OTTAWA REAL ESTATE NEWS

by qangelikar 21. April 2016 07:54
March resale market springs into action Ottawa, April 19, 2016 - Members of the Ottawa Real Estate Board sold 1,166 residential properties in March through the Board’s Multiple Listing Service® system, compared with 1,200 in March 2015, a decrease of 2.8 per cent. The five-year average for March sales is 1,220. “We are definitely seeing a resale market increase from the previous month, with 256 more properties sold in March over February,” says President of the Ottawa Real Estate Board, Shane Silva. “Properties are starting to sell faster, indicating that we are heading into our busy spring market.” March’s sales included 221 in the condominium property class, and 945 in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, townhouse, etc.), which is registered as a condominium, as well as properties which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties. “In March, 3,203 homes were listed, up 38.6 per cent since February, and inventory on hand at the end of March also rose by 17.5 per cent from last month,” says Silva. “Although there is a slight dip in units sold compared to last year, average price remains steady keeping the Ottawa resale market healthy and strong. Canada’s capital continues to be a great place to buy and sell real estate.” The average sale price of a residential-class property sold in March in the Ottawa area was $394,951, an increase of two per cent over March 2015. The average sale price for a condominium-class property was $258,714, an increase of 2.4 per cent over March 2015. The Board cautions that average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold. “The hottest segments in our market continues to be in the $300,000 to $400,000 price range, followed by the $200,000 to $300,000 price range,” says Silva. “Residential two-storey and bungalow homes, and one level condo properties have the highest concentration of buyers in March. In addition to residential and condominium sales, OREB Members assisted clients with renting 695 properties since the beginning of the year.”

MAKING A QUICK BUCK IN REAL ESTATE.

by qangelikar 1. February 2016 06:22

Focusing on real estate for investing purposes has taught me a few lessons. I`ve looked at all the angles and real estate is a good investment in general. However, I wanted to discuss the flip and resell option that some people are looking at. Unless you are a contractor and know what you are doing you don`t really have a chance. The only people that make money on flip properties are the real estate agents and the lawyers. One of the main reasons is that buyers seem to go overboard on in town properties. If something is listed as a fixer upper, and a low price, there seems to be a lot of interest even if the place is a tear down and it gets multiple offers. I find in my opinion and in the opinion of some of the contractors I deal with that people overpay for them. This makes it very hard to buy given you can`t finance these properties due to the condition and you have to come up with the cash to fix them. Then you have to resell the property to get your money back and you have to pay the real estate brokerage and the lawyer, again. If you are thinking of investing in real estate you have to be prepared for the long run. There is no magic property that is owned by the little old lady that will sell it to you for a song. All the little old ladies now talk to a real estate agent if they want to sell. And I`ll tell you, we have had listing meetings with more than a few little old ladies and if they are disillusioned it`s because they think it`s worth twice what it actually is. You might ask if I have a better option......well I do. If you invest in the townhouse condos I recommend; you can finance them because they are in good condition; you only have to put about $40K down; there`s no work for you to do now or ever as it`s all taken care of for you; you don`t have to get a tenant as my property manager will get you a qualified, quality tenant; you don`t even have to see the tenant as she will take care of it for you. Now, I know I have mentioned that with 20% down the property is only slightly positive of revenue neutral but keep in mind that each and every month over $300 is paid off on the mortgage principal. Also keep in mind that the property you are buying is valued at about $200K and even if real estate prices increase a measly 3% (average since 1980 is over 5.4%) the value increases by over $6K each year. So in effect you are making about $10K per year without doing anything. Think about it.

 

For More information Call Leo Rosato 613-720-4356

 

or Visit

 

www.TripleYourMoney.ca

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Lost Opportunity!

by qangelikar 1. February 2016 06:17
"Lost opportunity cost is one of the eroding factors of money that people least understand. In fact, if you haven't discussed this with your financial advisor, you're probably not alone. It is rarely assessed by them. Lost opportunity costs is the actual money you lose due to a financial decision you make verses a different financial decision. The money you lose must be an actual cost and not hypothetical. For example, the cost of lost opportunity cannot be calculated between two investments you have not made." ..... from Choose Financial Freedom. Let's look at a scenario I have been pitching to people interested in real estate as an investment: Currently there's a condo unit available (one of many) for sale for $175K (I'm going to round things to the nearest $1000 where applicable). If you're an investor you have to have 20% down or in this case $35K. You need another $3k for land transfer and legal fees.....so $38K. You also have to get a $140K mortgage. For our purposes I have used 3.49% rate for calculations. As I have explained to other investors my property manager will put a tenant in to pay all the bills so you do not have to put any additional moneys in. The property is essentially 'revenue neutral'. After 10 years the $140K mortgage will be reduced to $98K. Based on the Ottawa Real Estate Board average increases since 1980 have been 5.535%. Let's use a more conservative approach and assume that real estate will only increase 3% average per year. I will tell you this is highly unlikely but let's assume it. This means that after 10 years (at 3%) the $175K unit will be worth $235K. Simple math will tell you that you made $42K reduction on mortgage and $60K increase in real estate value for a total of $102K gain. That's about $10K per year ( I will let you know that if the increases are closer to 5.5% as they have been since 1980 your profit is $167K or over $16K per year). So where does the lost opportunity come in? If you have $38K in a bank account and it's not making you $10K annually on average you have lost the difference. I don't know of any bank or institution that pays that much these days. It goes further in that, because, as you create wealth other opportunities present themselves as described in this final quote: "Opportunities multiply as they are seized" ...... Sun Tzu

