Ottawa Real Estate Blog

April 29, 2019

12 Unit Building Sold April 2019 in West Ottawa

This month we are taking a look at a larger building, this 12 unit sold in April 2019, below are the financials.

This building was a mix of bachelor and 2 bedroom apartments with one unit being commercial with a separate entrance. There were 11 parking spaces.

West Ottawa 12 Units, Sold April 2019
Listed Price $2,100,000

Selling Price $1,995,000
Scheduled Rental Income (SRI) $167,100
Effective Rental Income (ERI) $162,087
Total Operating Expenses (TOE) $59,982
Net Operating Income (NOI) $102.105
Capitalization Rate (CAP) 5.1%
Operating Expense Ratio (OER) 37%
Sales Price X Net Income 19.5
35% Downpayment $698,250
Mortgage (@ 5% Rate) $1,296,750
Annual Debt Service (mortgage payments) $90,504
Cash Flow $11,601
Return on Investment (ROI) 1.7%

It's good to see that someone can get a positive cash-flow from their investment, this building shows $11,601 per year which is a 1.7% return on their investment of almost $700,000. The Cap Rate seems decent too, at 5.1%

April 17, 2019

New Listing - 1719 Silver Bark Avenue, Orleans

1719 Silver Bark Ave. in the Sunridge Neighbourghood in Orleans. Price is $539,900

1719 Silver Bark Avenue

This new listing is coming soon to the Ottawa MLS, going live on Tuesday 23rd April 2019. This is a larger 4 bedroom family house with Main floor den and family room, finished basement. two full ensuites and a  two car garage.

Watch the Video Tour of 1719 Silver Bark Ave.

  • Detached 2 Storey House
  • 4 Bedrooms
  • 4 Bathrooms with 2 ensuites
  • Built in 1989
  • 59' x 129' lot size
  • Central Air Conditioned
  • Double Garage with auto-opener

Below is a Google Streetview of 1719 Silver Bark & Neighbourhood

Do you want to sell your house in Sunridge, let us give you a free evaluation of your house, or if you are looking to buy in this area, View all other homes for sale in Sunridge, Orleans

If you are interested and want more information or want to schedule a showing at 1719 Silver Bark, contact Patrick Walchuk at 613-788-2590 or email Patrick@AgentInOttawa.com 

April 4, 2019

Westboro 6 Unit Sold March 2019

Here is the financial information from the recent sale of a 6-Unit Income Property that sold last month.

The property below was a legal 6 unit and had a 7th apartment too.

At the end of the day, you can see that with a 35% down-payment this buyer took a loss of over $22,000 per year, or a -5% return on this investment.

Westboro 6 Units, Sold March 2019
Listed Price $1,250,000

Selling Price $1,231,000
Scheduled Rental Income (SRI) $62,000
Effective Rental Income (ERI) $59,932
Total Operating Expenses (TOE) $26,413
Net Operating Income (NOI) $33,519
Capitalization Rate (CAP) 2.7%
Operating Expense Ratio (OER) 44%
Sales Price X Net Income 37%
35% Downpayment $430,850
Mortgage (@ 5%) $800,150
Annual Debt Service (mortgage payments) $55,844
Cash Flow $(-22,325)
Return on Investment (ROI) (-5%)

Are you currently looking to buy any type of income property, if so, have a look at these Buildings for Sale

March 20, 2019

530 Clearbrook Drive, Nepean, Ottawa

House Now SOLD! 530 Clearbrook Drive, Nepean, Ontario K2J 0H9

Priced at $254,900, this new listing will be live on Tuesday 26th March 2019. It's a stacked, 2 bedroom in the Chapman Mills neighbourhood in Barrhaven.

Watch the video tour for 530 Clearbrook

  • Minto Chai model at 1,072 sq. ft.
  • lower unit
  • 2 bedrooms
  • 1.5 bath
  • hardwood on the main level and wall to wall carpet in the basement
  • tankless hot water.

