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06/12/2019
This week I discuss how we determine the value of properties. In the current market, we’re seeing lots of different prices out there. Some are fair, some are undervalued and others are way over the to...
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This week I discuss how we determine the value of properties. In the current market, we’re seeing lots of different prices out there. Some are fair, some are undervalued and others are way over the top. Due to the current hype surrounding our market, some sellers are testing how far they can push it. While it is true that fair market value is determined based on the mutual price a buyer is willing to pay and a seller is willing to accept, here’s how my team values different property types. When looking at a residential house, we focus on comparables sold in the last 6-12 months. We look for properties of the same type, with similar characteristics, located in the same neighbourhood. We base fair market value on the recently sold comparables, while also looking at active comparables to see where we will compare in the current market. When determining the value of a condo, we will generally use a price per square foot analysis. Typically* in condo towers, most units are built with similar quality and design. As a result, the biggest differences will generally be size, number of bedrooms/bathrooms, and whether or not there’s a garage or locker. To determine fair market value, we identify similar units and compare the price per square foot. When analyzing revenue properties we use 2 methods. When looking at smaller revenue properties, less than 6 units, we typically look at sold comparables and run a multiple analysis. The comparables method is the same as the residential house. Determining the multiple for an area is done by taking recent similar sold properties and dividing the sale price by the net revenue. The result of that calculation is your multiple. You then multiply the net revenue of the property you are valuing by the multiple and the result is the estimated value. E.g.: Comparables had a sale price of $600,000 and a net revenue of $30,000. Our multiple would be 20. We would then multiply our net revenue by 20 to determine the estimated value. It is also important to consider future potential. We’ve seen some properties sell for very high multiples based on current rents. However the future potential rents were exponentially higher thus making the deal exciting. A seller can’t expect to get paid for all of the upside but there will be an adjustment compared to the standard multiple in the are. The multiple method and the cap rate method are the same thing. They’re just expressed inversely. A multiple of 20 is the same as a cap rate of 5%. One compares sale price divided by net revenue and the other compares net revenue divided by sale price. Clients sometimes get stuck on one vs the other but they’re looking at the same comparison. What else do YOU look at when determining fair market value?
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29/11/2019
This week in part 2 of my segment on legal warranty, I discuss what a sale without legal warranty represents. A lot of buyers ask me why some sellers choose to sell without legal warranty. There are c...
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This week in part 2 of my segment on legal warranty, I discuss what a sale without legal warranty represents. A lot of buyers ask me why some sellers choose to sell without legal warranty. There are certain cases that do not worry me when I see “sold without legal warranty”, while others do raise concern. A sale without legal warranty means that you have no recourse against the seller for hidden defects. This means that you are purchasing the property as is. It is imperative to do a thorough inspection on the property in order to be as informed as possible on the property. Examples of cases that do not raise concern are: - Elderly people who might be living with dementia or are struggling with their memory. - Estate sales where the person managing the sale did not live in the property - Some investment properties because the landlord did not occupy the property and it is common for tenants not to disclose all the issues to the landlord. - Possibly someone moving away from the country because they will not be able to deal with a court case while in another country… Though I wouldn’t be very concerned with the above examples, they would justify a discount on the sale price compared to a one with legal warranty. If ever the sellers have occupied the property for a number of years and are selling without legal warranty, I would be wary. You have to ask why someone has opted for a sale without legal warranty if they’ve occupied the property and are fully coherent. Is there anything they’re trying to hide or avoid? Again, a thorough inspection is your best tool in gathering information. Be sure to contract a good inspector in order to protect you and your future investment. It is important to note that although you are not protected from hidden defects, you are still protected from fraud. If the seller outright lied or made false declarations, then you would have a case of fraud against the seller. Again, I recommend you contact a lawyer in order to get informed about your rights and the best way to proceed. Thank you for watching! Comment below your questions and I’d be happy to answer!
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22/11/2019
This week I discuss legal warranty and what it represents. A lot of buyers ask me what legal warranty covers and whether or not it’s a guarantee. It it not a guarantee but rather a warranty that prote...
