Issuu

THE REAL ESTATE MARKET

Trends Impacting the Real Estate Market

Current Policy Changes Impacting Foreign Investment

+ Exclusive Interviews with

RYAN SERHANT REETU GUPTA SAM MCDADI

Canadian Housing Market Pre- and Post-Pandemic

HOW THESE CHANGEMAKERS

are Protecting Communities From Gentrification

How Tech is Enhancing the Single-Family Rental Market

SCOTT MCGILLIVRAY

Real Estate Investor & Top-Rated Star on HGTV’s Hit Series Income Property, Vacation House Rules and More... Summer 2022

Committed to carbon neutral operations by 2025. At Bell, we’re working to advance how Canadians connect with each other and the world. And while we’re in the business of communications, we’ve got our sights set on much more. From our pledge of carbon neutrality to creating a diverse and family-friendly workplace to giving back to local communities, we’re committed to making our world more prosperous, more sustainable, and more connected every day.

bell.ca/BellForBetter 66

the EDGE Spring 2022

today just got better

480.500.1818 charter@cwrightaviation.com www.cwrightaviation.com

C Wright Aviation and Cygne Jets Charter Flights and Business Aircraft Service with a Smile

OVERVIEW SUMMER 2022

EDITOR’S MESSAGE Generational Wealth

COVER STORY Scott McGillivray: Empowering Aspiring Investors to Succeed

Top Trends Impacting the Real Estate Market

Most Popular Global Cities for Investments

Reetu Gupta: C-Suite Hotelier and Philanthropist

Ryan Serhant: Real Estate and Reality TV Superstar

24 26 29 30 32 36 37 4

the EDGE Summer 2022

BUSINESS

ECONOMICS Canadian Housing Market Pre- and Post-Pandemic The Role of Real Estate in Canada’s Economic Development Jasmine Lee: Educating Clients and Families Ming Lim: Reaching Goals with Real Estate START-UP How to Help Millennials (and Gen Z) Get in on Real Estate Anshul Ruparell: Simplified Home Buying and Selling Richard Robbins: Results-Oriented Coaching for Realtors

OVERVIEW

SUMMER 2022

WINNERS' CIRCLE Susan Sun: How To Buy Your Dream Home

Rick Dhillon: Success Through Systems and Habits

Laura Scarlett Martin: Top 100 Global Finance Influencer

Debby Doktorcyzk and Patrice Groleau: Luxury Real Estate Power Couple

Shirely Antonio: Exceptional Service and Trust

TECH & INNOVATION Real Estate Innovations of the Last Ten Years…and the Next Ten!

How Tech is Enhancing the Single-Family Rental Market

Lauren Haw: Right Decision, Right Time

Sam Mizrahi: Sky-High Ambitions POLICIES

Policy Changes Impacting Foreign Investment

Benefits of Government Incentives on the Real Estate Industry

Gil Blutrich: Clean Air and Water Systems

Chandra Dhandapani: Multidisciplinary Teams

LEADERSHIP Changemakers Protecting Communities From Gentrification

Eric Eaton: Navigating the Eye of the Storm

Sam McDadi: Staying At The Top

65 Summer 2022 the EDGE

SUMMER 2022 F OUNDER & E DITOR - IN -C HIEF | J ENNIFER M. W ILLIAMS P RESIDENT C URTIS E LLIS P UBLISHER J ORGE M ARSHALL C REATIVE D IRECTOR A RMIS N. G OODARZI

