Real Estate Insider: December 2018 News Report

Merry Christmas and a Happy New Year, Real Estate Insiders! 2019 is just about to start, so we thought we'd put together a handy collection of topics perfect for planning your new year resolutions on your property. When you have a few moments of rest from the hustle and bustle of the holidays, be sure to grab your favourite holiday beverage and check out just a few of the ways you can be prepared for the biggest plans of 2019!

Thinking of doing a huge home renovation? There’s no better advice to get than from someone who’s done it! Read this couple's 6 biggest lessons they learned while putting an addition on their home so you can prepare and limit the number of surprises along the way! >>

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Would you trade paying more interest overall for a lower monthly payment? That’s the argument this article is making for the 30-year mortgage in the wake of rapidly rising interest rates. Overall it is personal preference, so which is yours? >>

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Ever wonder what happened to the people who started investing in Real Estate right before the 2008 crash? Read this article to find out the biggest mistakes this Real Estate investor made when he started out, and how he eventually bounced back. These tips could help fast-track you to financial freedom! >>

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Don’t be afraid to ask the hard questions when it comes to your money and don’t let a shady salesman pressure you into signing anything you don’t fully understand! Here’s a list of 4 big rip-offs to look out for to help save you money. >>

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Preparation is the name of the game when it comes to investment properties. Make sure you’re prepared for many of the aspects of owning different types of investment properties! >>

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Step 1: Buy gifts.

Step 2: Spend time with loved ones.
Step 3: Shovel and salt the sidewalk.

Step 4: Go over your year-end financial planning checklist—we can help you with this last one! >>

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Owning a cottage or vacation home is a goal many people have, but does it make sense overall? Read here for some considerations to help you make this big decision. >>

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AirBnB is being used by many as a source of income to help offset the price of owning a home or investment property. Are you aware of the short and long term tax implications? Read here to see why it could end up costing you way more than expected. >>

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Team Lalovich never cuts corners when it comes to selling real estate, and neither should any other Realtor! Unfortunately, there will always be some that find the worst possible ways so save a quick buck; if it affects the sale price of your home, it should be a deal breaker! Make sure your Realtor of choice is doing everything they can to provide you with the best service, starting with the photos. >>

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“The Bank Profit Indicator shows the amount of profit per man, woman and child in Canada.” Find out this years number here! >>

2018 Year In Review: Local Real Estate Market Observations

Happy holiday season, Gang! Can you believe Santa is coming to town in less than 2 weeks? With the end of 2018 on the horizon, we wanted to take the opportunity to review some of the things we learned this year about our local (Windsor-Essex) real estate market. Here are some items of note that stood out to us.

Listings Are Still Down.

Per WECAR (Windsor-Essex County Association of Realtors), through the first 11 months of the year, listings were down from 2017 by 6% year to date. Everyone thought inventory was super low last year and that was one of the main reasons for the bidding wars.  Well, inventory got even lower this year. The supply and demand balance has stayed with the sellers this year.

Average Sale Price Is Up, Again.

Also through those same 11 months of the year as per WECAR, the average sale price rose 14% versus 2017. I don’t think this strayed much from our forecast. Having listings down again, upward pressure was put on sale prices. This is a healthy stat that should put us up with some of the best performing markets in Canada.

Unit Sales Are Down Quite A Bit

In that same timespan, unit sales were down 11% versus 2017. This isn't a good stat for realtors! Listings being down explains part of it but clearly there is less turnover. A partial explanation could be that sellers have increased their pricing expectations and these over-priced listings are sitting on the market and not resulting in transactions.

Total Volume of Sales Were Up Modestly

Sales volume rose 2% versus 2017 through the first 11 months of 2018 per WECAR. This stat is pretty easy to figure out when you combine sales prices being up 14%, combined with unit sales being down 11%. What also affects this stat is the fact that more and more of the sales seem to be in higher priced categories bringing up the averages.

Increased Interest Rates Haven’t Affected the Market—Yet

With the Bank of Canada's increased interest rates three times this year, higher interest rates are making things less affordable in housing. This hasn’t translated into much decreased demand yet, but should interest rates go up a few more times in 2019, this could start to drive some people out of market.

Investor Demand Has Plateaued

The fever pitch of real estate investment demand seems to have levelled off. We had some listings this year that surprised us a little on the market reaction. The cap rate demanded by sellers and what buyers will accept seem to be at a standstill in 2018. Perhaps cap rates will increase a little next year and part of that may be due to the increasing interest rates mentioned above.

