The biggest worries for most landlords is a bounced rent cheque, an unexpected major repair or damage to the property caused by the tenant. However, all of these concerns pale in comparison to receiving a summons indicating that the landlord has been charged with provincial or criminal offences.
Although there are a variety of offences that a landlord could be charged with, the most likely to occur is a charge under the provincial fire code or related statute. Many landlords might assume that a fire code offence is not a serious concern, but the penalties can be steep.
In Ontario, for example, an individual can be charged up to $50,000 per count. If the owner is a corporation then the fines can be up to $100,000 against the corporation and $50,000 against individual officers and directors of the company per count.
Although rare, both individuals and officers and directors can be imprisoned for fire code offences. Compounding the severity of the penalties is the fact that, in most cases, multiple infractions are discovered at once. I have seen many cases where the landlord is looking at a cumulative fine of $500,000 or more.
So, what do landlords need to know to protect themselves against these types of charges?
1. How can I protect myself?
First and foremost, landlords should become familiar with what the law requires of them. This will depend on the type of unit they own. A legal rooming house, for example, will have different requirements than a one-bedroom condominium, which will in turn have different requirements than an apartment building. When the property is acquired the landlord should ensure that it is legally compliant.
Additionally, investors should be inspecting the parts of the property that can lead to charges whenever they are at the property for any reason, and at a minimum on a bi-annual basis. It only takes 30 seconds to make sure that hallway doors are properly latching, exits are clear of debris and smoke alarms are properly functioning. Failure to stay on top of the small things can lead to a massive fine which can erase years of profit from the landlord’s bank account.
2. Assume the property will at some point be subject to an inspection
Anything that might put the fire department in the vicinity of the property could lead to an inspection. If there is a fire, big or small, at your property you can safely assume that your property is going to be inspected afterwards. Although one could argue that the chance of a fire is rare, it is still a possibility and an event that is completely outside of the landlord’s control.
Additionally, a fire in the property is not a prerequisite to an inspection. For example, perhaps an accident occurs at the property and something catches the eye of EMS or the fire department while they are on site. A landlord has no way of protecting themselves from being inspected, so the best protection is to operate under the assumption that an inspection could occur at any time, because it can.
3. What to do If you get charged
Contact a lawyer as soon as possible. While this may sound obvious, many landlords will delay contacting counsel either because they are unsure of what to do or, worse yet, think that they can rectify the situation on their own.
Many offences are extremely difficult to defend given their nature. For example, there is almost no defence available for failing to have functioning smoke alarms in the property. In cases where there is no defence, the landlord will need to go into damage control as quickly as possible in order to mitigate the ultimate penalty that they will have to pay.
Most prosecutors (with whom you may ultimately try to arrange a plea) and adjudicators (who have the final say on the nature of the punishment) are looking to see that the problems have been rectified and in a timely fashion. Even though the offence has already been committed, time is of the essence and getting prompt legal advice is imperative.
In addition to rectifying the problems, prosecutors and adjudicators will want to see how diligent the landlord was in maintaining and inspecting the property. As stated above, regular inspections can be a life-saver for the investor. Even in cases where the tenant is directly responsible for the offence (for example, if they remove a smoke alarm, or improperly prop open stairwell doors) fault will still rest on the landlord’s shoulders unless they can demonstrate that the problems occurred even in the face of their diligent inspections and property management.
Most investors pay no mind to the thought of being charged with an offence until after the charges have been laid, by which time most of the damage has been done. While it is understandable to believe that it could never happen to you, the reality is that it certainly could. Given that the consequences are so severe, it is a risk that no prudent investor should take.
Friday, October 9, 2015
Wednesday, September 30, 2015
It's time for many Canadians to abandon the 20% down-payment rule
This one’s for the housing true believers out there.
You’re the buyers who keep pushing house prices higher in cities such as Vancouver, Toronto and Hamilton. Incomes are edging higher in these cities, prices are surging. If you’re primed to buy anyway, then listen up. Stop trying to save a 20-per-cent down payment and get into the market now.
A popular and sensible bit of financial advice is that you should ideally wait to buy a house until you have a down payment of at least 20 per cent and thus are excused from buying mortgage default insurance. But if it takes a few years to save that much, you may find that soaring prices more than offset the savings on mortgage insurance.
This insurance got a little more expensive in some cases this summer, so it’s time for a fresh look at the case for avoiding the cost of buying it.
