Development of New Waterloo Condo at 144 Park estimated at over $20 million

Construction of 144 Park Condo in Waterloo estimated at $21 million

144 Park is a new luxury condo building going up in Waterloo, Ontario at the corner of Park and Allen in Uptown Waterloo. It has units going over $1 million, making it the most luxurious development in the region.

I was researching the condo, and I found this interesting report from Daily Commercial News and Construction Record

CONDOMINIUM APARTMENT BUILDING
Waterloo, Waterloo Reg ON                                                            NEGOTIATED/PLANNING

144 Park – Uptown Waterloo, 144 Park St & Allen St, N2L 1Y6   -   $21,000,000 estimated 

Note: Sales and marketing are ongoing. Architect has completed Preliminary designs. Working Drawings are expected to begin April/May 2010. Sub trade Tender is expected to be issued Summer 2010. Further update Spring 2010.

Project: cast-in-place concrete structural frame, fuel fired heating system, proposed construction of a 143-unit condominium apartment building.

Scope:   187,000 square feet; 143 units

For info on 144 Park, other condos under construction, development land,  or for more information about the commercial real estate market in Waterloo Region, contact me today at Benjamin@BenjaminBach.com or call me at 519.772.4376.

KW Commercial is your one stop shop for commercial, investment, retail and multi family advice and brokerage in Waterloo Region.

For more real estate investment articles, please visit the Kitchener Waterloo Real Estate Investment blog.

If you want to Buy a Condo in Kitchener, read this and protect your investment!

3 Things You Should Know Before Buying a Condo in Kitchener

The best type of buyer is an educated buyer – knowing what to ask can save you lots of time, money and headaches, especially why buying real estate.

Today, let’s look at 3 things you should know before buying or investing in a Kitchener Condo

1) Location

The one thing you can’t upgrade about a property is the location.  Everything else – kitchen, flooring, bathrooms, paint, landscaping etc. can be changed, but location is fixed.  Choose wisely!

Our clients look for condo buildings near major amenities like shopping, restaurants and major employers.  Recently, investors have started looking for properties near the Light Rapid Transit system that is coming to Kitchener Waterloo, since tenants (and new owners we resell too) like living near major transportation hubs.

2) Age & Condition

The second thing we want to look at before finalizing an agreement to buy a unit in a condominium is the age and condition of the unit, and the overall property. 

Most of our clients stick to condos about 20 years old or less, with many buyers prefering to purchase new condo construction like the Kaufman Lofts (now built), Centre Block, or any of the developments in Waterloo like Bauer Lofts or 144 Park. Many buyers and owners just find less maintenance with newer properties, although each complex is different; we recommend getting a home inspection done before purchasing a condo.

3) Financial Health of Corporation

The third thing often gets overlooked, but is very important. When you’re investing in a condo unit, you’re also buying a proportional share of the condo corporation, which controls & maintains the condo, and is made up of people who own units in the complex. 

If the complex is mismanaged, and there is a budget shortfall at the end of a year, they will come to YOU as an owner to make up this shortfall.

This is why we do our due dilligence before ‘firming up’ a purchase agreement, and reveiw the Status Certificate with our client’s lawyers.

Summary:

Buy in a good area; buy a well maintained condo; research the condo corporation financial health before committing.

Related posts:

Real Estate Investment Tip: Raising Rent on Rental Units in Ontario

Kaufman Lofts in Kitchener Waterloo – A Real Estate Investor’s Perspective on the Condos

WARNING: If you think an RESP will pay for your baby’s college education, you’re wrong

Would you rather have 1 condo in Kitchener Waterloo or 2 ?

An investment property for $120,000 ? I don’t believe it !

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Before you Buy a Condo in Waterloo, know this!!

Dont Get Burned – 3 things to check out when buying a Condo in Waterloo

When you buy a condo in Waterloo there are some specific things you want to look for.  Doing your research on this end – before you buy the condo – can save you lots of money, time and headache.  Do your research first

Location Location Location

Is the condo you’re looking at in a prime location? Will the location appeal to a buyer in 5 or 20 years when you sell and move on? Will the condo rent well to a tenant looking for a home to lease? Is there shopping nearby, and schools?

These are all great questions, and they’re important whether you’re buying a condo to live in, or as an investment for your future. 

