Friday, January 31, 2014

Commercial Real Estate in Vaughan

How do you know a region is doing well in terms of economics?

When the prices of commercial real estate start going up, you know the economy is booming.

In Toronto this is really evident in the satellite regions of the GTA, places like Vaughan, Richmond Hill, Markham, Woodbridge and Thornhill.

Lets take for example the Vaughan Mills Shopping Centre, located near Bass Pro Mills Drive. It is a booming shopping centre on what would traditionally be the outskirts of Toronto, but because of the exploding population growth in Vaughan - lots of suburbs and apartment buildings - the end result has become a strong need for places close to home where people can go shopping and buy their amenities.

The Vaughan Mills Shopping Centre however is just one example of this phenomenon - and I should point out that historically the location was more well known for the fishing and hunting store Bass Pro (hence the street name), but now the place is a haven for shoppers looking for high fashion, shoes and generic shopping mall products.

Another example is companies like Omni Hearing, a hearing clinic located in central Vaughan, a small company which is doing so well financially that they are now expanding to a new location in Oakville. Omni Hearing offers excellent service, a broad selection of hearing aid styles / hearing products, and free hearing tests. It is so small that when you look at a photo of the location you realize just how easy it is to make a financially successful business in Vaughan.

What this means is that when you build a business in a place with a booming economy, as long as you provide great service / fair prices, you are guaranteed to succeed financially.

So what if I wanted to open a company in Vaughan, either a new business or expanding an existing business?

Well then I will need to find a good location - or depending on the niche market, a place I can afford and then do a good job advertising it.

In which case the website I like browsing is It isn't just for Vaughan, it is commercial real estate for all of Canada. So if you are looking to buy commercial real estate, that is the website I recommend.

When browsing Vaughan's commercial real estate on ICX you realize something... there isn't a lot of places actually available. Why? Because the businesses in Vaughan don't seem to suffer from bad economics very often. The few companies that don't survive (and the land ends up being sold) simply were not competitive, had a bad niche market, the manager probably mismanaged the business, etc.

You can also browse leases instead of sales.

Just for fun I am also browsing other locations across Ontario to see what is available. One of the things I enjoy doing is browsing the listings for small towns that have a really bad economy - sometimes they have very few places on the market, and sometimes they have a LOT - but the prices are super cheap because nobody is buying. (A bit like browsing commercial real estate in Detroit.)

For example if you browse the commercial real estate of Windsor (right across the river from Detroit) what you find is that even larger buildings are for sale - and while the prices are sometimes still in the millions, they are comparatively cheap since the economy in Windsor-Detroit is so weak.

Thursday, January 16, 2014

Canadian real estate bubble grows 10%

The Canadian real estate bubble continues to grow as the average price of a Canadian home increased 10.4% to $389,119 (a new record high) in December 2013, compared to the same month in 2012.

The Canadian Real Estate Association (CREA) released data Wednesday showing that a total of 457,893 homes changed hands in Canada last year, an increase of about 0.8% from 2012's sales levels.

"Absent further mortgage rule changes, sales in 2014 may surpass the annual total for 2013 if demand holds steady near current levels as strengthening economic and better job growth offset the impact of further expected marginal mortgage interest rate increases," says CREA's chief economist Gregory Klump.

As has been the case for years now, CREA says the large jump in Canadian real estate prices was largely due to what was happening in Canada's most active and expensive markets - namely Vancouver and Toronto.

Canadian Real Estate Bubble to Burst?

Sales activity in December 2012 in Toronto and Vancouver was abnormally low, which dropped the national average during that time period, a sign that the growing bubble is ready to burst.

"Removing Greater Vancouver and Greater Toronto from national average price calculations cuts the year-over-year increase to 4.6 per cent," CREA said.

CREA says the average price can be misleading, as it can be too easily influenced by individual factors which drive prices up - factors like too much credit, high demand, etc.

The realtor group says its MLS Home Price Index "provides a better gauge of price trends because it is not affected by changes in the mix of sales activity the way that average price is."

That index shows home prices rose 4.31% over the past 12 months. Gains were seen in all housing types - including condos which is expected to cool sharply in 2014 - 2015.

The index was led by an 8.7% gain in Calgary and a 6.3 per cent gain in Toronto.

Vancouver's market index posted a second straight increase of 2.13% after declines for much of the time between late 2012 and late 2013.

The thing is, the higher those percentages go the bigger the bubble is then the bigger the problems will be when the prices crash.

Worried Bankers and Economists

Economists and policy-makers have been scrutinizing the Canadian housing market for indications of weakness and warning signs of a possible crash - something that is expected to happen sometime in the next two years.

"If you run a bank, you should be worried about it," says Ed Clark, the outspoken CEO of the Toronto-Dominion Bank.

Monday, January 13, 2014

10 Bizarre Condo Buildings

My Quest for a Condo goes on... Not sure if I want one of these condos however. Some of them are pretty strange and outright bizarre.

Real Estate Bargains, How to find them

Real estate bargains exist in the marketplace for people with a little expertise and motivation to go after them. These are actual real estate steals in the market place today with low asking prices and enormous upside if a knowledgeable buyer showed up. Unfortunately, if you do not have a grasp or a good education in how to take advantage of real estate bargains, you may be out of luck.

Fortunately, nobody said it had to be that way. Everyday, people discover the insider knowledge that pioneers in real estate purchases have found and are willing to share. Real entrepreneurs have helped countless people discover the wealth potential they have with a few easy to learn insights that anybody can pick up. The Internet has only made the process easier, with sites like Dean Graziosi Motor Millions website.

You may be looking at the real estate market, and you’re thinking, yeah, the insiders bought up the bargains already and there’s nothing left for you. The truth might knock you over. With the right techniques, you can tackle the real estate market regardless of how strong or how depressed it is and with little or no money down too. The small amount of knowledge necessary is easy for anybody to pick up, but it’s impossible to find out unless you have a seasoned real estate entrepreneur looking over your shoulder.

Don’t worry. Once you pick up on this easy-to-learn method of buying real estate, you are empowered. You don’t need a guru looking over your shoulder ever again. Knowledge is power. You will know how to start your search, where to find financing and how to put it all together with little or no money down. It’s taking the first step that’s always the hardest, but it’s really the smallest step of the process.

Real estate has been a dependable and valuable investment since the dawn of civilization. For most of that time, taking advantage of the real estate deals was the territory of a few savvy investors with an angle. Today, anybody can start the process of investing in real estate with a visit to a website or a simple phone call. Real estate can be the road to riches, untold wealth and great fun along the way, but you must have enough knowledge to get started. Like any business, you want to get off on the right foot. That’s why gaining the knowledge of an entrepreneurial expert is the difference between falling flat on your face or soaring like an eagle.

If you have ever wondered why everyone else makes money hand over fist while you're left out in the cold, listen to this: The reason is knowledge. Knowledge is the great enabler. If you know how to recognize real estate deals, distinguish the financing options available, identify with and be aware of the tools of negotiation, you can start down the road to wealth and happiness too.

Real Estate holdings have the potential to create an advantage in your life that you have never experienced before. The expertise offered to you is a valuable commodity that is difficult to put a price on. With the real estate market working for you, all the wealth you can gain will feel right because knowledge enfranchises you.

Thursday, January 02, 2014

Popular Posts