Localism: Barrie, ON

Attention Canadian Real Estate Agents...Opportunity to Make Money!

Mon, 01 Dec 2008 11:59:49 -0600

Well it's been year in the making but it's finally here. The official www.crieg.ca web site is up and running ( still in test mode till Jan 2009 - with lots of content still to be added)

My company ( www.manainvestments.com) has grown to the point where we need to expand our network. That is why I joined Activerain and began the Canadaina Real Estate Investment Group. I started as a one man private investor, grew into a full time real estate company, now I am officially licensed ( last month !!) and my company requires the need to grow Nationally. That is where your help can come in.

I can't do it all, nor do I want to. My partner is going to Japan and we will begin an advertising campaign there, promoting the new creig site. The creig site requires relevant real estate information ( news and opportunities) from across Canada. I initially was going to hire someone to upload the information, but I thought of trying something new. Why not open it up to any real estate professional and get their input? Why not let them create the local information? In other words, show the site visitors why Lethbridge AB ( for example) is such a great place to invest in. And as well, on top of promoting your region, you can also promote your local listings to the broader national and international market.

The purpose of the site is threefold:

•1- Create a Canada wide network of real estate professionals (agents, investors, other investment groups etc....) that are experienced with real estate investments. Each one contributing to their regional areas; real estate news and investment opportunity listings etc...on the site.

•2- Form a referral network amongst all CREIG members. For example I have an investor interested in Ft McMurray....we work together with this client.

•3- Build an extensive content managed site ( blogs, news and listings) with a direct focus for real estate investors.....with a special emphasis on the international investor.

•4- Drive potential clients to the site through a focused, international marketing campaign.

I got my real estate license recently because I could not find agents that catered to the type of clients that I work with, and with the stock market declining, the new clients are only increasing. And I hate to say it but I am expecting the typical real estate agent response of "what's in it for me first attitude". I sent out an email 2 months ago and only received 2 responses of "sure how can I help?" and I am expecting the same. I have funded all the site developments and advertising so far and will continue to do so because I see great potential. It is up to you to respond.

I can only promise you this...you will get everything you want in life if you just help enough other people get what they want.

For further information visit www.creig.ca , www.manainvestments.com and www.educatenotspeculate.com

Or call: (705)-812-1033

Email: mark(at) manainvestments com

The Six Steps to Success - www.sixstepstosuccess.com - Goal Setting for real estate Agents. Get to your financial goal quicker...Helping you achieve success in goal planning

Real or artificial Christmas tree, which is better?

Sun, 30 Nov 2008 22:46:55 -0600

I overheard bits of a conversation between a couple at the next table while out to dinner Saturday night, more of a debate really, on whether they should get a real or an artificial tree for Christmas. Points were exchanged back and forth on convenience, cost and personal preference. I waited for the conversation to come around to environmental preference but it never did.

I had my own discussion today on the real vs. artificial tree purly on environmental aspect with a friend who like me knows everything and we concluded that the artificial tree was likely better because you can use it over and over again and you don't have to kill a tree before it becomes a teenager.

We were both wrong (can't wait to tell him) based on the information I have found here on the Internet, so it has to be true. Here is what I learned from a Canadian environmentalist on the topic.

First off artificial trees are plastic composite made from petroleum products. Most are made in factories in China where pollution laws are next to non existent. They are then shipped around the world to us in fossil fuel burning ships and trucks.

A real tree grows for 10 to 12 years before it is big enough for a traditional home Christmas tree. All this time they absorb carbon and produce oxygen. Most are grown on farms where they are constantly replaced. Most of these trees are grown within a couple hundred miles or less of where most in Canada and the US will end up buying them. In my area many choose to cut their own tree right at the farm.

Even better for the real Eco friendly at heart. Plant a live tree in a box and for the other 11 months of the year it's home can be the yard or porch.

Me I like the real tree. The ritual of picking one out, stuffing it half into the trunk and the smell it gives is better than anything from a fabreeze bottle and worth all the needles in the carpet.

Canadian Taxes and Investment Real Estate

Sat, 29 Nov 2008 13:22:56 -0600

Taxes and Canadian Real Estate

We are told many times when we discuss real estate at our seminars to "dumb things down". We naturally assume that everyone knows all about how real estate can be used to reduce taxes, capital gains issues, and all that other fun stuff. This article will attempt to explain the basic tax implications one encounters when realizing a profit (or capital gain) from real estate. For those that are not sure what a "capital gain" is....it is simply the profit you made on something you bought (or invested in). For example you buy a house for 100k. In 10 years you sell it for 185k. You made a capital gain (profit) of 85k.

At Educate not Speculate.com we teach both aspects of investing in real estate, personal and investment. So for discussion purposes, we need to separate your personal home from your real estate investment property. We do this because from the tax mans perspective, he views them differently as well.

