Income Properties Near Western University

Income property near Western University while your child attends UWO?

Every year I get emails from across Canada & Europe from parents of students who will be going to Western or other facilities near UWO (The University of Western Ontario).University of Western Ontario

They are looking for a decent home that they can live in while attending Western, plus, have some room mates to offset the costs.

How about a 6 bedroom house, 5 1/2 years old, all the amenities and a few minutes to Masonville Mall and UWO?

For only $429,000! Or a nice 3 + 1bedroom townhouse, 5 minutes away for $299,000 or an upscale highrise apartment condo, 2 bedrooms for $359,000?

Here’s more.

Again, starting from $149,000 and up, there are many options to fit your budget and now is the time to start thinking about it and taking action.

When you do the math and think about what your child’s living cost will be for for the next few years and you can offset some or all of those costs, that is nice! It even gets better if inflation and appreciation occurs!

Of course, there are risks and that is why these clients employed me as their Realtor, I know the values, the neighbourhoods and the safety aspects of your child living away from home.

Can You Make Money Buying a Townhouse Condo in London Ontario?

Over the last 6 months I have worked with 7 Millennials  who wisely bought either a condo apartment or a townhouse in London Ontario and had help in reducing their living expenses and for two of them, earning about $200 month over their mortgage, taxes, utilities and condo fees!

Millennials but Townhouse Condos London Ontario

How did they do it?

Not to make this a 30 minute dissertation on buying a condo in London Ontario and for brevity sakes, here is how one did it.

He works for a gaming company here in London and by his words, a ‘nerd’. He had been following my blogs and website for 8 months and finally emailed me that he was thinking about buying a house or a condo in London.

We met in my office and went over his perceived criteria, his fears , financing and his ideal property for resale because he felt headhunters would be coming after him in a year or two and wanted to ensure that if he sold his property, he would not get fleeced too much.

nerd buying a condo in London Ontario

After doing what I call ‘Market Education’ (we looked at 3 houses in various parts of London & 4 condos, 2 apartments and 2 townhouses) we then sat down again and he was much more informed what he could afford and the style he preferred. He chose a townhouse because of the long and weird hours he was working and thought a hammer was a female hamster! (I s**t you not!)

At his work, his company is growing rapidly, people coming and going and we discussed about how he could maybe rent out a room and still have privacy, yet help in paying down his mortgage.

Well, that was a no-brainer! He had 5 co-workers who jumped at the idea. I helped him buy a 3 bedroom townhouse for a good price that offered some  individual privacy and a place that was move in ready.

His mortgage payments, condo fees and taxes came to $912 per month ( he was paying $850 a month for a dinky apartment) and got a co-worker to rent a room for $500 per month and share the utilities! Also, I suggested he meet with one of the lenders I use, ( he said he was pre-approved by a mortgage broker , I said he should get another opinion), which he did, and he saved .7% in interest fees, less hassles and did not have to spend 13 hours filling out forms, documents and what colour socks he wore!

Who’s the nerd now?

 He was so pleased in how the whole process worked, he referred me to some of his co-workers, even one of the co-founders of the company. They are happy and I am happy!

happy nerd buying real estate London Ontario

  You can be too!

 Note: He just got a 2016 year end bonus and has used it as a down payment on another town house!

London Ontario Landlord License, Who Needs One?

Over the past few months I have spoken to many landlords who wish to sell their London Ontario income properties and of course, many buyers as well.

When the topic of a landlord’s license comes up, it is like a deer staring in the headlights! Some say they were not aware of one, or those who were aware, were quite wrong in their presumptions and interpretation of the by-law.

Landlord License London Ontario

To ease the confusion, here is who does not require a license:

This By-law shall not apply to:
(a) a Rental Unit in an Apartment Building, a Stacked Townhouse or a Townhouse;
(b) a Rental Unit that meets all of the following conditions:
(i) the Rental Unit constitutes the principle residence of the registered owner;
(ii) the Rental Unit is temporarily rented by the registered owner for a period of time no greater than 12 consecutive months in any 24 month period;
(iii) the Rental Unit was occupied by the registered owner immediately prior to its rental;
(iv) the registered owner of the Rental Unit is temporarily living outside of the Municipality; and,
(v) the registered owner intends to reoccupy the Rental Unit upon termination of the temporary rental.

