What does it takes to turn your real estate purchases into investments? Why would someone investing in Toronto invest in the Annex?

2. Matthew Lee, Managing Partner
matthew@volitionprop.com
(416) 937-5251
[Volition (vō-ˈli-shən): the power to make
your own choices or decisions; free will.]

3. Tonight’s Meetup is brought to you by…
416.410.9905
clientcare@calumross.com

5. Looking to learn tonight
A challenge you're currently facing that you can't figure
out how to get past
Your next action step in Real Estate Investing

8. 25 MINUTE NETWORKING BREAK
Write your questions up on the
whiteboard!! (and we’ll answer them after
the break!)

9. Why The Annex?
(And Investment Strategies That WORK!)

14. 1. Employment growth
Employment growth is strongest in downtown Toronto

15. OBSERVATION
TD Economics
Since 2006, the Toronto region has seen a revival of population growth in its downtown core. While
decades prior saw an exodus of baby boomer families heading towards the outer-suburbs for larger and
more affordable housing, the last five years have seen a very different trend. Young echo boomers have
now become a key demographic. These individuals and young families are choosing quicker commute
times, proximity to amenities, workplaces and transit, locating themselves in the downtown core’s many
mixed-use communities. Moreover, employers are now catching on to this recent trend and are increasingly
locating themselves within the downtown core as well, hoping to attract this highly-educated, highly-
skilled labour force. This also reverses a prominent trend of the
last few decades in which businesses were choosing to locate in
other municipalities in order to avoid the high commercial real
estate costs of downtown Toronto.
Move over baby boomers
Chart 1 shows this dramatic reversal in population trends.
The pace of population growth in the downtown core more than
tripled in the 2006-2011 census period relative to previous cen-
suses. It also outpaced growth in the four surrounding suburbs
– the Halton, York, Peel, and Durham regions – something that
has not happened since the inception of those municipalities in
the early-1970s.
This shift was driven in large part by the growth in the echo
boom population (Chart 2) which, as of 2011, is now the largest
age group in Canada. Born between 1972 and 1992, these 19 to
39 year olds represent roughly one-quarter of Ontario’s popula-
TORONTO - A RETURN TO THE CORE
Highlights
• Toronto’s vibrant downtown core has seen a revival of population growth over the last five years,
driven in large part by a growing Echo Boomer segment.
• This highly-skilled, highly-educated, and young population is trading the larger and (relatively) more
affordable housing choices of their parents for proximity to transit, work, and amenities.
• The growing desire to locate downtown has prompted a wave of condo development. An increasing
number of businesses are also acquiring office space in the core in order to be closer to this grow-
ing labour pool. New business creation, employment gains and population growth in the downtown
core are now outpacing that in the surrounding suburbs, reversing a decades-long trend of exactly
the opposite.
• Overall, these trends represent a huge opportunity for the City of Toronto, but it does create challenges.
Notably, the city’s already-strained road and transit infrastructure could face additional pressure.
January 22, 2013
Francis Fong, Economist, 416-982-8066
CHART 1: POPULATION GROWTH IN THE
GREATER TORONTO AREA
15.7
17.2
18.6
13.7
4.3
5.0 4.6
16.2
0
5
10
15
20
1991-1996 1996-2001 2001-2006 2006-2011
Peel, York Durham*, and Halton Regions Downtown Toronto**
*Durham mostly refers to Ajax and Pickering, **Trinity-Spadina &
Toronto Centre; Source: Statistics Canada Censuses of Population
% change in population

