http://www.reincanada.comRSS feeds for R.E.I.N. - Canada Real Estate Investment Strategies & Tips60http://www.reincanada.com/rein-research-reports/articletype/articleview/articleid/53/are-condos-a-good-investment.aspx#Comments0http://www.reincanada.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=71&ModuleID=401&ArticleID=53http://www.reincanada.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=53&PortalID=0&TabID=71http://www.reincanada.com/rein-research-reports/articletype/articleview/articleid/53/are-condos-a-good-investment.aspx Are condos a wise investment? MONEY 401 | They can be, but you must know the lay of the land ELLEN ROSEMAN Aug. 6, 2006. 08:43 AM Is it a good time to invest in a condo apartment in Toronto? And if so, what are smart buying tips for a condo investor? Industry insiders say you have to do your homework. It's a tough time to buy since prices are rising, but rents are stable or going down. Rents for condo apartments in Toronto have been relatively flat since 2003, says Jason Mercer, a senior market analyst with Canada Mortgage and Housing Corp. During the same period, the prices have gone up steadily in both the new and resale market. "On average, the income-generating ability of condominium apartments has declined, making other asset classes more appealing for investors," says a CMHC condominium survey last fall. There are warning signs for the Toronto real estate market, which had its best year ever in sales of existing homes last year. "This year, we're seeing a bit of a plateau," says Mercer, who predicts that annual sales will fall by about one per cent. Meanwhile, there's a surge of new condo construction in Toronto. About 38,000 rental apartments are coming on stream and will be registered this year and in 2007. Still, Toronto is not seeing the same speculative activity as it did a decade ago. Investor-held rental condo apartments are now 18 to 19 per cent of the total market, compared to more than 30 per cent in the mid-1990s. The vacancy rate for rental condo apartments was just 0.9 per cent last year — compared to an overall 3.7 per cent vacancy rate for all rental units in Toronto. Given what could be a difficult time for condo investors, what should you be looking to buy?  Boycott big, says Brad Lamb, broker-president of Brad J. Lamb Realty Inc. "Investors should buy the smallest units in the building, anywhere from 350 to 600 square feet," says Lamb. "Tenants aren't rich and powerful. They can afford to rent the lowest common denominator." Lamb is a top condo broker, known for his eye-catching billboards across the city. His website says he sold more than 1,300 condo units last year for $400 million. He has a few rules for investors, starting with the size of the down payment. "You should always put 25 per cent down. If less than that, you're speculating," he says. How much income do you expect the rental unit to generate each year? That's gross income, not net income. Multiply the gross income by 11. That will give you the maximum price to pay. "The factor I use used to be 10, but that doesn't work any more," he says. Suppose you figure a condo will generate $1,400 a month or $16,800 a year. Multiply by 11 and you get a top purchase price of $184,800. You should aim to earn a 10 per cent return on your invested capital, he says. Suppose you buy a $180,000 condo unit and put down 25 per cent, or $45,000 (your invested capital). Your goal is to clear $4,500 a year (your net income after expenses). Condos that meet these criteria are not the easiest thing to find in Toronto, he says. "You have to hook up with the right real estate brokers. If you're a loyal client, they'll get you into properties before the public do. It's much like getting into a hot night club." Lori Franze is a real estate agent with Coldwell Banker, selling units at the new Pinnacle towers on Yonge St. (near the Air Canada Centre). Here's her advice: Put enough into the down payment to cover mortgage principal, interest, taxes and condo fees, including potential increases in condo fees. Invest in mid-priced condos. Don't buy more expensive units, which won't cover their costs in rent. Anything under 700 square feet performs best. Remember you'll always be competing against the lowest-priced condos, with units for sale or lease. Do your research on rents in the neighbourhood, vacancy rates and the time it takes to find a tenant for similar units. There's nothing worse than buying a place that will sit vacant for months. Be prepared to do your own property management or consider the costs incurred to hire someone. It may be worthwhile to hire a real estate agent to rent out your condo unit. "Realtors not only bring expertise in preparing the lease documents to best protect the owner, but also bring a higher quality of tenants," Franze says. Donald Bentley, president-elect of the Toronto Real Estate Board, works with Royal LePage in the Leaside area of Toronto. "Look for condos that appeal to the widest group of people possible," he says.   This means easy access to public transit, shopping, parks and other amenities. If you're buying a unit in a new building, check the quality of construction done by the developer in the past. "You want to make sure the developer finishes things to the highest standard, so the building doesn't get run down in a short period of time." And if you're looking at an existing building, check the percentage of units that are owner-occupied. More owner-occupied units means more care, maintenance, decorum and pride of ownership, Bentley says. He advises buying in buildings that have a higher percentage of larger units, such as two bedrooms or one bedroom with den. "If more of the building is occupied by people who can afford higher rents, it will weather better than a building full of small units, appealing to a relatively transient group who are using it as a stepping stone." Does the condo unit have a parking spot with a separate deed? This means you can sell it if you don't need it. "Liquidity is an important factor," Bentley says. "Being able to divide and sell separately does have some merit. "We have a parking spot on sale now for $38,000. But the purchaser has to own a unit in the building." Don Campbell teaches courses in real estate. He has advice for condo buyers in a new book, 97 Tips for Canadian Real Estate Investors (Wiley, $26.99). Rules change from one condo corporation to another. Do the condo bylaws allow rentals in the building? If so, how many are allowed and how many are currently in the building? "Many novice investors have been caught buying properties in buildings where the rental allotment was already filled, so they had to keep their property vacant or resell it," he says. Some rules are quirky. Tenants may not be allowed to park their bicycles on the balcony or set up a home-based business. Read the bylaws so you know what you're responsible for and what you can and can't do as an owner. Check the reserve fund study that shows the current condition of the common areas, the schedule to replace them and the cost of doing so over the years. This is done by an outside company. Is the condominium board doing what the study says it should be for maintenance and building a reserve fund? The condo board does not have to do everything the study suggests, but if it's not building adequate reserves to cover obvious future major expenses, you can expect to receive a hefty bill in the future. "If the reserve fund study isn't complete (perhaps it's in the process), you need to talk to your lawyer about an addition to your contract," he says. Include something like this: "Seller warrants there are no special assessments required, contemplated or unpaid." There's a helpful worksheet for condo investors in Campbell's book. You can also consult CMHC's Condominium Buyers' Guide, a free publication available at its website,  http://www.cmhc.ca . Next week, we wrap up this series on condos with a look at the feasibility of buying and renting to family members. hostSun, 06 Aug 2006 20:43:00 GMTf1397696-738c-4295-afcd-943feb885714:53http://www.reincanada.com/rein-research-reports/articletype/articleview/articleid/44/alternative-investing-in-real-estate.aspx#Comments0http://www.reincanada.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=71&ModuleID=401&ArticleID=44http://www.reincanada.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=44&PortalID=0&TabID=71http://www.reincanada.com/rein-research-reports/articletype/articleview/articleid/44/alternative-investing-in-real-estate.aspx REPORT ON ALTERNATIVE INVESTING: REAL ESTATE Forget everything you knew about mortgages If you approach the financing of rental property as if you were buying your own home you could make costly mistakes THERESA EBDEN Globe and Mail February 26, 2006 Sometimes finding an investment that's "as safe as houses" means exactly that. With property prices increasing in most Canadian cities, and interest rates near historical lows, a growing number of people are becoming landlords in order to generate extra income, says Michael Polzler, executive vice-president and regional director at RE/MAX Ontario-Atlantic Canada Inc. "Many Canadians see real estate as a safe and predictable investment, especially for the longer stretch," Mr. Polzler said. "Canada gets between 200,000 to 300,000 new Canadians annually, and it's between four and six years before they're ready to buy . . . so they rent." Canada's population has risen by about 1 per cent for at least the past five years, helping drive demand for rental housing. Potential investors, however, should understand that arranging financing isn't like getting a mortgage for their own home. Ratio of financing To start with, potential landlords should make lower down payments than they would on the home in which they live, according to Don Campbell, president of the Real Estate Investment Network. An investor who buys a $100,000 property outright that appreciates 5 per cent in value in a given time period will have a return on investment of 5 per cent, Mr. Campbell explains in his book, Real Estate Investing in Canada. But if that same investor puts down only $25,000 to buy the same property, the return becomes 