Uncategorized

New Home Construction is up in Kitchener Waterloo

Canada’s Mortgage and Housing Corporation, CMHC, released their report on housing starts (the number of new homes starting construction) for the area containing Kitchener Waterloo, Cambridge, Woolwich and North Dumfries, Ontario.  Housing starts are up:

Construction began on 168 homes, up from the 103 units started in the same month last year. This was the fifth consecutive month with starts higher than a year ago.

Foundations were poured for 92 single-detached homes in February, up from the 45 units started in February 2009. Townhome starts decreased to 18 units, down from 37 units last February. There were 24 rental apartment units started in February, up from the 19 apartment starts a year ago.. All municipalities in the CMA, except Cambridge, recorded higher starts in February.

“New home sales outpaced starts through most of 2009 which will support starts activity in 2010,” said Edgard Navarrete, Market Analyst for the  Kitchener CMA. “A tight resale home market (see Market Update- Real Estate selling fast in Kitchener Waterloo and Tight Real Estate Market in Kitchener Waterloo) and low interest rates (see Interest rate updates from a mortgage broker) have encouraged home buyers to consider the new home market. Any increase in demand for new homes must be met by new construction, as new home inventories are low,” added Navarrete

Many of our clients have been investing in new construction homes recently; there are some good deals out there, and some of the builders are offering incentives to purchase. 

Here are some more detailed stats from CMHC

If you’re interested in more information, or to see what type of cash flow you can generate from a new investment property, contact me at Benjamin@BenjaminBach.com or call me at 519 772 4376

Paying off the mortgage: The Forgotten Return in Real Estate Investing

The following article is written by my friend & client (and real estate investor) Darryl Kraemer, that originally appeared at his site DarrylKraemer.com 

It is interesting how many times you are reading an article in a magazine or a newspaper, or when you are reading a book on Real Estate Investing, and the author focuses on one of two ways to get a return on your investment:

1. Cash Flow (the life blood of any real estate investment) OR
2. Appreciation (the speculation in real estate investment)

I want to talk about the third, sometime forgotten return in real estate investing, and that is:

Debt Reduction on your mortgage (thank you Mr. or Mrs. Tenant!)

Debt reduction is a key factor to take into account when you are analyzing the total return for a potential real estate investment you are looking at. You can thank your tenants for this return, as they are the ones who create it the moment they begin paying their rent.

When you pay your mortgage every month, the payment consists of two pieces: Principle and Interest, sometimes referred to as P+I. Interest is what you pay the bank, mortgage company or private lender in return for the risk they take on by lending you the money to buy the house. Principle is the part of your monthly payment that actually reduces the amount ourstanding on your mortgage every month.

Let’s look at an example:

Mortgage Amount: $100,000
Interest Rate: 5%
Amortization: 25 years
Term: 5 years
Compounded: Semi-Annually
Payment Frequency: Monthly

Based on these inputs, your monthly mortgage payment would be $582 per month. Of that $582, part of it pays the interest and part pays the principle. How much you ask? It breaks down like this for the first month:

• Interest: $412
• Principle: $169

Now, you may be saying that $169 is not that much, but remember, you aren’t paying it down. Your tenant is! Every month. They are reducing the amount of the mortgage outstanding just by the act of paying their rent.

A year later, the break down looks like this:

• Interest: $404
• Principle: $178

The amount of principle in every payment has gone up! As you (your tenant) chips away at the mortgage amount outstanding, the interest portion of each monthly payment is reduced because there is less of a mortgage balance to pay interest on.

Let’s look at a table from my investment property calculator that shows the break down of cash flow, debt reduction, and appreciation every year so you can see your total return on a potential investment.

After 5 years, when the mortgage term is up and it is time to renew, even with a 0% appreciation in your property value, you can refinance back to 80% LTV, pulling over $11K out of your property to use as a down payment on another. This is in addition to the over $10K in cash flow your property generated, even with a 5% vacancy allowance.

Darryl Kraemer received his B. Math from University of Waterloo in 1999, and his MBA from WLU in 2007. He holds the position of RadIT Solution Manager for Agfa HealthCare Canada, where he’s worked for 10yrs, and is responsible for business development for Canada. Darryl has pitched and won deals that are worth $1-2M all the way up to $65M.

Darryl also owns two real estate investment companies, and has grown them to 8 properties worth over $2M within 2 years. Darryl is an avid runner, triathlete, downhill skier and hockey player, having played varsity at the University of Waterloo. Darryl has completed 1 Marathon, 4 Half-Marathons, 1 70.3 Half Ironman and a hand full of shorter triathlons so far, with plans for more.

