January 2010

Nominees for Kitchener Waterloo Business Excellence Released

The Kitchener Waterloo Chamber of Commerce has just released the list of nominees for the annual Business Excellence Awards.

Congratulations to everyone who is nominated!

I want to specially recognize a number of my friend’s who are nominated, inlcuding Fiddleheads, Gowlings, Rick Baker, Kurt Wissent, Mandy Dennison, Jason Kipfer, Stemmler Meats, Nutrition for Learning, Mandy Dennison, Leo Tobi, Bingemans, City of Kitchener and Paul Demarco, among others.

I am grateful that our company Keller Williams is nominated for Business of the Year and for best Workplace Training. We are the only real estate firm nominated for excellence!

Essence of Renaissance 2010 Business Excellence Awards Gala

March 3, 2010

The Gala event of the year to recognize Greater Kitchener Waterloo Chamber of Commerce members who have made exceptional contributions through their involvement and leadership for the betterment of our community. 

Congratulations to the following nominees:

Business of the Year (Under 20 Employees)

Anytime Fitness
Keller Williams Golden Triangle Realty Inc.

Arbour Soft Tissue Centre
LawyerLocate.ca Inc.

Bulldog Fire & Security
Mindscape Innovations

Caudle’s Catch Seafood Ltd.
Prior Resource Group

Divine K-9, The Art of Dog Grooming
Seven Shores Urban Market & Café

Fiddleheads Health and Nutrition Inc.
Verses Restaurant

GeoSmart Energy Inc.
Xylotek Solutions Inc.

Business of the Year (Over 20 Employees)

CIBC
MTE Consultants Inc.

Covarity
Second Foundation Consulting Inc.

Eastforest Homes
TD Canada Trust

Gowling Lafleur Henderson LLP
Union Gas A Spectra Energy Company

KPMG LLP

Environment Award

Cartridge World
Residential Energy Efficiency Project

Enerliv Inc.
Stemmler Meats & Cheese Inc.

Enermodal Engineering Ltd.

Innovation Award

Agfa HealthCare
Manulife Financial

Christie Digital Systems Inc.
Maplesoft

DALSA Corporation
The Children’s Museum

Drayton Entertainment
UW School of Pharmacy

KW Symphony

Michael R. Follett Community Leader Award

Rick Baker
Jane Jantzi

Brian Bazely
Gerry Remers

Machelle Denison
Rosemary Smith

Barbara Hill

Non-Profit/Charitable Award

Kitchener and Waterloo Community Foundation
Volunteer Action Centre

Leadership Waterloo Region
Waterloo Wellington Flight Centre

Nutrition for Learning
YMCA of Kitchener-Waterloo

United Way of Kitchener Waterloo

Volunteer of the Year Award

Mandy Dennison
Rob Sonada

Neil Doran
Leo Tobi

Jason Kipfer
Don Wales

Julie Langham

Waterloo Region Immigrant Employment Network (WRIEN) Award

Christie Digital Systems Inc.
Focus for Ethnic Women

City of Kitchener
The Walter Fedy Partnership

Workplace Training Award

Advocate Insurance Group
Keller Williams Golden Triangle Realty Inc.

Bingemans
Lutherwood

Grand River Hospital
Workforce Planning Board

Young Entrepreneur of the Year Award

Benjamin Bach
Lina Shamoun

Paul Demarco
Kurt Wissent

Kandas Hilker

Congrats to everyone!

Waterloo will not vote on amalgamation, as per Council

Some disappointing news out of last night’s Council meeting in Waterloo – our elected city councilors think its best to not ask the citizens our opinion.  Hmmmmmm…..   Regardless of if you’re a pro or con on amalgamation, shouldn’t the voters get to debate and decide?

Waterloo votes down merger question

By Brent Davis, Record staff

WATERLOO — The prospect of merging the cities of Kitchener and Waterloo may have died Monday night with Waterloo council’s decision not to ask for a referendum on the issue.

After hearing from several delegations — most of whom spoke against the idea — and speaking passionately about the issue themselves, councillors ultimately defeated the motion in a recorded vote.

