Don't have enough money saved for a down payment? SoHo Lisgar Has A Solution

The holiday season is upon us and budgets are tightening up - everyone is looking for the best deals or the hottest sales of the year, and if you're in the market for a new condo, condominium developer Mastercraft Starwood is offering a pretty special and unique promotion to help those that may not have a large ammount of money save for a deposit, something that most new home builders require.  For as little as $5,000 as an initial deposit, you can purchase a brand new luxury condo at their downtown location, SoHo Lisgar.  Here's how it works:

Once you have decided on one of the 13 remaining suites (there are 1 bedroom, 1 bedroom + den, & 2 bedroom condos still available) all you need as a minimum deposit is $5,000 - the regular deposit is 15% due over 90 days.  After 1 year you will need to put down the balance of a 5% deposit combined with evidence of a mortgage that covers the remaining 95% of the purchase price. During that year you will lease the condo from the builder for 1 year at market rent - starting at $1,560/month for 1 bedrooms and $2,150/month for 2 bedrooms.  But here's the catch, half of your rent will be credited towards the balance of the 5% deposit owed.  So effectively, you would be renting a downtown 1 bedroom condo at $780/month or 2 bedroom at $1,075/month!

Let me demonstrate this promotion is greater detail.  For this example I'm going to use SoHo Lisgar's 'D1' plan - a 922 sq. ft. 2 bedroom/2 bathroom condo (you can view the floor plan here).  The purchase price on this particular suite starts at $437,900 (incl. HST), and as I mentioned above, the monthly rent would be $2,150.

Price.......................................................................................$437,900
5% Deposit...............................................................................$21,895  ($437,900 x 5%)
Monthly Rent..............................................................................$2,150
Initial Deposit..............................................................................$5,000
Remaining Balance of 5% Deposit.............................................$16,895  ($21,895 - $5,000)
         Total Rent Paid After 1 Year............................................$25,800  ($2,150 x 12)
         Credit Towards 5% Deposit.............................................$12,900  ($25,800/2)
Remaining Balance of 5% Deposit Due After 1 Year....................$3,995 ($16,895 - $12,900)

Now let's say you are a buyer who's intrigued by this promotion, but that four-letter word scares you: RENT.  Even if half of it is being credited towards your purchase, you still can't stomach handing over a monthly rent cheque.  I can relate, I was raised to believe that renting (a.k.a. paying someone else's mortgage) should be avoided if at all possible.  So, what do you do?  Is this promotion a waste?  Hardly.

The first condo I ever lived in was a 2 bedroom/2 bathroom condo approximately 1,000 sq. ft.  I wasn't into paying a lot of rent, but I needed a roof over my head, so I rented out a room for $900/month, approximately cutting my rent in half (Sound familiar??).  The $900/month I wasn't paying in rent I put away in a savings account that I ultimately used to help fund my next real estate purchase - which is essentially what SoHo is doing with this new promotion.  But let's run the numbers again with this additional income coming in from "Roommate Rent", and since this two bedroom condo at SoHo is slightly smaller than the one I rented, let's lower the "Roommate Rent" to $800/month.  I know what you're thinking '$800/month can't possibly change the outcome that much, can it?'  I'll let you be the judge.

Price.......................................................................................$437,900
5% Deposit...............................................................................$21,895  ($437,900 x 5%)
Monthly Rent..............................................................................$2,150
Initial Deposit..............................................................................$5,000
Remaining Balance of 5% Deposit.............................................$16,895  ($21,895 - $5,000)
         Total Rent Paid After 1 Year............................................$25,800  ($2,150 x 12)
         Credit Towards 5% Deposit.............................................$12,900  ($25,800/2)
         Total "Roommate Rent" After 1 Year..............................$9,600  ($800 x 12)
Remaining Balance of 5% Deposit Due After 1 Year..................-$5,605  ($16,895 - ($12,900+$9,600))

You read that correctly, between this new promotion and by adding a roommate into the mix, you won't have to pay the remaining balance out of your own pocket.  In fact, you will have a little over $5,000 extra that you can use to increase your deposit (if you're prudent with your money) or maybe take a very nice Caribbean vacation for 2 (if you're less prudent).  Plus, in a condominium building like SoHo Lisgar, you will experience other savings as well: no more monthly gym fee (SoHo Lisgar has a professional Dalton Brown gym, complete with all the exercising essentials - NOT your typical condo gym), cut down on your entertainment costs (host your own movie nights in the 24-seat private theatre) and trim back on your relaxation or spa budget (as part of the 7,000+ sq. ft. of hotel-inspired amenities, you will have access to the exterior lap pool, hot tub and indoor sauna).

For more details on this promotion or to learn more about the SoHo products, don't hesitate to send me an email.

Thanks for reading.

Taylor Bennett
Sales Representative - Bennett Property Shop Realty
www.BennettPros.com
Taylor@BennettPros.com
@OttawaTails

Condo Surplus in Ottawa? - Another Side of the Story (Part II)

If you read my most recent post (click here if you haven't) I have decided to take a page out of Ben Myers' of Fortress Real Developments playbook and started to dissect various news pieces that focus on the Ottawa real estate market.

In my last post I attempted to shine some light on the discrepancy in the number of condominiums listed for sale this year versus 2011 in a CBC Ottawa News article published last month - I invite you to read it here, if you haven't done so already.  Due to the apparent increased number of condominium listings, the author concludes that prices will be dropping.  In fact, according to the article, not only will prices be dropping but in some cases entire condominium projects are shutting down due to lack of sales.

In today's post I'm going to focus on some of the specific condominiums the CBC article used as examples to illustrate this supposed failing market.

