The multifamily real estate sector has remained relatively stable thanks to low vacancy rates, and low interest rates that encourage investment, along with the steady capital and asset appreciation that these properties offer to investors.
MULTIFAMILY MARKET FACTORS
Strong market fundamentals make multifamily real estate in Ontario a smart investment opportunity. During the pandemic, rent collections remained around 97 percent, providing a steady income.
New Construction also does not fall under rent control; therefore, landlords are able to adjust the rent if necessary.
EMERGING MULTIFAMILY TRENDS
In densely populated urban areas such as Toronto, land is at a premium, so city planners are now looking at vertical urbanism - building vertically rather than the traditional horizontal model.
There has been a shift in the multifamily sector priorities, due to the pandemic. As working from home has become the norm, it has brought on the demand for upgrades in units, such as in-suite laundry, a quiet space to work, and a new interest in green space. Low-rise multifamily properties in quiet residential neighbourhoods address these needs that condos sometimes cannot provide returns on.
MULTIFAMILY ASSETS
As vacancy rates for rental units are expected to remain low, the demand for multifamily construction will continue to grow. An increasing population, borders opening, housing prices pushing more and more people to rent rather than buy, as well as an aging population looking to downsize are all determining factors in multifamily sector investment volumes.
A popular way in which to invest in real estate is to own a collection of rental properties, essentially a real estate portfolio. This form of investing provides regular monthly capital, development profits, and investment growth.
Read more about this topic here: https://renx.ca/multifamily-withstands-pandemic-better-most-property-types/
This brand-new Triplex located in Etobicoke Toronto, sold within 24 hours of being listed on MLS.
Scheduled to be completed in March of 2022, this turnkey building features three units, each comprised of two bedrooms and two bathrooms.
Each unit has its own private entrance, separate utilities, parking, open concept living/dining space, stainless steel appliances, laundry, and master bedroom ensuite bathroom. The top floor unit includes a den area off the main living space - perfect for working from home.
Whether as a pure investment or owner-occupied residence we have multi-family projects ongoing in the Ottawa and Toronto areas. If you have any questions about any of our current or upcoming projects, please contact us.
This brand-new Triplex located in Etobicoke Toronto, is currently for sale on MLS.
Completed in September 2021, this turnkey building features three units, each comprised of two bedrooms and two bathrooms, separated utilities and on-site parking.
Each unit has its own private entrance, open concept living/dining space, kitchen with stainless steel appliances, laundry room with washer and dryer, master bedroom with ensuite bathroom, second bedroom, and main bathroom. The top floor unit has a den area off the main living space, perfect for working from home.
Whether as a pure investment or owner-occupied we have multi-family projects ongoing in the Ottawa and Toronto areas that may be perfect for you. If you have any questions about any of our current or upcoming projects, please contact us.
Multi-Family Investing: Triplex’s
A triplex consists of three individual dwelling units combined into one building, the individual units will typically share one or two common walls. Each unit of a triplex is self-sufficient, meaning each dwelling space has its own respective kitchen, bathroom(s), living room, a separate door to the outside, and its own address or unit number.
Some triplexes are constructed as a triplex, and others might have originally been built as a large, single-family home that was later divided into three separate dwellings.
A triplex is sold as one building, and the owner usually rents out all the units or lives in one unit and rents the other two. In some cases, a triplex owner can live in one unit and have family members live in the other units. Typically, however, a triplex is purchased for investment purposes: to earn rent money.
Benefits
If you have been looking for different streams of investing, a multi-family investment property is definitely an option to consider. Multi-family investments offer 3 potential streams of revenue that include, cash flow, principal paydown and equity appreciation over time.
Financing
A building with more than four units is considered by most lenders to be commercial real estate and thus, requiring a commercial real estate loan – which has a very different set of loan terms than a residential loan.
A triplex, because it has fewer than five units (as does a duplex and a fourplex) qualifies for a residential mortgage loan. Buildings with five or more units will almost always be financed with a commercial loan.