Background for housing rookies: If you have a down payment of less than 20 per cent, you have to pay a hefty premium to insure your lender in case you default on your payments. The amount is usually added to your mortgage principal, which means it’s out of sight and out of mind. But it still costs you.
With a down payment of less than 10 per cent (5 per cent is the minimum), the cost of mortgage insurance rose in June to 3.6 per cent of the purchase price from 3.15 per cent. Larger down payments short of 20 per cent were unaffected and range from 2.4 per cent down to 1.8 per cent. You’ll pay provincial sales tax on those amounts in Manitoba, Ontario and Quebec. More importantly, you’ll incur extra interest charges by adding these amounts to your mortgage balance.
Let’s use the average resale house price in Canada to illustrate how much mortgage insurance adds to your costs when buying a first home. The average price in August was $433,367 – acalculator from Canada Mortgage and Housing Corp., a supplier of mortgage insurance, shows that a 10-per-cent down payment would trigger a mortgage insurance premium of $9,361. With that amount added to the mortgage, monthly payments on a five-year fixed mortgage at 2.59 per cent would be $1,807 per month.
With a 20-per-cent down payment, monthly costs on this mortgage fall to $1,569. Total interest over the five-year term of the mortgage falls to $41,390 from $47,681, a difference of $6,291. But would it really be worth postponing your purchase by three years to put 20 per cent down? With the market rising at 5 per cent annually (less than recent increases in Vancouver, Toronto and Hamilton), the chart that goes with this column shows you’d actually end up paying more per month.
Mortgage rates also have to figure into your thinking on whether to buy now or wait and save more. If we assume 4 per cent average annual price increases over three years and a rise in mortgage rates of one percentage point, you’d have to pay substantially more than if you bought now and paid for mortgage insurance (see chart).
If you live in a city with a slow real estate market, it pays to wait and save more. If you waited three years to double your down payment to 20 per cent on the average-priced house and prices rose 2 per cent annually, you’d come out ahead by more than $140 per month.
A June study issued by the Canadian Association of Accredited Mortgage Professionals said the average house down payment for first-time buyers was $67,000. That represents a 21 per cent down payment on the average $318,000 spent by first-timers, and a 15.5-per-cent down payment on the overall average price of $433,367.
The CAAMP study found that 18 per cent of first-time buyers received gifts or loans from family. A thought for parents who want to help their kids get into the market: Try topping up their down payment to reach the 20 per cent threshold. Warning: Parents should avoid this type of financial help if they have to go into debt to provide it, or if it greases the way for their kids to buy a house they can’t properly afford to carry.
Down payments are one of the least strategized parts of home buying, and yet they can have a big impact on your total long-term cost of owning a house. The conventional wisdom about 20-per-cent down payments is right on the money, but not if you’re set on buying in a hot market. Either jump in now or resolve to wait and save indefinitely for sanity to return.
For a free evalaution of your home or to find out what we do to GET YOUR HOME SOLD, Call: 519-841-0559 or e-mail: roy@callcleeves.com
Monday, September 21, 2015
Six benefits to investing in real estate
The time and effort it takes to build up a real estate portfolio can test your will, but when you stick with it, the benefits are worthwhile.
1. The courage to walk away
The headaches of the corporate world: endless meetings, business travel, red tape, bureaucracy at its fullest, reorganization, hiring freezes, more cutbacks, the impact on your health.
Putting up with this for years and years isn’t always worth the upside and perks a job might offer. Even if you don’t like your job, having real estate investments to fall back on can give you the courage to walk away from it all, like I did.
I decided to walk away from that job and from higher-level positions that would have sucked up more of my time so that I could balance what’s important in my life. I think Frank (played by John Goodman) in The Gambler said it best (although with a few more curse words):
“... You get a house with a 25-year roof... you put the rest into the system at 3-5% to pay your taxes and that’s your base, get me? That’s your fortress of [f---king] solitude. That puts you, for the rest of your life, at a level of f--- you. Somebody wants you to do something, f--- you. Boss pisses you off, f--- you!”
2. The time to get healthy
You know that getting in shape and eating healthy is very important, but you constantly have other commitments in life that take up all your free time. You know that’s bad for your health in the long term. Even if your life isn’t stressful, you probably could benefit from more free time.
