I wanted to share with you a little bit about why you may consider buying an investment property.
 
Why is owning an investment property SO beneficial and what is YOUR reason to?
 
To me, this is the very first piece and the most important piece of the puzzle of why you would buy an investment property.
 
Over the years I’ve heard from many people the reasons why they buy investment properties.
 
Here’s a number of reasons I’ve been told:
 
1.Supplement their income
2.Take advantage of price appreciation as they’ve seen prices keep rising
3.Think that it’s just the right thing to do
4.Believe in housing and helping people who can’t afford to buy
5.Want to the status of being an ‘Investor’
6.Everyone else seems to be buying and making money
7.Lost money in the stock market
8.Put their money into a safe and secure place
 
These are all pretty good reasons to buy an investment property.
 
And…
 
There are deeper reasons underlying the above reasons as to why someone would want to buy an investment property.
 
I’ve found that the underlying reasons why people actually buy an investment property are much deeper.
 
What are those underlying deeper reasons?
 
1.Plan and save for their children’s education
2.To pay off their home’s mortgage to become mortgage free
3.Plan for their retirement and future travel
4.Help their children buy their first home by having an investment property they can gift to their children or leave for them in their will to help them for their futures
 
Even for these reasons there is still another main underlying deeper reason…
 
1.Wealth creation and ultimately: freedom
 
How do the above reasons all come down to freedom?
 
Well, I’ve found the number 1 reason is freedom because people ultimately want to do what they want, when they want, where they want, without whomever they want – to live their life on their terms.
 
Whether that be retiring early, sending their children to private school or the best universities, traveling the world, paying off their mortgage earlier or gifting their children a property or two so that they have a leg-up for their futures.
 
That’s freedom.
 
And real estate investing can help you get there.
 
What’s your reason to invest in real estate?
 
Is freedom your goal?
 
To do what you want, when you want, where you want, with whomever you want?
 
What will you do with your freedom that real estate investing can provide you?
 
Will you help pay for your children’s education?
 
Will you gift them a property to start them off for their futures?
 
Will you pay off your mortgage early?
 
Will you retire early and travel the world?

Feel free to send me an email and let me know what your reason is to invest in real estate and let me know if I can help!

Sohail, FreedomFighter
[email protected]
 

TORONTO, ON - Condo Listings Surge 215% In September 2020!
 
There is a potential downtown condo weakness as condo listings surge 215% in the Downtown Toronto core.
 
The condo market just got flooded with new listings for sale in the month of September.
 
According to the Toronto Regional Real Estate Board and research firm Urbanation Inc., the 215% increase in condo listings is versus a 5.3% increase in total housing listings across the city during the month of September.
 
Across the Toronto region, owners listed 6,480 condos for sale in September, up from 5,599 in August and 3,403 in the same month a year earlier.
 
The total number of condo sales for September 2020 was 2,367; meaning only 36.5% of listed units actually sold.
 
Sales prices for condos is down 1.8% since May even though sales prices for detached homes have surged over the same time period.
 
“Demand is just not keeping up with new supply right now,” said Urbanation President Shaun Hildebrand.
 
Why all the new condo listings?
 
This is because of mainly 5 reasons:
 
1. The pandemic caused jobs to be lost by lower income earners, namely renters/tenants.
 
2. Immigration halted and no new buyers, investors or tenants have been coming into the city.
 
3. New construction condos completed and are vying for the same pool of would be buyers, investors and tenants.
 
4. A shift in buyer trend of buyers wanting to buy further out from the city to get more space to work from home as they don’t have to commute into work.
 
5. Airbnb operators shifted from short-term rentals to longer-term rentals and/or listed their units for sale.
 
“The ratio of sales to new listings for condos in downtown Toronto fell to 24% in September, the lowest level since the early 1990s.” Hildebrand said.
 
There has been a boom in single family home sales.
 
In addition to this, there has been a decline in rents down 11%.
 
On a $2,200/mth rental amount, that same unit is now renting for just under $2,000/mth.
 
Rentals are also taking longer to tenant – 26 days on average versus 14 days a year earlier.
 
Some realtors say it’s not panicked selling, but rather people who have owned units for a long time, who have made a lot of money, and are taking out their profits. 
 
Right now, some investors are dumping their units below market value just to sell immediately.
 
Some owners have been dropping their prices by as much as C$20,000 relative to other similar units to lure buyers.
 
Average condo resale prices remain above year-earlier levels, but analysts believe more declines are coming in the next few months.
 
It’s not all doom-and-gloom and there is hope.
 
Personally, I believe that supply will soften and demand for Downtown Toronto Condos will eventually come back.
 
Why is that, you ask?
 
Because this pandemic will end.
 
The economy will come back and employment will strengthen.
 
Borders will re-open and immigration will return.
 
People will want to live, work and play in the city again.
 
The oversupply will subside and get absorbed.
 
And a bonus reason…
 
According to the Federation of Rental-Housing Providers of Ontario (FRPO): strong demand factors of (pre-pandemic) job growth, immigration, and high homeownership prices combined with lagging rental construction activity will create a shortage of 200,000 units in Ontario’s rental market over the next ten years.
 
