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B.C. startup targets novice real estate investors – Business in Vancouver

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A 22-unit North Vancouver rental apartment building is among properties in the invest platform | Alison Gallagher

During pandemic-plagued 2020, the value of the Lower Mainland’s residential real estate increased by $50 billion from one year earlier, according to the British Columbia Assessment Authority.

Geographically and historically, Metro Vancouver represents perhaps the best opportunity on the planet to make money in real estate. Mortgage rates are at 100-year lows, and the Vancouver area has the world’s second-most expensive – and among the fastest-rising – home prices.

For novice investors, however, the daunting price of real estate appears such a barrier that many believe they are frozen out of the market forever.

In this first of a four-part series on real estate investing, we outline how strategic investing can allow non-accredited buyers to get onto a real estate ladder that could carry them to their first home and beyond.

Let’s start with how to get a share of Greater Vancouver real estate by investing in a real estate investment limited partnership – in this case, a platform with the lowest entry price.

Startup Addy Technology Corp. has launched a web-based platform that provides an opportunity to buy a share of selected real estate properties for as little as $1, with maximum non-accredited investments capped at $1,500. (Non-accredited refers to people who have net assets of less than $5 million, not including a private home, and incomes of less than $200,000 per year.)

Addy works with deep-pocketed partners to secure a property and then takes a stake in the building, usually from $500,000 to $1 million, as a limited partner. It then breaks its share into $1 allotments, which it sells to investors.

On launch day, Addy releases the property on its online platform, and members can buy as many $1 units in the property as they desire, up to the $1,500 maximum for non-accredited members.

A 2020 Addy project was a new-built commercial property in Chilliwack, tenanted by Starbucks (Nasdaq:SBUX) under a long-term, triple-net lease. It sold out in 36 days during November and December 2020, and the 833 investors will be paid a quarterly dividend starting April 15.

Some Addy properties pay a quarterly or annual dividend, but others are buy-hold-and-sell opportunities where the investor takes a share of the appreciation when the property is sold, or the offering can be a mix of rental income and a share of the exit appreciation.

The platform is attracting some very small investors. The average member invests about $500.

Addy’s current project is a 22-unit rental apartment building in North Vancouver, where the general partner is Stephen Evans, who founded Pure Multi-Family Real Estate Investment Trust in 2012, built it into a 22-building U.S. portfolio and sold it in 2019 for $1.6 billion.

Addy has a $1 million share in the fully rented North Vancouver property, and, so far, 999 members have invested an average of $386 each in the project. Members get a share of the rental income and a split of the proceeds when the building is sold.

Addy co-founder Stephen Jagger said the North Vancouver property is close to being fully subscribed.

Once members sign up on the Addy website, they open a wallet and put in as much as they can afford. All of the properties are listed online, along with due diligence information and regular tracking of how the investment is performing.

Jagger said Addy has yet to turn a profit, but it plans on eventually having paid membership “like Costco” as the platform expands.

“Most limited partnerships are meant for high-net worth individuals who can afford to invest $100,000 to $500,000 or more,” said Jagger, who started Addy with co-founder Michael Stephenson. “Our idea is to help the vast majority of regular Canadians get a share in the real estate market.”

Jagger conceded that there are no guarantees with Addy, but notes that real estate, particularly in Metro Vancouver, has historically been a consistent money-maker. •

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Hot real estate market sparks warnings to potential buyers as complaints to regulator double

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As home sales in the province continue on a dizzying trajectory, the province’s real estate watchdog and regulator are warning buyers to be wary of what they may be getting into.

The Real Estate Council of B.C. (RECBC) and the Office of the Superintendent of Real Estate said that in the first three months of 2021, they have seen an increase in inquiries and complaints.

Calls to the regulator were up 42 per cent over the previous year, while complaints, such as how offers were made and accepted, were double the number received in the same period in 2020.

“Buying a home is one of life’s biggest financial decisions. There are potential risks at the best of times, but with the added pressure and stress of the current market conditions, those risks are amplified,” Micheal Noseworthy, superintendent of real estate, said in a statement.

 

 

The Real Estate Board of Greater Vancouver says sales in the region have continued at a record-setting pace.

Residential home sales covered by the board totalled 5,708 in March 2021, up 126.1 per cent from March 2020, when the COVID-19 pandemic hit, and up 53.2 per cent from February of this year.

Rural and suburban areas have experienced the biggest spikes.

For the past two weeks, Jay Park has been in the middle of the buying frenzy.

He and his partner are trying to upgrade from their one-bedroom apartment to a two-bedroom condo or townhouse in Vancouver.

“I wish we had done this a month or two ago,” he said.

 

A condo tower under construction is pictured in downtown Vancouver in February 2020. (THE CANADIAN PRESS/Darryl Dyck)

 

Park put an offer on a $1-million condo, $4,000 above asking price.

“To entice the [seller], we put in a subject-free offer, but it wasn’t successful,” he said. “They accepted $110,000 over asking price that was also subject-free.”

The hot market has led to bidding wars. Some would-be buyers have even lined up outside for days to try to get a jump on a property.

Erin Seeley, the CEO of the council, is warning buyers to do their research and be aware of risks before making an offer.

“It’s really important that buyers have engaged with their lender before they’re making offers so they know how to stay within a reasonable budget,” she said.

