For the average person, trying to anticipate what’s coming next in the real estate market is like trying to predict the weather in April. And deciding whether to invest in real estate in today’s market can be even more confusing. Our real estate experts share great advice on the risks and rewards of residential rental properties and what to watch for when making the leap to becoming a landlord. 

Types of Rentals

Today’s investors will need to consider what sort of rental unit they want to purchase and how they will make enough money each month to cover their mortgage and expenses. If they’re limited to a 20% down payment, they may need to think outside the box to create more cash flow. 

For example, a $1 million home today will require a $200,000 down payment with a monthly mortgage of approximately $5,100 at 6% interest over a 25-year amortization period. As an investor, consider whether you can create a basement apartment. Or if the home can be converted into a duplex or triplex. Factor in all your renovation costs while making your decision about a property.

Short-term rentals are still popular, depending on your location. In Hamilton, the bylaws state that a short-term rental is only legal in your primary residence.
In other words, you are legally allowed to rent your home for a short period if you are away, or you can rent a room or separate unit like a basement suite. 

“If you’re looking for a vacation property to rent, consider northern locations that are affordable but growing in popularity,” Luke O’Reilly from The O’Reilly Group shares. “Some investors look for land in rural areas and put up a yurt or tiny home where zoning allows.” 

Student housing is attractive as there will always be a need in areas near a university or college. “With student rentals, you can charge per room, so it is more lucrative,” Kevin Girard from Royal LePage State Realty explains. “The downside is it puts more wear and tear on the house, and you may experience higher turnover.”

Risks to Consider

As much as a rental property can be quite lucrative, it does come with risks. Be sure to buy in an area you’re familiar with or spend the time doing research. 

Determine how available you will be for repairs and renter turnover. Short-term rentals require more frequent cleaning and maintenance, so you must decide whether to manage this yourself or hire a property management company. The first option costs time, while the second costs money. 

“Understand the zoning and make sure you are allowed to create a duplex, for example,” says Kevin. “You will need to understand the building code, height restrictions for basement apartments, and what parking is allowed.”

Buying without a long-term strategy can also create risks for the investor. “Investors who bought rental properties during the peak hoping to flip may be taking a hit now,” Luke says. “But if there’s a long-term plan, prices will rise again, and interest rates will come down.”

Rewards to Explore

Housing prices are much lower than a year ago, and interest rates are predicted to drop, so the best time to buy is now. As rates go down, more cash flow becomes available to the investor. 

“The biggest reward is appreciation,” says Kevin. “Real estate doubles about every ten years, so if you put $200-$300 thousand down and wait ten years, you will get a huge return.”

Rental properties provide a steady monthly cash flow and significant income in the long term. Rental income is taxable, but you can deduct rental expenses, mortgage interest, insurance, and maintenance costs. 

The prospect of buying a rental property can seem daunting, so surrounding yourself with the right team is the key to success. Be sure to engage with a realtor and a mortgage broker who understand the rental market and discuss significant purchases with your financial advisor. 

All decisions come with a level of risk, but with risk comes great reward.

By Julie Achtermeier

 

Spring is a popular time for home sellers to put their properties on the market. The warmer weather, blooming flowers, and longer days make it an attractive season to showcase your home. But before you open your doors to potential buyers, it’s important to prepare your home for spring showings. Here are some tips to help you get your home ready for the spring market.

1 Declutter and Deep Clean: Before you list your home, take the time to declutter and deep clean. Clear out any unnecessary items, organize closets and cabinets, and deep clean every room. A clean and clutter-free home is more appealing to potential buyers.

2 Boost Your Curb Appeal: The first impression is crucial, so make sure your home’s exterior is in top shape. Clean the windows, power wash the siding, paint the front door, and add some potted plants or hanging baskets. A well-maintained exterior can entice buyers to take a closer look at your home.

3 Bring in the Light: Open up the curtains and blinds to let in natural light. Replace any burned-out light bulbs and consider adding some new light fixtures or lamps to brighten up dim areas. A well-lit home can make a big difference in how a buyer perceives the space.