As you develop an income from real estate, it becomes easier to balance everything in life because it’s possible to be less reliant on a salary, and to be able to afford more time off. Examples include stepping back from your day job, building healthy habits, and placing health as a top priority. I decided to do all that, by taking extended time off to repair my 18-year-old shoulder injury and committing more time to dance and sports, rather than work.
3. The opportunity to take a sabbatical
Imagine a big dream vacation, one that takes you away for several months. It’s difficult, isn’t it, because you don’t have limited vacation time or the funds to pay for it? Having a real estate portfolio that pays you might be the push you need to take a break from work and go on a sabbatical. You might want to travel for an extended period of time, experience other cultures, and naturally wake up without an alarm clock, an agenda or a plan.
After enjoying a sabbatical where I was able to recharge, travel and spend more time with family, I decided to permanently leave my engineering career with the government.
4. Time to pursue interest-based work
Maybe you’ve wondered what it would be like to do something different, like going back to school, trying a new career or starting up your own business. It’s very liberating to know that you have options and you can choose work that balances with your values/beliefs, such as family and personal goals, rather than work that is driven by money.
I left engineering for good more than a year ago and decided to pursue interest-based work. My motto is to work as long as it is fun, rather than work because of the security, benefits or pension.
5. Early retirement
Dedicating time to building a nice nest egg in real estate can afford you extra time later in life. The best thing about early retirement is having more time to do what you want to do. You can afford a less structured life, such as waking up without an alarm clock and penciling in more fun activities, like volunteering or staying at home with the kids.
I haven’t gotten to this point (yet) but I’m actively working towards it. Life is too short to spend 40 years at your peak working so that you can ‘retire’ for the last 30 years.
6. The ability to pay for your kids’ education
If you are one of those people who hates volatility (as experienced in the stock markets) and likes steady returns and lower levels of risk, then investing a bit of capital to buy a property might be the easiest and most stable solution. It is almost impossible to get significant returns without taking a significant risk in paper assets. However, buying property works best when you have time to wait while a tenant pays down a mortgage.
For a free evalaution of your home or to find out what we do to GET YOUR HOME SOLD, Call: 519-841-0559 or e-mail: roy@callcleeves.com
Source:http://www.canadianrealestatemagazine.ca/expert-advice/six-benefits-to-investing-in-real-estate-196280.aspx
1. The courage to walk away
The headaches of the corporate world: endless meetings, business travel, red tape, bureaucracy at its fullest, reorganization, hiring freezes, more cutbacks, the impact on your health.
Putting up with this for years and years isn’t always worth the upside and perks a job might offer. Even if you don’t like your job, having real estate investments to fall back on can give you the courage to walk away from it all, like I did.
I decided to walk away from that job and from higher-level positions that would have sucked up more of my time so that I could balance what’s important in my life. I think Frank (played by John Goodman) in The Gambler said it best (although with a few more curse words):
“... You get a house with a 25-year roof... you put the rest into the system at 3-5% to pay your taxes and that’s your base, get me? That’s your fortress of [f---king] solitude. That puts you, for the rest of your life, at a level of f--- you. Somebody wants you to do something, f--- you. Boss pisses you off, f--- you!”
2. The time to get healthy
You know that getting in shape and eating healthy is very important, but you constantly have other commitments in life that take up all your free time. You know that’s bad for your health in the long term. Even if your life isn’t stressful, you probably could benefit from more free time.
As you develop an income from real estate, it becomes easier to balance everything in life because it’s possible to be less reliant on a salary, and to be able to afford more time off. Examples include stepping back from your day job, building healthy habits, and placing health as a top priority. I decided to do all that, by taking extended time off to repair my 18-year-old shoulder injury and committing more time to dance and sports, rather than work.
3. The opportunity to take a sabbatical
Imagine a big dream vacation, one that takes you away for several months. It’s difficult, isn’t it, because you don’t have limited vacation time or the funds to pay for it? Having a real estate portfolio that pays you might be the push you need to take a break from work and go on a sabbatical. You might want to travel for an extended period of time, experience other cultures, and naturally wake up without an alarm clock, an agenda or a plan.
After enjoying a sabbatical where I was able to recharge, travel and spend more time with family, I decided to permanently leave my engineering career with the government.
