Hello Everyone with Investment Real Estate in Hamilton, Ontario!!
This week we are finally starting the renovation work at Bruceâ€™s investment property. Our plan is to renovate the basement to create a nice living room area, redo the bathroom (because the existing shower stall leaked so thereâ€™s mould in the surrounding drywall, a lesson for all of you with shower stalls to read the installation manual to ensure it is sealed correctly as it appears no one does and this is an extremely common, yet preventable, problem), relocate the laundry, and redo the tub surround in the main bathroom. Sounds expensive, right? Well, it is, but in calculating the investment math, a house on the same street sold for almost $50,000 more than we paid for Bruceâ€™s house and Bruceâ€™s property features a detached garage, so weâ€™re happy about that. Once we replace the damaged garage door, we will rent it for $150/month, separate from the house.
For those new to renovating, we obtained two quotes from the more reputable contractors in Hamilton. The scope of work requires permits, so weâ€™re going that route as well. FYI, drawings from a certified architect cost between $600-900. The cost for drawings of a basement apartment would start at around $1,500. I figured Iâ€™d mention it as more of our clients are going that direction.
Bruceâ€™s house is our alternative to an RESP.Â With the public markets in turmoil over the UK voting to exit the European Union, this seems to be a pragmatic solution. I mean, what do you expect to happen to interest rates? If you don’t know, here’s an article by economist Dr. Sherry Cooper: http://sherrycooper.com/articles/brexit/. Quick answer, they’re going to stay LOW. We need the income property to pay for Bruceâ€™s expenses: braces (he has big teeth likes his daddy), university tuition, a down payment for Bruceâ€™s first home.Â Is that worth more work and money out the door in the short-term? To us, it does, soÂ we do what we do and weâ€™re here to help YOU do the same when youâ€™re ready.
Remember our episode titled Rags to Flipping Riches with Ruben Furtado?
Well Rubenâ€™s at it again! Check out his home which just sold for hundreds of THOUSANDS more that the most comparable properties in the area thanks to the Furtado formula for modern design and renovations.
In case you missed the interview where he shares tips and tricks, you can grab his interview here: http://mrhamilton.ca/2016/04/rags-to-flipping-riches/
Or, by subscribing to my podcast here:
Weekday GO rail service announced for Niagara
I knew it would happen but didnâ€™t expect it this soon. How is the government going to pay for it? A question for the future generationsâ€¦
GoOntario is planning to bring new weekday GO rail service between the future Confederation GO Station in Hamilton and the Niagara Region starting in 2021, with service to Niagara Falls by 2023.
Weâ€™ve been advising our clients for close to two years to be buying in Grimbsy and beyondâ€¦ Maybe itâ€™s time to take a closer look? Maybe at stuff within 800 meters of Go Train stations?
Thanks for reading and happy Hamilton real estate investing everyone!
Erwin Szeto |Â MrHamilton.ca
Rock Star Real Estate Inc., Brokerage
PS:Â If you are just starting out investing, start byÂ spending more time with like minded people and take guided tour of Hamilton by joining us for the next Mr. Hamilton Inner Circle by clicking here!!!