As an owner of Ottawa investment properties, the upcoming legalization of marijuana is another element that needs to be considered when finding tenants. When this law is passed it would grant the right for individuals to grow up to four plants in their home. I certainly don’t want them growing those plants in my investment properties. It can pose health risks from the potential growth of mould, fire risk, and the significant damage due to high humidity requires. Most importantly your property value could plummet if the house was deemed to be a “grow op” This is not a label you want. Also, smoking marijuana can be worse than cigarette smell in terms of getting rid of the bad odours.
It remains for the courts to determine if a tenant’s right to smoke marijuana for medicinal purposes is greater than a neighbour’s right to not smell it, and a landlord’s right not to have it happen in their property. Especially since there are alternative forms of medicinal marijuana including pills, capsules and oil. I am sure there will be lots of upcoming cases that examine this complicated legal question. Something to watch for.
So how can you protect yourself?
Having strong clauses in your lease agreement is important. Here is one example:
Smoking, which includes tobacco and marijuana, any electronic versions and anything smoked for medicinal, recreational or remedial purposes, and growing plants of any type or quantity which includes marijuana, cannabis and hydroponics, are not permitted to be grown or cultivated anywhere in or on the premises, including common areas and the tenant’s rented unit.
I also am a big believer that the due diligence process is an important step. To be honest, if I suspect they are smokers I will not rent it to them. Even if they say they would never smoke in the house. I just don’t take the chance. Besides the credit checks, I will ask previous landlords if they were smokers and I often try to find pictures of them through facebook etc to get a sense of who they are. Might sound excessive but once your tenants are in they are hard to get out! For the record there is nothing wrong with smoking weed, I just don’t want people to smoke or grow it in my investment properties.
I think everyone should have at least one real estate investment. Something brick and mortar in their portfolio. I have learned that many of the high net worth people I have met include real estate as an integral component.
I am a big believer in Ottawa real estate. I truly believe that in 25 years from now people will be reflecting back on 2018 and saying “We should have bought a few investment properties, they were so cheap back then!”. Much like if we look back and see that a house in Ottawa 25 years ago was only $150,000.
Ottawa is a growing city with awesome economic fundamentals and lots of future growth. Our city ranked number 2 in Canada as the best places to live in the country. It was number 1 last year.
I hope people who live here understand just how amazing Ottawa is for the quality of life. We are so fortunate to live here. It can be easy to take it for granted. It also means there are some great real estate investment opportunities here. Especially as Ottawa grows with light rail and other major projects like Lebreton Flats.
As investors outside of Ottawa look for new opportunities many are turning to Ottawa. I am seeing lots of investors in our market especially in the $300k-$400k price range. Many from Toronto and overseas. Unfortunately, these investors might eventually spoil it for the rest of us. The timing is now. Prices are still reasonable and the vacancy rate is the lowest it has ever been. There are multiple bids in the rental market!
If you are thinking of investing in real estate, please feel free to reach out. Always happy to help!
It was another robust month of sales in Ottawa real estate. Over 1600 properties changed hands. That is a big number considering the 5-year trend is at about an average of 1500 units sold in July. Sales are up 6% compared to last year same time. Residential prices are up 5% over July of last year in both the condo and residential property markets. Nice gains for Ottawa homeowners for sure. Here is look at the numbers:
The 300k to 450k price range in residential properties accounted for 45% of all sales. This is a very active price range right now for Ottawa real estate. So hot right now! The condo market has made a great comeback and there are lots of factors to remain bullish on our local economy. It is a complex real estate market right now. Lots of moving parts on almost every deal. Including new financing requirements, shorter conditional periods, foreign buyers, and multiple offers. Lots to navigate right now. It is more important now to have the expertise of a great Realtor if you plan on buying or selling real estate in Ottawa.
If you are curious to know what’s happening in your neighbourhood please feel free to get in touch.
The Ottawa real estate market continues to impress. We are certainly the leader in Canada right now in terms of market activity.