Darryl is a student of Tony Robbins, having completed his Mastery University in 2009, and most recently joined Armand Morin’s inner circle AM2.0 to immerse himself in Internet Marketing.

Darryl and his wife Robin are expecting their first child, a baby girl named Blake in May 2010, and are very excited for this new journey they are about to start.

For more information on Darryl, visit darrylkraemer.com.

New View of Kitchener Waterloo Real Estate

Want to walk around the neighbourhood without leaving your home ?  Well, thanks to the genius minds at Google, we can now do that for almost the entire city of Kitchener Waterloo (so far I’ve found at least 1 street that’s not indexed).  Google Maps introduces Street View for Kitchener Waterloo.  More at The Record:

Thousands of residents in Kitchener and Waterloo likely shared his wonder at the otherwise mundane as word of the new service spread Wednesday.

Nine other cities across Canada also came on board, allowing users to navigate their way through 360-degree views seamlessly stitched together to simulate walking tours.

Cars equipped with special cameras took the images of Kitchener and Waterloo while being driven up and down local streets this spring — creating a huge snapshot, rather than a changing, live look at the cities.

Google blurred licence plates and the faces of people captured in the photos to address privacy concerns.

It will also consider requests to remove images where there are specific concerns.

An enhancement of the existing Google Maps feature, it is billed as a tool to help travellers get around, arrange meeting spots or explore new areas.

View Larger Map

I’m going to be taking a virtual tour around an area before I invest in it, or before we drive out to a site with real estate investors.  How will you use this new tool ?

Kitchener Waterloo Open Houses – Real Estate tour

It’s time for another Keller Williams Open House Extravaganza! This weekend our Real Estate partners are painting Kitchener Waterloo & Cambridge RED with Keller Williams open house signs. Visit these fine homes this weekend, and let the REALTOR on site know that I sent you!

$299,900 ~ 207 Lourdes Street, Waterloo ~ Sun October 4th 2-4pm
Beautiful Westmount Bungalow on a tree-lined street, walking distance to most amenities, great for a new family or empty nesters, 3+ bedrooms, 2 baths, original home has an enlarged master bedroom with a walkout to a cozy four seasons room. MLS

$349,900 ~ 484 Dansbury Drive, Waterloo ~ Sat Oct 3rd 2-4 and Sun Oct 4th 2-4pm
Desirable home for sale located close to expressway and RIM park newly build home boasting ceramic tile and hard wood on 9′ main floor ,mid level family room ensuite w/ his/her sinks and stunning tile shower. MLS 0934362

$370,000 ~ 6 Croyden Place, Waterloo ~ Sun October 4th 2-4pm
Highly sought after exclusive Lincoln Village court. Extensive updates up to $30,000. Enjoy large family get togethers. MLS

$440,000 ~ 305 Edgewater Cres, Kitchener ~ Sat Oct 3rd 2-4 and Sun Oct 4th 2-4pm
Relaxing strolls along the Grand River, fun filled afternoons at the nearby playground & basketball courts. Exercise & entertain at Chicopee Ski Hill, tube park & recreational facility. MLS

$650,000 ~ 301 Deer Ridge Drive, Kitchener ~ Sun October 4th 2-4pm
Deer Ridge Estates! Right by Pioneer Tower by Grand River and Deer Ridge Golf Course. $120,000 in basement and yard. Muskoka yard with spectacular outdoor fireplace.MLS

$270,000 ~ 94 Mountain Laurel Cres, Kitchener ~ Sat Oct 3rd 2-4 and Sun Oct 4th 2-4pm Luxury ensuite with jacuzzi bath & separate shower. Oversized 1 1/2 garage! You will be impressed. Sunken living room, on open concept main floor. MLS

$379,900 ~ 83 Old Park Lane, Kitchener ~ Sat October 3rd 1-3pm
Excellent 4+1 bedroom home with 4 baths. MLS

$194,000 ~ 36 Pepperwood Cres, Kitchener ~ Sat Oct 3rd 2-4pm
This is a great starter home for a young family or a great investment home for the investor. Close to schools, shopping and expressway. Carpet free main and upper floors with gleaming hardwood. Walkout from living room to large deck. Fenced yard that backs onto greenbelt. Roof replaced 2009. MLS

$280,000 ~ 63 Dreger Ave, Kitchener ~ Sun October 4th 2-4pm
Great Stanley Park home located on quiet street backing onto greenbelt with large fenced yard. Home has been repainted, newer roof(06), newer furnace and A/C(05) completely finished rec room(09). Move in and enjoy! MLS

