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It's a dubious title, which now belongs to Toronto and not Vancouver, as home prices in Canada's largest city become chiefly responsible for skewing the national average.
Peter Cheung -- voted Inter-provincial Investor of the Year at the Top Investor Awards in Toronto -- is leading the way for those looking for Canadian opportunities outside of their home province.
More fuel has been added to the fire, as talk of a Canadian housing bubble continues to gain momentum, with the latest data showing more home price gains.
In this episode of Investor Insight, CREW TV explores why investors are hesitant to spend anything on renovations as the lending environment changes. Still, there are several wise investments to make in a property without overimproving it.
CREW's Jemima Codrington interviews GTA Realtor Ruben Furtado and broker Nick Karadza, both with Rock Star Real Estate Inc.
Susan White Livermore -- voted Newcomer of the Year at the Top Investor Awards in Toronto -- has accomplished in one year what take many investors decades. She explains the significance of the honour.
There are two markets investors focused on student rentals should look at, says Shane Buckingham. But is there enough time to do something more?
Edmonton achieves the mark
Investors seeking a stable market for student rentals, with plenty of cash flow potential, should check out downtown Edmonton. The extensions to the light rail transit (LRT) system in past years have opened up a number of new investment areas in this burgeoning market, while recent softening in real estate activity across the city has provided a number of opportunities to get a deal ahead of the Edmonton’s next energy boom.
Click here for more on student rentals
U of A
The University of Alberta, founded in 1908, is a leader in health, science and agriculture. More than 37,500 students attended the university during the 2009/2010 school year, with nearly 4,500 coming from other provinces and more than 5,000 coming from outside of the country.
The key indicator of this market, however, is that roughly 15% of all students enrolled live in off-campus housing. That’s a market with more than 5,600 students.
The university’s Edmonton campus in particular is drawing an increasing number of students with its expanded medical facility, the Edmonton Clinic.
The clinic, which opened in 2008, was part of a more than $900-million joint effort between the university, Alberta Health Services and the province to construct a learning centre for nursing, dentistry and medicine that would increase health-student enrolment by 80%.
In four years, the university has seen the number of medicine and dentistry students steadily rise to more than 1,800 in 2009, up from 1,500 in 2005.
In addition, nearly 1,500 students had enrolled in the university’s nursing program in 2009.
But by far, the most popular area of study at the university is the sciences. Nearly 6,200 students enrolled in science programs during 2009.
The solid reputation of the university should translate into even more growth, which puts investors offering student housing around its campuses in a good position.
The student market
The vacancy rate in the area surrounding the Edmonton campus has been feeling some upward pressure since last year, rising to 2.6% in 2010, up from 2% in 2009. But that trend doesn’t mean demand in the area won’t remain steady, says Brent Davies, a broker at Davies Management and Realty Ltd. in Edmonton.
Neighbourhoods like Garneau, Strathcona, Parkallen and Queen Alexander will always be in demand because of their proximity to the university and Whyte Avenue, he says. “Whyte Ave. in Edmonton is like Yonge Street in Toronto. It’s the trendy area where all of the younger people want to live,” he adds.
Still, the LRT has taken some students farther away from the university in the search for more affordable housing. But that’s not a bad trend for investors, Davies says.
“The development of the LRT has opened up new opportunities for investors in other parts of the city where the housing stock is more affordable. Now they can get properties in Clareview Campus, for instance, for less than $300,000 and still get competitive rents,” he says.
Halifax: makes the grade
Prices in South Halifax may be a little high, but that doesn’t mean a solid investment can’t be made around Dalhousie University. There are plenty of great investment properties in the area, yet there aren’t nearly enough to meet the growing demand for student housing, says Halifax Investor Richard Killeen-Payne.
The chartered accountant, owns a triplex in the Hydrostone neighbourhood near Dalhousie. His investment has been nothing short of stellar. His one-bedroom unit rents for $795 a month, while the other two two-bedroom units, rent for $1,700 each, leaving him with $1,100 a month in cash flow.