Let’s look at the numbers. Our average price for a residential-class property was up 3.4% over last June, sitting at $449,200. In the residential-class property segment, there were 1,615 units sold which is a decrease of 8% over last June. In the condo market, 455 units sold, which is an increase of 11.5% from last June. The condo prices in Ottawa increased by 1.2% with the average sale price at $293,303.
The increase in condo unit sales is due to the lack of inventory in the residential-class property segment. The increasing prices have also pushed Ottawa buyers towards more affordable condo options. In previous years we had an oversupply of condos in Ottawa but they are now helping with the overall shortage of the residential-class properties. The average consecutive days on market for condos is down 39.4%.
There are still lots of bidding wars happening in the Ottawa market but it seems to be a little bit less competitive in the suburban neighbourhoods when compared with say 2-3 months ago. Inventory is still tight but there are signs that the market is settling down a bit. This will be welcome news to some buyers. If you are curious to know whats happening in your area please feel free to get in touch.
I was having this discussion with a client last week. We were talking about what I think the future might hold for Ottawa real estate. Ottawa is a very spread out city and commuting is becoming more challenging every year. This has made areas close to the city core especially desirable for home buyers. This, however, could change if your commute was in a self-driving car. This technology that will be upon us before we know it. You are already seeing this technology on the roads in some places. How will this impact the real estate market? I think buyers will be ok living further from work if their car will whisk them away to the office while they read a book or catch up on some emails. Commuting may be the most enjoyable part of their day. Imagine reading the newspaper with a cup of coffee as you drive-in. Further, what if your car dropped you off at work and then become a ride-sharing car or uber and made some money for you while at the office. These ideas might sound far-fetched but I can tell you this might become reality sooner than we all think. The future is both exciting and a bit scary at the same time.
Housing inventory has been a concern this year and is so far not keeping up with the insatiable demand for Ottawa real estate. Our inventory is at historically low levels. Especially in the central locations. This will continue to put upward pressure on prices. In May I witnessed a few houses sell for way over their already high list prices in extremely competitive offer situations. Both were staged impeccably but were very small inside. Some buyers are getting desperate and will pay a huge premium for the right location.
Let’s look at the numbers. Our average price for a residential-class property was up 6.3% over last May, sitting at $464,401. In the residential-class property segment, there were 1,794 units sold which is a decrease of 3% over last May. In the condo market, 485 units sold…. which is an increase of 9.2% from last May. The condo prices in Ottawa increased by 3.4% with the average sale price at $281,247.
As prices rise up in this market it is so important to have the right representation. On the buying side, you need to make sure that you are making a prudent investment. For sellers, you want to make sure you are taking advantage of the hot conditions.
Everyone knows that Toronto prices are crazy but it is always hard to put it in context in terms of what something similar here in Ottawa would sell for. I decided to dig a bit deeper and figure this out. I wanted to find something in a similar suburban-style community in each city. The easiest way to accomplish this was to find something built by the same builder, in this case, Mattamy Homes.
I used the suburban communities of Milton in the GTA and Stittsville in Ottawa.
VERDICT: The price gap between these properties was even more than what I was expecting. I really think that if a buyer in Toronto is willing to pay those prices right now it is only a matter of time before Ottawa gets to that level. I have said it for years and I believe now people are starting to realize that Ottawa is a very undervalued real estate market. Just this week we were named the #7 city in the world for quality of life. Number 1 in North America (Wellington NZ was #1 in the world). If you want some assistance with your real estate needs our team is always happy to help!
Ottawa is now the hottest real estate market in Canada! Move over Toronto and Vancouver. The market strongly favours sellers in most neighbourhoods. It is a good time to be a seller! Inventory has been tight most of the year. This past week I have seen a glimpse of hope as we are starting to get some new listings in the suburban neighbourhoods. Hope this will help balance the market a little. It is a challenging for buyers right now (and buyer agents).
Let’s look at the numbers. The market statistics for April are in. Our average price for a residential-class property was up 4.2% over last April, sitting at $455,212. In the residential-class property segment, there were 1,616 units sold which is an increase of 9.5% over last April. In the condo market, 416 units sold…. which is an increase of 33.3% from last April. The condo prices in Ottawa increased by 0.3% with the average sale price at $269,294.