Location is the one part of a property that an owner can’t improve (as opposed to upgrading the kitchen, for example), so choose wisely.  Consult with a Realtor like Benjamin Bach if you have any questions about the area in Waterloo that is best suited for you.

What shape the Condo is in

Some people are looking for a fixer upper, but usually not in the condo complex they’re buying! It’s one thing if the unit you’re buying needs some ‘lipstick’ to make it pretty, but if the condo complex is in rough shape, this will cost you money (condo fees usually go up in those sorts of buildings) and make it harder to rent and resell your condo (since ‘curb appeal’ will be lower).  Buy something in a place that looks nice; you’ll do well down the road.

Is the Condo Corporation Healthy?

When we buy a condo in Waterloo like 144 Park or Bauer Lofts, we are also buying into the condominium corporation, which runs and manages the condo buildings and related issues.  So, they take care of maintenance, repairs, social/political issues within the complex and more. 

If the financial health of the corporation is not sound – they don’t have enough money in a reserve fund to cover unexpected expenses for example – they will likely come to their shareholders (all the owners) to make up the shortfall.  Having this happen every year can get tedious, so we verify the health of the corporation by reading the Status Certificate before ‘firming up’ the agreement to purchase and sell.

 For more information on condos in Waterloo or any other real estate questions,  contact Benjamin Bach @ Benjamin@BenjaminBach.com, or call me at 519-772-4376

Related posts:

Real Estate Investment Tip: Raising Rent on Rental Units in Ontario

Kaufman Lofts in Kitchener Waterloo – A Real Estate Investor’s Perspective on the Condos

WARNING: If you think an RESP will pay for your baby’s college education, you’re wrong

Would you rather have 1 condo in Kitchener Waterloo or 2 ?

An investment property for $120,000 ? I don’t believe it !

A new addition to our Kitchener Waterloo Real Estate Investment Portfolio

How to get the best deal when Investing in Real Estate

Top 10 Reasons to Invest in Kitchener Waterloo Real Estate

Do you have enough money to retire the way you want to ?

West Coast Condo Prices Sky High

New Report Released About Kitchener Waterloo Real Estate

Understanding Investment Real Estate Terms

One of the questions I get a lot is “whats the cap rate on this one?”  Real Estate Investors looking to gauge their return will often use the cap rate as a rule of thumb, a quick (but very limited) statement of value. 

What is a cap rate?  Is it a good indicator for the return you hope to generate on your return? Is there a better figure to look at?

This video takes a look at these questions, so we can better understand some commercial real estate terms

Watch the video here: Investment Real Estate Terms: Cap Rate & Cash on Cash Return or http://www.youtube.com/watch?v=5VfCIN-SqNI

Cap Rate, or capitalization, expresses the ratio between the net operating income a property produces, and the value.  It shows up, based on income, what a typical investor (or ‘the market’) is willing to pay for the income the property produces. 

Cap rate = Net Operating Income / Price (or value)

When we’re evaluating properties and we want to determine what we’ll pay for a certain apartment building, we will rework the formula to look like this:

Value = Net Operating Income / Market (or desired) Cap Rate

Cap rate does not take into the financing available, so unless you are buying a property in CASH, that is, without a mortgage, you’re going to want to factor in the cost of debt into your return calculations.

That brings us to Cash on Cash return, which is:

Cash Flow Before Taxes / initial investment

We calculate Cash Flow Before Taxes by:

Gross Rent – owner’s operating expenses – mortgage payments = Cash Flow Before Taxes.

Cash on Cash gives you a more precise return, because it accounts for the cost of the debt we use to purchase the property

If you have any questions about commercial and investment real estate in Kitchener Waterloo, Ontario, send me an email to Benjamin AT BenjaminBach.com, call me at 519 772 4376, or @benjaminbach on twitter. I’d love to connect with you!

New CMHC Mortgage Rules for Canada in 2010

I was speaking with a long time client today about the new CMHC mortgage rules and the impact they will have on investors and owner-occupants (people buying homes to live in personally).

Take a look at this video about the new mortgage rules, where we talk about how the changes to a) minimum downpayments b) qualifying interest rates c) and changes to the rental offset formula will impact property investors in Canada

You can watch the video here: How will CMHC’s new mortgage rules impact real estate investors in Canada? or

http://www.youtube.com/watch?v=-u5lFii-6p0