Baron Realty http://www.baronrealty.ca/en/ en-us Mon, 21 May 2012 01:51:17 GMT The low interest rates and the effect on the yield the-low-interest-rates-and-the-effect-on-the-yield It seems that today's multi-residential market is in a bit of a dilemma. With the interest rates being very low (a 5 year CMHC insured loan for amounts greater than 1 million dollars hovering at the low 3% ranges), the asking prices on the multi residential apartment buildings have gotten to be expensive where the buyers will have low returns on a return on investment (ROI) basis.

If looking to invest in apartment buildings, Locking a 3% loan for 5 years is very beneficial to the investor. Over those 5 years, at a 3% mortgage rate with a 25 year amortization, more than half the mortgage payment has gone to the principal. This fact should not be forgotten when crunching our yields. 

]]> Fri, 30 Mar 2012 00:00:00 GMT the-low-interest-rates-and-the-effect-on-the-yield The environmental inspection, when should we do it the-environmental-inspection-when-should-we-do-it One of the major issues that we we are seeing in our market today that could affect all commercial transactions are the environmental contaminations that a property may potentially have. If you are a seller, and there is a risk that your soil may be contaminated (say there is or was an underground oil tank , or there the site used to be a commercial business that may have polluted, say a dry cleaner, or if your property has never had an environmental test performed on it) then it is best to before putting the property on the market to have it tested by one of the reputable firms for environmental contamination to get a proper clean report for the potential financing of the purchaser. All commercial properties need to have these tests done today, being forced by the lenders, itâ??s prudent to this up front instead of waiting at the end, since this could potentially be a disaster when a purchaser spends money and time for inspections, loan application at the bank, gets everything approved, reviews all the due diligence documents, and after all is said and done, the environmental inspection comes with contamination, thus causing the whole transaction to come to a halt.

]]> Tue, 03 Jan 2012 00:00:00 GMT the-environmental-inspection-when-should-we-do-it What expenses are there related to selling a multi-residential building? what-expenses-are-there-related-to-selling-a-multi-residential-building

There are a number of expenses an owner should anticipate when selling their apartment building.  It is important to note that each owner will have variations with respect to their tax consequences based on the initial purchase price, capital cost allowance taken throughout the years of ownership and their personal tax situations.  It is best to consult with an accountant familiar with the property to determine  the specific tax consequences of a sale.

Below is a list of expenses and or documents required in order to complete the sale process:

There are a number of expenses an owner should anticipate when selling their apartment building.  It is important to note that each owner will have variations with respect to their tax consequences based on the initial purchase price, capital cost allowance taken throughout the years of ownership and their personal tax situations.  It is best to consult with an accountant familiar with the property to determine  the specific tax consequences of a sale.

Below is a list of expenses and or documents required in order to complete the sale process:

A new Certificate of Location. The cost will vary depending on the number and size of the building(s) sold.

The Notarial Acquittance. This is paid by the seller to the notary to remediate any lien in place.

In the event that there is a current loan in place that a buyer is not prepared to assume, a loan penalty generally equivalent to the interest the bank would earn over the remaining term would be required to cancel the loan.  Best to check with your bank/lender for the exact amount.

Capital Gains Tax

 

]]> Tue, 03 Jan 2012 00:00:00 GMT what-expenses-are-there-related-to-selling-a-multi-residential-building What are the steps that I need to do if I’m thinking about selling my building? what-are-the-steps-that-i-need-to-do-if-i-m-thinking-about-selling-my-building There are a number of expenses an owner should anticipate when selling their apartment building.  It is important to note that each owner will have variations with respect to their tax consequences based on the initial purchase price, capital cost allowance taken throughout the years of ownership and their personal tax situations.  It is best to consult with an accountant familiar with the property to determine  the specific tax consequences of a sale. Below is a list of expenses and or documents required in order to complete the sale process: A new Certificate of Location. The cost will vary depending on the number and size of the building(s) sold. The Notarial Acquittance. This is paid by the seller to the notary to remediate any lien

]]> Tue, 03 Jan 2012 00:00:00 GMT what-are-the-steps-that-i-need-to-do-if-i-m-thinking-about-selling-my-building