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Inner Circle Real Estate Updates |
| WEALTH BUILDERS RECENT NEWS | | | CHMC: Winnipeg Housing Starts Reach 20-year High in 2007 Click here for report | Dec 15, 2007
| The November 2007 edition for Housing Now - Major Centres - Winnipeg has been republished. Click the link below to access the republished edition. http://www.cmhc-schl.gc.ca/odpub/esub/64191/64191_2007_M11.pdf We are pleased to see the strong market momentum in Winnipeg.
Market ACTIVITY (Table 5, p.20) from March through October 2007 is stronger than 2006 as shown by the number of sales per month.
Notice there are almost no housing starts for SMALL HOMES under
$200,000. The low end market will be a hidden treasure in the future. The low
end market is very similar to our East Hastings (Vancouver) market which has turned into
a hot area due to its affordability, location and convenience. Not a lot of
investors buy in the East Hastings area but those who did had a very good
return on capital and cash flow over the years.
The ECONOMIC INDICATOR (Table 6, p.21) also reflects that the average weekly earnings are slightly lower than the monthly mortgage payments with principal plus interest for
every $100,000. This happens in a market where the median house
price is 270,000. Compare it to other markets where the average weekly earnings are
slightly above the monthly mortgage but the median house price is over
$500,000. Winnipeg is still a very affordable market across Canada. AFFORDABILITY is by far one of the best indicators for a sustainable market.
If we refer to their NEW HOUSING ABSORPTION RATE (Table 4, p.17 & 18), it is doing extremely well with only one month inventory for the new housing market.
For all of your information, I am looking in Winnipeg again in the Deep
Freeze, usually we can have better bargain in this weather and we can avoid
the competitions in summer and fall. HARSH WEATHER IS A GOOD TIME FOR
INVESTORS. | July 16, 2007
| CMHC -Calgary multi-housing starts continues to rise, while single-housing starts declines
| July 15, 2007
| Financial Post - Canadian's appettie for real estate confound experts | July 10, 2007
|
CMHC
- Kingston starts remains stable, click to read
article. Also found in "Location
Profiles and Tools" Tab under Ontario.
| | Tuesday, June 26, 2007 7:27 AM | Subject: 453 Victor Street, Winnipeg, Manitoba Our Property Manager advised us by way of email over the weekend that the work which was outstanding pursuant to the Work Order has been completed. The inspector was to contact the Property Manager Monday morning for a re-inspection time. However, yesterday we received a further email whereby the Property Manager advises that the inspector was not expected in the office until today. Accordingly, we hope to have this matter resolved today. Our Property Manager advises that the total costs for labour and material (not including taxes) will be $1,550.00, assuming no further work is required. As we had previously advised of our reduced request with respect to the holdback to $1,500.00, we anticipate that we will be recommending a settlement at $1,500.00 on this outstanding issue. We are waiting for a reply from them. 453 Victor St, Winnipeg, Manitoba The legal transaction is done, possession pending for legal advice. Problem: Vendor lied to us about an outstanding work order from the city. Some work needs to be done in order to remove this work order. Vendor in breach of contract, but we do have an extra $2,000 refund to cover some of the work mentioned in the order. The funds are held by the Vendor’s lawyer, we are waiting for the vendor’s action and reply. $800 has been quoted by the seller’s source for the work order. The property is an area equivalent to Vancouver’s Downtown Hastings Street area. It is in a rough neighborhood only a few minutes away from downtown. We accepted the offer at $78,000 because the neighborhood has word that it will have redevelopment to bring up the neighborhood. | Jun 24, 2007 11:07 PM | 653 Aberdeen Both suites vacant, good chance for Kevin, our property manager, to get his own tenants. 296 Boyd One suite vacant. 453 Victor One suite vacant, still working on some repairs as per our contract. When Aberdeen and Boyd are in good rental situation, will re-finance. | June 16, 2007
| LeaderPost
- Regina Market May Get Even Hotter
LeaderPost
- Red Hot Market in Regina | May 30, 2007 7:38 PM | CITY OF SAINT JOHN, NEW BRUNSWICK
The economy of Saint John is expected to continue to grow as the city is undergoing many expansions in regards to natural gas plants and oil refinery. They currently have one oil refinery and have recently been approved for a second to be built in the next year, expected to bring more than 5,000 jobs to the city. The city population of 87,000 creates a friendly and happy environment as well as a demographic picture that is comparable to the smaller oil refinery towns in Alberta with a good population base in addition to new development. Our experiences in the city have proven it to be very safe. Our luggage was stored in the agent's car and even in the downtown area it was not necessary to scroll up the windows and we did not need to lock the car. According to the locals, the cost of living is very affordable despite having a standard of living as per the general rental apartments are much higher than those in Winnipeg, with the English descendants having their own style. There are many retired citizens living across town as well as many multi-unit rental apartments. We see a huge potential for future development yet to be explored; a hidden gem that is in reach. The