A group of more than 60 local business and community leaders asked Waterloo and Kitchener to seek permission from the provincial Minister of Municipal Affairs to hold a referendum in this fall’s municipal elections.

The question the group proposed is: “Would you support members of council engaging in a dialogue about the merits of merging Kitchener and Waterloo? Yes or No?”

Kitchener council has already voted in favour of the move.

Two weeks ago, Waterloo asked for more time to consider the issue. Last night, Mayor Brenda Halloran and councillors Mark Whaley and Ian McLean voted for the motion. Voting against were councillors Scott Witmer, Jan d’Ailly, Karen Scian, Angela Vieth, and Diane Freeman.

Freeman said the issue had been considered and rejected several times in the past, and only served to divide the community.

“We say things about each other that are hurtful and that are destructive,” she said.

Halloran, on the other hand, said it was necessary for the citizens of Waterloo to have their say.

“How do we move forward if we don’t allow people to have a voice?” she asked.

Prior to the vote, council heard from several members of the public.

“There is no groundswell of support from either the citizens of Kitchener or Waterloo,” argued Stan Rektor.

Several people voiced their concerns about differences between the two cities, especially when it comes to conflicting approaches to environmental preservation and urban development.

Rosemary Smith, executive director of the Kitchener and Waterloo Community Foundation, and a member of the group advocating for merger talks, had urged council to pass the motion.

“I believe it is a discussion we must enter into in earnest,” she said. “Help us set the stage for an important conversation about our future.”

After the vote, Smith expressed her disappointment with the results, but said there was still work to be done.

“The citizens of Waterloo have not yet spoken, and until they do, I think it’s still alive.”

I am in favour of the referendum; what do you think?

Bauer in Waterloo filled, Cambridge place still half empty

There is a very interesting article in The Kitchener Record this morning about the night and day differences between the Waterloo and Cambridge real estate markets for Office space, as well as industrial space. 

While many people are excited to live in the Bauer Lofts, there is also prime commercial space next door in the historic Bauer building. This space was leased very quickly, while similar space in Cambridge is still sitting empty.

Note: the vacancy rates mentioned in this article are for the commercial markets, specifically the vacancy rate for office buildings.  The residential vacancy rates remain very low in Kitchener Waterloo and Cambridge, Ontario (read: “Waterloo Vacancy Among Canada’s Lowest”)

WATERLOO REGION — To paraphrase Charles Dickens, it was a tale of two buildings.

While vacant office space was snapped up quickly in the new Bauer Buildings development in downtown Waterloo when it came on the market in the middle of last year, Cambridge Place remains half empty nearly two years after the city vacated the building for its new city hall.

The fate of the two buildings reflects sharp differences in the local office market among the three cities in Waterloo Region at the close of 2009.

With a vacancy rate of 11.5 per cent, office space is scarce in Waterloo. With a rate of 28.5 per cent, anyone looking for desk space in Cambridge can strike a pretty good deal. Aided by spillover from Waterloo, Kitchener falls roughly in between at 17.5 per cent.

Cambridge also has the smallest supply at 800,000 square feet, compared to 2.5 million in Kitchener and 2.1 million in Waterloo.

By year’s end, the office vacancy rate for the region stood at 16.5 per cent, up 1.7 per cent from the previous quarter.

Those figures were presented today during a seminar on the local commercial and industrial real estate markets hosted by Colliers International.

With “great amenities” such as the Vincenzo’s food store, the Bauer Lofts condos and ample parking of four spots per 1,000 square feet of space, the Bauer Buildings quickly attracted such tenants as CIBC Wood Gundy, BDO Dunwoody and Moxy Media, said John Lind of Colliers. “It was a real success story.”

Parking was a key factor. The Allen Square building across the road at 180 King St., with 2.5 spots per 1,000 square feet of space, still has empty space. In parking-starved Toronto, this space would be snapped up quickly, noted Dave Young of Colliers.

Meanwhile, Cambridge Place has 50,000 square feet begging for occupants. The owners may have no choice but to convert the building into other uses, said Karl Innanen, managing director of the local Colliers office.