16. profile TORONTO - 1
Toronto Employment Survey 2014
REVISED August 2015
This bulletin summarizes the highlights of the
2014 City of Toronto annual Employment
Survey, marking its 32nd consecutive year.
This information resource presents a picture
of change in Toronto’s economy throughout
the past three decades.
For more information, please visit us at
www.toronto.ca/demographics/surveys
Highlights
• The 2014 survey counted
1,384,390 jobs.
• Toronto's overall employment in
2014 is up by 1.5% from 2013
adding 20,850 jobs to Toronto's
employment base.
• Full-time employment has
continued to stay above the 1
million mark for the eighth
consecutive year.
• Part-time jobs increased by 1.7%
over 2014, totalling 320,860 jobs.
• The Office sector remains the
largest sector in Toronto,
accounting for almost 1 out of
every 2 jobs.
• The Institutional sector was the
fastest growing sector in 2014,
growing by 4.9% and adding
11,010 jobs.
• The number of establishments
surveyed in 2014 was 75,180, a
net gain of 430 establishments.
• In 2014, there were
approximately 562,370 jobs in
Toronto's Downtown and
Centres, comprising 40.6% of all
jobs in the City.
• Etobicoke Centre was the only
Centre to gain employment in
2014, adding 690 jobs and
growing by 7.9%.
• North York Centre remains
Toronto's largest employment
Centre outside of the Downtown
with 34,830 jobs.
• In 2014, there were
approximately 398,750 jobs in
Toronto's Employment Districts,
accounting for 28.8% of jobs in
Toronto.
• 83.2% of all Manufacturing sector
establishments in the City reside
in the Employment Districts,
representing 92.1% of all
Manufacturing jobs in Toronto.
• The number of Manufacturing
sector establishments in Toronto
remained the same over 2014 with
no net loss of establishments.
1,000,000
1,050,000
1,100,000
1,150,000
1,200,000
1,250,000
1,300,000
1,350,000
1,400,000
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
NumberofJobs
Full Time
1,063,540
Part Time
320,860
77.1% Toronto jobs
are Service Based.
47.9% of Toronto
jobs are in the Office
sector.
The Institutional sector
was the fastest
growing sector in
Toronto in 2014.
5,030 business
establishments were
new to Toronto
in 2014.
Toronto Job Count
1,384,390
1.5%
2013-2014
34.9% of
Toronto's jobs
are located
Downtown

17. Toronto Employment Survey 2015
This bulletin summarizes the highlights of the
2015 City of Toronto annual Employment
Survey, marking its 33rd consecutive year.
This information resource presents a picture
of change in Toronto’s economy throughout
the past three decades.
For more information, please visit us at
www.toronto.ca/demographics/surveys
Highlights
The 2015 survey counted
1,422,280 jobs, an increase of
37,870 jobs or 2.7% from
Toronto's overall employment
base in 2014.
Full-time employment has
surpassed the 1 million mark for
the ninth consecutive year.
Part-time jobs increased by 7.3%
from 2014, an addition of
344,350 jobs.
The Office category remains the
largest sector in Toronto,
accounting for almost 1 out of
every 2 jobs.
The survey counted 75,710
establishments in 2015, a net
gain of 530 establishments.
In 2015, approximately 587,490
jobs were located in Toronto's
Downtown and Centres, 41.3% of
all jobs city-wide.
North York Centre, with 35,000
jobs, remains Toronto's largest
employment Centre after
Downtown.
Yonge-Eglinton Centre has
Toronto's highest employment
density with nearly 30,000 jobs
per km2.
In 2015, there were
approximately 407,420 jobs in
Toronto's Employment Areas,
28.6% of jobs in Toronto.
83.1% of all Manufacturing
category establishments and
91.2% of all Manufacturing
category jobs, are in Employment
Areas.
The Manufacturing category
added 20 new establishments in
2015.

18. Web page Printout
TOcore - Planning Toronto's Downtown
What's New?
TOcore Phase 1 Summary Report and Phase 2 Directions
The TOcore Phase 1 Staff report went before Toronto and East York Community Council (TEYCC) on November
10, 2015 and was subsequently adopted by City Council at its December 9, 2015 meeting. A copy of the Staff
Report and the accompanying TEYCC presentation (in both video and hard copy) and available here:
TOcore: Planning Toronto's Downtown Phase 1 Summary Report and Phase 2 Directions
Presentation
Video (TOcore presentation begins at the 9:25:00 time spot)
Phase 1 Background Reports
Several background reports were prepared as part of TOcore's initial 'taking stock' phase. This section will be
updated as reports are made available.
TOcore Retail and Service Commercial Land Use Study (December 2015) Appendices to this report are
available upon request to tocore@toronto.ca
Not Zoned for Dancing: A Comprehensive Review of Entertainment in the Downtown (December 2014) - a
research report by graduate students at the University of Toronto
TOcore Community Services and Facilities Study - Phase 1: Taking Stock (forthcoming)
Downtown Parks: Phase 1 Background Report Summary (forthcoming)
TOcore Transportation Summary Brief - Phase 1: Taking Stock (forthcoming)
TOcore Energy: Existing Conditions (forthcoming)
Overview
Since 1976 the residential
population Downtown has doubled,
with over 240,000 people now
calling Downtown home. With
almost 480,000 jobs, Downtown is
today the largest and most
accessible employment centre in
the region, notable for its
concentration of jobs in finance,
government, creative industries,
higher education and health care. In
fact, one-third of all jobs in the city
are within the core.
With a population growth rate of
18% since 2006, Downtown is
growing at four times the rate of
City of Toronto as a whole.

