http://grantnelsonrealestate.kw.com/

Grant Nelson Real Estate, 245 Wyecroft Road, Oakville, ON (2026)

09/05/2022

Ever thought about owning your own bar or restaurant? I know I have. If so, keep reading!!

Small to medium sized bars in TO are around 250k for an established business with existing clientele and employees, a liquor license, and about 1250-1500sq of rented space (avg occupancy 80-100 ppl). Not bad eh?

Of course if you plan to redesign the space, you need a solid timetable and additional finances.

Monthly operating costs for a bar of this size is around 25k. This includes F&B costs, labour, rent, taxes, maintenance and insurance.

Profit margins (net) for bars are around 15% on average. Based on this example: if you brought in 35k revenue each month, you could see a net profit of just over 5k.

To do this, you would need to consistently bring in around 300 covers per week with a $30 pp check average. Hitting these targets could mean that you’re running a profitable business in Toronto! Initial start-up costs could be paid off in 2-3 years and if it takes off, even sooner (or you may sell at a higher value and make some cash).

Sound interesting? Please like or share this post. If you or someone you know is interested in learning more about the exciting opportunities to buy or lease bars in Toronto, send me a message and we can talk more.

07/31/2022

Love to hear from some Condo and Homeowners…what are your Pros and Cons?

Condo Pros:
1. Typically, less expensive to buy
2. Condo Fees cover building mechanical systems, window cleaning & snow removal
3. Maintenance fees are predictable
4. Greater rentability

House Pros
1. Higher property appreciation
2. More improvement opportunities
3. You aren’t subject to the condo board’s rules or decisions
4. Land ownership

Condo Cons
1. Condo rules can be restrictive
2. Condo Fees – sometimes hard to measure value for cost
3. Special assessment and condo fee increases – legal, structural, or financial problems can have serious consequences on owners

House Cons
1. Higher cost to buy – bigger down payment and higher ongoing mortgage costs
2. More bills…garbage, water, utilities, and insurance.
3. Home repairs are harder to predict and can get expensive fast
4. House maintenance isn’t just about money – it takes time too.

07/26/2022

In recent news it’s said that you need personal income of over 220k and a 20% down payment if you don’t have access to the first-time home buyers plan to purchase a home in the GTA. Yikes!

Maybe you’re thinking, “Better to stay put, I’ll just keep renting for a while” …well a new report by Urbanation states that GTA rent prices rose by “the fastest pace on record”. So where do you go from here?

While positive cash flow opportunities are hard to come by in the GTA, there ARE ways to find a deal with the right guidance and information.

“Great opportunities are not seen with your eyes. They are seen with your mind. Most people never get wealthy simply because they are not trained to recognize opportunities right in front of them.” - Rich Dad Poor Dad

While these opportunities may appear out of reach, I’d love to hear what your thoughts are? Please like, comment or DM me if you want to talk.

Have a great week!

07/12/2022

The thought of investing in Real Estate can be overwhelming. The thought of investing in land, well that can sound outright ridiculous. The question of what to do with land after you’ve purchased it can quickly dismiss the idea as an option all together.
The reality is, when it comes to investing your money, a piece of land has always been a valuable commodity to consider. Here are a few great reasons to consider purchasing land as an investment:

1. It’s a Great Retirement Plan

If you own land, you can think of selling land at a reasonable sale price later. Alternatively, like real estate you can rent it for a fixed monthly price. So, owning a parcel of land is not just a good investment, but it can really help your personal finances grow during retirement.

2. It Can Be a Great Source of Passive Income

Passive income is money earned in the background of your other revenue streams. For example, a job would be considered an active income because you are paid to show up each day. However, passive income requires either a one-time or very little effort.

3. Buy Raw Land or Vacant Land to Diversify Your Net Worth

Investing in land, even if it is raw land with zero development, is one of the best methods to diversify your net worth.

4. Land Investments Steadily Appreciates, Especially in Good Locations with Proper Road Access.

It’s as simple as that. The great thing about land is there will always be a use for it!

If you or someone you know is interested in learning more about purchasing land, please like this post and send me a DM

Have a great week everyone!

