Ottawa Real Estate Blog

May 9, 2018

The Glebe Triplex Sold April 2018

This month we are looking at the financial information on the recent sale of a Triplex from the Glebe

This property sold for $70,000 under it's asking price, so there were likely not multiple offers on this One, as we are seeing with a lot of Income Properties right now. It did sell pretty quick, just 22 days on the Market.

This was a Legal Triplex, that had Operating Expenses which were 35% of it's income and a Cap Rate of 4.2%, which can be considered very decent for an upscale neighbourhood like The Glebe.

Glebe Triplex, Sold April 2018
Listed Price $1,350,000

Selling Price $1,280,000
Scheduled Rental Income (SRI) $85,800
Effective Rental Income (ERI) $82,368
Total Operating Expenses (TOE) $28,477
Net Operating Income (NOI) $53,891
Capitalization Rate (CAP) 4.2%
Operating Expense Ratio (OER) 35%
Sales Price X Net Income 24
35% Downpayment $448,000
Mortgage (@ 3.8%) $832,000
Annual Debt Service (mortgage payments) $51,444
Cash Flow $2,447
Return on Investment (ROI) 0.5%

The buyer here will have a positive cash flow of almost $2500 per year, with a 35% downpayment and a Return-On-Investment of 0.5%.

For the purposes of this situation we are assuming that this buyer got a mortgage rate of 3.8%, which might be a tad on the high end.

If you are looking to buy, check out all of the current Multi-Family Homes for sale at our site.

April 26, 2018

Ontario’s New Mandatory Residential Lease Agreement

Ontarios New Standard LeaseThe New Ontario Standard Lease

Starting April 30, 2018, Ontario landlords of most private residential rental units – from individual landlords to property management companies – must use the standard lease template for all new leases.

The standard lease uses language that is easy to understand in order to ensure landlords and renters are clear about their rights and responsibilities. The Ontario government hopes it will:

  • reduce illegal terms in leases and misunderstandings in verbal tenancy agreements; and
  • reduce the need for Landlord and Tenant Board hearings to resolve disputes.

The standard lease will apply to most residential tenancies in Ontario, including:

  • single and semi-detached houses
  • apartment buildings
  • condominiums
  • secondary units (i.e. basement apartments)

A standard lease is not required for tenancies that have special rules or partial exemptions under the RTA, including:

  • care homes (i.e. retirement homes)
  • mobile home parks and land lease communities
  • social and supportive housing exempt from the rent rules under the RTA (i.e. housing subject to operating agreements under certain programs or where the tenant receives publically funded rent-geared-to-income assistance

Frequently asked questions about the New Standard lease

  • When must the new standard lease be used?

  • What can happen if you don’t use it?

  • How should a landlord get ready for it?

  • What are some of the key points in the standard lease?

  • What terms should a landlord add to the standard lease?

Download the full document here for answers to all of the questions above.

This article by John Dickie
Dickie and Lyman
Lawyers LLP.

Want to check out a copy of the new Standard Lease, we added a link to it from our first blog post about this.

You can download a sample of the new lease in our Previous Article here

April 13, 2018

Ottawa's Light Rail Transit (LRT) Update

Confederation Line and LRT Updates

image of a light rail transit vehicle

April 2018 Update includes:

Confederation Line –Stage 1

  • Overview – project, consortium, vehicles
  • Construction Update – stations, tunnel, update
  • Ready for Rail

Confederation Line –Stage 2

  • Overview –benefits, vehicles
  • Timelines

Download this very comprehensive update about the new LRT coming to Ottawa very shortly. It provides you with a lot of information and images of the vehicles, the stations and the tunnels.

Download the PDF for the complete Ottawa LRT Update here

It also gets into why this massive project will impact the real estate market and housing prices for houses located near the new LRT.