Also swelling vacancy rates in Cambridge is an ample supply of office space along Highway 401 built prior to the recession, he said. Developers erected this space on spec, without lining up tenants beforehand.

Building conversions are another success story and a growing trend, he said. The old Lang Tannery in downtown Kitchener is being redeveloped with a mix of uses including office, restaurants and specialty retail. It has already attracted tenants such as the Digital Media Convergence Centre, Desire2Learn and the Downtown Community Health Centre. Innanen called this a “villaging of space.”

Fuelling demand for this project are key neighbours such as the University of Waterloo School of Pharmacy and the area’s designation as a future transit hub, he noted.

While Waterloo rules the office market, the opposite is true in industrial real estate. Cambridge dominates with an inventory of 30 million square feet, following by Kitchener with 21 million and Waterloo with 10 million. Waterloo is hurt by its distance from Highway 401, Innanen said.

Still feeling the effects of the recession, the industrial vacancy rate in the region nearly doubled from 4.9 per cent in 2008 to 8 per cent in 2009. While the market took a shock, with the rate still below 10 per cent, “it’s still not horrible,” he said.

Among the three cities, Cambridge has the highest vacancy rate at 8.6 per cent, followed by Kitchener at 7.6 per cent and Waterloo at 7.4 per cent.

Sometimes, one large building can skew the numbers. In Kitchener, the former Kaufman warehouse at 137 Glasgow St. remains empty. At 350,000 square feet, it boosts the rate by 1.7 per cent all by itself.

While smaller buildings have been faring well during the recession, larger ones above 25,000 square have not, victimized by the weak economy and high Canadian dollar.

Own Investment condos? Look at the Home Renovation Tax Credit

Most people associate the Canadian government’s Home Renovation Tax Credit (or HRTC) with detached family homes and larger properties; rarely do they think about the investments they own, or if they do, the investment condos. 

What is the HRTC? 

In the government’s own words:

Under proposed changes, the HRTC is a non-refundable tax credit based on eligible expenditures incurred for work performed, or goods acquired, after January 27, 2009, and before February 1, 2010, under an agreement entered into after January 27, 2009. The HRTC can be claimed when filing your 2009 tax return.

The HRTC can be claimed for renovations and alterations of an enduring nature and that are integral to the eligible dwelling (such as your home or cottage) or the land that forms part of the eligible dwelling.

How is the HRTC calculated?

The 15% non-refundable tax credit can be claimed on eligible expenditures of more than $1,000 but not more than $10,000. The maximum tax credit that can be claimed to reduce your federal income tax is $1,350. However, if the total of your non-refundable tax credits is more than your federal income tax, you have no federal income tax to pay, and you will not receive a refund for the HRTC.

If you haven’t looked at how your ownership on Condominiums will benefit you come tax time, you should ask your accountant.  More info from the The Toronto Star here:

Condo owners can claim a portion of improvements made to their building between Jan. 27, 2009 and Feb. 1, 2010, as long as they were at least partially responsible for paying for the upgrades.

Here’s how it works:

Assuming each condo owner pays a monthly fee to a condo corporation, repairs or renovations completed and paid for with that money should count toward the HRTC. The condo corporation is simply paying for these goods and services on behalf of all of the unit owners.

Condo corporations are unable to claim the credit because it is available only to individuals, so it’s up to each person to claim his or her portion.

Therefore, on their 2009 taxes, condo owners can claim the credit for renovations to their own unit – similar to what would be done in a detached home, for example – as well as their share of any renovations to common areas paid for by the condo corporation.

This could include anything from new windows installed in your building to a redesigned lobby area or improved landscaping.

Add these shared costs with renovations you may have done to your individual unit (bathroom or kitchen upgrades, new fixtures, painting) and you could significantly increase your credit.

Canada Revenue Agency guidelines for condo owners indicate that improvements made to common areas will qualify if:

– You own your unit. Renters are out of luck, even if they pay similar monthly fees.