A SSISTANT E DITOR R OSE H O

E DITOR -A T -L ARGE S HIRLEY G RAHAM

E DITORIAL A SSISTANT A RSLAN A HMED

GEORGE WILLIAMS | CHIEF OPERATING OFFICER KANIKA BHATIA | OFFICE SUPERVISOR

C REATIVE D ESIGNER U LAMA S AIF

G RAPHIC D ESIGNER M ARK M URRAY

RESEARCH ASSISTANTS ROSALEE EDWARDS, VIVIAN HERON RACHEL MITCHEL

A SSISTANT D ESIGNER G IOVANNI F ERRETTI

MARKETING & PUBLIC RELATIONS

JACK LIU | DIRECTOR OF MARKETING ORTHETA ANAN | MARKETING ASSISTANT NURSULUU USENOVA| MARKETING SUPPORT

CUSTOMER RELATIONS

ONLINE CONTENT CONSULTANTS

ARCHANA KESHARI, POOJA PATEL, JYOTI BHAKTIA, YASHASVI PANDAY FRTUNA TEKLAY

ALTHEA BLOOMFIELD KAREN SCOTT, VINCENTO COREY

TAXATION

DATA PROCESSING

MAUREEN MONTAGUE | EXECUTIVE BUSINESS DEVELOPER KRISTHINE FIRME | MEDIA SALES DAVID HIGGINS | SALES EXECUTIVE

SHIVI, GRACE DUNG ARCHANA RAND, JOEBELLE BACANI

ADMINISTRATION & SUPPORT

KENN JAMES , SHILPI BHARDWAJ MONAL NANDU

ACCOUNTING & AUDITING

ZAIDA RICAFRENTE | CHIEF FINANCIAL OFFICER WEI SHI | ACCOUNTING ASSISTANT JOSEPH GOMES | FINANCE VO NGOC, DHTHAO, CHAU

FINANCIAL SERVICES

RUTANSHI PARIKH | PAYROLL AND FINANCE PRABLEEN KAUR, ZONG XIAN, YIN JENOVONNE KIRTON-DEAR

DIT WEB SOLUTIONS INC. RESTCREATIVE AGENCY

TECHNICAL SUPPORT

DAMION SMITH | IT MANAGER MICHAEL KUKASCH | COMMUNICATIONS SUPPORT AMS GLOBAL SOLUTIONS

DEBBIE MUKHERJEE | EXECUTIVE ASSISTANT DONIQUE DALEY, VATHSALA VIMAL, KARYL LEPROZO

HUMAN RESOURCES

ANUPAMA KUMAR | HR MANAGER NAZIA SUKHRA | HR GENERALIST

RECRUITMENT & STAFFING LEO IKESON | RECRUITER

ADVISORY BOARD RONALD SIMMONS, NENZIE BROAKANDALIZA GARRY BAHADUR

HOW TO REACH US:

L ETTERS T O T HE E DITOR : editorinchief@theedgeleaders.com

S UBSCRIPTION S ERVICES :

The Edge, A Leaders Magazine 250 Consumers Rd., Suite 412 North York, ON, Canada, M2J 4V6

theedgeleaders.com/subscribe info@theedgeleaders.com

Tel: 416-773-1077 Fax: 416-773-0012

A VAILABLE A T :

ADVERTISING & SALES:

Chapters, Indigo & Newsstands across Canada

416-773-1077 advertise@theedgeleaders.com

THE

W EB :

WEB DEVELOPMENT

ADVERTISING & SALES

www.theedgeleaders.com

Publica�on Agreement

Please include your name, email, mailing address and phone number. The Editor reserves the right to edit or reject content.

S TORY I DEAS : We accept new content for our digital and print issues. Visit www.theedgeleaders.com/getpublished and submit your content for review.

The Edge Magazine is published four �mes yearly in Canada. No part of this publica�on can be reproduced without the permission of the Publisher. The opinions expressed herein are not necessarily those of the Publisher and The Edge Magazine or its team. Authors agree to grant The Edge Magazine exclusive rights to publish their works in English across Canada. The Edge Magazine cer�ﬁes that the content within is original and not in the public domain. Authors have warranted to the Publisher that they are the sole creator and proprietor of their work. They agree not to hold the Publisher responsible for any damages in the event of a viola�on of these warran�es. The Edge Magazine content will not violate the privacy of any individuals, nor will it contain any libelous or unlawful ma�er. Addi�onally, there will be no infringements upon the copyright or rights of any person or party. The Publisher shall make no changes to the content without the consent of the Author and shall submit the edited work to Author for approval beforehand.