Seeley said some of the complaints the council has heard from buyers is that they weren’t aware the seller has a right to take an early offer.

“And the seller was really in the driver’s seat about setting the pricing,” she said.

 

Demand continues to outstrip supply for housing in cities like Vancouver. (Rafferty Baker/CBC)

 

Aaron Jasper, a Vancouver realtor, advises clients to avoid cash offers and to include finance clauses even if it may mean they lose a deal.

“There’s a lot of frustration among buyers, feeling pressure to take some risk,” he said.

“You’re better to be delayed perhaps a year getting into the market as opposed to being completely financially ruined.”

Jasper also says realtors are limited in the advice they can give to clients on legal matters, home inspections, potential deficiencies with homes, and financing.

‘Caught up in the craziness’

Other tips from the council include seeking professional advice before making a subject-free offer or proceeding without a home inspection, and speaking to a professional to determine how market conditions may be affecting prices.

Meantime, people like Jay Park say they are still keen to buy. Park has more viewings scheduled and is optimistic.

“It’s a very exciting time for us, but I also don’t want to get caught up in the craziness and make a purchase that’s above our means.”

Source: – CBC.ca

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Black Press Media introduces one of Western Canada's best real estate platforms helping home buyers Find. Love. Live. that new home – Aldergrove Star

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Need an agent who knows the community?

Or, is it time to look for a new place to live, but you don’t know what’s on the market?

Whatever the real estate need is for residents in the communities of British Columbia, Yukon & Alberta, there’s a new way to do that one-stop shopping – by visiting Today’s Home.

The slogan for the site is “Find. Love. Live.”

“We want people to find their dream home, love it, and live in it,” said group publisher Lisa Farquharson.

Building on the success of Black Press Media’s niche digital platforms – Today’s Home brings the same wealth of knowledge and local expertise to the search for a home, be it buying, selling, or even just daydreaming about what changes you can make in the future.

Search hundreds of listings that local real estate agents have available.

The listings cover properties around the region, from a one-bedroom, one-bath condo for $339,900 to million-dollar acreages throughout the province of BC, Yukon, Central Alberta and beyond.

Click on a listing, and see not only the realtor handling the property sale, but links to his or her other listings and social media feeds. With the click of a mouse, take a virtual tour of the property, find the property’s walking score, and learn about nearby amenities.

There are links available to schedule a showing, or send the agent a comment or question.

Want to share a listing? When you click on the share button, you’ll actually send an attractive digital flyer of the prospective property, not just a link.

There’s even a button to help determine how much you have to spend, courtesy of the convenient mortgage calculator.

Plus, scroll down the page on Today’s Home and find a list of expert local real estate professionals who can answer questions or help with that home sale, Farquharson explained.

Today’s Home offers the advantage of the massive reach that Black Press Media has built throughout Western Canada with its network of community newspapers and online products. That allows the public to tailor real estate searches based on location, price, and other key factors while allowing real estate professionals to gain unprecedented audience reach with their listings.

Today’s Home will dovetail into the media company’s existing print real estate publications.

“Black Press Media has real estate solutions in print and now we can add in the digital component,” Farquharson said.

Watch for expansion of the Today’s Home platform in the near future, she added. That will come as Black Press Media adds a new component – the development community. Developers will be able to reach a huge audience when their projects are ready for presentation.

For information on Today’s Home, contact group publisher Lisa Farquharson at 604-994-1020 or via email.

Happy house hunting!

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PGIM Real Estate, Revera Affiliate Target UK Market in Newly Formed JV

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Real Estate Sales In September

PGIM Real Estate has been active in recent months providing capital to facilitate blockbuster senior housing acquisitions. Now the firm is looking to capitalize on demand for senior housing in the United Kingdom.

The Madison, New Jersey-based real estate investor and lender announced this week it is entering into a joint venture with Signature Senior Lifestyle, an affiliate of Revera, to develop and operate senior housing communities around greater London

Mississauga, Ontario-based Revera serves 20,000 older adults in long-term care homes and retirement residences in Canada. It is also the majority shareholder of Sunrise Senior Living, one of the largest senior housing providers in the U.S. The company operates a portfolio of 12 communities in the U.K. under the Signature Senior Lifestyle brand, with one community in development that is slated to open in autumn 2021.

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The JV has one development underway — a senior housing community, or “prime care” home, in southwest London. PGIM worked with Elevation Partners, a London-based investor and asset manager in U.K. health care real estate, in sourcing, structuring and executing the venture. Additionally, PGIM will retain the firm to leverage its expertise.

PGIM and Revera did not respond to requests for comment from Senior Housing News regarding details about its development pipeline.

London is emerging as a future hotbed of senior housing development, spurred by favorable demographic growth trends and a lack of available supply, and the PGIM-Revera venture will find competition.

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Maplewood Senior Living CEO Gregory Smith told SHN last month that demand for U.K. senior housing is comparable to major U.S. markets such as New York and San Francisco, where supply has historically been constrained.

Maplewood and its investment partner, Omega Healthcare Investors (NYSE: OHI) are looking to expand its luxury Inspir brand to the U.K., and identified five suburban markets around London with high barriers to entry that are favorable for the brand’s growth.

Revera CEO Tom Wellner sees similar untapped upside potential for senior housing in the U.K.

Source: – Senior Housing News

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