The first example mentioned in the article is Ron Hu. Who is Ron Hu? - I have no idea.  All I know about him is that he purchased a condo "close to the By Ward Market" with his wife, who is a real estate agent, and they put $40,000 of renovations into the condo that they haven't been able to sell in 6 months.  At first glance this certainly sounds like quite the horror story - the couple have not only been unable to recover their $40,000 of renovation costs, but their also incurring more and more costs every month the property doesn't sell; definitely not the most pleasant situation to be in.  But there are a lot of details missing in this story:
Have either of them invested in real estate before?  This can make a huge difference.  Like trying anything new, if investing in real estate is foreign to you, you're more likely to make mistakes.  Being mentored or advised by an experienced or professional investor is something I recommend all novice investors should seek. Even if you're licensed to sell real estate, it doesn't mean you have the necessary knowledge to be a savvy investor, it only means you have easier access to such knowledge.
Have they ever renovated a property before?  As I mentioned above, if renovating is new territory for them, they're more apt to make an error.  And when you make a mistake renovating, it can usually end up being quite costly.  Again, this is an area where expert advise is priceless.
Where was the $40,000 of renovations spent?  Anyone who has ever renovated a property with the hopes of flipping it for a profit can tell you that spending money is the right or wrong places and make or break your real estate investment.  You need to know which areas to improve and which areas to leave as-is before taking on such a project.  You also don't want be guilty of superadequacy - also known as over-renovating; although some additions may look great, if the market place isn't demanding such a feature the cost may not be recoverable.
And where exactly is this condo located?  "Close to the By Ward Market" is quite ambiguous.  For those of you unfamiliar with Ottawa, the condo could very well be located in Vanier, Centretown, Ottawa U campus, Chinatown, Mechanicsville, Gatineau (the closest Quebec city to Ottawa), or a number of other neighbourhoods near the By Ward Market - some of these neighbourhoods are great and would yield a great return on your investment, while others are just starting their gentrification process and it'll take more time to turn out a profit.  As the old saying goes, the three most important factors about real estate investing are: location, location, location.

If the author of this news piece had chosen to use a subject that was a known or experienced real estate investor, this story would certainly have had much more impact.  But just as they hand-picked a random "investor" who didn't get the return he was looking for, I could easily find you a successful real estate investment story where, with the proper guidance and knowledge, they were able to get the results they wanted.

The author then moves on to some of the new condominium sites in Ottawa - The Bowery (being built by Richcraft Homes formerly known as The Edge.  It was recently re-branded and hosted a pre-launch last weekend - as of Nov. 14 over 15% of the project reserved), Claridge Icon (being sold by Claridge Homes at the corner of Carling Ave & Preston St. - as the CBC article states, they have only sold approximately 10% to date), and The Rhombus (a cancelled project that was to be built by Tega Homes and was recently sold to Quebec builder Brigil).  I will agree with the author - these are definitely signs that the condo market in Ottawa is changing.  Five years ago it would have been unheard of to see a new project cancelled or re-branded.  Back then, after a condominium project was released, the most change you would see were new floor plans or new specifications introduced - but even that was relatively rare.

Why are these projects re-branding, re-designing or closing up shop?  After 10 years of steady growth, are people in Ottawa suddenly rejecting condos?  Were they just a fad or a trend-du-jour?  Or is there something else contributing to the lack of sales?  One fairly important fact that the article failed to mention was that within 3 kilometers of all the aforementioned new condo sites, there are other condo sites that have sold very well and some have even already started and completed construction.

• A few blocks east of the Bowery, the Slater (being built by Quebec builder Broccolini Construction) has already reached its sales quota and construction will be starting later this year - this 22-storey condo has only been on the market for less than a year.  
• A short drive from where the Rhombus was planned, you will find the Eddy, a small 6-storey, 53-unit condominium by Windmill Developments located on Wellington Ave. in Hintonburg.  It has been slightly over a year since it was released and construction on the project has already reached the 3rd floor.
• One kilometer to the west of the Icon you will come across two new condo developments - Soho Champagne (by Mastercraft Starwood) and Hom (by Domicile).  Soho Champagne is a two-phase project comprising of 20 and 24 storey towers; they are pouring the concrete for the 5th floor for the Phase 1 this week.  Hom, a 12 storey condo, is already built and most residents have already moved in.

It's clear that people are still buying new home condos in the same areas where you find sites that have struggled with sales - so it's not the neighbourhoods or areas that the marketplace isn't responding to.  And after speaking to some of the sales staff and analysis old and new price lists from the Slater, the Eddy, Soho Champagne and Hom, they didn't have to dramatically reduce their prices to attract these buyers as the CBC article suggested.  In fact, in some cases, such as Hom and the Slater, they actually increased their prices substantially; upwards of $25,000 on some units - which adds support to the argument that it's not their prices that are the cause for the slowing sales.  In my opinion, buyers are seeking condos that suit their life style, and not the other way around.  And once they find some that do, they look for the best value - and value is weighed different by each buyer.

If you take a close look at some of the successfully-selling new condominium sites that I highlighted above, you'll notice that they have all been marketed, designed and created to appeal to a specific demographic.  With their competitive and affordable pricing combined with its downtown location, the Slater attracted a tonne of first-time buyers and young professionals.  The Eddy, being one of the smallest new condo buildings in the city and having LEED (Leadership in Energy and Environmental Design) certification, fit in very nicely to an already-environmentally conscious neighbourhood.  As Soho's past two projects, Soho Lisgar and Parkway, have proven, buyers looking for a little more pampering and hotel services have naturally gravitated towards the Soho hotel-inspired brand.  