Ottawa has embarked on the largest infrastructure project since the building of the Rideau Canal and The City of Ottawa will be the ultimate Owner of the LRT. Rideau Transit Group will assume the responsibility for the ongoing maintenance of the Confederation Line on behalf of the city as Rideau Transit Maintenance (RTM)

34 trains will comprise the Confederation Line system, with 23 trains already completely assembled. 22 of them are undergoing testing. 9 more trains are in various stages of assembly.

Trains will initially run every 5 minutes or even less during the busiest peak times and the travel time is estimated to be 25 minutes, including stops.

The LRT Trains will be able to handle a ridership of 11,000 passengers per hour in each direction.

Implementation Timeline:

  • Release of Confederation Line Extension RFP -  Q2 2017
  • Release of Trillium Line Extension RFP - Q3 2017
  • Stage 2 Contract Award - 2018
  • Construction Commences - 2019
  • Revenue Service Trillium - 2021
  • Revenue Service Confederation Line East - 2022
  • Revenue Service Confederation Line West - 2023
Posted in General, LRT
April 4, 2018

Vanier 10 Unit Building Sold March 2018

For April, we are crunching the financials on a 10 Unit Income Property that sold during March in Vanier

This property was a conventional 10 Unit Building with an assumable mortgage!

Vanier 10 Unit Building, Sold March 2018
Listed Price $1,749,000

Selling Price $1,700,000
Scheduled Rental Income (SRI) $126,990
Effective Rental Income (ERI) $121,910
Total Operating Expenses (TOE) $40,216
Net Operating Income (NOI) $81,694
Capitalization Rate (CAP) 4.8%
Operating Expense Ratio (OER) 33%
Sales Price X Net Income 21
35% Downpayment $595,000
Mortgage (@ 3.25%) $1,105,000
Annual Debt Service (mortgage payments) $80,938
Cash Flow $756
Return on Investment (ROI) 0.12%

What is very interesting is that the buyer for this Investment Property assumed a mortgage from the seller at 3.57% and the banks would have applied a mortgage rate of about 5.5%, so this meant that his cash flow every year went from just $756, up to $10,380 and his mortgage payments went from $80,938 down to $71,314.

This Buyer seems to have got a pretty good deal and has a CAP Rate of 4.8% on this Investment and a nice positive cash flow with a 35% down-payment.

Check out some Income Properties for sale, get in touch with Patrick Walchuk if you want to buy or sell any type of Income & Investment Property.

 

April 2, 2018

Compare Barrhaven Neighbourhoods 2017

Check out which Neighbourhoods in Barrhaven performed the best in 2017 for the most sales and highest prices

Below you'll see how each neighbourhood, quickly compare all the neighbourhoods in Barrhaven and see the Top 3 areas for the number of sales and prices in 2017. If you want the most current real estate stats and average prices, we provide that every month at our Barrhaven Market Update

Below are Barrhaven's Neighbourhoods listed Alphabetically:

  • 123 Sales in Cedargrove/Fraserdale, Average Price was $337,617, down 5%

  • 180 Sales in Chapman Mills and Davidson Heights, Average Price was $372,702, up by 4%

  • 172 Sales in Half Moon Bay, Average Price was $400,945, up by 7.6%

  • 6 sales in Hearts Desire, Average price was $545,583, up 12.3%

  • 41 homes sold in Knollsbrook, average price for a home was $324,590, up by 3.2%

  • 301 homes sold in Longfields, average price for a home was $358,383, that's up by 4.9%

  • 282 sales in Old Barrhaven, average price $340,009, down 3.6%

  • 6 homes sold in Orchard Estates and Cedarhill, Average Price was $1,056,667, up by 20.8%

  • 104 Home Sales in Pheasant Run & the Average Price was $308,897, up by 1.8%

  • 233 sales in Stonebridge with an average price of $457,479, up by 10.7%

  • 181 homes sold in Strandherd, and the average price was $346,998, up by 0.4%

Top 3 Neighbourhoods in Barrhaven:

Here are the best performing neighbourhoods in Barrhaven for the Number of Sales, the average price and the best percentage increase in price for all of 2017.

