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MARK DAVID- The Globe and Mail

The following article is from Canadian Real Estate Wealth Magazine.

Buried treasure can be found in the Caribbean, and you don’t need a pirate ship to find it. The treasure comes in the form of affordable real estate in five sub-tropical markets primed for growth. These areas are all poised to experience an economic boom in 2013 and beyond, and that has put wind in the sails of North American baby boomers. Each market has an inventory of move-in-ready properties that are suitable for retirement and investment purposes. They are also relatively inexpensive.

As well, the large ex-pat populations there provide Canadians with the social familiarity they need to call a place home. Savvy investors are now moving to capitalize on the opportunity to furnish North American snowbirds with rental accommodations, at the same time they make second homes for themselves. CREW selected these areas based on average prices, expected rents, and projected economic growth. We spoke to local experts who explain why the time to get in on the ground floor and set sail for big profits is now.

Believe in Belize
An increasing number of Canadians are tapping into Belize’s thriving real estate market.

Located in the middle of Central America, Belize originally failed to command the attention surrounding countries have. But in recent years, the country’s real estate market has matured and Canadian buyers are getting an eyeful.

The country’s economy is relatively stable, which is good news for buyers. According to data from the International Monetary Fund, Belize’s GDP growth is forecast to climb 2.5 per cent in 2013, and jump by another 2.5 per cent in 2014.

Why invest?
Marie-France Dayan, founder of The Zen Investor in Montreal, has been behind some successful developments in the country. As she explains, there are five main reasons why Canadian investors are warming up to Belize.

“If you look at Belize in relation to North America, it’s very easy to access, as it’s only one hour and 45 minutes from Miami.”

Investing internationally also has certain legal pitfalls that can trap investors. But there are no so such traps in Belize as their legal structure is similar to Canada’s.

“Belize is part of the British Commonwealth, and the legal system they apply is based on common law,” says Dayan. “So in terms of ownership titles, the terms are very similar to those used in Canada.”

The country is also considered a “tax heaven” in the sense that there is no capital gain in Belize, Dayan says. “When an investor sells a property, there is no capital gain, and that’s important for us here.”

More foreign investors have been discovering Belize recently, as its markets are quickly emerging as real estate hotbeds. “Belize has yet to be discovered (by investors),” Dayan explains. “There is so much potential for growth, new businesses and ventures, and the prices are relatively low compared to other Caribbean regions.”

Belize’s hot spots
The country’s top markets include the Cayo district, which includes Belmopan, Belize’s capital. Dayan notes that this area has resonated well with tenants who are interested in eco-tourism.

“I would say that the Cayo district would be the number one place to go,” says Dayan. “The return on investment in this area is very good because people are just beginning to discover it, and it’s a great place to attract eco-tourists.”

San Pedro is another hot area. This city, notes Dayan, is known to be a big hit with vacationers. “San Pedro is one of the most visited areas in Belize,” she says. “The main attraction there is the beaches. From an investment point of view, it’s a great place because you would have (tenants) pretty much all year long.”

Financial issues
Many countries have strict rules for foreign business. These rules often discourage buyers from entering their markets, and can create headaches for those who already have.

“Whenever Canadians invest offshore, it’s always tougher to get mortgage conditions,” Dayan says. “It’s difficult because if they default on their loan, the banks have no choice but to go after the property.”

Belize’s mortgage rules differ from those in Canada. “You’re looking at about 60 to 65 per cent LTV for Belize,” Dayan explains. “The interest rates are high, and can be anywhere from nine to 11 per cent and the amortization rates are only between five and 10 years maximum.”

Looking ahead
As more foreign buyers begin to discover Belize, the market is expected to respond accordingly. Several new projects are in the works, a direct effect of the growing demand from those looking for retirement homes.

“Baby boomers are looking for a place where prices are affordable and they can feel comfortable and safe,” says Dayan. “Over the next 10 years, Belize is going to have a huge capital gain as a result of more people entering and leaving the market.”

Island insights
No Canadian investor is an island, but several have been looking to the Cayman Islands. There are plenty of properties in this region that are sure to keep portfolios afloat with steady profits.

Canadian buyers looking to expand into international markets will find that there is far more to the Cayman Islands than waterskiing, tanning, and the vacation lifestyle. The British colony’s property inventory is affordably priced, leading to increased business from foreign buyers.

Economic forecasts are favourable for the Cayman Islands, with the GDP expected to increase 1.8 per cent this year and by another 2.3 per cent the following year, according to the IMF. Analysis from TradingEconomics. com is even more optimistic, with growth of 3.44 per cent and 3.53, respectively.

Why invest?
“The Cayman Islands are not overpriced like some countries where they saw 60 to 80 per cent (fall) off their prices,” explains Heidi Kiss, broker and owner of Capital Realty in Grand Cayman. “We have slow and steady gains year after year.”

The Cayman Islands’ rules for international transactions are relatively relaxed, which has attracted more foreign business to the country. “There are no restrictions on foreign ownership, (and) the Cayman Islands (government) encourages foreign investment,” Kiss says. “The title can go into your own personal name or company name.”

Also comprehensive is how the colony’s government deals with land purchased for development. “We have a very sophisticated lands and survey system where the Cayman Islands government guarantees titles,” says Kiss. “So there are no worries that someone will come along and take back your property.”

Hot spots
George Town, the colony’s capital and largest metropolitan centre, is among its best markets. The properties in this market are generally affordable, and provide good rental returns.

“A two-bedroom condo generally sells for $350,000,” Kiss says. “You can rent them out for $2,500 net, and you can earn a 7 per cent ROI from them over time.”

As many Cayman Islanders are on short-term work permits, they prefer to rent. “We have a work force consisting of people who are here on two to three year work permits,” she says. “This means that they usually rent a condo or home for anywhere between $3,000 and $5,000 a month.”

Financial freedom
While other countries in the Caribbean region have strict rules for foreign transactions, Canadians find that the rules in the Cayman Islands actually work to their advantage. “There is no income tax, property tax, or capital gain tax on any properties,” says Kiss. “Additionally, there are no onerous landlord legislations.”

The Cayman Islands did not become a real estate hotbed overnight. It took several years for the colony’s markets to reach their current state. Kiss chalks this up to the stability of the market.

“There are no surprises here, just consistent income,” she says. “We have a small population of slightly over 50,000, (and) about half of those are foreigners on work permits or retirees from all over the world.”

The Cayman Islands are primed to continue their steady growth. As the colony’s employment market grows, the demand for new housing will naturally grow alongside it.

“We have been seeing a few very large projects across the country, and employment is on the rise,” says Kiss. “So there is a definite need for more housing.

“The Cayman Islands only started to be developed in the late 70s, so there are is a lot more land to develop,” says Kiss. “The infrastructure of roads, power and reverse osmosis water treatment, along with many upscale buildings, proves that there is a huge upside still to investing in Cayman.”