$319,900 ~ 520 Robert Ferrie Drive, Kitchener ~ Sun October 4th 2-4pm
Best value in desirable Doon South area! 3 bedrooms, 3 bathrooms, the large master bedroom has a walk-in closet and an ensuite. Open concept main floor with walkout to nice deck and deep lot. Ready for your offer. MLS

$269,900 ~ 119 Stiefelmeyer, Baden ~ Sun October 4th 2-4pm
Amazing Bungalow built in 2003. MLS

$399,000 ~ 34 Coral Gables Cres, Elmira ~ Sat Oct 3rd 1-4 and Sun Oct 4th 1-4pm
4 Bedroom, 3 Bathroom Model Home. 9′ Main floor, Master bedroom has a luxurious 5pc ensuite. Maple (gourmet kitchen, 2 sink bathroom vanities, and stairs). Family room with gas fireplace, extensive use of travertine natural stone & maple floors. Double car garage, asphalt driveway, Lot frontage 50′. MLS

$80,000 ~ 204-234 Willow Rd, Guelph ~ Sun October 4th 2-4pm
Why pay rent when you can own! Single bedroom condo apartment, in excellent condition, appliances included. The best value for the money. Ready to move in. This is a rare opportunity not to be missed! MLS

Take a look at these beautiful homes this weekend, and let the real estate agent at the home know I sent you

New Real Estate Blog & Finding Best Deals

Did you know the Kitchener Waterloo Real Estate Investment blog has moved to a new home at BenjaminBach.com ? Go there to check out our latest videos, articles, and investor tips.

Our latest video talks about how a Real Estate Investor can get the best deal.  Follow this link to watch the video

Investor Alert – Hot Condo Opportunity

Hey -

Remember those condo’s I was talking about a while back ? They were finished in 2008, have a great Kitchener location close to shopping, transportation, and the highway, rented for good cash, had high quality building materials – and, oh yea – sold out quick?

I’ve fielded at least a dozen calls and emails from investors and agents looking for more of these units. Until now I’ve had to turn them away and tell them I couldn’t help them.

Can you keep a secret ? On Wednesday one of these condos is hitting the MLS – Multiple Listing Service – the first unit to be resold on the MLS since the builder sold off all the units.

This condo is in great shape and would make an excellent first investment, or a great addition to a portfolio that already is working hard for you.

Since this condominium complex is recently built, it is partially exempt from the Rental Increase Guidelines contained in the Residential Tenancy Act, meaning you will be able to adjust the rent to market once a year, not just raise it 1.4% or 1.8% (the 2009 Guideline). This makes it more even more appealing than an older rental unit that is subject to the guidelines.

We expect to see heavy activity on this listing, since the surrounding area (Stanley Park) is very desirable, especially with the bungalow floorplan this condo unit offers.

The area hasn’t seen new condos built in a rather long time, so the demand was high when they first hit market, and the residual demand is still there.

My recco to you: If you’re interested in investing in this opportunity, call or email me today before the condo hits MLS and people who want to buy it to live in it start calling me too.

PS – If you’re one of the lucky people who happens to already own a unit here, call me – we have investors looking to buy ‘em. I’ll buy the coffee, and I think you’ll like what I have to say.

View our other Real Estate Investment Property listings here

Kitchener Waterloo’s Favourite Real Estate Agent** wants to show you how Real Estate Investing
can make you wealthy. Benjamin works with people from all across
Ontario and Canada and the world helping them build wealth through
smart real estate investments.

Benjamin is a Sales Representative, and runs the
Wealth Team at Keller Williams Golden Triangle Realty in Kitchener
Waterloo. He’d love to answer any questions about buying, selling and
owning a residential, or income & investment property in the
greater Waterloo region.

You can reach Benjamin at Benjamin(AT)BenjaminBach.com or call him at 519 570 4447

**Gold Award, Kitchener Waterloo Record Readers Select Awards 2007

October Real Estate Market Update – Kitchener Waterloo Prices Rising

What’s going on in the Kitchener Waterloo real estate market?
This questions was just posed to me by an investor from Vancouver, British Columbia who has turned her investment attention to the Waterloo region. She asked:

What’s going on with vacancy rates, housing prices, and sales volume?

Great question – and we’ll be answering it here this week. Today, we look at prices in Waterloo region, specifically the 4 Kitchener Waterloo Multiple Listing Service (MLS) areas.