4 Stage Your Home: Staging your home can help buyers visualize themselves living in the space. Remove personal items, such as family photos, and add some decorative touches like fresh flowers or a bowl of fruit. Arrange furniture to create a welcoming and functional space.

5 Make Necessary Repairs: Take care of any needed repairs before listing your home. Fix leaky faucets, replace cracked tiles, and repair any damaged walls or ceilings. A well-maintained home can be a selling point for buyers.

6 Highlight Spring Features: If your home has features that are particularly attractive in the spring, be sure to highlight them. A deck or patio for outdoor entertaining, a garden or flower beds, or a view of nearby parks or waterways can be a selling point for buyers. 

In conclusion, preparing your home for spring showings can help attract potential buyers and sell your home more quickly. By decluttering and deep cleaning, boosting curb appeal, bringing in light, staging your home, making necessary repairs, highlighting spring features, and providing a fresh scent, you can showcase your home in the best possible light. A little preparation can go a long way in making your home stand out in the competitive spring real estate market.

Bee populations across North America have declined for several years, causing experts to raise the alarm about the future of the world food supply. Whether it’s commercial honey bees or bumblebees in the wild, several environmental and weather factors are causing a concerning drop in populations. 

What’s happening to the bees?

In 2022, beekeepers in Kitchener, Ontario, reported a devastating loss to bee colonies due to a tiny parasite called the varroa mite. Last year’s early spring in Ontario meant the mites went through several reproductive cycles, feeding on the bees’ blood and protein reserves and spreading viruses throughout the colonies. Warmer winters and earlier spring seasons mean Varroa mites will continue to pose a real threat to commercial beekeepers. The University of Guelph Honey Bee Research Centre is testing natural methods to control the mites without harming the bees, but research is ongoing. 

Researchers at the University of Ottawa published a study in 2020 in the journal Science noting that bumblebee populations in North America and Europe have declined 46 and 17 percent, respectively, due to extreme temperature fluctuations. The research found that regions with the most drastic bee declines also experience worse heat waves and substantial variations in climate. 

Why are bees important to our ecosystem?

Colonized honey bees play a crucial role in Ontario’s agricultural sector, prompting Ontario’s Ministry of Agriculture and Rural Affairs to work with beekeepers to maintain the health and viability of honey bees. Research, education and outreach, along with inspection monitoring programs provided by government initiatives, can help address the commercial honey bee sector. 

Wild bees, on the other hand, are critical to maintaining natural habitats. Pollination creates plants that create food and shelter for wildlife, produce fuel and biomass, moderate temperature, and deliver oxygen. In Canada, bees are the most common pollinators, but we also rely heavily on butterflies, moths, wasps, flies, beetles, and hummingbirds. As homeowners, there’s much we can do around our homes to help protect wild bees, bumblebees, and other pollinating insects and birds. 

Create your bee-friendly (pollinator-friendly) garden

We can all help attract bees and other pollinating insects and birds to our gardens by following a few simple steps:

• Plant clumps of Ontario native flowering plants at different heights in your existing garden. Native plants are four times more likely to be visited by pollinators.

• Group single species of plants together, so collecting pollen or nectar is more efficient for pollinators. 

• If space is limited, plant a window box or container garden of pollinator-friendly herbs or use plants of varying heights, such as wildflowers, flowering vines, and potted shrubs. Oregano and thyme planted around potted shrubs or trees act as food for pollinators and provide shelter for bees.  

• Choose bright-coloured and fragrant flowers that bloom at different times from spring to fall, creating many opportunities for pollinators throughout the season. 

• Make a bee bath by filling a bowl with large rocks and shallow water.

• Eliminate the use of pesticides, including pollinator-friendly plants treated with systemic pesticides. Ask your local nursery if their plants are pesticide-free.

• Leave mulch-free space around your garden for ground-nesting bees.

• Build a bee hotel by filling a wooden box with dried hollow stems from old flower stalks or bamboo canes. Holes should vary in diameter between 2mm and 10mm. Place your bee hotel in a sunny spot (ideally morning sun) and take it down every autumn. Store it in a cool, dry location for the winter.

With some effort and research about native plants in our area, we can all help provide a healthier environment for bees and pollinators while enjoying a more colourful and exciting garden.

By Julie Achtermeier