There Is A Serious Housing Shortage in the Rental Market

The vacancy rate in 2017 was down to 2.3% locally. The 2018 report still hasn’t been released but is looking like it will be less than 2%. We believe this stat is somewhat inflated; if you look around for vacancies for any decent buildings, they are essentially 0% with waiting lists. There are also long waiting lists for socially assisted housing. Combining this low rental supply with the booming housing market that is driving more people into the rental market and the situation is really dire for tenants. Something needs to be done about this at the governmental level as it seems to be getting more tight every year and market based solutions don’t look to be feasible.

Those are some of our 2018 real estate market observations. What are yours?  

RealEstate Inside: November 2018 News Report

Welcome back, everyone! This month, we've put together a full lesson plan to boost your real estate smarts. How real estate savvy are you? Looking to increase that pesky credit score, or become an Air BnB? We have some invaluable reads to help you on your way.

“Proficient in Microsoft Excel” used to be a skill every employer wanted to see on a resume, but nowadays it's expected—some would say required. Those not familiar with the many functions and shortcuts of Excel could save themselves a lot of time and effort by learning these handy functions, and this article is the perfect place to start! >>

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Nightmare tenants are a tale as old as landlord time. There are steps we have gone over to ensure good tenants, but sometimes you're just unlucky! There's no such thing as too much information when getting tips on picking good tenants, so be sure to read this story of nightmare tenants and what this landlord learned during the process! >>

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POP QUIZ TIME! How up to date are you on the Personal Information Protection and Electronic Documents Act (PIPEDA)? It began November first and this 20 question quiz could help you understand some of the changes a little better! >>

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Would you want the contents of your offer on a house to be public knowledge? Some people think it should be! Read this article on the auction style bidding process and let us know your thoughts! >>

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Thinking of buying your first home? This article might help to understand some of the monthly costs to expect outside of your mortgage payments to help you get prepared! >>

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Putting your rental properties into a holding corporation could be a good or a bad idea—it all depends on your overall objectives and your regions tax rules. Read this article to find the right questions to ask during your next meeting with your accountant! >>

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Condo or single family house? This is a question many people tend to have when deciding to make a real estate purchase. Things like lifestyle and goals are only some considerations when making your decision. Read this article for some advantages and disadvantages of buying a condo to help you decide! >>

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Cities with a high “walkability score” tend to have higher property values. Is your city walkable? If not, is your city planning geared towards making owning a car optional? This article explains the reasons why “walkability” is an important aspect for future economic growth, and why it should be one of your city planner’s top priorities.  >>

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Do you have a lower credit score as a result of past mistakes but want to get back on track? This article has great tips on how to repair a bruised credit score. >>

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Should you use your rental property as an Airbnb or a long term rental? This article lists both pros and cons to Airbnb and what to consider before becoming a part of the sweeping trend. >>

Considerations when Evaluating a Multifamily Property

We are in the process of concluding a multifamily listing that kept us very busy these last few weeks. During the listing period, we came across several investors who seemed new to this area and had a lot to learn before pulling the trigger on something. Therefore, today we are going to discuss some points that are always worth considering when evaluating a multifamily property.

What is the Structure Like?

Does the property have a concrete or wood frame? Is the exterior full brick or have siding? How old is it? With a multifamily property, you are not just buying a cashflow—you are acquiring an asset. How solid is that asset? Make sure the structure is sound.

How is the mechanical in the building?

Are there forced air furnaces in each unit? Is it a boiler system with hot water or is it electric baseboard heating every unit? Heating is a very important consideration. In Ontario, hydro rates are sky-high; having electric heat is a huge drawback and can sap the cash flow of any building. Gas is a more economical choice.

Are utilities separately metered?

Are there separate meters for gas and hydro? Having your tenants pay for their utilities adds lots more certainty on expense projections. Statistically when tenants pay their own utilities, they are natural incentives to not waste energy.  

How do the existing rents compare to CMHC average rents?

If you review the rent roll and the rents seem low, this can be both good and bad. It's good that there is upside in the average rents in future should you have tenant turnover; it's bad in the fact that if you have very low rents, the tenants will be much less apt to leave such a good deal. You’ll only be able raise their rent by the annual CPI percentage (1.8% this year).  

What is the tenant profile?