Kitchener Waterloo’s Favourite Real Estate Agent* wants to show you how Real Estate Investing can make you wealthy.

Benjamin works with people from all across Ontario and Canada and the world helping them build wealth through smart real estate investments.

Benjamin is a Sales Representative, and runs the Wealth Team at Keller Williams Golden Triangle Realty in Kitchener Waterloo. He’d love to answer any questions about buying, selling and owning a residential, or income & investment property in the greater Waterloo region.

You can reach Benjamin at Benjamin(AT)BenjaminBach.com or call him at 519 570 4447

*Gold Award, Kitchener Waterloo Record Readers Select Awards 2007

Great Kitchener Waterloo Real Estate Investment Opportunity

Great Investment Opportunity – Legal Licensed Student Lodging House for 5
Moneymaking Student House

When Investing in Real Estate, the sage advice is Location Location Location!
Well, location doesn’t get any better than this for a student rental property.

268 Hemlock is a legal licensed house for 5, so close to WLU you can see it.
Located between Conestoga College’s Waterloo Campus, Wilfrid Laurier Univesity and University of Waterloo, there are over 50,000 students within a short walk of the home.

If you have a child that going to school here now, or may be attending one of these schools in the next 5-10 years, investing in this student home now will allow you to have a great home for them to live in with 4 friends when they go to school, plus you’ll benefit from owning a prime located real estate investment!

Why would you pay for residence, or rent that is paying off another investor’s mortgage, when you could be profiting from being an investor in the great student real estate market in Waterloo ?

The property is currently fully rented until August 2009, and tenants pay all utilities.If you`d like more information on this property, and to schedule a private tour, email or call Benjamin today at Benjamin@BenjaminBach.com or 519 570 4447.

Kitchener Waterloo’s Favourite Real Estate Agent** wants to show you how Real Estate Investing
can make you wealthy. Benjamin works with people from all across
Ontario and Canada and the world helping them build wealth through
smart real estate investments.

Benjamin is a Sales Representative, and runs the Wealth Team at
Keller Williams Golden Triangle Realty in Kitchener Waterloo. He’d love
to answer any questions about buying, selling and owning a rental,
income or investment property.

You can reach Benjamin at Benjamin(AT)BenjaminBach.com or call him at 519 570 4447

**Gold Award, Kitchener Waterloo Record Readers Select Awards 2007 – 2008

 

Real Estate Investing 101: Understanding NOI

Real Estate Investing can appear complicated at first, if you don’t understand all the jargon that experienced Investors (or those that try to sound experienced) use on a daily basis.

Today, I’ll be explaining what the <b>NOI</b> – or Net Operating Income – is, and why you need to know what it is before you start acquiring investment properties in the Waterloo region.

When you’re buying a house, apartment building or any piece of real estate as an investment to generate cash flow, you need a way to determine what the income is. If you don’t know this, you won’t understand how much, if any, cash flow this particular rental home will generate for you.

Net Operating Income is simply the property’s operational revenue <b>less</b> operational expenses.

Operational expenses are expenses that are incurred by virtue of owning and running the property. Operating expenses include water, gas, hydro, utilities (if paid by the owner, not the tenant) as would the Property Tax, normal Maintenance & Repair, cost of insurance etc. It usually will not include mortgage payments – or debt service payments as they are often called.

For example. You own a rental property in Kitchener Waterloo, Ontario that is rented for $2,000 a month. The property tax is $200 a month, the tenants pay all utilities, Insurance is $75 a month, and Maintenance and Repair is budgeted at $50 a month (all numbers have been pulled from thin air by me). You manage the property yourself, so you don’t incur a management fee.

Your Gross Rental Revenue is $2,000 x 12 (months) = $24,000
From this we deduct a vacancy allowance of 5%, or 1200

Net Rental Revenue = 22,800

Operating Expenses:
Annual Tax = 200 x 12 = 2400
Insurance = 75 x 12 = 900
Maintenance = $50 x 12 = 600

Total Operating Expenses = 3900

Net Operating Income = 22800 – 3900 = $ 18,900

Are You Still Waiting to Learn the Way to Wealth ?

Good news for you – there are five seats left for tomorrow night’s free Millionaire Real Estate Investment workshop.

If you want to build real wealth for your family, you need to attend.

If you want to learn how to grow your own asset base and cash flow, register right now (click here!).

Anyone can do it, not everyone will. Will You?

 

WHEN: Thursday May 15th, 7:00-8:30pm

WHERE: The Keller Williams office, 871 Victoria Street North, Kitchener Ontario

Click Here Now To Register

Next Page »