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Wednesday, May 25, 2011
Want to Become a Landlord?
Categories:Real Estate Investing
Want to Become a Landlord?
Fixing up a basement suite or buying a duplex to rent out may seem like an easy way for your clients to make money-but it’s harder to be a successful landlord than you think.
1. Is it a money-maker?
If you’re looking to buy a rental property, first ask yourself two questions: How much will it cost me? And what will it rent for? Get a realistic assessment of current rental rates and don’t skimp when estimating expenses. They include the mortgage, maintenance, insurance and taxes. If you find expenses will consume all your rental income, forget it. "I wouldn’t settle for a property where I’m just paying down the mortgage," says David Southen, who owns over 100 rental units in Ontario. "I need to get paid now."
2. Get your legal issues in order
Too many small landlords consider themselves passive investors rather than business owners, says Harry Fine, president of Landlord Solutions paralegal service in Toronto. "You need to understand the law, and it can be very complex," Fine says. Prospective landlords must take the time to understand all their legal obligations, ensure the property is legal to rent and prepare a solid lease.
3. Find the right tenants
First the good news. Advertising for tenants is getting cheaper. Southen says he’s stopped paying for newspaper ads and now uses Kijiji.com exclusively. But three checks are still crucial for every potential tenant: a credit report, employment verification and a call to previous landlords. Ideally, you should avoid calling current landlords, as they might stretch the truth to rid themselves of a difficult renter. "Anyone who is not making all three checks is out of their mind," says Southen.
4. Keep your tenants happy
Southen budgets $800 a year in routine maintenance for every unit he owns. And when something breaks, he sends someone to repair it ASAP. "You need to be responsive, because if a good tenant moves out, it costs you a lot of time and money to replace them." Cutting down on tenant turnover is his secret weapon for a successful career as a landlord. Whenever a unit becomes vacant, he always re-paints and often re-carpets. "If you keep the place maintained, you will get a better quality of tenant."
5. Take prompt action on bad tenants
For small landlords with one or two units, a single bad tenant can be devastating. Fine says a quick and aggressive response is necessary to limit the damage if a tenant stops paying rent or damages the property. "You can’t wait three months and hope the problem goes away," he says. While tenancy law varies across Canada, some savvy tenants know how to game the system for extended rent-free stays. This can mean substantial extra expenses for landlords, as well as lost income.
By Peter Shawn Taylor | From MoneySense Magazine
Wednesday, May 25, 2011
Calgary Downtown Condo Market Surprise
A Chinese oil company has given the Calgary downtown residential condo market an unexpected boost in sales.
Tuesday, May 17, 2011
Canadian Pension Plan BUYS More Real Estate
Canada Pension Plan buys into foreign shopping malls
A few months back the CPP bought some prime Austrialian Real Estate. Now they purchased more than $700 Million dollars worth of Shopping Malls in the US and Germany.
Nice work !!
Tuesday, May 17, 2011
Alberta moves to Regulate Home Inspections
The Home Inspection Business Regulation, passed by the provincial cabinet on May 11, 2011 requires that inspectors be licensed and that they carry $1 million in errors and omissions insurance and post a $10,000 security to cover consumer losses if they fail to do their jobs.
The new regulation also bans contracts that limit liability, establishes minimum qualifications and allows for prosecution under the Fair Trading Act with a maximum fine of $100,000.
We at MyHomeAgent haven’t read the legislation but we are hopeful it achieves uniformity and accountability in the industry.
Read more: Alberta moves to regulate home inspections
Tuesday, May 10, 2011
5 Reasons You Should Buy in Calgary Now
We are still experiencing historical lows with lending rates. It cannot continue indefinitely and they have nowhere to move but up. Don’t get caught wishing you could have the best rates when they are available right now!
2.) Strong Economic Indicators in Alberta
3.) It is STILL a Buyer’s Market (for Now)
There are a lot of great opportunities in the marketplace right now. This will change as the economic market keeps improving. Soon the great deals will have passed you by because....
4.) People are moving to Alberta
We at MyHomeAgent have our ears to the ground and are contacted daily by people moving here from out of province. This will impact housing inventory because some landlords will not sell their homes any longer ( since rents will increase). Less homes for sale will mean higher demand for housing and prices will increase.
