REIN Awards Distinction of Excellence to Shannon Murree

Congrats to Shannon Murree (Team lead of Shannon Murree Real Estate Team) getting one of REIN's top awards!

The Real Estate Investment Network™ (REIN Ltd.) is Canada's leading Real Estate Education program.

REIN Awards are a distinction of excellence. It's not just about the number of buildings or doors that a REIN member has purchased, they also look at:

Ethics
Contribution to the REIN Community
Contribution to other communities
Property selection
Financial performance
Innovation

What is special to the REIN Community about the "Michael Millenaar Memorial Leadership Award"?

Michael Millenaar was a very special member in the REIN Community many years ago and was always giving, did selfless acts, even while he was ill and getting treatments. He was respected & made such an impact that upon his passing, REIN (Founder) Don R. Campbell and (CEO) Patrick Francey created the Michael Millenaar Memorial Leadership Award.

This is awarded to a Member who has gone above and beyond the call of duty in assisting other Members to become successful in their real estate acquisitions. The member has willingly completed selfless acts, shared their knowledge, made others feel welcome, and done it all without ever asking for anything in return. This is truly someone who understands the philosophy of: "The More You Give, The More You Get In Return."

Upon winning the award Shannon said "Be the change you want to see and never stop. There's so much more for us to do".

Last year, Shannon was also the recipient of REIN REALTOR of the Year
(nominated by members and given to the real estate agent and/or broker that best serves REIN Members, from finding the perfect investment opportunities, to bringing new buyers/tenants to clients.)

To reach out to Shannon's team - can call or go to InvestingInBarrie.com

Congratulations again Shannon!

Shannon Murree who won the Michael Millenaar Memorial Achievement Award for Ontario!

Shannon joined REIN in November 2008 and added 3 properties to her portfolio this year.
Shannon has contributed to the REIN community by coaching and inspiring change and action taking among the members. She helps people to analyze properties and to overcome analysis paralysis and the scariness of buying their first property.
In 2014, Shannon gave back by spearheading the REIN’s Soles4Souls shoe drive in Toronto. She believes in walking her talk and making a difference to those around her

Income property ‘debt’ is an investor’s best friend

Older Canadians may be scratching their heads at a new poll that suggests many don't consider mortgages to be debt, but one expert says there is no denying what income property debt is: it's "good news."

Paul Kondakos, founder of RealtyHub, says: “Many believe that 'debt’ is a four-letter word. However, when used responsibly, debt can be an investor’s best friend.

“Debt used to acquire an income-producing property is considered to be good debt because it facilitates the acquisition of the investment property. The investment property, in turn, not only services the debt associated with the mortgage, it actually generates cash flow for the investor.”

The Manulife Bank Debt Survey, which was published this week, questioned 2,373 Canadians about their levels of debt. More than a quarter (27 per cent) of respondents said they don’t consider their mortgage to be part of their debt.

“In the case of a principal residence, the debt (mortgage) is something that has to be serviced by the owners (assuming the property doesn't have an income suite/rental apartment),” says Kondakos. 

“The 27 per cent of respondents who didn't consider their mortgage to be a part of their debt have likely had their perception tainted because of the year-over-year gains we have been seeing in the housing market for the past few years now.”

The report also found:

• Approximately one in five of respondents expect to access their home equity to supplement their retirement income.
• 10 per cent of respondents plan to stay in their homes and borrow against home equity.
• Eight per cent plan to downsize and use the excess equity to provide retirement income.

“Often homeowners think of their home equity as a fallback plan for retirement income," says Rick Lunny, president and CEO of Manulife Bank of Canada. “The fact that one in five is proactively planning to use this strategy suggests they may be struggling to balance retirement saving with debt repayment.

“Retirees who use home equity to supplement their retirement risk leaving no legacy for their children or grandchildren. If home values fall, they could end up further in debt and have negative equity in the house."

Source: Canadian Real Estate Wealth Magazine - CREW  - BLOG BY JAMIE HENRY

Steady growth expected for Canada's housing market in 2015

Steady growth expected for Canada's housing market in 2015 -

With the New Year having only just begun, the housing outlook for 2015 across the country is generally bright.

