Tom McEvoy - Blog

Build Belleville

tom.mcevoy@century21.ca — Fri, 05 Apr 2013 00:00:00 GMT

In the past few years, there have been numerous changes to the great city of Belleville. Mayor Neil Ellis has taken a proactive approach to building up this city and helping us bridge the gap to get us to that next level. The Mayor has pointed out the all too important fact that we need to invest into the basic needs of our city. Along with correcting the major infrastructure issues, Belleville also needs a diverse community base and an improved quality of life to be able to add to our tax base. There needs to be investment in roads, water services, the industrial park, our downtown and our police services. The Build Belleville site states that Belleville currently owns over 3.5 billion dollars in assets and we need over $400 million in maintenance upgrades. The census remains that we must do something before the interest rates of 2014 rise. The priority needs are as follows: 21 million has been allocated for a new police station, 17 million for our roads, and 15 million for downtown Belleville, 15 million for water and 12 million for wastewater. The province recommends the cities should budget 2-4% of the total value of assets for capital renewal. For Belleville that would equal out to be 7-14 million dollars spent annually for capital renewal.

For more information on the Build Belleville program, please visit

http://buildbelleville.ca//

For some fast facts on the program, please visit:

“http://buildbelleville.ca/fast-facts/”

City of Belleville Facade Program

tom.mcevoy@century21.ca — Wed, 20 Feb 2013 00:00:00 GMT

City of Belleville- Façade Improvement Program

General Eligibility Criteria

All proposed improvement projects will be assessed under three main

considerations:

1. Consistencies with these design guidelines and the original architectural design

of the building.

2. The extent to which a project improves the overall appearance of the property

and of adjacent and nearby buildings.

3. The overall benefit to the downtown and consistency with the City's Official

Plan and other applicable policies.

Since 2006, the city of Belleville has organized and implemented a façade program to help store owners and businesses improve the outer appearance of their buildings in the Belleville Downtown Improvement Association (BDIA). This area ranges from down Front St, Campbell St, as well as properties fronting on the east side of Pinnacle and the south side of Dundas (Map above fully outlines area)

The purpose of the program is to encourage the preservation of the architecture and tradition upon which the character of downtown Belleville is based upon. The program hopes to encourage the restoration of our downtown core with the rehabilitation of older downtown buildings.

The grants are in the form of a non repayable financial contribution provided by the city to owners. Capital grants may be provided for up to 50% of the cost of façade improvements that satisfy design guidelines to a maximum of $7,500. For projects that include two facades, up to 50% may be provided, to a maximum amount of $10,000.

The program also allows for additional grants for projects that include a second façade. The city states that upgrading or the establishment of a second façade opening towards a flanking street, a municipal lot, the Moira River or the Riverfront Trail, or other areas accessible to the public may qualify for the enriched grant. It should be noted however that additions to existing buildings do not qualify for the grant.

To receive this grant requires various documents that need to be submitted to the city for approval. You will need to complete an application form (found at the city of Belleville website below), detailed drawings of the building façade (including all information needed to help understand the scope of project), in addition to two independent quotes from two qualified contractors.

Visit the downtown Belleville website for all applications and information pertaining to the façade improvement program.

Downtown Belleville Façade Information Page.

Tom's Biography

tom.mcevoy@century21.ca — Thu, 24 Jan 2013 00:00:00 GMT

Born and raised in Toronto, Ontario, Tom has been bringing his expertise in residential, commercial and investment real estate for over 6 years. With family and friends in the surrounding Quinte region, Tom has built a reliable and trust worthy relationship with the Belleville community. Tom’s genuine passion for real estate and the Belleville area have made him a trusted and reputable agent.

Tom’s interest in real estate is all about perception. Tom looks at real estate as the only secure investment vehicle with the ability to make improvements as the process unfolds. Simply put, you get out of it what you put into it.

Tom enjoys working with people and navigating through the twists and turns of real estate and is a firm believer that every problem has a solution. As an investor himself, Tom has experienced both the stresses and successes involved when working with tenants, acting as a landlord himself as well as the work involved when improving an investment property.

This has enabled Tom to bring his experience and expertise wherever he goes and to ultimately help clients reach their real estate goals today, tomorrow and for the future.

Ontario’s economic Performance and Rental Market Trends and Forecast:

tom.mcevoy@century21.ca — Mon, 03 Dec 2012 00:00:00 GMT

Within Canada, Ontario’s economic performance has been mixed, with construction of commercial properties overflowing and the housing market maintaining its upward path despite some overvalued markets (GTA).[1] Ontario produces 37% of Canada’s GDP and 38% of Canada’s merchandise exports. [2]

Households have shown increased caution with respect to spending, due to the weakening retail sales gains and a reduction to the pace of debt accumulation. TD’s forecast states that Ontario’s economy has grown by 1.9% in 2012, which is just below the national average.[3] In 2013, the housing market will begin its gradual correction, with prices in the GTA market set to lose more than the national average.[4] Unfortunately, Ontario has the highest deficit among provinces at 2.2% GDP.[5] Given the low interest rate environment, home prices are likely to unwind 10% over valuation over the next two to three years as housing demand softens and buyer’s market conditions re-emerge.

