Steady As She Goes Part 2

Why these five neighborhoods made it through the recession with flying colours and why everyone should keep a close eye on these hot Ottawa areas.

The five Recession Proof Hoods:

TODAY’S FEATURED NEIGHBOURHOOD: The Glebe

Why:
Because by buying in, you get to live among like-minded people in a nice house near the canal, with good shops, schools, and restaurants close by. Sure, Glebites love to complain about how their property taxes keep going up and up. But what do they expect when their property values are always on the rise? Besides, they’re getting a break for the next three years as any increase to their tax share is phased in. Still, buying in is expensive. Average house sale price last year was $555,162 east of Bank Street (up 16 per cent ) and $587,232 west of Bank (up 5.4 per cent).

New Edinburgh
Rockcliffe Park
Rothwell Heights
Westboro

Steady As She Goes

Why these five neighborhoods made it through the recession with flying colours and why everyone should keep a close eye on these hot Ottawa areas. I will be highlighting a new neighbourhood each day so keep posted!

The Five Recession Proof Hoods:

The Glebe

New Edinburgh

Rockcliffe Park

Rothwell Heights

TODAY’S FEATURED NEIGHBOURHOOD: WESTBORO

Why:

Because it seems that every young, upwardly mobile family that’s not already settled in the Glebe has its sights firmly set on Westboro. It’s chic to shop, hang out, and be seen along Richmond Road near the Newport restaurant. (Less chic, perhaps to be seen inside.) A real estate agent operating in this area, says demand is so high that many are moving farther west to hot spots McKellar Park and Highland Park, where average house sale price last year soared 19 per cent to $544,381. Real estate statisticians lump those two neighbourhoods together. Those are even higher prices than in Westboro itself, where average sale prices last year were still below $500,000.

Put Your Tax Dollars Back Into Your Home

Homeowners who are contemplating renovations have six months left to take advantage of the Home Renovation Tax Credit and save hundreds of dollars on their income taxes, Prime Minister Stephen Harper reminded Canadians today.“There has never been a better time to renovate your home,” said the Prime Minister. “This new tax credit will help homeowners who renovate this year save on their taxes. In addition, these renovations will often lead to reduced energy costs or increases in the value of your home. Best of all, every time Canadians invest in renovations, they are also helping create construction and building-supplies jobs in their local communities.”The Prime Minister visited an Ottawa-area hardware store that is participating in a nationwide campaign to inform Canadians about how to apply for the Home Renovation Tax Credit. Thousands of stores across Canada have already signed up to promote this innovative new tax credit to Canadian consumers.A key component in Canada’s Economic Action Plan, the Home Renovation Tax Credit provides a 15% income tax credit on eligible home renovation expenditures for work performed or goods acquired between January 27, 2009 and February 1, 2010. The credit may be claimed on expenditures exceeding $1,000 but not more than $10,000 and will provide up to $1,350 in tax relief.

For more information on the Home Renovation Tax Credit please visit: http://www.actionplan.gc.ca/eng/media.asp?id=1531.

In Ottawa's condo game, knowing what sells -- and to whom -- can be a mystery

View this great article published in the Ottawa Citizen on Saturday August 15th, where I talk about the current condo market and what's to come in the future.


Big or small? Cheap or pricey? Young or old?
By Patrick Langston, The Ottawa Citizen August 15, 2009

For a town with a reputation for staid predictability, Ottawa is anything but when it comes to the condo market. One minute boomers aren't buying, the next they're tripping over each other to sign on the dotted line.

Ask builders about the much-touted trend to smaller units and they'll nod in agreement before throwing out enough exceptions to fill a gleaming condo tower. Makes you wonder if a Ouija board wouldn't work as well when it comes to defining the market.

We do know condo sales, after a recession-driven slowdown that hit the entire housing market, are healthy. According to the PMA Realty Group, May sales of apartment-style condos represented 12.8 per cent of new home sales, jumping to 13.6 per cent in June. July figures aren't yet available, but builders say they were good. July resales were up a record-breaking 7.6 per cent over 2008, according to the Ottawa Real Estate Board.

Thing is, no one seems to know who's going to be plunking down cash for condos or exactly what designs they'll want.

A recent weekend found empty-nesters surging through the sales office at Ashcroft Homes' 101 Richmond Road project, a chic glass-and-brick building planned in super hot Westboro.