editor's message

Generational Wealth With most of the pandemic restrictions behind us and having missed out on seeing many family members and friends for over three years, it felt like the right time for me to travel to Jamaica and re-connect. I planned a five-day stay while committing to visiting many individuals, from aunts and uncles to cousins and other relatives. For future investment and capital-flow opportunities, I also scheduled to look at houses and prime land in some new developments in Jamaica’s suburban and rural areas. Initially, the entire prospect seemed daunting and unattainable as my checklist expanded. I reached out to my siblings and closest relatives for support, and they assisted me through my journey. It was a hectic and exciting time as I shared real estate objectives and family matters. My great-granduncle Isaiah, now 84 years old and the most senior member of the first generation, looked very thin and frail. He shared stories about his many accomplishments, and fond memories of his parents and siblings. At the top of my to-do list was attending the seventy-fourth birthday party of my other great-granduncle, Manishky, and his wife Eda. Like most family members, they live in nearby homes or communities and take turns visiting each other regularly. In my pursuit of connection, business, and self-fulfillment, it occurred to me that although some of these family members had aged significantly, they continued to live in their own homes. They held large parcels of farming and livestock land in nearby districts, which were passed down through the family from generation to generation. They had owned these houses and properties for several decades, with many upgrades, re-modelling, and expansions completed over the years. Other family members scattered across the globe frequently return to vacation in these family-owned houses.

the EDGE Summer 2022

One of the high points of my visit was having discussions with my ”great-greats” as they expressed deep interest in the trending surge of social, political, and economic impacts on the real estate industry. Their growing enthusiasm was that the fourth generation was developing family-owned properties in many rural districts. In the past fifteen years, these younger members have moved gradually from the suburbs to avoid paying massive rent and leases on small, residential spaces. As a result, some properties have developed into short-term leases, Airbnb, and longterm rentals, stimulating strong economic growth. I applaud my family for their insight in appointing the appropriate executors to oversee the transfer of their homeownership and properties to continue creating generational wealth. On a national scale, other parts of the country are prime for new developments and are likely to remain this way for the foreseeable future, as demand for midincome housing has risen significantly in recent years. In addition, many more expatriates and foreigners are investing heavily in real estate for building apartments, vacation homes, townhouses, and luxury homes. The Jamaican residential real estate holdings have remained robust, and the economy’s relative strength — merged with logistics — will sustain strong buying-power long after the pandemic. According to Carlene Sinclair, President of the Realtors Association of Jamaica, “low mortgage rates and competition among mortgage providers have spurred home purchases.” The bottom line is that real estate is an asset that potentially yields significant wealth. Statistics have proven that real estate transfer can build portfolio diversity from generation to generation. Thanks for reading, and for the ongoing opportunity to be of service.

Jennifer M. Williams jennifer@theedgeleaders.com

“I applaud my family for their insight in appointing the appropriate executors to oversee the transfer of their homeownership and properties to creating generational wealth.”

Your home is worth protecting The right life insurance can help Here’s how a term life insurance policy can help protect your home and your family if something unexpected happens to you. Things to consider

Term life insurance

Mortgage Insurance*

Are the benefits paid to the beneficiaries you name?

Yes

When you re-finance your mortgage, do the premium rates stay the same?

Yes

Are you still protected if you move?

Yes, your life policy remains the same

If the loan is terminated, so is your protection

How much are you covered for?

You decide on the type of policy and the death benefit amount

Your coverage will automatically decline based on the outstanding balance of your mortgage

Contact me today to get a quote.

1920924CN

Stop in, call or click.

*All mortgage insurance plans are not the same. This is a general comparison only and may not be applicable to a specific mortgage insurance policy. Desjardins Insurance refers to Certas Home and Auto Insurance Company, underwriter of automobile and property insurance or Desjardins Financial Security Life Assurance Company, underwriter of life insurance and living benefits products. Desjardins, Desjardins Insurance and related trademarks are trademarks of the Fédération des caisses Desjardins du Québec, used under licence.

Nina Romano Insurance Agency Inc. Nina Romano CIP, Agent 1231 Harmony Rd N Oshawa ON L1K 2B1 905-433-1823 nina.romano@desjardins.com ninaromano.ca

the EDGE Summer 2022

Photos courtesy of Scott McGillivray

cover story

SCOTT MCGILLIVRAY Empowering Aspiring Investors to Succeed by Jennifer M. Williams

Scott McGillivray has achieved incredible success as a real estate investor and has imparted his knowledge to help scores of others. Keyspire — the company co-founded with his business partner — offers training and education to those yearning to make it big in real estate investing. While attending university in his early twenties, Scott purchased his first property, and today, some two decades later, he owns hundreds of properties across North America. Television viewers know Scott as a much-loved HGTV personality; since 2008, he has appeared in more than 400 episodes on shows that include Income Property, Scott’s House Call, Moving The McGillivrays, Buyer’s Bootcamp, Scott’s Vacation House Rules, and Buying In. Scott has also been nominated for and won numerous Canadian Screen Awards. On top of everything else, Scott is CEO of McGillivray Group. This company builds and elevates brands by focusing on talent development, marketing, and media production services.

