As hundreds gathered at Toronto's Investor Forum, we spoke to the industry experts on the week's top leading stories including the resignation of Finance Minister Jim Flaherty and the new demand for car-free condos. Plus Brad Lamb discusses the impact of the falling Loonie for investors.
Video transcript below:
Justin Darosa, Canadian Real Estate Wealth
Justin Darosa: Hi, I’m Justin Darosa with Canadian Real Estate Wealth Magazine live in Toronto at the 4th Annual Investor Forum. Welcome to Investor Insight on CREW TV.
This is the biggest Investor Forum todate and we’ve actually got three big stories. To kick it off many were surprised when Finance Minister, Jim Flaherty stepped down.
Lena Guirguis, Ottawa Capital Partners
Lena Guirguis: Well Mr. Flaherty was very eager to tighten up the rules. I think that he took it to a great extreme which may have been beneficial during the downfall, but he didn’t separate the investor from the novice. What we are hoping to see is instead of having all of the investors pooled in together at equal levels, maybe Mr. Oliver will actually take the time to loosen up the rules, where the seasoned investors who are going in there, we are in markets, we are improving economies, we are providing better quality of life, improving communities and we are being handicapped because they are trying to close down on the novice who may not understand what it is that they are doing. We are hoping that he will be able to bring in some sort of a rule where, you know those with experience may not necessarily be screened in the same way, may not be scrutinised in the same way and allow us the investor with the experience, with the knowledge and the ability to grow to do exactly that.
Justin Darosa: City dwellers are increasingly ditching their cars and developers are ditching parking spaces. But from an investor’s standpoint, do these type of condo properties [compromise our way]?
Christina Kroner, Re/Max Legacy Realty
Christina Kroner: At this point currently buyers and tenants are interested in having a parking spot, because the transportation in the city of Toronto and the GCA needs to be improved. However, as you can see Metro Wings and other companies are making substantial investments in Toronto infrastructure to try and make the city core a lot more established for you live and work in the downtown area. Also if you are living in the suburbs of Toronto, you can see that the latest transit developments are trying to bring you into the city core without relying on your car. When these transit developments are in place and the infrastructure is improved, then it will make condos that are located within a 5 km radius – a 10 minute walk or less from these transit stations, they will appreciate in value because they will be the most desirable and cut down on the commute time of the residents of the units. As an investor it’s important to look at where these transportation, infrastructure investments are being put into place either from a municipal, provincial or federal level, because that’s going to determine which neighbourhoods will appreciate at the quickest pace and also so you can have your condos and investment properties fully rented.
Justin Darosa: The Canadian dollar recently closed at 89 cents, which suggests that Canadians who invested in American real estate may soon cash out and reinvest in Canada. We are here with Developer, Brad Lamb. Brad, what do you think of this?
Brad Lamb, Lamb Development Corp.
Brad Lamb: I think that the US market, in lot of the places where Canadians have invested have been hot spots. Places like you know Las Vegas and Arizona and Florida, in some cases New York city and these places have done very well. So you know a lot of easy money has been made, so you may find Canadians cash out because of the weak dollar. If they are long term investors prepared to put up with the ebbs and flows of the dollar, but if they are there to make a fast dollar you will find a cash out. I myself bought a bunch of units in the States, I am going to be selling some of the ones I bought not because I want to cash out back to Canada but because I want to buy something different down there. So that, I think you can see that happen too, but overall the United States is still one of the best countries in the world for investment.
Justin Darosa: Thanks Brad and thank for tuning into the Big Story or should I say three Big stories, here live in Toronto at the 4th Annual Investor Forum. I am Justin Darosa, take care.