In Canada your personal home is your residence. It is where you live be it Barrie Ontario or Lethbridge Alberta. It is the address you put on your drivers license. It's where you get your mail and collect all your bills. We stress these points because the Canadian tax man does. You see your personal home can make you a lot of money. A lot of TAX FREE MONEY. In fact Educate not Speculate is in business because so many people have made money on their personal residence, that they have followed our guidelines on utilizing "Lazy assets" in their home for even more profits (see ENSIS -Course 5). From a retirement perspective your personal home is where a lot of tax free "capital gain" exists. Simply put, YOU ARE NOT TAXED ON THE CAPITAL GAIN IN YOUR PERSONAL HOME. In lay mans terms, all the profit you make from your personal residence is TAX FREE.

Your Investment Real Estate is another story. How you set up your real estate business and how you pay tax on it is an important point ( see ENSIS Course 6). For purposes of this article we are discussing the Capital Gains tax ( profit) you pay on your investment real estate. For any property that is NOT your personal residence, you will pay tax on 50% of the profit you make. For example you buy a rental property for 100k. In 5 years you sell it for 125k. You made a 25k capital gain on your investment ( minus your renovations/upgrades ... see ENSIS Course 11 on how to save money doing this). Now the government says we have to pay tax on 50% of the 25k, which is 12.5k. That is, you pay tax on 12.5k. And the amount of tax you pay is based on your personal tax rate. So for this example lets say your personal tax rate is 30%, you're going to pay 30% of 12.5k, which equals $3750.00. Therefore your total profit after tax is 25,000-3750= $21,250

Your accountant is the best person to review all this with as well. But keep in mind this is a simplified version of paying tax on investment property in Canada. There are many other options available to reduce taxes further by following the strategies laid out in the course materials at www.educatenotspeculate.com

As well Mana Investments ( www.manainvestments.com) can walk you through all the complexities of investing in Canadian real estate for the first time. We have developed tried and true options to help you find, buy, and manage your investments. We focus on Central Ontario, Barrie, Orillia, Collingwood, Innisfil and Midland because from our economic research we believe that these towns have good growth potential over the next 10-15 years. We firmly believe and TEACH that real estate is about education....not speculation. For information on upcoming seminars please visit www.educatenotspeculate.com

For more info: (705)-812-1033

Email: mark(at) manainvestments com

The Six Steps to Success - www.sixstepstosuccess.com - Goal Setting for real estate Agents. Get to your financial goal quicker...Helping you achieve success in goal planning.

EXIT Realty Business Meeting Huge Success in Barrie, Ontario

Wed, 26 Nov 2008 08:32:25 -0600

Joyce Paron, President of EXIT Realty's Canadian Organization, was the keynote speaker to a packed house at a 60 Minutes with EXIT presentation in Barrie, Ontario last week.

Paron spoke about the challenges facing the real estate industry and offered practical solutions incorporating the new paradigm that is EXIT Realty.

"Congratulations to EXIT Realty First North franchisees Bruce Shipley and Larry Marples," exclaimed Paron. "This was Bruce and Larry's first 60 Minutes and they couldn't have had a better turn out at the posh Barrie Country Club. Great effort guys - it was first class all the way!"

About EXIT Realty: As a reward for assisting in the growth of the company, EXIT associates earn residual income equivalent to 10% of the gross commission of agents referred into the EXIT system anywhere in North America. When an associate retires, this 10% residual continues at the rate of 7%. These retirement residuals are further enhanced by continuing to sponsor agents into the EXIT system. The residuals continue after death to the associate's beneficiary at 5%. In addition, EXIT's top-producing trainers offer the industry's best hands-on, interactive real estate sales training at all levels, including regional, franchise, sales and administration.

For more information on real estate franchise ownership with EXIT Realty in Canada, please contact:
Quebec - Chantal Desharnais
Canada excluding Quebec - Ed Martens

This article is also posted on www.realestateindustryleaders.com

:: When should first time Barrie home buyers step up in a Real Estate market correction? ::

Mon, 24 Nov 2008 16:23:00 -0600

Buy low, sell high, the universal principle of investment and if it were as simple to implement as it sounds we would all be reaping the rewards. The real skill is in best determining where the bottom of any market is before it passes by and it takes a few months of steady value increases to know we have hit it. It also lies in having the confidence to step up.

The logic one needs to apply is really no different than that used by a practical shopper in Wal Mart. When an item you have wanted goes on sale you snap it up, you don't shy away from it because the price has dropped. Perhaps if the headlines you've been seeing for the last six months read "Sweater market in trouble" then shopping for sweaters at any price tends to become an unnerving experience. That is exactly what happens in Real Estate and the media hyperbole typically overwhelms the opportunities lying within.