Map of 530 Clearbrook Drive

Map location of 530 Clearbrook Drive

See a Video Tour of the neighbourhood around 530 Clearbrook

Feb. 26, 2019

The Woe's of a Toronto Investor!

Toronto Investors choosing ottawa

Are you an Investor living in Toronto and can’t make money due to the High Prices for Real Estate in the GTA?

There are alternatives to Investing in Toronto, give Ottawa a look!

We have extremely stable employment due to the federal government being the largest single employer in the region. Plus our booming hi tech industry is another major driver of the economy resulting in very high personal incomes.

Plane, Train or Automoble, it's just 1-5 hours away

Ottawa is just 400 km east of Toronto. The average home price in Ottawa is just $430,000, which is much more affordable for Investment Properties. Ottawa is a good investment versus Toronto, with a higher ROI, or Return on Your Investment.

You can buy more houses in Ottawa

Investors can purchase almost 2 houses in Ottawa to rent out, versus just One in Toronto & the GTA. Economy of scale dilutes risk. (more properties and more renters, in case of vacancy or midnight moves)

Currently a home in Ottawa will cost you slightly over $430,000, while in Toronto it's almost $750,000. This is based on all house types.

Lot's of property types for Investors to pick

There are a bunch of options in Ottawa to suit any budget, from Condos, Townhomes, Single Family Homes or even Multi-Unit Residential buildings.

Ottawa as an Alternative to investing in GTA real estate.

If you are an Investor and think that Toronto real estate is far too expensive for investing, come and see why Ottawa is your best option.

You can call Patrick Walchuk at 613-788-2590 to chat about investing in Ottawa, or use the link below...

Please answer these questions in the form, cut-and-paste:

1. Do you prefer to invest in a condo or single family home.

2. Are you interested in investing in a multi unit residential property.

3. How soon are you prepared to visit Ottawa to look at investments.

4. Do you have a 35% down payment to obtain a positive cash flow, based on Ottawa’s lower prices.

5. Do you know the city of Ottawa A) Well B) a little C) not at all.

Feb. 3, 2019

Vanier 7 Unit Building V's Sandy Hill 20 Unit Property, Sold in January 2019

Below we compare the sale of a 20 unit building with a 7 unit building from different neighbourhood of Ottawa

Usually we take one recent sale of a property and show you the breakdown of all the financial information to see if it made sense, but this month we are giving you 2 properties that sold recently and comparing the numbers, especially the Cap Rate, the Cash Flow and the ROI, at the end of the day.

Below is the table outlining all of the financial information for the 7 Unit building that sold in the Vanier neighbourhood.

Vanier 7 Unit Property, Sold January 2019
Listed Price $1,699,900

Selling Price $1,688,500
Scheduled Rental Income (SRI) $129,600
Effective Rental Income (ERI) $125,712
Total Operating Expenses (TOE) $33,331
Net Operating Income (NOI) $92,383
Capitalization Rate (CAP) 5.5%
Operating Expense Ratio (OER) 26.5%
Sales Price X Net Income 18.3 X
35% Downpayment $590,975
Mortgage (@ 3.7%) $1,097,525
Annual Debt Service (mortgage payments) $76,596
Cash Flow $15,787
Return on Investment (ROI) 2.7%

Below you can compare the Vanier property with this 20 unit building from the Sandy Hill neighbourhood.

Sandy Hill 20 Unit Building, Sold January 2019
Listed Price $4,795,000

Selling Price $4,250,000
Scheduled Rental Income (SRI) $248,016
Effective Rental Income (ERI) $240,576
Total Operating Expenses (TOE) $77,360
Net Operating Income (NOI) $163,216
Capitalization Rate (CAP) 3.8%
Operating Expense Ratio (OER) 32.2%
Sales Price X Net Income 26 X
35% Downpayment $1,487,500
Mortgage (@ 5.0%) $2,762,500
Annual Debt Service (mortgage payments) $193,151
Cash Flow -$29,935
Return on Investment (ROI) -2.0%

These two neighbourhoods are right next to each other, separated by the Ottawa River. Sandy Hill can be considered a better neighbourhood and you can see that in the numbers from these two sales.