What is the area like? What sort of tenants would you attract in this building? What sort of jobs do these tenants have? It is important to understand what sort of rental pool you are operating in. If you want to attract high-end renters, you need to look at high-end locations.  

What is the cap rate?

Is the cap rate consistent with the market? Does it seem too high or too low? If it's too high, it might indicate there is something off with the building or problems with the tenants. If it's too low then it probably won't appraise at the bank, meaning you’ll be forced to put down a higher downpayment, lowering your returns.

Do the expenses seem legitimate?

We continuously see buildings being advertised with several items being excluded from the expenses. For example, they’ll only include utilities, insurance & property taxes. What about other items? Where are the repairs and maintenance, management, grass cutting, snow removal, and vacancy allowance? Sometimes these buildings are run and managed by the owner, but if you are a hands-off investor, you need to hire someone for these tasks—they need to be accounted for. An appraiser working for the bank is going to rework these expenses too and run the number based on their expense assumptions.

Do you notice any major deficiencies related to fire code?

This one isn’t easy to identify and it's a bit of a grey area at times, but there are some easy items to look for. Are there any basement units? Did they get permits for the basement unit? Are there egress windows in the basement units? Are there multiple entrances and exits to the building for tenants to access? Do items like fire alarms and smoke detectors seem somewhat recent?

Those are just some items to consider when evaluating a multifamily building. There are quite a few more, but we wanted to keep this at a beginner level. Readers, are there any more you think should be added?

Real Estate Insider: October 2018 News Report

Hi there, readers! With new local real estate developments and a continuing housing war, we thought we'd bring you a collection of reading just for the occasion. Take a look as we cover renovation tips, the benefits of living small, how to whittle down that mortgage, and more!



More often than not, renovations increase the value of your home. Everyone should be careful of renovations that are only improvements in their eyes! This article lists 7 home renovations that might not help the re-sale value of your home. >>

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Monthly mortgage payments is something every homeowner has to deal with. There are many different theories and strategies that go with paying off your mortgage, but have you ever heard of a sinking fund? If not, you can read all about it here! >>

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There’s one thing standing between the house size you think you need, and the house size you actually need: your ego. Set it aside and read the benefits of owning a smaller home. >>

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Condo popularity is growing in the Windsor-Essex area, and they are popping up all over! If you’re thinking of buying a condo make sure to keep these tips in mind so you don’t have any surprises after you make the big investment. >>

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House flipping is rapidly gaining popularity and can be a great way to earn extra cash to set yourself up for financial freedom. However, like many things, it’s not as easy as it sounds. Read this article for some things to consider before diving into a flip so it doesn’t turn into a flop. >>

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Investing in a vacation rental could be the perfect opportunity to finance a vacation spot for you and your family—if you’re willing to put in the work! As always, we want you to stay informed on all decisions involving real estate, so if you’re thinking of investing in a vacation home, be sure to read this article first. >>

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Getting your home ready for an inspection is a win-win for everyone; doing it right is important! This article does a great job at listing the simple things you should do pre-inspection to assure you get the highest price for your home. >>

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It’s easy to make mistakes when first starting anything, but some “rookie mistakes” can end up costing you a lot of money! Be sure to avoid the common ones by reading this article, and get yourself ready for a successful investment property! >>

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Does the thought of your mortgage constantly stress you out? If you want to live mortgage free, you can start by reading these 12 tips on how to reduce that pesky mortgage. >>

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How would you feel about having a neighbour that frequently rents out their home short term? Are you with the majority of Canadians? Find out here! >>

Development Across Windsor-Essex - Summarizing The Projects in The Works (Part 3

Even as we get deeper into Fall and the temperatures are starting to drop, the development in Windsor-Essex is still red hot! The previous two parts of this series have garnered solid feedback, so much so that we decided to add a part three!

Starbucks - Leamington & Lakeshore

Everyone loves a good Starbucks! And they are clearly expanding in Windsor-Essex. Nearing completion is the new location in the South End of the County, in Leamington at 291 Erie St. South. They are supposed to be open sometime this fall and the developer is Brotto Family Holdings. You can see more info on this one here.

The Starbucks that's in the same building as Indigo (off County Rd 22, just east of Manning) is going into a standalone building across the street. Just west of the CIBC on the massive site of the St Clair Shores Plaza, construction has just begun and should be open next year. The developer is the Valente Group. The address of the site is 25 Amy Croft Drive.