The demographic caught sales representative Patti Bourassa "completely off-guard. Before then, it was nearly all 25 to 35 year-olds," she says. That weekend, boomers were snapping up 1,000-square-foot apartments after months of holding off on condo purchases.

"They know the inventory is limited, and maybe they have realtor friends who are saying, 'Sell your house now for a good price.' "

Boomers were the hardest hit buyer group this winter because their investments deflated and they were seriously afraid prices for their homes were also going to shrink.

The fear factor is gone, says Bourassa. "I heard some of them saying, 'I can't believe the price of condos. If I don't buy now, who knows what will happen in two years?' "

"Sometimes with trends, you try too hard to find the reason," says Ashcroft president David Choo. "There are shifts in the market and there's nothing you can do about it. There's no science about coming to the market; you're not saying, 'I know that's what's required.'"

- - -

Brenda and Ian Miller, longtime Orléans residents and married 48 years, recently bought a 1,000-square-foot corner condo at 101 Richmond Road. At Brenda's urging -- she's known to many as Brenda the Psychic and says she immediately "felt something very strong" about the site -- the couple bought within 20 minutes of entering the presentation centre.

Her husband, a Saskatchewan native now retired from the Royal Canadian Mounted Police, is looking forward to the condo's proximity to bike paths and kayaking opportunities at Meech Lake. As well, he says, "the last few years, I've been missing that village aspect."

The Millers, like the other boomers who have flocked to 101 Richmond, may have been the exception that proves the rule. That rule, says Ron Desjardins, vice-president of PMA Brethour Group, states that young singles and couples, primarily professionals, are the major buyers of condos, mostly smaller ones.

In Ottawa, that trend was ignited a few years ago when Toronto-based Urban Capital Property Group opened the first tower at East Market. The small condos, priced at $99,000, appealed to young, first-time buyers. There are now three towers with mostly modest size units, although there are larger condos with spectacular views of the Ottawa skyline. Urban Capital followed up East Market with the Mondrian, a sleek condo that has risen at the corner of Bank Street and Laurier Avenue and, most recently, Central on Bank Street at Gladstone, a launch that sparked a feeding frenzy of buyers, many of them young.

- - -

Young buyers have been snapping up condos partly because prices have been stable and interest rates low, says Desjardins. Now, like the rest of the market, they're getting even more active. "There's talk that interest rates could see a bump, and they're seeing builders reducing the number of incentives," says Desjardins. "Also, builders discounted units through the winter and now they'll try to recover their margins. Even some drywall and toilet costs are increasing because manufacturers shut plants in the recession and now the inventory is tight.

"(Buyers) are seeing the window of opportunity to get the best deal getting tighter," says the veteran analyst.

Kristina Johnston is one of those young buyers. The 28-year-old, who runs a medical centre, bought an 800-square-foot condo at Westboro Station Phase II on the western edge of Westboro. The building, which will be ready in 2011, is being developed by Ottawa's Bourk Family Developments, and the 800-square-foot apartments were swiftly snapped up, especially by first-time buyers.

"I definitely checked out the condo market in Ottawa," says Johnston, who currently rents in Wellington West. She settled on Westboro Station in part because of the layout and size, and because she likes the neighbourhood's atmosphere and proximity to the Queensway.

But if young, first-time buyers dig Phase II at Westboro Station, which is 55 per cent sold, the average age of buyers in Phase I was reportedly 51. Go figure.

Buyers are all over the map, says Doug Casey, president of Ottawa's Charlesfort Developments. "Small is popular, but large is too. It all depends on the location and quality." Cosy, 460-square-foot condos in Charlesfort's downtown project, Hudson Park II, have sold well, but so have the building's larger apartments.

And, of course, there's the ultra-luxurious Metropole by Minto off Scott Street near Island Park Drive. Opened in 2004, its top-end units run well over 3,000 square feet.

On the other hand, Domicile Developments Inc. had a heck of a time selling its bigger, two-storey condo at G in the Glebe. The company finally chopped the units down and has since sold most of them. Its latest project, Second Avenue West on Bronson Avenue at the western limits of the Glebe, contains more units in the 600-square-foot range.

"It's an affordability issue," says Domicile president John Doran. With construction costs running $400-a-square-foot and more, the only way to keep units affordable is to shrink them. At the same time, Doran says older buyers expect fine finishes, while younger ones look for appliances as part of the package, neither of which comes cheaply. And it seems most buyers are looking for amenities, including exercise rooms, while nobody wants high condo fees.