19. 2. Outgrowing Condos
into Houses
Young professionals are getting married and having kids, and
are growing out of their 750sqft downtown condos

20. Featured
LIVE NOW: BlackBerry
CEO speaks in
Washington
Extended: New
surveillance images in
Chinatown murders
Ghomeshi trial: Final
submissions to be
made Thursday
Toronto taxi drivers to
plan massive Uber
protest
Trudeau in Whitby for
Ont. Liberal's
byelection rally
Extended: Truck stuck
in giant sinkhole in
Kitchener, Ont.
RELATED STORIES
Condo prices to rise in most cities in
2013, demand to continue
Toronto's condo boom won't burst
housing bubble: RBC
Most Canadian home buyers would
avoid bidding war: study
City over suburbs: Downtown Toronto's population growth triples with younger
influx
A construction crane stands in front of the CN tower in downtown Toronto. (Pawel Dwulit/THE CANADIAN PRESS)
Andy Johnson, CTV Toronto
Published Tuesday, January 22, 2013 1:33PM EST
Toronto's downtown core is booming as a group of highly­skilled, highly­educated young people ­­ known as “Echo Boomers” ­­ eschew the
suburban lifestyle their parents chose and instead opting for an urban lifestyle in the city centre.
According to a new report from TD Economics analyzing the trend, growth of Toronto’s downtown population has more than tripled in the past five
years.
The Echo Boomers – children of Baby Boomers who born between 1972 and 1992 – are driving the new trend as they get married, have children
and purchase homes in the city.
"These individuals and young families are choosing quicker commute times, proximity to amenities,
workplaces and transit, locating themselves in the downtown core's many mixed­use communities," the
report states.
For this generation, proximity to work, a shorter commute and access to city transit is a fair trade­off for the
higher real­estate prices and smaller properties their parents fled to the suburbs to avoid. The movement
has resulted in a seemingly endless crop of new condominium buildings in the downtown core.
As a result, Toronto's downtown is experiencing business growth, employment gains and population growth
at rates that outpace the surrounding suburbs and reverse a decades­long trend in the other direction.
The study reveals a startling shift in recent years when growth in downtown Toronto is compared to growth in Peel, York, Durham and Halton
Region – essentially Toronto's suburbs and bedroom communities.
Between 1991 and 2006, the growth rate in the suburbs was between 15.7 per cent and 18.6 per cent. Over the same period, growth in the
downtown ranged from 4.3 to 4.6 per cent.
But between 2006 and 2011 a massive reversal took place. Growth in the suburbs dropped from 18.6 to 13.7 per cent, while growth in the
downtown spiked from 4.6 per cent to 16.2 per cent.
• Growth of Toronto’s downtown population has
more than tripled in the past five years.
• They get married, have children and purchase
homes in the city.
• Proximity to work, a shorter commute and
access to city transit is a fair trade-off for the
higher real-estate prices and smaller properties
• Echo Boomers are now the largest age and a
higher proportion of them live downtown than
anywhere else
• While formerly run-down neighbourhoods have
experienced significant gentrification as young
people purchase properties, then renovate
them.

21. At the other end of the renovation
spending spectrum will be first-time
house buyers in the 24- to 44-year
range, looking to add a basement
apartment so the rent will help pay
their hefty mortgages.
40 per cent are expected to do
renovations aimed at turning the old
family home into a great
entertaining space — in many
cases with a basement apartment
to help grown children get on their
feet or save for a house.