20 per cent. Banks will generally demand a 25-per-cent down payment. Mortgage insurance from an organization like Canada Mortgage and Housing Corp. or General Motors Acceptance Corp. can reduce this minimum to 15 per cent for an investment property and 5 per cent for a primary residence or a rental property in which the buyer also will live. Some alternate lenders will arrange financing that allows you to pay as little as 10 per cent down, but in Mr. Campbell's eyes this is often a mistake. "It can be very attractive if you're in the right market, at the right time, and the rents cover all your expenses. But I don't recommend the super-high financing," he said. "If you're over-financing and you're down to the last nickel, that's when the water heater explodes, inevitably." High-ratio mortgages -- those with a down payment of less than 25 per cent -- aren't common because many investors don't want to pay the insurance premium, said Peter Majthenyi, a consultant at mortgage broker firm Mortgage Intelligence Inc. For investors who opt for a high-ratio mortgage, Mr. Majthenyi generally finds more relaxed requirements for fire and hydro retrofits with GMAC than with CMHC. Shopping for a mortgage Don't just go to your existing banker and accept the mortgage rate offered, said Doug Gray, a former practising real estate and business lawyer and author of Making Money in Real Estate. In general, lenders won't give as good a mortgage rate on an investment property as they would on a person's own home. Getting as many lenders competing for your business as possible requires shopping around for mortgage brokers, Mr. Gray said. "They have all the lenders in their database," Mr. Gray said. "The individual normally doesn't have the street smarts, skill, time and inclination to knock on doors." When it comes to getting approvals, lenders will consider the state of your personal finances, your potential rental income and whether tenants exist, Mr. Gray said. Sometimes, a bank will offer a blanket mortgage for both your home and your investment property. Avoid this, Mr. Gray advises. "The basic rule of thumb with investing is you try not to have your principal residence involved at all," he said. Not all mortgage brokers are created equal when it comes to handling investment real estate deals, and you should seek out the more experienced ones for a smoother transaction, Mr. Campbell said. Also, giving bankers an organized binder of information holding everything from your net worth to proof of income to a pre-filled application will make it easier to seal the deal, he added. Structure of the purchase Sophisticated investors will consider purchasing through a trust if they want to take advantage of income splitting, said George Vandebeek, a tax partner at BDO Dunwoody LLP in Markham, Ont. Specifically, discretionary trusts are set up with you, the investor, as the trustee of this separate legal entity that holds a property for the beneficiaries -- who can be anyone, but are usually a spouse or children. As a trustee, you have the discretion to say which beneficiaries the trust will pay income or capital to. You can take advantage of the lower marginal tax rate of a spouse or child, who then uses the money from the trust, such as for tuition or hockey lessons. Beneficiaries must pay a rate of interest annually to the trustee by Jan. 30 of the following year, or the income goes back to trustees at the fully taxable rate. Setting up a trust costs about $2,000, and tax benefits are generally $300 to $400 each year, Mr. Vandebeek said. The trust ownership structure is more popular among small real estate investors than corporate structures, he said. "There's no real tax advantage to corporate ownership over personal ownership, unless you have an active business," he said. If you're purchasing many properties, or a large building with many tenants, a corporation will provide an extra layer of protection against your personal assets in case you are sued, he said. Don't cut corners If you're considering an investment property in another city, be aware of the costs of monitoring it, said Christine Mitchell, sales manager and broker for Royal LePage Real Estate Services in Mississauga, Ont. Otherwise, investors risk finding their hard-earned investment has been misused, she said. Marijuana grow-houses are on the rise, and targeted houses are primarily in good areas, with unfinished basements and with wood or ceramic floors that make it easy to manoeuvre pots and soil, she said. These tenants usually want to pay rent all up front, and the mould and bills for electricity as well as legal costs can be ruinous, she said. "You have to keep aware of your properties," Ms. Mitchell said. Another cost that potential landlords shouldn't skimp on is an accountant's assessment of how the new investment will affect taxes, she said. Sometimes investors are attracted to what Mr. Campbell calls "grey waters." For example, an unscrupulous broker may suggest you'll get a better mortgage interest rate if you sign a letter of intent to move into the property, even if you have no such plan. This can result in fines, fraud charges and loss of support from future lenders, he said. Paying a lawyer to look over your mortgage agreement before you sign is a good way to ensure your agreement is entirely above board, he said. hostSun, 26 Feb 2006 20:54:00 GMTf1397696-738c-4295-afcd-943feb885714:44http://www.reincanada.com/rein-research-reports/articletype/articleview/articleid/43/financing-rental-property.aspx#Comments0http://www.reincanada.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=71&ModuleID=401&ArticleID=43http://www.reincanada.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=43&PortalID=0&TabID=71http://www.reincanada.com/rein-research-reports/articletype/articleview/articleid/43/financing-rental-property.aspx Financing a Rental Property Feb. 12, 2006. 09:02 AM ELLEN ROSEMAN A popular rallying cry for real estate investors is, "No money down."  When you buy property in a hot market without risking any of your own cash, you stand to make huge gains because of leverage. Can you get no-money-down financing if you're dipping your toes into the rental property market for the first time? Maybe, but it will likely cost you more than if you find the money for a down payment. You have to ask yourself a few questions: Do I want to buy a property I can live in myself and rent out to others? Do I want to deal with major lenders? Or will I accept financing from alternative or private lenders? Do I want to get a mortgage insured by the Canada Mortgage and Housing Corp. (CMHC)? Or do I want a second mortgage? If you decide to go the owner-occupied route, you'll find your financing options are greater. CMHC mortgage insurance protects lenders against default. This lowers the risk and lets them offer more competitive rates. You can get a CMHC-insured mortgage for 95 per cent of the purchase price if you buy a duplex and live in one unit, says Paula Gasparro, manager of business development. You can get a CMHC-insured mortgage for 90 per cent of the price if you buy a triplex or fourplex, where you also reside. If you don't live in the rental property, however, CMHC will insure your loan for only 85 per cent of the value.  (These are all maximum amounts, depending on the property and your financial circumstances.) Don Campbell is an experienced investor who started a for-profit education and networking group. His advice: Be honest. "If you don't plan to move into a property, do not sign an affidavit or declaration saying that you are," he says in his book, Real Estate Investing in Canada (Wiley, $34.99).  "In fact, you should run away as fast as possible from any banker or broker who asks you to sign such a document, if they have the full knowledge that you are not going to move in." Lying on a mortgage application is not the way to create long-term wealth, he says. Moreover, you're likely to get caught. CMHC and major financial instutitions have stepped up their investigation of homeowner loans. They're knocking on neighbours' doors, asking about the property you purchased. "They have one purpose in mind: to find out if you have fraudulently obtained a loan. If you have, they will go after you with all of their legal might." In Edmonton, 55 people were arrested in 2004 for participating in such a scheme, he points out. They lost their properties and were also sued for punitive damages. You have to get an insured first mortgage if your down payment is less than 25 per cent. You can add the insurance cost to the principal and spread it over the life of the loan. As well, if you choose not to live in your rental property, you have to show that your debt costs can be sustained. CMHC requires tenants' rents to cover 110 per cent of your debt. And you must have a minimum net worth of $100,000, or 25 per cent of the property value. You can bypass mortgage insurance by taking out a second mortgage. This can bridge the gap between what the bank lends and what the property costs. A second mortgage carries a heftier interest rate than a first mortgage. But it's your best option if you want to buy a rental property with no money down. Mortgage brokers are experienced at finding second mortgages. They can tap a variety of lenders, ranging from alternative financial institutions to private individuals. Elisseos Iriotakis, a mortgage broker and certified financial planner, works in a Mortgage Centre outlet in Toronto's Bloor West Village. About 40 per cent of his clients are buying a second property. He advises using a line of credit secured against your home to borrow what you need — and more — to purchase a rental property. You get a big tax break if you borrow to invest in real estate. The entire mortgage interest you pay can be deducted from your taxable income. Mortgage interest is not tax-deductible for a principal residence. But you can write off part of the interest if you rent out part of your house. Here's an example of his borrow-to-the-hilt strategy. Suppose you have $200,000 worth of equity in your own home (after deducting the mortgage). You plan to use a line of credit to buy a rental property. Rather than borrowing $200,000 against your home, Iriotakis says you should ask the bank for a $300,000 line of credit. This gives you a tax deduction for interest on an extra $100,000 of mortgage debt owed already — interest that is not normally deductible. You take out a second mortgage to cover the rental property's price that is not covered by your $300,000 line of credit. Then, the interest paid on this loan is also tax-deductible. There are other tax advantages when you invest in rental property, Iriotakis explains. You can pay your spouse or children to take care of the property and collect rents. Then, you can deduct the salary expenses from your rental income. As well, any losses you incur in the first few years of rental property ownership can be written off against your other personal income — not just your rental income. His advice to new investors: "Have everything well-documented, especially if you're taking out equity from one property to invest in another. The Canada Revenue Agency needs a paper trail." Next week, we look at tricks for finding and keeping good tenants. hostSun, 12 Feb 2006 20:52:00 GMTf1397696-738c-4295-afcd-943feb885714:43http://www.reincanada.com/rein-research-reports/articletype/articleview/articleid/42/digging-for-condo-gold.aspx#Comments0http://www.reincanada.