Ottawa Real Estate News

Tent cities in Florida

2009-05-07T10:19:00.001-07:00

The people finding themselves living in tents never thought they would be homeless. They are functional, capable people that are willing to work. The problem is there is no work.

Some people in the community are starting to counter the development of tent cities and are demonizing the people that are unfortunate enough to need a tent city.

Quote from http://www.stoptentcity.com
"The Diocese allows drug addicts, alcoholics and persons with mental illness into their Tent City. They have stated to the media that a violent felony or sex offense conviction does not necessarily preclude admission to their Tent City.

Why is it that to work for the Diocese you must submit to a thorough national database background check, but as a resident of Tent City you only need a simple FDLE internet check to get in? What if an out of state pedophile is off the grid and gives a false ID?

A very high percentage of those in Pinellas Tent City have either refused or failed drug and alcohol treatment, or have refused mental health care. They are chronically homeless, and have made a conscious choice to be homeless. Frank Murphy himself has admitted that half of those in Pinellas Tent City end back up on the street. We do not want untreatable addicts, alcoholics, and mentally ill people brought into our community. As a local homeless services minister recently told us, they WILL wander into our neighborhoods and loiter at our local businesses. Will our children be safe to freely ride their bikes and play in our neighborhoods as they have done for many years? Will our elderly be safe? Will we be able to walk our dogs in the evenings? Will our neighborhood events be clouded with fear for our own safety?

Where will these people go if they are kicked out of the facility or are denied entry? The Church is not going to put them on a bus and ship them back to where they came from, or take them to another facility. What about when the facility is full? Where will those that have been turned away sleep that night or loiter during the day?"

The economic downturn is not over, it is going to get worse. Here's a quote from USA Today that gives us a small glimpse of the magnitude of the problem.

"Communities elsewhere are facing similar pressures:

• In Massachusetts, a record number of homeless families need emergency shelter, says Robyn Frost, executive director of the Massachusetts Coalition for the Homeless. In mid-April, there were 2,763 families in shelters, including 655 in motels because the shelters were full, an increase of 36% since July, she says.

"We have a high number of foreclosure properties, and many of them are multifamily apartments," Frost says. "We were seeing a great number of families being displaced."

• Reno officials shut down a tent city in October after making more shelter space available, but new encampments are popping up along the Truckee River and elsewhere, says Kelly Marschall of the Reno Area Alliance for the Homeless.

The homeless include "a startling number of first-time homeless," she says. "We asked them what industries they were involved in. The majority were talking about construction, the housing industry, real estate. There was a direct correlation to the housing market crash."

• In Santa Barbara, Calif., 84 men and women sleep in their cars, trucks or recreational vehicles in 17 parking lots around the city, says Jason Johnson with the New Beginnings Counseling Center, which runs the RV Safe Parking Program. The city, which allows the use of three municipal lots at night, supports the program, says city parking superintendent Victor Garza. Last May, there were 58 participants and no waiting list. Now 40 people are waiting.

"People's last refuge has become their vehicle," Johnson says."

How bad can the housing correction get?

2009-05-01T10:45:00.001-07:00

Well, in California they are demolishing new homes. I'd say that's pretty bad.

What does the subprime market have to do with you?

2007-08-10T13:01:00.000-07:00

I just watched Jim Cramer take a fit on television. Here it is.

This video was made afterwards and Jim spends some time explaining why he reacted the way he did.

Subprime refers to mortgages or loans to lower quality borrowers. These loans have a value and are bought and sold, so we can say there is a "subprime market". Banks like to do this because there are limits to the amount of money they are permitted to lend (a ratio based on cash and other assets on hand) and by selling the mortgage they now have more cash to do what they like to do (lend us more money).

Some of the fundamentals have recently changed. Several years ago the U.S. real estate market was booming so people were refinancing their existing homes to pull out equity. Others were buying homes they could not afford with exotic mortgages (i.e. "interest only", "liars loans" and what has to be one of the most diabolical "the "negative amortization loan"). Many of these mortgages were sold with "teaser rates" (i.e. an initial low interest rate that would reset to a much higher interest rate after the introductory period) that made sense in a market that was growing. You could always get a new mortgage based on the new higher equity value of your home! Unfortunately the U.S. residential real estate market is not growing like it was so people are not able to renegotiate as easily as they thought and many are losing their homes. This is compounding the problems in U.S. residential real estate and further dampening property values because there are so many motivated vendors.

Absolutely fascinating; but in all seriousness who cares! This is happening in the United States why should that have an impact on us here in Canada? The answer to that is superficially simple Financial Contagion.