The average residential sale price in Canada in 2014 was $406,145; that’s expected to increase this year to $416,300, according to the Re/Max 2015 Housing Market Outlook Report.

The report also found that several markets will flourish in 2015. Prices in Vancouver and Toronto will continue to climb, by about 3 and 4 per cent per cent, respectively. Other areas that are expected to see healthy gains include Kelowna, B.C., (7 per cent), Victoria (4 per cent), Windsor, Ont., (5 per cent) and Moncton (6 per cent).

Meanwhile, in other parts of the country, the average sale price will likely remain stable or rise modestly, such as in Montreal (1 per cent), Quebec City (1.5 per cent), Ottawa (1.6 per cent), and Sudbury, Ont. (1.6 per cent).

If you’re a homeowner, or looking to get into the market, keep an eye on these factors in the year ahead.via Yahoo Finance Canada

Our RE/MAX report is here: http://download.remax.ca/PR/HMO2015/Report/Outlook2015Final.pdf #Canada #RealEstate

The Shannon Murree Real Estate Team Grows!

Welcome Jacqueline Benn to the Shannon Murree Investing Team - we're here to be your ultimate resource for Real estate, investing, wealth creation, property management, workshops, seminars and more! http://InvestingInBarrie.com/ "Not Just Building, It's Building Relationships" 

Get Pre-Approval to Lock in, or Wait? Read this guys story on Interest Rate

Meet the interest rate that really affects your life

Alex Thomas couldn’t have chosen a better time to lock into a five-year, fixed-rate mortgage. The Toronto-based public relations professional locked in a 3.39-per-cent rate for 120 days at the beginning of July. He bought a house in October, but if he had waited any longer, his monthly payments would likely have gone up.

Why? Because Canada’s long-term interest rates have been steadily climbing since June. When Mr. Thomas locked in, the 10-year Government of Canada Benchmark Bond – the rate that’s most closely tied to mortgage rates – was about 2.4 per cent. It has steadily been rising since then, hovering around 2.6 per cent.

“I’m glad we got preapproved,” he says. “By the time we got our mortgage, the rate had already gone up twice.”

When it comes to interest rates, most of the attention is on the Bank of Canada’s overnight rate, which governs short-term lending. But it’s long-term fixed income rates that have the most affect on people’s wealth. Rising five-year, 10-year and 30-year yields impact everything from mortgage rates to portfolio returns.

Unlike the overnight rate, which the Bank of Canada is responsible for moving, the long-term rates shift based on what’s happening around the world.

For most of last year and until late May, the 10-year Government of Canada bond rate was in the 1.6 per cent to 2 per cent range. Then, U.S. Federal Reserve chairman Ben Bernanke said that he might slow down the U.S. government’s quantitative easing program – it’s been buying $85-billion (U.S.) worth of its own bonds since last fall.

That announcement caused long-term bond rates to rise around the world.

“The Bank of Canada had nothing to do with that,” says Darcy Briggs, a portfolio manager with Franklin Templeton Investments. “These rates are greatly affected by events occurring outside of the bank’s control.”

For house hunters like Mr. Thomas, the most obvious impact of rising rates is higher fixed-mortgage costs, says Mr. Briggs. According to Ratehub.ca, in May Canadians could get a five-year fixed rate for 2.64 per cent. That rate is now closer to 3.4 per cent.

Variable mortgage rates are based on the overnight rate, explains Mr. Briggs, so those costs haven’t increased this year.

Rising rates have also had an impact on certain investments, but especially on bond values, says Allan Small, a senior investment adviser at HollisWealth. When yields rise, bond prices fall, he explains.

“If a bond issue today is paying 6 per cent and an old bond is paying 5 per cent, then who would want the bond that’s paying less?” he asks. “That lower-paying bond then gets sold at a discounted price.”

In June of 2012, the Government of Canada issued a 10-year bond for about $100. Because rates have risen, that bond is now worth about $90.

“People in retirement have flocked to bonds because they’re low-risk investments,” Mr. Small says. “But over the last couple of months, they see their portfolio down, even though the stock market is going up, and they’re wondering what’s going on.”