22. 3. Millennials
Will be the biggest cohort since the Baby Boomers to affect
the housing market

23. 12 13

24. 14
15

25. 4. Condos
Currently meeting the needs of young 20-somethings, but
eventually they outgrow them

28. How does this impact prices? It’s basic
economics. The prices of the home types
we aremaking more of (condos) are
relatively flat, while the prices of the home
types we are making far fewer of (detached
houses) are rising.
In July the RealNet New Home Price Index
for lowrise homes (detached,
semidetached, townhouses and link
homes) reached a record high of $806,395,
an increase of 17.7 per cent over the
previous year. Meanwhile, the price index
for highrise homes (condominium
apartments, lofts and stacked townhouses)
increased by only 1.2 per cent, to
$446,398.

29. 5. Transit
Investing around transit hubs give an extra 15-20% lift in
values and rents.

31. What Does It All Add
Up To???

34. 14 Symington Ave
Toronto Ontario M6P3W1
Sold: $700,000
List: $589,000
Taxes: $2,559.58 / 2015 For: Sale % Dif: 119
SPIS: N Last Status: Sld
Plan M23 Pt Lot 10 DOM: 8
Att/Row/Twnhouse
2-Storey
Irreg:
Fronting On: W
Acreage:
14.67 x 125 Feet
Rms: 7 + 3
Bedrooms: 3 + 1
Washrms: 3
1x4xGround, 1x4x2nd, 1x4xBsmt
MLS#: W3279329 Seller: Jamaal Joseph And Bertram Evingston Joseph Occupancy: Partial
PIN#: ARN#: Contact After Exp: N
Holdover: 90
# Room Level Length (ft) Width (ft) Description
1 Living Ground 12.96 x 11.64 Laminate Window
2 Kitchen Ground 12.30 x 11.32 Ceramic Floor Ceramic Back Splash W/O To Yard
3 Dining Ground 11.32 x 8.36 Ceramic Floor Large Window
4 Br Ground 11.64 x 10.00 Hardwood Floor Window
5 Living 2nd 14.27 x 10.99 Hardwood Floor W/O To Balcony Window
6 Kitchen 2nd 11.32 x 8.36 Ceramic Floor W/O To Balcony
7 Br 2nd 11.32 x 9.02 Hardwood Floor Closet Window
8 Living Bsmt 16.24 x 10.00 Vinyl Floor Combined W/Dining
9 Kitchen Bsmt 9.02 x 6.72 Vinyl Floor
10 Br Bsmt 11.32 x 7.05 Laminate Closet Window
Toronto W02 Dovercourt-Wallace Emerson-Junction Toronto 114-14-Q
Dir/Cross St: Bloor / Symington
Kitchens: 2 + 1
Fam Rm: Y
Basement: Finished / Sep Entrance
Fireplace/Stv: N
Heat: Forced Air / Gas
A/C: None
Central Vac:
Apx Age:
Apx Sqft:
Assessment:
Laundry lev:
Exterior: Brick / Insulbrick
Drive: Lane
Garage: Detached / 2.0
Park Spaces: 1
UFFI:
Pool: None
Prop Feat: Fenced Yard, Park,
Public Transit
Zoning:
Cable TV: Hydro:
Gas: Phone:
Water: Municipal
Water Supply:
Sewer: Sewers
Waterfront:
Retirement:
Farm/Agr:
Oth Struct:
Spec Desig: Unknown
Client Remks: Ideal Investment Opportunity In A Great Location!! Minutes To Subway And Go Station!! Great Curb Appeal! Victorian Style House With
Three Self-Contained Units! High Ceilings On Main & Second Floor; Lovely Front Veranda; Second Floor Balcony; Deep Lot With Fully Fenced Yard,
Storage Shed, And Detached Garage; Separate Front Entrance To Basement. Steps To Bloor Street - Close To All Needs! Don't Miss It!
Extras: Electric Light Fixtures; 3 Fridges; 3 Stoves; Gas Burner & Equipment.
Brkage Remks: Offers To Be Reviewed Tuesday, August 11th @ 7:00Pm, At Lb Office. Please Register By 5:00Pm. Attach Schedule B & Form 801 To
Offers W/ 24 Hour Irrevocable. Deposit Cheque Must Be Certified & Herewith.
Prepared by: MATTHEW RICHARD LEE, Salesperson
RIGHT AT HOME REALTY INC., BROKERAGE
895 Don Mills Road Suite 112, Toronto, ON M3C1W3 416-937-5251
Printed on 01/21/2016 4:07:02 PM