A shortage of 200,000 rental units in the next 10 years?
 
Investors rejoice!
 
So rental rates will come back as well! (Sorry renters!)
 
Looking at the fundamentals of real estate economics – supply and demand, we also have to remember some very important things…

• Condos are the most affordable housing options available to buyers in the city.

 

• Incomes have not and do not rise at the rate of property sale price appreciation – this has been shown in the past and this will continue into the future.

 

• First-time buyers and investors alike will always want to buy the lower priced options (condos) as they are the most affordable to purchase which results in the highest demand.

 

• Renters become first-time home buyers and condos are the most affordable options for their first home purchase.

 

• Homeowners that have some savings and equity in their homes that are looking to become investors, can leverage this savings and equity to purchase their first investment – again the most affordable option to invest in in the GTA are condos.

 

• Renters can afford the lowest amounts of rent more easily and these again will likely be condos.

 
So, the demand for condos will indeed come back because they are the most affordable options for first-time homebuyers, investors and renters.
 
It just may take a bit of time.
 
The economy is resilient, employment is resilient, immigration is resilient, people are resilient and… real estate in the GTA is resilient.
 
With mortgage interest rates being at all-time lows, such as 1.6% fixed and 1.6% variable as one of my client’s were able to obtain recently, there may very well be a huge opportunity for first-time homebuyers and investors alike.

GTA June 2020 Market Update
 
Don’t call it a comeback!
 
We’ve been here for… weeks!
 
Do you get the musical reference?
 
It’s from LL Cool J from his song: “Mama Said Knock You Out!” back in 1990!
 
Boy, I’m getting old, that was 30 years ago and I still remember and like the song!
 
So, why is the title of this article: GTA June 2020 Market Update - Don't Call It A Come Back! We've Been Here For Weeks!
 
Because just as I’ve been saying for months since even the beginning of the pandemic in March, the GTA Real Estate Market will bounce back!
 
And right now, we have the data to prove that it absolutely has!
 
So what is the latest data?
 
Showings and appointments are up to pre-COVID levels.
 
Offers are up to almost as high as pre-COVID level.
 
There were 8,701 homes sold in June 2020 that is up a whopping 89% over May 2020!
 
In just one short month, the number of sales went up almost 90%.
 
How does it compare to last year June 2019?
 
June of this year is just shy of the same number of sales last year by only 1.4% less.
 
The number of listings on MLS for June 2020 was still down by 28.8% over June of 2019.
 
What does this mean?
 
It means that, surprise, surprise, we still have a low supply of homes on the market.
 
What does low supply and high demand equal?
 
From my high school Economics and university Management Science Economics classes…
 
Price increase!
 
So what is the average selling price in the GTA?
 
The average sales price for all home types in the GTA for June 2020 is a record $930,869!
 
That’s 11.9% higher than June 2019!
 
Detached homes sale prices increased 14.3% in price and semi-detached increased 22% in price year-over-year!
 
How does this compare to pre-COVID?
 
You may not want to believe this…
 
But, it’s actually HIGHER than before COVID!
 
Wow!
 
So the market, bounced back in just a few short months and we can indeed call it a comeback!
 
You might be wondering, why is this?
 
In a word… Economics!
 
I wonder if anyone is listening to me sometimes!
 
I feel like LL in the photo above holding the microphone and saying: “Is this thing on?”
 
Even with job losses and Canada’s Unemployment Rate being 13.7%, even with government annual deficit and personal debt levels mounting, declining GDP, emergency response benefits spending, even with the fear of the pandemic…
 
Still, we have the lowest interest rates in history, population growth, a housing shortage with low inventory and pent up demand driving the market.
 
The real estate market in the GTA did comeback and will keep coming back in the years to come!
 
“Mama said knock you out!”
 
Nice try, COVID… you can’t knock out GTA real estate. :-)

Seth Godin shares Zoom tips for the modern age.

If you’ve ever joined more than three people on a Skype or Zoom conference call, I hope you’ll appreciate these tips, and perhaps share them:

1. Sit close to the screen. Your face should fill most of it.

2. Use an external microphone or headset. Regardless of how you’re amplified, remember that the microphone is only a foot away, which means you don’t have to strain or raise your voice. Also, consider Krisp if you have background noise issues.

3. When you’re not talking, hit mute. If you’re on mute, press and hold the space bar and you can be heard.

4. Don’t eat during the meeting.

5. When you’re on mute during an audio call, you can do whatever you want. But when you’re on mute on a video call, you need to act like you’re truly engaged. Nod your head. Focus on the screen. Don’t get up and feed your dog.

6. Don’t sit with the window behind you. A little effort on lighting goes a very long way.

7. When you’re talking, spend some time looking at the camera, not the screen. You’ll appear more earnest and honest this way.

8. When you’re talking, go slow. No one is going to steal your slot.

9. Don’t walk if you’re using a phone. And if you’re using a laptop, don’t put it on your lap.

10. Please (!) do not use an animated background. Do not use a funny one either. If we’re noticing your background, you’re doing it wrong.

These are obvious. They are generous. They’re effective.
 
And almost no one puts in the effort to consistently deliver on them. It’s worth it.