Just to muddy the picture further, Doran says his company is looking at a Wellington West site where it may ramp up condo sizes again.

When it comes to living small, Ottawa architect Barry Hobin, whose projects include Hudson Park and Westboro Station, says he's seen a downward trend in Ottawa from over roughly 650 square feet to about 550 square feet.

Everything shrinks, he says. "Bedrooms are 10 feet wide instead of 12. The newest trend is that the dining room disappears and instead there's an eating island in the kitchen." Bigger windows and condo-scaled furniture, he adds, can go a long way to creating the illusion of spaciousness.

Ottawa still has a way to go in the incredible shrinking condo game.

Here, says Choo, a 600-square-foot condo would be considered small. In Toronto, it's mid-sized. "The whole condo experience is evolving. Designers are becoming more innovative in how they design small units, and builders are more innovative in how they present them."

- - -

Condo living, big or small, has become stable part of the Ottawa marketplace. Condo sales have represented about 10 per cent of total new home sales during the first six months of each year since 2006, according to the Greater Ottawa Home Builders' Association. Resale figures from the Ottawa Real Estate Board, meanwhile, show condos representing 20 per cent of total home sales this year.

These numbers are radically different from the roughly two per cent of the Ottawa market that Marnie Bennett says condos represented only seven years ago. That's when the Keller Williams Ottawa Realty broker started selling condos here.

"We're not at the peak yet," she says. Case in point: runaway sales when the presentation centre for Mastercraft Starwood's 15-storey SoHo Parkway, planned for the corner of Parkdale Avenue and Scott Street, opened last month. Virtually all of the units, which run from 508 square feet to the $1.2 million, 2,779-square-foot penthouse, are being held in reserve for prospective buyers, Bennett says. She expects the vast majority of the sales will be completed.

"Everyone wants to travel now. We want to be surrounded by the finer things, be pampered and get the lifestyle we couldn't get in a single family home." Buyers, she says, are looking for nine-foot ceilings, marble bathrooms and the like. Ottawa architects and designers, meanwhile, are becoming more sophisticated in response to buyer expectations.

And Ottawa buyers can be a discerning lot, says Bennett. "There's much more informational sales here. People in Ottawa will call city hall and check up on all the little details of a project. We're research geeks."

© Copyright (c) The Ottawa Citizen

Ottawa Housing Market Hits New Heights

Real estate in Ottawa has almost been considered recession proof; it has continued to withstand the recession. Many consumers believe that the worst has subsided and now is a good time to invest and purchase in real estate. The record-low borrowing costs have been a huge factor in the decision making process of many money making hopefuls.

The housing market for example in May 2009 was the fourth consecutive increase in monthly sales. Also the average sale price of a home sold through multiple listing services has reached a new record of $319,757. The Ottawa Real Estate Board reported for the month of July that more than 1577 homes were sold, which was 11.5 % higher than July 2008. Rick Snell, the president of the Ottawa Real Estate Board said that the high demands from consumers combined with low listing inventory is creating a strong seller’s market with multiple offers and increased pricing. The Canadian Real Estate Association states actual sales were up in 14 of the 25 major markets CREA surveys with major markets leading the way. The jump in these sales is a direct reflects as supply is in demand.

Canada’s Economical Growth Expected to Grow in 2010

COUNTRY RANKINGS

Country	Country Ranking in 2008	Country Ranking Expected in 2010
Australia	6	2
Austria	4	6
Belgium	12	4
Canada	11	5
Denmark	5	7
Finland	15	13
France	9	9
Germany	13	14
Ireland	17	17
Italy	16	12
Japan	14	11
Netherlands	3	15
Norway	1	1
Sweden	7	10
Switzerland	2	8
U.K.	10	14
U.S.	8	3

Source: Conference Board of Canada & Canwest News Service

CANADA’S INDICATOR RANKINGS

	2008	Expected in 2010
Overall Economy	11	5
Income per capita	8	8
GDP Growth	12	6
Labour Productivity Growth	12	14
Inflation	1 (tie with five countries)	1 (tie with five countries)
Unemployment	11	9
Employment Growth	8	8
Inward FDI performance index	10	3
Outward FDI performance index	9	5

Source: Conference Board of Canada & Canwest News Service

40 Kempster

Location: Britannia
Price:$369,000.00

Why have two places, when you can live the cottage lifestyle in Ottawa? This home was originally a cottage, then transformed into a fully renovated dreamy New England-style home. 3 bed/2 bath on quiet street mere blocks from river. Granite, hrdwd thru, main floor family rm, s/s appliances, large treed lot, tons of windows allow natural light to flow in, this is a must see!

