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Volition meetup 2018.09


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LANEWAY SUITES! Learn what it takes to build and invest in laneway homes!

Question: What's our number one job as real estate investors??

Answer: **To put our money to its highest and best use!!**

With rising costs of property in Toronto, however, this is getting more and more difficult to do. Is the answer to look outside of Toronto for cheaper properties? No! As sophisticated investors, we know that along with lower prices comes increased risk. So what's the answer? DENSIFICATION!!

Laneway housing in Toronto has been a LONG TIME COMING for us investors, and will allow us to maximize the returns on our properties. Laneway suites can offer some of the highest ROI in Toronto for existing landlords who already own freehold investment properties with a laneway (i.e. single family, duplex, triplex, fourplex, etc), where a unit which cost $[masked]k to build can be rented out for $2000 a month. That's double the return of a condo.

Eldon Theodore, Partner at planning firm MHBC, will be joining us to discuss the opportunities and challenges around the activation and optimization of laneways through infill housing. We'll discuss the benefits and shortfalls of the recent Laneway Suite Guidelines approved by City Council. We'll run through real-life examples of applications to understand how to navigate this process!

Eldon Theodore is a Partner at MHBC with a dual specialization in planning and urban design where he has been practicing for 16 years. Eldon holds an Honours Bachelor Degree in Urban and Regional Planning from the University of Waterloo and a Masters in Urban Design Studies from the University of Toronto. Eldon is also a LEED Accredited Professional and has been trained under the National Charrette Institute System for conducting community charrettes.

Join us on Thursday, September 20th to learn about TORONTO LANEWAY HOUSING!!


Aug 16th,[masked]:30pm-10:00pm

6:30pm-7:00pm: Arrival, meet and greet and networking
7:00pm-9:00pm: Presentations begin at 7pm SHARP
9:00pm-10:00pm: Networking


Volition Properties

Volition Properties is an award-winning Toronto boutique real estate investment firm that provides advisory and turnkey real estate investment services. Its mandate is to help real estate investors sustainably invest to build wealth in the Toronto real estate market by investing in low-risk, freehold, cash-flowing income properties over longer-term real estate cycles.

[Volition (vō-ˈli-shən): The power to make your own choices or decisions; free will. Living life by design, not by default.]

Contact us today for any questions about investing in real estate in Toronto! [masked]

Published in: Real Estate
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Volition meetup 2018.09

