Southern Ontario-based home buyers, who offer cash to purchase houses in poor condition, have started to make inroads in northern Ontario, due to the region’s hot real estate market.
Devin Labranche, a Sudbury-based realtor with eXp Realty, started his career in London, Ont., where he said the practice of cash offers for homes was already common by 2017.
“We started to see the market grow there quite a bit and we could kind of tell through demographic distribution that people were spreading out through the greater GTA area to other areas due to the housing crisis,” he said. “So it was just a matter of time before they came here [to Sudbury].”
Since the start of the COVID-19 pandemic Labranche, said he has heard from clients and family members who have seen advertisements from companies that offer cash buyouts for homes with no strings attached.
The companies include SLG Home Buyer and Cash House Buyer. Some use roadside signs, and others send out mailers, which are often made to look handwritten.
“It’s just a great way for people to feel like, ‘Oh, I’ve been hand-picked for somebody who wants to buy my house,'” Labranche said. “They tend to prey on vulnerable people who don’t know the market or who are in distress and need to sell right away.”
Labranche said people looking to sell their homes should speak with at least three local realtors to find out what comparable houses have sold for, and what they might expect in the open market.
Labranche agrees buying and renovating homes can be a good business model, but cautioned sellers should be diligent if they want to get the best possible price for their home.
Tyler Peroni, chair of the Sudbury Real Estate Board, says home sellers should speak with a local realtor before making any big decisions. (Tyler Peroni Sudbury Real Estate Broker/Facebook)
Tyler Peroni, chair of the Sudbury Real Estate Board, said homeowners should meet with a local realtor before they make any decisions about selling their property.
When asked if companies buying homes for cash were preying on the vulnerable, Peroni was more cautious.
“I hate to make an allegation against anybody that’s doing this,” he said. “We want to see the best in any business model or any business that operates in Sudbury. As long as there’s full disclosure and transparency, I don’t think that we can necessarily knock any business practice.”
A growing northern Ontario market
Real estate investor Ammar Beg owns a Markham, Ontario-based company called Canada Fast Offer. He has advertised in Sudbury and other parts of northern Ontario, and purchased homes from the region.
Beg said there are several reasons businesses like his have had a greater presence in northern Ontario since the COVID-19 pandemic started.
The first reason, he said, is that the increase in house prices has made it worthwhile for investors to buy homes in the region, invest in renovations, and resell them at a profit.
“In the past, let’s say a couple of years ago, if I looked at a property in Sudbury or Timmins or North Bay or some of these areas, even Sault Ste. Marie the value just wasn’t there,” he said. “Now that the numbers have gone up it’s starting to make sense.
“We can give them a reasonable price where they can pay off their debts, they can have some cash in hand. They can move forward with something, and we can still turn a profit.”
The second reason companies like Canada Fast Offer have entered the market, said Beg, is that more people have turned to real estate investing in the last 18 months.
“Now with the pandemic, I think what’s happened is that there are a lot of people who are either on CERB, or maybe their business has gotten some grants, and now they have that time and ability to find these off-market sellers and market to them,” he said.
Flyers from real estate investors, often designed to look hand-written, have become a more common sight in northern Ontario cities, according to realtors in the region. (Jonathan Migneault/CBC)
The business model
Beg said his business focuses on homes that are not in a liveable state. He offers a cash buyout, renovates the home, and either turns it into a rental property or sells it on the market. He said more often than not, he resells the home.
“We’re actually adding to the inventory of liveable homes,” he said. “We’re not taking away from the housing market, we’re actually adding to it, because these are not properties you would live in.”
He said many of the sellers he works with prefer not to go through the traditional route of selling through a realtor, and find it simpler to accept a cash offer for their property.
“If you live in that situation and you’re classified as a hoarder, and the place is a mess and it’s not liveable, the last thing you want is a rotating door of people walking through your home,” Beg said.
As for those mail-in flyers, Beg said direct mail marketing rules mean companies have to cast a wide net. Real estate investors can’t target specific homes with direct mail marketing, but must instead cover entire postal routes.
Homeowners who have no intention of selling, and who may not require major renovations, can get caught in the marketing blitz.