So there you go, sleep better or are you more confused?  Read the full by-law. 

Note: If you are selling an income property in London without a  landlord license, you could end up  jeopardizing the sale or prolonging the closing and in most cases, a good Realtor will insist a clause be in the offer that you, the Seller, will provide a valid license on or before closing  to the Buyer

Properties Near University of Western Ontario

 My Top 5 Properties Near University of Western Ontario 

Top 5 income properties University Western Ontario

As of Decembr 7, 2016 there are 26 income properties for sale near the University of Western Ontario. Not all of these are on MLS, I have clients who are in the process of cleaning up their  properties or in the thinking process of selling soon!

Because of the volume of business I do, I get to see quite a few properties and know what a good income property is. It must have positive cash flow, a history of low or no vacancies, in reasonable shape & be free of any major defects or 1-7 year major upgrades necessary.

 

   Size   Asking Price Reported Monthly

Income

                Description
6 bedrooms $329,000 $2785 Fully licensed walking distance to UWO,  3 bathrooms, 2 kitchens, new windows(2009), furnace (2008), roof (2015), A/C (2015) Leased April 2017
5 bedrooms $397,000 $2625 Licensed, short walk to Western, solid brick, recent upgrades, leased May 2017
4 bedrooms $409,000 Owner Occupied 3 + 1 bedrooms, electrical, furnace, air, roof all within 3 years, on bus route, 5 minutes to Western
3 + 2 bedrooms $400,000 $2500  Licensed, newer high efficiency furnace and a/c, updated electrical, Kitchen upgraded, Hardwood flooring throughout main floor, Lower level completely renovated throughout. Leased until April 30th 2018, $2,500 monthly income plus utilities
4-2 bedrooms $499,000 $3200 Licensed, kitchen, windows, furnace & air, bathrooms all upgraded last 3 years, 5 minute walk Western, leased April 2017 and 5 of the tenants want to stay another 2 years

Note: Due diligence is a must here concerning income, expenses, licenses, inspection reports, zoning and risk!

        MyTop 10 Condos Near University of Western Ontario 

Top 10 condos near UWO

Style  Asking Price Bedrooms  Description
Apartment Highrise $335,000  2 Hardwood through out, 5 appliances, balcony, 7 minutes away, underground parking
Townhouse 279,900 3+2 Finished basement, garage, 10 minutes away
Townhouse $275,000 3 Double garage, master ensuite, finished basement, 5 minutes away
Townhouse $310,000 4 garage, 2 + 1 bathrooms,
Apartment Highrise $255,000 2 3 year old building, underground parking, 10 minutes away
Apartment Highrise $210,000 2 5 appliances, decent view, 6 minutes away
Townhouse $386,000 3 +1 Double garage, finished basement, Masonville Mall area
Townhouse $330,000 3+2 Double garage, finished basement, Masonville Mall area
Townhouse $298,000 3 + 1 Very clean, single garage, finished basement
Townhouse $359,000  3 + 1 Master ensuite, finished basement
Apartment Highrise $299,000 2 + den Immaculate

Note: I have not included any of the condos in Downtown London, or high end townhouses , detached one floor condo townhomes, or free hold condos across the city.

You can see any condo, house or income property that is listed on MLS  by going here.

What is The London Ontario Condo Market Doing?

Every day I get asked these 4 questions about the London Ontario condo market.

  1. “What is the London Ontario condo market doing?”
  2. “When is the best time to buy or sell a condo?”
  3. “How much should I offer?”
  4. “What should I list it for?”

London Ontario Condo Market

The first step in answering any of the above 4 questions is knowing how the London condo market performed and the chart below for the period January 1, 2016 to December 7, 2016  does.