07/05/2022

The idea of putting my hard-earned money into a “machine” that generates regular cash flow has always been part of my dream in achieving financial independence. If I can help the people I know towards achieving similar dreams, I know this will contribute to a meaningful life.

Over the next few weeks, I’ll share some basic real estate investment information for any of you (or anyone you know) who might be thinking about how investing in an income property can change your life for the better. This week we look at some basic terminology and next week we'll go over how to calculate the ROI (Return on Investment) on an income property. Thank you for your time in reading this and please like, comment or share with a freind.

There are three ways to make (or lose) money by investing in real estate:

Equity
When a tenant pays down your mortgage, you’re building equity. For example, you buy a property for $600,000 with a $120,000 downpayment and you apply the rent to the mortgage and rent it for 25 years. Eventually, you will have a mortgage-free property. When you then sell that property for $800,000, you’ll have built up $680,000 in equity (and you’ll get your original investment of $120,000 back).

Cash flow (cash return)
The difference between what you collect in rent and the expenses you pay out. In Toronto, cash flow positive properties (purchased with 20% downpayment) are hard to come by, though it’s fairly common for investors to break-even on a monthly basis (meaning that the rent they collect is equal to the expenses they pay). Cash flow is also affected by your downpayment and mortgage terms.

Appreciation – When you sell your investment property for more than you paid, that’s called appreciation. For example, you buy a triplex for $1,300,000 and later sell it for $1,600,000, that $300,000 difference is the appreciation in the value of your

Two other terms you should consider when looking at an income property

Financing
Unlike purchasing a home, you’ll need at least 20% of the purchase price for a down payment, and only a portion of the income you get from rent will be considered in qualifying you for a mortgage (usually 80%). For some commercial property investments, you’ll likely need a down payment of 50%.

Taxation
In Canada, cash flow from rent is considered income, and subject to income tax. If you sell your property after it's appreciated in value, the increase in value will be subject to capital gains taxes.

I hope this was helpful to some of you and as always, please feel free to reach out if you would like to discuss this topic further or just connect over real estate market news in the GTA.

Have a great week!
G

06/27/2022

MARKET MONDAY'S

Hey everyone, the current market conditions have changed from even just a few weeks ago! However, this does not mean that you won’t get a favourable price if you do decide to sell. What it does mean is that sellers will need to shift their strategy. Here are three strategies to consider to avoid having your home sit on the market for longer than neccessary or sell at a price your not happy with.

1. Price Your Home Based on its Actual Value:

In the past two years, many sellers were pricing their home under its market value to drive a bidding war. We are seeing fewer and fewer bidding wars, so the best strategy is to price your home based on its actual value. Your real estate agent should use your appraisal as well as recent comparables to determine your home’s current market value. The last 15-30 days of recently sold properties in your neighbourhood may be more representative of its current value versus the previous month or during this past winter.

2. Be Prepared for Conditions and Negotiations:

Conditions are back and most sellers should expect to receive offers with conditions. Common conditions include home inspections, financing, and even sales that are conditional on the buyer selling their own property. There is always room to negotiate when conditions are on the table, but plan to work with your agent to decide what makes the most sense for your situation.

3. Plan for a Longer Listing Period:

In the height of the pandemic, homes were selling practically overnight. In May 2022, the average listing days on market was 12 days. This is still quite low and only an increase of 9.1% year-over-year, but higher interest rates could lead to homes sitting on the market longer. More preparation to your home before hitting the market like decluttering, staging, small renovations and professional photos may make your home stand out versus your neighbour’s home that is also competing for a buyer. Properly and professionally listing your home in a balanced or buyer’s market is essential when attempting to reduce the listing period.

If you would like to discuss further, or know someone who is thinking of selling or buying a home and would like a free Comparative Market Analysis, please let me know.

06/21/2022

Hey everyone, even though the market seems to be softening, many people still have strong opinions about which is better: buying your own home or renting from someone else. In reality, both have their benefits, and which you choose will depend on your lifestyle, budget, needs for the future, and the current condition of the real estate market. (Easier said than done, right?)

Benefits of Owning

1. Forced savings
Every month, you pay yourself. Building equity. If saving money doesn’t come naturally to you – this is a great opportunity to force yourself to put money aside and help it grow

2. Real estate has permanent value
Even if the stock market changes, your home or land will still be desired in the future – especially if it’s located in a growing market.

