Archive for February, 2013


nine more units in barrie to start managing……..

Two nice properties!??????????????????????????????????????????????????????????????


Barrie rates fourth among Ontario’s top investment cities…….








In its latest rankings, the Real Estate Investment Network (REIN) ranks Barrie behind only Waterloo, Kitchener/Cambridge and first-place Hamilton as an area poised to outperform other provincial regions during the next three to five years.

Hany Kirolos, Barrie’s director of economic development, says he’s not surprised by the city’s position.

“We’ve been continually ranked in the top five cities for investment for the last five years,” he said, “and any solid reinforcement of our investment opportunity in Barrie makes our job easier.”

REIN’s report says Barrie is an attractive community for people seeking the nearness and vitality of a big city, but who want a more laid-back lifestyle. It’s no longer just a recreational area – with its golf courses, ski hills and trails – but has a year-round, diverse economy.

Barrie isn’t just part of cottage country, REIN says; there’s job growth, economic diversification, major transportation improvements and a very aggressive economic development team.

“It’s true. I’ve got a team that’s strongly backed by a number of city departments that continually demonstrate we’re Ontario’s top investment-ready city,” Kirolos said. 
 “We compete hard and fast when we hear about a business development opportunity. But we don’t just wait to hear, we chase, tackle and fact-find every day to find new, less obvious business opportunities.”

REIN says Barrie has become a magnet for not only new residents, but new development and new business. It cites the 2010 addition of 5,664 acres of the former Innisfil land to Barrie, giving the city much-needed space for future development.

These rankings are not based on past or even current performance indicators of how a region will perform in the future, REIN says. Instead the focus is on economic fundamentals that will drive real estate markets in the future and an area’s potential to generate positive annual income.

REIN considers key fundamentals such as if an area’s average income, population and job creation is increasing faster than the provincial average.

It looks at the number of major employers, whether its political leaders have created an atmosphere of economic growth and if its infrastructure is being built to handle the expected growth.

The report also looks at whether an area is attractive to Baby Boomers, if labour and materials costs are increasing and if there’s a short-term problem now which will disappear in the future.

After Hamilton, Kitchener/Cambridge, Waterloo and Barrie, Ontario’s top investment cities are Brampton, Ottawa, Orillia, Durham Region (Whitby, Pickering, Ajax), Toronto, Vaughan and Brantford.

The report is authored by Don Campbell, president of Cutting Edge Research and a founding partner of REIN, as well as Melanie Reuter and Allyssa Epp, both research analysts with REIN.

REIN bills itself as Canada’s leading resource centre for real estate investors that provides investing workshops, services and products for its members. It says it provides unbiased research and economic insights combined with investment strategies and education.

For more information, visit


good article from RE/MAX……………..

Move-up purchasers set to increase their stake in homeownership in 2013, despite overall trend toward moderation, says RE/MAX

February, 21, 2013

Mississauga, ON (February 21, 2013) — Against a backdrop of strong equity gains and lower interest rates, move-up buyers are once again set to ramp up their role in major Canadian housing markets, according to a report released today by RE/MAX.

The RE/MAX Move-Up Buyers Report found that activity in traditional move-up price ranges have climbed year-over-year (2012 vs. 2011) in 87 per cent (14) of the 16 markets examined—a trend expected to continue throughout 2013.  The only exceptions were Victoria and Vancouver, where softer sales activity was reported. Driving the upward movement has been substantial price appreciation in most major centres.  The average Canadian home has escalated 93 per cent over the past decade; individual markets experienced increases ranging from 62 per cent in Saint John (4.96 per cent compounded annually) to 199 per cent in Regina (11.57 per cent compounded annually).


Move Up Buyers - 10 year


The RE/MAX report notes gains have been more muted over the last five-year period, with most centres hovering at an annual appreciation rate of five per cent.  Regina and Winnipeg once again bucked the trend, reporting a 12.7 per cent and 8.39 per cent annual increase respectively, while St. John’s recorded an annual compounded gain of 11.08 per cent over the past four years.

Move Up Buyers - 5 Year


“The equity position homeowners have realized over the past decade is nothing short of remarkable – especially in Western Canadian markets like Saskatoon, Regina, and Winnipeg, and St. John’s in Atlantic Canada where growth has been most pronounced and values still remain relatively affordable in comparison to the rest of the country,” says Gurinder Sandhu, Executive Vice President and Regional Director, RE/MAX Ontario-Atlantic Canada.  “Yet, despite the strong overall performances, five-year rates of return show no signs of being in bubble territory—and most definitely not in the often cited markets of Vancouver and Toronto.  While gains in Regina, Saskatoon and St. John’s have been exceptional, house prices are playing catch up, given a stronger economic status and following decades of steady, but modest growth.”

According to the RE/MAX report, the time between moves had also decreased, with first-time buyers generally prepared to upgrade within four to seven years after their initial purchase.

“The leapfrogging currently underway allows purchasers to gain greater equity with each move, accumulating wealth in the interim,” explains Sandhu.   “They recognize that very few financial vehicles allow them to do that with the security, tangibility and dual purpose that homeownership represents.”

The case for trading up makes good financial sense. To illustrate, consider a first-time buyer who purchased an average Canadian home for $188,164 in 2002 with a downpayment of 10 per cent.  Had the buyer financed the remaining $172,735 at the posted rate of 7.02 per cent over a five-year, fixed rate term amortized over 25 years, the balance owing after 10 years would be $135,619.  During that period (2002 to 2012), the home would have appreciated 93 per cent to $363,730 at an annual rate of return of 6.81 per cent (compounded).  With the equity of $228,111 applied to the purchaser’s next home, at $500,000, and today’s lower interest rates, the carrying costs would be just slightly higher than the original mortgage payment.