4. Time to pursue interest-based work
Maybe you’ve wondered what it would be like to do something different, like going back to school, trying a new career or starting up your own business. It’s very liberating to know that you have options and you can choose work that balances with your values/beliefs, such as family and personal goals, rather than work that is driven by money.
I left engineering for good more than a year ago and decided to pursue interest-based work. My motto is to work as long as it is fun, rather than work because of the security, benefits or pension.
5. Early retirement
Dedicating time to building a nice nest egg in real estate can afford you extra time later in life. The best thing about early retirement is having more time to do what you want to do. You can afford a less structured life, such as waking up without an alarm clock and penciling in more fun activities, like volunteering or staying at home with the kids.
I haven’t gotten to this point (yet) but I’m actively working towards it. Life is too short to spend 40 years at your peak working so that you can ‘retire’ for the last 30 years.
6. The ability to pay for your kids’ education
If you are one of those people who hates volatility (as experienced in the stock markets) and likes steady returns and lower levels of risk, then investing a bit of capital to buy a property might be the easiest and most stable solution. It is almost impossible to get significant returns without taking a significant risk in paper assets. However, buying property works best when you have time to wait while a tenant pays down a mortgage.
For a free evalaution of your home or to find out what we do to GET YOUR HOME SOLD, Call: 519-841-0559 or e-mail: roy@callcleeves.com
Source:http://www.canadianrealestatemagazine.ca/expert-advice/six-benefits-to-investing-in-real-estate-196280.aspx
Friday, September 18, 2015
Seller Property Information Statements: What you need to know
While seller property information statements (SPIS) are not required by law, there are certain legal implications that investors and real estate agents should be aware of. Commercial lawyer Matt Maurer answers a range of questions about the statements
While seller property information statements (SPIS) are not required by law, there are certain legal implications that investors and real estate agents should be aware of. Commercial lawyer Matt Maurer answers a range of questions about the statements.
1. What is a seller property information statement?
A SPIS is a standard form document that was drafted by the Ontario Real Estate Association. It will contain information relating to defects, renovations and other pertinent property information based on the seller’s knowledge and experience.
2. Is completing a SPIS mandatory?
No. Sellers are not required by law to complete a SPIS. However, according to the Real Estate Council of Ontario, once a seller has completed a SPIS their broker or agent is required to tell all potential buyers of its existence. Additionally, if the buyer makes their offer conditional on a SPIS, then from a practical perspective the seller either has to complete one, or not sell to that particular buyer.
3. What are the legal implications?
SPIS have attracted significant judicial consideration in recent years.
The law in Ontario relating to SPIS was settled by the Court of Appeal in 2011. In short, where the seller completes a SPIS it is assumed that the seller intends that the SPIS will be disclosed to prospective buyers to use to inform their decisions respecting the purchase. This creates the relationship necessary in law to hold a seller legally responsible if the information contained in the SPIS is wrong, either through negligence (carelessness) or fraud (deliberately), notwithstanding the large disclaimer that appears at the beginning of the SPIS.
In a recent decision, the transaction was made conditional on a home inspection and financing (but not a SPIS). The agreement also contained a standard entire agreement clause. However, two days after the agreement was signed the buyer asked the seller to complete a SPIS and the seller obliged. The SPIS created an obligation on the seller not only to disclose existing information but also to notify the buyer of any changes to the information contained in the SPIS prior to the closing date.
The seller indicated on the SPIS that the house had not experienced any flooding. After the SPIS was delivered, but prior to the closing, there was flooding in the house. The seller failed to inform the buyer and the buyer ended up suing the seller after the closing when the buyer discovered the flooding issue. The court ruled in favour of the buyer and held that the SPIS and the obligation to make ongoing disclosure trumped the entire agreement clause found in the agreement itself.
4. What are the implications for agents?
Agents representing the seller are under an obligation to guide the client through the form and to provide specific warnings about the implications of completing a SPIS and the importance of ensuring that answers are complete and accurate. These warnings are to include the fact that by completing a SPIS the seller may be providing information to potential buyers that they are not legally otherwise required to provide.
In conclusion
Prudent buyers should, at the very minimum, ask the seller to complete a SPIS, and prudent vendors should avoid voluntarily completing a SPIS without the buyer specifically asking for one. If the buyer makes the request, the seller is under no obligation to do so. The seller’s decision as to whether or not to complete a SPIS at that point will likely depend on the condition of the house and the state of the local market.