– "The expenses would be eligible expenses if the common areas were treated as an eligible dwelling" – if new furniture wouldn’t count in a detached home, it won’t count in a condo either.

– Your condo corporation has notified you of your share of the expenses.

As a reminder, the tax credit applies to renovation costs over $1,000 and under $10,000, so if you spent a few hundred dollars on your own unit and the condo corporation spent a few hundred more on your behalf, that may be the difference between getting a return or not.

Contact your condo corporation today and ask them for a report on your proportional share of work done to the complex. If you own several investment condos, your savings can be substantial. 

For more info on investing in a condo in Kitchener Waterloo, Ontario, contact me at 519.772.4376 or send me an email today

Flaherty to public: Hold on, I’m thinking, watching and monitoring real estate market

Canadian Government still looking at shorter mortgage amortizations on real estate purchases, but no indication of decision yet

So much talk, so little action.  Typical of a government, so I probably shouldnt be surprised

On December 22 I wrote Flaherty comments further on Canadian Real Estate and Mortgages and on Janaury 13 I reported in What is the Bank of Canada doing with mortgage rates? that Flaherty was still looking at what to do.

Today comes news that… drum roll please… Jim Flaherty is still “watching and monitoring” the real estate market in Canada 

“As you know, we took steps a year or two ago to require at least a 5% down payment and to restrict the amortization period for insured mortgages but we’re watching that. Low interest rates obviously are having an effect on the strength of the housing market in Canada," he said, warning "people have to make sure that the mortgages they take out today either have a fixed rate or they know that they’ll be able to handle increases in that mortgage rate later on."

CIBC World Markets senior economist Benjamin Tal says the bigger issue for consumers would probably be an increase in downpayment as opposed to a change to amortization schedules. Even though half of mortgage origination is said to be going for a longer amortization, Mr. Tal issued his own report that shows 40% of Canadians opt to make an extra month’s worth of payments each year.

Called accelerated bi-weekly payments, consumer make payments every two weeks instead of twice a month and the impact is considerable. "On a $250,00 mortgage with 5% rate amortized over 30 years, that works out to a de facto shortening of the amortization period by five years," says Mr. Tal, adding if rates rose by 75 basis points, consumers could absorb the increase by simply stopping the accelerated payments.

Mortgage credit was up about 7% year over year when Mr. Tal wrote his report but he thinks dramatic changes to downpayment levels and amortization are not necessary at this point. "Be careful you don’t kill a fly with a hammer. You could derail the housing market for no good reason," says Mr. Tal.

In real estate circles, many privately grouse about Mr. Flaherty’s overreaction to an improved housing market that still fell well short of records set in 2007. "You don’t want to see anything that affects the ability to purchase," says Gary Friend, president of Canadian Home Builders’ Association. "You make changes and in a place like Vancouver where I am, it could have a significant effect. At the same time we respect the need for prudent credit conditions and smart borrowing."

What do you think – should the government further tighten the regulations around minimum downpayments and amortizations? Let me know by leaving a comment below

What Student Rental apartment buildings can you buy in Waterloo?

…and what return will you get on your money by investing in these student properties?

This is something I’ve been asked a lot recently, especially with the news that CMHC is now back in the student rental financing game.

In this video, we look at a 180 bedroom property that an investor is considering near both Universities in Waterloo. It is brand new, in a great location, and fully leased at favorable rates.

If you’re interested in buying, selling or developing a student rental property in Kitchener Waterloo, I’d love to talk to you.  Call me at 519-772-4376 or email me for a complimentary no-obligation investment consultation

PS – Make sure you’re following our updates here http://twitter.com/BenjaminBach

CMHC *finally* returns to Student Housing Rentals in Waterloo

The day is upon us.  Many of our clients have been waiting for this since 2008, when the tap of money for student rental properties seemingly dried up. CMHC stopped insuring loans on this asset, and when CMHC gets out of the game, banks tighten up their available financing terms and start looking for much larger down payments, shorter amortizations, and higher fees.  Yuck

Well, CMHC (Canada’s Mortgage and Housing Corporation) announced a new program, creatively titled CMHC Multi Unit Student Housing.  Watch the video embedded below for details on what CMHC is looking for before loaning you money to buy, refinance, or develop a student property