29 Main St. Unit 201 - Glassworks

This stunning 1138 sq.ft.Charlesfort Glassworks condo is steps from the canal and downtown. It has hardwood and granite throughout. Master bedroomon 2nd floor has juliette balcony that overlooks living room and dining room. Balcony allows for great views of rideau canal. This unit includes 2 parking spaces.

SoHo Parkway

Soho Parkway - by Mastercraft Starwood

28 Million Dollars, worth of real estate sold within 4hrs! What a successful evening. This development will surely turn heads.

Click here for the full New Homes and Condos article.

Common Mistakes of Real Estate Marketing

Marketing is one of the major aspects of a successful real estate investment. If you are able to market your home properly, then you certainly are ahead of the rest. Having a well staged, and presentable house, will not only attract more buyers for viewings but will also result in selling the unit quicker. Failure to market your unit properly will more then likely result in your house being on the market for quite longer then usual.

If you take help from a real estate agent in selling your property, you can sell it faster. ‘For sale by owner’ properties take longer time to sell because of lack of proper marketing strategies. A professional real estate agent can sell it much faster as they have the experience and expertise to accomplish this.

When you see that similar properties in your real estate area are getting sold but not yours, you should immediately check whether it is due to lack of marketing or not. The general psychology of the buyers if they get to see a ‘for sale by owner’ sign in front of the yard is that they think the owner wants to make huge money out of it.

The result of this is that buyers tend to overlook that property. Suppose you have a nice property that you want to sell. You should never try to sell it to someone who knows about it. Besides, you won’t be attracting competitive bids till the time a good number of people know about it and wants to own it.

Avoiding making these common mistakes should you wish to earn great deals from your real estate investment. The novice investors tend to make a selection of their properties on the basis of numbers. If by chance they purchase a unit at a great value and then fix it up with minor renovations and then sell it for a high price, then they have made an excellent investment.

However, the aim of the real estate investor should be drawing profit. Lack of good marketing strategy while selling a property before buying it, is a great mistake that most of the novice real estate investors make. The marketing strategies have to be decided upon before purchasing a real estate.

One of the most critical things that needs to be done is budgeting a cost for how to market your house. A key rule to live by is to never go beyond your affordability and use only those strategies that come within your budget. You can even take help of a professional to see what strategies he follows.

Real estate investment has several risks. However, there are also ways by which one can manage these risks. There are many investors who in a bid to make quick money rush into matters ultimately losing thousands of dollars. One of the excellent tips for management of real estate investment risks is not expecting appreciation.

Home Selling Tips for First Time Home Sellers

When you are selling your home for the first time, you need to take care of certain important things. These are very essential if you intend to sell your home fast and at a good price. The first thing is pricing your home correctly. If the price is too high, it wont’ sell. The lower the price, the more hits its going to receive and greater chance of it being sold faster.

However, this does not mean that you will price it very low. For knowing the right value of your property in the real estate area, you can either look out the prices of other homes for sale in your locality or take advice from some professional real estate agent.

The next essential thing is staging the property. This will certainly make you earn great deals from the transaction. Your home must look good so that it can attract the buyers easily. For this, you should remove all the clutters, paint if needed, mow the lawns, and place everything nicely on the day when a buyer visits your home.

However, you need to make sure that the person is willing to see your property by asking a few questions to him right on the first day when he makes his first call to you. These questions should relate to the amount the buyer is willing to invest on your property, their affordability, whether they have a good credit, etc.

You should allow your potential buyers to move freely and give a look at your house. It is after all an emotional decision for your buyer. They should have this freedom to get a feel of the property that will help them in taking decisions. You should obtain a qualified bank appraisal and committal for finance from a lender.

A qualified bank appraisal is one of the best marketing tools for your property in today’s real estate market. Make sure that you are obtaining a pre-approval for the next home you intend to purchase. You can put your home on MLS as that will give it a wide exposure to the people from the real estate world.

This can help you in getting multiple offers. You can take pictures of your property and put it online so that the interested buyers can see it right there before coming to see your property. Show emphasis on the location of your property. If its within close proximity to schools, hospitals, recreational parks, and shopping malls will help in selling your property to potential buyers.