Duplex For Sale London Ontario, SOHO

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Pay Your Mortgage by living downstairs and renting the two bedroom apartment upstairs, great tenant who wants to stay in this well maintained duplex.

•   FOR SALE  CAD279,900 . A True Money Maker
MLS® 123305

Here you go, live inexpensively, live in the one bedroom unit on the main floor and rent the upstairs 2 bedroom with a great tenant who wants to stay! HVAC was completely installed and updated in October 2015 with two furnaces. Complete upper unit renovation, Nov-Dec 2015. Separately metered, upstairs tenant paying $850 and downstairs $750 with lots of parking. This duplex is in the up and coming SOHO district, short walk to downtown London.

Property information

London Ontario Real Estate Growth, Commercial & Residential

 

                 London Ontario’s Real Estate Market Growth & Why

   Income properties London Ontario

There is a huge demand for secondary markets like London and this is where the commercial and industrial investors are going as per this latest financial report.

With that and there being a shortage of decent rental properties, we are seeing rental rates increasing and income property prices increasing as well.

Getting a cap rate of over 6% is a challenge for residential investors, however, the long term investor’s confidence level is quite high and with the average Canadian’s debt load at its peak, the demand for rental units, be they multi-family, townhouses or apartment condos and single family homes is very strong.

We can toss and turn all night long about interest rates until the cows come home, I know from experience that smart investors buy value first and then allow the economy to catch up, even if it takes a year or two.

I, being an advocate of positive cash flow from day 1, the last paragraph was difficult for me to write!

One thing I have learned over the years is to dress to fit the change in climate, Mother Nature can be finicky and act without any warning, so can the economy, the bureaucrats and the rent review board!

Spring is here, London is expanding, interest rates are low and the door is open for those seeking good financial opportunities in real estate.

London Ontario Vacancy Rate And Rent Numbers

Average Rents London Ontario

The London Ontario vacancy rate for apartments, townhouses and houses as of February, 2018 is below 2%.

For Apartments, here is CMHC’s numbers and their 2017 London Ontario vacancy rate:

Type Avg. Rent Vacancy Rate
   
Bachelor $655 3.3%
1 bedroom $840 1.7%
2 bedroom $1041 1.9%
3 bedroom $1190 1.8%

 

Again, remember these are just averages; I have some clients who are getting $1500-$1700 for  two bedrooms and $1650-$1900 for a 3 bedroom.

energy efficient house London Ontario

My experience with townhouses mirrors what I see on MLS, decent 3 bedroom townhouses $1250-$1350 plus utilities and the last 3 we did, all leased out in 4 days! (It took 4 days because of background and credit checks)

For detached houses, the same thing, $1500 to $1800 is a sweet spot, anything over that the house better be nice, good location and in great shape. The last house we did at $2650 plus utilities was vacant for 8 days!

What does this all mean?

Wise investors will buy in any market because they are in it for the long haul, they do not care what the rest of the market is doing, and they invest because they are true investors, not hopers, flippers, dreamers or have a lack of confidence or courage as a real estate investor.

Yes, there is a shortage of quality rental opportunities at the present moment, however, there are still some decent buys and opportunities for those who grasp that vacancy rates will remain low for many, many years to come.

Income Properties in London Ontario, Missing Opportunities

Quite a few  times people looking for income properties in London Ontario miss the boat because by the time they have confirmed all the facts, or,  ‘run their numbers’ (usually erroneously), or, gathered solid information, the opportunity is gone because of other buyers or the property has been sold!

looking for real estate opportunities

I see this daily, the fence sitters, the ‘time is not right’ folks or in 75% of the cases, their analysis of the property and income is faulty, that their illusion or perception of cash flow, appreciation and risk tolerance is inconsistemt with what wise investors do!

The average real estate professional relies on what he or she  hears & perceives, a great real estate professional assimilates all the available facts, sifts out the chaff, and makes the go/no go decision on his/her ability to adhere to what I call the brutal truth.

Great investors never buy because of what the market is doing, they don’t care. It can be up, it can be down, they understand cash flow, they look at the big picture and they think long term.They buy on expectation and sell on results! Period.

As J.P. Getty said “Investors bank on climate, while speculators bet on the weather.” In other words, the real estate market works more like a barometer than a thermometer.

Getting good and accurate information and then being able to act decisively on that information is what really separates the wannabees and the wealthy.

Your boat will come in as an investor

Your boat will never come in if it never goes out.

