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Real estate as a money-making investment with Taylor Bennett – CTV Edmonton

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OTTAWA —
Getting into the Ottawa Real Estate market has been a bit like being a contestant on ‘The Amazing Race’; you need stamina, a strong stomach, and a good team.

We all know someone who has been in the multiple offer, bidding war, paying-well-over-asking scenario.

That may lead an investor, someone looking for a real estate purchase to generate income, to believe the Ottawa market is overvalued.

Taylor Bennett, a broker with Bennett Property Shop realty, spends a lot of his time educating buyers on real estate values in the nation’s capital, and he explains the recent spike of 20 per cent growth is a market playing catch up.

“When you look at the annual growth over the last 10 years, the Ottawa market looks to be making up for a five-year span when the growth was under three per cent,” says Bennett.

“While the Ottawa market won’t continue to grow at the current 20 per cent rate, even Ottawa’s average growth of 6.7 per cent makes the local real estate market a solid and secure investment option.”

Bennett is a regular contributor on CTV’s News at Noon and regularly hosts “The Bennett Real Estate and Wealth Show” on Newstalk 580 CFRA.

“Investing your money into anything can be risky: stocks, start-up, mutual funds,” explains Bennett.

He says that Ottawa has proven to be “one of the most reliable real estate markets in North America supported by an extremely predictable and stable economy.”

“This stability makes the local real estate markets an excellent option when it comes to investing your money.”

Bennett says investors need advice, the right plan, an understanding of the market, knowledge of costs, a sense of expectations and risk tolerance. He’s prepared these tips to help:

Last 10 Years in Ottawa

Average Annual Price Growth:

  • 2011 5.0% 
  • 2012 2.4% 
  • 2013 1.6% 
  • 2014 1.2% 
  • 2015 1.6% 
  • 2016 1.2%
  • 2017 5.5%
  • 2018 3.8%
  • 2019 8.4%
  • 2020 19.9%

10-Year Average = 5.3%

65-Year Average = 6.7%

Investing Made S.I.M.P.L.E.

S – Seek expert advice

I – Identify your goals

M – Money

P – Property type

L – Level-headed approach

E – Exit strategy

Seek Expert Advice

  • Real estate advisor
  • Tax accountant
  • Mortgage specialist

“To make the best choices, you need the best information and advice. It may seem obvious but before you start making any concrete plans be sure to seek out experts or people who have successfully invested in real estate to get advice based on real-life experience. While it may be tempting to get your info from an online blog or article, everyone starts in a different position, and each investment plan should be personalized based on the individual. Everyone has a different tolerance for risk, different finances, and different goals.”

Identify Your Goals

  • Increase monthly cash flow
  • Equity growth
  • Subsidize income

“Defining what it is you want to achieve from the start is essential. If you don’t know where you want to be, how will you know how to get there? Identifying your main goal allows for the rest of the plan to fall into place. This will help narrow down potential properties, target specific neighbourhoods or areas, etc.”

Money: How Much Will You Need?

  • Initial down payment
  • Property improvements
  • Vacancy, advertising, etc.

“As cliché as it is, you need to spend money to make money, but it’s a cliché for a reason: it’s true. Investing in real estate can be costly but not all investments require the same up-front costs. At minimum, the vast majority of real estate investments require a 20 per cent down payment. The most common ways of funding this down payment are from savings, a loan, an inheritance, or a HELOC (home equity line of credit).”

Property Type

  1. Muli-Unit Dwelling
  2. Pre-Construction
  3. Residential or Condo

“Different styles, and types of properties, will help deliver certain investment goals, and each comes with its own level of risk, upkeep, upfront & on-going costs. Once you have defined your goals and finalized your finances, narrowing down the styles of properties becomes far easier.”

Level-headed Approach

  • Put the emotions aside
  • Let the numbers decide

“Many first-time investors often apply the same approach they took when they bought their personal residence, which is a highly emotional decision. The same approach isn’t effective when it comes to investing. Your personal tastes or preferred style of home aren’t important when buying an investment property. Not only is it vital to stay within your financial means, reminding yourself that you’re not the ‘end user’ can help make the decision easier.”

Exit Strategy

  • When to sell?
  • Additional taxes?
  • Identifying opportunity costs

“Investing in real estate should be planned as a long-term investment, but there comes a time to sell and move on to the next. Having a set timeframe is important, but assessing your investment should be an on-going task to not only ensure the investment plan is progressing but to help identify other opportunity costs in the market.”

“Along with identifying the correct time to sell, savvy investors should also have a firm grasp of the costs of selling: additional taxes, capital gains tax, real estate or legal fees, etc.”

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Canadian home sales, prices surge to new record in March

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OTTAWA (Reuters) – Canadian home sales rose 5.2% in March from February, setting a new all-time record amid strong demand in markets across the country, the Canadian Real Estate Association said on Thursday.

The industry group said actual sales, not seasonally adjusted, rose 76.2% from a year earlier, while the group’s Home Price Index was up 20.1% from last March and up 3.1% from February.

The actual national average selling price hit a new record at C$716,828 ($572,821) in March, up 31.6% from a year earlier and rising 5.7% from February.

($1 = 1.2514 Canadian dollars)

 

(Reporting by Julie Gordon in Ottawa)

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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

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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!

Source: – Aldergrove Star

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