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DO SOME PROPERTY VALUES INCREASE MORE THAN OTHERS?

by qangelikar 1. February 2016 06:16
I have had occasion to be asked by some people if one type of property increases faster/more than another or if an area increases faster/more than another. I have also had seasoned agents tell me as much and I can tell you that they are, well.....wrong. I didn't have to be in real estate at all to tell you that. Simple math will answer that question. For example, I have charted and analyzed several different types of home styles. I analyzed Detached, Semi Detached, Town-Homes and Condos and in 2014 they were, respectively $350K, $325K, $280K and $200K approx. I made an analysis based on the % increase for each at 5% except Town-Homes at 6%. The chart showed that if the trend continues after 17 years the town-home will be worth more than a semi and after 25 years it will be worth more than a detached home. Now we all know that is impossible. It's safe to assume that for long term real estate investment increases are equal across the board. To assume otherwise would be making a mistake. The only thing that affects real estate prices in a given area is the economy. It's all about jobs!

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DO SOME PROPERTY VALUES INCREASE MORE THAN OTHERS?

by qangelikar 1. February 2016 06:08
I have had occasion to be asked by some people if one type of property increases faster/more than another or if an area increases faster/more than another. I have also had seasoned agents tell me as much and I can tell you that they are, well.....wrong. I didn't have to be in real estate at all to tell you that. Simple math will answer that question. For example, I have charted and analyzed several different types of home styles. I analyzed Detached, Semi Detached, Town-Homes and Condos and in 2014 they were, respectively $350K, $325K, $280K and $200K approx. I made an analysis based on the % increase for each at 5% except Town-Homes at 6%. The chart showed that if the trend continues after 17 years the town-home will be worth more than a semi and after 25 years it will be worth more than a detached home. Now we all know that is impossible. It's safe to assume that for long term real estate investment increases are equal across the board. To assume otherwise would be making a mistake. The only thing that affects real estate prices in a given area is the economy. It's all about jobs!

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CONDO FEES-A WASTE OF MONEY?

by qangelikar 1. February 2016 06:05
I thought I would pass this along FYI. A couple of things come up from time to time in discussing real estate investment. One of them is the condo fee. It seems that some new investors treat a condo fee, no matter how low, as a non starter. Just because something has a condo fee it's not a reason to reject it as an investment. That would be taking a very narrow view and would be disadvantageous to reject an investment or house purchase solely on the basis of that alone. More importantly is the ROI, cap rate, and other indicators. Also, you have to compare apples and apples and not apples and oranges. Not including some amount for repair and maintenance (which is what a condo fee really is) on the calculations for a freehold purchase is like comparing apples and oranges. So much for fruit.

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LIGHT RAIL AFFECTS REAL ESTATE PRICES!

by qangelikar 1. February 2016 05:48
Something to consider in buying properties. It's an established fact that in areas near transit stations rent for higher amounts than those farther away. The rough guide is about 800 meters. If you can walk to it, it will save having to use an automobile. The City of Ottawa website has the maps showing the proposed routes. These properties are a good investment now but they will be better when light rail reaches there. This also applies to properties you may want to live in personally as long as the tracks are not in your back yard. Just keep an eye on where the tracks are or will be as you can be too close.

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Financial Freedom!!!

by qangelikar 13. January 2016 10:23

I can show you how you can invest in select properties and make over 12% annually or triple your money in just 6 years!