Ty Lacroix Broker of Record

Ty Lacroix Broker of Record & Owner

 Not All Realtors Are The Same, This Is What We Do When We Work With An Investor Client

  • First Time Client Meeting: We understand that each & every client has different needs, goals and financial and risk tolerance. We spend an immense amount of time discussing, understanding and designing a systematic approach to match or even surpass your criteria. It can be an apartment condo or townhouse to rent, to multifamily to small commercial properties.
  • The Process: We then prepare a list of properties that will match your criteria and goals. We perform our due diligence on each property, verifying expenses, leases, licencing, permits, zoning, public transportation, schools, area rents, vacancies and perform our 44 point check list to ensure we are thorough. If we have a successful acceptance of your purchase agreement, (which has conditions and wording to protect you) we work closely with your lawyer to ensure he/she has all the information required to ensure the closing takes place. We even perform a final walkthrough before closing to ensure that what you purchased is in the same shape or better than when you decided on the property and that all chattels are included and  in good working condition.
  • Leases and Screening Tenants:  If you wish us to be involved in attracting tenants, doing credit checks and verifying employment and references and preparing a lease, we are very good at that. If, however, you wish to do your own tenant attraction, screening and leasing, that is fine with us, we do tenant leases only as an add on to our services. We are not Property Managers.
  • Optimizing Cash Flow & Capital Improvements: We will prepare a spread sheet outlining what you can do to maximize your investment and cash flow in the years going forward.
  • Selling: 99% of our clients are of the buy and hold mentality but weekly we are contacted by other owners asking us to sell their investment property or properties. Our selling process is even more meticulous than our buying process, the reason being, having all documentation and pro formas in place, we eliminate 90% plus of the stress in the closing period, proving that our properties sell for more and in less time!

 Search income properties for sale in London Ontario .

New Rules For Buying a Property in London Ontario With Tenants

If you have a client who is interested in buying a property, but it has a tenant, make sure to extend the closing date because the required notice days in Ontario have now doubled in length. In the past, only 30 days written notice was required to terminate a tenancy. Now it’s 60.

Landlord in London Onatrio

Another glitch: the date the tenancy ends must coincide with the end of term or rent period. This could result in a full year passing before your client can move in.

For example, if the tenant’s lease ends Dec. 1, 2018, your buyer can’t move until Dec. 1, 2018 even if the closing date is Nov. 1, 2017. And if you’re thinking of “fudging the dates” by giving less notice than is required, don’t! If the termination date is so much as a day off, the notice is invalid, and you’ll have to start all over again.

Previously, landlords have not been required to compensate the tenant if the landlord gave proper notice and acted in good faith. That’s no longer so. Section 48.1 of the RTA requires that the landlord compensate the tenant equal to one month’s rent. This amount has to be paid prior to the termination date specified on the N12 notice. This means a tenant can take the money and still refuse to leave!

Some real estate salespeople have encouraged investor buyers to buy a place and evict a tenant under the pretense that the buyer, or her family member, is moving in. Under the new rules, if the buyer gets caught, she can be fined up to $25,000. This fine can also be levied if the buyer decides to move out before 12 months are up following the date of eviction, rent it to her cousin and charge rent or demolish the place.

Given these rules, it’s important that you get a copy of the tenant’s lease. This way, you can gauge when your buyer can move in and how much she’ll have to pay the tenant to move out.  It’s also important that you always use the updated forms found on the Landlord and Tenant Board’s website, because the previous forms are no longer valid.

To avoid extortion by the tenant – a practice whereby tenants demand money in order to move – make sure that your buyer, once she becomes the landlord, files an L2 application and obtains an order terminating the tenancy pursuant to the notice prior to the termination date. Ensure that the order references the payment so that it is documented that you will be providing the tenant with proper compensation. Getting an order in place speeds up the process if the tenant refuses to move following the notice date and prevents the tenant from extorting the landlord by demanding more and more money in order to move out.

While affordability is an issue and the housing reforms attempted to solve this matter, the reforms have disproportionately hurt landlords and those who are scrimping and saving to buy a home. As such, buyer agents, as well as seller agents, must be aware of these financial and practical changes. They can destroy a deal.

The above was written by   Natalka Falcomer  a lawyer in the GTA area

 Another interesting tip about investing in London Ontario

Want To Sell Your Income Property In London Ontario?

Thinking of Selling a Multi-Family Residential Property in London Ontario & Area?

 Over the past few months there has been a shortage of good quality duplexes, triplexes, four-plexes and 6-12 unit properties in London and area.

All the ones I had were sold or are conditional  from 27 units and down and I have 7 registered buyers, (pre-approved for financing and experienced) that are looking to buy, actually more than looking, real serious, no nonsense types who can make a decision within 24 hours.

Do you want to take advantage of my seven or of the Realtors from the GTA area begging me to find their buyers a property?

Now, do not get me wrong, my investors are not wishy washy or unwashed, they want to see value or be able to create value and they are long term investors so they are not interested in drastically overpriced properties, junk or cap rates below 6%.

Stress Test for Mortgages

Come 2018, the stress test for mortgages comes into effect and I am hearing from mortgage providers that there be fewer buyers that will be able to pull the trigger on a purchase.

That is good news for my buyers, the stress test has little effect on them and will actually be better for them, less buyers, less competition.

So, if you have a property you want sold without a song and dance process, contact me, I don’t sing and the only time I dance may be if there is amber liquid around and that is very unlikely as well.