Contrarily, the other condos whose sales have struggled were marketed to attract all potential condo buyers - investors, first-time buyers/young professionals and down-sizers - and by doing so they lost any type of unique identity making it problematic for would-be buyers to relate to the projects.  The Bowery/Edge seemed to realize this and on their second attempt of selling, looking at the success of their neighbour, their latest marketing campaign was aimed at a specific demographic - young professionals.  It's still a little too soon to analyze the results, but thus far the response has been positive.

If you are in the market for a condo, but haven't found something that has fit your needs, my advice to you is to be a patient and keep looking.  There is a multitude of options out there, and as more developers realize that the business model of "one condo fits all" is broken you'll see more unique projects offering different life-styles.  But if you're waiting on the side lines for the prices to drop significantly, I'm afraid you'll be waiting for some time, as a few builders have demonstrated already they're more willing to re-design, re-brand or close up drop before they heavily discount their prices.

Thanks for reading.

Taylor Bennett

Sales Representative - Bennett Property Shop Realty

www.BennettPros.com

Taylor@BennettPros.com

@OttawaTails

Condo Surplus in Ottawa? - Another Side of the Story

Inspired by the series of articles "The Other Side of the Story (I-IV)" written by Ben Myers of Fortress Real Developments I decided to take a similar look at a fairly recent and popular article written about the Ottawa condo market published on CBC News Ottawa.  The core message of this news piece was that the condo market in Ottawa is over saturated and therefore prices will drop, as will the rate of development.  And from a quick glance, that's what would appear is happening - but a little further analysis will reveal much more of the story.  In this weeks post, I'm going to analyze the CBC's articles opening statement "there are more condos up for sale in Ottawa than ever before - nearly 50 per-cent more than 2 years ago".

However, before I start, I think it's important that we define "condo" so we're all on the same page.  The term "condominium" is a type of ownership; it has nothing to do with the style of property.  Many people often think "high rise" when they hear the word "condo", but condos in Ottawa come in all shapes and sizes; high-rises, low-rises, townhouses, stacked townhouses, and even single family homes can be designated as a condo.

Now, let's get back to the CBC article.  It claims that the amount of condos for sale has doubled in over 2 years.  That sounds like an awfully staggering number; there must be cranes and construction sites everywhere in the National Capital Region, right? Well, actually, not really.  There are a few key contributors to this apparent rise of condos for sale.

Firstly, new home condos (that is condos that have yet to be built or are in the midst of construction) are being marketed differently than ever before.  When I first started working in this industry over 10 years ago, I would hardly ever see a real estate agent come by my new home office - this was mainly due to the very low (bordering on insulting) co-operating commission builders used to offer to outside real estate agents - back then it was common for developers to offer $500-$1,000 for a successful transaction, a far cry from the 2%, 3%, and even 4% co-operating commissions you see today.  Not only was a low commission offered, but often the commission wasn't paid until after final closing of the property, which in some cases could be well over a year.  Now, I'm not saying that real estate agents are only after money, but when your income is solely based on commissions, cash flow can be an issue.  And when you have to wait for over a year to get paid that can present some serious problems - especially if you have things like bills to pay and groceries to buy.  This pay structure was one of the main reasons there was a divide between the new home and the resale industries - it was almost as if they were two completely separate industries despite both falling under "real estate".  It wasn't until recently where that divide was narrowed, builders saw that resale agents were being alienated and changed not only the co-operating commission amount, but also the pay structure - it's now more common to see commission payments come in two parts; half is paid when the offer is firm, and the other half is paid when the property has been constructed and delivered to the purchaser.  This change not only brought more agents and their buyers to new home offices, but it also enticed more agents to help builders sell their product.  And what do real estate agents primarily use to advertise the properties they have for sale?  You guessed it, MLS.  A quick search on MLS (conducted the date this blog post was published - Nov. 1, 2013) showed that 162 of the 1,566 condominium properties on MLS have a "year built" date of 2014 or later - that means over 10% of the condominium market on MLS is a new home condo, a pretty substantial number considering there was only 1 new home condo listed in 2010.

The secondary reason for this increase in condos for sale are the number of "discount brokerages" that have popped up in recent years - personally, I define "discount brokerages" as brokerages who significantly reduce their commission or offer a small flat fee to home sellers for their listing "services".  I use the term "services" loosely since their types of brokerages don't offer much in the way of service - for their small fee or commission they will often post your property on MLS, provide you with a few "For Sale" and "Open House" signs and give you a few tips on how to sell your home.  You often get little to no guidance from an actual real estate agent and you're more or less left selling your property on your own.  With the increase in popularity of these services, and the low cost incurred, many home sellers have opted to list their property for sale "just to see how it goes".  This new option to list your home for sale has reduced the amount of obstacles that historically stood in the way of potential sellers and has increased the amount of properties for sale on the market.

So does this mean that there are no more condos (new home or resale) on the market today than there was last year?  Of course not, as Ottawa goes through its intensification of the downtown areas and our Baby Boomers age, you will see that number climb, but not quite at the rate the CBC article would have you believe.

Next week, in my continuation of my analysis, I'll dissect some of the examples of Ottawa's condo market mentioned in the CBC article.

Thanks for reading.

Taylor Bennett
Sales Representative - Bennett Property Shop Realty
www.BennettPros.com
Taylor@BennettPros.com
@OttawaTails

Pre-Construction Pricing Ending and a New Promotion at SoHo Champagne

If you haven't been by SoHo Champagne recently (a new condominium being built in Ottawa's Little Italy) you have missed a lot.  Construction started a few months ago and the building has just started to come out of the ground - at the time of writing this blog, the construction crew is on the 2nd floor.