The Sandy Hill Buyer got a 3.8% Cap Rate, while the Vanier property saw a 5.5% Cap.

The Sandy Hill Building gave a negative Cash Flow of $29,935, while the Vanier one saw a positive cash flow of $15,787.

The ROI for the Sandy Hill sale was -2%, while the Vanier sales had an ROI of 2.7.

You might look at these two sales and wonder why the one buyer would be out of pocket for $1.5Million to have a negative cash flow, while the other guy spent $1 Million and makes money each month.

The Vanier area can be considered a higher risk area, while the Sandy Hill neighbourhood is considered a nicer area, so expect to pay more for a building dependent on where it is located.

Jan. 6, 2019

Sandy Hill Fourplex, sold Dec. 2018

Analyzing the financials on a Fourplex in Sandy Hill that sold in December 2018

This building sold for $1,495,000, $54,000 less than the listed price. There were 3 x 3 bedroom apartments and 1 x 4 bedroom apartment. All of the units in this building pay for their own Gas, Heat and Hydro.

This building was Fire Retrofit, had 4 parking spots, was renovated and was just blocks to the river and parks as well as the University of Ottawa. It sold in 83 days.

Sandy Hill Fourplex, Sold December 2018
Listed Price $1,549,000

Selling Price $1,495,000
Scheduled Rental Income (SRI) $118,670
Effective Rental Income (ERI) $115,110
Total Operating Expenses (TOE) $38,222
Net Operating Income (NOI) $76,888
Capitalization Rate (CAP) 5.1%
Operating Expense Ratio (OER) 33%
Sales Price X Net Income 19%
35% Downpayment $523,250
Mortgage (@ 3.7%) $971,750
Annual Debt Service (mortgage payments) $59,478
Cash Flow $17,410
Return on Investment (ROI) 3.3%

This income property actually sees a positive cash flow, 3.3 return on investment and a 5.1 Cap Rate. All of these numbers look great compared to other buildings we have analyzed recently, which had low or even negative numbers.

If you are considering buying an income property, have a look at some other Multi-Family's for sale

If you want to sell your building, let us give you a professional assessment of what it might be worth.

Dec. 23, 2018

2019 Predictions for Ottawa Market


2019 market predictions for Ottawa

Predictions for the Ottawa Real Estate Market in 2019

Here is where we try and predict where the real estate market will trend in 2019, we give you our opinion, followed by predictions from other trusted sources such as CMHC, Remax, CREA as well as Royal LePage. See where the market is right now by viewing this months Market Update here

Patrick’s Predictions for 2019: Strong sales and more listings

2018 should finish the year with unit sales up 3.2 %. The average sold price will be about $408,000 for an increase of 3.8 % over last year.

I see 2019 being similar to this year with units up about 4% and prices will increase 4% to 5%. I believe inventory levels will increase slightly over 2018, freeing up more homes for the pent up buying demand.

We are looking at some additional employment in the east end with Amazon adding about 600 albeit lower paying jobs. Ford has announced about 300 new jobs to the Kanata tech sector which are primarily going to be higher paying engineering positions.

Federal government employment looks solid for 2019 as we will be in an election year and the Liberals will not cut federal jobs in vote rich urban Ottawa. Also, the feds have shown no desire to cut reckless spending, tackle the deficit and national debt, so cutting federal employee positions is not on the table.

The wild card begins to show it’s face toward the end of 2019 or early 2020. Will the recession start then? Yes, it is coming. Trump has unnecessarily thrown gasoline onto an already hot USA economy. Reduced income (taxes) and record setting debt will bring an ugly end to their party. It will burn out and the ashes will leave lost jobs and less demand for Canadian products and resources.

With Canadian low interest rates, high debt, increasing deficits, we will have a reduced number of tools to fight the recession, as we did in 2009. Remember, that to was triggered by the American subprime mortgage fiasco. Otherwise Ottawa should see its traditional slow steady increase for 2019.

