Have you ever considered downsizing in to a condo?

Do you want to downsize and take some equity out of your home, but you can’t seem to find the perfect property that doesn't require any work for under a million dollars? Well maybe you haven't considered condo living yet!

I always say that the condo lifestyle is a luxury.  Imagine that you will never have to pick up a shovel again, and your car is always nice and toasty in the heated underground garage, and depending on the building you may have luxurious amenities such as a heated indoor swimming pool or fitness facilities that you wouldn’t otherwise have in your own home.  Some buildings have full-time concierge and security, which often translates to full-time Amazon package receivers, for all your online shopping needs.  

And speaking of security, wouldn’t it be fabulous to simply lock your door and take off for your next vacation and not have to worry about anything?

You should consider ditching that unused space that you can never seem to keep clean, and move in to the right sized condo.  Visit our website or give us a call, and explore the freedom of condo living!

February 2018 Toronto Market Update

What's going on in Toronto's Real Estate Market this month? 

Condos are up in value. Detached prices are down. Less is being sold.  What’s really happening?  Watch to find out more! 

Maybe you’re in that perfect situation of having a condo to sale and ready to move up to a house.  

Buying VS Renting in the Toronto real estate market

We know that coming up with the downpayment for a property is tough, especially with the average price of a detached home in Toronto being $1,250,235 ($532,700 for a condo) and the new lending rules. However, here are some reasons why we think it makes sense to buy vs rent.

Toronto Real Estate Market Update - December 2017

Here are 8 key indicators I use to check on the health of the Toronto real estate market!
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Transcript:

Hi it's Kenneth Yim from Keller Williams Realty.  I know you get a lot of mixed headlines with what's happening in the Toronto real estate market, so I'm here to give you eight key indicators as to what's actually happening. Check it out!

So I have to tell you, this is only for 416.  If you need the numbers for 905, please feel free to give me a call.  

Okay, I know the number you are all curious about is the average price.  So here's everything since 1996, and as you can see, if you draw a regression line, you can see that we're slightly above average, but you know Toronto has been growing at a rapid pace and you know it's a wonderful place to be. We're still cheap compared to the rest of the world.

Here's actually what's happening, year over year. Now we'll zoom in a little bit, we'll see the five year average. And you can see it follows two little humps. So here we are. We're just about to finish the fall market, getting in to the winter months. Many of you ask, "when's the best time to sell"? Well, it's either spring or fall, that's the highest average price, and the lowest price is typically the summer when everyone is on vacation, and the winters when the holiday season hits.

So really, it's up to you.  I mean the average price is the highest in the spring and the fall, but as you will see in the next slide, you will have the most competition.  Similarly, if you are looking to buy at the lowest price point, you might not have a lot of options in the winter and the summer.

So let's get in to the next slide.  The number of units sold.  This shows the volume of activity, and again it follows two major humps, you'll see in the spring and in the fall you'll have the highest activity, and in the summer and the winter, everyone is on vacation and holidays, and there's less units sold.  So here we are now, and as you can see there's going to be a lot less activity in the coming months, but then again the average price goes a little bit lower.  So it might be an opportunity for buyers.

Now the third key indicator is the number of new listings in the market. As you can see, we have a lot more new listings on the market.  But it does follow the typical curve that we've seen before.

The fourth thing, let's match them up. So the ratio you see here is basically the amount of units sold compared to the number of new listings that come on to the market.  Right now we're just around 60% of [units sold] to new listings.  So if you look at the trend line, we're seeing slightly less sales, but overall the market is pretty healthy.

The number of active listings.  So that's what's currently listed in the market and hasn't been sold yet.  We'll see the trend line is moving a little bit up. In the beginning part of the year, you can see it's been pretty low, so things have been selling, fast, as you know.

Now if you take these numbers together, I think this is the most powerful slide, the months of inventory.  So basically, that means if nothing new were to come on to the market, how many months would it take to sell whatever we have active on the market?  So we take the number of active listings, divide that the number of sales every month.  So as you can see right now, the months of inventory is about 1.8 months.  So if nothing new were to come on the market, it would take about 1.8 months to sell everything that we have on the market.  It's actually not that bad.  Compare this to 2008 when we had the big tech bust, and when the U.S. economy collapsed.  So at the peak of the crash, we had almost 8 months of inventory. As you know, that blip didn't last long. Overall, we're still pretty healthy.

The days on market, tells us on average, how long it takes to sell a home in today's market.  And as you can see, the numbers are trending downwards. Although we're a little bit above the average line, it's still going down. We're looking right now of an average of about 21 days to sell your home in today's market.  And again, it follows the same seasonality curve. The spring and the fall is the hottest market, and the summer and the winter it's a little bit slower because people are on vacation. In this spring in 2017, you saw a crazy boom, everything was selling really fast.

So this last slide, the sold to ask ratio, will tell you if the market is typically trending to have bidding wars or not.  So if you're asking for $100.00, right now you're going to get $99.30.  In the early part of the year, it was actually approaching 112%! That's crazy! So right now we're a little bit under, I think it's a great time to get in, people are getting under what they're asking.  If you're looking to sell, well, maybe now is the perfect time to trade up. 

So as you can see, we're not going to head to a crash any time soon.  But we have less than a month before the government implements their new mortgage qualification rules. If you need to know how that's going to affect you, please give me a call.