Traditionally, at certain points in the construction phase, condominium developers increase their prices - and SoHo Champagne is no different.  But the great news is that you still have time to act on pre-construction prices, but only if you buy before December 1, 2013.  After that date prices will be going up by $10,000!  Now $10,000 may not seem like a big deal to some (especially when compared to the cost of real estate), but if spent wisely it can make a huge difference - it could provide your suite with hardwood floors throughout (typically new condominiums in Ottawa only offer hardwood or laminate flooring in the living areas, and carpet is normally provided in the bedrooms and dens), it could enable you to buy on a higher floor with a better view (which could ultimately increase your property value), or may even give you the opportunity to buy a larger condo or add some very unique customizations within your condo.

Now if a $10,000 incentive doesn't tickle your fancy, perhaps a brand new promotion will.  If you read one of my earlier posts or have been paying attention to the news, you won't be surprised to learn that interest rates are going up.  To counteract this inevitable increase, SoHo Champagne is offering to "Cut Your Interest Rate In Half" on selected suites for 2 years!  What does that mean? It mean that your monthly costs can be reduced by as much as $450 - if you're an investor, that increases your potential earnings, or could lower your rent making your property more attractive to tenants; if you're planning on residing in the condo, that's a saving of over $5000/year - I'm sure we would all like to have an extra $5,000 in our pockets.  Now, I know what you're thinking - "Only on 'Selected Suites'? That's just the builders way of getting rid of the junk no one wanted." but the 'Selected Suites' are those that are priced at or below $320,000 at SoHo Champagne.  I happen to have a price list for that site handy, this promotion would be valid on the following styles (they can be viewed here) - PS2B, PS2C, PS3, G, E & E1.  There are also a few different layouts whose priceshover around $320,000 - I'm sure with a little negotiating you could get the builder to make an exception or two.  Like all promotions, there are other conditions that apply, but certainly none that drastically alter the benefits - to learn what these conditions are, or to learn more about SoHo Champagne and other similar condo developments, feel free to contact me.


Thanks for reading.

Taylor Bennett
Sales Representative - Bennett Property Shop Realty
www.BennettPros.com
Taylor@BennettPros.com
@OttawaTails

Cita Condos - Coming Soon To Alta Vista

[Edit: Great article on Cita Condos in the Ottawa Sun from Thursday - check it out here. The sales office is now open as well (Monday-Thursday: 12-6, Saturday-Sunday: 12-5, Closed Friday and Statutory Holidays), stop in to learn about their opening promotions and view their great, full scale model suite]

Cita Condos, a new condominium development being built in Alta Vista (a neighbourhood found about 5-10 mins south of Ottawa University), is being released for sale in the very, very near future.  Now unlike some of the condo developments I have highlighted in previous blog posts, this development is a little different.  In terms of the actual structure and design, as you can tell from the photo of the scale model below, it's not all that different from many of its downtown or central counterparts.

But Cita Condos differs from its competition in two notable areas:
1) Its Location - As I mentioned above it will be built in Alta Vista - a very quiet, well-established area situated less than 5 km south of downtown Ottawa.  Within the neighbourhood you will find many single family homes, several schools (Public Elementary: Alta Vista, Arch Street, Featherston Drive, Hawthorne, Pleasant Park and Vincent Massey; Public Secondary: Canterbury High School, Ridgemont High School and Hillcrest High School; and Catholic: McMaaster, Ste-Genevieve, St. Patrick's Intermediate and St. Patrick's High School) and more than a fair share of city parks (Lynda Lane Park, Grasshopper Park, Billings Park and Orlando Park, to name but a few).  In and around the boundaries of Alta Vista you will find 3 major shopping areas: Billings Bridge Plaza (a shopping center to the South-West of Alta Vista), Elmvale Shopping Centre (located to the North-East of Alta Vista), and the newly established and ever-growing Ottawa Train Yards (slightly north beyond the borders of Alta Vista). With the numerous parks and mature trees, Alta Vista is a welcome change compared to where you normally find these types of condos.

2) The Interior Design - At the sales office (located at the corner of Playfair Dr. and Kilborn Ave.) they have built a gorgeous 2-bedroom model suite showcasing many of the standard interior specifications and also a few of the upgrades you can select to customize your condo.  When you first step foot inside the model you'll notice that it doesn't have the feel of a condo; it's much warmer due to the earthy-tones the designer chose instead of the dark-on-white contrast you find in most downtown condos.  The standard kitchens include quartz counter tops, a glass-tile back splash, beautiful cabinetry as well as 5 appliances (fridge, stove, dishwasher, microwave and hood fan).  As for the washrooms, without upgrading you will find porcelain ceramic tiles, quartz counter tops and your choice of a walk-in shower or tub.

So if you're tired of spending all the effort and time that's required to maintain a home - the yard work, the constant dusting and cleaning of rooms you may not even use anymore, costly repairs to the roof or windows, etc... - and have been considering the condo life-style but have found the downtown and central areas of Ottawa too noisy or crowded, then Alta Vista is the perfect fit for you.  With bachelor condos starting below the $200,000's, 1 bedrooms in the mid-$200,000's and 2 bedrooms in the low $400,000's, Cita Condos is a site you definitely want to have a look at.

For more info on taking part in Cita Condos VIP release (where special incentives and promotions are offered) or to see the floor plans and pricing, please feel free to contact me.

Thanks for reading.