Riches in Costa Rica
As one of the most economically and politically stable countries in Latin America, Costa Rica is viewed as a safe bet. We examine why now is the best time to get a slice of the action.

From its political to natural landscape, there are many reasons why Costa Rica is viewed by investors as one of the safest emerging markets to expand their real estate portfolio.

Its exports remain strong, tourism numbers are at record levels while the country has one of the highest levels of foreign direct investment per capita in Latin America. Historically, Costa Rica has been a profitable real estate investment with 15-20 per cent returns recorded year-on-year from 2000 to 2008. The financial crisis did have an impact on the market, but prices have stabilized in recent years.

Foreign investors have been capitalizing on this particular market of late with purchasing activity already up 14 per cent in the first quarter of 2013 compared to the same period last year.

Economically, Costa Rica’s GDP is expected to rise, which will fuel investor interest. The IMF indicates that the GDP will increase by 4.2 per cent in 2013 and 4.4 per cent in 2014.

Why invest?
In the aftermath of the global crisis, overinflated real estate prices dipped to more realistic and fair market values, according to local real estate agents.

“There is definitely a lot more interest in Costa Rica as investors see the long-term potential there, especially with the new airport terminal providing more access and new residential development projects,” says David Otanez from Recap Investments. “Prices have levelled off, so now is a great time to consider buying.”

Gross rental yields in Costa Rica remains generally healthy with average figures between 6 and 7.8 per cent. “The rental market is quite strong, as Canadian and U.S. snowbirds and tourists continue to flock to the country,” he says. “Investors can get from between $125 to $150 per night on a short-term rental basis. The returns in the long run are just as attractive.”

Hot spots
Costa Rica’s hot spots are the northern Pacific Coast and the southern zone. The former can be accessed by the Daniel Oduber International Airport in Liberia near the popular Guanacaste Gold Coast.

The southern zone is considered as the best place to invest due to advances in infrastructure, including a planned new airport and highway. A number of government-approved projects are expected to drive up property values and boost the region.

Much of the commercial activity is taking place in the Central Valley and San José’s greater metropolitan area.

Buying in Costa Rica
It is relatively easy to buy property in Costa Rica with a simple tourist visa. Many foreign investors set up a private business or corporation, as there is a lot of commercial freedom and protection with this method. It is even possible to establish a corporation in Costa Rica without having to obtain legal residency or citizenship. The taxes paid are based on gross income but applied to net income through this method.

Locals and foreigners enjoy the same rights in terms property ownership in Costa Rica. All potential buyers should hire a lawyer to carry out an independent title search and investigation to ensure the title details are true and accurate. When buying Costa Rican property, the title is transferred from seller to buyer by executing a transfer deed (escritura) before a public notary.

Otanez warns investors to be cautious and practical when assessing potential properties in Costa Rica. “As with all countries, there are a few good and bad projects, so due diligence is essential, especially when you are looking at the title of the land lot,” he says. “Look at regions that enjoy positive tourism figures, are near major access routes and (ensure) that the developer is legitimate.”

Once a sale has been agreed, a 10 per cent deposit is generally required and it is recommended that the monies be placed in a government-registered escrow account. Final closing can take between 30 and 60 days and it is also recommended to get title insurance to safeguard buyer interests.

Prices
Prices in Costa Rica vary from coast to coast. “You can pay anything from $65,000 to $250,000 CAD, depending whether it’s a land lot, house or new development,” says Otanez. The least expensive properties are more prominent in “up and coming areas,” such as the new developments in the South. Otanez says there has been a significant increase in residential development in recent years with many investors gravitating towards gated communities.

“With the U.S. local economies improving again, prices in Costa Rica are also rising as Americans are increasingly attracted to the region,” says Otanez. “I have seen that in some areas, but there is still a lot of value and return for investment.”

There have been an increasing number of Canadian real estate investment companies buying land in Costa Rica to construct eco-developments. Otanez says this type of investment is more suited to those who are more interested in buy-and-holds than flipping.

“The best returns are in the long run, especially as the country is set to continue enjoying increasing tourist and snowbird numbers.” With more foreigners moving into Costa Rica, demand for high end property has risen in key areas, such as San José.

Tenancy laws
Costa Rica’s tenancy laws are still very much pro-tenant. Rents can initially be freely negotiated between landlord and tenant and the minimum lease term is three years but the tenant can cancel it by serving a three month notice period.

If the rent has been agreed in any foreign currency, no yearly increases are allowed. Increases are only permitted if transactions are agreed and paid in the Costa Rican currency (the colones), while unpaid rent can be very difficult to collect.

Heating up in Honduras
To find the best real estate investment opportunities in Honduras, one must look beyond the tropical climate and attractions. Investor Randy Jorgensen did that, and is now profiting from the experience.

Successful real estate portfolios are not built overnight. It took Randy Jorgensen 16 years before he found the answers he had been looking for. A frequent visitor to Honduras, particularly the city of Trujillo, he realized there was money to be made there.

“After 16 years of vacationing and visiting, becoming familiar with the local regulations, and developing relationships, the opportunity presented itself, as Honduras began to encourage foreign investment with a focus on tourism,” the CEO of Life Vision Properties recounts.

“I felt if Honduras met all the criteria and Trujillo specifically met the ambience and location expectations I had; it would for others as well.”

In addition to being a great area for investing, the country’s economy is relatively strong. According to the IMF, the GDP is forecast to expand by 3.3 per cent in 2013 and 3 per cent the following year.

The first purchase
Originally from Moosomin, Sask., Jorgensen took the first step and built a vacation home in 1992. “My initial purchase was 42 acres with 1,000 feet of beachfront,” he says. “The property was covered with extremely thick jungle that could only be walked across by blazing a trail with a machete.”

Jorgensen knew that he faced an uphill battle with the undeveloped land. “The property was raw land with no services or infrastructure with a large swampy, low area,” he says. “The purchase price was $50,000 USD, and the original documentation stated 50 acres.”

He also faced issues with the actual size of the land. “It is common in Honduras for land size to be significantly different from documents to actual survey,” he continues. “The final size should only be accepted if a recent survey by a qualified surveyor and reviewed by a qualified civil engineer.”

Once the land survey process was complete, Jorgensen performed an extensive cleanup of the area. “After purchasing the land, plans were made to clear the property so topography could be conducted and further plans for road access, power, water, drainage where required, and choosing a site for the home,” says Jorgensen.

Jorgensen generally prefers to focus on areas that have had some development, as it makes the process easier for both investors and developers. “Clearing and infrastructure costs initially cost about $60,000,” Jorgensen says. “The low cost was mainly due to the ability to perform most of the work myself without paying outside contractors, and the luxury of taking four years to complete.”

Hot spot: Trujillo
Since entering the market 21 years ago, Jorgensen has always focused his attention on Trujillo. “I personally have begun developing property producing serviced acreages to enable ease of acquisition for foreign property owners, specifically Canadians,” Jorgensen says. “Currently, 1,500 acres are under development with 500 lots sold to date.”

