Downtown Rumours

by Darrin DeRoches November 8 - 14, 2012

It seems that interest in our downtown is still pretty strong. Over the past couple of weeks, I have had conversations with several people about the next great thing coming downtown. There are two restaurants that must be opening soon since they have removed the paper from their windows.  One is on James Street and the other on King Street in the International Village. There is also the Burrito Boys in Gore Park ready to go (who have had the longest hanging of an “opening soon” sign that I have ever seen), and the promotion of the Anchor Bar which is currently renovating the old location of Waltz.     That brings us to the rumour of Waltz reopening on King William but it’s only talk right now. The old Grapes N Things is being worked on right now which creates a lot of activity in that area.     At my last count, I can speculate that there are six different groups presently looking at properties to buy or lease for new restaurants in our downtown. This may not seem like a big deal but it really is. The old Windsor and Junction properties are being considered as well as others. It seems as though every single property that was a restaurant, nightclub, lounge etc., are all in the running. The most interesting thing about these rumours is that all but one of these groups are Hamiltonians, not outside parties. This says a lot about our confidence in our city. We are looking to put our money into our city. There are some restaurants looking to open a second location downtown and a few are considering relocating to somewhere downtown.     The obvious question is “why?”     We have to look inside the minds of restaurateurs and business people and consider what they are seeing that others may not be. It is not as though there are line ups for all the restaurants and that we need to open more but maybe that is not far off. Hooters are opening a downtown location so that must means something – right? All of this interest may be the next step in bringing back the excitement and nightlife to our downtown. To answer the question why is pretty simple – new  hotels and condos and more entertainment.      The removal of HECFI and the building of condos and multiple hotels are the reason that the soul of the downtown is starting to resurrect. People will be coming to town for more concerts and corporate events, and those who realize this are looking to invest in places for these people to visit. Corporate and independent investments are going to change the landscape of our downtown and it is just around the corner, not a pipe dream of yesteryears. Rumours are becoming reality and if you are considering real estate in our downtown, move now before it’s too late. Investors, restaurateurs, co–ops and corporations are all making moves – today. V     Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

Debt Advisor

by Darrin DeRoches November 1 - 7, 2012

I had an interesting lunch this week with the owner of Ontario Debt Advisors– James Woods. I was interested in the difference between a “debt advisor” and a “bankruptcy lawyer” or “trustee”. The reason I was interested in finding out how this all works is because as a real estate broker we are contacted frequently for an “opinion of value” on people’s real estate. These opinions are required when someone is considering going bankrupt or arranging a consumer proposal. Ninety-nine per cent of the time, the person who is asking for an opinion of value is not going to sell their home but rather are looking to control their debt. In most cases they ask a real estate agent to come out to their home, do the five minute tour and then ask for a written opinion of value, so they can fix their debt — not sell their home. I have no problem giving someone an “opinion of value” just let’s skip the tour, time, lies etc. The first step in fixing your debt problem is being honest to yourself and your advisors – numbers don’t lie.     To best explain what a debt advisor is, the explanation from ontariodebtadvisor.ca is “Ontario Debt Advisors is a Debt Consulting Firm driven to help Canadian consumers living in Ontario that are struggling with overwhelming debt. We are not trustees in bankruptcy. Trustees must consider the interest of your creditors and maximize the amount paid to your creditors and in turn, the trustees earn more of your hard earned money. Ontario Debt Advisors acts solely in your interest to ensure that you get the possible results by utilizing Federal Government options to eliminate or reduce your debt — immediately.”     By using a debt counselor you can reduce your debt by up to 70 per cent and keep your credit score, house, cars etc. It seems that everyone went bankrupt years ago and now a “consumer proposal” is the new norm. The difference is huge and of course every case is different but you should take impartial advice from a Debt Advisor before making a rash decision. Most people wait until the last minute when their house is going to be put up for “power of sale” and they are being harassed by their creditors.  Call an advisor before it’s too late. They can arrange your debt, reduce it by a large margin, and set up “interest free” payments to get you back on track. Creditors will tell you anything to get their money and most of the time they will go to any lengths to get it. A debt advisor can stop all the calls, arrange an affordable payment plan by reducing the amount owed — it is that simple.      As a real estate broker I would rather sell your home and help you downsize than get a call from the bank that has it up for power of sale and you being put out on the street.  If you need help with your debt email me darrin@unqiuerealty.ca and I will have a Debt Advisor contact you. V     Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

live work space

A client from Toronto came into the city this week to decide whether to move his business to Hamilton. He is looking for a work/live situation where he can have a retail presence with the ability to live in the same location.  This live/work scenario is the big buzzword in real estate in major centers.  Small business make up the majority of our retail landscape and people who are photographers, artists, jewelers, book stores etc., are unable to afford to lease a space for their business and then rent an apartment on top of that.  They are looking to pay around $1,200 to $1,500 dollars a month for a space that can accommodate both living and working.