Taylor Bennett
Sales Representative - Bennett Property Shop Realty
www.BennettPros.com
Taylor@BennettPros.com
@OttawaTails

New Plans for Ottawa's Future Lees LRT Station

Construction of Ottawa's Light Rapid Transit (LRT) is well under-way.  After years and years, heck almost a decade of debates and analysis, the question has changed from "Will the LRT ever be built?" to "When will the LRT be ready?".  According to the Light Rail's official website, the answer is June 2017 (for the stations in and close to downtown Ottawa.

In anticipation of this new rapid public transit system, the city is starting to look at the areas immediately around the 13 different stations.  In one of my past blog posts (which you can read here), I referred to a study conducted by Don Campbell from REIN (Real Estate Investment Network) where it was noted that the properties within 500 m of transit stations saw increase in both equity growth and potential rental earnings.  It's fairly simple to conclude why - being close to a major public transit station is important to a lot of people, especially those that don't have or want a car and/or those who are looking to cut down on transportation costs.  So it's no surprise that the city planning department is focusing on these areas to allow for higher density zoning to prepare for and increase the number of potential LRT-riders.  We have already seen it happen at Dow's Lake (I should clarify: Dow's Lake isn't near one of the future LRT stations, but it is next to the O-Train's Carling station.  The O-Train and LRT will intersect a few minutes north of the Carling station at the Bayview station) and we have seen higher density building be approved downtown near the Downtown East & West stations.  According to a recent article in the Ottawa Citizen (which can be read here), Ottawa's planning department is looking at the area around the Lees stations - this is already a fairly high density area; Lees station will be just outside of the University of Ottawa's campus, not far from some of the taller apartment buildings in Ottawa and a lot of student housing.  Despite that area already having high density zoning, the new proposed City plan for that area calls for 20-, 30- and even 45-storey buildings.  Councilor David Chernushenko, whose Captial ward includes the Lees station, has raised concerns about the increased crime and over-all appearance that this plan may bring and would prefer to see 8-storey buildings instead.  The City's planning department will be presenting it's final plan for that area in November 2013.

Thanks for reading.

Taylor Bennett
Sales Representative - Bennett Pros 
www.BennettPros.com
Taylor@bennettpros.com
@OttawaTails

Summerhill on Dow's Lake

[EDIT: Sept. 16, 2013]
Summerhill Condos' website is now active, though it appears it's still a little under construction, so please don't expect perfection.  Click here to visit Summerhill's home page - you can learn more about the different styles of suites (1 or 2 bedrooms), the area/neighbourhood, the on-site amenities and the team behind the project.  It seems all pertinent details are now available, save for pricing.
Also, there is a VIP event being held tomorrow (Tuesday, Sept. 17) from 5:00 pm - 7:00 pm, which will be the first opportunity to pre-reserve a suite at Summerhill.  If you would like to take part, please register here (registration form is on the right side of the page, please put 'Summerhill' in the "Additional Criteria" area) or please contact me directly for more details.  Stay tuned for more updates!

Ottawa's Little Italy/Dow's Lake has been getting a lot of attention lately - Domicile just completed their Hom condominium building, SoHo Champagne will be the next condominium completed in the area (estimated to be ready by Nov. 2014) and Claridge's Icon recently received approval for Ottawa's tallest residential building at 46 levels - and that's just a short list of those projects that are selling, under construction or completed.  The list is substantially longer when you include those project pending approval - Richcraft is working with the city to get their two 48-level towers approved where Dow Honda currently sits; directly to the north of Dow Honda, SoHo has a second location, SoHo Italia, where they are currently in discussions with the city to obtain approval for a 30 to 36 level tower; and a few other lots in the neighbourhood, owned by Ashcroft and Arnon, will soon fall into that same category as those builders look to jump into the developing area.  All this to say, there are big changes coming to that area.

But what if you're not in the market for a towering high rise?  What if you prefer a more intimate environment, but still want to be able to access the vibrant nightlife that Little Italy offers?  Well, if you're reading this blog, you're in luck - I'd like to introduce you to Summerhill at Dow's Lake by Montreal builder Samcon.  Located close to Bronson Ave. and Carling Ave., residents will be a short walk away from lively Preston St. and tranquil Dow's Lake.  At just 39-units, this condominium project will provide the intimacy of a smaller community, and yet still provide the low-maintenance life style that make condominiums so appealing.  Sales for this project has not yet commenced, but there is a VIP buying event being planned for later this month - to get on this VIP list, contact me using my info below.

For more information on this up-coming project, feel free to contact me or follow my blog - I'll try to post new updates as the details are confirmed.

Thanks for reading!

Taylor Bennett
Sales Representative - Bennett Pros
www.BennettPros.com
Taylor@BennettPros.com
@OttawaTails

As the Summer Cools, Ottawa's Real Estate Market Heats Up

It looks like the Canadian Mortgage and Housing Corporation's (CMHC) crystal ball is working correctly.  In their publication 'Housing Market Outlook - Ottawa', released in Fall 2012 (http://www.cmhc-schl.gc.ca/odpub/esub/64311/64311_2012_B02.pdf?fr=1378574877744), CMHC predicted that due to tighter mortgage rules, increasing incomes, and modest home price increases, real estate sales the second half of 2013 would increase.  Accordingly to a report released on Thursday by the Ottawa Real Estate Board (OREB), sales did just that - home sales in August 2013 were tallied at 1,219, outpacing both sales in August 2012 by 6.5% and the August 5-year average.

According to the same report, prices of homes in Ottawa also saw an increase in August 2013.  The average price of a residential home (including condos) sold last month was $348,519, an increase of 0.4% over August 2012.

