Category Archives: Misc

CTV News looks at why Kitchener Waterloo tops REIN top 10 list

Local News looks at Why REIN named Kitchener Waterloo #1 place to invest in Ontario

by Benjamin Bach

Last night CTV ran a story on the recent Real Estate Investment Network report naming Kitchener Waterloo (or KW) the #1 investment destination for real estate investors in Ontario (see: Top 9 Reasons You Should Invest in Kitchener Waterloo Real Estate).

I spoke with CTV at the Keller Williams office yesterday morning, and they also spoke with a client, Stephen Litt on site at the Arrow Lofts development.  They ran the segment on the 6pm news, and again at 11.

Related posts:

  1. Top 9 Reasons You Should Invest in KW Real Estate KW Tops REIN Top 10 List Kitchener Waterloo is Ontario’s…
  2. Kitchener-Waterloo Employment Growth outpaces rest of Canada in July KW Employment Growth up 7.8% Some encouraging news for real…
  3. Two Waterloo Region Apartment Buildings Sell For $45+ million (…and we have many clients looking to buy big apartment buildings…
  4. Why we invest in Kitchener Waterloo Real Estate Yesterday I had the chance to sit down with two…
  5. Why I like Investing in Real Estate I was speaking to a good friend of mine recently,…
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New Mortgage Rules for Investment Property in Canada, Down Payment Requirements go up

Mortgage Rules & Down Payment Requirements in Canada for Investment Properties

We’ve been talking a lot recently about CMHC’s new changes to mortgage rules and down payment requirements for investment property.

This morning, the Globe and Mail has a story that I’ll file under “Ya Right…”

Limited impact seen from mortgage rules

Ottawa’s tougher mortgage rules have sparked a rush by home buyers to get in before the new regulations take effect Monday, but may not dampen the real estate market to the extent observers believed.

“When the new mortgage insurance rules were announced, there was widespread expectations that this could help to cool the market,” said Toronto-Dominion Bank economist Craig Alexander. “But the true impact should prove limited.”

The rule that was expected to have the most widespread effect says all borrowers must meet the qualification standards for a five-year fixed-rate mortgage, even if they choose a variable-rate mortgage or one with a shorter term.

Wrong – the change that will have the biggest impact is that CMHC is now making real estate investors put down 20% on an investment property (up from 5%), meaning many prospective property investors will not be able to get into the market.

The government designed the new rule to help ensure that homeowners will be able to afford their mortgage payments when interest rates rise. Rising rates are less of a worry for a borrower who has locked in for five years than for those who have three-year mortgages.

“The government stressed that the rule changes were not to deflate the housing market, but rather to diminish speculation and provide greater incentive for buyers to take mortgages that were less vulnerable to rising rates,” Mr. Alexander said.

I think the change to the mortgage rules that the article talks about – making people be able to afford the fixed rate 5 year payments, even if they take a variable rate mortgage – is a good thing for most people.

The bad changes are the ones not mentioned here.

As Robert McLister said this morning on twitter ““The true impact [of the new mortgage rules] should prove limited,” says TD. Yeah…as long as you don’t need a variable or rental mortgage.”

For questions about the current real estate market in Kitchener Waterloo, call me now at 519 772 4376, or email me at Benjamin@BenjaminBach.com

Related posts:

  1. CMHC Mortgage Regulations to Restrict Real Estate Investment I’ve been hearing rumours recently that CMHC was changing their…
  2. How will CMHC’s new mortgage rules impact real estate investors in Canada? I was speaking with a long time client today about…
  3. Update: Kitchener Waterloo Real Estate Market, March 2010 Monthly/Yearly Kitchener-Waterloo Real Estate  MLS Stats for March 2010 – Residential KW…
  4. For the video-inclined: Kitchener Waterloo Real Estate, March 2010 We just looked at the statistics for the Kitchener Waterloo…
  5. What is the Bank of Canada doing with mortgage rates? Many people are speculating that the Bank of Canada will…
  6. New Mortgage Rules for Real Estate Investment in Canada My wife and I are in the Carribean this week…
  7. Kitchener Waterloo profiled in Canadian Real Estate mag’s “Areas Set To Boom” The recent issue of Canadian Real Estate magazine has a…

Want to Invest in Kaufman Lofts in Kitchener?

…here is some information you’ll need!

A real estate investor recently asked me why people like buying condos at the Kaufman Lofts in Kitchener, Ontario

Between the terrific location (across from the new Health Sciences campus at the corner of King and Victoria St in downtown Kitchener), the iconic nature of the property – Kaufman Footwear has been there since the early 20th century – and the premier rents the condos generate, they can make a great real estate investment.

Along with desireable addresses like the Bauer Lofts and 144 Park in Waterloo, Kaufman Lofts are a premier building in the region. 

Click Play to watch the video. This looks at the reasons investors like buying condos here, and goes through the potential cash flow that the rental unit can generate.

Let’s assume a real estate investor is looking at a 1 bedroom condo here. There are units available around $180,000 – a unit at this price is amongst the smallest available, but still in demand by buyers and tenants alike.

(These figures are all projections. Contact Benjamin for a personalized consultation)

kaufman lofts real estate rental analysis

The sheet above (click to enlarge it) shows us the assumptions we’re using:

$1200 a month in rent

$3000 condo fee and $1700 in property tax annually etc.

It also shows us the mortgage options – this investor is using a 20% downpayment, and getting a 80% LTV (Loan to Value) mortgage.

Now let’s look at the cash flow (click to enlarge):

kaufman lofts real estate rental analysis 2As we can see, a Kaufman Loft can generate a positive cash flow for a real estate investor, based on these figures.

