(1) Northern Property Real Estate Investment Trust (TSE:NPR.UN.CA) — 5.3% YIELD
Northern Property Real Estate Investment Trust is an unincorporated open-ended real estate investment trust that manages and owns a portfolio of residential and commercial income producing properties. NorSerCo’s operates execusuite hotel properties and real estate-related services. The Trust’s residential properties are comprised of three components: apartments, townhomes and single family rental units; execusuite apartment rental units; and seniors’ properties. The Trust’s commercial properties are comprised of office, industrial and retail properties in areas where it has residential operations. As of Dec 31 2010, Co. owned 8,419 residential units and 903,352 sq. ft. of commercial space.
Limited supply and high prices in key markets is encouraging landlords to embrace the role of small property developer. But are the big profits worth the hard work?
An increasing number of investors are turning their attention to property development in a bid to maximize on the demand for single-family homes.
Speaking to CREW, investor Sahil Jaggi says buying an old building and undertaking a complete rehab is the only way he can get into desirable neighbourhoods at a good price, and opportunity to make a lot of cash.
While admitting that the work is a full-time job with the risk of unexpected costs popping up, Jaggi says joint-ventures are the best way to get into such projects.
“If you have a good plan, good location and a good project lined up you will always find investors,” he says.
“If 20 to 30 per cent of the area is already developed, you know it’s headed towards something and there’s room for growth.”
Paul Shikanai, owner of Regency Property Management and Real Estate in Regina, advises investors to be financially creative when undertaking such projects and do not undertake any unnecessary costs.
“I’ve seen people put a lot of money into it and it’s hard to get that return,” he says. “You don’t need to put in a granite countertop. You don’t need a beautiful tile on the floor.”
Daily Market Update
Written by Steve Randall
At last some data on foreign investors… Calgary condo sales boom… And students hit by rentals shortage…
Chinese connection to Vancouver housing
A real estate company in Vancouver has provided a snapshot that much of the available data does not. Macdonald Realty says that more than a third of the buyers of single-family detached homes that it sold last year have a connection to mainland China. The company says that those purchasers paid more money for their homes too, paying over $2 million compared to the $1.4m average. Dan Scarrow from the company says that despite the large volumes of buyers and cash from China, he has not seen much evidence of the controversial practice of overseas investors buying, but not residing here. There are many realtors who are already, or are planning to, actively target overseas investors, especially the Chinese. Some have opened offices in China or undertake marketing initiatives to attract buyers from the country. Read the full story.
Condo resales booming in Calgary
Condos are king in Calgary with sales up 20 per cent year over year and no sign of that abating. Linda Lam of Sotherby’s International says that people like the condo lifestyle; the convenience, location, security and amenities. She says that the city is popular and the relative affordability of condos in Calgary compared to some other markets is driving demand. Ann-Marie Lurie CREB says that with the rental market being so tight many are realising that they can afford to buy. Resales and sales of new condos and townhouse condos are trending up and construction in the sector is working hard to keep pace. Read the full story.
Students seek housing solutions
They’re about to head back to school and for many first year university students the accommodation choice is easy; the dorms. For those heading back to college though they are often seeking a bit of independence and that is presenting challenges in many areas. The rental markets are tight in a lot of our major cities and many students are finding that they can’t find anywhere affordable to live. For those who rented last year, the leases may be ending and not being renewed at the same rates. An option for some families is for mom and dad to buy an investment property. Their kids get to use it while studying and in three or four years’ time they can sell or put it on the rental market.Read the full story.
There’s a lot of pressure to get started in those building projects and sometimes things get overlooked. On one Toronto street corner pedestrians have been wondering where the crossing signal and timer has gone. It’s still there actually, but obscured by a construction hoarding for a new condo development. Read the full story.
***Do you want to learn more about small property development? The September issue of Canadian Real Estate Wealth features a comprehensive step-by-step guide of what is involved in small property development. Investors reveal the secrets to successfully undertaking such projects, while city planners and lawyers offer exclusive advice on how to avoid unnecessary costs and headaches. The magazine will be on newsstands this week or subscribehere to avail of a special deal today.