As CMHC predicted, the tighter lending rules introduced this and last Summer (most notably the shorter amortization periods for insured mortgages and less overall insured mortgages being sold to would-be buyers) combined with the increasing mortgage interest rates and Ottawa's low housing affordability index, were all factors that contributed to this increase in sales.  If CMHC's prediction holds true, you can expect to see this increase continue until mid-2014.  

What does this all mean if you're sitting on the fence waiting to buy a house?  It means you should stop sitting and start acting!

Thanks for reading.

Taylor Bennett

Sales Representative - Bennett Pros

www.BennettPros.com

Taylor@BennettPros.com

@OttawaTails

Breaking Tradition: Canada & Ontario Real Estate Up In July 2013

In terms of real estate, especially in Ottawa, traditionally July is a fairly quiet month.  Sun, vacations, camping, beaches and just about everything else distracts home buyers in the Summer months.  But this July, traditions have changed - according to new numbers released by the Canadian Real Estate Association (CREA), real estate sales across Canada in July 2013 is up 8.4% when compared to July 2012. CREA's number also revealed that in Ontario sales went up higher than the Canadian average - increasing by 8.6% with prices increasing by 7.4% in July 2013 compared to July 2012.  The full report from Canadian Real Estate Magazine can be found here: http://www.canadianrealestatemagazine.ca/news/item/1736-july-sales-and-prices-soar

There are a few factors that may have contributed to this growth - the Bank of Canada increased mortgage interests for the first time in years (http://tinyurl.com/k9gq8be), causing buyers to jump into the market to take advantage of the historically low rates; and the new lending limits set by CMHC has forced fence-sitting buyers to make a purchasing decision (http://tinyurl.com/nbk2ebn).  These 2 factors combined with demographic factors, most notably, Baby Boomers retiring from the work place and looking to buy their retirement home or condo (http://tinyurl.com/b8d9uu8), one thing is for certain, traditional market trends won't be so traditional for much longer.

Thanks for reading.

Taylor Bennett
Sales Representative - Bennett Pros 
www.BennettPros.com
Taylor@bennettpros.com
@OttawaTails

A Different View Of Condos With A View

There are a lot of changes planned for Ottawa's Little Italy - most of these changes involve new condominiums near or around Dow's Lake.  Builders have been one-upping each other with the heights of their proposed condos - 36 stories (http://www.sohoitalia.com/), 45 stories (http://claridgeicon.com/) and even 48 story proposals have been submitted to the City; heights that long time Ottawa residents would have never fathomed for our capital city. But with all of these competing proposals jockeying for the best views of Dow's Lake, the sight lines of many of the condominium dwellings will be partially or completely blocked by their soon-to-be-built neighbors.

So what do you do if you're looking for a condo with a view but are worried about it being obscured by a future building?  That's fairly simple to answer - make sure the view you're after isn't of just one landmark (such as, I don't know, a lake).  Below I've included two photographs taken at the SoHo Champagne site, approximately from the 16th floor (FYI: Phase 1 at SoHo Champagne has recently been increased to 20 floors).  The photos are north facing towards the Gatineau Hills and downtown Ottawa.  As you can see, the photos are simply panoramic views of Ottawa, not focusing on one particular building, landmark or area. Yet I would struggle to find someone who wouldn't enjoy that vista, despite not being able to see the lake.

Another factor you should consider if you're in the market for a condo with a view are the windows themsleves - of course, their height and width are important, but you may not have considered bulkheads within your condo.  No, they aren't part of your windows, but they can impact your view nonetheless.

First, what is a bulk head? No, it's not a politically correct term for someone with a large cranium, though an argument could be made that it too could impact the view from your windows.  A bulk head is an area where the ceiling drops down (usually by 10"-12") to create space for ducting, plumbing, electrical wires, lighting, etc... to be installed.  These are almost always found in high rise condominiums since the aforementioned items can't be installed in the concrete ceilings.  The location of bulk heads aren't normally shown on marketing floor plans (the plans you see in information kits at sales offices and builders websites) nor in model suites, but their exact locations are known by the builder.  A simple request to see the blue-prints when you're purchasing your condo will give you access to that information.

Most of the condos I've owned, visited and/or sold have had bulk heads, but they were strategically placed to minimize their presence so they were hardly noticeable.  But recently I was in a condo that was built by a direct competitor with one of the condo buildings I helped sell, and this particular competing condo had highlighted their large windows as one of their selling features - something a lot of today's builders do.  I was quite surprised when I saw where their bulk heads had been installed - about one foot in front of the 8' windows!  Which means when you stood in the living room area, the top portion of the window was blocked by an obstruction within the condo itself.  In condos, especially 1 bedroom condos that today are usually 600 sq. ft. or smaller, you want to maximize the natural light to give the resident the feel of an open, spacious area.  This poor bulk head design eliminated 14% of the view from the windows.  And what's more, windows are known to be areas where heat loss is most experienced (This just in: glass isn't a great insulator, who knew?) and the larger the windows, the greater the potential heat loss.  Most buyers are willing to deal with this increase in heating cost for the benefit of the better view.  But in this scenario, the resident is not getting the advantage of the views larger windows provide and at the same time, they're experiencing the disadvantage of higher heat costs.  Sounds like a lose-lose to me.

Whether it's for investment or a owner-occupied property, views can be a great asset to your condo.  But like anything, without doing the proper homework, that asset can become a liability.  So before you enter into a contract to purchase a condo, make sure you ask the right questions.  Don't know what to ask?  Feel free to contact me for help. 

Thanks for reading.