TD attributes the source of the regional growth gaps to the housing market.[6] The varying residential market condition will perpetuate growth differentials given that housing is a large driver of consumer spending. The extensive fiscal restraint initiatives the federal and provincial governments have launched in combination with the upward momentum of an overheated housing market has resulted in housing markets beginning to fade in major urban markets, such as Vancouver and Toronto.[7] All provinces are likely to bear some impact of the stricter federal mortgage lending rules and a gradual increase of interest rates, however urban markets in Toronto and Montreal may foresee larger than average declines.

Market Trends: Residential (Ontario)

During the first half of 2012, the household debt to income ratio was at an all time high level of 152%.[8] In order to halt this rapid climb, households are going to have to lower their borrowing amounts and further increase their savings. The Ontario housing demand peaked early this year with modest job growth and less migratory inflows prompting a downward revision in the housing activity.[9]

CMHC states in its Ontario Regional Highlights report that Ontario resale prices grew at an above inflationary rate in early 2012.[10] A balance market and less home sales at higher prices suggest the impediment of Ontario price growth. In 2012, housing starts were at 207,200, forecasted in 2013 to be slightly less at 193,100. Resale homes in Ontario averaged at 466,660 with a forecast for 2013 at 469,600.[11] On a quarterly basis, growth in the average MLS list price is expected to be slow. Single detached starts have stabilized in recent months and will reach 259,000 units by 2013.[12] The MLS average list price for Ontario is forecasted to be $386,900 in 2012 and $389,200 in 2013. [13]

Vacancy Rates:
CMHC reports in regards to Canada’s vacancy rates that the continuation of modest purpose built rental construction and rental demand remains strong due to high immigration.[14] This will be offset in the future by an expanding rental condominium market. The stock of unoccupied new housing units has been stable over the past year, which indicates continued demand for new homes. In April 2012, Ontario vacancy rates dropped to 2.3% from. 2.5% the previous year.[15]

Belleville Multi Unit and Rental Information:

With Belleville being located halfway between Toronto and Kingston, it has become an established centre with significant developments. It is a city able to boast strong family incomes of more than $61,000.[16] Belleville’s history and early growth has built a moderate sized apartment market with just over 5,706 units, a high concentration of 11.68 apartments per 100 people.[17] Although the majority of these units are found in buildings 20 units and smaller, there are 20 buildings that are comprised of 50 units and more.

The recession of 2008 impacted Belleville with a rise in unemployment to 7.2%.[18] This can be illustrated in the apartment market which has seen vacancy rates rise from 3.7% in 2008 to 5.6% in 2009 before dropping to 4.4% in 2010. The softest part of the market surrounds two bedroom units where vacancies remain at 4.7%.[19] Three bedroom apartments are faring much better at 1.2%. [20]

This soft market has put a stop to rent increases, which fell by 0.26% in 2010 after years of growth in the 2-4% range. The only part of the market which saw rents increase were bachelor apartment units, where rent increased significantly from $549 in 2011 to $590 in 2012. [21]

Apartments/Rentals/Multiunit Trends:

Another important trend to consider is that the slowing growth in condominium resale prices combined with a rising unoccupied condo rental stock will also dampen buying activity in some market segments. Modest job growth and change in mortgage insurance rules may dampen sales.

There are currently over 4,117 apartments in Belleville with approximately 455 apartment buildings. With an apartment rate of 8.4 apartments per 100 people, it is one of the highest rates in the province.[22] Belleville’s apartment composite is made up of 398 buildings or 87% that house 20 units or less but the city has 20 buildings over 50 units in size.[23] Investors have a variety of choices when it comes to the smaller sized buildings but with such a high proportional supply of apartments versus population, currently we are in a renter’s market.

For investors, Belleville may be oversupplied but this means that there is a lot of choice with lower prices. It also means a competitive rental market. Experienced investors and property managers may find opportunities to aggressively manage selected properties and generate revenue. Multi family is the currently the hottest commercial investment segment in Eastern Ontario with occupancy more than 95% and growing.[24] Demand is growing for new products with securities, garden suites with proximity to public transportation, shopping and recreation.