For a free evalaution of your home or to find out what we do to GET YOUR HOME SOLD, Call: 519-841-0559 or e-mail: roy@callcleeves.com
Source:http://www.canadianrealestatemagazine.ca/expert-advice/seller-property-information-statements-what-you-need-to-know-195166.aspx
While seller property information statements (SPIS) are not required by law, there are certain legal implications that investors and real estate agents should be aware of. Commercial lawyer Matt Maurer answers a range of questions about the statements.
1. What is a seller property information statement?
A SPIS is a standard form document that was drafted by the Ontario Real Estate Association. It will contain information relating to defects, renovations and other pertinent property information based on the seller’s knowledge and experience.
2. Is completing a SPIS mandatory?
No. Sellers are not required by law to complete a SPIS. However, according to the Real Estate Council of Ontario, once a seller has completed a SPIS their broker or agent is required to tell all potential buyers of its existence. Additionally, if the buyer makes their offer conditional on a SPIS, then from a practical perspective the seller either has to complete one, or not sell to that particular buyer.
3. What are the legal implications?
SPIS have attracted significant judicial consideration in recent years.
The law in Ontario relating to SPIS was settled by the Court of Appeal in 2011. In short, where the seller completes a SPIS it is assumed that the seller intends that the SPIS will be disclosed to prospective buyers to use to inform their decisions respecting the purchase. This creates the relationship necessary in law to hold a seller legally responsible if the information contained in the SPIS is wrong, either through negligence (carelessness) or fraud (deliberately), notwithstanding the large disclaimer that appears at the beginning of the SPIS.
In a recent decision, the transaction was made conditional on a home inspection and financing (but not a SPIS). The agreement also contained a standard entire agreement clause. However, two days after the agreement was signed the buyer asked the seller to complete a SPIS and the seller obliged. The SPIS created an obligation on the seller not only to disclose existing information but also to notify the buyer of any changes to the information contained in the SPIS prior to the closing date.
The seller indicated on the SPIS that the house had not experienced any flooding. After the SPIS was delivered, but prior to the closing, there was flooding in the house. The seller failed to inform the buyer and the buyer ended up suing the seller after the closing when the buyer discovered the flooding issue. The court ruled in favour of the buyer and held that the SPIS and the obligation to make ongoing disclosure trumped the entire agreement clause found in the agreement itself.
4. What are the implications for agents?
Agents representing the seller are under an obligation to guide the client through the form and to provide specific warnings about the implications of completing a SPIS and the importance of ensuring that answers are complete and accurate. These warnings are to include the fact that by completing a SPIS the seller may be providing information to potential buyers that they are not legally otherwise required to provide.
In conclusion
Prudent buyers should, at the very minimum, ask the seller to complete a SPIS, and prudent vendors should avoid voluntarily completing a SPIS without the buyer specifically asking for one. If the buyer makes the request, the seller is under no obligation to do so. The seller’s decision as to whether or not to complete a SPIS at that point will likely depend on the condition of the house and the state of the local market.
For a free evalaution of your home or to find out what we do to GET YOUR HOME SOLD, Call: 519-841-0559 or e-mail: roy@callcleeves.com
Source:http://www.canadianrealestatemagazine.ca/expert-advice/seller-property-information-statements-what-you-need-to-know-195166.aspx
Tuesday, June 30, 2015
Ontario condo owners to get cheaper way to resolve disputes
The Ontario government plans to slap condo owners with the costs of protecting themselves from bad boards and unexpected financial problems within their buildings — starting at $1 a month per condo unit — under the biggest overhaul in condo legislation proposed in 16 years.
The new Protecting Condominium Owners Act is sure to result in not only higher maintenance fees but, in some buildings, costly special assessments as the government tries to get a grip on a booming sector that now houses about 10 per cent of Ontario residents — some 1.3 million people.
The massive overhaul — aimed at dealing with the “serious level of concern” around everything from transparency of condo finances to poorly trained property managers — will do nothing, however, to protect buyers against shoddy construction or developers who promise more than they deliver.
The proposed bill calls for creation of a new, non-profit Condominium Authority, funded largely by condo owners, to resolve disputes within the province’s close to 10,000 buildings that now can result in costly and lengthy litigation.