Taylor Bennett
Sales Representative - Bennett Pros 
www.BennettPros.com
Taylor@bennettpros.com
@OttawaTails

Lansdowne Park: The Future Home of the Ottawa RedBlacks & Fury FC

After a lengthy debate (perhaps even longer then Ottawa's Light Rail debate) and its fair share of controversy (most notably in the form of, shall we say, live alternative music), Lansdowne Park (http://ottawa.ca/en/city-hall/planning-and-development/transforming-ottawa/building-new-lansdowne) has made some serious progress.  I grew up a few minutes away from Lansdowne, long before any of this rejuvenation had been considered - I learned to play baseball at the diamonds on the north-east corner of the property, saw my first professional (Ottawa Senators - http://senators.nhl.com/) and semi-professional (Ottawa 67's - http://www.ottawa67s.com/) hockey games there, and fondly remember walking to a few Rough Riders CFL games and the Rolling Stones concert with my dad.  I'm sure I'm not the only Ottawan that conjures up sentimental memories when thinking of Lansdowne.  But as we know, the only constant in life is change.  And, boy, has Lansdowne ever changed.

As you can see from the picture above, construction at Lansdowne is well under way and it's a good thing too - it's pretty hard to have an inaugural season opening game in 2014 without a field to play on.

For sports fans like me, I'm sure you can't wait to see the ball lined up on the 35 yard line, waiting to be kicked 70 yards down field as the RedBlack's 2014 CFL opener kicks off.  But for you casual or non-sports fans out there, don't write off the New Lansdowne because one of its heavy sports theme.  Unlike it's predecessor the new project will not only appeal to the avid sports fan, but the plan includes something for everyone.  Aside from ice hockey arena (which is being renovated) and the new state-of-the-art sports stadium - designed to host CFL and professional soccer games - here's a short list of what else to expect:
- Residences - town houses and 2 high-rise condos (the Vibe and the Rideau - 13 and 20 levels respectively)
- Retail space (a grocery store, clothing shops and others to be confirmed)
- 18.5 acres of park space/public plazas
- 20 event venues to host a weekly Farmer's Market, exhibitions, conventions, etc...
- A new cinema
- An 11 acre underground parking lot for approximately 1,300 vehicles

So, whether you're a football, soccer or hockey fan, the new Lansdowne definitely hasn't strayed far from it's roots and you'll feel right at home - just don't expect there to be another 'Mardi Gras Night'.  However, if you aren't a sports fanatic and found that the old Lansdowne didn't offer much in terms of entertainment - give the New Lansdowne a second chance in 2014.

Thanks for reading.

Taylor Bennett
Sales Representative - Bennett Pros 
www.BennettPros.com
Taylor@bennettpros.com
@OttawaTails

Ottawa's LRT: What Impact Will It Have On Your Property Value?

After almost a decade of debates, analysis, and discussions, construction of Ottawa's Light Rail Transit (LRT) System (http://www.ottawalightrail.ca/) has recently started.  If all goes according to plan, the LRT will have it's first rider by mid-2017 and construction will be completed by the end of that same year.  Aside from the obvious (a more efficient and effective way to move about the city), the LRT will impact Ottawa on many different levels - the area I'd like to bring to your attention is property values. Specifically, property values near the LRT stations.

Now, unfortunately my crystal ball is in the shop, so I can't look to it to see exactly what impact the new Confederation Line will have on its immediate surrounding neighbourhoods.  But fortunately for my readers, I did come across a fantastic report by Melanie Reuter from The Real Estate Insider where she did an analysis of the impact that new public transit systems had in some of North Americas major cities.  She not only compared what impact a new system had on a city's property values, but also the advantage these transit systems can have during a recession. (Spoiler Alert, it's positive, very positive.)

If you've been considering a condo purchase, but haven't been able to figure out exactly what neighbourhood or area to buy in, give this report a quick read.
http://blog.myreinspace.com/2013/07/empirical-proof-that-transit-protects-or-enhances-your-property-values/

Thanks for reading.

Taylor Bennett
Sales Representative - Bennett Pros 
www.BennettPros.com
Taylor@bennettpros.com
@OttawaTails

Finally, Pathway Suites Are Here.... Wait, What Exactly Is A Pathway Suite?

SoHo Luxury Condominiums’ flagship project, SoHo Champagne, has changed buyers expectations since its introduction in 2011 - never before had Ottawa seen a hotel-inspired condominium with an on-site, hotel-trained concierge, over 15,000 sq. ft. of amenities, and touches of luxury found throughout the suites themselves and the common areas. Now you can add 'Pathway Suites' to that list.

The inevitable question - what's a Pathway Suite?  I'm glad you asked.  Pathway Suites are one of the newest additions to SoHo Champagne.  If you had attended the initial opening day launch of this project, you wouldn't have known about them, as they were originally 2 and 3 level Town Homes.  But the most frequently heard comment we received about the Town Homes was that there were too many stairs within the suite itself - something the potential buying group for these suites is trying to avoid by moving into a condo.  So, SoHo Champagne's architect, Roderick Lahey Architect Inc. (http://www.rodericklahey.ca/home.aspx), went back to the drawing board and came up with the Pathway Suites.

This collection of suites come in two different styles - 1 bedroom starting from $325,900 (805 sq. ft. - http://adhocimc.ca/admin/soho/champagne/pdf/PS2.pdf) and 2 bedroom starting from $556,900 (1323 sq. ft. - http://adhocimc.ca/admin/soho/champagne/pdf/PS1.pdf).  Both styles are located 4 steps off the ground and offer residents a 140+ sq. ft. terrace which includes a gas BBQ outlet, a private garden area and direct access to the Linear Park (a green space located in front of the terraces that has a paved pathway leading to the future Hickory St. bridge - once the bridge is built, Pathway Suite residents will be able to walk to Preston St. or to the Carling O-Train station from their own private entrance in less than a minute).

