Century 21 2007 KickOff

WOW!!

What an event! I have to say that Century 21 sure knows how to put on an event. Their KickOff Event is an annual conference filled with motivational and insightful speakers. There is also an accompanying trade show as well. For many Realtors this event is a must attend. And so it is for many vendors and suppliers.

RealCash Bancorp was there as well! And boy, were we BUSY! There was lots of questions and inquiries about our company and services. Before I tell all of you a little bit about us I need to do something first…

Congratulations to Debra Jafelice, Sales Representative for Century 21 Today Realty for winning our special draw. Debra won a personal coffee maker from Cuisinart! Congrats Debra!

RealCash provides commission advances to Realtors across Canada. If you or any of your associates are in need of immediate funds, RealCash will purchase your earned commissions from your firm residential re-sale deal and deposit the funds into your bank account. It’s a simple and easy process. And FAST!

If you are wondering why someone would need this type of service just read what some of your associates have to say. You can read their comments by visiting our website at www.RealCashCanada.com and clicking on the Testimonials Link.

Well, that’s all for now!

Keep your eyes on THE BLOG for up to date information on all things pertaining to real estate!

I look forward to helping many of you soon.

Regards,

Karim Kanji
1.800.265.2694

Century 21 2007 KickOff

I look forward to meeting many of you on Wednesday February 7th 2007. Century 21 is holding their annual KickOff event this Wednesday and RealCash is excited to be participating again. Come visit us at Booth 42. I’ll be there from 8am until 2pm. See you there!

Karim Kanji

CMHC Housing Market Outlook – 1st Quarter 2007

The First Quarter 2007 Housing Market Outlook Analysis has just been released and sent to my email by the good folks from CMHC. To take a look at it click HERE.

Mattamy Homes provides on the job training.

Resale market growth falls for first time in five years. Read article HERE. However, resale market should grow over 16% by 2010. Read this article HERE. And while you’re reading the new HighRise Condo market continues to sell at record levels. So Read HERE.

Confused yet? Excited? Depressed? Want more? Read Bob Finnigan’s opinion and analysis HERE.

Thoughts and news from real estate

Some thoughts before I bring you some interesting bits of real estate news from around Canada and the World…

Stop me if you’ve heard this already. Actually, you can’t stop me. you can only stop reading. Anyways, the stock market is chugging along, the housing market seems to be moving upwards with no end in sight, and many people are saying that interest rates are going to come down even more. Do you see a problem here? Everything seems to be doing great! Now, I’m the last person to be a doomsday soothsayer, however, something doesn’t seem right here. Should there be a balance in the marketplace? Is the recent news of BMO layoffs the beginning of something bigger? Stay tuned. In the meantime, continue to take advantage of these trends. Change is good! Remember this.

Now on to the news….

As many of you know, www.RealCashCanada.com has a News Section. Please visit it for Real Estate News from Globe & Mail and RIS Media.

A Canadian Gold Medal Renovation.

TTC and Land Development – “May I have a Transfer, please?”

Varsity Stadium grows up to become Varsity Centre.

Hey Realtors! Check out FACEBOOK. It could be a great Prospecting tool for you. www.Facebook.com

Petro-Dollars make 5,0000 Calgarians owners of $1M homes.

Opps! ReMax did it again!

Congratulations to Elli Davis – Top Royal LePage real estate salesperson in T.O.

11.1% increase in 2006 in the re-sale market.

www.HomesByOwner.com – Can you guess what this website is all about? That’s right! It’s a prospecting site 🙂

Cost of Housing too much to bear for 25% of Canadian households.

Montreal and Vancouver prices and demand goes up while U.S. new home sales plunge.