A proposed new Condo Manager Licensing Authority will regulate the booming property management system. That’s aimed at ensuring the folks hired to do the day-to-day running of multi-million dollar condo corporations across the province are adequately trained and vetted to reduce the risk of mismanagement or outright fraud which has emerged as a growing problem in a sector that now accounts for more than 50 per cent of all new housing construction.
“I see it as an insurance policy,” said veteran condo dweller Anne-Marie Ambert of the new monthly fees for owners. The York University professor was the lone representative for owners on the 12-member expert panel that advised the Liberal government on needed changes to the outdated act.
“It’s going to give us services and security that we don’t have now.”
In announcing the proposed changes Wednesday from the rooftop of a downtown condo building, Government and Consumer Services Minister David Orazietti stressed “it has become very clear what is likely to happen if we do not reform this act.
“A deterioration of condominium living — with increased potential for fraud and mismanagement. A continued rise in the number of very expensive, court-appointed administrators taking over control of condos from boards and managers as a result of failed reserve funds and other issues and more and more costly disputes between owners, and between owners and boards.”
The proposals — including the monthly fee — were among some 2,200 submissions the province received from owners, developers, managers and industry experts during the lengthy review, Orazietti said.
Other changes, which he hopes will be passed later this year and come into effect in 2016, include training for condo directors, mandatory licensing and education for property managers, restrictions against developers sticking buyers with unexpected long-term costs that drive up fees a year or so after taking possession.
The legislation would also make boards more accountable and transparent and stipulate what is an adequate reserve fund for each building for future repairs. Those are now woefully inadequate in some buildings, which could mean one-time special assessments in some condo projects.
Condo owner Sandy Steffen lauded the proposals as much-needed changes that might have protected her west-end townhouse complex, along with some two dozen other condo projects, from a rogue property manager who stole well over $350,000 from her small complex alone and left the board $170,000 in debt.
It took two years and cost each owner about $11,000 to fix the financial mess. While they were able to eventually recover 85 per cent of the outstanding funds, thousands were lost to legal fees.
“The small levy (under the proposed legislation) is a bargain compared to having to pay the full freight of legal costs,” said her condo board’s lawyer, Christopher Jaglowitz
Friday, June 26, 2015
Industrial building the next frontier in this hot market
A spotlight has been shining on Hamilton’s residential real estate market all year as investors look to capitalize on appreciating home prices – but one industrial property is signaling a new opportunity for investors.
Over the last few years, Ontario has seen successful turnarounds in revitalized industrial properties, such as Wychwood Barns in Toronto and the Tannery in Waterloo. However, the latest project, at Cannon Knitting Mills in Hamilton, could offer the most potential if enough capital is raised to turn it around.
“It’s an emerging area in the downtown that could really use this building as a mixed-use building for residential and commercial purposes,” said Dave Premi, an architect with the Cannon Knitting Mills project, adding that the building was purchased for $200,000 four years ago.
“It could be a good opportunity for investors if done right. It has to be done in phases, and the traditional rules of redevelopment won’t apply due to some risks, but it’s an important cultural asset that could pay off down the road.”
Stakeholders in Hamilton gathered last week to discuss just what could be done with the Cannon Knitting Mills, a historic industrial building that could be a boon to the local area if redesigned the right way.
Richard Joy, executive director of the Urban Land Institute, Premi, several investors, city officials and other large commercial players were on hand to hear about the opportunities for residential and commercial space in the three-storey building.
In an emerging area that's primed for growth, according to experts, the Cannon Knitting Mills has the power to be a major catalyst for downtown Hamilton, if not the entire city, said Glen Norton, manager of urban renewal at the City of Hamilton.
It’s also worth noting that the City of Hamilton offers a number of incentive programs, including interest-free loans, which investors can take advantage of.
“There’s a lack of retail in the area so I think that this building could provide that for the Beasley neighbourhood [in Hamilton],” said Norton. “There were really good ideas presented – a metal shop, a centre for fashion and design, a performance art center, so I think there’s a lot of potential there for the right investor(s) in a growing area.”
Over the last few years, Ontario has seen successful turnarounds in revitalized industrial properties, such as Wychwood Barns in Toronto and the Tannery in Waterloo. However, the latest project, at Cannon Knitting Mills in Hamilton, could offer the most potential if enough capital is raised to turn it around.
“It’s an emerging area in the downtown that could really use this building as a mixed-use building for residential and commercial purposes,” said Dave Premi, an architect with the Cannon Knitting Mills project, adding that the building was purchased for $200,000 four years ago.