On a personal note, I've lived in a few different condos in my life time, some with great views of Parliament Hill, some in fantastic pedestrian-friendly locations and others with terraces - and of all the unique features I have enjoyed in these condos, I can honestly say a terrace made the biggest difference.  Most buildings don't offer very large balconies (if any at all) - they're usually somewhere around 4' to 4'6" in depth meaning a two-seat dinette set may not even fit.  Plus, if the building is over 4 floors and don't have a gas BBQ outlet, due to constrains from the Fire By-Law your only option is to use an electric BBQ, which is a slight step up from using a magnifying glass to heat up your hot dog.  When you live in a condo that is already smaller than the other alternatives (town homes and garden homes), having access to an exterior area that you can actually enjoy is priceless - it's almost like adding an additional room on to your property, a room you can BBQ in and get some fresh air.

So for those thinking that condos with terraces are only found on the Penthouse levels of buildings vaulting them out of the price range of most buyers, check out the new Pathway Suites at SoHo Champagne - visit www.SohoChampagne.com or 111 Champagne Ave. South, or better yet, message me for more details.

Thanks for reading.

Taylor Bennett
Sales Representative - Bennett Pros 
www.BennettPros.com
Taylor@bennettpros.com
@OttawaTails

Promotions can make all the difference...

The Ottawa condo market is competitive, VERY competitive.  There are so many different options out there it's easy for a project to get lost in the mix.  So, builders have elected to introduce a promotion or two to help their project stand out from the rest.

Promotions, like condos, can come in all shapes and sizes.  One of the more common promotions is a discount in price.  Why? Because it works - who doesn't like saving a little cash?  But at the end of the day, if a builder is willing to drop their price without any negotiation, they're essentially admitting that their product is overpriced to begin with, and if a builder is willing to admit that, then do you really want to buy an over priced property?  (side note: If you do, contact me immediately - I am certain I can help you find a few. Ha ha!)  And let's be honest, how many times have you seen "$XXXX savings if you buy now!" or "Buy today and get $XXXX cash back"?  Probably too often that it's become white noise.

So, how are builders getting their product noticed?  They got their creative juices flowing, that's how.  In the last 3 months alone I've seen promotions offering free furniture at Distillery Warehouse Lofts (http://distillerywarehouse.com/), free condo fees at Galleria 2 and SoHo Lisgar (http://richcraft.com/galleria2/index2.html & http://soholisgar.com/index.html), free property management, 6 month free mortgage at SoHo Champagne (http://sohochampagne.com/), and even free parking at 99 Parkdale and the Rhombus (http://99parkdale.com/ & http://111parkdale.com/).  But what does this all mean to you as a potential buyer?  Well, it can mean everything to your purchase.

Depending on your the intention of your purchase (investment, first home, down-size, etc....) some promotions may dramatically improve the value of your property, while others may add zero value - unfortunately, the choice isn't always obvious.  That's why having the help of an experienced investor or Realtor (or both) during the negotiation process is invaluable.

For more info about the various promotions offered around the city, or information on Ottawa's condo market, don't be shy to send me a message, follow me on Twitter (@OttawaTails) or visit my teams website - www.BennettPros.com

Thanks for reading.

Taylor Bennett
Sales Representative - Bennett Pros 
www.bennettpros.com
taylor@bennettpros.com
@OttawaTails

Historically Low Interest Rates Not Historically Low Anymore...

If you follow real estate closely, or even if you're a casual observer, you would know that since 2008 mortgage interest rates have been at historically (or perhaps even artificially) low levels, bottoming out at sub-2.5% (for a variable rate) and sub-3.0% (for a fixed rate). For some of you who may be looking to enter the real estate market for the first time, or bought your first home after 2008, you might not fully understand the advantage these low rates have on your purchase. And more importantly, what impact a higher (and more realistic) rate will have.

Let's take a look at the most recent increase - 2 weeks ago, a 5 year fixed rate was roughly 2.89%, today that same term of mortgage would be 3.49% (http://www.tdcanadatrust.com/products-services/banking/mortgages/numbers.jsp) - a modest 0.6% increase; no big deal, right? That increase only translates to roughly $30/month of interest for every $100,000 borrowed, or $1/day - no big deal indeed.

But let's say you're on the fence about buying that first or next home, and the low (but unsustainable) interest rates over the last 4 years have factored into your decision to hold off for another year to buy your next property - a decision many first-time and new home owners are contemplating. If Lawrence Yun, chief economist for the National Association of Realtors, prediction holds true and the mortgage interest rates increase as high as 5% in the next year, that extra $30/month of interest increases by almost 4 times to $114/month!! An extra $1,350 of interest annually, all because you waited 1 year - that's a week-long southern vacation or a new designer suit you could have bought instead of giving your bank more money. More so, if you currently had room in your monthly budget for an additional $114, and decided to buy today instead of waiting a year, that would enable you to increase your home hunting budget by approximately $30,000!! Still think it's no big deal?

No one has a crystal ball and no one can accurately predict the future of mortgage interest rates, but it doesn't take an economist to see that the interest rates can not remain at their current levels for much longer and many experts at Canada's big banks agree that over the next few years rates will continue to increase to more sustainable levels.

But one thing is for certain, mortgage rates will not drop any more than they have over the last 4 years - so if you're looking for a reason to step into the real estate market, it won't get much more affordable than it is now. For more information about interest rates, real estate in Ottawa, or buying your first home or investment property, please don't hesitate to contact me. Thanks for reading.

Taylor Bennett
Sales Representative - Bennett Pros 
www.bennettpros.com
taylor@bennettpros.com