Two key factors are responsible for Trujillo’s growth. The first is affordable average prices. Many properties in Trujillo can be purchased for between $200,000 and $250,000, according to the Global Property Guide.

The second reason is an expected influx of retirees and vacationers over the next 15 years. “The time to purchase at an affordable cost grows shorter each year, so anyone considering a tropical property should take action sooner than later to enjoy the lower pricing still available.”

Developing a strategy
As Jorgensen began to add to his portfolio, he developed an investment strategy that would best fit his personal needs. “When purchasing property as an investment, I first decide if it’s a short-term (3 to 5 years), or long-term (10 to 20 years) project,” he says.

He prefers the long-term approach when it comes to his holdings. He says he finds this method more financially stable and less susceptible to changes that may occur in the market.

Before entering a foreign market, Jorgensen advises investors to perform a detailed analysis of the area they’ll be targeting. “In both short– and long-term investments, use of the property needs to be clear, exit strategy developed, target market identified, and improvements to add value begin immediately,” he says. “Carrying costs need to be included in the projections and personal use needs a value assigned.”

Obtaining finance
One of the biggest obstacles Canadian investors face with international properties is obtaining financing. Jorgensen experienced a litany of financial issues when he began investing in Honduras, but he was able to find some solutions over time.

“Leveraging equity in current assets, (and) then using the funds to purchase the investment property is the most common (solution), followed closely by paying cash from (your) savings,” he reveals. “Vendor financing is sometimes available, particularly on serviced lots and raw land, but improvements, such as home building, will need financing as above, or be paid by cash.

“I usually only leverage the property when a clear income is being, or can be, realized that will carry the debt,” Jorgensen says. “I usually only consider this (for) commercial properties or long term residential rental properties, and only if I need the cash for a specific purpose; otherwise, I just enjoy the cash flow and income they produce.”

Although his portfolio has been profitable, Jorgensen believes his holdings have the potential to boost the Honduran economy. “(They) will provide a much-needed industry that will support local residents, create reasonably-paying jobs for young people, create government revenue to improve public services, improve and expand recreational activities for vacationers and visitors and expand product and service selection to improve living conditions for local residents,” he says.

Treasure islands
The Turks and Caicos Islands, located north of the Dominican Republic, is emerging as one of the fastest-growing markets in the Caribbean region.

Why invest?
A rapidly emerging market, Turks and Caicos is only beginning to attract Canadian investors. “Currently, the prices are down to what they were prior to 2008, when the economic situation in most of the world went down,” explains Kathryn Brown, Chief Operating Officer of ERA Coralie Properties.

The numbers tell the real story about the region’s market. “If you want a two-bedroom condominium, you will probably pay between $450,000 and $800,000, depending on where the development is, and the size of the unit,” she says.

Single-family homes are also attractively priced. “If you’re buying a home, you may be able to get a two-bedroom home for $250,000,” says Brown. “Most properties are sold fully furnished. The reason for this is because there is not often enough room to move furniture.”

She also believes the returns will increase in time. “I would say that the properties here can provide Canadians with good returns,” says Brown. “Going forward, the returns will be even better, and our values are already starting to increase.”

Dealing with financial issues
Many countries have stringent rules for conducting business. However, this is not the case in the Turks and Caicos Islands, as there is far less for investors to worry about there.

“We have no taxes,” Brown says. “There is no property tax, income tax, or any other tax. There is, however, a one-time stamp duty that is paid at the time of purchase, depending on the price.”

The Turks and Caicos Islands rely on the British legal system for business dealings, similar to the Canadian system. “We are a British protectorate, which means that we are under British common law,” says Brown. “So when your name is on the deed, this guarantees ownership of property.”

Sourcing finance from financial institutions there is also much easier. “Our banks here are all Canadian banks,” Brown reveals. “Canadians can get access to some of the major Canadian institutions, including Royal Bank, Scotiabank and CIBC.”

Looking ahead
The Turks and Caicos Islands weren’t always a popular investment locale. “Ten years ago, most Canadians had never even heard of the Turks and Caicos Islands,” Brown says. “And now, when it’s mentioned, people say the opposite. We have a great reputation, and anyone that comes to visit comes home and tells their friends and family about it.”

Brown is optimistic about the colony’s potential. “I believe that the future of the Turks and Caicos Islands is very bright,” she says. “We are a developing country, and we’re just getting started. We will never be like the Dominican Republic or Jamaica, but the islands are trying to maintain their integrity as being a paradise. And that’s what people expect when they come here.”

From Canadian Real Estate Wealth Magazine, a monthly publication focused on building value through property investment, covering topics such as values and trends, mortgages, investment strategies, surveys of regional markets and general tips for buyers and sellers.

Dreyer Group Home Series: How to Save on Your Vancouver Home Heating Costs – Consult with Bruce Coleman, Vancouver Mortgage Broker

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How to Save on Your Vancouver Home Heating Costs

Winter is almost upon us and the thermometer is a witness to the diminishing temperatures. All of you who own homes also know that your heating costs are going to climb as a result.

That’s the bad news. The good news is that there are ways and steps that you can take to lower those heating costs and the measures you take can vary according to your budget.

Some of the following tips won’t cost you a dime while others will only involve a small investment.

No Cost Money Saving Heating Steps

Thermostat and Water Heater

One of the obvious first things you can do to lower your heating costs is to lower your thermostat. It’s a no-brainer but here’s something that maybe you didn’t know about. Most experts say that as a rule of thumb you can save as much as 3% on the monthly bill for each degree that you turn it down.

If you’re going to work, skiing for the weekend or simply to sleep each night then why no lower your thermostat down to about 10 degrees. Between your sleep time and work time, this will work out to about 16 hours each day from Monday to Friday which could to a savings as much as 14% per month.

You can also adjust the temperature on many water heater models. Lowering it by a mere five degrees will not be very noticeable and will save you money.

Fans and Fireplace/Wood Stove

Be wary of any kitchen or bathroom fans which expel air outside. Don’t let them run needlessly because they’re bleeding off your heat.

If you have a fireplace or wood stove then make sure that the dampers are fully closed when not being used. If they are not in use then this is just another way that heat can seep outside.

Heating Vents, Curtains and Rooms Not in Use

Check your heating vents to ensure they are not being covered up or blocked by rugs, furniture or other items.

Curtains can also help save some money. Open curtains which are facing the sun and close curtains which don’t. At night time, close all your curtains as that will help reduce the effects of draughts and keep heat inside.

If you aren’t using a room such as the bathroom, a spare room, bedrooms or other rooms, then ensure you keep the doors closed because you’re simply spending money on heating rooms that serve no purpose. If they have individual thermostats then make sure they are either turned completely off or sufficiently lowered.

Low Cost Heat Savings

If you’re a bit handy with tools then you can do many of the following on your own.