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=71&ModuleID=401&ArticleID=42http://www.reincanada.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=42&PortalID=0&TabID=71http://www.reincanada.com/rein-research-reports/articletype/articleview/articleid/42/digging-for-condo-gold.aspx Digging for condo gold The future looks good, but do the math before investing By LINDA LEATHERDALE, BUSINESS EDITOR, TORONTO SUN January 29, 2006 The view took my breath away. Toronto's skyscape reflecting on the shimmering waters of Lake Ontario, with Bronte Harbour's trendy shops and newly appointed yacht club only a block away. This stunning 15th-floor condominium cried out to me. Granite countertops, built-in wine chiller, stainless steel appliances, and a bathroom to die for -- with Jacuzzi, fancy fixtures and heated floors. The investor who snapped up this two-bedroom fixer-upper last August for $159,900 spared no detail in his masterful renovation. Staging the furniture, complete with plasma TVs in the master bedroom and living room, made such a powerful presentation, a buyer would be tempted to ink the deal then and there. But wait! What did Don Campbell, author of Real Estate Investing in Canada tell me? "Buy with your head, not your heart." I remembered. I've got to make the numbers work if I want to be successful at real estate investing. This baby was now selling for $224,900, a pretty sizable gain in just six months -- yet still a reasonable price, considering across the street you can't get into the towering waterfront buildings without paying at least $450,000. But the key question was how much rent could I get for this two-bedroom beauty? "It's all about positive cash flow," said Russell Westcott, general manager of Campbell's company, the Real Estate Investment Network. In Campbell's book, on page 260, a property analyzer helps prospective investors know whether the property is an alligator that will keep eating up money, or whether it has potential. In short, if what you can get in rent in a year divided by the purchase price equates to 9%-10%, then it's okay to proceed. NEEDED $1,875 A MONTH Now I had do some homework. When I crunched the numbers, I'd need to get $1,875 a month in rent. A quick comparison of rents for two-bedroom units in the neighbourhood showed I was on the high side. And besides, not far away, in suburban areas north of QEW, you could rent a whole three-bedroom home for almost the same price. Sure, I could speculate that our record, hot real estate market would keep steaming ahead to push the price of this two-bedroom baby through the roof. And I could use the gains when I sold to offset losses in rent. But now I'm a fly-by-night speculator. In the end, I followed my head and walked away. Some would say that's a good thing: Why would I want to invest in an overbaked condominium market that surely must, sooner or later, go bust? But like Warren Buffet's strategy, it's all about finding gems to buy and hold, in good times and bad. And besides, according to the market analysts at Canada Mortgage and Housing Corp. (CMHC), the sky ain't falling, even though we had record condo starts in Toronto last year, with even more starts expected this year. One of the big reasons for no bust is we don't have a speculator-infested condo market, like we did in the late 1980s, when buyers were flipping units before the ink dried on the deal. New rules have deterred such speculation. Fact is, today only 19% of registered condo apartments are owned by investors -- compared to 30% back in 1995. Who's buying are young people who can't afford the high cost of a detached home and empty nesters who are downsizing. They'll be more of them as baby boomers age. "This market is driven by ownership. And with steady employment growth and low mortgage rates, we're still seeing price increases above inflation," said Jason Mercer, CMHC's senior market analyst for the GTA. DEMAND FOR RENTALS UP As for investors, here's encouraging news: The vacancy rate for apartment rental buildings is falling from a record high of 4.3% in 2004 (a result of low interest rates encouraging renters to buy homes) to 3.7% in 2005 and possibly 3.5% this year. But the vacancy rate for condo units is even lower at 0.9%. And that has led to a 1% increase in average rents for two-bedroom units, which now fetch $1,760 a month, up from an average of $1,735 in 2004, according to the latest Rental Market Report by the Toronto Real Estate Board. Interestingly, a condo apartment fetches more rent than a condo townhome -- and, of course, rents vary from neighbourhood to neighbourhood. But let's be real. A 1% gain is still below inflation. And that's why homework is important for the serious investor. Bottom line is that for investing and tax reasons you want to make sure you've got positive cash flow. Your costs include the cost of carrying your mortgage, condo fees, utilities costs (will the tenant pay them or you?) property taxes, repairs and maintenance. You've also got to factor in a vacancy allowance, because no unit is occupied 100% of the time. In Toronto, factor in a vacancy rate of 3% to 6%. Toronto real estate lawyer Alan Silverstein also cautions there's a difference between buying a new condo or a resale. "If you're buying a brand new condo, you may not be able to rent it out until it is registered, which could mean several months of down time while you have possession but no title," he said. More advice: - Before you buy, check out the status certificate of the condo corporation, plus the reserve fund. If it's an older building, will there be major maintenance costs, which could push condo fees higher? - Know your obligations as a landlord. Go to the Ontario Rental Housing Tribunal (orht.gov.on.ca) for info. - Do a thorough check on the tenant, including credit checks. - Have a lease. You can ask for but not demand post-dated cheques. You can ask for first and last month's rent. Security deposits are banned. - Hire an accountant. "Show positive cash flow from day one to keep the taxman off your back," said Silverstein. hostSun, 29 Jan 2006 20:50:00 GMTf1397696-738c-4295-afcd-943feb885714:42http://www.reincanada.com/rein-research-reports/articletype/articleview/articleid/41/rein-members-in-toronto-star.aspx#Comments0http://www.reincanada.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=71&ModuleID=401&ArticleID=41http://www.reincanada.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=41&PortalID=0&TabID=71http://www.reincanada.com/rein-research-reports/articletype/articleview/articleid/41/rein-members-in-toronto-star.aspx Cashing in on the real estate boom By: ELLEN ROSEMAN Jan. 22, 2006. 01:00 AM Wednesday, August 27, 2008 Raymond and Angelina Wu live in Toronto. He works in pharmaceutical sales and she's a regional sales manager with a women's clothing chain. The couple also has a sideline business, buying and selling real estate in the fast-growing bedroom communities outside Toronto. In just two years, they have bought five rental properties in Hamilton and Kitchener and have sold one at a profit. "Before getting into this, I was a renter myself," says Raymond Wu, 29. "I know about abuses and horror stories. "But I'm learning how to screen tenants and give them incentives to stay longer." He credits the Real Estate Investment Network, a paid-membership group, with providing the skills, confidence and contacts needed to succeed. "I've been to other seminars and courses, paid thousands of dollars, and never gotten anything out of them," Wu says. "I came upon REIN and found the first meeting was mind-blowing." When real estate markets are hot — as they are in Toronto and environs — it's a dangerous time for rookie investors. Networking clubs proliferate and experts write bestselling books, explaining how to buy properties that pay for themselves. Don Campbell is a self-taught real estate investor and consultant who started REIN 14 years ago in Calgary. He visits Toronto each month to lead courses and meet members. His book, Real Estate Investing in Canada (Wiley, $34.99), has been reprinted five times in the past year. With 27,000 copies sold, it's breaking records for real estate guides. But Campbell is no get-rich-quick guru with a giant ego. He comes across as modest and anxious to share his hard-won knowledge with others. Moreover, he's donating his book royalties to charity. So far, he's raised $50,000 for a house — to be built by Habitat for Humanity, using only women's labour — for single mothers in Edmonton. The book combines motivational thinking — "you must change your actions to change your results" — with checklists, scorecards and formulas to analyze properties. He uses a simple rule to screen properties: The annual gross rent must be at least 10 per cent of the purchase price. If a property rents for $925 a month and you can buy it for $100,000, is it worth checking out? Yes. Gross annual rent adds up