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This week I discuss legal warranty and what it represents. A lot of buyers ask me what legal warranty covers and whether or not it’s a guarantee. It it not a guarantee but rather a warranty that protects the buyer from hidden defects of the property. If you were to find a problem that was not disclosed to you nor mentioned by your inspector, then you have 1 year from the time of discovery to pursue the sellers. It is important to note that you have to prove that the defect was present at the time of sale. It is understood that as more time passes, it becomes more difficult to prove that the problem was present at the time of the sale. Keep in mind that if at the time of purchase your inspector suggests you look further into something and you don’t, legal warranty will not protect you on that defect. By not being diligent and looking further into it, legal warranty is negated. Should you find a defect that was present at the time of the purchase, the first thing you should do is contact a lawyer! They will be able to best explain your rights and guide you. The next step would be to contact the sellers and give them an opportunity to remediate the problem at their cost before going down a legal path. If the sellers deny responsibility and are not willing to repair the issue, you will likely need to go to court. In any case, I highly recommend you contact a lawyer before proceeding! Thank you for watching the first part of my segment on legal warranty. Tune in next week to hear about sales without legal warranty. Comment below your questions and comments!
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09/11/2019
In this weeks video, I discuss the components of a strong offer. In the current Montreal real estate market, the conditions of your offer will make all the difference. Here are some of the most import...
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In this weeks video, I discuss the components of a strong offer. In the current Montreal real estate market, the conditions of your offer will make all the difference. Here are some of the most important components: Price! It’s the first thing every seller looks at. It plays a large role in the decision but isn’t always the most important. Financing/pre-approval: Are you pre-approved? Do you have a financing condition? What kind of down payment are you committing to? How long do you need to get a final mortgage approval? Timing: the dates for purchase and occupancy are usually the most rigid constraint. We can’t always control when and where we are going, but everything else is usually negotiable. Due diligence: how long we ask for as a due diligence period to inspect and review documents plays a role as well. Sellers don’t want to “lock up” the home for too long and risk other buyers losing interest. Inclusions/exclusions: are there any extras that you’re trying to negotiate? Are you asking the sellers to remove some bulky items that they had included in the sale? These factors will play a role in the negotiation. General conditions: do you have any special requests? Do you have to sell your home in order to purchase this one? Are you looking to add an extension and waiting for confirmation from the city? These are all factors that impact the strength of an offer. Reach out to my team to find out how we prepare stronger offers while always protecting our clients! Thanks for watching!
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04/11/2019
This week I discuss land transfer tax. Whenever you purchase real estate in Quebec you receive a bill from your municipality commonly known as welcome tax.
Welcome tax is calculated based on the hig...
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This week I discuss land transfer tax. Whenever you purchase real estate in Quebec you receive a bill from your municipality commonly known as welcome tax. Welcome tax is calculated based on the higher of the purchase price or city evaluation. You can expect to receive it 30-60 days after your purchase date. It’s calculated based on a sliding scale. As the price or evaluation amount increases the welcome tax increases as well. Here’s a table of how it’s calculated in Montreal. •0.5% on the first $ 50,000 •1.0% on the portion of $ 50,001 to $ 250,000 •1.5% on the tranche of $ 250,001 to $ 500,000 •2% on the tranche of $ 500,001 to $ 1,000,000 •2.5% on the portion exceeding $ 1,000,001 Off the Island of Montreal, the tax rate maxes out at 1.5% Comment below if you were surprised when you received this (not so) little bill in the mail.
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28/10/2019
This week I discuss which floor to purchase a residential condo on. As you may have noticed in previous videos, the answer truly depends on your needs.
If you’re drawn to natural light, you’re likel...
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This week I discuss which floor to purchase a residential condo on. As you may have noticed in previous videos, the answer truly depends on your needs. If you’re drawn to natural light, you’re likely going to want a unit on a higher floor. If you’re looking for more outdoor space, a ground floor unit with a backyard or patio would make more sense for you. If you’re looking to invest, a mid-range floor might be best. Be sure to avoid any units that look directly into another building or worse, a wall. The floor is just one aspect to consider when purchasing a unit. Comment below to find out what else you should consider before buying!
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18/10/2019
This week I discuss the most common mistakes I see when showing residential homes. If you’re selling your home, here are a few things to remember!
First impressions play a big role when visiting hom...