KPMG Weekly Newsletter – For the Week Ending January 28, 2007

January 29, 2007

The following information was obtained from newspaper articles appearing
in the Globe and Mail and the National Post for the week ending January 28, 2007:

Homburg Invest Inc. increased its stake in Alexis Nihon REIT from 8.6% to 19.5% by acquiring 2.96 million shares in a private placement. Cominar REIT sweetened its bid for Alexis Nihon to $18.50 from $17, with the extra $1.50 coming in cash. Cominar also extended the deadline to vote on the offer to February 22.
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Toronto-based FirstService Corp. invested a total of US$14-million to acquire controlling interests in two consulting companies. First Service purchased an 80% interest in the San Francisco-based hotel consulting group PFK Consulting Corp. and its PFK Hospitality Research. First Service also bought a 60% interest in Ottawa-based MHPM Project Managers.
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According to a prospectus filed by Column Canada Issuer Corp., the owners of the West Edmonton Mall, the Ghermezian family, are raising $600-million through the issuance of mortgages secured by the mall’s assets. The $600-million in proceeds received through the sale of multi-class pass-through certificates of Column Canada represent a stake in a first mortgage bond issued by West Edmonton Mall Property Inc. West Edmonton Mall is estimated to have an appraised value of $926-million, a 54% increase from the appraised
value of $603-million in April, 2003.
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In the fourth quarter of 2006, mortgage-backed securities transactions in Canada included $386.3-million by Canada Mortgage Acceptance Corp., $553.6-million by Merrill Lynch Financial Assets Inc. and $787.6-million by Real Estate Asset Liquidity Trust.
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Imperial Oil Ltd. will begin talks with Calgary City Council regarding the purchase of a laneway between two pieces of property it owns, as part of a potential plan to build a new office tower in Calgary. Imperial is considering building a 35-storey, 700,000-square-foot tower to house employees now working in three buildings.
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Vancouver-based Concord Adex Investments Ltd. is planning to build 20 condominium towers with nearly 4,000 units on about 40 acres of land near the southwestern corner of Sheppard and Leslie in Toronto. Concord purchased the land from Canadian Tire Corp. for $149.7-million in October, 2006.
According to N. Barry Lyon Consultants, 9,995 new condominium suites along the Sheppard corridor will go on the market in 2007.
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According to J.J. Barnicke Ltd., the office vacancy rate in the Broadway Corridor in Vancouver is 3.4%, compared with about 6% in 2006. The vacancy rate for light-industrial tenants in the area is below 1%. By 2009, two new projects in the area will add 420,000 square feet of retail and office space occupied largely by national retailers. Vancouver-based PCI Group’s Crossroads project will redevelop the site of the former Fairchild Plaza mall with about 98,000 square feet of office space, 122,000 square feet of retail space and 98
condo units. Grosvenor Canada is developing a $150-million mixed-use project on a 2.2- acre site that will include big-box retailers, such as Home Depot.
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According to Canaccord Adams, the Canadian REIT sector is expected to produce a 12% to 15% total return in 2007.
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According to Demographia International, Canada’s housing market is the most affordable among six countries that include the U.S., Ireland, Britain, Australia and New Zealand. Regina was tied for first place with Fort Wayne, Indiana, and Youngstown, Ohio, as most affordable among 159 major urban housing markets. It would take a worker earning the average wage in Regina two years to make as much as the average home price in that city. Winnipeg and Quebec City placed ninth at 2.5 years. Vancouver made the list of the top 25 least affordable cities at 7.7 years of annual income to equal the average price of a home. The most expensive cities were Los Angeles at 11.4 years and San Diego at 10.5 years. Australia had the least affordable housing market of the six countries.
