Robert J. Morrow: Editor & REALTOR(R):
email@example.com (905) 536-4644
Editor/Publisher, Venture Home Review:
Copyright 2019-2020 Robert J. Morrow
All investor purchases are brokered by a licensed real estate agent who is a member of Venture Property Investments, the Canadian Real Estate Association, and the Ontario Real Estate Association As such, they are bound by the code of ethics and fiduciary commitments required by Canadian law and Organized Real Estate.
Chase Realty Inc., Brokerage
398 Wilson St. E, Ancaster ON
For the time-being, house tours and meetups have been cancelled. Some private tours are being arranged by Bob in the West, so contact us below for more info.
Otherwise, go to the Venture website (link above) to get info on online webinars as well as the recently-produced Guided Investment video.
Burlington to fight changes Bill 108 brings to increased housing
85 East 11th St. $479,000
Some clients have discussed their fears of getting involved in reno's only to see a shut down again due to the second wave of the pandemic. One solution is to buy turnkey, complete with tenants, etc. Those tenants must be assumed and they are likely not paying top dollar, but it gets you a property in the marketplace. If shut downs commence, you're cash flowing so it doesn't matter. A year from now, you can re-finance and my estimate is that values will increase by 8-15% on these types of properties by then. And when these tenants leave, you can increase rents to current levels immediately.
Food for Thought...
Speaking on Global News Radio 900 CHML's Bill Kelly Show, Fred Eisenberger said he is totally opposed to Bill 108, the More Homes, More Choice Act, which includes changes to 13 pieces of legislation.
"It's shortsighted," said Eisenberger. "It is totally contrary to where most municipalities need to go, which is to try and contain their costs by being more sustainable and having a more intense development model. So drawing a firm line around the urban boundary is one way of doing that. If the province opens that up, that really takes that whole sustainability issue off the table."
Municipalities like Hamilton are going to move toward increasing density if the province insists on cutting development costs. Why? Because the City needs more housing and will come to see duplexing and third units as a short-term solution while fighting the development cost issue on new builds.
Where are the next markets for duplexing?
Immediately upon debating the new legislation (bill 108), Burlington Council chose to fight the new proposals allowing second and third units on single family properties. Here is the wording from the minutes:
Now therefore be it resolved that the City of Burlington oppose Bill 108 which in its current state will have negative consequences on community building and proper planning; and
That the City of Burlington call upon the Government of Ontario to halt the legislative advancement of Bill 108 to enable fulsome consultation with Municipalities to ensure that its objectives for sound decision making for housing growth that meets local needs will be reasonably achieved; and
That a copy of this Motion be sent to the Honourable Doug Ford, Premier of Ontario, The Honourable Christine Elliott, Deputy Premier, the Honourable Steve Clark, Minister of Municipal Affairs, the Honourable Andrea Horwath, Leader of the New Democratic Party, all MPPs in the Province of Ontario, leaders of the Green Party and Liberal Party; and
That a copy of this Motion be sent to the Association of Municipalities of Ontario (AMO) and all Ontario municipalities for their consideration.
Are you sitting on your back patio, wondering when things will get back to normal?
Maybe you're on your way to work for the first time in two months... Or still getting used to the kitchen table as your new office.
Regardless of your situation, we are all trying to decipher how to move forward...and more importantly, how.
I have now been out in the marketplace for about two weeks. There are precautions (and an incredible amount of paperwork thanks to the big franchise brokerages like RE/MAX and Royal LePage), but we are viewing homes in groups of 2-4. There are no open houses yet so people can't see homes that way (not something we recommend anyway) and we are limited to 1/2 showings that are precisely timed (can't be early or late).
But the most significant change at the moment is the lack of inventory; there simply aren't enough houses to choos from. Has this stopped investors from buying homes? Certainly not. In fact, it has created a feeding frenzy of bidding wars on EVERY house.
I am recommending our clients consider jumping back into the market--timing it between the first and second wave of the pandemic--to ensure you can add at least one property to your portfolio before the long, drawn out second wave lockdown. Reno's will stop again during the next lockdown, of course, but they're also the first to come back. And REALTORS(R) were considered essential, so agents never stopped working.
But the key thing to take from this is that if a great property shows up, go for it. But have a pre-determined limit based on comparables and past experience. Entering into a bidding war is likely unavoidable but we're used to it and can usually win them..but only when it still makes sense financially. Agents are pricing low to create these bidding wars so going $30-40,000 over list is not unreasonable (once you get your head around the concept). If comparables show the house is worth that price, then you've got a good deal. The problems start when 15 or 20 investors get involved. Then someone will definitely pay too much for that property. I advise we walk away after about 8 offers usually.
So why bother? Why not wait till the market setlles a bit? In my estimation, thanks to the second wave, that may not be till next summer. Are you prepared to wait that long?.