily Will Still Be On Fire

While it is our opinion that cap rates commercially will stall out, multifamily still has some positive dynamics that will keep it chugging along. First off, the demand is still very high from across Canada and the supply is very limited. It isn’t economical to build with these new construction prices, so adding new supply wont help the situation. Plus, the rental market is tight and rents are increasing—that doesn’t look like it will be changing anytime soon.

Interest Rates Will Increase, But Not As Much As Expected

Economists and market forecasters are expecting multiple interest rate increases this year, on the back of the three times the Bank of Canada raised last year. While we foresee rates to go a little higher, we don’t think the market in general can withstand an interest rate spike without causing a significant recession. The population is far too indebted and—particularly in expensive cities like Toronto and Vancouver—the cost of increased interest expenses can't be born. For these reasons, we think interest rates will have a lid on them.

The Lending Environment Will Get More Difficult For Borrowers

The government has introduced several measures over the last few years to try and cool the housing market. It finally seemed to have been working, as Toronto and Vancouver didn’t have such great stats in the second half of 2018. Combining these measures with higher interest rates, qualifying for the house you want is getting more difficult. We are also seeing lenders and mortgage insurers pulling back their risk, scrutinizing more deals and generally acting less competitive in the financing market. We expect this to continue in 2019. This may also lead to more firm deals falling through at closing due to some of these factors. So we advise sellers and listing agents to be extra diligent in ensuring buyers are qualified and pre-approved for a mortgage in your price range, with a little extra buffer for safety. Also, ask for big deposits!

Rents Will Rise & Vacancy Rate Will Fall Again

Residential rents have really increased in the last few years and the factors driving that don’t seem to be changing anytime soon. In fact, with the housing market continuing its climb and with the tightening lending environment, more people could be driven into the rental market, increasing demand. Adding to this is the start of the Gordie Howe Bridge, bringing with it a large influx of temporary workers coming to the area; the vacancy rate is forecast to continue to trend lower.

2019 should be an interesting year in the real estate market. Those are our predictions. What are yours?