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Nonagenarian-in-waiting 'cut out for real estate' – The Kingston Whig-Standard

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They’ll be spinning stories 13 to the dozen at longtime local realtor Peter Davy’s upcoming 90th birthday bash, with the nonagenarian-in-waiting being the odds-on favourite to lead the tale-telling.

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Davy, who turns 90 two days after the Oct. 3 private party at Queen’s University Faculty Club, is the undisputed elder in the Limestone City real estate agents’ lodge. When Davy sold his first house, the Dodgers were still in Brooklyn, Ike was in the White House and Rocky Marciano was heavyweight champion. Along with Etobicoke’s Daniel Gargarella — the Methusula of agents in Canada who is “still knocking on doors” at age 97 — Davy stands among the industry’s longest practitioners.

He’s also well liked and respected by fellow members of his profession and the city’s business community at large, a gentleman salesman whose reputation was forged through ardent dedication, care and commitment.

“A lot of people pick wrong careers,” Kingston lawyer and longtime Davy friend Geraldine Tepper notes. “Not Peter. He was cut out for real estate. He’s considerate; he’s there at the beginning of a deal and he’s there through its completion and even afterwards. He’s a true professional.”

Davy’s a splendid storyteller with an endless supply of material, as yours truly discovered during a telephone conversation the other day. Which means he’s sure to get a decent verbal workout once someone, at some point during the aforementioned shindig at Queen’s, asks the guest of honour how he got started in the business. At that, Peter will be off and running. He’ll begin with his usual, “Now that’s an interesting story,” before relaying a wonderfully detailed anecdote of how in his early twenties he’d dismissed the idea of ever following in the footsteps of his father, Henry Mowat Davy, a successful Toronto realtor. In the next breath, before he goes further, he’ll proudly point out that his father was born in the kitchen of the Davy homestead, which predates Confederation and sits above Millhaven Creek, near Odessa and next door to where Peter and his wife, Carol, still live. He’ll go on to explain that as the youngest of Henry and Irene’s six kids, he wanted no part of a career that demanded long, abnormal hours and adherence to duty. The story will continue with Peter leaving Toronto when he was 16 to live on the Davy farm with an elder sister. He would later enrol at Queen’s, meet Carol, marry Carol, and whisk her away to their matrimonial home — the Davy farm, which the groom had inherited. It wasn’t long, however, before the eager-yet-meagre farmer realized he was, as the saying goes, beating a dead horse.

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“We’re going broke” were the gloomy words he spoke to Carol one morning a couple of years into the ill-fated experiment. At the ensuing farm auction, everything was sold except the buildings and the land: equipment, tools, feed, livestock, the works. “It was strange waking up the next morning and seeing everything gone, even the four horses,” Peter remembers.

Needing a job, the young husband obtained his real estate licence through his brother’s Toronto office, and in March 1955 he opened Davy Real Estate, a one-man outfit operating out of a tiny “on loan” office at 83 Clarence St.

An astonishing 66 years later, he’s still at it, working out of rented office space on upper Princess Street and dealing primarily with longtime clients. His business — at its zenith it included 16 salespeople, a secretary and office manager Carol — is back to a one-man operation. Only the pandemic, not Davy’s zest for his job, has slowed his schedule.

At some juncture during the Faculty Club soiree, someone might ask Peter if he has roots in this area. Peter, eyes widening, will likely begin with a teaser — “Yes, but only as far back as the early 1800s” — then slide seamlessly into the saga of his great-great grandfather and namesake Peter Davy. He’ll tell how the latter and his four brothers travelled up from the United States in the late 18th century along with other United Empire Loyalists. The story goes that Peter’s “double-great” granddad, a barrel maker by trade, was paddling up Millhaven Creek looking for a suitable lot on which to build. He spotted a large stand of white oaks and immediately envisioned hundreds and hundreds of oak barrels. He paddled no further. The pioneering Davy applied for and was granted a “piece of clergy reserve” — roughly a 100-acre plot — and got busy building what future generations of Davys have come to call the “homestead.”

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No doubt a question will float from a wine glass as to how Peter and Carol met. The birthday boy, twisting his face into a warm smile, will exclaim, as he did to me: “Now that’s a REALLY interesting story!”

“I met her on a blind date,” the old-timer says, recalling university days when Davy also played alto sax in a pickup jazz and dance band. “A musician friend had made a date to bring this girl to a dance on campus, but he’d forgotten that his band was also playing the dance. He asked if I’d take her. I said sure; I’d seen her around campus and had already been trying to figure out how to hit on her. Instead, she fell right in my lap.”