However, it’s not just falling bond prices that have affected wealth. Certain equities are affected by higher rates, too. Investors who hold real estate investment trusts and utilities will have noticed that returns have fallen.

These two sectors typically offer higher-than-average yields, which is attractive in a low interest-rate environment. When bond rates rise, though, the risk and return properties of these stocks become less attractive. It starts making more sense to own a more stable fixed-income instrument than an equity investment, Mr. Briggs says.

“At 1 per cent, that bond doesn’t look as attractive, but it gets better at 2 per cent,” he explains. “That makes the outlook for other investments not as bright.”

This doesn’t matter as much to investors who are solely in the market for income, says Mr. Small. Hold a bond to maturity and you’ll still get the same return as you would have when you originally purchased it.

If you want to sell a stock or bond, or want to see your portfolio rise, then you may be out of luck.

“If you’re concerned about the value of your portfolio, then you have to be mindful of the risk.”

To minimize the impact of rising rates, Mr. Small avoids bond funds, which don’t have a maturity date and often fall when rates rise. He buys the actual bond for clients because he’s able to hold the security to maturity and receive the full payout he was entitled to when he purchased the bond.

“I know at some point in the future, it will reach its maturity date, so I don’t care about the price,” he says.

Some investors may also want to pare back their exposure to real estate investment trusts, utilities and other interest-rate-sensitive stocks, Mr. Small says. If rates continue to rise, then these stocks could be hit again.

Instead, consider owning some bank stocks. Financial institutions also pay attractive yields, but they benefit from rising rates – higher rates allow them to make more off the dollars held in savings accounts.

For Mr. Thomas, the only affect rising rates would have had on him would have been on his mortgage. He doesn’t yet invest, but he’s planning to start. When he does, he says he will keep his eye on where rates are headed.

“I’m reading about what’s going on with rates,” he says. “That could impact where I put my money.”

Globe and Mail Special article posting

Barrie waterfront development draws fire at meeting

Harmony Village drew a crowd Monday, just maybe not the audience it wanted.

People filled the Council Chamber at Barrie City Hall for a marathon public meeting on a rezoning application for the huge, proposed residential/retail-plus development near the waterfront.

With five towers ranging from 22-31 storeys, Harmony Village would have 1,255 units in high-rises and townhouses for 3,000 residents, a hotel, dinner theatre, community centre, medical offices and wellness centre on the 6.8-acre site. There are also to be pathways and public spaces surrounded by shops, restaurants and cafes at 51-83 Bradford St. and 20 Checkley St., along with a new road connecting Bradford to Lakeshore Drive.

Monday's message from residents is it's too much - in terms of height, density, traffic, shadowing, noise, etc. And not enough parking.

Don Hamilton represents a couple of dozen residents of nearby Grand Harbour and said Harmony Village would largely complete the neighbourhood, but it should align with the existing high-rises of about 16 storeys.

"We don't believe this project should be designed to overwhelm and over-shadow the existing developments," he said.

Gary Bell, a Barrie land use planner, said the project is an over-intensification of the property.

"It's a scale of development well above what is desired or intended or needed on Bradford Street," he said.

"We have seen the tall towers of Toronto," said Nancy Quinlan of Toronto Street's Grand Harbour. "But we're Barrie, we're not Toronto."

Lorne MacDonald, who lives on nearby Ellen Street, said Harmony Road is not needed, that the area doesn't require two more intersections.

And he says the development is too big for the land there.

"They're trying to put a size 12 foot into a size six shoe," he said. "The only open space they are proposing to leave is Harmony Road."

Brent Clarkson, who lives in the Nautica tower on Ellen Street, said development projects need to fit in with the character of a neighbourhood - and that's more than design, height and building materials.

"This project fails in any reasonable sensitivity test," he said, noting traffic and noise concerns as well. "It requires substantial modifications."

"They seem to want to put green space inside for the residents, pavement outside for their neighbours," said Robert Bishop of Ellen Street.

"They should have to prove to the city that they need to go higher and that there are municipal benefits," said Ian Rowe, who lives at Bayshore Landing, two towers of 15 storeys on Dunlop Street West. "Make sure all the pie-in-the-sky stuff gets into the zoning bylaw."