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According to Re/Max, residential housing values in Canada rose 264% to an average of $276,824 in 2006 from $76,021 in 1981. Nationally, the compounded annual rate of return was 5.3% over the past 25 years. The largest gain occurred in Barrie, where the average home value soared 372% to $244,000 in 2006 from $51,665 in 1981. Prices climbed 297% to $257,481 from $64,854 in Ottawa, jumped 290% to $351,941 from $90,203 in the GTA,
and increased to $203,178 from $59,366 in Halifax-Dartmouth. Increases of 292% were reported in Montreal, 242% in the Greater Vancouver Area, 229% in Victoria and 227% in Calgary.
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According to Statistics Canada, homeowners’ replacement costs increased 8.2% in December from a year earlier.
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According to Urbanation Inc., more than 3,000 new condominium units were sold in the Toronto Census Metropolitan Area in the fourth quarter of 2006. Total new condominium apartment sales reached more than 113,000 units in the past 10 years.
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Blackstone Group LP raised its bid for Equity Office Properties Trust to US$22.4-billion, or US$54 a share from US$48.50. Including debt, the offer is valued at US$38.3-billion. The revised bid tops Vornado Realty Trust’s offer of about US$21.6-billion or US$52 a share.
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The value of takeovers of property companies in the U.S. doubled to nearly US$200-billion in 2006. Blackstone Group LP’s real estate funds have generated annual returns of 35% to 40% since 1992. Blackstone reportedly plans to raise another US$8-billion to US$10-billion real estate fund by June, 2007.
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Los Angeles-based Coastal Resources LLC purchased two adjacent Santa Barbara County cattle ranches from Bixby Ranch Co. for a price reportedly very close to the combined asking price of US$155-million. Both the 8,580-acre Cojo Ranch and the 15,814- acre Jalama Ranch are categorized in California as noncommercial properties.
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According to the National Association of Realtors, sales of existing homes in the U.S. fell 0.8% to a seasonally adjusted annual rate of 6.22 million units in December from November. Sales of condominiums rose 2.1%, while sales of single-family homes dropped 1.3%. Sales of existing homes for all of 2006 fell 8.4% to 6.48 million units from 2005, the biggest annual decline since 1989. Sales of single-family homes dropped 8.1% to 5.68 million, while sales of condominiums and cooperatives were down 10.4% to 803,000 units. Sales dropped 15.5% in the West, 7.1% in the South, 5.5% in the Northeast and 5.8% in the Midwest. The existing-home median price increased 1.1% to US$222,000. The NAR forecasts sales will decline 1.2% in 2007, while Fannie Mae projects a drop of 7% to 8%.
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According to Merrill Lynch, office vacancy rates in New York City are 10.3%, down 112 basis points from 2006. Rents are climbing 30% year-over-year in New York, making it the top office market in the U.S.
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According to the UK property Web site Rightmove, house prices are expected to rise 6% across the UK in 2007. The number of properties for sale is down 18% from January, 2006, helping to boost average prices 0.5% so far in January of this year. The price of an average home in the U.K. rose 13.5% in the past year and reached ÂŁ222,859 in January. Prices in the top end of the London market climbed 22.4% last year to a record ÂŁ356,192 ($826,353) and Savills forecasts a gain of 15% in 2007. The biggest increase in a London borough was seen in Kensington and Chelsea, where the average price grew 61.8% to ÂŁ1.15-million over the year.
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According to Standard and Poor’s, Macau reported that earnings from gambling activities climbed 22% to US$7-billion in 2006 from the previous year. Earnings from gambling activities on the Las Vegas Strip are reportedly expected to reach about US$6.6-billion for 2006. Macau’s earnings are projected to reach US$10-billion by 2010.
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Richard Branson, owner of Virgin Group Ltd., reportedly may open his first casino in Las Vegas or Macau and is seeking possible partners.
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Real Estate Blog, Re/Max Report, and more!