  1. 1. @volitionproperties Volition Investment Mastermind September 2018
  2. 2. @volitionproperties Who is Volition?
  3. 3. Realty ManagementAdvisory Mentorship & Education & Consultation Acquisition of Investment Properties Design & Renovations Leasing & Property Management Renovations
  4. 4. @volitionproperties Who is Volition? ● Certified Real Estate Investment Advisors ● Toronto’s Exclusive Investor Realtor for REIN Buyer’s Group ● Nominated for REIN’s Highest Award (Michael Millenear Leadership Award) ● $20M+ in personal holdings
  5. 5. @volitionproperties We do normal stuff too! ● "Hey, we know you guys are great for investment properties, but do you help people buy homes or sell their homes?” YES WE DO!!
  6. 6. @volitionproperties We do normal stuff too - Listings ● Queen West condo. We sold it the SAME DAY as another CORNER unit for MORE!! ● Luxury Roncesvalles. ~$2M single family ● Why list with us? Investor advantage!
  7. 7. @volitionproperties We do normal stuff too - Personal Residence ● Why look for your personal res with us? ● So. Many. Reasons.
  8. 8. @investorming Ming’s Market Minute
  9. 9. @investorming TREB Market Data
  10. 10. @investorming Market Update - Sales Volume
  11. 11. @investorming Market Update - Listings
  12. 12. @investorming Market Update - YOY Summary
  13. 13. @investorming Market Update - Indicators
  14. 14. @investorming Market Update - Sales & Avg Price
  15. 15. @investorming Volition Market Data
  16. 16. @investorming Volition Metrics - Downtown municipalities
  17. 17. @investorming Volition Metrics - Downtown SF Detached
  18. 18. @investorming Volition Metrics - Uptown municipalities
  19. 19. @investorming Volition Metrics - Uptown SF Detached
  20. 20. @investorming Volition Metrics - Condos
  21. 21. @volitionproperties ● 1bdrm condo, King West ● Bought preconstruction in 2008 ● Closed in 2012 ● 640sqft ● Purchase price: $295,000 ● 20% deposit: $59,000 ● Rent then: $1800 ● Cashflow then: $100 Real Life: "If you bought this 10 years ago..."
  22. 22. @volitionproperties ● 1bdrm condo, King West ● Bought preconstruction in 2008 ● Closed in 2012 ● 640sqft ● Purchase price: $295,000 ● 20% deposit: $59,000 ● Rent then: $1800 ● Cashflow then: $100 ● Value now: $550,000 (7% compound growth) ● Rent now: $2300 ● Cashflow now: $600 ● Total Cashflow: $42,000 ● Mortgage Paydown: $54,000 ● Total Profit: $351,000 ● Total ROI: 594% ● Annual ROI: 59.5% How are your RRSPs doing? Real Life: "If you bought this 10 years ago..."
  23. 23. @volitionproperties ● Platinum VIP Access & 5% initial deposit ● 2bdrm: ○ $600k condo ○ Only need 5% deposit initially ($30k) ○ Then $1000/month for 30 months ($30k). ○ Total 10% deposit ($60k) ● Client recent acquisition: $1000/sqft → $1200/sqft in a matter of months! "But I don't have enough $ to buy anything…"
  24. 24. Artwork Towers (Coming end of Sept) ● 5% initial deposit ($30k) ● $1000/month until another 5% ($30k) = 10% total deposit ($60k). ● Located in Regent Park, which beginning Phase 3 of a 5-Phase Master Gentrification Plan. ● 1 mins walk from Dundas Streetcar and 10 mins ride to downtown Toronto. ● High Demand Rental Area – Young Professional (Millennial) who works in downtown. ● 15 mins walk from the massive East Harbour master planned office/retail mixed use development (50,000 new jobs): ● 20 mins walk from future revitalization of Eastern Waterfront by Google Smart City (50,000+ jobs)! ● Walk Score of 83: Very Walkable; Transit Score of 97: Rider’s Paradise.
  25. 25. @volitionproperties ● 2bdrm condo, Regent Park ● 750sqft ● Purchase price: $600,000 ● 5% deposit: $30,000 ● 5% more deposit: $30,000 (over 30 months) At 7% Growth in 5 years (after built): ● Value: $842,000 ● Rent: $2900 ● Cashflow: $100 At 7% Growth in 10 years: ● Value: $1.18M ● Cashflow: $16,000 ● Mortgage Paydown: $50,000 ● Total Profit: $646,000 ● Total ROI: 538% ● Annual ROI: 53.8% How are your RRSPs doing? Case Study: "If you buy now, in 10 years..."
  26. 26. @volitionproperties Volition Mastermind Chat Group ● Those who have worked with us know we have whatsapp chat groups ● Groups were disparate and we wanted to bring all our top clients ● We’ve created a mastermind group for all our VIP clients. ● Talk about news, tenant issues, share contacts, basically help navigate the difficulty of this investor world! Let us know if we missed you!!
  27. 27. @investorming What’s News?
  28. 28. @investorming Toronto rent is high. It’s unlikely that anyone renting in Toronto needs a report to confirm this. But it’s not just that the rent is high. It’s that it keeps going up.vAffordable housing has reached a crisis. And it’s not just in Toronto, but the Greater Toronto Area suburbs as well. GTA suburbs are among the fastest rising rental markets in Canada. At the forefront of this upward trend: Oakville, Etobicoke, and Mississauga. What’s more, rental rates are soaring in half of the country’s largest cities, according to a new study by PadMapper. According to the site’s August rent report, 13 Canadian cities saw median one- bedroom rents increase over the previous month: Toronto, Burnaby, B.C., Montreal, Ottawa, Kingston, Oshawa, Hamilton, Halifax,Abbotsford, Quebec City, Regina, St. John’s, and Saguenay. Toronto’s median one-bedroom rent went up 2.9 per cent to $2,140 a month, with its two-bedroom rentals steady at $2,800 a month. Vancouver still stands in second place. Its rental rates remained flat at $2,000 for a one-bedroom and $3,200 for a two-bedroom. When looking at the bigger picture, the rental crisis hits home harder. Year-over-year numbers show Toronto’s one-bedroom rentals have soared, up 15.7 per cent since last year. (Burnaby, B.C. and Montreal have also seen massive increases in rent, up 15 per cent from the year before.) As Toronto Storeys reported in May, one in five Canadian households put half of their income towards rent. And four in 10 renters put over 30 per cent of their income towards rent and utilities. These numbers are above the cut- off level for what the Canadian Mortgage and Housing Corp. considers affordable. Toronto Has The Most Expensive Rental Market In Canada