MONTREAL – Two Quebec real estate brokers are facing fines and years-long suspensions for submitting bogus offers on homes to drive up prices during the COVID-19 pandemic.
Christine Girouard has been suspended for 14 years and her business partner, Jonathan Dauphinais-Fortin, has been suspended for nine years after Quebec’s authority of real estate brokerage found they used fake bids to get buyers to raise their offers.
Girouard is a well-known broker who previously starred on a Quebec reality show that follows top real estate agents in the province.
She is facing a fine of $50,000, while Dauphinais-Fortin has been fined $10,000.
The two brokers were suspended in May 2023 after La Presse published an article about their practices.
One buyer ended up paying $40,000 more than his initial offer in 2022 after Girouard and Dauphinais-Fortin concocted a second bid on the house he wanted to buy.
This report by The Canadian Press was first published Sept. 11, 2024.
MONTREAL – The Quebec Professional Association of Real Estate Brokers says Montreal-area home sales rose 9.3 per cent in August compared with the same month last year, with levels slightly higher than the historical average for this time of year.
The association says home sales in the region totalled 2,991 for the month, up from 2,737 in August 2023.
The median price for all housing types was up year-over-year, led by a six per cent increase for the price of a plex at $763,000 last month.
The median price for a single-family home rose 5.2 per cent to $590,000 and the median price for a condominium rose 4.4 per cent to $407,100.
QPAREB market analysis director Charles Brant says the strength of the Montreal resale market contrasts with declines in many other Canadian cities struggling with higher levels of household debt, lower savings and diminishing purchasing power.
Active listings for August jumped 18 per cent compared with a year earlier to 17,200, while new listings rose 1.7 per cent to 4,840.
This report by The Canadian Press was first published Sept. 6, 2024.
In the quest to find cities where renters can enjoy the best of all worlds, a recent study analyzed 24 metrics across three key categories—Housing & Economy, Quality of Life, and Community. The study ranked the 100 largest cities in Canada to determine which ones offer the most to their renters.
Here are the top 10 cities that emerged as the best for renters in 2024:
St. John’s, NL
St. John’s, Newfoundland and Labrador, stand out as the top city for renters in Canada for 2024. Known for its vibrant cultural scene, stunning natural beauty, and welcoming community, St. John’s offers an exceptional quality of life. The city boasts affordable housing, a robust economy, and low unemployment rates, making it an attractive option for those seeking a balanced and enriching living experience. Its rich history, picturesque harbour, and dynamic arts scene further enhance its appeal, ensuring that renters can enjoy both comfort and excitement in this charming coastal city.
Sherbrooke, QC
Sherbrooke, Quebec, emerges as a leading city for renters in Canada for 2024, offering a blend of affordability and quality of life. Nestled in the heart of the Eastern Townships, Sherbrooke is known for its picturesque landscapes, vibrant cultural scene, and strong community spirit. The city provides affordable rental options, low living costs, and a thriving local economy, making it an ideal destination for those seeking both comfort and economic stability. With its rich history, numerous parks, and dynamic arts and education sectors, Sherbrooke presents an inviting environment for renters looking for a well-rounded lifestyle.
Québec City, QC
Québec City, the capital of Quebec, stands out as a premier destination for renters in Canada for 2024. Known for its rich history, stunning architecture, and vibrant cultural heritage, this city offers an exceptional quality of life. Renters benefit from affordable housing, excellent public services, and a robust economy. The city’s charming streets, historic sites, and diverse culinary scene provide a unique living experience. With top-notch education institutions, numerous parks, and a strong sense of community, Québec City is an ideal choice for those seeking a dynamic and fulfilling lifestyle.
Trois-Rivières, QC
Trois-Rivières, nestled between Montreal and Quebec City, emerges as a top choice for renters in Canada. This historic city, known for its picturesque riverside views and rich cultural scene, offers an appealing blend of affordability and quality of life. Renters in Trois-Rivières enjoy reasonable housing costs, a low unemployment rate, and a vibrant community atmosphere. The city’s well-preserved historic sites, bustling arts community, and excellent educational institutions make it an attractive destination for those seeking a balanced and enriching lifestyle.