to $11,100, which is more than 10 per cent of $100,000 (or $10,000). But if the purchase price is $200,000 for a property with gross annual rent of $11,100, don't waste valuable time investigating it further. Another rule is to avoid "alligators," or properties that generate too little income to cover their costs. If you go into debt each and every month to feed these black holes, how long before you exhaust your monthly job income? And how will you afford to buy more income properties? "Negative cash flow properties can eat you alive — that's why we call them alligators," he says. Campbell says you can learn enough from his book to go out and start buying real estate. But there's barely any advice about finding and keeping good tenants for your properties. That's a curious omission, one that is offset by ubiquitous sales pitches for Campbell's self-help networking group. REIN membership costs $199 a month (plus GST), with a one-time $200 fee to join. You have to stick around for at least 17 months, which brings the minimum cost up to about $3,500. Why 17 months? He wanted to tie people up for three years, but felt it wasn't realistic or saleable. "Veteran real estate investors will tell you that it will take at least three years of real estate investing before you will start to see the real fruits of your labour," he advises in the book. Make sure you're emotionally prepared to wait that long, he says. Find a system and don't deviate from it. Your investments should be boring and you should find your excitement elsewhere. In an interview, Campbell throws in tips about how to treat tenants with respect. Think of them as your customers or clients. Provide a welcome basket when they move in. Bring along a box of donuts with you each time you visit. At monthly meetings, Campbell emphasizes economic and market research. He invites respected bank economists, such as Benjamin Tal of CIBC and Carl Gomez of RBC Financial. He gives out lists, updated every two years, of the top 10 Ontario regions where members should invest. His number one choice is Simcoe shores (Barrie and Orillia), followed by the tri-city area (Kitchener, Waterloo, Cambridge). Brampton/Orangeville is third, Hamilton is fourth, Markham and Stouffville-Whitchurch are fifth. Durham region (Pickering, Ajax and Whitby) is sixth. The Highway 404 corridor (Newmarket and Aurora) is in seventh place, followed by Oshawa and Ottawa. Toronto is in last place, but only for areas in transition from rough-edged to genteel. Two examples are the Junction in the west end (Dundas St. W. and Keele St.) and the area south of Danforth Ave. and east of the Beaches. He keeps a running tab of the number of properties purchased by REIN members. Last week, it was up to 14,000 properties, with a value of $1.29 billion. Members I spoke to enjoy the monthly meetings, which linger on close to midnight. They get useful information and make good contacts. Bob Tracz is on his third career. He started as a veterinarian, then went into sales and marketing. Anxious to avoid travel to the United States and stay closer to home, he and his wife Pam joined REIN in October 2004. "I became active right away, buying 11 properties and selling three. I won an award for being a top producer last year," he says. Four of the eight properties he owns are in Calgary (another of Campbell's favourites), two are in Barrie and two in Hamilton. Some are joint ventures with family members, including his daughter, a sister and a niece. Last month, he hooked up with a couple he met at a REIN meeting. Miki and Ronny Bukovsky have deep roots in real estate and focus on buying apartment buildings. "We have more than 200 doors," Miki says, referring to units in buildings she and her husband own. The Bukovskys came to Canada just four years ago from Israel. They needed help with marketing, while Tracz wanted to hitch his wagon to more experienced investors. It was a match made in real estate heaven, they say, with REIN acting as informal matchmaker. How long will Ontario's economy and real estate markets hold up? Campbell sees the good times stretching to 2012. Others aren't so sure. Next week, we'll look at economists' predictions about the prospects for real estate investors. hostThu, 26 Jan 2006 20:48:00 GMTf1397696-738c-4295-afcd-943feb885714:41http://www.reincanada.com/rein-research-reports/articletype/articleview/articleid/40/stouffville-makes-list.aspx#Comments0http://www.reincanada.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=71&ModuleID=401&ArticleID=40http://www.reincanada.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=40&PortalID=0&TabID=71http://www.reincanada.com/rein-research-reports/articletype/articleview/articleid/40/stouffville-makes-list.aspx Stouffville makes list of real estate hot spots Homeowners should 'have big, goofy smiles' April 17, 2004 Jeff Mitchell Staff Writer Stouffville Sun-Tribune So, you own a home in York Region. You genius. That's the assessment of the Real Estate Investment Network (REIN), an Alberta-based agency that has ranked communities here among the best places to invest in residential real estate in Ontario. "The people who live in York Region should be going around with big, goofy smiles on their faces," REIN president Don Campbell said.  "Eight years from now, they're going to look like geniuses. It should be a very good ride for the next few years." While real estate throughout the region has increased in value rapidly and should continue to for the foreseeable future, Markham, Whitchurch-Stouffville, Aurora and Newmarket are singled out as particularly hot spots in the REIN study. It applied criteria, including public transit, community amenities, the average income of residents, housing mixes and vacancy rates, to measure the potential for return on investment. "The good news is, anybody sitting in that area should be smiling," Mr. Campbell said from his Calgary office. "They will see their values increase more quickly than the provincial average." York Region also fared well in a survey of most desirable real estate investment locations prepared for the Toronto Star by Re/Max Ontario Atlantic Canada. Georgina placed fifth in the top 10, followed by Aurora at number 6 and Thornhill in ninth place. Local real estate agent Craig Proctor said even if the current sky-high listing prices don't keep climbing, the recent spike in the market will have lingering effects. "The market's pretty crazy out there right now; we're seeing some unbelievable prices," he said.  "This market's got legs." Traditionally, homes are valued according to past performance -- the prices at which homes in a given area have recently sold. But with interest rates the lowest they've been in decades and demand for homes exceeding supply, the old way of doing business has gone out the window, Mr. Proctor said. "In evaluating a home, we'd look in the rear-view mirror to see what's happened," he said.  "But the market has been increasing at such a pace, you now have to look at the market and actually build in a price increase." Like many observers, Mr. Proctor believes the market cannot continue its unbridled rise forever. But he's hopeful the boom won't be followed by a bust, the likes of which put real estate in the tank in the early '90s. "I don't know if it's going to drop at any time, but at some time, prices will stop going up," he said. Indeed, some restraint might be necessary to keep first-time buyers from being shut out of the market. That's what happened in the '80s: first-time buyers got priced out of the market. And that kills the cycle." But even if things level off, homeowners need not despair. It's an asset that allows one to hold and prosper. "Real estate is like stocks," Mr. Proctor said. "If you buy and you hold, you'll always be OK." The top 10 communities in which to invest in real estate, according to the REIN study, are: Barrie and Orillia; Kitchener-Waterloo and Cambridge; Brampton and Orangeville; Hamilton; Markham and Whitchurch-Stouffville; Pickering-Ajax and Whitby; Aurora and Newmarket; Oshawa; Ottawa and The Junction in Toronto hostSat, 17 Apr 2004 19:42:00 GMTf1397696-738c-4295-afcd-943feb885714:40http://www.reincanada.com/rein-research-reports/articletype/articleview/articleid/88/edmontons-strong-economy-to-continue.aspx#Comments0http://www.reincanada.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=71&ModuleID=401&ArticleID=88http://www.reincanada.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=88&PortalID=0&TabID=71http://www.reincanada.com/rein-research-reports/articletype/articleview/articleid/88/edmontons-strong-economy-to-continue.aspx Edmonton Economy Will Enjoy Strong Growth Through 2005, says EDE President Edmonton, Alberta - April 17, 2004 - Massive resource developments in Northern Alberta and Greater Edmonton, high disposable incomes and low interest rates are all driving Greater Edmonton's robust economy, said Allan Scott, President and CEO, Economic Development Edmonton, speaking here today at a conference organized by the education-oriented Real Estate Investment Network (REIN™) "Greater Edmonton has posted economic growth rates near or above three per cent in six of the last seven years," Scott told several hundred REIN™ members. "The Conference Board of Canada is forecasting a solid 3.5 per cent Gross Domestic Product (GDP) growth rate in 2004 and 3.4 per cent in 2005." Oilsands investment and drilling activity are primary drivers of Edmonton's strong economic performance. Alberta Economic Development estimates that oilsands investment will average $4 billion in each of the next 10 or more years. Oil is currently trading over $35 per barrel, and expected to remain strong over the near term, generating high levels of drilling activity.  