Fixing Draughts and Heat Leaks

Check around doors and windows, and electrical outlets with either a candle or piece of incense. It will tell you if have an air leak or draught. Many leaks can be fixed with any of the following that can save as much as 10% on your heating costs.

• Replace old or damaged caulking as poor caulking can see a lot of energy seepage.
• Add door sweeps or weather strips around doors because houses do settle and the frame might be just a smidge out of alignment.
• Buy programmable thermostats. It’s easy forget to turn thermostats up and down as needed, so buy one that you can programme and change the hours and temperatures to your needs so you don’t have to worry about it.
• Consider outlet gaskets for leaky electrical outlets
• Buy a thermo blanket for your water heater and consider investing in swaddling material for your hot water pipes.
• If your windows are only single paned, then consider adding on some specialized plastic film
• Purchase a shower-head which is low flow and won’t waste as much hot water. There are also sink faucets which can do the same thing to save on your hot water use.

If you’re concerned about your heating costs, there is a lot you can do to reduce your bill but it’s all comes down to you.

101 Series: Advice on How to Relocate to Another City – Consult with Bruce Coleman, Vancouver Mortgage Broker

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Advice on How to Relocate to Another City

Many professionally employed Canadians will encounter situations where they are being transferred to Vancouver or relocated to another city.

They may have changed jobs or recently been hired for a new position in another city. A good many of these urban dwellers already own a home and want to continue with home ownership.

Whether you’re moving from another city to Vancouver or just the opposite and are looking to buy a home in that new city, here a few tips to help you get relocated more smoothly and quickly.

Research your New Location Beforehand

Needless to say, the Internet is the best place to start. You can get everything planned out in advance by checking out many of the applicable local websites beforehand. Some of the ones you might to research before your move include:

• Municipal websites – Start with the official city website and you will get a good detailed synopsis of what the city is like and what it has to offer. You ca use their maps to get a gander at the neighbourhood zoning as it relates to your place of work. These maps will give you an idea about transportation access, availability of public transportation, schools and any other services you require.
• Real Estate Brokers – There is an abundance of available real estate agents with their own websites that can give you a snapshot of their experience. When you find one that suits your needs relative to the type of home you want, then you can email them whatever questions you have so you can initiate your search for a new home quickly.
• Mortgage Broker – You will need to finance your new home and you want the best rates and terms for your new mortgage so you will want to find an experienced broker such as myself to help you find the most suitable lender.

Finding Temporary Digs

Relocating to a new city means that either you alone, or you and your family will need some temporary accommodation for the transition period. Just about every city has an abundance and variety of accommodations that can be rented monthly. It also depends on what your employer will cover.

For some cities, finding temporary accommodation can be a challenge especially if the city you’re moving to is especially active such as Vancouver, Calgary or other hot spots. Temporary accomodatins can be anything ranging from executive apartments which you can lease on a temporary basis, an actual apartment which allows for short leases, or a motel/hotel with kitchen facilities.

As you or your family may be required to live in those accommodations just remember that many of your home furnishings and possessions may end up being in temporary storage in the meantime. This means you will have to very selective about the things you will need to have on hand for the duration.

Buying a new home along with selling your previous home will take time so plan for a temporary stay of anywhere from 1 month (if you’re really fortunate) to as long as 3 or more months before you can move into that new home.

Additional Things to Research

When you’ve settled into your temporary accommodation, and as your realtor begins selecting homes for you to view and your mortgage has been pre-approved, there are several other areas which you must prepare in advance including:

• Finding a real estate lawyer. Your real estate or mortgage broker may have some suggestions, but again you do most of your own research online.
• Find an insurance broker. If your current insurance broker isn’t a national brand then you will also want to find a local agent to get title insurance and your home and contents insured.
• Find a Home Inspector. An experienced home inspector should also be obtained to ensure that any prospective home you’re thinking of buying is free of problems and won’t end up being a “money pit.”

Mortgage referrals to banks could lead to conflicts of interest – Consult with Bruce Coleman, Vancouver Mortgage Broker

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Mortgage referrals to banks could lead to conflicts of interest

Where are the Top Prices for Homes and Condos in Canada? – Consult with Bruce Coleman, Vancouver Mortgage Broker

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Where are the Top Prices for Homes and Condos in Canada?

Those of you who like to invest in real estate in Vancouver should also realize that Vancouver doesn’t necessarily have to be the only city in Canada where you can invest in real estate. If you’re buying property as rental income or strictly as an investment there are other markets you might want to consider for the single family home or condo.

If you’re wondering what’s happening in the housing market elsewhere in the country, here is brief synopsis of what’s happening in some of the other major urban markets.

Halifax Housing Market

Over the past year both condos and 2 story homes saw the biggest gains with both seeing an average price increase of 5.9%. A two story home in Halifax is valued roughly at $329,333 while a condo is $214,000. Prices for a detached bungalow rose 2% to $299,000.

St John’s Housing Market

In St John’s there was a significant price appreciation for 2 storey and detached bungalow homes along with condo price increases. All three saw an average increase of around 12.1% right across the board. A two storey home is worth around $329,333, a condo is valued at $214,000, while a detached home rose to $299,000

Montreal Housing Market

Prices in Montreal saw a slow start with some stabilizing later on. Buyers were more preferential towards 2 storey homes which rose 3.9% with an average price of $403,007 and the market saw less demand for detached bungalows which had a meagre increase of 0.6% and were valued at $289,306. Condos saw an increase of 1.6% and are valued on average at around $239,819.

Ottawa Housing Market

Ottawa saw its major preference in the area of high end price homes. A 2 storey home rose 2.4% to $401,500 while a detached bungalow rise 2.3% to $398,417, but prices for condos actually declined by 1.1% to $259,000.

Toronto Housing Market

Toronto started slow but saw an increase later on in the year as the prices of a detached home which rose 5.0% to $577,563 and 4.1% for a 2 storey home which climbed to $678,016. Condo prices were relatively flat and rose a modest 0.3% to $355,483.

Winnipeg Housing Market

Prices in Winnipeg remained relatively flat until the third quarter when the price for 2 storey homes zoomed up to 8.6% for an average price of $346,765. A detached bungalow increased by 4.2% to $307,069 and condos increased by 3.5% to $195,226.

Regina Housing Market

Housing and condo prices rose early but began levelling off later on in the year. The biggest gain was for 2 story homes which rose by 3.5% to $372,250 while prices for detached homes were relatively flat at an increase of 0.4% and average $336,500. Condo prices rose by a modest 0.9% and are valued on average at $212,622.

Calgary Housing Market

Calgary saw a problem with low housing inventory and an increase in corporate workers and saw a detached bungalow rise by 7.2% to an average of 465,411 while a 2 storey home rose by 3.4% to $465,411. Condo prices in Calgary rose by 5.6% to an average condo valued at $446,411.