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This week I discuss the most common mistakes I see when showing residential homes. If you’re selling your home, here are a few things to remember! First impressions play a big role when visiting homes. Make sure the entrance way is clear and inviting, as it’s the first thing people see when they pull up. Avoid any strong smells in your home. Some buyers have allergies, others might simply be sensitive. I suggest using a neutral air freshener like fresh linen to benefit from that nice smell without being overwhelming. Clutter is another big problem. Be sure to keep your home as organized as possible! The home should be easy to get around during visits (no toys or additional items should be in the way). While decluttering, I would also suggest depersonalizing the home as much as possible. The less “noise” there is for the buyers to be distracted, the more they can focus on envisioning themselves living in this Home. Lastly, make sure the home is available to be shown! We understand that there are certain restrictions but try and ensure a fair viewing schedule to allow for the greatest amount of traffic. Thanks for watching this weeks video! Comment below what your biggest pet peeve is when showing/visiting a home!
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07/10/2019
This week I discuss one of the biggest mistakes I see when visiting properties. You wouldn’t put lipstick on a pig, nor should you put it on your property. When deciding what or how much to renovate, ...
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This week I discuss one of the biggest mistakes I see when visiting properties. You wouldn’t put lipstick on a pig, nor should you put it on your property. When deciding what or how much to renovate, look at what you can do properly! It’s always better to do less renovations, if it means those will actually be done right. Buyers can tell when you cut corners and inspectors are great at finding patched up defects. Whenever we visit a property that looks renovated, I always discuss the quality of the work with my clients. More often than not, we can immediately see through poor quality work. If you're a buyer, be sure to look closely at the work that's been done. If you're a seller, take the time to look at your budget before deciding where to spend it. Sometimes, less truly is more!
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29/09/2019
This week I discuss the difference between divided and undivided co-ownership.
I receive a lot of questions on the subject and decided it was time to break down the differences.
Divided co-ownership...
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This week I discuss the difference between divided and undivided co-ownership. I receive a lot of questions on the subject and decided it was time to break down the differences. Divided co-ownership is very straight forward. You can finance the purchase with as little as 5% down and work with any bank. The unit has its own cadastre (lot number), which means it has its own tax accounts. You can usually rent divided condos with little restrictions, other than a minimum rental period noted in the building regulations. Undivided co-ownership is a bit different. Think of it as buying shares of a company, with the company being the building. You are purchasing the exclusive right of use of a percentage of the building, but you don't actually own your condo unit. In undivided co-ownerships, there is one tax account for the entire building and you are responsible for your share. You are required to put 20% down as a minimum and the entire building can only be financed by 1 bank. Note that the only 2 banks that finance undivided condos are Desjardins and the National Bank of Canada. Lastly, undivided condos generally have rental restrictions as there are regulations on repossessing should you wish to move in. Both models come with their pros and cons. I’d be happy to discuss which model would make more sense for you!
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22/09/2019
In this weeks video I discuss the current Montreal real estate market and my outlook on where it's heading.
My advice would be to buy as much real estate as possible in the current Montreal market! ...
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In this weeks video I discuss the current Montreal real estate market and my outlook on where it's heading. My advice would be to buy as much real estate as possible in the current Montreal market! It’s been on fire and is showing no signs of slowing down. In the last few years, we’ve seen a lot of appreciation. With interest rates remaining low and a few key economic indicators in our favour, I expect the appreciation to remain solid. Though less aggressive than it's been, it should still above the historic average of 3%. Reach out if you want to discuss where you see the market going in the next few years!
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15/09/2019
This week I tackle the question, should I purchase a house or a condo? This question comes up all of the time. The answer is, it depends. It depends on what the end goal is for the property. Will you...
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This week I tackle the question, should I purchase a house or a condo? This question comes up all of the time. The answer is, it depends. It depends on what the end goal is for the property. Will you be occupying the property? Is it an investment? Do you need to be close to downtown? How many people will be occupying the property? There is no 1 answer, the most important thing to do is analyze your needs and purchase accordingly!
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07/09/2019
This week I discuss credit cards! Credit cards are adored by some, loathed by others, but in reality, they're just another tool that you can use to your advantage.
Like with anything in this world, ...