Quantity Style Average Selling Price % of Selling Price to Asking Days on the

Market

421 Apartment High Rise $175,051 98% 56 days to sell
109 Apartment Low Rise $114,643 96% 58 days to sell
815 Townhouses $173,968 98% 36 days to sell
227 One Floor Attached $285,069 99% 42 days to sell
46 One Floor  Detached $387,881 98% 50 days to sell

From my experience in helping educate Londoners about condos in London, these averages may not hold true for your building or complex.

Why?

My last 4 condos I sold sold for full price and were on the market less than 5 days!

Before buying a condo in London or selling a condo in London, you may want to get what I call “brutal truth factual numbers” about what prices are today and not an opinion where prices are heading or what someone received for their unit 6 months ago.

Price, condition, style and location dictates what a condo sells for and how long it will take to sell. For buyers, you will be assured of not over paying and for condo sellers, you will not leave money on the table or over price your condo because of blind optimism or false perceptions!

I’m a numbers person first, then a guidance councillor about quality, style and location and then lastly a Realtor who can negotiate from strength!

Works every time!

Student Properties Near University of West Ontario Mistakes

 I was discussing with a good client of mine about student properties near  University of Western Ontario & the common mistakes or errors  that some owners may not be aware of ;or; if so, sticking their heads in the sand and pleading ” there’s nothing I can do”!

head in the sand

Over the past 2 weeks I have been fortunate to have helped 5 buyers who wanted to either buy a 4-6 bedroom house near Western for an investment or to have their son or daughter move in and have their friends move in as well and build some equity or cover some of the expenses of getting an education.

Two wanted a medium to high end  condo near Western for one of their children and if they wanted a friend to move in, they could.

I have seen these mistakes before but these buyers had not and the most common comment I heard was :

“Do they really want to sell this building (condo)?”

 mistakes selling student housing

Other than price and condition of the properties I showed, here were the biggest drawbacks as to why we did not put in any offers or even consider putting in an offer.

  • The listing Realtor never called us back! Wow, you as an owner and your Realtor has a $477,000 property and they don’t call you back? After 3 attempts? (By the way, that building is still listed for sale!)
  • My clients and I arrive but can’t get in to see the rooms. The tenants say they were not notified or given enough notice.  Whether the tenant is right or not, it would behoove me as a landlord or the Realtor to ensure that ALL tenants are notified and reminded before a showing, either by email, text, in person, smoke signals, notice on the door, telegram, fax, morse code or even pokemon !
  • In some of the 4-6 bedroom houses,  we can only see one or two bedrooms because the keys we have  don’t work!
  • The stated rental income is unrealistic or the comment “If fully rented, the potential rent is”. In my experience, tell it like it is, someone willing to buy your property is not dumb or lazy, and they want real numbers, not B.S.
  • Will not cooperate with a Fire Marshall’s report or ESA Certificate, or, is not a legal duplex or triplex and then their Realtor or owner  try to tell me, “Don’t worry, it’s been like that for years, nobody will ever find out”. Yeah, right!paperwork income properties
  • In one condo we saw, the condo fees were out $113.00, there was only one parking spot instead of two!
  • Listing with a Realtor who did not have a lot of experience with investment properties. Residential listing and investment listings, even condo listings  are quite different, they can be more complex and it takes a different skill set to handle.

The above are just a few challenges while seeing properties, I haven’t even got to the offer stage yet!

As well, there was  incorrect information as to property size, room sizes, taxes, etc. Or, outstanding work orders from the city, or city violations to building code, or that there are 3 mortgages and liens on the building!

I take the attitude that I and my clients cannot change the condition or the situation we are dealing with so it is unlikely any emotion will be helpful. I can’t change the obstacles, that part of the equation has already been set, however, how I approach them to find a solution is something that my clients and I can control!

So at the end of the day , my clients were successful in finding what they were looking for and the price point they were happy with.

If it sounds like I am ranting against the disorganized, the lazy, the unwashed people who represent property sellers, I am. I also praise and thank the professional who is organized, cares, is diligent, knows the facts and is willing to make the effort to ensure a transaction gets done.