Don't forget to subscribe to our YouTube channel, or give us a call and we'll give you a one-on-one market update with that's going to affect you.  Thanks for watching!

Five Minutes with Marlon Yee and Kenneth Yim

FIVE MINUTES WITH MARLON YEE
November 2017

Join us as we talk shop about Toronto real estate and some of our our investment success stories, and how you can get started if you have no money down.


Marlon Yee Capital Lending Centre.png

Marlon Yee

 

Call me at 647.299.8252 or email me at marlon@capitallendingcentre.com to get all your options!

Social Media:
Facebook: Marlon Mortgages
Instagram: @marlong_mortgage

300-801 Yorkmills Rd. Toronto ON

There are 7 Ways to Make Money In Real Estate

Join us as Ken takes us through the seven ways to make money in real estate.  For more blog posts, click here.


Transcript:

Hey guys, it's Kenneth Yim from Keller Williams Realty here, with another real investing video. This time I want to tell you about seven different ways you can make money in real estate.

All this information comes from Gary Keller's Millionaire Real Estate Investor book. Really really good stuff.

So first things first, it's called "finding and referring". Okay? So that means if you find a property either on or off market, and you introduce it to an investor in to it, often times they'd be willing to pay you a finder's fee. Now, as you can imagine, the fee probably won't be that high, but at least it's a little bit of something and you didn't have to put any cash out.  So that's a good way to do it. So always be looking on the market.

Number 2 would be "controlling and assigning".  Oops, let me get it in focus there.  Controlling and assigning.  Now these are a little bit difficult to come across, I mean really you're flipping the paper and not the actual property, andI caution you because for tax purposes you'd be paying business tax, not capital gains tax. Talk to your accountant about that, but you know, it's a great way to make some money with minimal down.  So, all you do is put some money down towards securing the property, getting it in to contract, putting maybe a long close, and then finding another buyer that would be willing to pay more than what you paid for it.  Not a bad option.  I've done that once before and it was pretty awesome... actually a few times. It was awesome.

Another one, "buy and sell".  Ok so you buy the property, then right away you close on it and then you can flip it out for a little more money as well too. Now again, it's a little bit difficult to make money on that especially with the all the high closing costs, like land transfer taxes, and selling costs, lawyer fees, and all that.  So there would have to be a lot of value in there to make it. 

Again, another one to do is "buy, improve, and sell", commonly known as the "fix and flip".  I'm doing one of these myself, it's not a bad way to make money.  You buy it, close on it, fix it, flip it, and try to profit within 6 months, maybe a year.  This is what I would say... these four strategies that we just talked about, "buy, sell, improve", "buy and sell", "control and assign", and also "find and refer" is the best way to get cash quickly.  To build your cash.  

But the real, real, real way to make money is when you grow your equity.  Ok?  So here's another option: it's a little bit creative, it's called the "lease option". Alright? So maybe you potentially you have a property that you already have and you've given it to somebody like a tenant and maybe they're trying to fix their credit (so they can't buy yet), you offer them a lease-to-own scenario.  Anywhere from 2 to 5 years. So they pay you often sometimes it can be a higher than market rent, so you can get some good cashflow there, you're also building equity because you know you're holding the property obviously, and then you sell it to them at a pre-determined price. Now it could be a win-win, depending on the situation, but it's a good way to make some money.  Like yeah... you can get really creative in that. You HAVE to get really creative.

Here's my favourite: "buy and hold".  This is what I'm doing with all my pre-construction condos. The reason why I bought a lot of them and I think it makes it easy for the everyday investor, is because you can take that money out of your equity of your home, let's just say, or savings.  You have staggered deposits, over a two year period.  You'd be paying a certain amount every single payment, maybe $30,000 to $40,000 per payment, until you hit your deposits, your 20% down.  Then after that, you can wait for the building to be built, it would be about 4 to 5 years.  The market typically WILL rise, and then at that point you get your mortgage, and then you kind of just hold on it right?  Put a tenant in there, hold, hold, hold!  Don't ever sell.  Take a line of credit out if you want to. If you're kind of getting lost, just take a look at my last video on how... I'll point that to you next.  Buy and hold I think is my favourite strategy.  It just kind of, you know, five years flies by so fast.  You don't even notice it.

Also the one to create real value is to "buy, improve, and hold".  Right, so same kind of idea.  You buy it, put some money in to renovations, and then you can hold on to it, get a tenant in there, and then maybe improve it some more. This also includes buying a piece of property... a piece of land let's say or even a building, and putting more intensification to it, so more density, creating more floors, maybe getting some re-zoning to do that. Something that's one floor now, and then adding two more floors to it, so that's 3 times the amount of space you have.  That's also amazing too.  So this also can get very creative, and also needs a lot of expertise as well too, but probably is the best way to make money. 

So, there you have it, seven ways to make money in real estate.  If you want to talk a little bit more, give me a shout!

Oh yeah, and if you like what you see, don't forget to click on subscribe or check out our last videos that we just did.  Thank you (for watching)!

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How I'm Building My Wealth Through Real Estate

How I’m building my wealth: walking around the monopoly board locking up properties. The second phase will be trading up to build hotels.

For more blog posts, click here.

Toronto real estate market and the new 15% foreign buyer tax

About two months ago, the Liberal government announced new housing measures that are supposed to cool the market.  It's supposed to aim directly at foreign buyers.  

For more blog posts, click here.


Transcript: