What are standard prices for Newmarket rental properties in 2016? Let’s take a look at some recent sales
Newmarket rental property, Newmarket income property, Newmarket investment property … there are many different names but we all know what we are talking about.
Newmarket is the hot new market for buying properties in 2016. There is a lot of excitement from buyers and investors the rest of Ontario and even around the world. In this type of hot market it’s very important that both Buyers and Sellers are aware of the current prices in the real estate marketplace.
Newmarket Real Estate Buyers
Buyers want to know what prices are in the area so they can compare and buy the best property out there for a fair price
Newmarket Real Estate Sellers
Sellers want to know what properties are selling for so they can make sure they get a fair price for the house they are selling.
One problem is we continue to see lots of Newmarket rental properties (or income properties or investment properties…however you want to call it) listed for sale for low ball prices. By low ball prices we mean prices that are far too low for the market and far, far too low compared to other recent sold property prices.
These low ball listing prices hurt both sellers and buyers.
For buyers having a super low price usually leads to multiple offers. Serious buyers want to know the real price of a property to make a sound, rational decision on whether to buy or not and ridiculously low prices just lead to an unnecessary frenzy.
Many Newmarket House Owners Tell Us Some Real Estate Agents Low-Ball Prices in Order To “Sell Fast”
We have heard this from sellers. The agents don’t even care to create a multiple bid situation…they just want a “quickie sale” and if it leads to a loss of tens of thousands of dollars for the house seller? Well “them is the breaks, eh!”
As a property buyer it’s difficult to know what properties are really selling for. We need to rely on real estate agents. Unlike in the USA, the Canadian general public is kept in the dark by the real estate boards and not allowed to see what properties have sold for. This has gone to court because it’s not fair and anti-competitive. You can read it for yourself from the Toronto Star.
While there are lots of good real estate agents out there in our experiences there are also those who will only show you select compatibles to convince you to list your home at a low price.
Don’t Allow Anyone To “Low-Ball” the Value of Your Rental Property!
We continue to see properties that are listed for one low price, and then sell for $100,000+ more.
While some will say this is an ‘auction strategy’ in many cases it’s just sellers relying on their real estate agent and listing at a very low price to get a quick sale.
Why Would Some Real Estate Agents Rip You Off With A Low Listing Price?
Because they only get a percentage of the sale. So the difference between selling your life-long investment for $500,000 or $600,000 means a heck of a lot for you, it means only a small number for them. And they want to sell your property fast to get their commission….after all if they don’t sell fast you might drop them and find someone else, meaning the real estate agent gets no money from you. Their incentive is to sell cheap and sell fast! While the vast majority of agents are excellent you have to be careful of those who will low ball you.
Newmarket Landlords Knowledge is Power
We are here to help you by revealing what Newmarket rental properties are really selling for, unfiltered by real estate agents and a noncompetitive, secretive system that needs to change (and will change soon, hopefully).
Here a couple of half decent rental properties that have sold in Newmarket this summer.
1. Newmarket Dog Patch Area
Please note that both properties are in the Newmarket Dog Patch. The name isn’t meant to insult anyone, but some people say it has been called that because of the absentee landlords who invested there years ago and a lot of pet dogs were running free (one story has it that postal workers were afraid of the unleashed pets and that’s how it all started). So really the name may be be all about absentee landlords.
Where is this area?
It’s the area in Nemarket behind the Tim Hortons at Davis Drive and Longford Drive. It goes west to Yonge St. and east to Main Street and north to London Road. Maple Leaf Public school is there. It includes streets such as Harrison Dr., Penn Ave., Walter Ave., Cherrywood, Silverbirch, Sheldon, Newbury Dr., Maurice Court. Most rental properties for sale are in this area
While improving, this area is generally considered one of the worst areas of Newmarket.
First of all we want to make it clear the area is improving. There are a lot of good properties there, good investors, good landlords and good tenants. However, it’s not the best area and successful landlords and property investors know buying in a “prime time” area is a key to success!
There are also reasons to be cautious of this area compared to other areas in town. One of them being there are lots of absentee landlords who have invested there and don’t care who they rent to. This means it can be an unstable area and not the ideal place to be a good, serious, professional landlord or investor.
We heard of new landlords with rentals in the Dog patch complain how it can be difficult to attract good, paying tenants to the area. We have also heard stories from landlords telling us they rented to good, paying tenants but the tenants broke the lease and moved out. They moved out because of crime, noise, and neighbouring properties having lots of junk in their yards.
We also see lots of “for sale” signs in the area, year after year.
Remember: if a rental property is a true “winner” landlords will want to hang on to it for a long time! Usually the best rentals are only on the market because the owner is retiring and moving to Florida or Arizona, or there is a death in the family.
2. Legal Registered Units
These properties below are not legally registered with the Town of Newmarket. This is a big danger as tenants can use this against you. It can cost tens of thousands of dollars to register a unit with the Town of Newmarket. This is why we recommend always buying legal, registered rental properties in Newmarket.
31 Hill Street, Newmarket Ontario Sold for $593,000 on July 24, 2016
It’s not a bad look. And tenants love two story rentals. (Of course, it’s still in the Dog Patch area)
Living room is clean. Tenants like this look.
Kitchen is nice. Tenants love nice clean new kitchens.
Bedroom is pretty good. It’s got a clean and ‘new’ look that good tenants like.
Here is the basement unit. It’s okay because it’s clean. But it hasn’t been designed very well.
The backyard is pretty good. Good tenants like to have a back yard that is clean and usable.
41 Longford Drive, Newmarket, Ontario L3Y2Y6 SOLD FOR $550,000 In July 2016
This isn’t a bad investment but let’s do a critique.
1. Not a prime time area…actually it’s in one of the “worst parts of town”
The Dog Patch is improving, but it’s still considered one of the worst parts of town for reasons already explained.
2. Not the best neighbourhood…you have rental properties surrounding you and absentee landlords
Do you want absentee landlords as your neighbours? Who knows who they renting to!
3. Not an attractive property…the place needs thousands of dollars of upgrades
Some might even say it looks pretty run down….but it still sold for $550,000! This is the current market for Newmarket rental properties.
4 Ugly yard…it needs a lot of improvements.
This is another factor. Good tenants like nice yards.
5. You want to buy a legal, registered investment property
If you aren’t’ legal than any issue with your tenant means your tenant wins! And if there is a fire or other issue YOU WILL BE RESPONSIBLE.
If your basement unit is not legal you can be fined. Your tenants can even use this as an excuse to break your lease or not pay rent.
In Newmarket only buy LEGAL RENTAL PROPERTIES or you can, and will, get burned! You can even get criminally charged!
Futhermore, good tenants want to rent safe and legal properties.
The front yard is close to a very busy street.
The living room is basic.
The bathroom is small and cluttered. It really needs to be ripped out and replaced.
The rooms are basic. The flooring looks to be laminate, the cheapo kind. And, hey, did we see this type of light in the early 1970’s disco boom? Yuck!
The living room is…well let’s just say Archie Bunker would like it.
Archie and Edith would also like this 40 year out of date kitchen!
The stairs, um, the stairs to what?
The basement kitchen is tiny and the cupboards are originals, from the 1970s and needs to be replaced to attract good tenants.
The basement only has a shower, and a small sink.
There is a washer and dryer in a left over room with horrible flooring.
There is just a small one lane drive-way. This is not good for multi-tenanted unit. It’s important to have parking spaces for both your upper and lower tenants.
Newmarket Landlords Make Sure You List At The Right Price!
The entire Greater Toronto Area (GTA) has seen a lot of house price appreciation. The area has a huge amount of immigration each year and a large economy. We continue to see property owners have their rental properties listed at hundreds of thousands less than what the current market prices truly are!
Even a mediocre rental in the Dog Patch area sells for $550,000 these days. And it’s still good value compared to what rental properties are going for in places like Richmond Hill.