Some notes:

This program is for refinance, take-out, construction& new purchase loans for purpose built student housing projects “located on campus of within walking distance” from the universities (WLU, Conestoga College & University of Waterloo if you’re investing in Kitchener Waterloo).  CMHC will insure up to 85% of their lending value, which depending on the asset, will probably be between 70% and 80% LTV of the purchase price.  There is the option for fixed interest rates or a floating rate with a ceiling. Second (or pari passu) mortgages are permitted on title (presumably with CMHC and lender in 1st positions permission).

Additionally, CMHC wants to see that the borrowers have a track record of running similar projects, and in the case of a construction or development loan, that the borrower has the personal net worth to sustain the debt payments (mortgage) for a full year, in the case that the property isn’t completed for September and sits vacant (not a pretty scenario, and rare with an experienced developer).

For construction loans, CMHC will advance up to 75% of the value or cost during construction, and increase the loan to an 85% LTV (of lending value) once the property is complete and the rental income stabilizes.

If you’re interested in how you can get into the student rental market, contact me at Benjamin@BenjaminBach.com or 519-772-4376. I’d love to sit down with you for a free, no-obligation consultation. 

PS – Make sure you’re following our updates here http://twitter.com/BenjaminBach

Local Real Estate agent guesses Street, so more Money is going to Haiti

Congratulations to Laura Munroe, a realtor at royal lepage here in Kitchener Waterloo, Ontario who correctly guessed the street pictured on page 2 of the pdf (or page 30 of the magazine) in ‘Kitchener Waterloo profiled in Canadian Real Estate mag’s “Areas Set To Boom”’.  The picture was taken in front of a rental property one of our clients owns on Royal Fern street, in Waterloo’s Columbia Forest area. Other guesses were Edgewater Estates, Columbia Street, Laurelwood, Clair Hills, and Columbia Forest Blvd.  Some of those are close, but Laura’s answer was right!

I’m glad to donate $100 to relief efforts in Haiti, and I’m THRILLED that Kurt Wissent, from Premier Homecare Services in Kitchener Waterloo has offered to match my $100; so, Laura, you’ve caused $200 to go to relief efforts in Haiti. Thank you, and thanks to everyone who participated.  I really do appreciate you all

Kitchener Waterloo named in “Areas Set to Boom” by Canadian Real Estate mag

The recent issue of Canadian Real Estate magazine has a profile of Kitchener Waterloo, Ontario in the cover story on Areas set to boom. There is a lot of great content in it.
CRE-Feb

A Cambridge perspective on Kitchener Waterloo’s amalgamaltion

The following is a guest post by Vince Jelenic. You can find his contact info at the bottom of the piece.  These views represent Vince’s opinion; if you’d like to share yours, please contact me.  This post originally appeared at More on Kitchener Waterloo’s possible Cambridge-less amalgamaltion

Hi, I’m Vince Jelenic, a resident of Cambridge, and owner of a local business called Green Spot Antiques – TwoJJs.  Benjamin asked for some of my thoughts on the recent talks about the possibilities of  Kitchener & Waterloo municipal amalgamations.   My viewpoint is one of a general resident of the region, and I claim no expertise or special interests.

The fact that two municipalities such as Kitchener & Waterloo (KW) would at some point amalgamate is a given, or almost.  As an outsider when I travel to KW I see only one city.

When I was a child, my mother used to clean houses for wealthy Toronto residents in the Avenue Rd & St. Clair area.  I remember how when we got to ALMOST our destination, there would be a second ticket to pay on the streetcar.  There was this invisible line somewhere on the road, and if we crossed it , it cost more.  Sometimes on nicer days, we would “choose” to walk the few extra blocks. That extra ticket line functioned as a reminder how the two sections of town were connected, but quite distinct, both in terms of wealth, provenance, and services. 