35. The 4 Risk Factors in Real Estate (and How to Mitigate Them!)
• Don’t just buy because it’s “CHEAP”
• Don’t spend your cashflow!! Build reserve fund for
unforeseen problems.
Property
Risk
• Buy in markets with strong economic fundamentals
• READ: “Secrets of Canadian Real Estate Cycle”
Market
Risk
• Know your tenant profile, attract a high-quality tenant
• SCREEN, SCREEN, SCREEN!!
Tenant
Risk
• Educate yourself & keep up-to-date
• Build your “Real Estate Dream Team”
Investor
Risk
ExternalInternal

36. The 4 Risk Factors in Real Estate (and How to Mitigate Them!)
• Don’t just buy because it’s “CHEAP”
• Don’t spend your cashflow!! Build reserve fund for
unforeseen problems.
Property
Risk
• Buy in markets with strong economic fundamentals
• READ: “Secrets of Canadian Real Estate Cycle”
Market
Risk
• Know your tenant profile, attract a high-quality tenant
• SCREEN, SCREEN, SCREEN!!
Tenant
Risk
• Educate yourself & keep up-to-date
• Build your “Real Estate Dream Team”
Investor
Risk
ExternalInternal

37. The 4 Risk Factors in Real Estate (and How to Mitigate Them!)
• Don’t just buy because it’s “CHEAP”
• Don’t spend your cashflow!! Build reserve fund for
unforeseen problems.
Property
Risk
• Buy in markets with strong economic fundamentals
• READ: “Secrets of Canadian Real Estate Cycle”
Market
Risk
• Know your tenant profile, attract a high-quality tenant
• SCREEN, SCREEN, SCREEN!!
Tenant
Risk
• Educate yourself & keep up-to-date
• Build your “Real Estate Dream Team”
Investor
Risk
ExternalInternal

38. The 4 Risk Factors in Real Estate (and How to Mitigate Them!)
• Don’t just buy because it’s “CHEAP”
• Don’t spend your cashflow!! Build reserve fund for
unforeseen problems.
Property
Risk
• Buy in markets with strong economic fundamentals
• READ: “Secrets of Canadian Real Estate Cycle”
Market
Risk
• Know your tenant profile, attract a high-quality tenant
• SCREEN, SCREEN, SCREEN!!
Tenant
Risk
• Educate yourself & keep up-to-date
• Build your “Real Estate Dream Team”
Investor
Risk
ExternalInternal

39. The 4 Risk Factors in Real Estate (and How to Mitigate Them!)
• Don’t just buy because it’s “CHEAP”
• Don’t spend your cashflow!! Build reserve fund for
unforeseen problems.
Property
Risk
• Buy in markets with strong economic fundamentals
• READ: “Secrets of Canadian Real Estate Cycle”
Market
Risk
• Know your tenant profile, attract a high-quality tenant
• SCREEN, SCREEN, SCREEN!!
Tenant
Risk
• Educate yourself & keep up-to-date
• Build your “Real Estate Dream Team”
Investor
Risk
ExternalInternal