This investment climate has generated high disposable incomes, spurring consumer confidence and buoyant retail sales. "Our high level of disposable income also attracts a steady influx of skilled migrants from other parts of Canada, which we need to support growth," said Scott. Combined with these factors are the record low interest rates experienced by all North Americans. Low interest rates have stimulated the purchase of high-priced durable goods such as houses and cars. Housing starts in 2003 are expected to hit 12,300, second only to the record 12,800 housing starts in Greater Edmonton in 2002. Growth risks in 2004 and beyond In 2003, SARS and BSE were the unexpected factors that negatively impacted growth across Canada. While it's hard to predict these kinds of events, businesses should monitor several situations. In-migration, while still strong, is slowing in response to strengthening economic conditions in other parts of the country. While the Edmonton and Alberta housing markets remain strong, many forecasters are projecting the housing market growth rate will slow at some point, bringing a slowdown in the construction industry. Another factor to watch is the success, or lack thereof, in drilling activity. Conventional oil deposits are becoming more difficult to find. Reduced investment in conventional oil exploration would have a profound, long-term impact on the Greater Edmonton economy. As well, extended closure of the U.S. border to live cattle would continue to negatively affect the economy and force restructuring in Alberta's beef industry. "Our economy has proved resilient in the face of BSE and other negative economic factors in 2003. If the U.S. economy can continue growing, Greater Edmonton's economy should continue to roll in the next several years," Scott said. Scott noted Edmonton has many positive investment factors in its favour. "Greater Edmonton's status as one of the most globally competitive cities for overall business costs was re-affirmed by the recently released KPMG Competitive Alternatives report. But Edmonton's advantages go far beyond business costs. Our first-class education and health systems, cultural richness and plenty of recreation and entertainment options add up to a quality of life that's hard to match," he said. "So whether you're looking at starting a new business, re-locating a business or looking for an exciting region to live, work and play in, now is an ideal time to choose Edmonton."  About REIN™ REIN™ members gather at carefully structured workshops each month - including the Saturday session Scott addressed - to learn and discuss the latest trends and strategies in residential real estate. They often tap into information sources that aren't easily accessible to the general public, giving them a distinct advantage in the marketplace. Each monthly session offers REIN™ members: global, national, regional, and local economic updates and analysis; strategies to apply economic analysis to specific investment opportunities; practical skills to identify, assess, acquire and manage specific properties; sharing and analysis of real-life case studies and success stories; opportunities to develop joint-ventures with other REIN™ members. REIN™ also offers members additional resources via a password-protected area on its Web site (www.albertarein.com). They include the opportunity to: ask free-of-charge questions of respected lawyers, accountants and other financial professionals who are on retainer to REIN™; download any of 60 real estate documents (property analysis forms, sales contracts, rental agreements, etc.) to execute real estate transactions; advertise to recruit joint-venture partners for prospective investments. For an interview with REIN™ President Don R. Campbell, call 1-888-824-7346. For more information about REIN™, go to www.albertarein.com hostSat, 17 Apr 2004 19:37:00 GMTf1397696-738c-4295-afcd-943feb885714:88http://www.reincanada.com/rein-research-reports/articletype/articleview/articleid/39/markham-makes-list.aspx#Comments0http://www.reincanada.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=71&ModuleID=401&ArticleID=39http://www.reincanada.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=39&PortalID=0&TabID=71http://www.reincanada.com/rein-research-reports/articletype/articleview/articleid/39/markham-makes-list.aspx Markham makes list of real estate hot spots Homeowners should 'have big, goofy smiles' April 17, 2004 Jeff Mitchell Staff Writer Markham Economist & Sun So, you own a home in York Region. You genius. That's the assessment of the Real Estate Investment Network (REIN), an Alberta-based agency that has ranked communities here among the best places to invest in residential real estate in Ontario. "The people who live in York Region should be going around with big, goofy smiles on their faces," REIN president Don Campbell said.  "Eight years from now, they're going to look like geniuses. It should be a very good ride for the next few years." While real estate throughout the region has increased in value rapidly and should continue to for the foreseeable future, Markham, Whitchurch-Stouffville, Aurora and Newmarket are singled out as particularly hot spots in the REIN study. It applied criteria, including public transit, community amenities, the average income of residents, housing mixes and vacancy rates, to measure the potential for return on investment. "The good news is, anybody sitting in that area should be smiling," Mr. Campbell said from his Calgary office. "They will see their values increase more quickly than the provincial average." York Region also fared well in a survey of most desirable real estate investment locations prepared for the Toronto Star by Re/Max Ontario Atlantic Canada. Georgina placed fifth in the top 10, followed by Aurora at number 6 and Thornhill in ninth place. Local real estate agent Craig Proctor said even if the current sky-high listing prices don't keep climbing, the recent spike in the market will have lingering effects. "The market's pretty crazy out there right now; we're seeing some unbelievable prices," he said.  "This market's got legs." Traditionally, homes are valued according to past performance -- the prices at which homes in a given area have recently sold. But with interest rates the lowest they've been in decades and demand for homes exceeding supply, the old way of doing business has gone out the window, Mr. Proctor said. "In evaluating a home, we'd look in the rear-view mirror to see what's happened," he said.  "But the market has been increasing at such a pace, you now have to look at the market and actually build in a price increase." Like many observers, Mr. Proctor believes the market cannot continue its unbridled rise forever. But he's hopeful the boom won't be followed by a bust, the likes of which put real estate in the tank in the early '90s. "I don't know if it's going to drop at any time, but at some time, prices will stop going up," he said. Indeed, some restraint might be necessary to keep first-time buyers from being shut out of the market. That's what happened in the '80s: first-time buyers got priced out of the market. And that kills the cycle." But even if things level off, homeowners need not despair. It's an asset that allows one to hold and prosper. "Real estate is like stocks," Mr. Proctor said. "If you buy and you hold, you'll always be OK." The top 10 communities in which to invest in real estate, according to the REIN study, are: Barrie and Orillia; Kitchener-Waterloo and Cambridge; Brampton and Orangeville; Hamilton; Markham and Whitchurch-Stouffville; Pickering-Ajax and Whitby; Aurora and Newmarket; Oshawa; Ottawa and The Junction in Toronto hostSat, 17 Apr 2004 19:34:00 GMTf1397696-738c-4295-afcd-943feb885714:39http://www.reincanada.com/rein-research-reports/articletype/articleview/articleid/38/beware-of-bankers-bearing-gifts.aspx#Comments0http://www.reincanada.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=71&ModuleID=401&ArticleID=38http://www.reincanada.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=38&PortalID=0&TabID=71http://www.reincanada.com/rein-research-reports/articletype/articleview/articleid/38/beware-of-bankers-bearing-gifts.aspx Beware of bankers bearing gifts April 17, 2004 Sandra E. Martin National Post These days, shopping for a mortgage is a lot like shopping for cosmetics. Financial institutions are all offering some kind of department-store-style "gift for purchase" when you get into hock with them. Except instead of sample-sized lipsticks, lenders are luring homeowners with bonus Air Miles, free home furnishings and good, old-fashioned cash. RBC Royal Bank, for instance, is working with new-home developers to entice buyers with gift certificates for The Brick. It's the bank's way of making warm and fuzzy with cash-strapped couples who have horrified visions of sitting on milk crates for months in their new homes. Buying a resale house? Ask for cash back with your mortgage, and the bank will advance you the furniture-shopping money you need. Over at Bank of Montreal, Air Miles collectors can claim up to 500 reward points. If you're not the loyalty-card type, BMO is happy to give you three free mortgage payments or, if you'd rather, up to $10,500 cash back on the average-sized $150,000 mortgage. For those who prefer to give unto others, Toronto-based Metro Credit Union will donate 0.5% of your principal amount to charity. So if you borrow $150,000, the credit union immediately cuts a cheque for $750 to the charity of your choice. And right now, TD Canada Trust's Web site is touting a Home Buyer Incentive - $1,000 in your pocket when you take out a new mortgage with them. What gives with all the graft? Not so long ago, the only thing homeowners expected from their mortgage was a way to pay for the roof over their heads. In the 1980s, people were grateful to the bankers who bestowed them with double-digit loans, and no one thought to ask for a better rate, let alone Air Miles. What a difference a couple of decades makes. "Twenty years ago, the posted rate was the posted rate. Now there's some scope for negotiation," comments Patricia Arsenault, an economist with Clayton Research in Toronto. Ms. Arsenault believes the shift in attitudes began in 1994, when the housing market slowed down, and lenders had to scramble for the few potential borrowers who were actively looking. To "get the competitive edge," she continues, financial institutions were forced to start discounting their posted rates. And once borrowers got a taste of negotiating power, there was no going back. The legacy of those times is that consumers, by and large, have