Highest number of Home Sales in Barrhaven

  1. Longfields

  2. Old Barrhaven

  3. Pheasant Run

Highest Sales Prices

  1. Orchard Estates, Cedarhill

  2. Hearts Desire

  3. Stonebridge

Highest Increase in price over previous year

  1. Orchard Estates, Cedarhill

  2. Hearts Desire

  3. Half Moon Bay

Looking at the Three categories, Orchard Estates and Cedarhill take the Top Spot for the Highest prices as well as the highest increase in price, but Hearts Desire came 2nd in both of these categories, and deserves a mention. The area with the most sales was Longfields.

There are other factors that you would look at to really decide which neighbourhoods in Barrhaven are the hottest, that would be, how long are homes taking to sell and how much are seller's getting as a percent of their asking prices.

We provide all of that information, as well as the history of house prices in each neighbourhood every year, going back till 2000 in most areas.

Visit our Real Estate Market Reports for all that and more.

April 2, 2018

Compare Kanata Neighbourhoods 2017

Have a look at how Kanata's Neighbourhoods performed. See the areas where homes sold the fastest and for the most money in Kanata for 2017

Below is a quick snapshot of the neighbourhoods in Kanata, you can get much more information for any specific Kanata Neighbourhood at our Market Stats Page, or view this months general stats for all of Kanata here.

Below are all Kanata Neighbourhoods covered alphabetically:

  • 133 Sales in Beaverbrook, Average Price was $315,992, down 1.3%

  • 210 Sales in Bridlewood, Average Price was $405,297, up 7.3%

  • 341 Sales in Emerald Meadows and Trailwest, Average Price was $356,148, up 4.9%

  • 143 Sales in Glen Cairn and Hazeldean, Average Price was $308,813 up 9.9%

  • 218 Sales in Kanata Lakes, Average Price was $488,016, down 0.1%

  • 212 Sales in Katimavik, Average Price was $314,315, an increase of 7.2%

  • 222 Sales in Morgans Grant, Average Price was $406,852, up by 9.6%

Top 3 Neighbourhoods in Kanata:

Here are the best performing neighbourhoods in Kanata for the Number of Sales, the average price and the best percentage increase in price for all of 2017.

Most Home Sales in Kanata

  1. Emerald Meadows Trailwest

  2. Morgans Grant South March

  3. Kanata Lakes Marchwood Lakeside

Highest Sales Prices

  1. Kanata Lakes, Marchwood Lakeside

  2. Morgans Grant, South March

  3. Bridlewood

Highest Increase in price over previous year

  1. Glen Cairn, Hazeldean

  2. Morgans Grant, South March

  3. Bridlewood

Looking at the Three categories, Morgans Grant was the only neighbourhood featured in all of them, so it can be considered the Top Neighbourhood in Kanata for Sales, prices and increase in price in 2017.

Emerald Meadows had the most sales, while Kanata Lakes, as expected, had the highest house prices, and Morgans Grant came in 2nd in these categories.

Shout out to Bridlewood, that came in 3rd for Highest prices and the highest increase in the average price.

March 21, 2018

Compare Orleans Neighbourhoods 2017

Have a look at how Orleans Neighbourhoods performed in 2017, for number of sales, prices and which areas saw the highest increases or even decreases in price.

Below you'll find a quick snapshot of the neighbourhoods in Orleans, you can get much more information for any specific Orleans Neighbourhood at our Market Stats Page, or you can get this months general stats for all of Orleans here.