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This week I discuss credit cards! Credit cards are adored by some, loathed by others, but in reality, they're just another tool that you can use to your advantage. Like with anything in this world, you need to take responsibility for your actions. Having a credit card is not a reason to go and spend beyond your means. Your credit limit is not a suggestion or an amount you’re aiming to achieve... Credit cards are a system that allows us to pay for things that we purchase in our day to day lives, while earning points/rewards for them. The rewards can usually be turned into cash back, travel, or goods. The fact that you accumulate these points does not mean you should spend more to get more points! That said, if you need to spend the money, you should benefit from the rewards that credit cards offer. Most credit cards that you pay an annual fee for, come with several additional benefits. Insurance on car rentals/travel. Baggage delay insurance that ends up being used regularly in this day and age. Lost or stolen item insurance that typically insures items for 90 days from the time of purchase with no questions asked. These benefits will usually allow you to drop some additional insurance you currently purchase on purchases. The credit card system punishes you for carrying more than a 50% balance on your limit. This tells the system that you’re using a lot of your available credit and are thus going through some difficulty and may be less liquid. Keep this in mind when spending. The system also punishes you for making several inquiries in a short period of time. 1-2 requests is fine, but avoid making more than that in a 3 month period. My last tip about credit is to always get credit issued to you when you don't need it. If ever you’re offered a line of credit or an extension of the limit, grab it. Again, don’t use credit unnecessarily. If ever you’re in a crunch and require the extra credit, banks will likely refuse you when you need it because you are seen as too risky. When you’re not in need, take advantage of those credit offerings! These are my top tips on credit cards!
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31/08/2019
This week I discuss simple tips to protect your home while you’re away for an extended period of time. If no one will be home for more than a couple of days, it’s always a good idea to take a few prec...
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This week I discuss simple tips to protect your home while you’re away for an extended period of time. If no one will be home for more than a couple of days, it’s always a good idea to take a few precautionary measures. First, turn off the main water valve. One of the most common issues I’ve heard of is leaks. Even a seemingly small amount of water can turn into a big problem. Second, make sure someone is passing by to collect mail and publicity that could accumulate outside the home Third, make sure someone passes by once a week to verify the property. These are a just a couple of things to remember when leaving your home for an extended period of time. What do you do before going away? Comment below!
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23/08/2019
This week I discuss the age old question, should I buy or should I rent? The answer depends on you. Are you ready to buy? Do you have stable income? Have you been saving? Are you planning on living in...
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This week I discuss the age old question, should I buy or should I rent? The answer depends on you. Are you ready to buy? Do you have stable income? Have you been saving? Are you planning on living in the same place for at least the next 3-5 years? Are you making crazy returns on your investment portfolio and don’t want to move the money? The timing of buying varies from person to person. There is no set time. That being said, if you have some savings, stable income and good credit, you should definitely look into buying. There is no better way to create wealth than real estate.
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16/08/2019
This week I discuss the Certificate of Location. What is it? Why is it necessary?
A certificate of location is an important document in your real estate transaction. It is a document that tells us t...
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This week I discuss the Certificate of Location. What is it? Why is it necessary? A certificate of location is an important document in your real estate transaction. It is a document that tells us the lot delimitations, any servitude’s on the property, flood zone risks, as well as any possible encroachments. It is important to review this document in order to know important factors relating to your property. Comment below any additional questions you have!
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09/08/2019
This week I discuss the elephant in the room. Real estate is the largest transaction most ever do in their life. It is completely normal to feel overwhelmed at times during a transaction. It’s normal ...
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This week I discuss the elephant in the room. Real estate is the largest transaction most ever do in their life. It is completely normal to feel overwhelmed at times during a transaction. It’s normal to second guess yourself after putting in an offer on a property that you saw 4 hours ago. One of the benefits of working with a broker is that they help you keep a clear mind throughout the entire process. With someone walking through it with you, it's a bit easier to remember why you started your search, what you were originally looking for and what may or may not be the right property for you. Though it's completely normal to feel overwhelmed, don't let it stop you from making a move on your dream home.
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02/08/2019
This week I discuss what happens between fulfilling conditions and going to the notary. This period can sometimes feel like a limbo stage in the transaction. Though there’s a lot of excitement as the ...
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This week I discuss what happens between fulfilling conditions and going to the notary. This period can sometimes feel like a limbo stage in the transaction. Though there’s a lot of excitement as the notary date approaches, there’s also a few things to keep in mind… 1. You will need insurance for the property you’re about to purchase. In order to get the best coverage and price, it’s best to shop around. 2. You will likely need to meet with your bank to finalize the mortgage papers, prior to the closing. 3. You will have to advise all your service providers of your address change and give them 1-2 weeks notice in order to avoid delays on the installation. 4. You will have 2 notary appointments to attend. The first one is to sign your mortgage act and review the sale documents. The second one will generally be 2-5 days after the first meeting. Both the sellers and the buyers will be present as this is when you will sign the actual sale (!) If you have any questions, be sure to comment below!