41. Ben Myers Become a fan
Senior Vice President, Market Research and Analytics, Fortress
Real Developments. Fifteen years of real estate research
experience.
Posted: 12/16/2015 6:08 pm EST Updated: 12/21/2015 12:59 pm EST
Toronto And Vancouver Real Estate Is Undervalued ­
Globally Speaking
For over a decade, the articles, commentary and analysis focusing on the Toronto and Vancouver housing markets have addressed high
levels of mortgage debt, speculative investors, foreign buyers and the inevitable unfolding of the markets when interest rates inevitably rise.
It has been hypothesized that the unraveling of these major housing markets will inflict pain on the entire Canadian economy.
Should we keep waiting another 10 years for this scenario to play out, or should we come up with new explanations for what is happening in
the Toronto and Vancouver housing markets?
Perhaps the biggest problem is a comparison problem. When you go out shopping for anything, you compare the price of the item you want
to the price you paid before, or you compare the price to a similar item whose price you know.
You check out a couple of different stores in the mall, perhaps you go online or head south of the border to an outlet store -- you'll get a
pretty good idea if something is a deal or if it's overpriced.
The same applies to house prices. If you paid $400,000 for a condo downtown, does it makes sense to pay $500,000 for a bigger unit up the
street, or $700,000 for a house in the suburbs? You might even contemplate moving out of the metro area altogether to a smaller city or
town a couple of hours away, because you know the prices are 40 per cent lower.
This method of comparison was valid when Toronto and Vancouver were second-tier global cities. But that has changed. These markets have
ascended to the ranks of world-class cities. One way to identify a global city is to review their price-to-rent and price-to-income ratios. The
higher these ratios are, the greater the likelihood that the area is attracting foreign dollars and disrupting the relationship between these
variables.
Rents are typically constrained by the incomes of local renters, while prices are not, as foreign capital snatches up homes to keep as vacation
properties or to rent to relatives at a discounted price. In addition, desirable places like Toronto and Vancouver build brand new luxury
properties, areas gentrify quickly and existing properties are renovated and resold at much higher prices.
Some owners of rental older properties do few improvements and see less rapid rental growth, but they envision simply selling their
property for the next big condo project. Income numbers skew low as local residents sell to affluent local buyers with business (and not
personal) income or foreign buyers that don't report their salaries in Canada.
All of these extreme factors become greater and more influential in global markets, rental rates and incomes appear lower than they should
be, and prices skew higher.
Featuring fresh takes and real­time analysis from
HuffPost's signature lineup of contributors
March 18, 2016
iOS app Android app More Log in Create Account

42. Investment Strategies
That Work

44. 5 years ago:
• $350,000
• 20% downpayment ($70,000)
• Mortgage of $280,000.
• Closing costs and LTT: $10,000
• Total: $80,000
• Monthly Cost of living: $1900
Now:
• It's worth $400,000 (3% appreciation over 5 years)
• Every 5 years, you pay down roughly 13% of the mortgage
• Mortgage is now $240,000
• Currently: $160k of equity (You started with $80k!)
Sell condo:
• $400,000
• Disbursement fees (Realtor, lawyer, etc.): $20,000
• Takeaway: $140,000
• Capital gains tax: $0

45. 5 years ago:
• $350,000
• 20% downpayment ($70,000)
• Mortgage of $280,000.
• Closing costs and LTT: $10,000
• Total: $80,000
• Monthly Cost of living: $1900
Now:
• It's worth $400,000 (3% appreciation over 5 years)
• Every 5 years, you pay down roughly 13% of the mortgage
• Mortgage is now $240,000
• Currently: $160k of equity (You started with $80k!)

46. House in the Annex:
• $850,000 (Triplex)
• Total cash required: $115,000
• Downpayment 10%: $85,000 (owner occupied)
• LTT and closing: $30,000
• Total mortgage amount: $783,000
• Mortgage: $765,000
• CMHC insurance (2.4%): $18,000
• Live in basement unit, rent out the other 2. Total Rent $3500
• Rent main floor: $1750
• Rent 2nd floor: $1750
• Monthly costs: $4200
• Cost of living:
• $700 (down from $1900)
• Still have $25k in hand from the sale
• You now own a HOUSE in downtown Toronto, near the
subway line.

47. Fin

48. 1. Investor-focussed Real Estate Agent
2. Advisory/coaching/mentorship for Real Estate Investors
3. Joint Venture Partnerships
Matthew Lee, Managing Partner
matthew@volitionprop.com
(416) 937-5251
Services we offer:

49. If you take your financial goals seriously and are looking
for a mortgage team who understands the big picture –
we would love to serve you!
1-855-410-9905 or 416-410-9905
www.CalumRoss.com

50. 1)
• Next meetup is April 21.
• Shayle Rothman – Expert Real Estate
Investment Lawyer
2)
• Fill out Feedback Forms.
• Join Meetup.com group to get updates.
3)
• Niran for real estate advice/coaching.
• Contact me if you want to buy your next
investment property