The Edge, A Leader’s Magazine had the chance to sit down with Scott to hear his story and garner some great advice for today's real estate market.

At 21, you purchased and renovated your first rental property, which came about from a school project on income properties. What were some of the expectations and surprises you experienced while becoming a business owner? There are almost too many to count! But I think what stuck out for me was how many opportunities exist if you’re willing to look at what other people overlook, or if you’re eager to do the work that other people aren’t. There was nothing extraordinary about what I did: I used my student loan to put a down payment on a property, renovated it myself, and then rented it out to friends. It was a lot of hard work, but it wasn’t rocket science. I was just willing to take the chance when other people weren’t. That has stayed with me all these years.

What's something typical about a home repair that most people neglect but should prioritize? There are a couple of things. One is regular, consistent maintenance. It may not be as sexy as some of the big, exciting projects you can do, but it's undoubtedly the most important. I've heard of people having to do significant renovations because they ignored simple maintenance work, like filling cracks or fixing a leak. The other is taking the time — and money — to do something correctly the first time. Some people try to cut corners to save money, but in the end, it costs more. I'm thinking of properly waterproofing behind shower walls or putting an underlayment beneath your floor. Initially, these things add some money upfront, but they ensure that your renovation or repairs last longer. I think these principles can apply to all areas of business. Invest wisely and maintain things properly — they'll serve you a lot better in the long run!

Summer 2022 the EDGE

cover story

“I think these principles can apply to all areas of business. Invest wisely and maintain things properly — they'll serve you a lot better in the long run!”

As a recognized influencer and digital innovator, how do you manage to engage daily with your million-plus followers? Social media is such a great way to connect with people, and because of that, it’s an incredible business tool. My businesses would not exist in the same way without it. Take my digital series Scott’s House Call and Buying In, for example; without social media, those digital content series would never have come to fruition. Going through a television network is a very different animal. While it’s still the best way to reach specific audiences, going digital allowed us to do more things with our partners without the limitations of broadcast. Social media has also had a massive impact on my broadcast shows. I used to live-tweet each and every episode of my show in the old days. It allowed me to speak to the audience in real-time and get their honest feedback. Suggestions people made during those live tweets impacted what we did in future episodes. To this day, I still try to read every comment that comes through. If people take the time to write something, I feel like I owe them the time to read it.

A lot of your programs disseminate on TV and online. How has the internet helped grow your empire over the last few years? Was there any downside during the COVID-19 pandemic? Like everyone, I was nervous when COVID started. We had a lot of things on the go, and we were dealing with a massive unknown. But honestly, I’ve been fortunate. I can’t say there’s been no downside because COVID has been devastating for so many people, but I feel lucky that my businesses prospered. We launched a show about vacation properties right as the market started to boom. We couldn’t film shows for a while, so we

the EDGE Summer 2022

created a podcast. We couldn’t do live events, so we pivoted and made everything digital. Honestly, I doubled down during COVID and took a lot of risks. I’m happy to say that my business is better for it.

Considering the current volatility of the real estate market, what pre-planning advice would you give firsttime homebuyers or anyone looking to buy a property? “Volatility” is the perfect word for the current market — it’s constantly shifting and evolving! First and foremost, I’d recommend that anyone looking to buy in this market — whether a first-time homebuyer or a seasoned investor — work with an experienced real estate agent. Make sure you’re working with someone who knows that particular market well and has experience and expertise to help you make the most informed buying decision. Over the years, I’ve built an exclusive network of top-performing real estate agents who represent several different markets across Canada. I’d highly recommend any of my Trusted Agents to anyone looking to buy, sell, or invest — you can visit my website to find one in your area.