Here is a brief clip from a Bloomberg article:

Central banks in the U.S., Europe, Japan, Australia and Canada added about $135.7 billion to the banking system in an attempt to avert a crisis of confidence in global credit markets.

The Federal Reserve, in a second day of action in concert with the European Central Bank, provided $38 billion of reserves and pledged further funds ``as necessary,'' in a statement unprecedented since the aftermath of the Sept. 11, 2001, attacks. The European Central Bank loaned 61.05 billion euros ($83.6 billion) after injecting a record amount yesterday.

The central banks are responding to the 'liquidity crisis' by making extra liquidity available. Let's hope it works! If it doesn't then we can expect a period of time where it is difficult to get new loans and those that are able to get them will be forced to pay a higher interest rate (note: the Fed's focus is on inflation which in my experience has always meant that they want to continue increasing interest rates).

So, what does the subprime market have to do with you? Well that really depends on what you intend to do in the next couple of years!

Alfonso Da Rosora - World Class Statues

2007-07-07T20:46:00.000-07:00

Please meet Helmut Sartarelli. He is the craftsman that creates these amazing works of art. Everything from statues to architectural components and some of the nicest water fountains I have ever seen.

This link will bring you to a map of Alfonso Da Rosora. If you are in the neighborhood stop by and take a look. Walking though these gardens is an uplifting life experience. If you happen to see Helmut please let him know that we can see his fountains from space.

New Seven Wonders of the World Named 2007

2007-07-07T20:25:00.000-07:00

The final tally produced this list of the world's top human-built wonders:

• The Great Wall of China

• Petra in Jordan

• Brazil's statue of Christ the Redeemer

• Peru's Machu Picchu

• Mexico's Chichen Itza pyramid

• The Colosseum in Rome

• India's Taj Mahal

Before the vote ended Friday, organizers said more than 90 million votes had been cast for 21 sites.

Voting at the Web site, www.new7wonders.com, ended at 6 p.m. ET Friday. Traffic was so heavy Friday that the site was crashing at times.

The story of an Over - Priced Home

2007-06-30T20:08:00.000-07:00

Where are the Ottawa schools in relation to the property that I am thinking about?

2007-06-05T22:33:00.000-07:00

Great question and I'm so happy that the internet is available, because within minutes I was able to find a map of the Ottawa-Carleton Catholic Schools and a map of the Ottawa-Carleton District Schools online.

Looking for a Home Inspector?

2007-05-29T19:17:00.000-07:00

The Canadian Association of Home and Property Inspectors may be of interest. The association also maintains web sites that are particular to specific areas within Canada. Namely:

Atlantic

Quebec

Ontario

Alberta

British Columbia

Manitoba and Saskatchewan seem to have associations as well, but at the time of this writing their web sites were not working.

The Canadian Association of Home and Property Inspectors - Ontario map can be used to find inspectors that are located close to you.

Relocation Services for Federal Government Employees

2007-03-13T16:16:00.000-07:00

The following principles were developed jointly by the Bargaining Agents' representatives and the Employer side representatives to the National Joint Council (NJC). These principles are the cornerstone of managing government relocations and shall guide all employees and managers in achieving fair, reasonable and modern relocation practices across the public service.

According to the policy you will be reimbursed all real estate commissions if you meet the criteria.

Ontario Retirement Communities Association

2007-03-11T14:34:00.000-07:00

The Ontario Retirement Communities Association is a voluntary, non-profit association that sets professional operating standards, inspects and accredits retirement residences in Ontario.

While visiting a client in a retirement facility I found reference to this organization. I kept the information and am adding it to my blog to assist anyone else that may be looking for a good retirement facility. For more information on other lessons learned in this experience please contact me directly.

Investor Education Fund

2007-02-14T08:52:00.000-08:00

While this site is not directly related to real estate news in Ottawa, I found it to be a quality site that may be of interest to my clients that see real estate as an investment.

The Investor Education Fund is supported by the Ontario Securities Commission and is setup to help educate investors. Good quality information from what looks to be an impartial source.

Let me know what you think of the site.

FlexHousing™

2007-02-11T16:00:00.000-08:00

The Canadian Housing and Mortgage Corporation has some articles on FlexHousing™. I'm impressed with the concept and will implement some of these ideas into a bathroom rebuild I have coming up in March. Here's a link to FlexHousing™ if you would like more information.