Over 20 years, what will your return on equity be? Let’s look at another cash flow projection:

Click to enlarge

For more information on Kaufman Lofts and other condos in Kitchener, contact Benjamin Bach @ Benjamin@BenjaminBach.com, or call me at 519-772-4376

Why do Real Estate Investors like the Kaufman Lofts?

by Benjamin Bach, the Wealth Team on 10. Apr, 2010 in Featured Articles, Real Estate Investment, kitchener waterloo { Edit }

A real estate investor recently asked me why people like buying condos at the Kaufman Lofts in Kitchener, Ontario 

Between the terrific location (across from the new Health Sciences campus at the corner of King and Victoria St in downtown Kitchener), the iconic nature of the property – Kaufman Footwear has been there since the early 20th century – and the premier rents the condos generate, they can make a great real estate investment

Along with desireable addresses like the Bauer Lofts and 144 Park in Waterloo, Kaufman Lofts are a premier building in the region.  

Click Play to watch the video. This looks at the reasons investors like buying condos here, and goes through the potential cash flow that the rental unit can generate.
A real estate investor recently asked me why people like buying condos at the Kaufman Lofts in Kitchener, Ontario 

Between the terrific location (across from the new Health Sciences campus at the corner of King and Victoria St in downtown Kitchener), the iconic nature of the property – Kaufman Footwear has been there since the early 20th century – and the premier rents the condos generate, they can make a great real estate investment. 

Click Play to watch the video. This looks at the reasons investors like buying condos here, and goes through the potential cash flow that the rental unit can generate.
 

Let’s assume a real estate investor is looking at a 1 bedroom condo here. There are units available around $180,000 – a unit at this price is amongst the smallest available, but still in demand by buyers and tenants alike. 

(These figures are all projections. Contact Benjamin for a personalized consultation)
 

kaufman lofts real estate rental analysis 

The sheet above (click to enlarge it) shows us the assumptions we’re using: 

$1200 a month in rent 

$3000 condo fee and $1700 in property tax annually etc. 

It also shows us the mortgage options – this investor is using a 20% downpayment, and getting a 80% LTV (Loan to Value) mortgage. 

Now let’s look at the cash flow (click to enlarge): 

kaufman lofts real estate rental analysis 2As we can see, a Kaufman Loft can generate a positive cash flow for a real estate investor, based on these figures. 

Over 20 years, what will your return on equity be? Let’s look at another cash flow projection: 

Click to enlarge 

For more information on Kaufman Lofts and other condos in Kitchener, contact Benjamin Bach @ Benjamin@BenjaminBach.com, or call me at 519-772-4376 

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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

VIDEO: 2009 Kitchener Waterloo Real Estate Market Update

A lookback on the 2009 real estate market in Kitchener Waterloo.  Record sales in the third and fourth quarter

VIDEO: Kitchener Waterloo Real Estate Investment – Student Housing

Click play for information on investing in student rental investment properties in Waterloo, Ontario

New Real Estate Investment blog!

BenjaminBach.com Kitchener Waterloo Real Estate Investment Blog logo

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 videNeo


Real Estate Investment Tip: Raising Rent in Ontario

Real Estate Investors in Ontario know there is a cap on an annual rent increase.  This is governed by the Residential Tenancies Act, 2006.

Did you know that not all rental properties are subject to this ?  Our clients are investing in Kitchener Waterloo properties with an important piece of knowledge – Do you know it ? Watch the video at this link to find out!

VIDEO: Real Estate Investment Tip: Raising Rent in Ontario

Do you have questions about being a landlord ? Email Benjamin at Benjamin(AT)BenjaminBach.com with your questions!

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Related Links:

Ontario Residential Tenancies Act, 2006

Landlord and Tenant Board

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

Free Workshop on Investing in Kitchener Waterloo Real Estate

As I just mentioned over at my Real Estate Investing blog, I’m happy to announce that I am opening registration of my upcoming Millionaire Real Estate Investment workshop to the general public. There are only 20 spots, and a little under half of the seats are spoken for already (translation: ACT NOW, SEATS GOING FAST).

If you’ve ever wondered about how you can get started investing in real estate, or wanted to know the best practices of Millionaire Real Estate Investors, you need to register for the workshop.

I will be talking about what you need to do to start your portfolio, the professionals you’ll need to grow your investments, as well as some specific opportunities in the Kitchener Waterloo region.

Anyone can do it, not everyone will.

WHEN: Thursday January 10th, 7:00-8:30pm

WHERE: Keller Williams offices, 871 Victoria Street North, Kitchener Ontario. You can email me for directions.

You must register to attend, and there is no cost for registration. You can register by calling me at 519 570 4447 or emailing me at Benjamin(AT)BenjaminBach.com

A $5 charge at the door will apply, but the workshop is free with registration.

See what others are saying about building wealth through real estate investing:

“Benjamin is an expert in the field of investment real estate. He is highly knowledgeable and a great speaker on this topic. He does an excellent job going through the process one on one and has worked very patiently with me. It doesn’t take long before you realize that he truly works hard to help make other people wealthy and successful…stays true to his life mantra. I strongly recommend Benjamin if you’re looking for person to help you build your wealth!”

Every time I hold a workshop, I help someone change the way they think about building and accumulating wealth. I’d love to help educate you on how you can become a millionaire and retire rich. Call or email me today and register for the workshop.

Benjamin Bach Cartoon

Kitchener Waterloo’s Favourite Real Estate Agent (Gold Award, Kitchener Waterloo Record Readers Select Awards 2007 – 2008) wants to show you how Real Estate Investing can make you wealthy. Benjamin works with people from across Ontario and Canada, helping them build wealth through smart real estate investments.

Benjamin is a Sales Representative with Keller Williams Golden Triangle Realty in Kitchener Waterloo and would love to answer any questions about buying or selling a rental, income or investment property.

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