Below you will find a chart from CMHC reports indicating market statistics for Belleville from both 2011 and 2012. The data has been split up into various categories by different bedroom type. [25]

[26]

Bachelor

1 Bedroom

2 Bedroom

3+ Bedroom

Total

April ‘11

April
‘12

April ‘11

April
‘12

April ‘11

April
‘12

April ‘11

April
‘12

April ‘11

April
‘12

Private Apart. VR (%) by bedroom type

4.1

3.7

3.3

3.4

0.5

4.4

3.5

3.6

Private Apart. Rents ($)

594

618

737

751

831

850

946

970

802

820

Private Apart. Units in the Universe

114

115

1694

1727

3640

3689

233

238

5681

5769

Private Apart. Availability rates (%)

4.8

5.7

5.1

5.7

1.0

5.9

4.9

5.8

Percentage change (%) of Ave. Rent

2.7

2.0

3.4

1.3

3.7

1.6

1.5

3.6

Private row (Townhouse) and Apart. VR (%)

4.2

3.6

3.2

3.3

0.7

4.4

3.5

3.6

Townhouse and apart. Average rent ($)

594

618

737

751

830

849

908

925

802

819

Townhouse and apart. Units in the universe

114

115

1706

1739

3708

3757

314

5842

5925

Townhouse and apart. Availability rates (%)

4.9

5.6

5.1

5.6

1.1

5.5

4.8

5.7

Estimated % change of ave. rent

2.7

2.0

3.4

1.4

3.6

1.6

1.5

3.5

[1] Burelton, Derek, Mareil, Jaques. (July 2012). Provincial Economic Update. TD Economics. Retrieved at <http://www.td.com/doc/PDF/economics/qef/prov0712_forecast.pdf.> (1-16)

[2] CMHC Reports (Sept 2012) Canadian Housing Market: Stats to slow, Resale Stable in 2013. The Housing Market Outlook. Retrieved at <www.cmhc-schl.gc.ca/odpub/esub/61500161500_2012_Q04.pdf?fr=1352820937211> (1-32)

[3] Burelton, Derek, Mareil, Jaques. (July 2012). Provincial Economic Update. TD Economics. Retrieved at <http://www.td.com/doc/PDF/economics/qef/prov0712_forecast.pdf.> (1-16)

[4] Ibid

[5] Ibid

[6] Marcil, Jaques. (October 2002) Provincial Economic Update. TD Economics. Retrieved at <www.td.com/documents/PDF.economics/quef/prov.1012_update.pdf>

[7] Burelton, Derek, Mareil, Jaques. (July 2012). Provincial Economic Update. TD Economics. Retrieved at <http://www.td.com/doc/PDF/economics/qef/prov0712_forecast.pdf.> (1-16)

[8] Ibid

[9] CMHC Reports. (September 2012) Canadian Housing Market: Starts to Slow, Resales Stable in 2013. Housing Market Outlook. Retrieved at <www.cmhcschl.gc.ca/odpub/esub/61500161500_2012_Q04.pdf?fr=13528820937211> (1-32)

[10] Ibid

[11] Ibid

[12] Ibid

[13] Ibid

[14] CMHC. (January 2012) Rental Market Report- Ontario Highlights. CMHC Housing Market Information. Retrieved from < www.cmhcschl.gc.ca/odpub/esub/61500161500_2012_Q04.pdf?fr=13528820937211>

[15] Ibid

[16] Lobo, Derek. “Stable Markets in Peterborough and Belleville.” Derek Lobo-Apartment Expert. Word Press. 14 May 2009. Retrieved at < http://www.rockaptadvisors.ca/blog/?p=212

[17] Ibid

[18] Ibid

[19] Ibid

[20] Ibid

[21] CMHC. (January 2012) Rental Market Report- Ontario Highlights. CMHC Housing Market Information. Retrieved from < www.cmhcschl.gc.ca/odpub/esub/61500161500_2012_Q04.pdf?fr=13528820937211>

[22] Lobo, Derek. “Stable Markets in Peterborough and Belleville.” Derek Lobo-Apartment Expert. Word Press. 14 May 2009. Retrieved at < http://www.rockaptadvisors.ca/blog/?p=212

[23] Ibid

[24] CMHC. (January 2012) Rental Market Report- Ontario Highlights. CMHC Housing Market Information. Retrieved from < www.cmhcschl.gc.ca/odpub/esub/61500161500_2012_Q04.pdf?fr=13528820937211>

[25] CMHC. (January 2012) Rental Market Report- Ontario Highlights. CMHC Housing Market Information. Retrieved from < www.cmhcschl.gc.ca/odpub/esub/61500161500_2012_Q04.pdf?fr=13528820937211>

[26] CMHC. (January 2012) Rental Market Report- Ontario Highlights. CMHC Housing Market Information. Retrieved from < www.cmhcschl.gc.ca/odpub/esub/61500161500_2012_Q04.pdf?fr=13528820937211> (chart pg 17-22)