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26/07/2019
This week I discuss the best time to list your home. There’s a lot of discussion as to when the best time to list is. I believe it generally breaks down into 2 categories - residential vs investment p...
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This week I discuss the best time to list your home. There’s a lot of discussion as to when the best time to list is. I believe it generally breaks down into 2 categories - residential vs investment properties. When listing a residential home, the best time to list in Montreal is in the Winter/Spring. As of the 3rd week in January, the Montreal market is on fire. People are back from vacation and thinking of where they’re going to spend their next summer. Although in the recent market there hasn’t been a bad time to sell, the historic trend is Winter/Spring. When listing investment properties, the best time to list is when they’re fully rented and bringing in appropriate rents. To further discuss, don’t hesitate to reach out!
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19/07/2019
This week I discuss a powerful tool that allows me to analyze different deals. When looking at investment real estate, it all comes down to the numbers. If the numbers make sense, we buy the deal. If ...
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This week I discuss a powerful tool that allows me to analyze different deals. When looking at investment real estate, it all comes down to the numbers. If the numbers make sense, we buy the deal. If the numbers don’t work, we pass on it. The beauty of the calculator paired with an experienced eye is that we can effectively remove the emotional side of the purchase. That said, the calculator is only as good as the assumptions the user makes! To hear more about analyzing investment deals, feel free to reach out!
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12/07/2019
This week I discuss multiple offer situations and whether or not one should accept second position. In the current market, it’s very common to see multiple offers being placed on the same home. Althou...
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This week I discuss multiple offer situations and whether or not one should accept second position. In the current market, it’s very common to see multiple offers being placed on the same home. Although we always try to be the winning bid, it’s not always the case. In those scenarios, it is quite common to see sellers offer second or third position to the next best offers. This means that if the first offer falls through due to the buyers being dissatisfied with their inspection, review of documents, or simply failing to get their financing approved, the sellers automatically go to the offer that’s in second position. By accepting second position, one can avoid going through another bidding war and potentially being outbid once again. For more information on the topic, be sure to watch the video!
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05/07/2019
This week, I discuss handling an offer on your property or hopefully multiple offers! In my experience, when a home is listed and marketed properly, you will have the most exposure in the first 2 week...
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This week, I discuss handling an offer on your property or hopefully multiple offers! In my experience, when a home is listed and marketed properly, you will have the most exposure in the first 2 weeks. This means that the largest buzz and emotional hype will be during that period. This happens because the initial buyers don’t want to miss out on this fantastic opportunity! I know that everyone always wants to maximize their return, but we have to be conscious of fair market value. There is a strong negative correlation between days on market and sale price. The longer the property is on the market the lower the price. To avoid being caught in these scenarios, I strongly suggest you give the first few offers the attention they deserve.
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28/06/2019
This week I discuss insurance and the importance of having the right home insurance. Regardless of whether you’re an owner or a tenant, insurance is imperative! Insurance is one of the things in life ...
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This week I discuss insurance and the importance of having the right home insurance. Regardless of whether you’re an owner or a tenant, insurance is imperative! Insurance is one of the things in life that you should not skimp on. When you actually need it, you want to make sure you’re covered.
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21/06/2019
This week, we're discussing how to increase your home's value. Though some renovations or additions may feel like a must to you, others may lead to a greater return on investment. Be sure to watch to ...
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This week, we're discussing how to increase your home's value. Though some renovations or additions may feel like a must to you, others may lead to a greater return on investment. Be sure to watch to learn more about our top 3 tips! What are your tips? Feel free to reach out or comment below your thoughts.
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14/06/2019
This week, we decided to do something special. With Father's Day happening this weekend, I invited my dad and first mentor for a quick Q & A. We discussed his experience in the Real Estate world, as w...
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This week, we decided to do something special. With Father's Day happening this weekend, I invited my dad and first mentor for a quick Q & A. We discussed his experience in the Real Estate world, as well as his perception of the industry. To all the Dads out there, we hope you have a wonderful weekend!
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