You can wait until the eventual upswing confirms the bottom has come and gone but by then the sense of urgency is returning to the real estate market and the squeamish have become frenzied buyers once again taking to the streets to stake their claims. Vendors quickly become aware that the negotiating control they lacked when prices were stagnant or heading south has now shifted back over to them.

Ok, so where are we now on that curve? Have we hit the bottom yet?

In Ontario and much of Canada over the better part of the last year demands for housing have softened. The biggest factor is the down shift in consumer confidence brought on by what we are seeing in the United States, and to a lesser degree here at home. It is a self fulfilling prophesy. The news tonight interviewed a couple in the mall and asked if they will be spending as much this Christmas. The answer was a resounding "no, the economy is too unstable." Meanwhile they stated their employment situation is unchanged. They and everyone are paying far less for gas and heating fuel than a year ago. Chances are they are in better financial shape all around than last November but the mood has changed.

Responsible spending within our means is taking hold, what will we do? Less spending and less borrowing to spend means fewer goods need to be produced by companies that expanded to accommodate a boom without any thought to it ending at some point. Now companies are downsizing to adjust and unemployment numbers are on the rise. The local widget plant is laying off 200 workers and when we see it on the six o’clock news our consumer confidence drops a little bit more and so on….

At some point when we begin to sense things are stabilizing the media hype shifts to everything is rosy mode. Stories on new and expanding businesses, profit gain and closing bell increases on the stock market get people excited and they start to spend their money and up their visa limits once again. New housing starts increase and we all do our happy dance spending and buying for a few more years. Donald Trump and Warren Buffett probably read Marshal McLuhan's works.

In the US it isn't quite that simple. More than just confidence has shaken their financial foundation. Their experiment with high risk lending has put them into a situation that will take a couple years at least to correct. Hopefully measures will be put in place to assure it can’t happen again, measures like we have here in Canada already that regulate lending practices.

Right now in the Barrie area, home sales are down; the number of active listings continues to accumulate with the inventory of resale home listings at record highs. Residential real estate prices on properties under the $250,000 mark have held their value and for the most part, continued to climb during the past year, all be it at a slower rate than in each of the previous eight years.
The under $250,000 range has been the most active for sales over the past year in the Barrie area. This is the price range most first time home buyers default to where carrying costs remain within range of what they were comfortable with paying in rent. In each of the next few higher $50,000 ranges the percentage of total sales drops lower and the gap between initial asking price and the percentage of initial list price received on sales drops as well the higher you go.

A combination of factors is challenging sales in the above $300,000 range, The first and most obvious is higher carrying costs and tighter qualifying requirements. A wave of fiscal and environmental concience has started to effect the housing industry the same way it has impacted on the auto industry. The Hummer is out, the Prius is in.

During the housing boom we just came through you saw a return to low interest rates that allowed many the opportunity to buy their first home. Builders responded in kind with record numbers of new home starts in most years. Many of these people bought townhouses or lower end homes being what they could afford, then within a year or two these buyers realized their home had appreciated by $25,000 to $50,000 and they now qualified for more and had equity to trade up into a bigger and better home with little preceived impact on their monthly budget. (One more entry level home for the market and the next first time buyer and one more buyer for the higher end market homes being churned out as fast as the land could be cleared.) That cycle has slowed and most who bought their first home in the past couple years are sitting tight and many who bough a higher end home in the last few years are looking to sell and find something more affordable. Those higer end homes are taking longer and longer to sell and are accumulating to record levels in and around Barrie and other Ontario communities.

Homes over $300,000 could drop more in price before we see a leveling off and a climb once again. This could take another year or so. Home buyers whose price range is under $300,000 are less likely to see average prices drop much if at all any time soon. What buyers have in their favour right now is a slower market where the urgency of the seller often translates into substantial dollars saved off the list price through negotiation. (This is where your Realtor proves their worth.)

A home listed for $250,000 today could possibly be had for $235,000 to $240,000, maybe less after some back and forth bargaining. Once the market is in full recovery mode the seller is more likely to guard the list price, confident that demand will bring other buyers willing to pay more.

Questions to ask yourself;

Are homes in the price range I am interested in more like to go up or down over the next year? How much more? Am I going to save anything by waiting a year? Are interest rates more likely to go up or down if I wait a year? Will negotiating strength work for or against me a year from now?

The fact is interest rates are low still, negotiating strength still lies with the buyers due to the abundance of active listings and a hesitant buying public most of which to their own disadvantage will not step into the market until it heats up again. It is a good time if you are buying your first home. First time buyers are benefiting well from our current market conditions.

As I said in a previous post. Stop reading the paper and watching CNN and spend some of that time looking at the nice thick catalog of homes for sale.