The details of Date No. 1 remain a staple for a born raconteur like Davy, who celebrated 68 years of wedded bliss with Carol this past August. Throughout their lengthy union — the couple have two children, Carolynne and Chris, four grandkids and seven great-grandkids — Carol has also been an extra set of ears for her hearing-impaired husband. Peter started losing his hearing at age 15, a punishing fate for someone so musically inclined. Prior to having cochlear implants 15 years ago, his hearing was at 10 per cent. Of the cochlear procedure, he says appreciatively, “it changed my life.”

Ideally, before handshakes, hugs and farewell fist bumps signal the end of the impending festivities, someone in the know will ask the ageless agent for details of the night he spent in a jail cell. To hear Peter tell it, he was asking for it — the night in the clink, that is. Literally.

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It happened in 1951 in Lake Placid. Davy and two fellow summer student workers at Alcan, after finishing a Friday 4-to-12 shift, hit the highway in Davy’s ’51 Austin and arrived at the resort town in Upstate New York around 4 a.m. Unable to find lodging at that hour, they drove to a police station and asked the lone officer on duty if they could sleep in their car and leave it parked overnight on the lot. Fortunately for the visitors from Canada, business in the “crowbar hotel” was slow that night. So the cop went one better. He let the boys bed down in empty cells.

The next night in Syracuse, the trio, looking to save more Alcan dollars, figured they’d try again. Davy pulled the Austin into a police station lot late at night and asked the on-duty officer if he and his two pals could spend the night behind bars, so to speak.

The cop instead led Davy to the lockup area. “The cells were jammed full,” Davy recalls seven decades later. “The officer said, ‘Do you still want to stay here, buddy?’”

Patrick Kennedy is a retired Whig-Standard reporter. He can be reached at pjckennedy35@gmail.com.

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Banks Believe They Are Well-Prepared for Commercial Real Estate Fallout – The Wall Street Journal

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Banks Believe They Are Well-Prepared for Commercial Real Estate Fallout  The Wall Street Journal

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Home buyer savings plans boost demand, not affordability – Financial Post

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Robert McLister: Tax shelters don’t make housing more affordable, but those with the cash would be foolish not to use them

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With housing unaffordability near its worst-ever level, our trusty leaders are on a quest to right their housing wrongs and get more young people into homes.

Part of Ottawa’s big strategy to “help” is promoting tax-sheltered savings accounts and pumping up their contribution limits. That, of course, stimulates real estate demand amidst Canada’s population and housing supply crises. But save that thought.

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First-time buyers now have three government piggy banks to stockpile cash for a down payment:

1. The 32-year-old RRSP Home Buyers’ Plan — which lets you deduct contributions from your income to defer taxes and then borrow from the account interest-free for your down payment (as long as you wait 90-plus days to withdraw any contributions);

2. The 15-year-old Tax-free Savings Account (TFSA) — which lets you save after-tax dollars, grow your money tax-free and withdraw it without the taxman taking a bite;

3. The one-year-old First Home Savings Account (FHSA) — which is a combination of an RRSP and TFSA. It lets you deduct contributions from income, compound it tax-free and never pay tax on withdrawals used to buy a home. You can even save the deduction for a year when you need it more — when you’re earning more money.

Assuming you have the funds and contribution room, these tax shelters can combine to help you amass a supersized down payment.

“Looking at the FHSA alone, with the max annual contribution room of $8,000 for 2023 and 2024, a potential first-time home buyer could have as much as $16,000 deposited in the account today for a down payment,” says Eric Larocque, chief mortgage operations officer at Questrade’s Community Trust Company.

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“If you also add in the cumulative contribution room of $95,000 for the TFSA, it amounts to $111,000 in potential funds available — and that’s before incorporating investment gains from either account.”

And it doesn’t stop there. RRSP, TFSA and FHSA savings limits keep increasing. If first-timers have enough contribution room, down payment savers in 2024 can sock away even more in these tax-sheltered troves.

“Factoring in the recent changes to the Home Buyers’ Plan, which now permits RRSP withdrawals of up to $60,000 — up from $35,000 — we land at a potential total of $171,000 in deposited funds that can be tapped for a first-time home buyer’s down payment,” Larocque adds.

That’s quite a wad — easily enough to cover the 20 per cent ($139,706) down payment required to avoid mandatory (and pricey) default insurance on the average home. Canada’s average abode is now worth $698,530 by the way, according to the Canadian Real Estate Association.

Here’s the rub: Canada’s living costs are sky-high, and real disposable income has trended downward. So, how’s an average first-time buyer household, raking in less than six figures, supposed to amass such a stash?

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Based on national averages, saving 10 per cent of one’s pre-tax income per year (who does that?) would take a young FTB couple over 15 years to sock away $140,000. History shows what would happen to home values if you waited 15 years — they’d jet off without you.

If you have no other resources and your bet is that historical appreciation rates continue — despite slower population growth, more building and potentially higher long-term rates — you’re better off saving less and buying sooner with a five per cent down insured mortgage.

