All Forum Posts by: Gary McGowan

When looking at communities like Windsor and other smaller towns. Please do your Due Diligence and do not let the lure of the low purchase prices trick you. I've been caught before too. Great Cash Flow but tough rental pool and zero appreciation.

Look at the economic fundamentals.

ie: (from REIN)

Is the area’s average income increasing faster than the provincial average?

Is the area’s population growing faster than the provincial average?

Is the area creating jobs faster than the provincial average?

Does the area have more than one major employer?

Is the area in the RBC Affordability Index Hot Zone (25% to 39%)?

Will the area benefit from an economic or real estate ripple effect?

Has the political leadership created an economic growth atmosphere?

Is the Economic Development Office progressive and helpful?

Is the area’s infrastructure being built to handle the expected growth?

Are there any major transportation improvements in the works?

Is the area attractive to Baby Boomers’ lifestyle?

Is there a short term problem occurring that is slated to disappear in the future?

Is there a noted increase in labour and materials cost in the area?

Toronto is a big place and many different areas to research. I actually do not own any properties in Toronto but in the surrounding areas.

I have sold a few properties in the past 12 months and I'm looking to buy more. Sell the dogs and buy better properties. I have clients looking at Single Family homes and adding second suites. For larger properties we are looking at Barrie, Whitby, Oshawa, Newmarket, Guelph, Waterloo, and some other areas.

@Roy N. You raise a great point with rent control which not a lot of people know.

If a rental unit was not occupied for any purpose before June 17, 1998 - meaning it is either in a new building (often a condominium building) built since 1998, or an older building with a new unit or never occupied, residentially or otherwise, before June 17, 1998;

It does not follow yearly Ontario Rental Increases.

@Greg Rulfs I have not looked too deep into student rentals. I do know a few investors that do. Note: It is very difficult to get financing for students rentals at the moment as there are only a few lenders that will do it.

There is one larger building in London that is for sale. It is close to Fanshawe College and has 56 beds with a cap rate of approx 7.5%

@Quentin D. Until then!!!

You can not make passive income with single family homes in the GTA unless you use a rent to own strategy.

You need to look at properties with a least 2 units and buy for the long term. There are many areas around the GTA that make sense.

A period of over 4 years and many different techniques. Do not forget while looking for properties you should be building your buyers list.

In Ontario the government act REBBA 2002 this is referred to as Bird Dog.

http://www.reco.on.ca/publicdocs/RegBul%20-%20Bird%20Dog%20Fees.pdf

If you are not a licensed sales rep you can not be paid for a referral.

You can be paid for a contract. If you have a contract on a property you sell it for X. Why? Becasue you have a controlling interest in the property.

There are two ways to find out what properties sold for in Canada.

Pull title or talk with a Licensed Realtor to pull up the recent solds. Realtors if they know what they are doing also have access to the private sold prices.

For a Lawyer I would call Mark Warkentin

For an accountant I would call Navaz Murji CGA Murji & Associates

I'm not sure about their geograhic expernice but I do know they work with a lot of real estate investors and could point you in the right direction.

I live just north of Toronto in Newmarket. I invest in Durham Region, areas in York Region, Hamilton and Barrie.

Note: When I look at the numbers it only tells 50% of the story. The rest is determined by the area and local governments. When I have bought strictly on the numbers it is usually when the area is not great. The local Government is doing nothing to attract new business, new infrastructure and new transportation. I want an area where jobs are being created and people are moving to.