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Tips on How to Profitably Flip Vancouver Real Estate – Ask Bruce Coleman, Vancouver Mortgage Broker

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Tips on How to Profitably Flip Vancouver Real Estate

One way some people like to make extra income is to buy and flip real estate for a profit. There are a lot so-called gurus who make this enticing as a quick-get-rich money scheme, but you can get jammed up real bad in a financial bind if you don’t know what you’re doing.

Flipping real estate for profit is very doable, but before you take the plunge here a few tips to get you started.

Do Your Research

Your first important step is to be very clear about your goals and whether you plan to do either of the following:

• “Quick Flip” (buy, fix-up and sell a property in a year or less)
•  “Long Flip” (buy, fix-up, rent property and then sell several years down the road).

Any property you are thinking of buying has to answer one vital question – “Why will this property be worth more after I buy it and fix it up?”

If you’re looking for a quick flip then you want a property that is clearly undervalued in relation to the neighbourhood. You also have to study the and analyse your market before you take the plunge because some price range properties are going to moving faster than other price range properties.

You have to know what price range of home you need to focus on and which markets to concentrate on when looking for that right property to buy and flip.

You might want to look for any neighbourhood which may have had the reputation of being considered “run down”, but is experiencing a process of rejuvenation.

Understand the Real Estate Cycles

There’s no real estate crystal ball that will guarantee that prices and interest rates will either rise or fall, so you have to be prepared to consider a worst case scenario. You can take your chance with what the real estate pundits are predicting, but just remember that they don’t always get it right.

Although things might appear rosy now, just remember that the Vancouver market is tied into the Canadian market which is tied into the American and the global market. What happens in Asia, Europe or the U.S. can turn the whole market upside down quickly.

Like they use to say way back when “Don’t put all your eggs in one basket.” That means you have to have to some reserve cash on hand in case things go south.

Quick Flip Versus the Long Flip

A lot of people who haven’t done their research have been influenced by real estate get-rich schemes and the quick flip, get the idea that all they have to do to make some money is buy a house, fix it up and then flip it quickly for a nice tidy little profit.

Although the quick flip is tempting for many there are some significant drawbacks. You have to remember that you will have to invest the money to adequately fix the home up so it will entice someone to buy it. This means you have to spend some more money and put in a lot of elbow grease of your own which comes off any profit you might make.

The other big pitfall that many people don’t realize about the quick flip such if you buy then sell a home in under a year is that you also have to pay taxes on any money because it is seen as income.

However, on the long flip, you reap the benefits of a greater profit not only from the renovations you make, but also on rental income which you derive until the time is ripe to sell the home. You also have the additional advantage of reaping a greater benefit from additional profit you can make from property appreciation over a longer period of time.

If you keep a home on hold, then when you sell it your profit won’t be taxed as income but will be viewed rather as capital gains which is less.

Why no rate hike means variable mortgages are safe again – Consult with Bruce Coleman, Vancouver Mortgage Broker

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Garry Marr | More from Garry Marr | @DustyWallet

A signal from the Bank of Canada that it is not raising its key lending rate any time soon, coupled with the likelihood of falling mortgage rates, could be enough to keep the latest housing rally going.

There have been signs the housing market is in recovery mode with year-over-year sales rising in many markets, albeit generally below 10-year averages. Analysts have called it a short-term blip caused by consumers rushing to buy to  take advantage of pre-approved mortgages signed 120 days ago when long-term rates were lower.

But with the Bank of Canada signaling Wednesday it won’t be raising rates — its neutral stance could even mean lower rates — consumers can safely slide back into variable mortgages tied to prime which tracks the central bank rate.

The short-term rate option and the possibility long-term rates will follow has people worried the market may be recovering too fast for the taste of Ottawa, leaving Finance Minister Jim Flaherty with no choice but to tighten lending rules again.

“It’s possible interest rates will go down,” said CIBC deputy chief economist Benjamin Tal, adding there’s a huge amount of mortgage debt already in the pipeline that was created when people took advantage of rates they were pre-approved for in the summer. “I’ve seen what is in the pipeline in mortgage activity and you won’t believe the numbers when it is official.”

With no panic to buy, the question is whether people will be encouraged to continue to take on more debt or slow down their spending if the economy slows?

CMHC offering tailored outlooks for various Canadian markets – Consult with Bruce Coleman, Vancouver Mortgage Broker

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Canada Mortgage and Housing Corporation (CMHC) is offering a number of housing outlook conferences in various Canadian cities; each offering a useful and practical information session that will help brokers understand trends unique to each market.

“CMHC’s Housing Outlook Conferences offer access to timely, reliable and unbiased information,” Sam Carnovale, CMHC Key Account Manager, Brokers told MortgageBrokerNews.ca. “Each conference program is tailored to specific local markets and can help mortgage brokers to: understand new trends in the marketplace, identify new markets and investment opportunities, determine consumer housing preferences, make business decisions and earn education credits.”

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Kicking off on October 31, CMHC will hold five Housing Outlook Seminars across Ontario and six Housing Outlook Conferences across Canada; each session is tailored to the individual market in which it takes place.

On November 12 in Toronto CMHC economists and market analysts will focus on the “Echo Boomer”, and dissect how demographic and geopgraphic variables impact home buying trends in Toronto. According to the event’s profile:

“Echo Boomers MATTER to the housing market; their decisions about renting or buying directly affect housing demand and the economy. So… Who is this Echo Boomer? How will their socio-economic profile influence the housing market? And, what available home ownership options will meet their needs?”

The complete listing of conferences and seminars can be found below.

Housing Outlook Conferences

Vancouver — November 1, 2013
Victoria — November 18, 2013
Calgary — November 19, 2013
Edmonton — November 26, 2013
Québec — November 26, 2013
Montreal — November 28, 2013

Housing Outlook Seminars

Ottawa — November 7, 2013
Toronto — November 12, 2013
Hamilton — November 19, 2013
Waterloo Region — November 27, 2013
London — October 31, 2013

Where to buy now We tell you exactly which neighbourhoods are set to skyrocket in value – Ask a Bruce Coleman, Vancouver Mortgage Broker

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“Double, double, toil and trouble.” Written over 400 years ago by the Bard, this phrase from Shakespeare’s infamously dark play, Macbeth, could just as easily describe Canada’s real estate market in recent years.

On one side, there are international economists—and their much publicized reports—declaring the market to be overvalued and due for a sudden, corrective crash. Then there are the local analysts who oscillate between doom-and-gloom predictions and the potential for a soft landing. Caught in the middle are prospective homeowners and real estate investors who are just trying to negotiate a good deal.

That’s where MoneySense can help. While we don’t believe anyone should rush to get into the real estate market, we do think there are still good deals to be found. To help identify those deals, we performed a groundbreaking analysis of the real estate market to find out which neighbourhoods are set to soar in value in five of Canada’s largest cities.