5) Downpayment Help is available
There are numerous programs available RIGHT NOW that allow people with little or no downpayment to still buy a house in Calgary. These programs will not last forever. Remember you still have to be able to qualify but in many cases you can get a house with zero down.
Don’t wait to BUY. This ‘sweet spot’ of buying opportunity will pass – its just a matter of when.
Sunday, May 8, 2011
Calgary Unemployment Rate Drops in April
Encouraging economic indicators continue in Calgary. Do you know anyone looking for a job? It’s going to start getting very competitive with large competition for job opportunities
Another indicator suggesting a healthy Real Estate Market moving into the next 5 years.
Calgary Region Unemployment Rate Dips in April
Katrina Harland, marketing manager for the soon-to-be-opened Craft Beer Market on 10th Avenue S.W., says the restaurant and pub will hire about 100 staff.
Photographed by: Grant Black, Calgary Herald
CALGARY — Calgary’s unemployment rate dipped in April, according to Statistics Canada.
The federal agency reported Friday that the unemployment rate in the Calgary census metropolitan area dropped to 5.9 per cent during the month from 6.1 per cent in March. It was 7.6 per cent in April 2010.
Statistics Canada said employment grew in the Calgary CMA by 800 jobs from the previous month and has also increased by 16,600 jobs compared with April 2010.
In Alberta, the unemployment rate rose to 5.9 per cent from 5.7 per cent as overall employment fell by 4,200. However, on a year-over-year basis employment was up by 58,600 jobs in the province. The province’s unemployment rate in April 2010 was 7.6 per cent.
The Conference Board of Canada’s Metropolitan Outlook Spring 2011 forecast annual employment growth in the Calgary CMA of 3.0 per cent this year followed by 3.8 per cent in 2012, 2.4 per cent in 2013, 2.1 per cent in 2014 and 1.8 per cent in 2015. Meanwhile, it predicted the region’s unemployment rate to dip to 5.7 per cent in 2012, 5.3 per cent in 2013, 4.7 per cent in 2014 and 4.5 per cent in 2015.
In Alberta, the conference board forecast employment growth of 2.2 per cent this year, 3.0 per cent in 2012, 2.2 per cent in 2013, 2.1 per cent in 2014 and 1.9 per cent in 2015. It also predicted the unemployment rate in the province to fall to 5.8 per cent in 2012, 5.3 per cent in 2013, 4.8 per cent in 2014 and 4.5 per cent in 2015.
Read the Full Story: http://bit.ly/mI9kPJ
Sunday, May 8, 2011
Hottest Economies: Calgary, Edmonton, Regina, Saskatoon
More Great News for Calgary. We are looking at steady ecomomic growth for the next 5 years
Hottest Economies in Canada are in Calgary, Edmonton, Regina, Saskatoon
Calgary’s economic growth is expected to be 3.4 per cent this year, according to the Conference Board of Canada.
Photographed by: Dean Bicknell, Calgary Herald
CALGARY — Four cities in Saskatchewan and Alberta will occupy the top four spots in the economic growth leaderboard, according to the Spring 2011 edition of The Conference Board of Canada’s Metropolitan Outlook released Thursday.
“Buoyed by the resources and energy sectors, the economies of Saskatoon, Calgary, Regina and Edmonton will post noticeably stronger growth than the other cities covered in this report,” said Mario Lefebvre, Director, Centre for Municipal Studies, for the board.
The report said Saskatoon and Regina are benefiting from strong resource development in the province, while healthy population growth is bolstering the housing markets in both cities. The medium term outlook is also bright, with both economies expected to grow at an even faster pace. Saskatoon’s economy will expand by 4.1 per cent this year, and is expected to remain among the CMA growth leaders through 2013. Regina’s real gross domestic product (GDP) is slated to rise by 3.1 per cent this year.
“A promising outlook for the Alberta energy sector will be a boon for the Calgary and Edmonton economies. Calgary remains the services hub for the province’s energy sector and is forecast to post the second strongest economic growth rate (behind Saskatoon) at 3.4 per cent this year,” said the report.
It also forecast Calgary’s economic growth rate to average 4.1 per cent between 2012-2015.
The conference board said the city’s economy rebounded in 2010, with real gross domestic product growth coming in at 3.2 per cent.