The second reason Killeen-Payne touts this investment is the considerable price appreciation it’s experienced since he bought it in October 2008. He purchased his triplex for $475,000, but in just a little more than two years, the property’s value rose to $595,000.
Still, Killeen-Payne, like any student-rental investor, has had to deal with a fair amount of tenant turnover, yet he says he’s never had to deal with any vacancies. “That’s another reason this property is so attractive,” he adds.
The success of Killeen-Payne’s first investment has given him all the incentive he needs to find even more multi-unit properties, which he’ll most likely purchase and manage with joint-venture partners.
Understanding the local market
Killeen-Payne says investors must at least buy duplexes or triplexes to see a good return on their money, since the price point in South Halifax is much higher, with detached homes and duplexes ranging on average from $500,000 to $650,000.
“But don’t discount the area just because of the price,” he says. “It’s very stable in terms of the economy; we don’t experience the peaks and troughs like other provinces, such as Alberta, and Halifax keeps growing.”
Plus, investors have a large market near Dalhousie since most students live off campus. In fact, only 2,200 of the university’s 16,900 students live on campus. The university was unable to provide CRE with a figure pinpointing how many students live specifically in off-campus student housing and how many still live with their parents. But the university did say that nearly 45% of their students are from other provinces, and nearly 11% are from abroad.
That means more than 9,450 students studying at the university come from out of the province. So even if all 2,200 residence units were occupied by students coming from other areas of the country and world, there would still be about 7,250 students who would need housing.
One might think this thriving market for student rentals would be short on supply, but that’s not the case. Killeen-Payne says there’s a good supply of duplexes and triplexes around Dalhousie.
“Recently, we’ve certainly seen more duplexes and triplexes listed than I would have expected for this time of the year. A lot of it, I think as well, is that people are starting to see mortgage rates change a bit and the uncertainly has caused them to want to cash out now, as opposed to hanging onto it for a little bit longer.”
Investing farther out
Steve Ritchie, an associate broker with Keller Williams Realty of Halifax, says that the elevated price levels near the university have some of his investor-clients looking a little farther away from Dalhousie to find value.
“Due to the high average sale prices in the south end of Halifax, we find that investors in these types of property often gravitate to other areas of the Halifax Peninsula that are also reasonably close to the universities,” he says. “The west end of Halifax, for instance, has also seen marked increases in property values over the last few years, and student-rental demand definitely drives the bus a good part of the time.”
The average price of a detached home near the university is about $650,000 and the average per-bedroom rent is typically $600 a month, or $650 a month for a fully furnished bedroom, Ritchie says.
But if investors look in other neighbourhoods on the peninsula outside the south end, or in areas like Armdale, Timberlea, Clayton Park, Rockingham and Fairview, they may be able to find houses listed between $300,000 and $400,000 and still get as much as $600 a month in rent for each bedroom.
“Demand is always strong for rentals in these areas – which is why property values stay higher there. It is also why there are always buyers and investors looking for income properties in these areas. Strong rental demand equals low vacancy rates and higher rental amounts.”
Real estate experts -- including Bruce Croxon from CBC's The Dragons' Den -- roared at the second annual Investor Forum Toronto last week, bringing their collective guidance to more than 600 investors from across the country.
CREW's Jemima Codrington provides a run-through of the two-day event, hitting all the highlights, including the 2012 Top Investor Awards.
The property gods must have been listening to investors across the country -- although not those in the GTA -- as year-over-year gains in home prices slowed to their lowest level in nearly a year, except, of course, in the GTA.
Converting an empty basement into a cash-generating apartment isn't as simple as putting in a separate exit. Chris Potter, a partner in the Toronto North Tax Practice of PricewaterhouseCoopers, outlines the tax implications of renting out a unit in your primary residence, and, yes, there are some..
A new report predicts house prices in Ontario will continue to climb over the next three years, even as the market moves to a more investor-friendly climate.
Investors are focused on getting into U.s. properties -- from acquisition costs to cap rates. But they're not so good on formulating an effective exit plan to sell and capitalize on equity gains, says leading investment advisor Richard Dolan of U.S. Property Shop.