Photo gallery: 15 Best value neighbourhoods

The first thing we looked for was value. Armed with detailed data from local real estate boards, we identified neighbourhoods where home prices are cheap when compared with adjacent areas and the city as a whole. Next we looked for momentum. By drilling down into one-year and three-year price appreciation statistics for various neighbourhoods—numbers that in some cases weren’t previously available—we were able to identify which areas of the city had the fastest rising home prices. Of course, just because home prices have been on the rise, doesn’t mean they will continue to do so, so we turned to those who know each city’s markets best—local real estate agents—to find out where each neighbourhood was headed.

Our realtor panel, consisting of more than 35 experts (listed on p. 45) helped us factor in the countless intangible factors that will impact these neighbourhoods over the next three years. These local real estate experts are up to speed on projects such as the building of new transit lines (Toronto), the construction of a sports arena (Edmonton) or the creation of a new university campus (Calgary). These agents have a good sense of the mood in each neighbourhood, and told us which places are headed for further gains—and which ones have already crested as buyers move on to lower-priced hot spots nearby.

Our research will cheer up any house hunter, as it means that despite a capricious market, you can still find real estate bargains. But it comes with a caution: as with the stock market, past results are not always indicative of future returns. Regardless of what professionals and the media may say, no one knows with absolute certainty what a city’s economy will be like in three years, whether a development plan will be scrapped, or if some other key factor will dramatically change.

Still, we think our analysis makes a great starting point for all Canadian house hunters. Our list should give a leg up to real estate investors and prospective homeowners across the country. There are still hundreds of thousands of people across the nation actively looking to buy, and those who manage to purchase a home in a neighbourhood that’s on the rise will be in luck. Years later many will look back at their purchase and realize it was one of the biggest single factors in building their wealth.

We all know how expensive real estate is in Greater Vancouver. But does it mean buying a home there is a bad investment? Not necessarily. At present, Vancouver’s unemployment, at 4.5%, is significantly better than the national average of 7%. While prices in the city have dipped, there are still neighbourhoods that are headed up.

Communities in New Westminster, Burnaby and Coquitlam all showed excellent long-term value, but the five neighbourhoods we feel will gain the most in the next few years are all inside the City of Vancouver. Best bets are Mount Pleasant (West and East), Fairview, Main and Fraser.

While the average price point for West Mount Pleasant (the area west of Ontario Street) was over $1.3 million, our realtors felt there was room for further increases. The west side of Mount Pleasant borders on Cambie Village and the SkyTrain’s Canada Line. It also has easy access to downtown, by transit, car or bike. “Those reasons alone make this area desirable,” says Patrick Weeks, a realtor with Re/Max Select Properties. But when you add in eclectic stores, heritage buildings and artistic residents, you have a recipe for further appreciation.

Kevin Poskitt, a 28-year-old operations director, agrees. Poskitt bought his 540-sq-ft loft in West Mount Pleasant two years ago, using realtor Gina Rossi, and loves his home’s exposed concrete design. “It’s both stylish and convenient,” he says. “My fiancée Kristen and I love it here.”

East Mount Pleasant, our number five neighbourhood, is also worth exploring. Houses just east of Ontario Street are typically 20% to 30% cheaper, with the average sale price in 2013 just over $800,000.

Those wanting to move closer to the beaches—but not pay Kitsilano or Point Grey prices—should check out Fairview. Located between Kitsilano and Mount Pleasant, Fairview’s average home price is 36% less than comparable homes directly to the west. This potential value and its proximity to downtown has meant an almost 6% appreciation in the last year alone. “This area is very walkable, which is a big attraction,” says Weeks. Many of the buildings are older, which gives people willing to work with fixer-uppers an opportunity to add a bit of sweat equity. “Anyone buying an older home would certainly see an upside in the next few years.”

Finally, consider Main—a residential area located a few blocks east and west of the popular Main Street strip. Like Mount Pleasant, homes on the east side sell for $300,000 to $400,000 less than their west-side counterparts, but both areas have great access to good schools, tons of independent shops and restaurants and Queen Elizabeth Park.

Don’t let the threat of long, cold, dry winters deter you from buying and investing in Calgary real estate. Like the Chinook winds that warm the city’s winter days, this city’s growing population and steady employment options make it a hot spot for professionals, young families, and those interested in cashing in on a steady real estate market. “The city definitely provides great neighbourhoods for families as well as communities that attract young, urban professionals who want to enjoy an outdoor lifestyle,” explains Nancy Ball, a realtor with CIR as well as a professional home stager.

The first on our list in Calgary is the Southwest (SW) community of Lakeview. “The homes in this community are in a phenomenal location,” explains Ball, who grew up in the community when her parents were house-flippers in the 1970s. Nestled between Glenmore Trail, Crowchild Trail and 37th Street (the westerly border of the Calgary city limits), the neighbourhood was originally named because of the view that area residents had of the Glenmore Reservoir—a large, artificial reservoir on the Elbow River that’s a primary source of drinking water for the city. The southern tip of the community is bordered by the Calgary Canoe Club and the Calgary Rowing Club. Numerous biking and hiking trails are scattered throughout the 2.3 square kilometres of mostly single-family, detached homes. Despite everything this area has to offer, housing prices are 4% lower than the average home in the Southwest quadrant of the city, lending value to an already established neighbourhood.

The next neighbourhood on our list is Spruce Cliff. Established in 1950, Spruce Cliff is also located in the SW quadrant of Calgary, with its northern boundary touching a swath of train tracks and the Bow River, and the southern tip bordered by Bow Trail. Unlike Lakeview, almost half of the dwellings in Spruce Cliff are condos or townhomes—testament to the amount of development and growth this area has experienced in the last decade.

One of Spruce Cliff’s newest residents is Craig Dougan, who recently accepted a three-year job contract that took him from Vancouver to Calgary. A construction foreman, Dougan wanted to buy in the downtown core, but wasn’t thrilled at the smaller spaces and bidding wars. Instead, Dougan settled on a two-bedroom, two-bathroom condo in the Spruce Cliff neighbourhood. “I’m minutes from downtown and the building has a pool, shopping nearby and a brand new Light Rapid Transit (LRT) station right across the street,” says Dougan. He bought the place to live in, but is considering keeping the condo when he moves back to Vancouver in a few years. “It’s a great investment spot and a chance for myself and my wife to build up some equity.”

Realtors like Ball have known for years that Spruce Cliff was a high-value area. And today, given the recent completion of the nearby LRT west line and the neighbourhood’s proximity to Westbrook Mall, a golf course and downtown, Ball anticipates a further jump in prices. “Last year, there were 28 sales in this area. To date this year there are already 60 sales—and counting.” The appeal is that you can walk to everything, says Ball. From a financial perspective, the neighbourhood offers homes that are, on average, about 9% cheaper than comparable properties in neighbouring communities.