“While output growth was strong in many sectors, the manufacturing, transportation and warehousing, and wholesale and retail trade industries posted the most impressive gains,” said the conference board report. “In 2011, activity in the goods sector is poised to improve once more, mainly thanks to continued strength among local manufacturers.
“Meanwhile, growth in the services sector is expected to be about the same, with fairly solid consumer spending again providing a lift to total services sector output.
The conference board said energy prices, which have strengthened considerably since the end of last year, are expected to stay strong over the next few months.
“As a matter of fact, oil and gas prices are poised to remain above their historical average over the rest of the forecast horizon (2011 to 2015), further stimulating activity in the oil patch,” it said. “As a result, investment in energy-related projects is projected to remain vigorous in Alberta. The latest estimates show that about $14.2-billion worth of energy-related projects are now under way in the province. Another roughly $39.1-billion worth of new development has already been announced, while more than $49.7-billion worth of oil and gas projects has been proposed for the future. All of this bodes well for the province’s energy sector outlook over the entire forecast period.”
All this investment will be a blessing to Calgary’s economy, which remains the services hub of the province’s energy sector, added the conference board.
Although the energy sector will bolster Edmonton’s outlook, real GDP is forecast to increase by 3.1 per cent in 2011, down slightly from its 2010 pace and due to more moderate growth in the construction, manufacturing and services sectors.
The other cities considered in the study include Halifax, Quebec City, Montreal, Ottawa-Gatineau, Toronto, Hamilton, Winnipeg, Vancouver and Victoria.
Full Story: http://bit.ly/jZuS7e
Sunday, May 8, 2011
Alberta Housing Market Looks Awesome
Is Calgary Real Estate headed for another BOOM? Not likely but the strong economic indicators bodes well for Real Estate. See below for the article by Mario Toneguzzi:
Employment growth to help Alberta housing demand
Sales to rise at modest level this year: Economist
Warren Jestin, senior vice-president and chief economist with Scotiabank, says housing sales in Alberta will rise at a modest level this year.
Photograph by: Stuart Gradon
CALGARY — Improving economic conditions and employment growth will lead to Alberta’s recovery in the residential real estate market, says a national economist.
Warren Jestin, senior vice-president and chief economist with Scotiabank, who was in Calgary Wednesday, said housing demand in the province is underpinned by rising employment and incomes, low borrowing costs and population inflows from other parts of the country.
“Overall, we anticipate a modest pickup in home sales this year, and relatively flat average prices,” he said. “Still, this would leave sales roughly 30 per cent below the unsustainable record levels of 2006-2007.”
He said the province will experience a gradual recovery.
“Certainly the fundamentals in terms of the demographics of the economy are very, very solid,” said Jestin. “You’re inevitably going to find that mortgage rates are going to be on the rise. Short-term interest rates are going to be going up by the fall. Longer term interest rates have already begun to go up. But at the same time the economy is near the top of performance across the country and we think it’s going to stay there in the next two to three years.”
He said market conditions are gradually shifting from favouring buyers to one of greater balance, which should support home prices going forward. High home prices, rising mortgage rates and tighter mortgage lending rules will pinch affordability, especially for first-time buyers. And he said more affordable property segments, including condominiums and lower-priced single-detached homes will likely be more active than the high-end of the market.
Ted Zaharko, broker/owner of Royal LePage Foothills in Calgary, said the long winter has held back buyers in the local market.
“What we’re seeing now is that we pretty well bottomed out. It’s taken us two years to recover from that huge spike and it’s been very gradual,” said Zaharko. “And I just see things picking up slowly over the balance of the year and we’re going to have more of a balanced market for a lot of the year.
“I think you’re going to see activity on the buyers’ side and it could move to sellers’ market somewhere in the next nine to 16 months. That’s the beginning of the next cycle. That’s healthy. We’ve been in a down cycle for some reason in Alberta for a long time.”
Wednesday, May 4, 2011
Alberta Small Business Confidence Highest Since 2005
According to the National Post, Alberta is a great place in the coming years. As we all know, small business contributes to driving our economy.
We know that Calgary Real Estate will continue to benefit from this. Call us today to discuss the best strategies available for you.
Wednesday, May 4, 2011
Calgary Market Watch May 2011
Categories:Calgary Market Trends
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