“It could be a good opportunity for investors if done right. It has to be done in phases, and the traditional rules of redevelopment won’t apply due to some risks, but it’s an important cultural asset that could pay off down the road.”
Stakeholders in Hamilton gathered last week to discuss just what could be done with the Cannon Knitting Mills, a historic industrial building that could be a boon to the local area if redesigned the right way.
Richard Joy, executive director of the Urban Land Institute, Premi, several investors, city officials and other large commercial players were on hand to hear about the opportunities for residential and commercial space in the three-storey building.
In an emerging area that's primed for growth, according to experts, the Cannon Knitting Mills has the power to be a major catalyst for downtown Hamilton, if not the entire city, said Glen Norton, manager of urban renewal at the City of Hamilton.
It’s also worth noting that the City of Hamilton offers a number of incentive programs, including interest-free loans, which investors can take advantage of.
“There’s a lack of retail in the area so I think that this building could provide that for the Beasley neighbourhood [in Hamilton],” said Norton. “There were really good ideas presented – a metal shop, a centre for fashion and design, a performance art center, so I think there’s a lot of potential there for the right investor(s) in a growing area.”
Monday, June 22, 2015
How to buy a property in a hot market
1. Educate yourself
Before going out to view your first home, talk with your Realtor and other expert sources to learn as much as you can about the market you’re buying in. If you’re investing, understand what is currently driving the market demand, current inventory, how fast homes are selling, list versus sell price, frequency of multiple offers, and rental-related information.
2. Have your finances in order
Whether we like it or not, if you end up in a competitive multiple offer situation there may be pressure for you to exclude certain conditions, such as mortgage financing and home inspection. In these situations, it is imperative that you have the utmost confidence that you’ll be approved for a mortgage for the home you’re trying to purchase.
Also, be sure not to make any major financial changes prior to closing (e.g. taking on more debt, leaving a job, etc). Firming up a deal without obtaining mortgage approval prior to closing is a recipe for a potential lawsuit – at minimum you could lose your deposit.
3. Know how to recognize certain home defects
As with the above point, multiple offer situations may require you to exclude a home inspection condition. Therefore, it is important that you do your homework on what to look for regarding potential defects in a home (e.g. water issues, foundation issues, proper construction, fire hazards, etc). Preferably you bring someone with you during showings who has this background.
4. Remove emotion
Purchasing a home in a hot market may mean that you will lose during negotiations. It’s not uncommon for some buyers to have to put in offers on a few homes (at different times of course!) before they actually get an accepted offer. Attaching too much emotion prior to a firm deal can lead to a feeling of disappointment and frustration in the event an offer is lost.
Source: http://www.canadianrealestatemagazine.ca/expert-advice/how-to-buy-a-property-in-a-hot-market-192453.aspx
Before going out to view your first home, talk with your Realtor and other expert sources to learn as much as you can about the market you’re buying in. If you’re investing, understand what is currently driving the market demand, current inventory, how fast homes are selling, list versus sell price, frequency of multiple offers, and rental-related information.
2. Have your finances in order
Whether we like it or not, if you end up in a competitive multiple offer situation there may be pressure for you to exclude certain conditions, such as mortgage financing and home inspection. In these situations, it is imperative that you have the utmost confidence that you’ll be approved for a mortgage for the home you’re trying to purchase.
Also, be sure not to make any major financial changes prior to closing (e.g. taking on more debt, leaving a job, etc). Firming up a deal without obtaining mortgage approval prior to closing is a recipe for a potential lawsuit – at minimum you could lose your deposit.
3. Know how to recognize certain home defects
As with the above point, multiple offer situations may require you to exclude a home inspection condition. Therefore, it is important that you do your homework on what to look for regarding potential defects in a home (e.g. water issues, foundation issues, proper construction, fire hazards, etc). Preferably you bring someone with you during showings who has this background.
4. Remove emotion
Purchasing a home in a hot market may mean that you will lose during negotiations. It’s not uncommon for some buyers to have to put in offers on a few homes (at different times of course!) before they actually get an accepted offer. Attaching too much emotion prior to a firm deal can lead to a feeling of disappointment and frustration in the event an offer is lost.
Source: http://www.canadianrealestatemagazine.ca/expert-advice/how-to-buy-a-property-in-a-hot-market-192453.aspx
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