3. Option for rental income
When a home is yours, you have the option of renting it over the short or long-term, to cover your costs. This can give you flexibility, if you need to move for work, or want to rent a different property.

The Downside of Owning

1. All costs are your responsibility
Owning a home forces, you to have a larger emergency fund than renting. If your appliances break, if your roof is leaking, or if your furnace conks out—all expenses will be covered by you, out-of-pocket.

2. Loss of flexibility
When renting, you’re free to move as soon as your lease is up, which makes moving quick and relatively painless. When you own, you’re locked in with a mortgage; it’s more work and money to list your home and possibly break your mortgage.

3. Big debt load
Your mortgage is likely the largest debt you’ll ever take on. Some people don’t deal well knowing they have debt, so buying with a mortgage is not for everyone.

Benefits of Renting

1. Flexibility
When you rent a place, you’re getting exactly what you want, when you want it. You can move to fit your life—upgrading to a bigger place or moving closer to work. You can move as often as you want with minimal costs.

2. You can Invest in the real estate market without even owning
A real estate investment trust (or REIT for short) is a balanced form of investment in the market. You can choose how much or little you invest, and it doesn’t have to be limited to a region.

3. Invest how you want
If you’re not forced to invest your money in your home, you can invest it anywhere

Downside of Renting

1. You can be told to leave
When you own, you know you’re in control to make the decision to stay or go. When renting, you give that power to your landlord, who can evict you if he or she decides to move back into the home, or sell it.

2. You don’t have control over the aesthetic of your home
A landlord doesn’t have much incentive to upgrade your rental. As long as appliances are working, and the structure is keeping you safe, your landlord can turn a blind eye to an old fridge or peeling paint.

3. Paying off a mortgage for someone else!
The longer you decide to rent and pay off someone else’s mortgage, the farther your own dream of owning property gets away from you. The price of real estate will always go up over time…why not pay yourself in the way of paying down a mortgage and gaining equity in a valuable asset rather than risking having to pay just as much in the rising cost of rent for short-term satisfaction.

Either way, if you would like to get started on finding out what options are available to you, and dive deeper into the benefits and downsides of buying vs renting in your neighbourhood, send me a message. Let's find out what works for you.

GN

05/01/2022

What Is a Comparative Market Analysis?

A comparative market analysis (CMA) is an estimate of a home's value based on recently sold, similar properties in the immediate area. Real estate agents and brokers create CMA reports to help sellers set listing prices for their homes and, to help buyers make competitive offers.

Understanding Comparative Market Analysis

A comparative market analysis helps sellers choose the best listing prices for their homes. The "best" price is the one that's not so low it leaves money on the table, and not so high that the home doesn't sell at all. For buyers, a CMA can verify if a home is a good deal and help pinpoint a competitive offer that will be taken seriously—without going overboard.

A CMA compares a subject property to other homes that are similar in location, size, and features. Ideally, a CMA uses recently sold homes from the same subdivision as the subject property. Of course, finding homes that sold within the last three to six months in the immediate area can be difficult if you're in a cool real estate market or a rural setting. In these cases, a formal appraisal might be a better option.

Message me to schedule your free CMA!

05/01/2022

I am excited to share with everyone that I’m embarking on a second career path as a Real Estate professional with Keller Williams. This has been a long time coming.

My journey in hospitality has centered around creating memorable experiences and helping the people I work with achieve their career goals. I am thrilled to now help people discover real estate markets in the GTA and change their lives by supporting them in finding, purchasing, and selling their first home or investment property.

I invite you to like and follow this page for one reason - you have been a part of my life in some way or another and I want to make sure you know that being connected is something I value.

I'll update this page with real estate news from Mississauga and Oakville; two exciting markets with incredible growth and development already underway.

Finally, there is never a referral too small or too big so think of me and hopefully we will talk soon.

P.S - check out my new real estate website!

grantnelsonrealestate.kw.com

Thank you,
Grant Nelson

Grant Nelson Real Estate

09/05/2022

07/31/2022

07/26/2022

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06/27/2022

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