  29. 29. @investorming The number of new mortgages taken up in Canada in the second quarter of the year fell by 3.4 per cent compared to a year earlier, according to credit agency TransUnion, and younger borrowers seemed particularly discouraged from entering the housing market.. There was a decrease of 18 per cent in millennial borrowers (aged 24 to 38) and 22 per cent in Generation Z borrowers (aged 18-23), TransUnion found. The number of Generation Z mortgage holders is small, but more than 11,600 fewer millennials either applied for new mortgages or renewed a mortgage in the quarter. People in this age group are just trying to enter the real estate market for the first time and often struggle to come up with a 20 per cent down payment. Tough new mortgage rules are playing a role, TransUnion said. "We think the drop is a combination of affordability and new rules — and for new rules it's a combination of less qualifying under new rules as well as a segment that perhaps qualify for less and are waiting it out for either home values to drop so they can afford more or waiting to save more of a down payment," said Matt Fabian, director of financial services research and consulting for TransUnion Canada in an email statement to CBC News. With housing prices slipping only slightly from historic highs, new mortgage holders must either have 20 per cent or qualify for mortgage insurance, meaning they must meet a stress test that shows they'll be able to afford payments even if rates rise. The new rules took effect Jan. 1 and are meant to cool the overheated housing markets in some Canadian cities. It's the second such round of mortgage rule tightening after tougher rules took effect in spring of 2017. At the same time, mortgage rates are climbing after the Bank of Canada raised interest rates in 2017 and early 2018. But mortgage borrowing in the April to June 2018 quarter picked up among the Silent Generation — seniors aged 73 to 93, who may be borrowing for retirement or to help younger relatives afford a home, TransUnion said. Toronto new mortgage originations dropped 17.6 per cent from the same period last year. Calgary, Edmonton and Winnipeg also saw a decline, but there was a rise in new mortgages in Ottawa, Halifaxand Montreal. TransUnion found Canadian debt continues to rise, yet consumer debt levels have been growing at slower pace for the past two quarters. Outside of mortgages, average debt balances per consumer increased marginally to $29,648, a 3.9 per cent increase over the same period last year. The average credit card balance also increased, by 3.5 per cent to an average of $4,200 per consumer. But Canadians seemed to be managing their non-mortgage debt, the agency said. Overall delinquency rates decreased, with the percentage of cards 90 days or more past due, dropping three basis points year-over-year to 2.37 per cent. Number of mortgages fell 3.4% in second quarter as stress test rules keep young buyers out
  30. 30. @investorming An overwhelming number — 87 per cent — of Toronto-area residents believe that boosting the housing supply would help address the region’s affordability crunch. But many people don’t want that new housing built too close to their own home. An Ipsos poll shows that 59 per cent of residents oppose building highrise condos within half a kilometre of where they live. But there is also significant resistance to other types of less dense development, according to the research for the Building and Land Development Association (BILD) and the Toronto Real Estate Board (TREB). Respondents were also opposed to the kind of “missing middle” housing — that planners believe is key to creating relatively affordable homes for the Toronto area’s growing population. Forty-four per cent of respondents didn’t want to see a middle-density stacked townhome complex within a half kilometre of their home and 37 per cent were resistant to a traditional townhouse development. Even single-family detached homes were opposed by 30 per cent of poll respondents if they were being built in their neighbourhood. “People recognize we need to build more housing in order to provide the type of housing people need at the price they can afford in the GTA and that they recognize part of that solution is the missing middle,” said Justin Sherwood, a spokesperson for BILD. But the “quite high degree of opposition” to the kind of construction the city needs is disheartening, he said. The poll is the second of three parts being released jointly by the homebuilding and real estate industry prior to next month’s municipal elections. The first release last week, showed 57 per cent of residents believe it is increasingly difficult to own a home in the region. The high cost of housing is affecting how much people can save for retirement, even how many children they have, according to the findings. The average price of a resale home in the Toronto area in August, including all highrise and lowrise housing types, was $765,270,according to the real estate board. New construction single-family homes — townhouses, semi-detached and detached houses — sold for $1.14 million in July on average and condos were $774,759, according to BILD. The home builders’ association, which is encouraging residents to write to politicians to push for greater housing supply, says the region needs about 50,000 new homes a year to keep up with growth. But only 38,000 were built last year. The online poll of 1,503 Toronto area residents was conducted Aug. 20 to 23 and is considered accurate within 2.9 per cent 19 times out of 20. Torontonians want more housing, but many don’t want development too close to home, polls shows
  31. 31. @volitionproperties Announcements
  32. 32. @volitionproperties Main Event! ● Eldon C Theodore ● Partner at MHBC ● MHBC - Planning, Urban Design and Architecture Eldon Theodore is a Partner at MHBC with a dual specialization in planning and urban design where he has been practicing for 16 years. Eldon holds an Honours Bachelor Degree in Urban and Regional Planning from the University of Waterloo and a Masters in Urban Design Studies from the University of Toronto. Eldon is also a LEED Accredited Professional and has been trained under the National Charrette Institute System for conducting community charrettes.
  33. 33. @volitionproperties ● Cost of construction: $200,000-300,000 (incl Soft Costs) ● Size: 20ft x 35ft (700sqft) ● 2bdrm + 1bath ● Rent potential: $2500 ● Property value increase: $250,000-350,000 (est) ● Toronto $/door is $400,000 (I.e. Triplex is $1.2M) ● You’re adding value to the property (like a reno), but not adding land. E.g. ● Property Value before: $1.2M ● Cost of construction: $240,000 ● Property Value after: $1.5M ● Refinance: Pull out your construction costs ($240,000) ● Net cost of construction: $0 Case Study: "Build A Laneway House”
  34. 34. @volitionproperties At 5% Growth in 5 years (of original property $1.2M): ● Value: $1.532M ● Rent: $5700/month ● Cashflow: $57k ● Mortgage Paydown: $100k ● Total profit: $488k ● Total ROI: 203% ● Annual ROI: 40.7% At 5% Growth in 5 years (with laneway house $1.5M): ● Value: $1.914M ● Rent: $8200/month ● Cashflow: $127k ● Mortgage Paydown: $125k ● Reno equity lift: $60k ● Total profit: $725k ● Total ROI: 302% ● Annual ROI: 60.4% How are your RRSPs doing? Case Study: "Build A Laneway House”