So, does Big Brother really expect your typical first-time buyer to max out all these savings plans? Nope. But hey, throwing a buffet of options at you sure paints a pretty picture of government effort, doesn’t it?

Ottawa’s dirty little secret is that these nifty programs crank up demand, turning renters into buyers. So don’t bet on them making the home-owning dream any cheaper, for first-timers or anyone else.

Take advantage of them anyway.

The government sets limits on these tax shelters with well-off home buyers in mind. One lucky bunch who can make use of all three down payment savings plans is the first-timer with prosperous parents.

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Such buyers can make a withdrawal from their parental ATM (a living inheritance, some call it), deposit that cash in all three savings vehicles above and reap: hefty income tax savings or deferrals (thanks to the FHSA and RRSP deductions); tax-free/tax-deferred growth on the investments; and tax-free withdrawals if the money is used to buy a qualifying home (albeit, you’ll have to pay the RRSP HBP back over 15 years, starting five years after your withdrawal).

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The more opportunities it gives people to save for a down payment, the more Ottawa worsens the imbalance between purchase demand and supply. And that, of course, boosts real estate values skyward — which is dandy for existing owners but contradictory to the government’s affordability messaging.

But hey, these tax treats are ripe for the picking. Home shoppers with the means — especially those with deep-pocketed parents — might as well take advantage of all three accounts.

Robert McLister is a mortgage strategist, interest rate analyst and editor of MortgageLogic.news. You can follow him on X at @RobMcLister.

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$93 Billion Real Estate Giant Is Betting The Market Is About To Hit Rock Bottom – Yahoo Finance

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$93 Billion Real Estate Giant Is Betting The Market Is About To Hit Rock Bottom

$93 Billion Real Estate Giant Is Betting The Market Is About To Hit Rock Bottom

Successful real estate investors have long followed the adage: When there is blood in the street, buy property.

Historically, this approach has yielded dividends, and it explains the mindset behind a new venture from Hines, a real estate giant with over $93 billion in assets under management. Hines recently announced a new platform called Hines Private Wealth Solutions that seeks to capitalize on the recent troubles in the real estate industry.

The management at Hines has been carefully watching the real estate industry for decades, and they believe that today’s market presents the perfect opportunity for investors to buy distressed assets and sell them at a profit in the future. When you consider that nearly $4 trillion in commercial real estate loans are set to mature between now and 2027, it’s easy to see the logic behind Hines Private Wealth Solutions.

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The developers behind many of those projects took out loans assuming they would be able to refinance at pre-COVID interest rates. Considering that current interest rates are about double what they were before COVID-19, that assumption looks more like a losing bet every day. It also means there will be a lot of foreclosures that a well-positioned fund can snap up for pennies on the dollar.

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That’s where Hines Private Wealth Solutions seeks to step into the picture. It’s already contracted with investing heavyweight Paul Ferraro, former head of Carlyle Private Wealth Group, and raised $10 billion in funds for the new project. It will offer its clients a range of investment options, including:

In addition to these offerings, Hines will also give personal guidance to its investors on how to best manage their real estate assets. It is targeting investors who want to turn away from the traditional 60/40 investment model by channeling more money into real estate and away from other alternative investments. Hines is banking on the idea that high interest rates and high inflation will be around for a while.

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When that happens, it becomes more important for investors to hold inflation-resistant assets. That’s a big part of why Hines is betting that real estate is near the bottom after years of declining profits resulting from high interest rates and major losses in the commercial sector. Hines’s conclusion that now is the time to buy real estate is based on long-term company research showing that real estate typically declines after a 15- to 17-year-long growth period.

Its research shows that the decline normally lasts around two years, which is about the same length of time the real estate market has been suffering from high prices and high interest rates. Theoretically, that makes this the perfect time to make aggressive moves in the real estate market, and the Hines Private Wealth Fund was conceived to allow investors to take advantage of current market conditions.

Despite the deep troubles facing today’s real estate industry, it’s not hard to see the logic in Hines’s approach.

“This is a great vintage, it’s a great moment. This real estate correction began really over two years ago, right when the Fed started raising interest rates,” Hines global Chief Investment Officer David Steinbach told Fortune magazine. “So, we’re two years into a cycle, which means we’re near the end.”

If Hines is correct, real estate investors will have a lot of good bargains with high upside to choose from in the next 12 to 24 months. The good news is that even if you’re not wealthy enough to buy into the Hines Private Wealth Solution, there may still be plenty of opportunity for you to adopt their investment philosophy and start scouting for an undervalued, distressed asset to scoop up. Keep your eyes open and be ready.

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This article $93 Billion Real Estate Giant Is Betting The Market Is About To Hit Rock Bottom originally appeared on Benzinga.com

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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