February 2010

Tight Real Estate Market in Kitchener Waterloo

Property listings are down 33% at the end of January, compared to last January – there are less homes available for sale, and we have more demand from buyers and investors.  Many people are trying to take advantage of historically low mortgage interest rates, and others want to buy and invest before the mortgage changes coming in April

We’re seeing some properties selling for $10,000+ above list price in multiple offer situations; 

There are units and buildings available that are good real estate investors, ranging from $125,000 to several million dollars.  Contact me for full details, and a cash flow & return on investment analysis

If you are looking to buy, sell or invest, send me an email or give me a call.

Canada Olympic Team Makes History in Vancouver 2010

Taking a short break from Real Estate –a quick one, I promise – I want to draw attention to the amazing day our Canadian athletes had in Vancouver today.

I once joked that I preferred watching American coverage of the Olympics over Canadian television because it seemed like all the US channels showed was never ending stream of American athletes winning medals, and ours was a little more… tame.  Today wasn’t like that.  Today Canada silenced a lot of critics, with some amazing performance that brought in 4 medals. 1 gold, 2 silver and 1 bronze. 

Gold medalists – Heather Moyse and Kaillie Humphries. Women’s “2 man” Bobsled. 

Local KW connection: Heather is a University of Waterloo graduate!

Heather missed winning a medal by .005 seconds in Turin at the 2006 games, and it inspired her to come back. 

“Five one-hundredths is what made me come back to bobsledding ,” she said. “I guess I have to be thankful for that five one-hundredths because a gold in a home country with Kaillie is better than a bronze in Turin.”

Never give up – just keep trying!  I only saw their last run, but they owned the track all night.  I’m very proud of them.

Silver Medalists:

Helen Upperton and Shelley-Ann Brown, also in the women’s bobsled.  This is the first time Canada has won 2 medals in the same event (I think)

Women’s 3000m relay – Finished third, but upgraded to silver when the Korean team was disqualified

Bronze Medal – and my personal favourite at these games so far – Clara Hughes in the 5000m speedskating

This is Clara’s 6th olympic medal, and she is the only Olympian, from any country, to have won multiple medals in both the summer and winter games.  Pretty impressive, eh?

And to top it all off, Team Canada edged out a close game with the Russians 7 – 3

All in all, a great day. Go Canada Go!

Centre Block to bring $95 million development to Kitchener downtown

Exciting news this week about a new development in downtown Kitchener, on the Centre Block land that the city has acquired over the past 10 years at a cost of about $13 million.  From The Record:

During a closed-door meeting councillors gave their final authorization to staff for an agreement between the City of Kitchener and Brampton-based Andrin Homes for the redevelopment of Centre Block with 385 condominiums, four new buildings, underground parking, a boutique hotel-spa and a parkette.

“It has been a long time coming, obviously,” Mayor Carl Zehr said.

By 2000 the city had purchased almost all of the properties and buildings that wrapped around the western half of the block, which is bounded by King, Young, Duke and Ontario streets. So far the city has spent about $13 million on all of the costs associated with buying the land, buildings and businesses.

Andrin gets the 2.6 acre site and two heritage buildings for $3.1 million.

Many people wonder how the city got into the land assembly business.  Turns out, it’s an interesting story…

[Carl Zehr] has held the mayor’s chair for 13 years and Centre Block has been an issue for at least 10 of those years. Looking back on it now, Zehr said the city never wanted to get into the business of assembling the land and attracting a developer.

It started when someone called Zehr saying a cinema for porno flicks was about to open on the second floor of a building along the King Street stretch of Centre Block. City councillors quickly rezoned the land to prevent that from happening, and the owner sued. The settlement had the city buy the building and compensate the owner for the loss of his business.

He said the entire council deserves credit for taking the long-term view of Centre Block.

Under the terms of the development agreement, Andrin must take out building permits for the first phase by Nov. 30, 2012. The first phase includes an underground-parking garage, a condo building with about 240 units and a three storey building. Those buildings will be on King Street.

The second phase calls for another condo building, with about 140 units, at the corner of Young and Duke streets with another building that wraps around that section of the block.

The third and final phase includes the development of the Mayfair Hotel into a boutique hotel-spa. The city, development and some downtown property owners are looking for ways to advance the redevelopment of that corner.

…

The cost of the entire development is estimated at $95 million. Regier credits the city’s work to attract the University of Waterloo school of pharmacy and the Wilfrid Laurier University faculty of social work to downtown Kitchener in helping to secure Andrin as a developer for Centre Block.

“I think things are coming together right now, the real estate market in this region remains strong and people are excited about the downtown,” he said.