come to take low rates for granted. You can apply online for a home loan through ING Direct and get a mouth-droppingly low 3.15%, no bargaining required. As a matter of fact, if you're okay with the concept of a mortgage that fluctuates with prime, you can sign up for under 4% pretty much anywhere. For those who prefer to pin down exactly how much carrying their mortgage will cost, the posted rate for a five-year fixed mortgage is currently just over 6% at major banks, and most customers with good borrowing histories will be able to bargain that down to around 5%. "These days, if you ask for a point off, you can get it," says Doug Anderson, a real estate agent based on B.C.'s Sunshine Coast, who's been in the home-buying business for 18 years. Therein lies the rub for lenders. How can you get customers to come knocking on your door if everyone else's mortgage rates are as cheap as yours? That's where most of these new perks are coming from. "All the different banks and credit institutions are trying to stand out," observes Don Campbell, a real estate consultant and president of the Calgary-based Real Estate Investment Network. "I've never seen it (the mortgage industry) this aggressive." Mr. Campbell cautions, however, that mortgage perks are not pennies from heaven. In most cases, the price of the perk is a higher-than-optimal interest rate, and you end up covering the cost of the perk, and more, in your future payments. Brian Mathey, a Kingston, Ont., mortgage broker and former banker, agrees. "In mortgages, there never really is a deal. There are good mortgages, and there are mortgages that are made to look good." Mr. Matthey, head of The Mortgage Professionals since 1989, describes the case of a client who came to him for help with refinancing a cash-back mortgage he signed up for almost three years ago. Although the client's original mortgage had seemed like a good deal, when he asked about refinancing to take advantage of current low rates, "all of a sudden his penalty is $11,000." Turns out that buried in the fine print of the mortgage agreement was the stipulation that, if he walked away before the term was up, he'd have to repay the cash bonus in full. Not all perks come with such punitive terms. However, Scott Brown, vice-president, residential mortgages and home financing for RBC Royal Bank, admits that cash-back mortgage customers will have to pay for their upfront money with a slightly higher interest rate. The amount of forwarded cash is entered into a computer program, which spits out the terms that will allow the bank to recover it over time. In the case of Metro Credit Union's new get-a-mortgage-give-to-charity product, the cost of each donation comes out of the institution's marketing budget. Vice-president of marketing and community relations Kimberley Ney is hoping charities that sign up for the program (there's no charge to the charity) will encourage their supporters to sign up for a mortgage with Metro. Instead of claiming the charitable donations on its own income tax return, Ms. Nay says the credit union will consider each one "a referral fee." For its part, the Bank of Montreal, has said that all or any of its perks can be added to any fixed-term or variable-rate mortgage, without sacrificing the ability to negotiate a better rate. At BMO, mortgages are considered a kind of loss-leader for the bank. Good, cheap, mortgages make for happy customers who go on to do business with the bank in other ways. "The mortgage business is so critical," says Maria Racanelli, vice-president of personal banking at BMO. "It's our way to develop and nurture relationships with our customers." Besides, Ms. Racanelli adds, some homeowners prefer to pay a little more for mortgage features that add convenience (cash back to buy furniture) or peace of mind (a fixed rate). Not everyone, she adds, is fixated on getting the cheapest rate: "If that was the case, we'd have everyone clamouring for the six-year, variable, below-prime" mortgage. If getting the lowest rate possible is your main concern, shop around for a product that's free from bells and whistles, and that fits your financial needs. Otherwise, there's no real harm in picking a mortgage with perks, as long as you're aware of all the costs - up front and long-term. "Make sure you keep asking what's behind the curtain," Mr. Campbell advises. "What, really, are you pitching me here?" hostSat, 17 Apr 2004 19:32:00 GMTf1397696-738c-4295-afcd-943feb885714:38http://www.reincanada.com/rein-research-reports/articletype/articleview/articleid/35/barrie-orillia-ranked-best.aspx#Comments0http://www.reincanada.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=71&ModuleID=401&ArticleID=35http://www.reincanada.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=35&PortalID=0&TabID=71http://www.reincanada.com/rein-research-reports/articletype/articleview/articleid/35/barrie-orillia-ranked-best.aspx Barrie, Orillia ranked best places to invest April 16, 2004 Toronto Metro Barrie and Orillia are the best Ontario communities to invest in, a report has found. The Real Estate Investment Network, an organization that teaches Canadians how to invest in real estate, identifies the 10 best Ontario communities most likely to generate strong returns on investment. Kitchener, Waterloo and Cambridge were second; Brampton and Orangeville tied for third; Hamilton was fourth; Markham and Whitchurch-Stouffville tied for fifth; the Durham region was sixth; Aurora and Newmarket tied for seventh; Oshawa was eighth; Ottawa ninth; and Toronto tenth. The search for the top 10 included 59 cities and towns. Barrie and Orillia achieved top ranking because they have transformed themselves from vacation get-away destinations to "economically viable area(s) of the province," the report says. Kitchener, Waterloo and Cambridge placed second because their combined population is growing at twice the national average. Also, their economies are undergoing expansion, and housing in the area remains affordable. The report also features a list of communities that have potential: London, Mississauga, St. Catharines, Niagara Falls and Windsor. For more information, visit www.ontariorein.com hostFri, 16 Apr 2004 19:24:00 GMTf1397696-738c-4295-afcd-943feb885714:35http://www.reincanada.com/rein-research-reports/articletype/articleview/articleid/34/report-gives-orillia-top-spot.aspx#Comments0http://www.reincanada.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=71&ModuleID=401&ArticleID=34http://www.reincanada.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=34&PortalID=0&TabID=71http://www.reincanada.com/rein-research-reports/articletype/articleview/articleid/34/report-gives-orillia-top-spot.aspx Report gives Orillia top spot for Ontario real estate April 16, 2004 Toby Gorman Orillia Packet and Times An organization formed to help average Canadians learn to successfully invest in residential real estate has declared Orillia the top spot in Ontario in which to invest. The Real Estate Investment Network (REIN), an Alberta-based company that has more than 900 members countrywide, researched and travelled to 59 Ontario cities before deciding Orillia has the best potential for future residential investments. "Property owners and people who are in the market for property in that area should be driving around with big goofy grins on their faces," said REIN president Don Campbell from Vancouver yesterday. "The potential in the Orillia area based on our thoroughly researched criteria is huge. We look at each city and consider the future rather than the past, its potential with respect to lifestyle, recreation, employment and proximity as well as demographics, and come up with a ranking." Barrie tied Orillia for first place while the Kitchener-Waterloo region and Brampton-Orangeville corridor finished second and third respectively. All but two of the top 10 cities, Orillia and Ottawa, were within an hour's drive from Toronto. Campbell, who said he plans to invest here, said that Orillia's population, its proximity and accessibility to Toronto, potential for waterfront development and lifestyle all pushed Orillia to the top. Robert Lamb, Orillia's economic development officer, said the report is a good indication of what lies ahead for real estate in Orillia. "I think the research (REIN) did indicates we are poised for good, stable growth in several aspects of our economy and that people will be attracted to that sort of positive climate," said Lamb, who met with REIN officials to provide information on the region. "I've had a huge number of inquiries recently relating to residential real estate because people are starting to recognize the potential here." Lamb believes the 52-page report, titled The Top 10 Ontario Towns to Invest in, carries some clout. The group has been providing investors with unbiased research for 12 years and its members own a cumulative total of $750 million worth of property throughout Canada. "To be at the top of their list is a very prestigious event for the community," said Lamb. According to the report, Orillia achieved top ranking because it has transformed itself from merely a vacation get-away destination to an economically vibrant area of the province. According to Campbell, the entrepreneurial spirit of Orillia and its representatives was key to creating a diversified and attractive community. He also said that strategically taking advantage of both the area's natural beauty and proximity to Canada's largest city, Barrie and Orillia, the two major cities on the shores of Lake Simcoe, will prove to have "an amazing run in the next decade."  To produce the report, REIN researchers compiled data from a variety of sources including the Ontario government, the Canada Mortgage and housing  Corporation, Statistics Canada and the Conference Board of Canada. The company's researchers traveled to each of the 59 cities to interview officials, assess local economies and inspect local housing inventories.  hostFri, 16 Apr 2004 19:22:00 GMTf1397696-738c-4295-afcd-943feb885714:34http://www.reincanada.com/rein-research-reports/articletype/articleview/articleid/33/ottawa-9th-in-growth-forecast.aspx#Comments0http://www.reincanada.