Power of Sale: Morrisburg Ontario Canada

2007-01-16T20:15:00.000-08:00

A property appeared on one of my power of sale queries in Morrisburg Ontario today. At $59,000 it looked really interesting at first glance. I can't post details about the property here as it is not my listing and we don't have an agency agreement. I would invite you to join my power of sale mailing list because I can send details my subscribers. ;)

Forms, Processes and Guidelines at work in the Landlord / Tenant Relationship

2007-01-03T20:57:00.000-08:00

Ever had a disagreement with a Tenant? Ever been a Tenant and had a disagreement with the landlord? Where you aware of the rules that presided over the issues at hand and did you have ready access to the forms and processes to make it happen?

While surfing I found this web site http://www.landlordsinfo.com that presented this information in an excellant format.

Selling a Rental Property - Some points to consider

2007-01-03T20:21:00.000-08:00

The Landlord's Self Help Centre has an introductory document on the topic.

MLS Listing Requirements

2006-09-29T13:55:00.000-07:00

This was sent to me and I thought I'd post it for you to be able to see some of the MLS listing requirements.

Link to MLS listing requirements

Auto-wreck leads to increased foreclosures

2006-09-19T13:22:00.000-07:00

From Ford's web site:
Ford will accelerate by four years its previously announced goal of reducing 25,000 to 30,000 North American manufacturing employees by the end of 2012. The reductions now will be completed by the end of 2008.

CNN Money describes a foreclosed home auction in Michigan which has been hit hard by the reversal of fortunes for North America's auto makers. Hudson and Marshall will be holding the foreclosure auction.

Foreclosures in America spiked in August

2006-09-19T13:09:00.000-07:00

Adjustable rate mortgages sold in the sub prime market combined with the great bull run we've seen over the last few years seems to be a significant contributor to the market correction.

In Canada the CMHC started of offer insurance on interest only mortgages in June 2006. At the same time CMHC also announced that they would insure mortgages with amortization periods of up to 35 years.

All in all this means that the Canadian market may continue to grow while the American market contracts. In the end our market may contract for the same root causes though.

Those of you that look to capitalize on forclosures can probably find some wonderful opportunities in the United States right now.

This post from CNN Money provides a good over view on the current foreclosure situation in America.

Resale market strong

2006-09-12T09:07:00.000-07:00

Resale housing in Ottawa, Ontario, Canada sets new records this year.

Rent Increase Guideline for 2007

2006-09-11T13:52:00.000-07:00

The Ministry of Municipal Affaires and Housing has published the 2007 Rent Incease Guideline.

2.6% is the maximum amount that most landlords can increase a tennants rent without making an application to the Ontario Rental Housing Tribunal from January 1, 2007, to December 31, 2007.

Ottawa Real Estate Board News Release

2006-09-11T13:22:00.000-07:00

Click Ottawa Real Estate Board to find the full news release.

Some highlights from teh September 8th, 2006 release are:

Average price of homes sold in August 2006 through the MLS® system, in Ottawa was 260,784$.

Average resale price in the Ottawa area has increased almost 9% compared to August 2005.

There were nearly 200 more condominium units sold in the first 8 months of 2006 than in 2005.

Planning for Succession

2006-08-26T23:05:00.000-07:00

"Small business in Canada is facing a leadership crisis because thre is so little proper planning" says chartered accountant Al Froggatt, a partner with BDO Dunwoody LLP in Toronto. "The small business sector generates enormous wealth for Canada - about $1.5 Trillion in sales. Considering that more than half of business owners will retire within the next 10 years, and only one in 10 family companies survive to the third generation, we have a real crunch ahead of us."

Sounds like oppotunity to me.

"Basically, owners have five options - appoint a family member, select a caretaker manager, wind down the business, sell the business or do nothing. In most cases the 'do-nothing' option is the worst."

* Written by the Institute of Chartered Accountants of Ontario and Published in the REM paper edition. August 2006.

Using corporations to acquire property

2006-08-03T04:32:00.000-07:00

Martin St-Onge writing for the Ottawa Business Journal has an interesting article discussing this concept.

Buying a Condo; 5 points to consider

2006-08-03T04:24:00.000-07:00

A good article from Steven Sheppard is available here. The primary points are:
1) You are buying into the corporation. Make sure you look at their books!
2) Understand insurance issues.
3) Understand your Parking and Storage Restrictions
4) Know the use and enjoyment restrictions.
5) If under construction; expect delays.

Power of Sale Ottawa Market Update

2006-06-01T21:23:00.000-07:00

Current Power of Sale Properties in and around Ottawa, Ontario, Canada:
7 Residential
3 Condominium
0 Farm
1 Multi Unit Residential
2 Commercial

Contact O'Neil Brooke for additional information.