Typically, a commercial loan will have a shorter amortization and the loan is based more heavily on the property’s net operating income, while a residential loan is based more heavily on the creditworthiness of the applicant. It is best to consult a mortgage specialist that understand the nuances of multi-family investment financing and knows which lenders offer the best terms for these types of purchases.
Managing
Some investors opt to manage the property themselves, while others will hire a property management company to take care of the building. A property management company will take care of the property maintenance, tenant inquiries, unit turnovers, and the day-to-day operations of the property. The benefit of hiring a property management company is that you can sleep easy knowing that your investment is being taken care of and don’t need to worry about handling any issues/problems that arise.
Location
Most triplexes are built in residential neighbourhoods, offering tenants what condominiums cannot – a private entrance that exits into a residential neighbourhood, instead of busy downtown traffic. Multifamily homes are perfect for downsizers looking to rent, multigenerational families that wish to live in close proximity to one another, young families or couples seeking to reduce their monthly living expenses, or elderly people looking to downsize but stay in the same neighbourhood or area.
If this type of investment interests you, feel free to check out our current projects coming to market this year: https://sharpeindustries.ca/all-projects/ .
If you have any questions related to real estate investing, please feel free to reach out to us.
This brand-new Triplex located in the heart of Hintonburg Ottawa, sold recently after only three days on market!
Completed in 2021, this turnkey building features three units, each comprised of two bedrooms and two bathrooms, huge private rooftop terrace, separated utilities, and on-site parking. Unit 1 consists of 2 levels of living space, with master, 2nd bedroom, kitchen and dining room on main floor. Lower level features, living room and storage area. Unit 2 features, master with ensuite, storage, huge custom kitchen with upgraded appliances, open-concept living/dining area, and private rooftop patio. Unit 3 boasts massive rooftop patio with stunning views of Parliament Hill, master with custom ensuite, custom kitchen with open-concept living/dining area and full 2nd rec room for possible home business or gym.
Whether as a pure investment or an option to live in one of our custom brand-new multi-family properties as an owner-occupier, we have multi-family projects ongoing in both Ottawa and Toronto that may be perfect for you. If you have any questions about any of our projects, please contact us.
Many real estate investors end up leaving a significant amount of money on the table after their new purchase, often not becoming aware of their blunder until well after the fact.
If an end-user is purchasing a brand new property, they’re eligible for an HST rebate—which the developer holds back on the property buyer’s behalf. An investor, however, is required to pay the HST upfront and then claim it back after closing through the New Residential Rental Property Rebate (NRRPR).
Investors are entitled to the NRRPR, for which they must apply within two years, if their property is leased out for at least one year. In order to obtain the rebate, a Statement of Adjustment and a rental agreement for at least one year are required as proof.
Whether they don’t file correctly, wait too long, or don’t have the proper terms and agreements in place, many investors end up losing out on the rebate. In some cases, in-house sales staff just aren’t trained on explaining the nuances of the program to investor buyers.
Prior to completing your purchase make sure to speak to your accountant and lawyer regarding the NRRPR. The rules surrounding the rebate are very precise and need to be followed to the letter.
Our Hadrian Project in Etobicoke, Toronto is now less than two months out from completion and will be ready for private viewings in a few weeks.
This brand-new triplex is situated a short distance from downtown Toronto and offers easy access to shopping, restaurants and transit. This property is great for multi-generational families, investors or owner-occupiers.
Each unit features open concept living and dining rooms, two bedrooms, and two bathrooms (one ensuite). The units have a soaker tub in the ensuite, and custom shower in the second bathroom, and juliet balconies in the upper two units. All three units will be completed in neutral tones, with custom kitchens, and outfitted with high end finishes and fixtures. Each unit has private entrance, parking spot, and storage.
Whether you are looking for an investment opportunity or an option to live in a residential neighbourhood in close proximity to Downtown Toronto, this property may just be the right fit. If you have any questions about this project or any others, please let us know.
Our Hintonburg Triplex is now only a month out from completion and ready for private viewings.