Both sites are the standard Starbucks 2000’ building layout with a drive through.

Hotel Coming to Tecumseh

On the site of the old Tecumseh Golf, a hotel development is coming to Tecumseh. This is the first hotel development in several years in the area. Details on the hotel brand haven’t been disclosed yet.  The development is courtesy of Petretta Construction. Look for more details coming soon.

Metro Anchored Retail Plaza Coming to Tecumseh

Adjacent to the coming Hotel development, on the westside of Manning between Amy Croft and Lanoue, comes the area’s latest retail plaza. Look out Sobeys and Zehrs as Metro is coming to town.  There will be an approximate 8000’ of additional retail space to go along with the grocery store, with yet to be announced tenants. This development is a partnership between Petretta Construction and the Otis group. Site work has recently begun with construction starting soon.

Quicken Loans Opening an Office in Downtown Windsor - 156 Chatham St W

Hot off the presses! This one we have first hand knowledge of, as we represented Quicken Loans and Bedrock in securing their Windsor space! The company is opening a Windsor office to support their American operations; having this Canadian office will allow them to avoid more strict worker immigration rules that have come out of the US during the Trump administration. It will also allow them to recruit graduates from several Southern Ontario universities. The building is known as the “Fish Market” and was previously home to a couple different bars (Coach & Horses and The Loop). The building is owned by a partnership of local developers Dino and Anthony Maggio and also the Cypher Systems Group. Quicken Loans is taking 9000’, which encompasses the entire first floor of the building, with the right to expand to the second floor in the future. Construction has been ongoing at the property for several months and should be turned over to Quicken this fall for them to finish the office buildout and begin operations in 2019. 50 people are expected to make the move over initially and that number could grow to 100 in the near future.

A couple big ones for you guys to know about! Hopefully you find these posts informative as we love being your go-to guys for information. Readers: are you excited about these projects?

Real Estate Insider: September 2018 News Report

Welcome back, Real Estate Insiders! This month we have a solid list of topics ranging from finding the perfect tenant to the latest craze of remodelling. We hope you have a cup of coffee and are ready for some of the most informative reads we've ever found. Enjoy!

Title insurance is a closing cost that everyone seems to question, but do you really need it? Well the short answer... is YES! Read how title insurance can save you from financial and personal stress.

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While not everyone might know what “Sequence Risk” is, it affects everyone the same. This is why you need to eliminate as much sequence risk as possible! Real Estate is a great way to significantly reduce this risk and this article explains why.

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Are you buying a new home or condo? Make sure to be caught up on the HST rebate rules so you don’t miss out on huge savings!

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True or False: Windsor is the most affordable city to buy a house in all of Canada. Find out the answer here!

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Remodelling is a rising trend among homeowners that doesn’t seem to be slowing down! But there are negative effects not shown on HGTV. Read them here.

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Cannabis is being legalized in less a month! Here are 5 things you should know now to stay informed.

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In trial separations it is sometimes unclear how the real estate is going to be divided among the family. This article can help with that part!

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Making sure you have good Tenants can make or break a rental property, so don’t leave anything to chance! Read the ultimate screening process here so picking good Tenants can be easy.

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The first year of anything you do usually has the biggest learning curve, so this article of 5 Lessons that Chris Mamula learned in his first year as a Landlord should help ease that curve! 

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Real Estate Investing isn’t only for the rich! Read here for an example of how to invest in a rental property with little to no down payment.

Development Across Windsor-Essex - Summarizing The Projects in The Works (Part 2)

Happy September, gang! Fall is upon us—even if the weather doesn’t yet feel like it—and for many people it's back to business. Luckily, there are quite a few development projects going on around Windsor-Essex at the moment to keep us busy! Today we wanted to discuss the rest of what we didn’t cover in part one of the series.

The Fairview Condos - The Corner of Wyandotte East & Fairview, Windsor ON

A small condo building is coming to this popular Riverside neighbourhood. The idea was previously created by another local developer. They decided to pass on the project and the new developer in place looks like they are moving swiftly forward. 15 units, all with 2 bedrooms and 2 bathrooms. The developer is Brotto Family Holdings, who have ties to local home builder Suburban Homes.  Construction is slated to begin this fall and be completed in September 2019. Many of the units have already been reserved with the remaining units being priced from $319,900 to $324,900. For more info check out their website at www.thefairview.ca.

