5 TIPS FOR BUYING YOUR FIRST INVESTMENT PROPERTY

Performance Property Management

1.Don’t Do It Alone

Make sure you receive professional advice to make sure you aren’t missing the little things that cost the most. Team up with an experienced person or property management team for your first couple of investments to save you stress, time, and money. Learn more about the kind of services a property management company can provide you here: https://performancepropertymanagement.ca/

2. Pay Off Your Debt First

If you have student loans, unpaid medical bills, or your kids will soon be attending college, purchasing a rental property may not be the right move for you at this time.

3. Keep Your Expectations Realistic

Like any investment, a rental property isn’t going to produce a large monthly paycheque for a while and picking the wrong property could be a catastrophic mistake. Consider working with an experienced partner on your first property or rent out your own home to test your landlord abilities.

4. Don’t Buy a Fixer-Upper

It is tempting to buy a property at a great price and flip into rental property, but if this is your first property that is a bad idea. Unless you have a contractor who does quality work on the cheap, you are likely to pay too much to renovate. Instead, look to buy a home that needs mostly minor repairs.

5. Understand the Residential Tenancies Act of Ontario (RTA)

When buying a second property, you become a landlord. You’ll have extra responsibilities and you must become acquainted with the Residential Tenancies Act of Ontario (RTA). While you should hire a property management company to deal with the day-to-day workings of the property, you’ll still need to understand and respect the RTA and updated legislation.

3 Trends to Note in Canada’s Real Estate Market 2018

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With many changes made to Canada’s Real Estate policies in 2017, we are going to see a lot of effects from these changes in 2018.  Here are three trends that sellers and buyers should keep in mind this year:

  1. It will be more tough to borrow.  Starting January 1st a minimum downpayment on a property in Canada rose to 20%.  It is also expected the Bank of Canada will hike this minimum amount by end of the year.  This will be felt most by first time home buyers as new mortgage applicants will have much more to prove.  The rules also refuse co-lending to take place, meaning families can’t pool multiple loans together to meet qualifications.
  2. Condos will fuel the market. Throughout 2017 condos were the most stable and rising type of housing in demand; mainly because of affordability as homes are out of price range for many homeowners.  In the month of November in Toronto, the average cost of a condo rose 17% compared to a 5.1% decline in the value of other types of homes in the city.
  3. Developers turn to a family centred focus.  Bigger families need to live somewhere.  This trend will be somewhat of a reserve from the “micro-condo” trend popular with single professionals and investors in the downtown areas.  But this year more developers are looking to create larger units with families in mind. Also think condominiums with kid playrooms in addition to the adult party room.

So look out because 2018 looks a whole lot different than 2017!

Prepping For Heavy Snowfall In The City

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Toronto can get hit pretty hard with snow during the winter season.  This can be difficult to deal with if you’re not ready for the hit.

Here are a few tips to prep for heavy snowfall in the city:

  1. Shovel.  Make sure you have a sturdy shovel or two in the garage to plow your sidewalks and driveway.  If the snowfall is continuous, try to complete the shovelling with a couple rounds, so there isn’t tons to snow to shovel once it’s all fallen.  You should recruit some family members to help.  The process will go much faster with more hands on deck.  Reward yourself with a hot chocolate on the couch when its finished.
  2. Make sure your windows and doors are weather stripped.  Keep the snow from entering indoors by sealing those small cracks in your windows or doors.  This will also keep the heat from seeping out and your heating bill down!
  3. Winter Rugs.  Thrown down the outdoor winter rugs in your front hallway and mudroom to soak up the snow and avoid muddy, slushy wet puddles on the floor.
  4. Stock your pantry with non-perishable items throughout the winter.  In case the roads aren’t tended to quick enough, you want to make sure you are stocked with basic necessities.  Better safe than sorry.
  5. Need to be somewhere? Give yourself extra time and plan ahead.  We all know the snow makes people, cars and public transit move slower.  So don’t be late and give yourself some wiggle room.

7 Simple Tips to Keep Your Heat Bill Low This Winter

Performance Property Management

Winter is around the corner and nobody likes getting those painfully expensive home heating bills.  They are worse than the cold weather!  Here are a couple tips to keep your heating bill low and your spirits high this winter season.

  1. Add weather stripping to your doors and windows -> keep those nasty drafts from seeping in at any window or door frame around the house.
  2. Insulate your attic and/or cellar -> closing in your attic will keep your precious hot air from rising up there, and closing in your cellar will prevent the cold underground air from seeping into your main floor.
  3. Free Home Energy Audits -> many home heating companies provide free home inspections to let you know where the majority of your heat is escaping and what you can to prevent it.  Take advantage of this!
  4. Monitor your use -> make note of your usage, turn down the heat at night and turn it off when you are out for long periods of time.
  5. Buy portable heaters -> if your home is heated by older radiators that don’t heat up larger rooms well, use space heaters or portable heaters that you un-plug when not needed.
  6. Only heat the rooms you use -> turn off the heat in the rooms you don’t use often.
  7. Bundle Up! -> Easiest thing you can do? Throw on a sweater! Your bank account will thank you later.

Toronto’s Rising Condominium Market

Performance Property Management

If Toronto Real Estate Board numbers continue trending the way they are now, Condominium apartment sales should continue to account for more and more of home sales in Toronto as time goes on.  As homes become increasingly more expensive and out of budget for many destined home owners, condos are becoming more appealing to those who can’t afford a house and want to live in the city.  The condominium apartment market segment has shown the strongest average rates of price growth since the Spring of 2017, relative to the other major market segments.  Demand remains strong with steady competition between buyers.  Supply also remains strong with new builds being consistently proposed and approved despite the common occurrence of being sold-out during the pre-construction phase.  In fact, out of 4, 121 units completed since 2012 in Toronto and the GTA, only 23 have failed.  Most of the cancellations due to zoning issues or over budget pre-constructions and proposal costs relative to the homes’ initial selling price.

Over the past few months, TREB has participated in discussions focused on developing solutions for the housing supply issue in the GTA.  As these discussions continue, it will be important to remember that the condominium apartment market is not immune to a listings shortage.  Both supply and demand are proving the fact that tons people are still flocking to our cities as they continue to densify.  The Toronto Star reports on a west-end development that was cancelled despite many of the units already sold, and how its left those buyers vulnerable. The article proving that the condo market is already just as risky as the house market.
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