Richard Dolan will share his Global Investment Spotlight at the upcoming Investor Forum Toronto, April 28 - 29.
After a well-worded warning that the Bank of Canada may be forced to raise interest rates earlier than expected, Mark Carney may have to wait, as Canada’s annual inflation rate for March dropped below the bank’s target.
Property investors aren't the only ones who think bidding wars are a losing proposition. A recent poll reveals that nearly three quarters of homeowners flat out refuse to engage in that kind of race to the top.
In this episode of Investor Insight, CREW TV explores the new financing pressures facing investors. The question is should you sell any property knowing that you may not be able to come up with the financing to buy another.
CREW's Jemima Codrington interviews Nick Karadza, real estate broker at Rock Star Real Estate Inc., and GTA Realtor Ruben Furtado, Realtor, Rock Star Real Estate Inc,
An investor influx is driving rapid price acceleration in Halifax and Regina, at the same time those gains are lighting a fire under others looking to make their own leaps.
A 5% spike in housing starts – driven by condo developers – surpassed predictions for March, according to the latest numbers from Canada Mortgage and Housing Corporation.
Low rates and high temperatures conspired to increase home prices in the first quarter of 2012, according to new numbers from one of the largest real estate organizations, but few sales likely involved investors.
First-time buyers are poised to take on condo and single-family home investors like never before with increasingly strong financial footing, according to a new report.
Stop, listen and research! In this episode of Investor Insight, CREW TV identifies the essential research any investor needs to conduct before moving into a new market, whether that's Western Canada or, what's increasingly the case, the U.S.A.
CREW's Jemima Codrington talks to Leslie Quinsay of Coridian Capital and Marcel Greaux, co-founder of the Toronto Real Estate Club.
A new service for investors and other homebuyers is providing a comprehensive insurance history of properties in Canada, including claims involving flood, tornado and more man-man disasters.
Top Investor Awards finalist Kevin Matwichuk shares his take on the industry and its rewards.
In this episode of Investor Insight, CREW TV explores the ways investors are banding together to protect their rents and using Realtors to win concessions from developers.
CREW's Jemima Codrington interviews Adam Brind, an agent with Re/Max Condos - Core Assets Team, Randy Ramadhin, a broker with Century 21 - Green Realty Inc., and Marcel Greaux, the founder of the Toronto Real Estate Club, provide those insights.
A growing list of unknowns – from a murky employment picture to an even murkier housing one – are driving interest in next month’s Toronto Investor Forum, with a lineup of sessions focused on guiding participants and an award show focused on honouring them.
Condos remain a preferred point of entry to Canada's real estate market. But concerns around a glut of construction in Vancouver, Toronto and other cities means that investors are seeking expert insight on where and how to buy.
In this episode of Investor Insight, CREW TV turns to the experts to identify that safer ground and how to get there. Adam Brind, an agent with Re/Max Condos - Core Assets Team, Randy Ramadhin, a broker with Century 21 - Green Realty Inc., and Marcel Greaux, the founder of the Toronto Real Estate Club, provide those insights.
Getting financing to buy an investment property is no longer as easy as it used to be, as lenders continue to tighten their criteria. Peter Mitham explains how you can get access to financing despite the hurdles.
Just under one-third (32 per cent) of Canadians indicate they feel positive about the outlook for the domestic economy over the next year, down from 43 per cent in
Canada is a very affordable place to own a home – it just depends where you buy.
Searching MLS listings in the GTA just got a whole lot easier, with TheRedPin.com becoming the first to add that comprehensive information -- once reserved for Realtor eyes -- to its exhaustive database of new and pre-construction condo listings.
Total sales of detached, attached and apartment properties in Greater Vancouver climbed nearly 6% last year, although missed the 2009 high by over 9%, according to the Real Estate Board of Greater Vancouver (REBGV).
Canadian commercial real estate eat your heart out. A survey of international investors is once again recognizing the United States as the top choice for 2012.
Close enough for Toronto commuters, but far enough that residents can get a much different lifestyle, Whitby continues to present property investors an opportunity to get into the GTA market and make a profit.
A team of industry experts is now steering development of CREW’s 2012 Investor Forum series – the diverse group focused on deepening and widening content.
House prices remained unchanged nationally for a second consecutive month in October, according to the Teranet-National Bank index.
Canadian real estate may have had a surprisingly strong 2011, but next year a different reality may kick in, according to a new report by Bank of America Merrill Lynch.
As 2011 winds up, the latest numbers show that Toronto’s resale housing market is on the upswing.
A "volatile" economy helped the Canadian housing market meet and surpass low expectations set at the start 2011 -- although that same global crisis is expected to limit next year's growth.
The B.C. real estate market may finally have reached the equilibrium investors and others have long hoped for, with Multiple Listing sales in November falling only marginally from the previous year and price growth restricting itself to a 1 per cent gain.
CMHC is linking rising youth employment and a lower supply of new apartments as the cause for a drop in the country’s vacancy rate.
They haven't hit bottom yet. U.S. home prices slipped again in October, and are now down 23.7% from their May 2007 peak, according to Zillow’s monthly housing market report.
While Greater Vancouver real estate prices continue to rise, a more-balanced market is playing out on Vancouver Island.
The real estate market in Canada is headed toward a 10%-15% drop in prices over the next few years, as interest rates eventually increase, said the CIBC's Benjamin Tal on Thursday.
The average price of a Toronto home is now about 10% higher than a year ago, according to the latest statistics from the city's real estate board.
Uncertainty about the world economy, especially the crisis in Europe, left the Bank of Canada little choice but to leave its overnight rate at 1 per cent for the tenth consecutive review, said the Bank Tuesday.
Canada’s real estate market surpassed expectations in 2011, despite global economic concerns, according to a year-end report by Re/Max.
The Canadian housing market will continue along its growth trajectory in 2012 despite concerns over the European debt crisis and its impact on the global economy, according to a report released today by RE/MAX.
Real estate sales are up 16% over a year ago in Calgary, but for now, prices have remained flat -- a combination poised to hand the city one of the best markets nationally over the next few years.
Demand for office real estate in Canada will slow in the first half of next year as economic uncertainty takes hold, according to a report by Cushman & Wakefield this week.
Lower interest rates means housing affordability in Canada improved slightly in the third quarter of 2011.
It’s the education property investors and their Realtors wish they had when assessing possible additions to an investment portfolio.
Commercial real estate investment in Calgary has taken off in the third quarter of this year.
As real estate markets across the country continue to see surging prices and sales, one exception has been the more stable Ottawa market.
The latest housing sales stats through the first two weeks of November show there has yet to be any slowdown in Toronto.
Leslie Quinsay, director of Coridian Capital, explains what you need to know to make the move from residential to commercial investing.
In a first for Canada, real estate agents in Quebec are now being ranked online by clients, based on a customer satisfaction rating service.
A U.S. company has partnered with Royal LePage to offer an unprecedented auction of 40 lakefront condo-hotel units at Lake Muskoka in Ontario.
Winnipeg, Halifax, and Ottawa homeowners will pay the highest residential property taxes this year, according to a new analysis by Real Estate Property Association of Canada (REALpac) and Altus Group.
Paul Grewal, president of Street Capital Financial Corporation, explains what you need to know before going to your lender.
Recent reports indicate that Canada’s housing boom remains intact and that it may help the economy avoid a recession.
The editor of a pro-libertarian website has declared Canada has a housing bubble that is shaping up similar to the one that burst in the U.S. and launched the financial crisis.
CRE is proud to announce the launch of our second annual Readers' Choice Awards. This friendly competition is to give you the opportunity to nominate those people who've really made your business bigger, better and more successful over the last year.
Rising consumer debt nationally has raised concern, and now Canada’s financial regulator is taking action by increasing scrutiny of residential mortgages held by banks, according to media reports.
Don Campbell, shares some of his insights on the Canadian investment landscape in the latter half of 2011.
