I believe many Ottawa home buyers over the upcoming 5-10 years will be looking for homes with in-law suites. We have an aging population and buyers are looking for new ways to share the large mortgage payments. I just assisted some clients with their rural Stittsville purchase and I thought I would share our experience.
The first thing to know is that it is hard to find this style of housing, especially with the in-law suite in a non-basement situation. My clients and I searched quite a bit in Kanata/ Stittsville area for this in-law suite option but came up empty-handed. Since nothing came available we considered a new build. By going in this direction my clients would have the opportunity to get exactly what they wanted.
CUSTOM IN LAW SUITE
To purchase new you must do your research. We worked with a local custom home builder that has a good reputation. My clients had them build a beautiful bungalow with a 1000 square foot in-law suite. It is really more like a small bungalow attached to a larger one. It really is quite unique and that’s what is so great about custom building, you can get exactly what you want. The curb appeal turned out awesome. In the picture, you can see the in-law suite on the far right-hand side.
What is really unique about this home is there are two separate entrances and no shared walls. Both homes were so well finished and turned out amazing. I got to take a tour of them once it was all finished. I think if you are considering going this route you should think about going new.
To get to this point there is a lot to consider:
1) Research potential custom home builders/ Get feedback from current and past clients
2) Interview 3-4 builders
3) Confirm Tarion warranty status and see if there are any claims against them
4) Find a lot (carefully review restrictive covenants of lot)
5) Have multiple meetings to make sure you and the builder on the same page
As a Realtor, I am very much involved in this process from start to finish. Should you want more information about this option let me know.
We are excited to be hosting our 3rd annual Santa Party!
We will have a professional photographer on hand and a very special guest (kids will be excited). A nice alternative to meet Santa without all the long lines at the mall. There will also be presents for the kids, face painting, crafts, and refreshments will be served.
Please let us know if you will be joining us for this wonderful holiday event. Please RSVP by November 20th by sending us an email. Likely this event will fill up fast. Reserve your spot. We look forward to hearing from you!
The Ottawa housing market results are in and the numbers for the average sale prices are up again month over month. Our average price for a residential-class property was up 8.6% over last October, sitting at $425,256. The condos are up 6.9% sitting at $269,604.
Units sold cooled a little in the condo market last month as for the first time in awhile they dropped well below the double-digit mark. 261 Condo units were sold last month compared to 255 in October 2016.
All in all, this has been another very active month for Ottawa real estate Look at the increases in the home prices. Really surprising to see such big numbers over last year. Nobody predicted this. There is some concern that the new mortgage rules will cool that early in 2018. I am not so sure it will have a big impact on Ottawa. For the most part Ottawa, home buyers are more conservative than say Vancouver or Toronto buyers when it comes to how much of their income they put towards real estate. Buyers will end up affording about 20% less in purchase price with the new rules. It will force people to stay within their comfort zone in terms of what they purchase. Might slow things slightly short term but in the long run, it will ensure that we continue to have a healthy balanced real estate market in Ottawa.
One of my favourite games growing up was Monopoly. I always enjoyed building my empire on the board and watching my older brothers squirm as they landed on my hotels. Early in each game, I was always broke with no money because I was buying up the property on the board. Others would try to build up cash reserves. Interestingly this strategy of going broke but having “investment properties” Â on the board always seemed to work. I think it is quite possible that the same can be said in real life. It is time for some people to start playing the real world game of Monopoly.
I have had the opportunity to work with some very wealthy individuals in my dealings. One thing they all seem to have in common is that they all own investment properties in Ottawa and other cities. They own them for the long-haul too. They keep them till they are paid and they can enjoy the cash flow. I did some research to find out how much high net worth people have tied up in real estate. The number is 18% of their net worth is investment real estate. These are people with over 5 million in net worth.
The best time to start is now. When you break down the concept it is surprising, not more people do it. Put down 20% of purchase price, have someone pay off the mortgage over next 25 years, enjoy the appreciation of the asset, have asset completely free and clear in the end with cash flow. Of course, there is risk and expenses and time like everything else. But it is worth it. Over the past 5 years of being a landlord on two properties, I have had to make one emergency call to a plumber. It is not that hard if you get the right property and tenants. Not many real estate markets in the world are better than Ottawa to start.
Anyways, if you want to learn more about building your portfolio I have a great book I would be happy to share with you. It is called the Millionaire real estate investor.
In Ottawa, we get hot summers and the popularity of pools has skyrocketed in the last 10 years.
Kids love them and it is a great place to cool off. However, not everyone wants a pool. If you are selling your home with a pool you can likely get a premium from most buyers, however, some will see it as a hindrance. Like most things, there is always an option. A client of mine just got rid of their pool and I thought I would share with you some photos on how they did it. The cost was just over 6k to do. Lots of work.
The Ottawa housing market results are in and the numbers for the average sale prices are up again month over month. Our average price for a residential-class property was up 8.2% over last September, sitting at $416,464. The condos are up 3.9% sitting at $261,548.
The Ottawa condo market was busy again. Units sold are still in the double digits compared to last year at this time. 311 Condo units were sold last month compared to 269 in September 2016. The major strength in the condo market is still the number of units being sold.
This fall season continues to be very active for Ottawa buyers and sellers. There has been a slight slow down in units sold -1.6% for the residential-class. That coupled with the fact that demand is strong as let to a very active real estate market here in Ottawa. If you are curious to know whats happening in your neighbourhood please feel free to get in touch.
Earlier this week we were featured in the Ottawa Citizen. Check out the article here:Â Ottawa Citizen ArticleÂ
There have been some recent cases of buyers defaulting on their home purchases long after all the conditions have been met. This is still extremely rare in Ottawa but lawyers are seeing more of it.
