How easy is it to buy or sell your house during the Covid 19 Virus?

Pat Walchuk talks about how things have changed in the real estate market in Ottawa and continue to change as we journey through this scurge called Covid 19. More rules, more clauses, more restrictions. Watch the video for the real life description of what is like from the perspective of an experienced agent.

Pat discusses what buyers and sellers are now doing different to prevent catching or spreading the virus. There could even be liability cases.

If you have any questions about this video please get in touch, use the form below or call Patrick 613-788-2590

View the financial information on this 10 Unit Building that sold recently in Carlingwood.

Find out what the income and expenses were as well as the Cap Rate and the return on investment for the buyer with a 35% downpayment.

The image below contains the table with all of the financial information for this 10 unit property, you can follow along while watching the video.

Notice that the cash flow on this one, with 35% downpayment, it still loses almost $34,000 per year, can you say deep pockets?

This income property in Heron Park, Ottawa had 12 units and sold in February, below are the financials.

This month we are giving you two possible scenarios, one with a 20% downpayment and the other with a 35% downpayment. You can see the difference it makes to the ROI and cash flow.

The image below shows you the two scenarios laid out side-by-side. You can see that the 35% down gives the buyer a positive cash flow of $28,000, while the 20% down gives a negative cash flow of 5,500.

This building had a decent Cap Rate of 4.4%.

View all of the current Income Properties for Sale

Would you buy this Income Property with 6 units, in the Hintonburg Neighbourhood in Ottawa?

Watch the video and see the table below for all of the numbers on this building, see how much the person invested and their return on investment.

There were a lot of unknowns in this income property, including whether or not it was fire retrofit, and income was also a guess.

Are you an investor looking to buy, have a look at some Multi-Family homes for sale.

Here is an image showing you all the financials on this building.

This was a building in the Hintonburg Neighbourhood that sold in December 2019, have a look at the numbers.

The table below gives you a quick overall look at the numbers. You will see that this buyer, even with a downpayment of $262,000 still loses money every year, and has a negative ROI as well.

Have a look at our current inventory of Multi-Family Properties for sale.

Where will the Real Estate Market in Ottawa head in 2020?

Almost more of 2019. Prices in 2019 went up by 8.4%, unit sales increased by 6.6%. We expect to see 2020 unit sales increase by 4-6%.

For the most up-to-date information, see this months Ottawa Real Estate Market Update

Prices won’t escalate as much in 2020.

ReMax is predicting a 6% increase, and Royal Lepage is predicting a 4.5% hike. We’ll go with that! Average house prices will break through the $500,000 mark with the average being predicted for 2010 is $516,200, by Royal Lepage.

We have a minority government supported by centre-left to left wing big spenders, so the financial taps will continue to flow.

Canadas major banks are predicting the TSX to go up to a range of 17,700 to 18,500. (currently at 17,000)

We hope inventory levels increase. (especially for condo inventory)

I don’t see how we can have another year of such scarcity especially with condominiums. There were times in 2019 when there were only 4 to 6 weeks of inventory for sale. It can’t get worse than that.

Going into 2020 we still expect that there will be a lot of competition for certain types of home, especially those between $200,000 up to $400,000 in the areas of Orleans, Kanata and Barrhaven and area close to the new LRT line.

2 bedroom condo in the Byward Market neighbourhood.

Condo fees of $724 include:

Building Insurance, Caretaker, Heat, Hydro, Management Fee, Recreation Facilities, Water and Sewer.

Amenities:

Elevator, Exercise Centre, Recreation Centre

Contact Patrick Walchuk at 613-788-2590 to schedule a showing, or have a look at other condos for sale on George Street in the Byward Market neighbourhood.

See how much this buyer is making on this investment.

Below we give you the financial information on this sale of a 6 unit property. This one had 8 offers and sold for a good bit over the asking price. We see this happening all the time right now.

Great time to sell your income property, condition no option !!

Other: Very busy road, limited revenue upside, deferred maintenance

Invest in the small towns around Ottawa

This month we are going to look at the sale of this 35 unit apartment building in a small town near Ottawa. This will show you the numbers on an income property just outside Ottawa.

The property we looked at this month gave the buyer a positive cash flow on this building with a 35% downpayment. They got a Cap Rate of 4.7% and more importantly, a positive cash flow of $13,748 per year.

If you want to invest in any type of income property, get in touch. Have a look at the current inventory of Multi-Family Property for Sale

Video covering the financial information for this Triplex that sold in September.