Below are all of the Neighbourhoods covered alphabetically:

  • Avalon, Average Price $379,348, up by 4.2% with 594 home sales

  • Bradley Estates, Average Price $414,064, up by 2.9% with 58 sales

  • Chapel Hill, Average Price $400,075, up by 4.1% with 260 sales

  • Chateauneuf, Average Price $351,577, up by 4.7% with 104 sales

  • Chatelaine Village, Average Price $284,746, down by 8.6% with 84 sales

  • Convent Glen, Average Price $320,524, up by 2.9% with 182

  • Fallingbrook, Average Price $347,673, up down by 0.2% with 408 sales

  • Sunridge/Orleans Village, Average Price $375,263, up by 6.6% with 54 sales

  • Queenswood Heights, Average Price $330,665, up by 2.3% with 179 sales

Top 3 Neighbourhoods in Orleans:

Here are the best performing neighbourhoods in Orleans for the Number of Sales, the average price and the best percentage increase in price for all of 2017.

Most Home Sales in Orleans

  1. Avalon

  2. Fallingbrook

  3. Chapel Hill

Highest Sales Prices

  1. Bradley Estates

  2. Chapel Hill

  3. Avalon

Highest Increase in price over previous year

  1. Sunridge/Orleans Village

  2. Chateauneuf

  3. Avalon

Looking at the Three categories, Avalon was the only neighbourhood featured in all of them, so it can be considered the Top Neighbourhood in Orleans for Sales and prices in 2017

March 17, 2018

Top Neighbourhoods up till March 2018

Most Expensive Homes Sold in Ottawa up till March 17th 2018 and the Neighbourhoods with Fastest Sales

Best Neighbourhoods till March 2018We like to give you some information about the Neighbourhoods in Ottawa where we see the highest sales prices a few time per year and this is up till March 17th 2018.

Below we give you the Neighbourhoods that have had the highest sales prices so far this year and we also tell you how long it took for those homes to sell.

Then we give you the 16 Neighbourhoods where New Listings sold on the same day they were listed, these can be considered the Hot areas right now.

If you want to see the Real Estate Statistics for any specific Neighbourhood, which includes the number of sales, average price and percentage change in price each year, go check out our Neighbourhood Market Reports.

Top 10 Neighbourhoods for Most Expensive Sales Price

Below are the 10 Neighbourhoods where we saw the highest prices up till March 2018, with the amount of time it took to sell as well.

  1. Rockcliffe Park, sold for $1,960,000 in 249 Days

  2. McKellar Heights, sold for $1,870,000 in 18 Days

  3. Manotick Estates, sold for $1,775,000 in 150 Days

  4. Rockcliffe Park, sold for $1,682,300 in 32 Days

  5. Borden Farm/Stewart Farm/Carleton Heights/Parkwood Hills, sold for $1,550,000 in 19 Days

  6. Cedar Hill & Orchard Estates, sold for $1,545,000 in 42 Days

  7. Rockcliffe Park, sold for $1,495,000 in 2 Days

  8. Rothwell Heights, sold for $1,400,000 in 595 Days

  9. Alta Vista/Faircrest Heights, sold for $1,362,000 in 28 Days

  10. McKellar Heights, sold for $1,280,000 in 4 days

Looking at the Top 10 highest sales prices we can see that Rockcliffe Park took 3 spots, and McKellar Heights took 2 spots. I am surprised that The Glebe and some other areas never made the list, but I am sure that will change as the year progresses.

Neighbourhoods that had Homes sell on 1st Day

Below are all 16 Neighbourhoods where the listings sold on the first day and we also give you how much they sold for, compared with their list price

  1. Overbrook, sold for $4,900 under list price

  2. Glebe, sold for $30,100 over asking price

  3. Wellington Village, sold for full price

  4. Fallingbrook, sold for full price

  5. Courtland Park, sold for full price

  6. Deer Run/Stittsville, sold for $100 over asking price

  7. Centretown, sold for full price

  8. Centretown, sold for full price

  9. Centretown, sold for full price

  10. Avalon, sold for $5,100 over listed price

  11. Emerald Meadows/Trailwest, sold for full price

  12. Kanata Lakes, sold for $3000 under list price

  13. Longfields, sold for $200 over list price

  14. Knollsbrook, sold for $2500 under list price

  15. Blackburn Hamlet, sold for $600 under listed price

  16. Queenswood Heights, sold for full price

So, from above we can see that the homes that sold the quickest were from all areas of the City, except to the South.