The city and the developer are hoping to repeat earlier successes with downtown condos. Andrin redeveloped the old Kaufman factory on King Street West into condos that sold quickly. Lofts on Mansion and the condos at the Kitchener Market also proved popular.

Are you excited for this development to come to downtown Kitchener?  Do you think it will be a great place to live? 

New Mortgage Rules for Real Estate Investment in Canada

My wife and I are in the Carribean this week doing some research, so posting has been light. However, I want to pass along a few articles my friend Jeff Zabel, with Mortgage Alliance in Kitchener Waterloo emailed to me.  They are about changes to the mortgage rules, and will affect real estate investors:

This morning Finance Minister Jim Flaherty made the following three announcements to mortgage insurance rules

1. Variable mortgages qualified at five year fixed rate;

2. Refinancing limited to 90% instead of 95%;

3. Non owner occupied residences [I read this as single family properties bought for rental purposes -BB] require 20% down payment;

This announcement is the result of a review process on debt levels undertaken by the federal government that CAAMP has been actively engaged.  We released Will Dunning’s debt report, consulted with members  and took a position with decision makers in Ottawa that while we opposed changes to the current 5% down payment rule and 30 35 year amortization rates for primary residences, we were open to other changes if the government deemed there to be a problem.  The changes announced this morning reflect CAAMP’s position and do not affect primary mortgages except for the first point where many lenders are already qualifying at 5 years anyway.

Jeff is being told that these rules will be effective april 19th, 2010, so we may be able to still take advantage of the current terms and rates if you’d like.  Contact me for more information regarding that.

Jeff also sent me this article from the Canadian Press, which came out before the initial announcement, so it contains speculation, not fact:

New mortgage rules introduced to lessen mortgage crunch risks: sources say

By Julian Beltrame, The Canadian Press

OTTAWA – The federal government is expected to announce new rules Tuesday that would make it more difficult for first-time buyers to enter Canada’s hot housing market.

Sources have told The Canadian Press that Finance Minister Jim Flaherty is ready to move on the issue because of concern Canadians may be taking on too much debt.

Economists have advised the minister the best way to protect Canadians is to institute a debt affordability test in order to qualify for a Canadian Mortgage and Housing Corp. insured mortgage.

Currently, prospective home owners can qualify for a CMHC insured mortgage if they put at least five per cent down on the cost of a home.

But bank officials say they usually apply a cushion to ensure home buyers have sufficient income to meet payment requirements if floating rates rise, in some cases by more than two percentage points.

Flaherty is expected to make such an income test a condition for acquiring an CMHC insured mortgage.

Another possibility is for the minister to reduce the amortization period from 35 years to 30, which would have the effect of raising monthly payments. [note: it does not appear this happened -BB]

It is believed Flaherty rejected more radical measures to cool the housing market, which has reached record levels in sales and near record levels in average home prices despite the weak economy.

Economists have cautioned the minister against putting on the brakes too strongly. They say raising the minimum downpayment requirement to 10 per cent, one of the suggestions given the minister, could cause a crash in a key mainstay of the fragile economic recovery.

The Bank of Canada has been warning for months that homeowners should ensure they can absorb an increase in their floating rate mortgages once rates start rising, likely as early as this summer.

By the central bank’s own stress test calculation, almost one in 10 households would have a debt-service ratio that makes them vulnerable to economic shocks by the middle of 2012 if current trend continue.

In an address written for deputy governor Timothy Lane last month, the bank suggested the government has all the tools it needs to address the problem.

"An array of supervisory and regulatory instruments can be used by the government to restrain a buildup of systemic risks," said notes the address.

More Tech Innovations Come out of Waterloo

One of the reasons that investors like this area is because of the innovation and creativity.  Here is another example

Google Buzz, the latest Social Media platform, came out of Google’s office that I drive past every day, right here in Waterloo Ontario.

 

http://www.financialpost.com/news-sectors/technology/story.html?id=2542955

Just as Google’s simplistic homepage belies the advertising power, technological sophistication and global reach of the Mountain View, Calif.-based company, Google Waterloo’s unassuming offices appear a cover for what has become a rising star among Google’s network of regional offices.

Since its opening in 2005, Google’s Waterloo operations have grown from three employees to a team of several dozen and have become one of the company’s most vital recruitment centres and product development hubs.

Yesterday, the technology world watched as Google unveiled Google Buzz, a new tool that adds social-networking capabilities popularized by such sites as Facebook and Twitter to the company’s Gmail email service. Although millions of Gmail users around the world will begin using Buzz today, most will be unaware that the Google Waterloo team played an integral role in the creation of Buzz. 