We are launching a new client appreciation initiative that compliments our mission. We are committed to bringing value to our clients long after they have fulfilled their real estate needs. We will be stockpiling items of utility that the average homeowner might use only once a year. If you don’t want to purchase the item you are welcome to borrow it from our team. We will be adding to this list quite a bit over the upcoming months and years ahead. Check out the video to learn more.
Keller Williams often describes itself as a training and consulting company, thinly disguised as a real estate brokerage. We’re always bringing expert educators and speakers to keep our training current, and our knowledge of where Ottawa is headed as a city, as up-to-date as possible. I recently had a chance to attend a superb information session, hosted by Damon Berlin from the City of Ottawa, about the ongoing- and future goals and plans for- Ottawa’s move to Light Rail Transit (LRT).
Damon’s job is to help explain what the Light Rail Project is all about, how it will work, and what to expect from Stage 1 when it is completed (the plan is to have trains running sometime in November). He also talks to the upcoming Stage 2 project that will take the City’s long-term vision even further towards the goal of 95% of all Ottawa’s within 5kms of public transit, upon completion in 2023. Damon did a fabulous job of pointing out many great features of the City’s equipment, systems, and anticipated outcomes, but there is 1 big takeaway that I got from this presentation that I think is worth highlighting- a broad, but simple concept.
The attitude that the City of Ottawa is bringing to this project is one of inclusion and progressiveness and is the driving force behind many of its decisions. While some may think that Light Rail will merely replace buses with trains, the vision from the City involves an entire culture shift. Aside from enabling riders to travel from Tunney’s Pasture to Blair (the entire length of Stage 1 rail) in under 25 minutes, with trains that carry 11,000 passengers/hour and arrive every 5 minutes or less in peak times, Stage 1 has the potential to remove 110,000 tonnes of Greenhouse Gases (GHGs) from the air every year- not to mention the reduction in noise pollution! Fewer buses on the road also mean a shift in where traffic flows through the city centre and gives the City the opportunity to add flowers, plants, trees, and even benches to the sides of streets to encourage more time spent outdoors. There will even be some streets that will become much more pedestrian friendly, with widened sidewalks and more greenspaces.
Even the architectural designs being used for stations and community areas are not without thought. Pimisi Station, located beneath the new Booth Street Bridge, has been designed to incorporate an Algonquin cultural theme, reflecting both the historical and contemporary cultural significance of the Algonquin people. “Pimisi”, means “eel” in the Algonquin language, and the Algonquin-Anishinabe people and culture play a significant role in the station look, design, and feel. Stations are designed to become spectacular landmarks, and this emulation of a more “European” approach to city planning is intended to catapult Ottawa from a “big small city” to a “small big city” in the eyes of the county, and dare I say, the global community.
What does this mean, if anything, to your real estate investment plans in Ottawa? The important thing to note is that wherever we find new and easier access to public transit, we also find new-found opportunities for growth. Commercial destinations, community centres, restaurants, and parks spring up nearby, as the new concentration of residents requires new and more convenient amenities. This can often mean an appreciation in your property value but could also transform your route home from work into a construction nightmare or take away your previously unobstructed view. Taking some time to explore the City of Ottawa GeoOttawa website, and speaking with a professional Realtor are just 2 great tools you can use to see exactly how close your property may be to the new LRT facilities and lines, where you might be most happy purchasing a new property, and how these changes might affect your current investments. A city is always growing and changing with the times- just remember that like Ottawa, the plans for Stage 2 and other future Light Rail endeavours are still under development, and any proposed hubs or activity centres are just that. The new LRT system is innovative technology and thinking, and it gives each individual community a chance to do something different and to grow along with it. Like most things related to real estate, this project will take some patience and forward thinking if it is to realize it’s potential and further entrench Ottawa as a world-class city in which more and more people choose to invest. We have some great material available if you’d like to get started. All aboard!