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=71&ModuleID=401&ArticleID=33http://www.reincanada.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=33&PortalID=0&TabID=71http://www.reincanada.com/rein-research-reports/articletype/articleview/articleid/33/ottawa-9th-in-growth-forecast.aspx Ottawa 9th in growth forecast Outlook is hurt by slowdowns in construction, PS hiring April 15, 2004 Kristin Goff The Ottawa Citizen A slowdown in construction and the more cautious spending approach of the Paul Martin-led government are reining in economic growth in the capital region this year, according to the Conference Board of Canada. Overall, the region's total economic output, or GDP growth, will slow to 2.6 per cent this year down from 3.2 per cent last year, according to the Conference Board's Metropolitan Outlook, released yesterday. "That's still respectable," said Alan Arcand, an economist with the Ottawa economic think-tank. In a comparison with 18 major urban centres, Ottawa ranked ninth in GDP growth. It is expected to strongly rebound to 4.1 per cent growth in 2005. The federal government's program spending review, announced in December after Mr. Martin took over as prime minister, has gone a long way to taking the sizzle out of the economy, which last year had its best year since 2000. "The sectors that are dragging us down would be construction and slower growth in public administration and defence," Mr. Arcand said. This year the value of residential and non-residential construction will fall by more than five per cent, or $110 million, to $1.79 billion, Mr. Arcand predicts. Last year, construction output expanded by "a remarkable" 16.7 per cent on the double strength of a strong housing market and a string of major projects, including the Canadian War Museum, office buildings for federal employees, and hospital expansions. But a host of proposed projects, announced by former prime minister Jean Chretien, are on hold because of the spending review. Those include a multimillion-dollar federal court and parliamentary buildings. A proposed history museum has been cancelled. Residential construction will also slow from its recent strong pace. The Conference Board predicts a 12-per-cent drop in that sector this year to 8,000 housing starts. That's somewhat more pessimistic than the 8,800 Canada Mortgage and Housing Corp. predicts. The federal government, which employs 114,500 people in the region, is also expected to slow its expansion to one quarter last year's rate. The projected 1.3-per-cent increase in public service employment is about one-tenth the hiring binge of two years ago, according to the report. Despite the slowdown in construction and public service hiring, retailing, service and other sectors should hold up well, partly because they'll continue to benefit from employment and income growth in the region over the past several years, Mr. Arcand said. Technology is also showing some signs of modest improvement. A forecast of two-per- cent growth in that sector doesn't include any increase in employment. By 2005, technology should be doing much better, with growth of 4.8 per cent in production of goods and services. That would bring it back to levels not seen since 1999. Overall, the Conference Board predicts a modest a 1.3-per-cent increase in employment this year and an unemployment rate of 6.9 per cent, which is still slightly better than 7.1 per cent unemployment forecast for Canada. Unemployment in the region should fall to six per cent next year, the Conference Board said. Mr. Arcand declined to speculate on how a federal election might affect how the year unfolds in the region's economy. But others did not. The region "will be in a state of flux and see no growth" for at least the next six or seven months because of the coming election, said Barry Nabatian, general manager of Market Research Corp. That is his "best-case scenario," assuming an election in the next few months and a return of a majority government by the Liberals, he said. The slowing of the region's economy might have a bright side for some investors, according to a separate report yesterday that ranked Ottawa as the ninth-best of 59 Ontario cities for real estate investment. Ottawa's cooler housing market is a good thing for investors who have a better chance of finding deals for rental investment properties, said Don Campbell, president of REIN, a real estate investment network. He predicts rental vacancy rates, which have climbed recently, will decline again and the value of property will climb steeply again, after a brief plateau in the market. hostThu, 15 Apr 2004 19:16:00 GMTf1397696-738c-4295-afcd-943feb885714:33http://www.reincanada.com/rein-research-reports/articletype/articleview/articleid/32/london-makes-farm-team.aspx#Comments0http://www.reincanada.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=71&ModuleID=401&ArticleID=32http://www.reincanada.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=32&PortalID=0&TabID=71http://www.reincanada.com/rein-research-reports/articletype/articleview/articleid/32/london-makes-farm-team.aspx London makes ‘farm team’ in home investment area April 15, 2004 Hank Daniszewski Business Reporter London Free Press London has been consigned to the ‘farm team’ in a survey of the best Ontario cities for residential real estate investment. Barrie and Orillia tied for first place, and the Kitchener-Waterloo-Cambridge area came second in the survey conducted by the Real Estate Investment Network (REIN). Almost all of the top 10 communities were in the suburban belt surrounding Toronto. The report also includes an “Ontario farm team” of communities that didn’t make the top 10. The five “farm team” communities, in no particular order, are London, Mississauga, St. Catharines, Niagara Falls and Windsor. The study was conducted in 59 Ontario communities based on their “ability to generate strong returns on investment.” Ken Harper, president of the London and St. Thomas Real Estate Board, said he hasn’t heard of the group. Harper said the results were not surprising because of the soaring housing prices in the suburban belt surrounding Toronto. He said he doesn’t mind London’s “farm team” status if it means housing in the city is a great deal. “London is still one of the most affordable housing markets in the country, and a great place to live.” The survey notes proximity to Toronto is a driving force in real estate prices. “Any discussion of real estate in Ontario must include Toronto in one form or another,” the report notes. hostThu, 15 Apr 2004 19:15:00 GMTf1397696-738c-4295-afcd-943feb885714:32http://www.reincanada.com/rein-research-reports/articletype/articleview/articleid/31/report-cites-windsor.aspx#Comments0http://www.reincanada.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=71&ModuleID=401&ArticleID=31http://www.reincanada.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=31&PortalID=0&TabID=71http://www.reincanada.com/rein-research-reports/articletype/articleview/articleid/31/report-cites-windsor.aspx Report cites Windsor for real estate potential April 15, 2004 Bob Meyer Business Reporter Windsor Star Windsor did not make a list of the 10 best communities in Ontario to invest in residential real estate, but it was recognized as an up and comer. The Real Estate Investment Network (REIN) recently named Canada’s most southerly city, along with four others in the province, as Farm Team Members – communities that “didn’t quite make the top 10 this year but still offer significant potential.” “It (Windsor) could be on REIN’s Top 10 list in 2005,” the REIN report said. This Canadian organization was formed to help average Canadians learn to successfully invest in residential real estate, and issued a report identifying the 10 communities in Ontario in terms of their ability to generate strong returns on investment. Barrie and Orillia tied for first place, the Kitchener, Waterloo and Cambridge triangle was second, Brampton and Orangeville tied for third, Hamilton was fourth, Markham and Whitchurch-Stouffville tied for fifth, the Durham region including Pickering, Ajax and Whitby came sixth, Aurora and Newmarket tied for seventh, Oshawa eighth, Ottawa ninth and Toronto’s Junction area tenth. REIN researchers travelled the province, conducting research in 59 cities and towns, before compiling a 52-page report titled “The Top 10 Ontario Communities to Invest In.” London, Mississauga, St. Catharines and Niagara Falls were listed with Windsor. hostThu, 15 Apr 2004 19:13:00 GMTf1397696-738c-4295-afcd-943feb885714:31http://www.reincanada.com/rein-research-reports/articletype/articleview/articleid/30/city-homes-valuable-investments.aspx#Comments0http://www.reincanada.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=71&ModuleID=401&ArticleID=30http://www.reincanada.