But all the comments about Harmony Village Monday were not negative.

Jill Price, who owns businesses in the downtown, said this type of intensification is the future.

"They're looking at developing the site in a creative way and a memorable way," she said. "This is the way we need to move. . .to better life in the downtown core."

Price said the downtown needs the people, the shoppers, to thrive.

Most residents who spoke Monday acknowledged this property will be developed, but wanted to limit its impact on the neighbouring community.

Coun. Lynn Strachan, who represents this area, was unhappy with the applicant's initial presentation as it related to relief from city bylaws - for height, setbacks, etc.

"They have come here with a vague proposal for a site-specific rezoning, but not the rationale," she said. "We didn't get a lot of information about the zoning proposal."

An official from Harmony Village then quoted from a report that had been submitted to the city.

But Mayor Jeff Lehman wasn't satisfied.

"What is the planning rationale for towers that are twice as high as are allowed?" he asked.

Lehman didn't get a clear answer - other than there is no particular rationale for any height, or height limit.

Harmony Village would be geared toward those 55 years old, and older, although not exclusively. It carries a $600-million price tag over eight years for the project, with towers ranging from 22-31 storeys. It would employ nearly 6,300 people to build, generate $8.2 million in annual property taxes and create 874 full-time jobs. At more than two million square feet in total size, it would also include nearly 1,300 parking spaces.

Depending on city approvals, shovels could be in the ground for Harmony Village in 2014.

The developer acquired this property from the proponents of Blue Simcoe Development, a project which was to include towers of 24 and 25 storeys, and 595 residential units.

The property is currently zoned transition centre commercial and environmental protection, which is site specific for the former development plan.

Harmony Village-Lake Simcoe Inc. wants to amend Zoning By-law 2009-141 to create a new site specific zoning bylaw to reflect its development plans.

Site plan control for this property has been delegated to city planning staff, although it could be 'bumped up' to a council decision if that's the wish of Barrie councillors. The site plan will likely be discussed at tonight's public meeting.

Once it's held, the rezoning application goes to city planning staff for a report to Barrie councillors, who decide whether it is accepted, rejected or changed.

Other plans are also afoot for this part of Barrie.

A centre for excellence in education is being proposed on 11 acres of land which includes Barrie Central Collegiate, Red Storey Field and the former Prince of Wales School.

Development of secondary and post-secondary institutional uses there, along with commercial and residential uses, would allow Central to be rebuilt and the development of a university campus, with student residences.

Laurentian University wants to build a campus in the city's downtown, and Barrie council is onside – although this still requires provincial approval. - BBRUTON Barrie EXAMINER

Barrie-area couple says strict rules making it hard to evict errant tenants

photo Mark Wenzel

After their tenants were arrested on drug charges and the apartment nearly burned down, the deGroots thought they had just cause to evict their errant tenant.

Not so fast, said officials at the Landlord and Tenant Tribunal Board.

“At the tribunal, our case was dismissed. We lost,” Catherine deGroot said from the shaded deck of her home near Elmvale.

“Where are the rights for the landlords?” her husband Tony demanded.

Struggling with a recent ALS diagnosis, his frustration has turned from his disease to their inability to evict a tenant from their rental property on Blake Street that was the scene of an early morning fire on Aug. 12.

The deGroots learned about the fire when they listened to a voicemail that had been left for them at 6:30 a.m., Aug. 12, requesting they call the Barrie fire department.

They were told the fire started in the bungalow’s front apartment in the basement when a mattress that had been leaning against the wall caught fire.

Catherine deGroot said she knows exactly where the mattress was, because she’d entered the premises — after leaving letters requesting the tenant be available at 5:30 p.m., Friday, Aug. 9 to meet with her — and had a friend photograph what she calls “the absolute squalour” of the apartment.

Clothes strewn around the apartment and hanging from the kitchen sink were the least of her worries. Four cats meowed pitifully, both from hunger and the discomfort of a full litter box and flea bites.

“We couldn’t stay in there long, the fleas were up to here,” she said, pointing to above her ankle. “My feet were black with them.”