Canadian Real Estate Association Predictions

CREA Says that Home prices in Eastern Ontario, Quebec, New Brunswick, Nova Scotia and Prince Edward Island are expected to continue rising with market balance steadily becoming firmer.

ReMax & Royal LePage Predictions

In their annual home sale price reports, Royal LePage is forecasting the capital will see a 2.5 per cent increase to the median home sale prices while Re/Max is predicting a 4 per cent jump in sale prices.

Canadian Mortgage & Housing Corporation CMHC Predictions

Ottawa-Gatineau is one of the few markets in Canada in which housing resale volumes and prices have risen continuously over the past three years, the agency is predicting that trend to continue into 2020.

Resales are expected to end up between 17,500 and 19,200 units. Prices are anticipated to range between $417,000 and $433,000.

For 2020, CMHC is predicting resales in the range of 17,900 and 20,000 units. The resale price range for 2020 is expected to be between $431,000 and $453,000.

Citing Ottawa-Gatineau’s decades-low unemployment rate and its high average income bolstered by an abundance of federal government and tech workers, CMHC says the region’s residential real estate market is primed for healthy growth for the next few years.

“Ottawa has outperformed because of a healthy economy and the city’s relative affordability,” the report says. “Employment, especially full-time job creation, as well as earnings growth, have been robust since 2016 and have supported home ownership demand despite rising prices.

The agency also says a significant price gap between new and resold homes makes the region’s resale market attractive, especially to first-time buyers, with more affordable options such as row homes and condos experiencing the strongest sales growth.

But CMHC also warns that rising interest rates and government cutbacks in light of rising federal deficits could dampen its robust growth forecasts.

Dec. 7, 2018

West Centretown Triplex, sold Nov. 2018

This Triplex sold in November, was in a very good location and it will be owner-occupied.

This building sold pretty quick, and for $19,900 less than the asking price. It was fire retrofit and it had Two 1 bedrooms and One 1 bedroom apartment.

West CentretownTriplex, Sold November 2018
Listed Price $849,900

Selling Price $830,000
Scheduled Rental Income (SRI) $50,340
Effective Rental Income (ERI) $48,326
Total Operating Expenses (TOE) $18,166
Net Operating Income (NOI) $30,160
Capitalization Rate (CAP) 3.6%
Operating Expense Ratio (OER) 38%
Sales Price X Net Income 28%
35% Downpayment $291,550
Mortgage (@ 3.5%) $541,450
Annual Debt Service (mortgage payments) $32,784
Cash Flow $-2,624
Return on Investment (ROI) -1%

This property is a bit different from others we have looked at recently, as the buyer will be living in One of the apartments, usually we look at buildings that are purely as an income investment.

So, when we see that this building has a negative cash-flow as well as the ROI of -1%, it might not be as bad as it first appears. This smart buyer will be living in a very nice apartment, in a great neighbourhood and near the new LRT line.

If you are considering buying an income property, get in touch after browsing through all of the Multi-Family's we have for sale

If you want to sell your building, let us give you a professional assessment of what it might be worth.

Nov. 5, 2018

4 Vanier Income Properties, sold Oct. 2018

Usually we profile One multi-Family building that sold, this month we are taking a look at 4 properties, all from Vanier

The table below gives you all of the financial information from a couple of 6-Plex's as well as a 9 unit and a 10 unit Multi-Family building. We recently used these to do a CMA for a client, so we may as well show you how well these performed.

We always use a 35% downpayment, and for the examples below we are using a commercial mortgage rate of 5.6% as all were more that 5 apartments.

4 Income Properties sold Ovt 2018 in Vanier

From the examples above, you can see that only one building provided a positive cash-flow and two of the properties returned negative returns-on-investment.

Two buildings sold for under their asking price, one sold for full asking price and the final one sold for over $20,000 more than it was listed for. CAP Rates for all of them were above 4%.

Have a look at our listings of Multi-Family Properties