city of St. John has a lot of water view properties that are still very affordable. One of our accepted offers has window views of the sea and another one pending for acceptance also has such a panoramic view. The latter has classic architectural detail, antique fireplace surrounds and many characteristics of the older days. It has much promise if we want to restore this to a better standard at a later date. We forecast a lot of potential in the area as rents are expected to rise, as well as property prices, once the second oil refinery is fully operating, One of our Management Committee Members has previously looked over this market and after over a month's search, she was frustrated to encounter all the non-cash flow property listings provided by another agent. She originally wanted to pull out of this market but I am glad that I specifically asked her to keep searching because I wanted a foothold in this market. She then continued to do so until we came across our current agent who understood our specific criteria regarding investment returns and was able to provide us with good cash flow properties. Another Committee Member, Peter provided me with reliable analysis during the decision process and is very open to entering this market. When I was in Saint John, the Agent gave me a couple of new prospects and one of them even got competing offers in. Not wanting to let go of the chance, I asked the agent to email Peter all the financial information and I called him to find out how much we can afford to offer. Despite losing the deal, the process allowed me to realize how efficient the team work would be on the road. What a change switching agents can make! You simply cannot believe how it is possible that one agent cannot find a cash flow property while another can produce so many opportunities. These two people used different strategies resulting in two completely different results for our future. This is an example of why I emphasize not to depend on only one agent. I am very glad to have entered into this market and I believe we shall be acquiring more. Getting ready for the financing is an essential task that needs to be done alongside searching for properties. We are looking at three or four deals on the table in the steps of financing and due diligence. Then I shall look into buying three or four $50,000 per bdrm unit new condos for equity investment in Saint John. The developers are offering 0% down and they are willing to pay the legal fees as well. These apartments are refurbished in a commercial area with nearby amenities including a big box theatre, a shopping centre, superstore and drugstore as well as an oil refinery. Although these are strong steps into the Saint John market, it is only a start. There will be many more exciting developments budding which will result in exciting opportunities for us all.
| May 31, 2007 10:15 PM | We are going to need a lot of money in Saint John, New Brunswick as two accepted offers are in the mid of receiving financing and another two ongoing offers are close to being accepted, we will be having at least four deals coming, plus another four to five future prospects. At the same time, we have two accepted offers in Winnipeg that are close to subject removal.
| | | We are trying to obtain 33 doors before the end of August! Here are the following locations the doors are needed at:
2 doors - Boyd Ave
2 doors - Aberdeen Ave 2 doors - Victor St 3 doors - new Winnipeg deal on Afred 2 doors - new Winnipeg deal on Maryland 5 doors - new Saint John deal on Spring city 6 doors - new Saint John deal on Main St (ocean view) 3 doors - new Saint John deal on Route 111 3 doors - new Saint John deal on St. James 5 units - 1 bedroom apartments each to be negotiated in Saint John Total: 33 Doors We are going to need a lot of money and are in the midst of arranging more information sessions! Even though each market has different potential, the cash flow requirement cannot be too low for long term holding. | | | Prince Edward Island This is a market that I give a lot of credit to; we are working on the prospects and are hoping to get some deals. Immediate Target Plan In-Brief Gain market entry into: 1st - Winnipeg 2nd - Saint John New Brunswick 3rd - Prince Edward Island, Summerside and Charlottetown 4th - Bathurst 5th - some Ontario cities |
Property Acqusition Progress | June 30, 2007 | Offer 420 Maryland, Winnipeg Duplex | Deposit Paid $200 Offer Accepted at $71,000 Appraisal value lower than offer price. Dropped the deal. | | May 11, 2007 | Offer 324 Alfred Ave. Winnipeg Triplex plus big lot with a vacant land to build a new house | Deposit Paid $2000 Offer accepted at $110,000 | | May 15, 2007 | Offer 49 McCamus Ave. Kirkland Lake, Ont | Deposit Paid: none Status: Dropped deal due to concern over weakening forsetry industry dictating rental market in the town | | May 11, 2007 | Offer 70 Mecklenburg St, Sant John, NB 8-plex | Deposit: Paid Status: to be withdrawn Offer Price: $135,000 Remark: property condition needs lots of fixing | | May 22, 2007 | Offer 566 Route 111 Road Willow Grove, Saint John, NB Tri-plex | Deposit: To be paid Status: offer accepted $138,000 Will arrange for mortgage, inspection... | | May 22, 2007 | Offer 96 Main Street, Saint John, NB 6-plex | Deposit: to be paid Status: offer at $111,000 in negotation
| | May 22, 2007 | Offer 56-58 Spring City, Saint John, NB 5-plex | Deposit: to be paid Status: offer at $137,000 in negotiation | | May 22, 2007 | Offer 78 St James St, Saint John, NB 3 Plex | Deposit: to be paid Status: offer at $108,000 in negotiation
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