I recently came across a real estate blog which some of you may find interesting. It’s called Ken’s Blog. Ken has written some very interesting articles. He also highlights some of the things they are doing at his office and at the local Board. I encourage you to check it out!

Then there is all this ‘news’ about the growth in the Toronto market over the past 25 years. 290%!! Wow! Wow! Wow! To view the Re/Max Canadian report click HERE. It’s a very interesting report and will no doubt fuel even more real estate activity. Hmmmm….Re/Max fuelling more activity as mortgage rates climb (although slowly), layoffs at major corporations start to happen, and also while companies start to fall short of market expectations. Interesting to say the least.

For a quick coast-to-coast take on this article go HERE.

To read the Toronto Star’s take on the report click HERE.

The Globe and Mail also has an article on the report. You can find it HERE. There is also some very interesting commentary on the report from readers across Canada. Check it out HERE.

CBC.ca, Canada News Wire, and Canada.com also reported on Re/Max’s findings.

Now what would you say if I told you that someone once told me that what goes up usually come down? I’m just the messenger. But check out THIS REPORT about a ‘downturn’ in resale prices.

Ever wonder why you get confused about owning a home and the masive debt/mortgage that keeps you up at night? Check THIS out.

KPMG Weekly Newsletter – For the Week Ending January 21, 2007

January 22, 2007

The following information was obtained from newspaper articles appearing
in the Globe and Mail and the National Post for the week ending
January 21, 2007

