Ottawa Real Estate Blog

July 9, 2018

Centretown 7 Unit Sold in June 2018

We found a 7 Unit apartment building that sold in June and below are the financials on it.

There was a mix of bachelor apartments as well as 1, 2 and 3 bedroom apartments. It took 65 days to sell and it sold for $44,000 under the asking price.

This building had One Apartment that was said to suitable as an Owner Occupant Apartment, and maybe that is why this buyer bought the building, to live-in. The Return on Investment here is negative.

Centretown 7 Unit Building, Sold June 2018
Listed Price $1,469,000

Selling Price $1,425,000
Scheduled Rental Income (SRI) $100,152
Effective Rental Income (ERI) $96,146
Total Operating Expenses (TOE) $36,496
Net Operating Income (NOI) $59,650
Capitalization Rate (CAP) 4.2%
Operating Expense Ratio (OER) 38%
Sales Price X Net Income 24
35% Downpayment $498,750
Mortgage (@ 5.5%) $926,250
Annual Debt Service (mortgage payments) $67,845
Cash Flow - $8,195
Return on Investment (ROI) - 1.6%

At first glance in the table above, you can see that this buyer would be having an $8000 loss in the first year if they had a 35% downpayment. This property did have a 4.2% Cap Rate.

Looking to buy, have a look at all our Income Properties for sale

July 6, 2018

58 Sundragon Way, Barrhaven, Ottawa

Our newest listing will be at 58 Sundragon Way in the Half Moon Bay neighbourhood in Barrhaven

House coming to Ottawa MLS Tuesday 10th July and Priced at $475,000

58 Sundragon Way is a Wonderful family home with 3 bedrooms & 2.5 baths with one being an ensuite. This Marigold Corner model is 1,710 square feet according to Mattamy plans. It feels even larger with an open concept plan and abundance of windows on the main floor.

Watch the video below for Interior Photos

Talk to guests or keep kids in view when making dinner. Well designed with a mudroom, closet and powder room off of the foyer. Upgraded with hardwood through the main floor. Upstairs features a large open family room. Ensuite with two sinks.

Basement has a partially finished recreation room with flooring and drywall, which just needs to have mud & tape + ceiling for added living space. The hard work's been done!!

Note the 2 car garage that many larger area homes do not have, with direct access to the house. This HUGE corner lot is 3,584 square feet according to Geowarehouse. Compare that to the competition!

The large yard is fully fenced and quite private. Did you notice the large front porch for that country estate vibe. Inquire about the many local schools.

DIRECTIONS: South on Greenbank, west on Dundonald. Left at Andre Audet. Left at Soldats Riendeau to Sundragon Way.

Want to see this house, Patrick@AgentInOttawa.com or 613-788-2590

Take a quick tour of Sundragon Way or the immediate neighbourhood using the interactive street map below

June 11, 2018

142 Huntersfield Drive, Ottawa

New Listing in Greenboro/Hunt Club Park, this is a 2 Storey detached house with 3 beds & 4 baths, priced at $399,900

Coming to the Ottawa MLS on Friday 15th June 2018

142 Huntersfield Drive, Greenboro, Ottawa

This new listing will be going live on Friday 15th June, get in touch for an early showing!

  • Directions: Hunt Club to Pike Street then west on Huntersfield.
  • Lot size: 33.46 ' x 104.98

One of the nicest locations in Greenboro backing on to Bruff Park and kilometers of walking paths. Terrific family home with 4 baths, 3 bedrooms, fully finished basement, and oversized garage.

Watch Video Tour of 142 Huntersfield

In 2016 a red cedar fence installed, basement reno'd with additional room and 3 piece bath added. Dishwasher & garage door 2016. Furnace, AC, believed to be 2015, roof 2010. This is a bright home with large windows. The dining room which has a bay window and the kitchen at the back, over look the park. Kitchen with glass doors to a wood deck & stairs down to the back yard and a patio.

Some recent touch up painting makes this home move in ready. Note 4 appliances are negotiable. Basement den currently used as a 4th bedroom.

Use the Interactive Map below to have a look up and down Huntersfield Drive or take a tour of the neighbourhood.

If you want to live in this neighbourhood, have a look at all the homes that are currently available in the Greenboro, Hunt Club and South Keys Neighbourhoods

June 7, 2018

Vanier 5 Unit Sold in May 2018

The financials we are looking at for May is on the sale of a 5 Unit Apartment Building in the Vanier Neighbourhood

This building took 125 days to sell and it sold for $790,000 which is $10,000 below the listed price. It was Fire Retrofit and had 6 parking spaces. It had Apartments with 1 bed and a den as well as 2 bedroom apartments.

Below you can see all of the numbers that calculate whether this buyer makes any money on this building, and at the end of the day, he does make a return on investment here of 2.74%, very acceptable!

Vanier 5 Unit Building, Sold May 2018
Listed Price $799,900

Selling Price $790,000
Scheduled Rental Income (SRI) $64,620
Effective Rental Income (ERI) $62,035
Total Operating Expenses (TOE) $23,672
Net Operating Income (NOI) $38,363
Capitalization Rate (CAP) 4.9%
Operating Expense Ratio (OER) 38%
Sales Price X Net Income 20.6
35% Downpayment $276,500
Mortgage (@ 3.8%) $513,500
Annual Debt Service (mortgage payments) $30,765
Cash Flow $7,598
Return on Investment (ROI) 2.74%

From the table above, you can see that this buyer has a positive cash flow of $7598 per year on this property, with a 35% downpayment and the mortgage rate assumed here was 3.5%.

Are you looking to buy, check out a selection of Income Property for Sale

May 30, 2018

3414 Fontenay Court, Ottawa

New Listing - This is a split-level 4 bedroom house in the South Keys Neighbourhood, priced at $459,900.

3414 Fontenay Court Exterior Front Image

Quick facts and features about the House & Neighbourhood

  • Short walk to the O-Train.
  • Walking distance to Walmart, Loblaws, Metro, Bank St. & Hunt Club, Greenboro library & community centre.
  • Walking path for 4 to 5 km.
  • Split level house with - 4 Bed, 3 bath
  • 2 car garage
  • main floor family room
  • on a pie shape lot
  • wood-burning fireplace

Watch the video below for a tour inside 3414 Fontenay Crt.

Renovations and Updates done at 3414 Fontenay

  • Shingles/roof 2017
  • Chimney repaired and recapped 2017
  • Hardwood floors refinished 2017-2018 (excluding main bdrm, which was done in 2012)
  • Paint throughout house 2017-2018
  • Fireplace mantle 2017
  • Kitchen updated including quartz countertop 2017-2018
  • powder room/2 piece bath updated 2017
  • main bathroom completely renovated 2017
  • ensuite 3-piece bath completely renovated in 2012

Contact Patrick Walchuk, Patrick@AgentInOttawa.com, or phone 613-788-2590

Showings start Friday June 1st 2018, book your viewing Today and get in right away when it goes live.

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.