This can be attributed to the markets in some major cities cooling off in-between when a buyer bought and when they close on the property. Basically, they buy in the hot early Spring market and by the time they are supposed to close on the property in August they paid well over market value by the time their closing date comes around a few months later. If this happens what can you do?
DEPOSIT: Buyers would surely lose their deposit. However, these funds are held in a trust account and cannot be released without an agreement between buyer and seller or a court order. Almost always the buyer will lose this deposit should they decide not to close. The challenge in Ottawa is that the deposits have been historically low compared with other cities.
LEGAL OBLIGATION: First off, this is one of the reasons I (and my assistant) are such sticklers for paperwork. We don’t want to give the buyer any chance to get out of the deal on small technicalities. We make sure all aspects of the legal requirements of any offer are met. Buyers do have a legal obligation to close on the property.
LEGAL COUNSEL: Should you find yourself in this precarious position my advice is to seek legal advice immediately. In some cases the lawyers can figure out a settlement that works for all parties and the house is put back on the market. If this is not the case then you would put the house back on the market after the buyers breach the agreement and you pursue damages in court.
LIKELY OUTCOME: There has been some precedent setting cases in Canada that a judge would rely on in their decision. Based on these cases it would be reasonable to assume the judge would rule in favour of the seller. A likely compensation being some of the extra moving costs, carrying costs, legal fees, and also potentially the difference in sale price if the seller received less money when they went back to the market. Quick example for you. In one case a buyer walked away from a 1.26 M purchase in Vancouver. The seller later sold to another buyer for $350,000 less. The judged ruled the original buyer who walked from their deal would be responsible to make up the difference. In short, it will cost the buyer if they walk away from their contractual obligations.
The Fall season is almost upon us. The kids are getting settled into school and everyone is getting back into a routine. Our little man Aiden just had his first day of school. It was pretty hard seeing him board his school bus for the first time! Kids grow up quick.
The Ottawa housing market results are in and the numbers for August are very positive. Our average price for a residential class property was up 7.6% over last August. We are sitting at $420,355. We are up over 7% YTD. Incredible numbers really considering most economists predicted the opposite.
The Ottawa condo market was busy. The prices were down slightly by less than half a percent. The average price of an Ottawa condo was $270,768. Where I see strength is in the units sold. We are up 22% over last years numbers. This has really been a nice turnaround for condos this year.
This fall season will continue to be very active for Ottawa buyers and sellers. There are still many buyers in the marketplace who were unable to secure their home in the Spring/Summer due to increased competition and tight supply. I expect this trend to continue for at least the next 90 days. If you have any questions on the market please let me know.
I hope everyone is having a great summer so far. Our local housing market continues to impress. In July the market was once again well ahead of where we were this time last year. Let’s look at the numbers.
These are the average numbers. There are some areas that are experiencing double digit increases over the same period last year. Anything West of downtown to Carlingwood would be in this category. Buyers want to be central and are willing to pay a hefty price to get there. Take Westboro/Carlingwood areas as an example. The average price here for a single is $758,000 that is up 11.5% from a year earlier.
Another reason for the strength in our market is that condo market is making a comeback. Much of the inventory that has been stale the last few years is being sold off. This has really helped to strengthen the market as a whole. Many condo owners (myself included) have rented their condos in the past few years waiting for better selling conditions. The time might be right to list for those condo investors. The condo market sold 332 units in July 2017 which is an increase or 19.4% compared to last years July.
Inventory continues to be an issue in some locations-especially in the central areas. The amount of new listings coming to market is lower than the 5-year average. Buyers are still patiently waiting for properties to come available. We are seeing a more active summer because many buyers were unable to secure their home in the Spring.
Interest Ratescould be a factor moving forward. As our economy strengthens it is natural that our key interest rate will rise. After many years of steady rates, we have finally seen a rise in the Bank of Canada rate. It recently increased by a 1/4 of a percent. Lenders have since followed suit. This will add about $12 more per month on average for every 100k of a mortgage. It will affect affordability but not enough to cool the Ottawa housing market. Something to keep our eye on. Ottawa is such a spread out city. There are different market trends happening in each micro market of the city. If you are curious to whats happening your neighbourhood let me know. I would be happy to provide you with a list of Ottawa homes that have recently sold around you.
The real estate market in Ottawa is often a very competitive place to purchase real estate. When a house is listed that shows well and is priced aggressively it will often attract more than one buyer. This creates a multiple bid situation. I have been in this situation too many times to count. Twice in the last week! In many of the cases, my clients are the ones who end up securing the house. I want to share with you a few tips that help make this happen.
Firstly, I think getting the right Realtor® working for you will be the most important step. Someone who can be a guide through this complicated process. A thorough review of the market is also very important. Often times multiple bids are created because a house is under-valued as compared with other listings that have sold in the area. This means that even though a buyer might pay more than list price for a home they are not necessarily paying over market value.
Price is often the most important factor in an offer, but not always. For most people, there is a human element in selling their house. I like to present my offers directly to the seller in multiple bids. Basically, tell them how wonderful my clients are-which is usually true! I have had sellers more than once choose my clients’ offer that was less money. One time over $3000 less!
Conditions also play a factor. Having too many conditions or long timelines can make an offer less attractive. In some cases, If the house is perfect then I suggest a pre-offer inspection. This way we can put forward a firm offer when the bid time comes. This will strengthen the offer considerably.
Multiple bids will always be a part of the home buying process. You might win some or lose some. Just remember things always have a way of working out in the end. If it is meant to be it will be!