“Homeowners are finding themselves in an ideal position as their mortgage terms expire,” says Sandhu.  “Even in Vancouver, Calgary, Edmonton and Saint John, where housing values declined slightly, move-up buyers are taking advantage of softer values to trade-up while the spread has narrowed and interest rates are still low.  Experienced buyers realize that opportunity is not finite—rates won’t stay low forever—so if they can lock in to a five or ten-year term under four per cent, they’re making that move.”

Ample supply and buyer’s market conditions have created ideal opportunities in Vancouver, Victoria, Kelowna and Saint John.  Meanwhile, tight inventory levels have hampered activity to some extent, especially in markets like Edmonton, Calgary, Regina and Saskatoon, Winnipeg, Toronto proper, and Hamilton-Burlington, where the supply of homes falls short of demand.  St. John’s also reported micro seller’s markets in prime move-up neighbourhoods, despite overall buyer’s conditions.  Unless new product comes on-stream, continued upward pressure on pricing is expected in the months ahead.

“We have a catch-22 situation in tighter markets,” says Sandhu.  “Homeowners are unwilling to list their properties without a game plan in place.  If they haven’t purchased their next home, they are unwilling to take the risk—further exacerbating tight market conditions.”

Sales in the move-up segment were up in 2012 over 2011 in the vast majority of markets examined.  Even more impressive is the upward trending despite a decrease in overall home sales.  Enthusiasm out of the gate in 2013 was particularly strong in Kelowna, Edmonton, Calgary, Winnipeg, Toronto, Hamilton-Burlington, London-St. Thomas, where overall resale homebuying activity was comparatively healthy or posted positive January gains.



some good info here…….







One of the better blogs around for Real Estate Investors is the Biggerpockets blog, which has been around for years, and has lots of experts that do great write-ups on different topics.  So, once you’ve finished out checking out this blog, have a wander over to theirs.  They’ve just released a tutorial of the basics of RE Investing.  Check it out here


seminar next week…..these are always of value to attend







There’s always something you can learn, and if you have questions, it’s a perfect venue to get answers!
Seminar Feb 27th-1


the value of credit checks…..



imagesWe’re often asked why credit checks are important for renting…aren’t they more important when it comes to buying a house?  The short answer is ‘no’.

First of all, the information on a report can be used to verify, or call into question, some of the information on a tenant’s application.  Current employers, addresses, birth dates, loans, access to credit will show up on the report, and the first thing to do is match it up with the application to see if all is good.  At this point, you might have some additional questions for the applicant.

Secondly, and just as important, a credit report is a great way to gauge the prospective tenants abilities to manage their cash flow, and to see if they have run into issues in the past.  Late payments, non-payments of bills, collections orders (especially from Property Management companies) are never a good thing.  Bankruptcy and proposals may also cause concern.

And finally, it’s good to see that prospective tenants have access to credit, as sometimes the unexpected happens, and the use of credit will still allow the rent to be paid on time!


Here are some ways to maintain a good credit rating:


1. Know what goes into a good credit score

The more you know about what goes into your credit score, the easier it will be to maintain a good one. Five key pieces of information are used to calculate your credit score – your payment history, level of debt, credit age, mix of credit, and recent credit. But, not everything financial affects your credit score. For example, checking account overdrafts and utility payments won’t automatically help (or hurt) your credit score.


2. Pay your bills on time

That goes for all your bills, not just your credit cards and loans. While certain bills don’t get reported to the credit bureaus when you pay on time, they could end up on your credit report if you fall behind. Even a small library fine could wind up on your credit report. Continue to pay all your bills on time to maintain a good credit score.

3. Keep your credit card balances low

The higher your credit card balance is, the worse your credit score will be. Your credit card balance should be within 30% of your credit limit to maintain a good credit score. That’s $300 on a credit card with a $1,000 credit limit. Charging more than 30% of your credit limit is risky even if you plan to pay off the balance when your billing statement comes. Card issuers typically report the balance when your statement closes and if that’s a high balance, your credit score will be affected.

4. Manage your debt

Credit card balances aren’t the only accounts that influence your credit score. Loan balances and lines of credit also impact your level of debt (30% of your credit score). Having too much debt can cost credit score points and make it difficult to afford your monthly payments. The lower your debt, the easier it will be to maintain a good credit score.

5. Don’t close old credit cards

When you close a credit card, your credit card issuer no longer sends updates to the credit bureaus and the credit scoring formula places less weight on inactive accounts. After 10 years or so, the credit bureau will remove that closed account’s history from your credit report. If the account was an old one (which it would be after 10+ years), losing that credit history will shorten your average credit age and cause your credit score to drop.


6. Limit your applications for new credit

Each time you apply for credit – whether a credit card or loan – your credit score takes a small hit. Credit inquiries are only 10% of your credit score, but if you have a high credit score (say 800), you stand to lose a lot of points (10% of 800 is 80). Opening a new credit account also lowers your average credit age (15% of your credit score). To maintain a good credit score, you should open new credit sparingly.

7. Watch your credit report

Just because you do everything right with your credit doesn’t mean everyone else will. Errors could end up on your credit report leading to a drop in your credit score. Identity theft and credit card fraud can also lead to inaccurate information on your credit report. Checking your credit report throughout the year lets you detect these mistakes sooner so you can correct them and maintain a good credit score.


If you’re interested in further information…the websites of some major credit reporting agencies are great places to start:


two more properties to start managing this month…..

Nice homes in Barrie…..



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