I have a 12,000 sqft building for lease which is set up for only commercial business and we are unable to accommodate people living in the space – legally.  We have at least one inquiry a week for the live/work scenario and being a real estate broker I started to look around town to find such a space.  So when my client from Toronto wanted a live/work space I decided to “tweet” it out to #hamont.  The response was quick and impressive.  The responses were Hamilton Economic Development, a Councillor, a landlord on James Street and one from Ottawa street.  Everyone who responded wanted to help a Toronto native find a space in our city. I took their suggestions and combined them with the leads I could muster up from the real estate board and set out a little tour for a live/work space in Hamilton.

My client emailed me he missed the 9:30 bus but would be on the 10 bus out of Toronto.  I picked him up at the hunter station at 10:45 and we headed on our tour.  I drove him around Locke, Aberdeen, Hess, International village, king and main street through Ottawa street and back down Cannon and James.  Every street has something to offer at different price levels and sizes.  We really took our time on James Street and looked at the new CBC/Art Gallery building and he was impressed with the architecture of the city.  We stopped in Mixed Media where Dave, the owner, gave my client the lowdown on space, the city, art community etc.  We then showed him available space on James and even though it was pretty run down he was impressed with the community and space to really consider making the move from Toronto.

Hamilton should focus on the live/work space since we are still an affordable city.  A ton of small business is being done on the internet but these small business owners still need space to live – create – sell their creations.  They are making money and want to be part of a community.  Hamilton is the only “real city” close enough to Toronto that can provide a community, parks, education, airport, transportation, green space that will make people make the move.  It may only take 45 minutes to get here but once they leave the “big city” they realize pretty quickly how Hamilton is the “real city” not a beige, plastic suburb. 

Coffee Round Table

by Darrin DeRoches October 18 - 24, 2012

I was invited to a coffee round table by Glen Norton our Urban Renewal Manager which featured Mathieu Langelier – Executive Director, Hamilton Halton Builder Association and Cameron Nolan the President of Realtors Association of Hamilton Burlington. To be honest, I thought that it would be a boring, stuffy type of stale coffee, big winded talk from people who had an agenda and who were forcing it down your throat kind of deal. But I was totally wrong.     The meeting was held at the Mulberry Coffee Shop, which provided the space, great coffee and amazing muffins. The informal setting and talk really brought out a casual, yet I say, cool – vibe. The open form brought out architects, realtors, investors, property owners, landlords etc. Everyone had an open forum to discuss topical points that related to our city. The two big topics were the new but dreaded legalizing apartments and the creation of more condos/apartments in the downtown. Everyone is up in arms in registering all apartments with the city. It is not the costs of doing it; it is the ramifications that come with it. Every landlord wants their units to be legal since it will make insuring and renting easier but at what costs? The zoning nightmares will be insane, costly and next to impossible. The second topic about bringing new builds to the downtown boiled down to the same concerns – City Hall. Builders are not worried about selling the units; they are concern with all the red tape in city hall – period.     It is easy to blame City Hall and our politicians for all of our problems but from a neutral point of view – City Hall has made vast improvements but it still has a way to go. Twenty years ago I dealt with city hall for a business downtown and they were like dinosaurs in the building department. I had to challenge, argue, go to the OMB and finally just correct all of their assumptions with the facts in order to move forward on a simple 15 person patio. In today’s building department there is still a pass-the-buck, cover-your-ass type of attitude. This culture has to change and it has to change from the top down. The city says they are open for business and they are BUT and it is a big but, the building department has to get up to speed. I can sit here and suggest what they should do but really they should sit with a bunch of builders, realtors and landlords and ask them what needs to be fixed and FIX IT!     Our downtown and our city as a whole can grow exponentially if only we really open the doors to the developers, builders and businessman who are scratching at our door but are afraid to really commit.  Streamline our building department, remove obstacles and let our city grow to its full potential – it may all just start with a simple conversation over a coffee. V     Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.