The huge eat-in kitchens boast contrasting upper and lower cabinets, modern hardware, and stainless-steel appliances. The custom islands allow for entertaining with seating for four and enough space to prepare a feast for the ages.
We have spared no expense in order to provide luxurious bathrooms in all of the units. Each provides either a spacious custom shower or soaker bathtub, modern vanities, and upscale finishes.
The top floor unit was built with the needs of an owner-occupier in mind. Additional upgrades include, a double vanity and extra-large walk in shower in the master en-suite, removable partition wall to double the bedroom size, and extra-large basement space to accommodate a home gym or rec room. The 600 sq. ft. private rooftop terrace also provides views of the Ottawa river and Parliament Hill.
Whether as a pure investment or an option to live in one of Ottawa’s most sought after areas, this unique property offers plenty of upside. If you have any questions about this project or any of others, please let us know.
Toronto currently faces substantial housing needs across a broad spectrum of types, tenures, and levels of affordability. Enabling more variety in the housing that can be built in the city’s neighbourhoods is one solution among a range of initiatives to increase housing choice and access for current and future residents of Toronto. Presently, 35% of Toronto is made up of “neighbourhoods,” of which 70% only allow for detached single family housing types.
The “Missing Middle” housing concept highlights the need for diverse and affordable housing choices in sustainable and walkable neighbourhoods. Types of missing middle housing are those that are comprised of between 4 and 8 units. These housing types fit seamlessly into already existing residential neighbourhoods. As population growth continues to shift towards urban centres, cities such as Toronto and Ottawa grapple with how best to accommodate this influx while reducing sprawl. In Toronto, the Missing Middle proposition would allow for increased density, while maintain neighbourhood character.
Toronto’s planning department recently released a report entitled “Expanding Housing Options in Neighbourhoods” that calls for enabling and encouraging the construction of multifamily housing. Recognizing the housing issues facing Toronto in the short and long term, this report encourages more variety in housing options that can be built in the city’s neighbourhoods. It calls for allowing duplexes and triplexes, fourplexes and larger multifamily apartment buildings where they are not currently permitted.
Although this report is a step in the right direction with language such as ‘work program’, ‘initiatives’, ‘exploring’, ‘multi-faceted approach’, it remains to be seen whether Toronto city Council will follow through on the report’s recommendations. As other large cities such as Ottawa and Vancouver continue to modernize their urban plans to address these issues, Toronto will have no choice but to do so as well. The goal should be a simple approach, allowing for the development of multifamily housing options in city neighbourhoods to create more inclusivity and availability.
The report in full can be read here:
https://www.toronto.ca/legdocs/mmis/2020/ph/bgrd/backgroundfile-148582.pdf
Our Hintonburg project is now just a few months from completion. The exterior siding will be installed in the next couple weeks and landscaping will be commencing shortly thereafter. On the inside, interior spray foam was just completed and we are awaiting our final inspections before closing things up. We have selected all our finishing materials and excited to see how our selections turn out. Definitely stay tuned for update photos as that portion of the build begins! Click to read a full summary on the Hintonburg project https://sharpeindustries.ca/projects/27-ladouceur/
In April, we broke ground on our first Westboro project and things are coming along nicely. Since then, the foundation has been poured and services connected. The first-floor framing has commenced, and we are hoping to have all our walls up and the siding started by the end of July. Things should move fairly quickly after the walls our finished as our window package is already to go. We are still on target to have the project completed by the end of the year. Click to read a full summary on the Westboro project https://sharpeindustries.ca/projects/288-duncairn/
As for our second project in Westboro at 683 Melbourne, we are just a few weeks away from breaking ground. This will be a new design that we haven’t done before, but we think it will add nicely to the neighbourhood. Definitely stay tuned in the coming weeks for updates!
Finally, our up-and-coming project in Vanier should be ready to go in early September. We are very excited to be a part of the big changes that are going on in the area, which include the new Montreal all road streetscaping initiative.