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=30&PortalID=0&TabID=71http://www.reincanada.com/rein-research-reports/articletype/articleview/articleid/30/city-homes-valuable-investments.aspx City homes valuable investments April 15, 2004 Mark McNeil Hamilton Spectator Hamilton is one of the best places in Ontario to invest in real estate. A new study by the Calgary-based Real Estate Investment Network ranks the city fourth among 59 communities across the province. And the Conference Board of Canada yesterday said the Hamilton area economy was one of the strongest performing in Canada last year. The Hamilton Census Metropolitan Area (CMA), that includes Grimsby and Hamilton, saw a 3.5-per-cent increase in gross domestic product (GDP, the value of goods and services produced in an area) in 2003, and the city was third of 18 cities surveyed behind Oshawa (8.9 per cent) and Kitchener (5.5 per cent). The board’s Metropolitan Outlook Survey said: “Hamilton’s economy got back on track in 2003. The city’s largest and most important industry – manufacturing – enjoyed a banner year, while construction activity was also hot.” The REIN group, which monitors real estate investment trends, rated Barrie and Orillia first, with Kitchener, Waterloo and Cambridge sharing second place. Brampton and Orangeville were third, ahead of Hamilton, which held fourth place by itself. Ottawa ended up in 9th place and Toronto, 10th. The study, released yesterday, ranked the communities according to their expected return on investment in residential real estate. Data from various sources – such as Canada Mortgage and Housing Corp. and field interviews – was plugged into a computer program which produced the ranking. The report, called The Top 10 Ontario Towns to Invest In, said Hamilton’s economy is “strengthening which will inevitably lead to increased housing prices and rental rates.” Relatively low unemployment, high immigration and low rental supply are driving a high demand for rental housing. REIN President Don Campbell said the computer program is designed to identify when communities are reaching a plateau with real estate values and rent prices. “It tells us when the local market is about to take a breath. In Hamilton, you are nowhere near that yet.” The report is produced for REIN members to help them decide which communities they should be investing in. The conference board tempered its Hamilton enthusiasm by cautioning that manufacturing sector woes and declines in construction are slowing gross domestic product (GDP) growth this year. Growth is expected to slip to 2.3 per cent (to be ranked 15th of 18) in 2004 and then to rebound in 2005 to 3.9 per cent (7th of 18). Generally, GDP growth of 3 per cent or higher is seen as a healthy sign for an economy. GDP is the estimated value of goods and services produced within an economy. By comparing one year to another, economists determine whether the economy is growing or shrinking. That’s an indicator of prosperity. McMaster University economist Mike Veall says the board’s prediction of a slowing economy for this year appears to be coming true. He noted Statistics Canada’s monthly job survey found the Hamilton area lost 10,000 jobs over the last two months, which is typical for an economy that is slowing down. The board said Dofasco Inc. had a “lot to do with the big turn-around, reporting record shipments for 2003. Conditions are expected to improve this year, thanks to strong industrial demand for steel. But Hamilton’s manufacturing sector will struggle nonetheless with the bankruptcy filing of Stelco Inc. – another one of Hamilton’s largest employers.” Hamilton had a “wave of non-residential investment” last year that expanded construction output by 9 per cent. But most of the major projects have been completed. There are not many new ones to fill the void. Housing starts declined by 12.4 per cent in 2003 and are expected to fall by another 6 per cent. The report also noted the city’s loss of the 2010 Commonwealth Games to New Delhi, India, was a setback to the local economy. On a positive note, the report noted, the service sector is expected to strengthen in 2004. “The non-commercial services sector will lead the charge . . . thanks in part to the boost it received from the double cohort of students who entered McMaster University and Mohawk College last September.” The REIN report said the average single-family house in Hamilton increased to $197,887 in 2003 from $183,769 the year before – a 7 per cent increase. The average rent last year was $778 per month compared to $765 in 2002. Hamilton’s vacancy rate is 1.6 percent, one of the lowest in the province. Shawn Murray, the president of the Realtors Association of Hamilton-Burlington, said: “We’re an attractive investment in Hamilton. You certainly can buy more for your money here . . . If you bought something three or four years ago, certainly in the last four years it has gone up dramatically in value.” hostThu, 15 Apr 2004 19:11:00 GMTf1397696-738c-4295-afcd-943feb885714:30http://www.reincanada.com/rein-research-reports/articletype/articleview/articleid/37/real-estate-figures-nothing-to-flip.aspx#Comments0http://www.reincanada.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=71&ModuleID=401&ArticleID=37http://www.reincanada.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=37&PortalID=0&TabID=71http://www.reincanada.com/rein-research-reports/articletype/articleview/articleid/37/real-estate-figures-nothing-to-flip.aspx Real estate figures nothing to flip over April 15, 2004 By Derek Abma Ottawa Sun Despite a rapid run-up in house prices in the past three years, Ottawa is ranked only the ninth-best place in Ontario to invest in residential real estate, an investor's group says. The Real Estate Investment Network (REIN), a club of about 1,000 real estate investors across the country, puts Ottawa one spot ahead of Toronto's Junction district and just behind Oshawa in terms of places in the province that can provide the best return on investment on residential properties. The organization said 59 areas were measured. REIN president Don Campbell said the organization consults with economists and realtors in the cities it looks at to arrive at its conclusions. "We look for towns that have a future, not a past," he said. "A lot of people like to buy on reputation. We don't." He said one of the best things about the Ottawa market is its high income levels, which increase the amount people are willing to pay for housing. The population base is also well-educated, thanks in part to post-secondary institutions based here. The district consisting of Barrie and Orillia was ranked as the best place in Ontario to buy real estate. hostWed, 07 Apr 2004 19:30:00 GMTf1397696-738c-4295-afcd-943feb885714:37http://www.reincanada.com/rein-research-reports/articletype/articleview/articleid/29/cost-effective-ways-to-ensure-the-sale.aspx#Comments0http://www.reincanada.com/DesktopModules/DnnForge%20-%20NewsArticles/RssComments.aspx?TabID=71&ModuleID=401&ArticleID=29http://www.reincanada.com/DesktopModules/DnnForge%20-%20NewsArticles/Tracking/Trackback.aspx?ArticleID=29&PortalID=0&TabID=71http://www.reincanada.com/rein-research-reports/articletype/articleview/articleid/29/cost-effective-ways-to-ensure-the-sale.aspx Cost Effective Ways to Ensure the Sale March 14, 2004 Edmonton Sun Wednesday, August 27, 2008 Whether you’re sprucing up your own home for    resale, or upgrading a rental property, there are tried-and-true methods of generating the most from your redecorating and renovating investment, says expert Don R. Campbell. Campbell is President of the Real Estate Investment Network (REIN), a national organization that teaches the latest strategies and trends in residential real estate investment in structured monthly workshops. At a recent REIN workshop focusing on enhancing the value of existing real estate investments, Campbell offered cost-effective advice for every room of a home. Let’s start with the bathroom. If you have a bathtub, toilet and/or sink in one of those pink, green or blue hues that were popular in the ‘60s, ditch them. Yes, there are a few potential buyers or renters who like the retro look. But if you want the home to have widespread appeal, install modern white tubs, toilets and sinks. While still in the bathroom, replace your out-dated brass-coloured or chrome towel racks with modern pewter-like versions. And replace your old ceramic tiles with a one-piece “surround” system. It’s easy to install (sometimes right on top of the old tile), looks up-to-date, and is much less prone to mould and mildew. Campbell has similar advice for kitchens. Replace the harvest gold or green appliances with white ones, replace out-dated brass/chrome handles, and install modern countertops (black or beige patterns are popular). Also replace your 70s-style dark-wood cupboards, but do it the inexpensive way by simply painting them in hard white enamel. As for the living room, bedrooms and hallways, use taupe paint on most walls, and white on baseboards, trim, doors and casings. “Beige and white sound bland, but they provide a classic look that most buyers and renters find very appealing,” Campbell says. Replace the old brass-coloured doorknobs and light fixtures with modern pewter-like ones, and then turn your attention to floor coverings – getting rid of shag and multi-textured carpets, and gold, green, red or other unsightly linoleum. “One test for floor coverings is to ask yourself: ‘Would I want my kids or grandkids to play on this?’ If not, get rid of it,” says Campbell, who has invested in more than 200 residential properties in the past 20 years, and who has also learned from the renovation experiences of longtime REIN™ members Arlen Dahlin and Michael Millenaar. Many owners remodel the basement to make a home more attractive. But don’t bother unless it can be done for a few hundred dollars, Campbell says. “Most potential buyers or renters don’t care about the basement. It will never be a deal-maker or deal-breaker.” Other decorating and renovating tips include: On the inside, installing white electrical switches and plug-ins (no unsightly yellow ones), and low-maintenance single-lever taps in the kitchen and bathrooms; On the outside (for maximum curb appeal), installing half-moon doors, new porch lights, and a new mailbox and house numbers. Why bother fixing up your place when you can probably sell or rent it just the way it is? “Because the money you invest in these relatively low-cost upgrades will more than pay for themselves in what you can ask from buyers or renters,” Campbell says. “These little touches will set your home far apart from others that haven’t been improved in years.” As proof, Campbell offers before-and-after photos, and before-and-after real estate assessments. The photos depict dramatic improvements in various homes’ interiors and exteriors. The assessments show equally dramatic improvements in property values. A $6,000 redecorating and renovation job on a northwest Edmonton home added $16,500 to its assessment value, and enabled the owner to increase the rent by $2,400 a year. A similar $4,800 investment in another Edmonton home added $$15,500 to its assessment value, and $3,540 to its annual rental income. “I’m not talking about doing things cheap and gouging your tenants,” Campbell warns. “I’m talking about cost-effectively upgrading your property so you truly add value – value for which your buyers or tenants will gladly pay. It pays for itself very quickly!” hostSun, 14 Mar 2004 19:09:00 GMTf1397696-738c-4295-afcd-943feb885714:29