Dishes and dirt were piled on every surface, and deGroot admits she missed the syringes and condoms firefighters later told her they found in the basement.

She now believes her tenant wasn’t available to meet with her Friday because she was in jail.

Although the tenant wasn’t charged, a drug bust did occur at the home June 13 by the Barrie police department’s street crime unit.

According to police, at that time two men, a woman and sleeping child were found in the home on Blake Street. A third man entered the home, and he was promptly arrested for cocaine possession. One of the two other men was arrested for five drug-related charges and the other man was released. The young woman was arrested and released. In all, police found almost $2,000 worth of prescription drugs and cocaine and approximately $4,000 in cash.

The deGroots say they originally had a good relationship with the woman. But when her circumstances changed, when rent wasn’t paid and neighbours noticed drug activity, the relationship soured.

The tenants living in the back portion of the bungalow called 911 when fire broke out early that Monday morning.

“We were just falling asleep watching a movie when the TV and A/C flickered,” Jason Malak said. “‘We thought we’d blown a fuse, but the other lights were still on. Then I could hear noises underneath the kitchen — we don’t have a downstairs — and I thought someone was breaking in. Then we heard voices and I noticed a little bit of smoke.”‘

Malak said he opened his door and was greeted by smoke pouring out of the other apartment’s air-conditioner.

“There was a lot more smoke outside. We called 911,” he said.

His girlfriend is about seven months pregnant and was taken to Royal Victoria Regional Health Centre for smoke inhalation concerns before being released.

The couple was removed from their apartment — that was mostly untouched by the fire — until the hydro and water could safely be turned back on.

Public fire and life safety officer with the Barrie fire department, Samantha Hoffman, said the fire was suspicious in nature because no one was living there when it started.

“Yet there was evidence to show that someone had been in the unit shortly before the fire,” she said.

Four cats perished in the fire.

The deGroots’ insurance company has boarded up the former tenant’s apartment and said work would soon began to clean up after the fire.

But the deGroots’ concern is that their tenant still has legal rights to return once it’s fixed.

“Our fear is (she) is still tied to Blake Street and we still have to get her out,” he said.

Running her Landlord Legal business in Barrie and Meaford, April Stewart is a busy woman.

Stewart said she’s seen many drug-related attempted evictions by landlords fail for any number of reasons.

“We do a ton of drug cases. It’s a significant part of our caseload,” Stewart said. “We see all of the drug or alcohol and other societal problems.”

She said she’s seen apartments become flophouses where a “tenant’s associates can show up, hang out and find a place to sleep” without the landlord unaware what’s going on.

Steward represents landlords at the Landlord and Tenant Tribunal Boards because she says while tenants can get free representation, landlords can’t.

“Sometimes, because the tenant went to jail, the landlord thinks he can change the locks,” she said. “But the tribunal board is there for a reason, to terminate tenancies. Nobody else can do that.

“So just because your tenant is in jail, or not paying rent for some reason, that doesn’t mean the agreement can be terminated.”

The legal paperwork landlords are required to complete can be daunting, Stewart said, and tenant evictions very much rely on the ‘very high threshold of proof’ landlords must submit to the tribunal.

Stewart said when criminal charges are pending against a tenant, having the arresting police officer attend the tribunal is often the proof the tribunal requires.

“If there are reasonable grounds (presented), a conviction would stick,” she said.

Landlord Nancy Lowe knows a little about dealing with unruly tenants.

After checking all three tenants’ references and meeting their parents, the Barrie woman allowed the three twentysomethings to move into her rental property on Campbell Avenue a few years ago. She said the tenants punched holes in the walls, destroyed the rug, scraped enamel off the bathtub and broke the glass patio doors and several windows.

Two years later, Lowe has been in and out of court and finally garnisheed the wages of one of her former tenants — to the tune of $21,300.

“I had to get the judge to order the parents to serve them,” Lowe said. “My advice to landlords is, stick with it. It’s a lot of legwork, but I didn’t give up and got the money they owed, plus my expenses back.”

In the meantime, the deGroots are responsible for hiring a pest control company to rid the apartment of fleas because that’s not covered under their fire damage policy. - Cheryl - Barrie Examiner