In KW today, there is still a two-ticket zone mentality but in the end it is the consumer who pays – each citizen.  There are many areas where rationalizations and savings could be obtained through amalgamation, and even standards of service raised to equivalent standards.  This is a good thing.  Toronto outgrew it’s two-ticket zones years ago,  KW should too.

Recent talks have indicated how Cambridge, the third partner in this Region of Waterloo, is not to be privy to these talks.  I understand this is by choice and by design.  We, in Cambridge have been very reluctant interlocutors with regards to amalgamation of our municipalities. 

While some of it may be due to the fierce pride of local residents, and their ties to history, I think it is more due to the “marginalization” rationale. We are at the “ends of the earth” for the Region, at it’s borders, so to speak.

We sit on the outskirts of Waterloo Region  — with our City Hall in Galt, the southernmost part of the three municipalities. So let’s call us “outskirters”, just for fun.

We, in Cambridge, are also made up of three smaller village cores, each with it’s own sense of history, and there are internal struggles within our own municipality for services. Witness the previous debates on  the “proper” placement of our new City Hall .

For Kitchener, was there ever a doubt as to where their new City Hall should be?   Yes, give or take a block, perhaps. Kitchener has a downtown; we don’t -not really. 

And that is the problem of “critical mass” which Cambridge has to live with.  As part of the Region, we can very seldom benefit from new initiatives because we cannot bring critical mass to the table of needs and benefits. We have a tough time doing that even within our own municipality. 

Most services are built from Hubs, made sustainable, and then extend outwards to reach all an area’s citizens.  Cambridge will never be the Hub of this Region.  We know that, and fear it.

A KW amalgamation puts Cambridge in the very disadvantageous position of now dealing with a true HUB mentality up north of the 401, an economic powerhouse..  While Cambridge is oft-times under represented today in Regional Government, we can only imagine that representation being further eroded in the “new Region” with KW amalgamated.

In all countries, “outskirters’ are often the last to benefit from the gains of their economy. It is a natural occurrance due to fiscal and resource restraints.  On the other hand, outskirters are first to be courted to by the neighbours.  Of course, both parties, would love the free flowing tax dollars from the “outskirters” for their own. 

As an immigrant from a border area I know that feeling well. I come from Istria, a peninsula close to Trieste, Italy, and our conquerers (friendly neighbours) have changed a multitude of times since before the early Romans. A fiercly proud populace in a veritable “no man’s land”. 

If we look at Cambridge geographically, and culturally,  we probably have more in common with our southern neighbours such as Paris& Brantford,  than we do with Waterloo or Kitchener today. In terms of distance, both are closer to Galt than Waterloo is, for example. Perhaps a KW amalgamation is a good thing, it may help Cambridge reconsider it’s struggles with the north and make us concentrate on increasing our collaborative efforts with the south. 

While the Region markets Waterloo & Kitchener to the world, and the HUB of activity grows with leaps and bounds to the north of us, perhaps we can make OUR little neck of the woods a more pleasant place to live.  So much so that the go-getters from Waterloo will consider Cambridge a prime place to reside, even if they have to work in Waterloo. They may even take comfort in our historic downtown and river settings. 

Cambridge has a choice here: either remain an “outskirter” in Waterloo Region, facing a tougher and larger opponent to the north, or become a HUB of it’s own for a different concept of growth.  

We are a small town.  We should stop acting like a big city.  So far, in doing so, we’ve not only lost our identities, our downtowns, but also our shirts – our economic drivers.

I believe KW amalgamation will have the effect of finally putting the roaring Cambridge dog to rest so that it concentrate on it’s own house a little more and make it a more lively and comfy place.

However, it should be kept in mind that within the Region, “taxation without proper representation” will lead to larger problems later.  There are many instances where the “centralization” or “regionalization” of services has lead to a total disregard for Cambridge interests. To continue down that path during a KW amalgamation period would only add obstacles in the way of a productive change.

So, yes, please leave Cambridge out of it. It’s best for all parties. There is much to be said in recognition that one’s place in a partnership will not actually lead to profit.  It puts a stop to wasted energy. 

Cambridge is full of energetic people, and is a great community.  It just might begin to concentrate on itself more. 

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