Next on our list is Varsity Village—voted the best community to live in by local media in recent years. Located in the Northwest quadrant of the city, this pedestrian-friendly development was built 50 years ago. The result is a neighbourhood with park-like settings and rear walkways that connect neighbours, streets and green space. Varsity Village is close to the University of Calgary and Foothills Hospital, as well as the new Alberta Children’s Hospital. “This family-oriented neighbourhood also boasts one of the few truly organic markets in the city,” says Ball.

While Edmonton is not exactly a flashy city, it’s enjoyed unprecedented growth in the past decade thanks to the resource industry and infrastructure projects, such as the building of a new ring road. The boom brought Randy Spenceley, a pipe-fitter from Red Deer, Alta., to Edmonton. Twelve years later he doesn’t regret his decision. “I like to invest in real estate in some of the rougher neighbourhoods,” explains Spenceley. His preference is for homes in North Central Edmonton, like Elmwood and Parkdale (in Zone 5) andSpruce Avenue and Queen Mary Park (in Zone 8).

Many of these neighbourhoods are still in transition, and “this attracts more interesting renters,” he says with a laugh. “But even if they are more interesting, they still pay their rent, because in Alberta even interesting people make money.”

According to our analysis, the best neighbourhoods to watch fall within the North Central and Northwest regions just outside the city’s downtown core. Topping the list is an area known as Zone 7, which includes the communities of Inglewood, Kensington, Westmount and North Glenora. On average, homes in these neighbourhoods were priced almost 8% cheaper than the rest of the city and in the last three years have appreciated by almost 13%. “There’s a lot of character in these western neighbourhoods,” says Todd Millar, president of real estate firm Glenn Simon Inc. “It’s a funky, hipster area that attracts professionals with some money.” Its appeal is the lower price point for single family homes and established amenities, Millar says. “It’s not as rough as the downtown core, but it’s relatively close, and residents have access to local schools, medical clinics and stores.”

That’s exactly what Allison Betton, a 48-year-old government worker, and husband Kevin MacMillen, 52, liked about Inglewood when they bought their 1,100-sq-ft, 1930s bungalow there earlier this year. “It needed a bit of tender loving care,” Betton says. “We love that we can bike to our jobs downtown and that there’s a park just around the corner.”

Immediately to the east and closer to the downtown core is Zone 8. Known as Central Edmonton, the neighbourhoods with the most appeal include Prince Rupert and Queen Mary Park. “It’s an area where people moved to in the 1940s and 1950s and, now, decades later, rarely sell,” explains Wally Fakhreddine, a realtor with Re/Max. That’s because the neighbourhoods are close to the Northern Alberta Institute of Technology, meaning many homes rent out basement apartments to students. It’s also close to the Royal Alexandra Hospital and Kingsway Mall, the second largest mall in Edmonton.

On paper the zone’s real estate prices dropped over the last three years, but this was due largely to a large number of newly built condos hitting the market and lowering average prices. While this may skew the numbers a bit, it’s also a great sign that the area is growing in popularity and value. “You will see density grow in this area. It’s only a matter of time,” says Fakhreddine.

If you’re more interested in Edmonton’s South Side, you’ll want to consider our next selection—Zone 15. Known colloquially as ‘University,’ the best neighbourhoods, in terms of future appreciation, are Garneau and Allendale. This area has appreciated almost 7% in the last year and homes sell for 10% less than surrounding areas. Don Sutton, a realtor with Homes & Gardens Real Estate, believes this is one of the most attractive areas to buy in Edmonton. “It’s popular because of its proximity to the university and access to downtown.” This also means many of the homes are rental units rather than single family homes, so those interested in investing some sweat equity could realize strong appreciation.

If you’re looking for a city with rock-bottom real estate prices, then keep driving. Despite endless chatter about an overheated market, Toronto housing prices have continued to climb, with some homes attracting multiple bids and selling for $100,000 or more over list price.

While our top two Toronto neighbourhoods—Wychwood and the Junction Area—are no strangers to bidding wars, we still feel these areas offer great opportunities for near-future appreciation. Why? Despite Wychwood homes selling for almost 63% more than the average-priced Toronto home, these properties are still 19% cheaper than homes in neighbouring areas. That’s because Wychwood is nestled next to two of Toronto’s more expensive urban communities, Casa Loma and the Annex. Close proximity to wealthy neighbourhoods, access to transit and the downtown core, excellent green space, and a newly built community space (known as Wychwood Barns) all make this an under-appreciated area. “There’s a lot of inexpensive housing in this area that people are only just starting to discover,” says Laurin Jeffrey, half of a husband-and-wife realtor team that works out of Century 21 Regal Realty. These days even a smaller, two-bedroom house will cause a bidding war before being sold for around $550,000. “But to live so close to downtown, the price tag is still cheap,” Jeffrey explains.

If the average price in Wychwood, at just under $827,500, is still a bit much, consider further west in the Junction Area. Average prices for homes here were a smidge over $534,500 as of mid-2013. Aleksandra Oleksak, a realtor with Sage Real Estate, believes Junction homes will continue to appreciate because of their proximity to High Park and Roncesvalles—two west-end Toronto neighbourhoods that have experienced dramatic appreciation over the last five years.

Emily Wilkinson, a 48-year-old entrepreneur, bet that the Junction would continue to rise last year when she bought a storefront property with an upstairs apartment, with the help of Realtor Katrina McHugh of Junction Realty Inc. “I’m going to live upstairs and am in the process of renovating the Caboose café downstairs,” Wilkinson says. “I see a lot of potential here.” Another draw is the local food scenesters who have made this area their home. “There are great parks and local markets and a fabulous organic health food store,” says Oleksak. “All this has made the area trendy.”

The Yonge-St. Clair neighbourhood—the third community on our list—is also seeing price momentum because of its proximity to wealthier neighbourhoods. Despite its steeper price tag—average homes cost just over $1.1 million—the area has realized a 30% price appreciation in the last year. “Buyers know this area is well-established and well-serviced by local restaurants, plus it has access to public transit, parks and amenities, but the price point to get in is much cheaper than Lawrence Park to the north and Rosedale to the south,” Oleksak says. The real value in this area is in new condos and older, under-renovated homes, explains Daniel Bloch, a Harvey Kalles realtor.

Two other neighbourhoods to consider are Englemount-Lawrence in the northwest, near the Allen expressway, and Moss Park, an area going through massive gentrification. Englemount-Lawrence is right beside the popular, and very expensive, Forest Hill neighbourhood. That means residents here can purchase a good-sized bungalow, on a fairly big lot, for as little as $600,000, as opposed to a Forest Hill semi for around $950,000. Based on our statistics, homes in the Englemount-Lawrence area were priced 40% lower than Forest Hill, on average, but with similar access to schools, shopping and transit.

For near-future appreciation Moss Park is the neighbourhood to buy. Every realtor we spoke to considered it an excellent area to invest, mainly because there’s been so much development, with more being planned. In the last year alone property values have appreciated by almost 12.5%, while the average price for homes in this area is still 27% less than the average-priced home in the City of Toronto.

