Comparing 2 Sandy Hill Income Properties that Sold in Aug. 2019
Both of the properties in this months video are from the same neighbourhood and both of them had 4 apartments in them. You can see that some of the numbers are very different.
The first building shows a Cap Rate of 2.6% while the other has a 4% Cap. The cash flow on the first is negative 10,000 per year, while the second property has a positive cash flow of $6000. This is based on both buyers putting down a 35% downpayment.
920 Longfields Drive in Barrhaven is coming to Ottawa MLS on Friday 2nd August 2019.
MLS # 1161865 will be priced at $549,900 and it's a very well cared for 4 bedroom family house, it is the Richcraft Vista model build in 2010 approximately. Pics getting done later this week, More photos for 920 Longfields.
Plenty of natural light in this 4 bedroom family home. Richcraft Vista model 2,165 sq. ft according to builder plans. Upgraded wood oak staircase.
The main level features maple hardwood floors in living, dining, and family rooms & porcelain tile in the kitchen & baths. Pot lights throughout main floor. Bright kitchen with lots of natural light and upgraded cabinets. Granite on both the counter tops and island.
Walk out to the back yard from the eating area. Keep an eye on the kids from the kitchen overlooking the family room which features a gas fireplace and soaring 20 ceiling. There's a convenient powder room and laundry room on the main floor.
The 2nd floor has 4 generous size bedrooms and full 4 piece bath. The master has a walk-in closet & 4 piece ensuite with separate shower.
The large corner lot provides added privacy as it's not surrounded by neighbours homes + it is fully fenced. Basement with high ceilings.
Roof 2018 by Saunderson. 48 hour irrevocable on offers.
Income Properties with Permits issued after April 2017 will see huge reduction in Taxes for 35 years.
A new bill has just been passed by the Ontario Government concerning properties with 2 or more units in them, where the permit was issued after April 2017.
These building owners are about to get a break on their property taxes, for 35 years! So, if you own an income property and the permit was issued after April 2017, you will have a nice surprise coming your way, for 35 years. And, an even bigger bonus if you just bought a building like this! (the old owner might be miffed)
You can hear Patrick Walchuk discussing this news at the end of this months movie update, go to 1 minute 43 seconds to hear his take.
As an example, when we do the financials for any property we usually find out that the property will produce a small cash flow of a few thousand dollars per year. If you are in this situation, your cash flow could double, triple, or even more.
The taxes on these types of properties could be 50% less as we have just seen this happen in an 8 unit building.
The Ontario Government are doing this to encourage people to build more Multi-Unit Residential properties.
MULTI-UNIT RESIDENTIAL PROPERTY CLASS
Below is the transcript from the larger document, outlining the changes to the Multi-Unit property class, with permits issued after April 20th, 2017.
This news is just out and we are still trying to get more details about it and we will update this page as we find out more. We are sure there will be some issues as we progress.
What about that person who built a 20 unit building 1 week before this new law. They could be paying $28,000 per year in taxes, while the exact same building next door is only paying half that amount, for 35 years. Big Big savings if you work this right.
Will we see a bunch of people jump on this opportunity, let's wait and see.
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
Scheduled Rental Income (SRI)
Effective Rental Income (ERI)
Total Operating Expenses (TOE)
Net Operating Income (NOI)
Capitalization Rate (CAP)
Operating Expense Ratio (OER)
Sales Price X Net Income
Mortgage (@ 5% Rate)
Annual Debt Service (mortgage payments)
Return on Investment (ROI)
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%
1719 Silver Bark Ave. in the Sunridge Neighbourghood in Orleans. Price is $539,900
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 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