Whether it’s building Gmail and YouTube applications for the iPhone and BlackBerrys, sowing the seeds for the company’s ambitious Chrome operating system or refining Google’s core advertising technology, Google Waterloo’s engineers are key players in many of the company’s most ambitious and strategic initiatives.

*******

Google, much like other technology giants before it, sees the University of Waterloo and the surrounding region as one of its top three recruitment centres for undergraduates, alongside the Massachusetts Institute of Technology (MIT) in Cambridge, Mass., and Carnegie Mellon University in Pittsburgh.

"Waterloo graduates and people from this area who come into Google … have done really well, not just at this site, but other sites and Mountain View," Mr. Woods says.

RIM’s connection to the University of Waterloo and its ability to use the school’s engineering and computer science departments as a de facto farm system has been well documented. Other home-grown tech companies, including Open Text, have also recruited heavily from the university.

Microsoft Corp. is another tech giant that has viewed the Waterloo region as a key recruitment location. Microsoft chairman and co-founder Bill Gates has been a regular visitor to the university over the years to speak to students.

…

Still, it is not just the nearby wealth of talent that makes Google Waterloo special. The engineers here are at the centre of a number of projects key to Google’s strategy going forward. According to several internal metrics, Google Waterloo has more impact per engineer than any other Google site.

When it comes to Google’s online advertising business – the lifeblood of the company and its primary revenue generator – Google Waterloo is responsible for overseeing and refining key pieces of the company’s advertising technology.

 

Tim Jackson appointed CEO of Accelerator Centre in Waterloo

One of the reasons that Kitchener Waterloo attracts so much attention from investors across the world is that the region is a hub of high tech companies (read: Life in a High Tech Powerhouse, 3rd article down) that continue to innovate and grow. In that light…

Exciting news announced yesterday: Tim Jackson (@timothyjackson on twitter) has been appointed CEO of the Accelerator Centre in Waterloo.  The Accelerator Centre is one of the premier high tech incubation centres in the world, housing 26 hi tech companies. It is in the Research and Tech Park at the University of Waterloo, across from RIM, Google, and more.

Congrats Tim!

Tim Jackson new CEO of Accelerator Centre
TheRecord.com

WATERLOO – Technology entrepreneur Tim Jackson is taking on another assignment.

Jackson, a partner of venture capital firm Tech Capital Partners and a board member of several local non-profit organizations, is the new chief executive officer of the Accelerator Centre, a technology business incubator in the University of Waterloo Research and Technology Park.

He also has been appointed associate vice-president of commercialization at the university, it was announced today.

“His dynamism and passion for entrepreneurship have been instrumental in building Waterloo Region’s technology leadership on the world stage, and his hands-on leadership will be invaluable in advancing commercialization technologies incubated within the university setting,” UW president David Johnston said in a news release.

The Accelerator Centre was launched in 2006 to help accelerate the growth of emerging technology businesses. It offers supports services as well as office space, and currently is home to more than 25 startups.

Jackson, who previously served as the centre’s vice-chair, will continue in his role as partner of Tech Capital.

Jackson co-founded the Waterloo-based venture capital firm with Andrew Abouchar after serving as chief executive officer of PixStream, a video networking startup that was shut down in 2001, just months after Cisco Systems bought it for $550 million.

Tech Capital invests in technology companies that serve the wireless, communications, new media and internet markets. Local companies it has invested in include Sandvine, Covarity, Avvasi, Coreworx, Livehive Systems and Metranome.

Jackson also has a high profile in the non-profit sector. He is the president of the board of the Food Bank of Waterloo Region, chair of the Waterloo Public Library Board and chair of the board of Centre in the Square. He recently completed a term as chair of the board of the Waterloo Regional Children’s Museum.

Jackson also has been a key player in efforts to have Kitchener and Waterloo hold a referendum in this fall’s municipal elections on the issue of holding merger talks between the two cities.

He also has been heavily involved in efforts led by the Prosperity Council of Waterloo Region to boost funding for local arts organizations.

At the Accelerator Centre, Jackson succeeds Tom Corr, who recently was appointed president and chief executive officer of the Ontario Centres of Excellence.

