David Fouad Posts
In this video I teach what the definition of a common-law relationship that Canada Revenue Agency gives us. Importance of your understand of this and homestead rights is critical to you making the right financial decision. You can avoid having headache and frustration with having to deal with things after the fact.
Have you noticed all of the new condo projects that have and continue to spring up all over the city? You are not the only one, I have been studying this trend for the last few years. For the month of August 2016 it has been discovered that the condo market has come down. Condo values have come down 2.74% year to date for 2016. In 2015 condo values have come down nearly 12%, that brings us to a total of nearly 15%. Should you be concerned? In short, yes.
This time last year, residential detached houses in the range of $250,000 to $299,999 accounted for 26% of the market, today that number has dropped to 24%. So what does that have to do with condos? I believe that the saturation of condos, especially the new ones, has impacted the first time house buyers market share in a good way. More buyers have and continue to buy outside that range of $250-$300k. I have noticed that the slightly higher price ranges have increased due to the saturation of real estate over-all. In the previous two years, many first time buyers were pushed into buying a condo instead of a house. Condos were cheaper and the demand for them was less. No bidding on condos to be found and many buyers went that route instead of a house. That opened up opportunities for first time house buyers this year. Today because of the over supply of condos on the market, there is some uncertainty and less urgency of buyers to buy. Those buyers are sitting on the sidelines and creating opportunity for house buyers to capitalize on the opportunity. Keep in mind that 11% of the entire residential market is made up of condo transactions; it’s not a big market share in comparison to the house market shares.
Last year and the year before that, the people who couldn’t afford to even compete in bidding in the $250-$300k range were forced to focus on lesser houses. Now those similar buyers can afford to buy in the higher price ranges of $300-$350k because those houses are siting on the market longer and being fetched up for less than their respective original list prices. Houses in the $400-750k ranges have very small single digit market shares. When you see that that gives you an idea of where the action is. Because these houses are not selling fast or even well for that matter, it can give a negative impression to the the buyers in the larger market shares. In summary, thank you to the saturation of the condo market, the average house buyer can afford more house.
We are approaching the ideal house buying season of winter. Do you want to beat the odds, buy more house than the average buyer? Connect with myself at 204-228-0588 firstname.lastname@example.org. I will give you the advice and the insight that others cannot afford to give.
Flippers are flopping.
A definition of a house flip is a purchase that was made, a fix up was completed, and sold within one year. You talk to any local flipper in Winnipeg and you will quickly realize that they are having a difficult time out there. Why is that? Why are their properties not selling for the money they are asking and within their deadlines? It’s simple, short term is inferior to long term in the world of real estate. I posted a video in which I taught the importance the real estate seasons play. When a flipper buys a property and then sells it, they tend to rush that process. They are trying to work fast because time is expensive to them. When a derelict house is purchased by a flipper, the problems that matter with the house are ignored. Wet basements, water in walls, rotten roofs, old electrical and plumbing, all those things take time and cost money. In the eyes of a flipper, those things are not important to a buyer because they believe buyers are dumb. They believe that buyers are naive and unable to assess a house’s bones and systems.
Let’s say a buyer buys a property in the best season for buying, the dead cold of winter, December to February. Flippers like a low entry price. That means the lot sizes are small and and the locations are poor today. They then work on fixing up the property quickly. That means cosmetics take priority not function because of time. So the house gets a lipstick job, new counters, particle board cheap cupboards, laminate floors, and let’s not forget, the modern staging job with furniture and bits and pieces. So now it’s June, they have exceeded their deadline and have missed entirely the peak selling season of February to Beginning of April. That season will not come back till next year and alas their house is up and it’s not selling.
Banks do not like flippers because they don’t make them enough money. Banks charge interest that is compounded semi-annually and they have no interest in helping flippers in the short term. Flippers often seek the help of expensive private lenders and the slippery slope continues. Why am I telling you this? I’m telling you this because flipping houses is not an investment and neither is it profitable in the long term. Today especially because we are in an oversupplied real estate market in Winnipeg.
I am advising you to do what I do and a few select of unconventional people are doing. See beyond today, look far down, decades from now. Ask yourself, in 40 years from now will the purchases I’m going to make work out the best for me? Will I make the right moves to optimize my gains? Will I succeed in doing what others are not? Will I do things differently than the average person? Will I contribute to my economy and help establish better communities and housing for people? When you think long term you don’t think about cutting corners or cheating time itself. You can be in a place where your properties pay for themselves. It’s a beautiful thing and it’s not complicated. It takes discipline, hardwork, resilience, and purpose. Contact me a 204-228-0588 email@example.com and I can show you how to get started.
I have fond memories growing up attending Folklorama with my family. It’s a fantastic way to learn about the various cultures in our city and to experience little bits in an evening. Enjoy the food, entertainment, and wares at each pavilion. Folklorama is a Winnipeg only production and must be experienced by everyone. It’s affordable and great for all ages.
My wife and I attended the Japan pavilion last week. I recommend this pavilion on many levels. I am a foodie and the food was good. We enjoyed watching judo, dance, taika, and flower arranging.
See the photos and links below.