Ontario Landlords Can Increase Rents 1.8% in 2018

1.8% Rent Increase Allowed for Ontario Landlords in 2018

Ontario Landlords

Ontario Minister of Housing Chris Ballard announced that the 2018 provincial rent increase guideline has been set at 1.8%, up .3% over the current year.
The annual rate of increase is based on the Ontario Consumer Price Index, a measure of inflation that reflects current economic conditions affecting the
cost-of-living.
As in previous years, this amount is the maximum that a tenant’s rent can be raised without approval from the provincial Landlord and Tenant Board, and applies to all new rent increases made between January 1 and December 31, 2018; it is also retroactively effective as of April 20, 2017.
Unlike previous years, however, the ministry’s annual rent control guidelines have now been expanded to include all private rental units, including those built as tenant-occupied premises on or before November 1, 1991.
This anticipated change results from the recently-passed Rental Fairness Act, 2017 that was introduced to protect an estimated 250,000 Ontario renters living in pre-1991 units from unreasonable and/or unpredictable rent hikes.
Ballard, who is also the minister responsible for Ontario’s Poverty Reduction Strategy, said the aim of the expanded 2018 rent increase guidelines is to make the housing market fairer for all, “ensuring that everyone in Ontario has the peace of mind they need…”

 

Please visit
to read the entire Government of Ontario announcement.

Income Property For Sale in Downtown London Ontariuo

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London Ontario Income Property

•  multiplex – FOR SALE  1279000 CAD . Income Property
MLS® 605286

A very solid 12-plex in good condition. All 11-2 bedrooms renovated within the last 3 years including new kitchens, fridges & stoves. Bathrooms have new tub surround, fixtures and vanity.

New vinyl flooring throughout. Building has new windows (all but 2).

Bachelor unit not in use.

Separate meters, security cameras & controlled entry .

Tenants pay own hydro, separate meters, Coin-op laundry (owned).

Ample parking and on direct bus route.

Some Numbers: $120,900 income based on 3 units at $825 and 8 units at $950.00 plus utilities
For the last 12 months, $3763 Heating, $3695 insurance, $6,380 water and hydro, taxes $23,864 = $37,702

Property information

Income Properties London Ontario

Just so you know, if you can’t find London Ontario income properties that you want, have you considered other alternatives in finding the right one for you?

Remember, you may NOT be seeing all properties for sale with the email notifications from the other various search websites you may be  registered with. For example:

  •  Houses with granny suites will not be shown
  • Great condominiums such as townhouses or apartments you can make some money on.

 I have access to properties for sale that are not listed for sale on MLS (Property owners have asked us to help them sell, but there’s few days lag time before they are searchable on MLS or they are doing a few bits of tidying up)

 Note:

I do not just sit around and wait for properties to become available for sale, I’m a hunter.

Here is another way to see income properties as well.

 

Frustrated Buying London Ontario Properties?

Are you spending countless hours searching the MLS, real estate magazines, weekend classified ads and real estate websites looking for the ideal home for a great price and in a great neighbourhood in London Ontario?

looking to buy a house in London Ontario

 

If you enjoy doing that, great. Are you aware you may be missing out on some great homes that sell in a day or two or a home that was priced quite so agressively that it sells as soon as it comes on the market or on a specific street?

Do you think you will get a head jump on others by searching daily or weekly? Avoid paying commissions? Avoid a pesky or bothersome real estate person (don’t blame you)?

Or, perhaps you are curious or you are in the ‘just thinking stage’ of real estate. Perhaps to purchase or sell.

Regardless, real estate changes, people change, neighbourhoods change, real estate markets change and the motivation of buyers and sellers change.

So how do I, as a real estate professional, as a Broker of Record and Owner keep you, the curious, the maybe, the must have by the end of the month, the retiree, the downsizer, the upsizer, the DINK’s (double incomes,no kids), the tire kicker, deal maker, bread winner or just plain ready to move informed about real estate in London Ontario?

My asociates and I view a lot of houses and condos every week. We do loads of searches daily for clients, we are constantly researching properties, even For Sale By Owners.

we  find houses in London Ontario

My tastes are different than yours, my taste in neighbourhoods, price affordability, style of home, school district, what side of the tracks, how close certain amenities are and I bet, hundreds more.

As professional house hunters in London we know the jungle, the alleys, the streets, avenues, crescents  and can guide you on the right path to ensure your purchase is wise & financially sensible.

Love it or Leave It” London Ontario’s Only Home Buying Guarantee

100% Home Buyer Guarantee

If you obtain a home through Sutton Group Envelope Real Estate Brokerage and you are not 100% pleased with it, we will sell your home for you for FREE! We offer this guarantee within the first 24 months after you purchase the home.

Why? 

We want you to be totally satisfied with your home and will do everything to get you into a home that you will love…Guaranteed!

We are confident that we have the ability to listen to you and to being dedicated in finding the “Perfect Home” for you.  We take 100% responsibility; we offer no excuses and no finger pointing.

That’s why we are willing to work for FREE if your home isn’t everything you expected it to be.  You have nothing to lose,

There is some fine print and here it is:

This home buying guarantee excludes commercial properties, investors & students.

You won’t have to jump off any cliffs, scale any mountains, wrestle a crocodile, put up with a pushy real estate salesperson, cross-eyed lawyers, impotent mortgage lenders, near sighted home inspectors, all you have to do is put up with me!

Ty Lacroix