Open House in Kitchener Waterloo this weekend

If you’re looking for a new home, or just want some decorating tips, check out these Keller Williams Golden Triangle Realty open houses this weekend:

 

$232,900 ~ A7-175 David Bergey Drive, Kitchener ~ Sat Feb 6^th 2-4pm and Sun Feb 7^th 2-4pm

Great location! Backs onto forest and all amenities close by! Come buy this well maintained 3 bedroom, 2 bathroom home with new hardwood and walkout basement! MLS

$250,000 ~ 123 Rolling Meadows, Kitchener ~ Sat Feb 6^th 2-4pm

Gorgeous single detached family home, 3 bedrooms, 2 bathrooms and rec room.  MLS

$289,900 ~ 58 Brubacher Street, Kitchener ~ Sun Feb 7^th 2-4pm

Imagine having this immaculate home AND a fully Insulated 2.5 Garage at one Great Price! MLS# 1011016

$169,900 ~ 60 Glen Road, Kitchener ~ Sun Feb 7^th 2-4pm

Ideal for First Time Buyers, Empty Nesters & Single Parent Families!  Many Upgrades, Must be Seen! MLS# 1011560

$220,000 ~ 400 Wilson Ave Unit 45, Kitchener ~ Sun Feb 7^th 2-4pm

Well maintained 3 bedroom townhome with finished basement and all appliances included.  MLS

$205,000 ~ 63 Ingleside Drive, Kitchener ~ Sat Feb 6^th 2-4pm

Fantastic Starter Home! Semi-detached 3 bedroom, 2 bath with finished basement and fenced yard! Nicely renovated and ready for immediate possession! MLS

$177,500 ~ 634 Strasburg Road Unit 11, Kitchener ~ Sun Feb 7^th 2-4pm

A beautiful maintenance free 3 bedroom townhome.  This home shines from top to bottom with many upgrades including remodeled kitchen and bathroom, new flooring and new furnace and A/C.  Modern lighting for the perfect comfort of home.  Nothing left to do here just enjoy all this plus a great complex you can’t go wrong!  MLS

$495,000 ~ 4 Venus Cres, Heidelberg ~ Sat Feb 6^th 2-4pm

Relax in your 3 season sunroom overlooking your almost 1/3 acre estate lot before soaking in your indoor hot tub/spa room with skylights! This is the life! MLS

Let the Realtor know that you saw the info on BenjaminBach.com.  Thanks for reading!

Property Management for KW investment property

A big part of our client base lives outside of Kitchener Waterloo – other parts of Ontario, Canada, and even people living in other countries.  They are able to live   where they love, but invest where the numbers make sense because they employ quality property management companies.

Even a lot of our clients who live in the KW area use property management to take care of their rental properties; it’s just easier, and can be very affordable (depending on who you deal with)

Here’s a bit of info for you:

Contant me “Benjamin AT BenjaminBach.com” for a referral to a great management company

A profile of Eastbridge in Kitchener Waterloo, Ontario

One of my favorite neighbourhoods in Kitchener Waterloo is Eastbridge. Located in the North East part of the city, there are parks, trails, beautiful homes (ranging from condos, semis and towns to luxury homes worth more than $1 million), shopping (Conestoga mall is close by), close to restaurants like Wildcraft, Ben Thahn, The Keg and more. It’s also close to the expressway, which means 401 access to Toronto is convenient to access. 

Friends (and clients) of ours live there, and I asked Darryl and Robin why they chose to buy a home in Eastbridge, as opposed to any of the other areas in KW.  Listen to what they had to say; they also discuss why they like investing in real estate vs other asset classes.

BONUS: Watch the video to find out what the best Thai restaurant in Kitchener Waterloo is:

Why we love living in Kitchener Waterloo’s Eastbridge area

The schools in the area are well respected and include:

Lester B Pearson Public School 520 Chesapeake Dr

St Luke Catholic Elementary School 550 Chesapeake Dr

Lexington Public School 431 Forestlawn Rd

KidsAbility School 500 Hallmark Dr

WRDSB Partners in Ed Adult Cont Ed

You can check out the Eastbridge Neighbourhood Association page here: http://www.eastbridge.info/

For more information on the area, or for a list of available homes and investment properties in the area, send me an email to “Benjamin AT BenjaminBach.com” or call me today at 519.772.4376

Why we invest in Kitchener Waterloo Real Estate

Yesterday I had the chance to sit down with two of our clients, Dr Robin Walsh and Darryl Kraemer to discuss why they invest in Real Estate, as opposed to any of the other investment vehicles available, like stocks, mutual funds, commodities, gold etc. 

Press play to hear what they had to say:

Darryl and Robin have a great portfolio of single family residential (including condo units) & student rental properties in Kitchener Waterloo, Ontario -all tenanted & performing well. 

If you’re interested in starting to invest and building a diversified property portfolio like theirs over time, send me an email. I’d love to help you

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