Brookfield Asset Management Corp. has agreed to purchase Mills Corp. for US$1.35-billion in cash, or US$21 a share. With debt and preferred stock, the total value of the deal is about US$7.5-billion. Brookfield will provide debt financing for Mills until the transaction is completed, probably in the second half of 2007. Brookfield’s long-term goal is to bring institutional partners into the acquisition.
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Kentucky-based Ventas Inc. is offering $2.14-billion (including debt), or $15 a unit, for Sunrise Senior Living REIT. A special committee of the Canadian REIT’s board is recommending acceptance of the offer.
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Chartwell REIT will spend $52-million on new acquisitions, mezzanine financings and the expansion of a nursing residence. Chartwell purchased a retirement home in Ontario for $22-million from Spectrum Seniors Housing Development LP and its partners. The REIT also acquired a 50% interest in the Peninsula Retirement Residence in White Rock, British Columbia, for $14.6-million and is investing about $3.1-million to expand a five-storey building attached to Manoir Pierrefonds in Montreal.
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RioCan REIT closed a $151.5-million equity offering of six million units at $25.25 per unit through a syndicate of underwriters led by RBC Dominion Securities Inc. The proceeds will be used for acquisitions, including partially funding the recent $223-million purchase of the Yonge Eglinton Centre office-and-retail complex in midtown Toronto. The underwriters have the option to issue 600,000 additional units, which would generate additional proceeds
of about $15.2-million.
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The Greater Toronto Airports Authority plans to lease land for a new hotel development and two office towers as part of a $300-million development project on a 15-acre site now used for parking. The proposed project could include between 300 and 400 new hotel rooms, and up to 400,000 square feet of office space in buildings limited by regulations to a height of about 12 or 13 storeys, as well as conference, restaurant and retail space. A request for proposal has been issued to the real estate community and the winning
developer is expected to be named in April, with preliminary planning work beginning in the summer of 2007.
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Alcan Inc. has purchased the Salvation Army’s heritage-protected sanctuary and adjacent administrative building in Montreal, as part of a plan to expand its 25-year-old headquarters next door. Alcan plans to spend up to US$50-million to renovate and expand its head office complex.
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Summit REIT, owned by ING Real Estate, reportedly acquired its 19.9% stake in Alexis Nihon REIT by purchasing about 2.8 million units from Fidelity Investments. Halifax-based Homberg Investment Inc. has purchased an 8.6% stake in Alexis Nihon.
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Toronto-based Whiterock REIT announced last week that it is seeking a buyer or a merger partner.
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Former Royal Host REIT CEO Greg Royer and his brother Terry purchased Royal Host’s US$3.6-million U.S. hotel management business in December and plan to grow it to 125 hotels by the end of 2007.
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Magna Entertainment Corp. will cease operating the Great Lake Downs racetrack in Muskegon, Michigan, after the 2007 race meet. Great Lake Downs is expected to generate a pretax loss of about US$1.8-million for the year ended December 31, 2006.
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According to Royal Bank of Canada, Canadian REITs generated returns of more than 25% in each of the last two years. In 2006, the market capitalization of REITs listed on the TSE rose nearly 40% to $31-billion.
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According to the city of Vancouver’s recent jobs and land-use plan, downtown Vancouver will need about 65 million square feet of space to accommodate job growth over the next 20 years, which is about 10 million more square feet than the capacity under current land-use regulations. According to Cushman & Wakefield, Class A office vacancy rates in downtown Vancouver have dropped to 3.3% from 12.3% two years ago. There are currently 47 residential buildings under construction in the city’s central core.
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According to the Canadian Real Estate Association, sales of existing homes in Canada totalled 336,271 in 2006, down slightly from a record 336,513 units in 2005. Calgary, Edmonton, Saskatoon, Winnipeg, Sudbury, Ottawa, Montreal and Quebec all set records for sales activity last year. Sales in December increased 4.9% to a seasonally adjusted 29,077 homes from 27,707 in November. Sales rose to a record monthly high of 2,015 units in Calgary, up 18% from November. New listings fell 0.6% nationally to 46,482 units. Average
prices in major markets rose 10.6% to a record $294,270 in 2006. The average price in December climbed 8.1% to $294,190. Prices increased 9.2% in the fourth quarter from a year earlier. The average price of a home in Calgary rose 32% to $361,611 in December from a year earlier.
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According to Canada Mortgage and Housing Corp., construction starts on low-rise housing across the GTA fell 14% to 20,765 units in the period from January to November, 2006, from 24,247 units during the same period in 2005. The average price for a new detached home across the GTA increased 10.1% to $450,483 from $408,839. In Durham Region, the average price rose 11.9% to $341,853. In Halton Region, the average price climbed 20% to $507,920, with average prices of above $500,000 in Burlington and more than $650,000 in Oakville.
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According to the Toronto Real Estate Board, sales of existing homes in the GTA rose 6% to 1,592 units in the first half of January from 2006. The average price dropped 1% to $340,793 from December but was up 10% from the same period in 2006.
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Vornado Realty Trust teamed up with Starwood Capital Group Global LLC and Walton Street Capital LLC to offer US$21.6-billion, or US$52 a share, for Chicago-based Equity Office Properties Trust. This tops Blackstone Group LP’s offer of US$20-billion, or US$48.50 a share, accepted by Equity Office’s board on November 19.
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Morgan Stanley Real Estate will purchase CNL Hotels & Resorts Inc. for about US$4.2-billion, or US$20.50 per share, including debt to take control of 8 luxury hotels. CNL Hotels will sell its remaining 51 properties to Ashford Hospitality Trust for about US$2.4-billion in cash immediately before its transaction with Morgan Stanley.
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Investor Carl Icahn boosted his stake in Florida-based home builder WCI Communities Inc. to 6.1 million shares, or a 14.6% interest, from 1.7 million shares.
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The U.S.-based National Association of Home Builders/Wells Fargo index of sentiment climbed to a six-month high reading of 35 in January from a revised 33 in December.
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According to the Mortgage Bankers Association, applications for U.S. home mortgages have risen in seven of the past 11 weeks and are up 17% from their 2006 low in late October.
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According to the National Association of Realtors, the median price of a new home in the U.S. is projected to climb 3% in 2007 to US$248,900, following a 0.3% increase in 2006.
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California-based Mortgage Payment Deferral Inc. has launched a “no payment for 12 months” mortgage and plans to offer the product across the U.S. this year.
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According to Mitchell, Maxwell and Jackson Inc., the average sale price of Manhattan apartments fell 5.7% in the third quarter of 2006. The average price of a condominium in the fourth quarter dropped to US$1,079,363 from US$1,144,024 a year earlier. Sales of properties worth more than US$2.5-million climbed from 4.7% to 6% of all transactions in the fourth quarter.
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