Saguenay, QC
Saguenay, located in the stunning Saguenay–Lac-Saint-Jean region of Quebec, is a prime destination for renters seeking affordable living amidst breathtaking natural beauty. Known for its picturesque fjords and vibrant cultural scene, Saguenay offers residents a high quality of life with lower housing costs compared to major urban centers. The city boasts a strong sense of community, excellent recreational opportunities, and a growing economy. For those looking to combine affordability with a rich cultural and natural environment, Saguenay stands out as an ideal choice.
Granby, QC
Granby, nestled in the heart of Quebec’s Eastern Townships, offers renters a delightful blend of small-town charm and ample opportunities. Known for its beautiful parks, vibrant cultural scene, and family-friendly environment, Granby provides an exceptional quality of life. The city’s affordable housing market and strong sense of community make it an attractive option for those seeking a peaceful yet dynamic place to live. With its renowned zoo, bustling downtown, and numerous outdoor activities, Granby is a hidden gem that caters to a diverse range of lifestyles.
Fredericton, NB
Fredericton, the capital city of New Brunswick, offers renters a harmonious blend of historical charm and modern amenities. Known for its vibrant arts scene, beautiful riverfront, and welcoming community, Fredericton provides an excellent quality of life. The city boasts affordable housing options, scenic parks, and a strong educational presence with institutions like the University of New Brunswick. Its rich cultural heritage, coupled with a thriving local economy, makes Fredericton an attractive destination for those seeking a balanced and fulfilling lifestyle.
Saint John, NB
Saint John, New Brunswick’s largest city, is a coastal gem known for its stunning waterfront and rich heritage. Nestled on the Bay of Fundy, it offers renters an affordable cost of living with a unique blend of historic architecture and modern conveniences. The city’s vibrant uptown area is bustling with shops, restaurants, and cultural attractions, while its scenic parks and outdoor spaces provide ample opportunities for recreation. Saint John’s strong sense of community and economic growth make it an inviting place for those looking to enjoy both urban and natural beauty.
Saint-Hyacinthe, QC
Saint-Hyacinthe, located in the Montérégie region of Quebec, is a vibrant city known for its strong agricultural roots and innovative spirit. Often referred to as the “Agricultural Technopolis,” it is home to numerous research centers and educational institutions. Renters in Saint-Hyacinthe benefit from a high quality of life with access to excellent local amenities, including parks, cultural events, and a thriving local food scene. The city’s affordable housing and close-knit community atmosphere make it an attractive option for those seeking a balanced and enriching lifestyle.
Lévis, QC
Lévis, located on the southern shore of the St. Lawrence River across from Quebec City, offers a unique blend of historical charm and modern conveniences. Known for its picturesque views and well-preserved heritage sites, Lévis is a city where history meets contemporary living. Residents enjoy a high quality of life with excellent public services, green spaces, and cultural activities. The city’s affordable housing options and strong sense of community make it a desirable place for renters looking for both tranquility and easy access to urban amenities.
This category looked at factors such as average rent, housing costs, rental availability, and unemployment rates. Québec stood out with 10 cities ranking at the top, demonstrating strong economic stability and affordable housing options, which are critical for renters looking for cost-effective living conditions.
Québec again led the pack in this category, with five cities in the top 10. Ontario followed closely with three cities. British Columbia excelled in walkability, with four cities achieving the highest walk scores, while Caledon topped the list for its extensive green spaces. These factors contribute significantly to the overall quality of life, making these cities attractive for renters.
Victoria, BC, emerged as the leader in this category due to its rich array of restaurants, museums, and educational institutions, offering a vibrant community life. St. John’s, NL, and Vancouver, BC, also ranked highly. Québec City, QC, and Lévis, QC, scored the highest in life satisfaction, reflecting a strong sense of community and well-being. Additionally, Saskatoon, SK, and Oshawa, ON, were noted for having residents with lower stress levels.
For a comprehensive view of the rankings and detailed interactive visuals, you can visit the full study by Point2Homes.
While no city can provide a perfect living experience for every renter, the cities highlighted in this study come remarkably close by excelling in key areas such as housing affordability, quality of life, and community engagement. These findings offer valuable insights for renters seeking the best places to live in Canada in 2024.