Harbour Club Condos - 14346 Tecumseh, Tecumseh ON

The old Pud’s Marina is slated for redevelopment. Just east of the intersection of Brighton and Old Tecumseh Road in Lakeshore, Ontario, a condo is slated for the site backing onto Pike Creek. The developer is Petretta Construction who recently did the 250 Manning condos. Details have been slow to come in as the property needed to be rezoned with the official plan amended for condos to work at the site. The latest info states the building will be 65 units, 4 to 5 storeys and each unit will have its own boat dock. This will be a luxury building with luxury prices to match at $400+ per sq ft. You can sign up for their email list as more info is disclosed at harbourclub.info.

Residential Development Former St. Gregory’s Church - Tecumseh & Dorset Park, Tecumseh ON

The Rosati Group is trying to rezone a 4.29 acre parcel that used to be the former St Gregory’s church.  The property runs all the way from Tecumseh to St. Gregory's just west of Beach Grove.  The rezoning includes amending the official plan and area residents have voiced their concerns about what residential uses should be permitted. It seems like the Rosati Group wants to build a mixture of an apartment building (55 units) with some townhomes (22), while the neighbourhood wants only townhomes. More details should be disclosed soon but this is a very interesting site for residential development.

Peche Island Shores Phase II - Corner of Martinique & Riverside, Windsor ON

The City of Windsor is servicing some residential building lots on the vacant parcel at the southwest corner of Martinique and Riverside Drive in East Riverside. The plan calls for 20 single family building lots and 6 townhouse blocks. The city is running a very specific offer process with the latest round of offers needing to be in by October 15th, 2018. This is a good site and although it had an opportunity to be something with higher density the City decided against it. To learn more, check out the City of Windsor website:  https://www.citywindsor.ca/residents/Property/Property-for-Sale/current-properties-for-sale/Pages/Peche-Island-Shores---Phase-II.aspx.

Cierra Meadows - 70 Unit Townhouse Development in East Windsor, ON

A new 70 unit townhouse development is coming to a 6 acre parcel in East Windsor at the corner of Guy and Norman. The developer is Sam Zlotnik, former owner of Deerbrook Realty. The ranch style townhomes will start at 1,100’ with 2 bedrooms and 2 baths with pricing in the range of $295,000-$315,000. A model home is scheduled to be completed by January with construction on the other units later in 2019. You can check out all the info at their website https://www.cierrameadows.com.

Lots of residential development is on the horizon, including much needed condos! What do you think about these projects, readers? Any buyers or investors looking at getting involved?

Real Estate Insider: August 2018 News Report

Readers, can you believe it's the end of August already? And that means that Fall is just around the corner along with big changes in store! This month we've found some valuable reads, including 7 home projects to do before Winter, buying at a discount in a seller's market, the advantages of living in Windsor-Essex, and 5 important things to know about the new Cannabis Act!

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With the rapid increase in automation in today’s society, some people think Realtors will be obsolete in the next few years, but we disagree! Read why a computer cannot replace the value that a Realtor provides! >>

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Capital Gains Tax is something everyone dreads. A lot of people are aware that their principal residence is exempt, but if you have multiple properties you should read this article to make sure you are getting the most money out of your properties when it comes time to sell! >>

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There are many advantages of living in Windsor-Essex, perhaps one of the most significant is NO LAND TRANSFER TAX! Read here how much you would have to pay living in other places in Canada (sorry Vancouver). >>

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Having a hard time deciding whether to buy a property for yourself or invest in a rental income? Why not do both! A duplex might be the perfect way to get your foot in the door. Read the pros and cons of buying a duplex you plan to live in. >>

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While some chores seem to be manly for aesthetic purposes, many can save you thousands in the long run. Learn about the 7 home improvement projects to put on your list before winter! >>

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Discover the “5 C’s of credit in action” and see where you might fall. >>

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For the fourth time this year the Bank of Canada has raised its interest rates due to strong economic growth, but with concerns over Trump and NAFTA negotiations, some people aren’t so sure it’s a good idea. Read here about some of the implications of the recent spike. >>

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Real Estate Lawyers.ca is back at it with 5 things to know about the new Cannabis act! Watch this video to be more prepared for October. >>

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We are no doubt in a seller’s market right now, but that doesn’t mean you always have to pay top dollar for a property! This article gives a few tips and tricks to increase your odds of buying at a discount. >>

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“A rising rate guide to mortgages, HELOCs, GICs, savings and more”. >>