『Edmonton Garden Suites Are One of Canada's Biggest Real Estate Opportunities』のカバーアート

Edmonton Garden Suites Are One of Canada's Biggest Real Estate Opportunities

Edmonton Garden Suites Are One of Canada's Biggest Real Estate Opportunities

無料で聴く

ポッドキャストの詳細を見る

【Amazonプライム会員限定】今ならプレミアムプランが4か月 月額99円。

10月19日まで。※適用条件あり
Edmonton Garden Suites Are One of Canada's Biggest Real Estate Opportunities Today's episode is all about one of Wayne's favourite real estate investment opportunities right now: Multi-unit garden suites in Edmonton. Wayne and Gabby break down why Edmonton's current zoning creates an unusual opportunity to keep an existing house at the front of a property while developing multiple additional rental units in the backyard. For the projects Wayne is currently working on, the attraction comes down to three major things: Cash flow. Forced equity. The potential to refinance and redeploy capital. And unlike traditional infill development, the strategy does not necessarily require tearing down a perfectly good house. Why Wayne Started Looking at the Backyard When Edmonton changed its zoning rules to encourage more housing density, much of the development community focused on tearing down existing houses and building more units on the front portion of the property. Wayne looked at it differently. Instead of asking: How much more can we build if we tear the house down? He asked: What if we keep the house and develop the unused land behind it? That led to the multi-unit garden suite strategy. On the right Edmonton lot, Wayne says investors can potentially keep the existing house and add as many as four additional rental units in the backyard. Why Edmonton? According to Wayne, Edmonton currently provides a unique combination of: Flexible development rulesAffordable land and housingStrong rental demandHigh-paying employmentA strong tenant profileAlberta's landlord and tenant operating environment That combination is what makes the opportunity especially interesting to him. Wayne says that if this same development opportunity existed in a market where he did not want to operate a rental business, he would be far less interested. The market still matters. The Housing Accelerator Fund Wayne explains that Edmonton's zoning changes followed broader efforts to increase housing supply and density. He discusses the federal Housing Accelerator Fund and Edmonton receiving significant funding in exchange for housing and zoning initiatives designed to allow more homes to be built. Those changes opened the door to development opportunities that previously did not exist. Why the Opportunity May Not Last Forever One of Wayne's biggest warnings: Do not assume today's zoning rules will exist forever. Rules change. Municipalities adjust development regulations. Neighbourhood opposition can increase. Height, setback and density rules can all be modified. Wayne points to Calgary as an example of a city where development rules have already started changing. His concern is that investors may discover the opportunity after the rules have already become more restrictive. The Lots Are Limited Too Zoning is not the only constraint. The property itself needs to work. Gabby explains that multi-unit garden suites require enough usable backyard space. Wayne calls it needing a: "Big booty." A large backyard. That means investors are competing for a limited number of properties with: Large enough lotsThe right configurationA usable existing houseA purchase price that still makes the development profitable Today, Wayne says much of the competition for those properties is still homeowners. But if more investors and developers begin targeting the same lots, demand could increase. Wayne's First Fourplex Garden Suite Is Almost Finished Wayne and Gabby also give an update on their High Park multi-unit garden suite project. The four suites are essentially complete internally. Remaining work includes exterior items such as: SidewalksLandscapingFencing Wayne is preparing to begin marketing the four one-bedroom suites. This is one of five projects Wayne says they currently have underway. The Cash Flow This is where Wayne believes the strategy becomes especially compelling. On the type of fourplex garden suite projects he is developing, Wayne says there is potential for: $1,500+ per month in additional cash flow after financing and operating expenses. That is not gross rent. That is the projected remaining monthly cash flow from the additional units based on the project assumptions Wayne is discussing. How Does It Perform on the 5% Rule™? Wayne then applies his 5% Rule™ Cash Flow Test. His framework: 5–6% = minimum acceptable 7–9% = strong 10%+ = exceptional For the garden suite project discussed in today's episode, Wayne says the projected result is approximately: 13.8% or roughly: 14% on the Cash Flow Test. That is why Wayne considers these projects unusually attractive from a cash-flow perspective. Actual results will depend on construction cost, financing, rents, operating expenses, property price and the specific project. Cash Flow Is Only Part of the Opportunity Wayne says the bigger opportunity may be what happens to the value of the property after construction. Suppose the total amount invested into the property and development is one number...
adbl_web_anon_alc_button_suppression_t1
まだレビューはありません