North American investors are increasingly buying property in Turks & Caicos Islands. What's the off-shore draw?
A pulse-taking of the Regina rental market… and a cautionary note before hiring a property manager
It can be difficult to find new investment opportunities in trying times; many gurus are telling us to invest internationally. And perhaps you looked abroad but have yet to find the right vehicle that gives you confidence in today’s market.
Refinancing activity of insured mortgages in Canada dropped 40% following the federal government’s tightening of mortgage rules in March, according to a second quarter financial recap report out this week by the Canada and Mortgage Housing Corporation.
Faced with foreclosure recently, a British Columbia property owner vacated his property but then did something more unusual – rented out the property to a tenant as the bank took over ownership. While successful at first, the strategy eventually panned out when the bank sold the property and the tenant refused to vacate.
Investor forum 2011 Toronto highlights. Reserve you seat at the 2011 Vancouver investor forum @ www.theinvestorforum.ca
Peter Kinch, explains how to keep calm and keep investing even in the midst of market turbulence.
Do you have confidence in your property management firm? If you are a real estate investor who relies on contracted property management services, having confidence that you are in control of your assets and bottom line while someone else manages the day-to-day operations is always a dilemma. These are some simple strategies to monitor the service you receive, increase your confidence and ensure that your investment is protected.
When home sales are down, real estate boards have sometimes blamed unusual weather for sluggish activity. About two in five real estate agents back that theory of weather's impact, according to a new survey by Royal LePage Real Estate Services.
Calum Ross examines why refinancing might be the right strategy for you right now and shows you how you could save $$$$ on your mortgage
Recognizing the tough shape that the U.S. economy is in, the Federal Reserve on Tuesday promised to hold short-term interest rates near zero at least until the middle of 2013.
Phil Soper, president and CEO of Royal LePage, sees moderation on the economic horizon
Gains in average prices in Canada have been surprising in the last few years, leading some analysts recently to say it is a bubble ready to burst. But average prices are misleading, according to a new report by CIBC World Markets Inc.
A new report is identifying Montreal and Ottawa – not Vancouver – as the country’s hottest housing market.
Bob Dugan, senior economist at the Canada Mortgage and Housing Corporation, gives his forecast for the rest of 2011
Canadians remain confident that homeownership is a good long-term investment, according to a survey by the Canada Mortgage and Housing Corporation (CMHC), despite indications of sinking confidence in the U.S.
Finance Minister Jim Flaherty says he’s satisfied with the recent moderation in the Canadian real estate market, after introducing his latest round of mortgage rule changes on March 18.
Vancouver ranked as the third most expensive market in North America, behind Newport Beach and Pacific Palisades in California, according to Coldwell Banker’s North American Study.
The Vancouver real estate market should stay steady, as long as record levels of foreign investment continue to pour into the west coast city, says CRE Contributor Peter Kinch.
We asked and you’ve spoken. In the February issue of Canadian Real Estate magazine we unveil the winners of our first annual Readers’ Choice Awards. Pick up a copy to find out which companies and individual property professionals our readers have ranked as industry leaders.
CRE examines the market in Maple Ridge and Pitt Meadows
Tenants and landlords in the U.S. can now use a website to help determine an estimated rental price for a residential property.
Investors spent $264 million premium rental apartment buildings in Metro Vancouver in 2010, a sign of continued strong demand according to a multi-family property report by Avison Young.
Though speculators have hit the road, Burnaby''s fundamentals support long-term growth. CRE explores "Canada''s best-run city".
As a condominium owner, you are free to rent your unit to whomever you choose. But before you begin looking for the right tenant, it is essential that you understand some of the obligations and restrictions that may impact your search.
Saskatchewan Premier Brad Wall this week cautioned that rent control in the province would be a “dangerous” approach.
A popular B.C. area to live, vacation and invest, the Okanagan area continues to rank as one of the best real estate markets in the country.
Thunder Bay and Windsor have been some of the busier markets in Ontario, with investors Canada-wide attracted by their prices and potential. Kit Kadlec reports
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