A small slice of Europe on this side of the big pond, Montreal has been dubbed Canada’s sexiest city. With a jam-packed festival season that includes the highly rated Just For Laughs comedy festival and the Festival International de Jazz, along with an array of local boutiques, restaurants and bistros, Montreal offers something for everyone—as long as you can find a job. While the national unemployment rate hovers at around 7%, Montreal’s unemployment rate sits at 8.2%. Still, the city saw a 4% rise in its population from 2011 to 2012 and announcements of inner-city rejuvenation—including the new McGill University Health Centre—are helping bolster property prices. Real estate is still cheap compared with other major Canadian cities—the average price of a home on Montreal Island is $481,386, and if you broaden the boundaries and look at the Greater Montreal Area, including the North and South Shores, the average home price is $324,595. “It’s comparatively cheaper than say Toronto or Vancouver, but we also battle to attract jobs,” explains Jeffrey Baker, a realtor with Royal LePage Dynastie.

The best real estate opportunities right now are on the island itself. First on our list is the Rosemont/La Petite Patrie area, known locally as Little Italy. “This area is very, very hot,” says Baker. A big reason is that the neighbourhood is on the northern border of the Le Plateau/Mont-Royal area—a vibrant, popular and expensive place located near downtown. “Rosemont/La Petite Patrie isn’t a Plateau want-to-be,” says Baker. “It has its own distinct character. But many people who start out renting in Plateau end up buying here.”

In fact, this is what Matthew Taylor, 50, and his 40-year-old Rosa De Leon did earlier this year. “We bought in mid-December after living and renting for 20 years in Plateau-Mont-Royal,” says Taylor, a CEGEP teacher at Dawson College. While the couple originally wanted to purchase in Plateau, they found they were priced out of the market. “Everything we looked at within our budget was far too small for a family of four,” says Taylor. That’s when the couple started looking at other neighbourhoods, eventually settling on a duplex in La Petite Patrie. “We really love checking out the local restaurants,” says Taylor.

They aren’t the only ones. In the last three years, as the neighbourhood has become popular with buyers, prices have zoomed up 23%. “This is a high density area with lots of picturesque homes,” Baker says. In recent years many older textile buildings were converted into lofts, explains Amy Assaad, a Royal LePage Heritage realtor. This provided great first-time buyer opportunities, while helping to gentrify the neighbourhood.

If the average property price of $468,000 is a bit daunting, consider our next top neighbourhood ofVilleray/Saint Michel/Parc-Extension. Directly to the north, this large area has a population of 142,000 residents. The main draw is the neighbourhood’s affordability. Average property prices are more than $100,000 cheaper than neighbouring communities and the area is experiencing dramatic growth. “Lots of condo conversions are taking place in this community,” Assaad says. David Schneider, a Sutton Group Immobilia realtor and history-buff, explains that historically the neighbourhood has been one of the poorest urban communities in Canada. “Cheap rents meant students have been living here for decades. This, in turn, has made the area cool.”

The third neighbourhood in our Montreal ranking was South-West (also known as Sud-Ouest). Homes in this area are 11% cheaper than the average Montreal Island home, but area prices have appreciated 40% in the last three years. “I’ve been buzzing about this neighbourhood for the last five years,” says Schneider. “Property values here are undervalued.” It’s an opinion shared by Nikki Tsantrizos, 29, and her partner, Steve Lavigne, 34. Two years ago, the couple started looking in the St. Henri district of South-West for a place to buy. “We’d rented in the area for 10 years and despite being a rough area, just loved it.” That was two years ago. Now, a full reno later, the value of their home has risen 40%. “When we bought there were strip clubs, hotdog stands and poutine shops,” says Tsantrizos. “Now these have been replaced by trendy cafes and boutiques.” But despite being close to downtown, the canal and the Atwater Market, this area’s reputation has been marred by social housing projects. Even so, recent developments are starting to put the community on the map. For instance, a high-tech hospital—slated to open in 2015—is prompting speculation on future home prices.

Two other neighbourhoods to consider are Verdun and LaSalle—both on the southern tip of the island. While Verdun is an older neighbourhood (originally settled by the Irish) it’s got a lot of potential. Despite a three-year appreciation of 22%, families may be leery of the area, given its high crime rate. Still, with its close proximity to the canal, downtown, the Métro (Montreal’s subway system) and Concordia University, it’s only a matter of time before the area experiences true gentrification. Homes in LaSalle are also rising, with an 11% increase in the last year alone. “Though it’s much more suburban than the other four neighbourhoods—and not as well-served by transit—it provides a less dense community that’s very family-oriented,” Schneider says. It’s also a place known for having some of the best shopping in the city.

—Additional research provided by Allan Tong and Julie Cazzin

Crunching the numbers

To develop our Where to Buy Now rankings, we crunched raw data provided by the real estate boards of Vancouver, Edmonton, Calgary, Toronto and Montreal. Then we polled and interviewed the following local real estate experts to find out which neighbourhoods would continue to increase in price.

Vancouver Naz Allahyari (TRG-The Residential Group Realty), Donna Leyland (Re/Max Select Properties), Judy Sehling (Sutton Group West Coast Realty), Brian Vidas (Sutton-Centre Realty), Patrick Weeks (Re/Max Select Properties), Ken Wyder (Re/Max Select Properties)

Calgary Nancy Ball (CIR Realty and First Glance Home Staging), Cody Battershill (Re/Max House of Real Estate), Jared Chamberlain (Royal LePage Foothills), Kirby Cox (Royal LePage Foothills), Monika Furtado (Royal LePage Foothills), Mike Leibel (CIR Realty), Jim Sparrow (Royal LePage Solutions)

Edmonton Wally Fakhreddine (Re/Max Real Estate), Kerri-lyn Holland (Re/Max River City), David Luong (Liv Real Estate), Todd Millar (Glenn Simon Inc.), Don Sutton (Homes and Gardens Real Estate)

Toronto Mark Albert (Re/Max Realtron Realty Inc.), Daniel Bloch (Harvey Kalles Real Estate), Chander Chaddah (Sutton Group), Whitney Jorgensen (Real Estate Homeward Brokerage), Hashim Ali Khan (Re/Max Legacy Realty), Laurin Jeffrey (Century 21 Regal Realty), Tania Malak (Home Land Plus Realty), Aleksandra Oleksak (Sage Real Estate), Gaelen Patrick (Sutton Group Realty Systems), Max Wynter (Re/Max Realtron Realty)

Montreal Amy Assaad (Royal LePage), Jeffrey Baker (Royal LePage Dynastie), Ayfert Barak (Re/Max), Bernard Chan (Royal LePage Champlain), David Klingler (Londono Realty Group), Christina Miller (Profusion Realty), Andrew Mitchell (Vistacor Realty Group), David Schneider (Groupe Sutton Immobilia)