We had 4 sales in Central Ottawa, 2 from the East, 2 from the West, 1 from the Far West, 2 from Kanata, 2 from Barrhaven and 3 from Orleans.

We'll provide another update to the best neighbourhoods for sales prices and quickest time to sell in another few months.

March 15, 2018

New Listing - 423 Meadowhawk Crescent Ottawa

House is SOLD

423 Meadowhawk Crescent is a larger 2 Story Detached house listed @ $469,900

423 Meadowhawk Crescent Ottawa

MLS# 1097763.

This house was built in 2012 and has 4 bedroom and 2.5 Bathrooms, it is the Mattamy Meadowridge Model with 2318 square feet above ground.

It is heated by Forced Air/Natural Gas, has Central Air Conditioning, a Gas Fireplace, Fenced Yard, Attached Garage and comes with all appliances, including Stove, Freezer, Dishwasher, Refridgerator, Washer and Dryer.

Watch the video tour for 423 Meadowhawk Cr. below

The Airport is nearby and shopping, recreation and Public Transit are also close.

Located in the Half Moon bay Neighbourhood in Barrhaven, between Greenbank Road and Andre Audet Avenue.

See more Homes for Sale in Half Moon Bay

Check out the Streetview at 423 Meadowhawk, or the surrounding neighbourhood using the Google Map Below.

Contact Patrick Walchuk for more info or to book a Showing Today!

613-788-2590 or email Patrick@AgentInOttawa.com 

March 7, 2018

Sales of 2 Income Properties in Feb 2018

This month we are analyzing the recent sales of Two Multi-Unit Residential Buildings that sold in February

The first One is a Triplex in Lowertown and the other was a 6 Unit Building from the Viscount Alexander Park Neighbourhood.

Below are the financials for the Triplex in Lowertown

Lowertown Triplex Building, Sold Feb. 2018
Listed Price $899,900

Selling Price $945,000
Scheduled Rental Income (SRI) $58,680
Effective Rental Income (ERI) $56,333
Total Operating Expenses (TOE) $19,602
Net Operating Income (NOI) $36,731
Capitalization Rate (CAP) 3.9%
Operating Expense Ratio (OER) 35%
Sales Price X Net Income  
35% Downpayment $330,750
Mortgage (@ 3.25%) $614,250
Annual Debt Service (mortgage payments) $37,191
Cash Flow -$460
Return on Investment (ROI) -0.1%

Financials for the 6 Unit Building in Viscount Alexander Park

Viscount Alexander Park 6 Unit Building, Sold Feb. 2018
Listed Price $1,550,000

Selling Price $1,510,000
Scheduled Rental Income (SRI) $100,980
Effective Rental Income (ERI) $96,940
Total Operating Expenses (TOE) $33,124
Net Operating Income (NOI) $63,816
Capitalization Rate (CAP) 4.2%
Operating Expense Ratio (OER) 34%
Sales Price X Net Income  
35% Downpayment $528,500
Mortgage (@ 3.25%) $981,500
Annual Debt Service (mortgage payments) $72,579
Cash Flow -$8763
Return on Investment (ROI) -1.7%

The Mortgage Rates used for the 2 sales above would differ, because Banks charge a different rate for larger Multi-Family homes compared with smaller Ones.

We are assuming that the Triplex Buyer above got a Mortgage Rate of 3.6% and the Buyer of the 6-Unit building would pay 2 points more, at 5.6%.

Are you looking to buy an Income Property, have a look at the current listings

Want to sell your Multi-Family Building, get an appraisal here