Fast Moving Market

by Darrin DeRoches October 11 - 17, 2012

Let’s look at the real estate numbers so far this year. For the first 9 months of the year, our market is up 7.5 per cent from last year. In comparison, the overall for last year was a 7 per cent increase and since the first nine months are up 7.5 per cent, we should easily beat last year’s increase. It is easy to say that in the past two years, real estate value has grown by over 7 per cent - that is a great increase. In today’s market, homes are selling faster – 45 days on the market compared to 54 days last year – and for higher prices. September actually had a 13 per cent increase in value compared to September, 2011. In short, fewer homes are on the market but are selling at top dollar.     The average home price during September in our market is $369,032. That is pretty impressive. The next question is, has it become a sellers’ market or is it a buyers’ market? The reality is it is pretty balanced right now but you can call it a sellers’ market since listings are way down and prices are through the roof. So what does this mean? Sell your home now! If you are even considering selling your property, this is the time to get top dollar. If you sell now, you will get the best price but you may also have to pay top dollar for the next property – or will you?     If you consider the reality that all properties are getting top dollar in today’s market, how can you take advantage of this? The first thing you do is prepare your property to get top dollar and once you hit the market, start looking at properties that have been on the market for over 45 days. If they have not sold, they are either overpriced, in need of repairs or have been over looked. These properties have become the “ugly ducklings” and there are deals to be made. A savvy real estate broker can pinpoint these properties where you can actually use the strong market as your bargaining chip. If a property is not being sold – something is wrong. Point out the issues and make an offer with these in mind and properly negotiated you can find the right property for a great price.     The market tends to slow in mid-November/December and if a property has been up since September they will be concerned that they cannot sell before Christmas. In some cases they have already bought and they will just want to sell to move on. I saw a property sell for $20,000 less than market value since he was satisfied to get his money out and move on to his new project. A quick closing can save you thousands of dollars right now. V     Darrin DeRoches is a local real estate and mortgage broker. H

Agent Goes AWOL by Darrin DeRoches October 4 - 10, 2012 What do you do when your agent goes missing? I received a call today from a buyer who had made an offer on an investment property that we had listed. He was looking for his deposit back since he could not get financing and he had called his agent three times in the last week with no response. Exasperated, he called me asking if I could write him a check. Unfortunately, I could not do that. So I called his agent and I’m still waiting to hear back from him.     This whole deal was wonky from the beginning and now I have to explain to my seller that the deal is dead. I have to call the other company, talk to the broker of record, request the paperwork and probably even deliver the deposit check back to their office. We have to put the property back on the market and start all over again. Oh, and I almost forgot – no commission, not a penny. So if it sounds like I am complaining about the lost sale – I am not – it’s the other agent that is going to get an ear full.     The agent showed the property to multiple buyers, which puts up a red flag that they are trying to ‘convince’ buyers to buy an investment property. The offer was mediocre at best and they had a quick closing date which would be very difficult to meet. The most telling part that the agent was full of it was that if you called his voicemail, it stated “if you leave a message, I will get back to you within 24 hours”. I would not hire an agent that would get back to me within 24 hours. I realized the agent was not only part–time but had a 9 to 5 job since all calls were returned just after five o’clock when he got off work.     The reason he was not answering the phone was because he was not making any money. I believe his client was not aware that you have to put 20 per cent down on investment properties and tried to “pull the wool over the eyes” of the bank. Of course it did not work, banks are not that blind. So not only did he not inform his client about the costs involved, he is now being totally unprofessional by not answering their calls.     The moral of the story is – you get what you pay for. If you are looking to buy an investment property, talk to an agent who has investment properties and works full–time. They will provide the proper answers and give you expert advice on the investment. So now I will do the other agents job and remember his name because if he calls again – I will suggest he sticks with his 9 to 5 – he has no business working in the real estate business. V

Quality Selling Fast

by Darrin DeRoches September 27 - October 3, 2012

Fall is officially here and it is starting to get cold but Hamilton’s real estate market is getting hotter by the minute. We should all know by now that we are number one in Canada and Ontario for real estate and investment (if not hit up viewmag.com and look at my past articles) but all I see around the city is “sold” signs. I am getting calls about properties even after we have a conditional offer with people hoping the deal falls apart so they can jump in and scoop it up. This is not just happening in one part of the city, it is happening all over.     One agent listed a property in Rosedale area with three bedrooms, garage, driveway, deck, steel roof, new windows, new kitchen and 2 baths. I am familiar with the property. Since I was doing a market analysis for a property I am listing it was a great comparable. I called the agent who informed me that the seller had already purchased a new home and wanted a quick sale – so they decided to list at $264,900. They put the property up on the market in the morning and within 9 hours it sold for over asking. Since I knew the agent, I had to ask if they had priced it low to get multiple offers? He stated it was priced to sell fast since the client had already bought and did not want to wait to sell. This only confirmed that my new listing can ask even more than what the seller was thinking.     Later in the week I was talking with a colleague who had a property sell in Ancaster. It was priced over a million dollars but sold within days for top dollar. It was a beautifully built builder’s home and worth it’s price tag but to have a home over million dollar sell that fast was impressive. The common thread in both of the properties – Quality.  If you have a property that is in good shape, and priced right, it will sell fast. There are other homes in both of these neighbourhoods that have been listed and sit on the market, but properly marketed homes, staged and priced right are blowing them out of the water.     So if your property is worth 100 thousand or over a million dollars, consider the time it will take to properly market the property and the rewards you will reap in time and money. Take a little time to do the staging, cleaning, painting etc. Since the market is moving fast it will be time well spent. You can only make a first impression once, make it count and you will sell your home fast and you can then spend your time counting the extra money you made on selling your home in a hot market. V     Darrin DeRoches is a local real estate and mortgage broker. He can be reached to answer questions, comments or stories about real estate experiences through this weekly column at mail@uniquerealty.ca.