If you are a current investor, new to investing or just thinking about it for the near future and want more information simply visit the following website.

www.TripleYourMoney.ca

Meetings held regularly or on request to reserve call Leo Rosato 613-720-4888

 

Ottawa Real Estate News

by qangelikar 13. January 2016 09:42
Record-breaking December, contributes to a strong 2015 Ottawa, January 6, 2016 - Members of the Ottawa Real Estate Board sold 703 residential properties in December through the Board’s Multiple Listing Service® System, compared with 638 in December 2014, an increase of 10.2 per cent. The five-year average for December sales is 653. The total number of residential and condo units sold through the Board’s MLS® System throughout all of 2015 was 14,658, compared with 13,919 in 2014, an increase of 5.3 per cent. Separately, residential and condounit sales each outperformed the 2014 numbers. “Looking back at the 2015 market, we started the year off with extreme cold temperatures in the first quarter of the year, but that didn’t stop homebuyers,” says new President of the Ottawa Real Estate Board, Shane Silva. “We saw the busy spring selling season pick up as early as March this year, and continue well throughout the summer, with a small dip in July, followed by record-breaking sale numbers in September. Three months later, December broke the record for the highest number of residential and condo properties sold at 703 units, only comparable to 2011, when 699 properties sold.” December’s sales included 160 in the condominium property class, and 543 in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, stacked etc.), which is registered as a condominium, as well as properties which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties. “The listing inventory for both residential and condos trended higher all year, showing signs of tapering off in October,” says Silva. “Increased inventory levels contributed to the market favouring Buyers for much of the year; however as the inventory levelled out in the fall, we moved into more balanced conditions. Cumulative days on market increased to 109 days in December, while the average for the year comes in at 86 days. Average residential sale prices are up slightly over last year, which is great for the Ottawa market. All combined, these indicators point to a stable real estate market.” The average sale price of a residential-class property sold in December in the Ottawa area was $386,961, an increase of 5.5 per cent over December 2014. The average sale price for a condominium-class property was $250,393, a decrease of 7.5 per cent over December 2014. The year-to-date numbers for the average residential sale price in 2015 was $391,940, an increase of 1.9 per cent over 2014. While the average condominium sale price was $259,691, a decrease of 1.5 per cent over 2014. The Board cautions that average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold. “A trend all year long, the hottest segments of our market are properties sold in the $300,000 to $400,000 price range, with 31.6 per cent of the year’s sales, followed by the $200,000 to $300,000 range, with 26.2 per cent of the year’s sales” says Silva. “In addition to residential and condominium sales, OREB Members assisted clients with renting 181 properties in December, and over 3,000 properties this year.” ****INFORMATION COURTESY OF THE OTTAWA REAL ESTATE BOARD****

Ottawa Real Estate News

by qangelikar 15. January 2013 11:24
Steady as she goes for the Ottawa resale market in 2012 Ottawa, January 4, 2013 Members of the Ottawa Real Estate Board sold 618 residential properties in December through the Board’s Multiple Listing Service® system, compared with 695 in December 2011, a decrease of 11.1 per cent. The five-year average for December sales is 617. The total number of homes sold through the Board’s MLS® system in 2012 was 14,308, only a minor decrease from the 14,389 homes sold in 2011. However, resale home sales in 2012 were slightly above the five-year average of 14,274. The average sale price for 2012 was $351,792, an increase of 2.3 per cent over 2011.” “Looking back at the 2012 market, home sales in the first part of the year increased in comparison to the first half of 2011,” said new President of the Ottawa Real Estate Board, Tim Lee. “However, with the introduction of tighter mortgage rules in July, and looming government layoffs, the market seemed to “cool down” for the second half of 2012. Although the government has succeeded in its plan to “cool down” the market, Ottawa remains steady and balanced, devoid of large fluctuations in resale activity. We are truly fortunate to live and work in such a stable market area, and it seems buyers and sellers agree that Ottawa remains a great place to call home.” December’s sales included 134 in the condominium property class, and 484 in the residential property class. The condominium property class includes any property, regardless of style (i.e. detached, semi-detached, apartment, stacked etc.), which is registered as a condominium, as well as properties which are co-operatives, life leases and timeshares. The residential property class includes all other residential properties. The average sale price of residential properties, including condominiums, sold in December in the Ottawa area was $336,591, an increase of 1.3 per cent over December 2011. The average sale price for a condominium-class property was $258,498, a decrease of 1.5 per cent over December 2011. The average sale price of a residential-class property was $358,211, an increase of 0.6 per cent over December 2011. The Board cautions that average sale price information can be useful in establishing trends over time but should not be used as an indicator that specific properties have increased or decreased in value. The average sale price is calculated based on the total dollar volume of all properties sold.” The Ottawa Real Estate Board is an industry association of over 2,800 sales representatives and brokers in the Ottawa area. Members of the Board are also members of the Ontario and Canadian Real Estate Associations. The MLS® system is a member based service, paid for by the REALTOR® members of the Ottawa Real Estate Board. The MLS® mark symbolizes the cooperation among REALTORS® to affect the purchase and sale of real estate through real estate services provided by REALTORS®. MLS® commercial and residential listings are available for viewing on the Board’s internet site at www.OttawaRealEstate.org and on the national websites of The Canadian Real Estate Association at www.REALTOR.ca and www.ICX.ca. Trademarks are owned or controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA (REALTOR®) and/or the quality of services they provide (MLS®).

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