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Posts tagged " income property "

29 Kintyre Ave – excellent income property **SOLD**

September 14th, 2016 Posted by SOLD!! No Comment yet

exterior2-modThere’s an old joke in the real estate business: Nobody gets rich selling real estate (i.e. being a Realtor); people get rich by buying real estate. Now, of course that’s not literally true; lots of Realtors are super successful. The point is that the better play in real estate is as a buyer and long term investor.

Income properties can be a fantastic investment, one I encourage all of my clients to consider. Whether you are a first time buyer looking for extra income to help cover a mortgage, or strictly an investor (i.e. you won’t ever live in the property), you should think about it. Besides the obvious benefit of the income (especially after you retire), in the Toronto market every property owner gets significant capital appreciation, year after year.

Here’s a great opportunity for you: 29 Kintyre Ave, near Broadview Ave and Queen St E, is a large, detached property with three income-generating units. There’s a great 2nd/3rd floor apartment that could be one or two bedrooms, depending upon configuration, with an absolutely fabulous rooftop deck that faces south and gives a sunny view of the area and all the way to the downtown skyline. It really is top notch. The main floor flat is a cozy one bedroom with an eat-in kitchen and a sunny, south-facing walk-out to a porch. The basement unit is a super cute one bedroom, really one of the nicer ones I’ve seen.

You can’t beat the location. Riverside is exploding with new shops, restaurants and condo developments (which means plenty of local foot traffic, which is great for any neighbourhood). Both the Queen St 501 and King St 504 streetcars are a block away. Plus, one could walk up to Dundas to catch the 505 downtown; it goes all the way to Dundas West subway station.

Access to the DVP is right around the corner, and the Gardiner isn’t much further. You can pop down into the Don Valley for a nature walk/run/ride; stroll the local strip; or hike over to Leslieville. It’s no surprise that the walk score is 94, and the transit score is 95 – both “paradise”-like scores!

UPDATE – After one week on the market we generated multiple offers and sold the property to some very happy buyers! 🙂

October 2014 Market Review

November 5th, 2014 Posted by Market Review No Comment yet

The Toronto Real Estate Board reported on the October 2014 market stats today. Sales volume was up over October 2013 by 7.7%, to 8,552 transactions. New listings were up only 3.4% over the same period, continuing the now long-standing issue of insufficient supply in the Toronto real estate market. Tight supply (along with an improving economy, decent job growth and an ever-increasing population) drove the average price up by 8.9% over October 2013.

That’s a significant number – higher than income growth (about 3% this year) plus inflation (about 2% year-over-year). It’s great for home owners: you are seeing real capital appreciation; not so great for buyers, for whom it’s getting a bit harder to keep up.

That said, averages are not the whole story. If you want to get into the market, but can’t afford a $650,000 semi near the subway, there’s no need to fret. Although there aren’t really any ‘cheap’ parts of Toronto, one can certainly find decent value in various areas around town. Everybody has to start somewhere, so buying a smaller house, or one somewhere outside your favourite neighbourhood, is perfectly reasonable.

Alternatively, the condo market continues to show strength (sales volume up 8.2%, average price up just 1.5% after a 9.2% increase last month), making that segment a good option, too.

If you’re not into the condo lifestyle, look for an income property! Those are also in high demand, but if you are willing to take on the responsibility, they offer a great way to afford the Toronto market. (Note that there are requirements, demands and liabilities associated with income properties, so we’d have to have an in-depth conversation about it. That said, I’m a big fan, and encourage you to think about it!)

November seems to be off to a busy start – lots of sales have been reported over the last few days. If you are hoping to sell in 2014, there’s still time; and, if you are a buyer, we’ll see quite a few more opportunities before things slow down in mid-December. Either way, call me today and we’ll get to work!

 

Toronto Real Estate – What’s going to happen in 2014?

January 13th, 2014 Posted by First-time buyers, Interest Rates, Market Commentary, Mortgage No Comment yet

Twenty-fourteen is shaping up to be another great year for the Toronto real estate market. As I have said many times before, Toronto is unlike other markets. It drives me nuts when people talk about the ‘Canadian real estate market’, as if trends in smaller cities and towns have anything to do with Toronto. Our economy is diverse and our population continues to grow, so there’s no mystery as to why residential real estate prices also keep growing. Of course it makes sense that the real estate market here is out-pacing many markets elsewhere in the country. How could it not?

Add to the picture this year the improving US and global economies. The jobs numbers that came out last week in Canada (net losses) and the US (weaker than expected growth) show that the ‘recovery’ is still, well, in recovery. However, there is a growing sense of inevitability that the US will finally show some upward momentum this year. Even Europe seems to have stumbled towards stability. As the American economy grows, so do Canadian exports, which will give a boost to our own mostly-stable, but slow-growing, economy. Once real growth kicks in we’ll be in for a few good years. (How many is anybody’s guess. This C.D. Howe report indicates that the pre-recession growth cycle was 16 years. We should be so lucky this time around!)

Another major factor this year is interest rates. I think that we are probably still on course for flat rates this year and into next. Even when rates do start to rise, they’ll most likely rise slowly, so as not to jolt the economy. We’ve got another few years of near-record low rates ahead of us. (My first mortgage, in 2001, was for 8.9% – more than double current rates – which was considered a great deal in those days. Perspective is important!)

The supply shortage that has been a feature of the Toronto market since late 2008/early 2009 has yet to ease. As a full-time, professional Realtor I spend a lot of time talking to other agents. As we start 2014 there is a continuing urgency among my colleagues to find homes for our buyer clients. The view ‘on the ground’ is that tight supply will continue to drive prices up, particularly for single family homes and small income properties. I believe that it’s safe to expect a 5-7% year-over-year increase in 2014.

On that latter note, specifically, I continue to encourage my clients, especially first-time buyers, to consider an income property. In the short term, the income will help you afford not only the purchase (assuming you live there, which is an important factor), but a decent lifestyle. If kids are in the plan, or even if you just want more privacy down the road, you can keep the income property and use the equity to move on at some point. Not surprisingly, though, duplexes and triplexes are in high demand/low supply. It’s not a slam dunk, but it’s definitely worth thinking about.

Mortgage rate tip: one of the big bank mortgage pros that we work with told a group of Realtors last week that he expects a mortgage rate ‘sale’ some time in February or March. It has happened in each of the last few years, so he thinks it will happen again. Watch for it, and if you are in the market, try to nail down an interest rate deal before the busy spring market.