You work closely with lead designer Debra Salmoni on the Scott’s Vacation House Rules series. What lessons have you learnt about the strength of team playing and leadership? Teamwork makes the dream work! Seriously, I believe in surrounding myself with people who are the best at what they do. As much as I’d love to do everything myself, I don’t have the time or the expertise in all facets of my business. It’s the same reason why I started the Trusted Agent and Trusted Professionals programs — because everyone should work with experts to get the best results. As far as leadership goes, when you surround yourself with hardworking people who share the same vision as you, it’s easy.

cover story

What did you have to learn during TV production that proved a challenge when you began? What's one of the biggest challenges of performing on television? A learning curve, perhaps? As a renovator, television timelines were a bit of a shock to me. I was used to doing things that made sense for the renovation, but I quickly learned that everything had to make sense for the cameras. So, if I worked too fast, I might have to remove something so I could do it again for the cameras. Or, sometimes, the opposite was true, and they needed to capture something I hadn't done yet, so I had to readjust my strategy. Television timelines are incredibly tight. I'm used to it now, but I can see the shock in the eyes of any new contractor who comes to work on one of my shows. Despite some of the challenges, I took to TV production pretty fast. I didn't want to be the face in front of the camera. I wanted more control, and I saw great potential in the business of TV. So within a year, I started my own production company: McGillivray Entertainment Media. We've got some big shows in production right now — there's never a dull moment!

What are some of the essential characteristics of a great real estate agent? First, market knowledge: you always want to work with an agent with a wealth of real estate knowledge and expertise, but you especially want to work with someone who knows the area well. They’ll have insider intel to make or break your buying or selling experience. Second, customer service: choose an agent with a stellar reputation for putting their clients first. Third, marketing know-how: if you’re selling or leasing a property, your agent should have a strong marketing strategy to create demand and get your home sold (or rented) for top dollar. Finally, experience: An experienced agent has years of industry know-how. They’ll also have extensive networks they can tap into to help you find the perfect property or buyer. If you’re looking to buy, sell, or invest, be sure to use one of my McGillivray Trusted Agents! You can head to my website and select your applicable market to be matched with a Trusted Agent at ScottMcGillivray.com.

Whether buyer or seller, what are some realtor red flags that might indicate it's time to step away? Be wary of any agent that doesn't listen to your needs, tries to severely over- or under-price your home, works as a part-time agent, knows nothing about the area, is a poor negotiator, or behaves unprofessionally. Your real estate agent should be highly experienced and knowledgeable about the buying and selling process and have your best interests at heart. Working with the right real estate agent is essential, and I recommend interviewing a few agents before making your choice.

In real estate or not, how often do you think entrepreneurs should change their paradigms to achieve success or pursue their goals? Constantly. I’ve never been one for the “if it ain’t broke, don’t fix it" mentality. I’m constantly changing the way I do things to make them better, more efficient, more successful, more interesting — whatever the case may be. The root of my business is real

estate investing, but that doesn’t just mean buying and selling properties. I’ve turned it into tv shows, podcasts, and courses. I’ve recently launched a real estate investment fund focused on residential development projects in Ontario. I did this because, for the last 20 years, people have been asking me how they can invest like me or with me. Up until now, I didn’t have an answer. But now, with this fund, people can invest passively alongside my team and share in the same experience. It’s an exciting venture that has already exceeded my expectations.

How can someone learn more about your investment programs, courses, and workshops through your real estate investing education company, Keyspire? If you’re interested in learning more about real estate investing and networking with like-minded people, check out Keyspire. com. And if you’re interested in learning more about my real estate fund, visit ScottMcGillivrayRealEstateFund.com. But do it soon — we’ve almost reached our target capital raise goal, and we’ll be closing the fund to new investments soon!

Can you share any upcoming projects with the family and how they’re enjoying the powerhouse you built together? My family loves the cottages, including the powerhouse. But, of course, the girls’ favourite spot is the playhouse. It was a great adventure for our family working on those properties, and I love that my kids are enjoying the same type of cottage experience that I had growing up. As far as what’s next for us, you’ll have to wait and see! //

Summer 2022 the EDGE

Experience

Luxury

For business or pleasure, come see why we truly are Your Home Away From Home .™

Book directly at montecarloinns.com and save.

Pool available at Downtown Markham and Barrie

Your home away from home Locations throughout Southern Ontario 1-800-363-6400 | montecarloinns Summer 2022 the EDGE

- Advertisement -

business

TOP TRENDS IMPACTING THE REAL ESTATE MARKET by Peter Campbell

ith the average selling price of a home in the Toronto real estate market at over a million dollars, owning your dream home is quickly turning into a nightmare — and trends suggest that isn’t changing anytime soon. Approximately a year ago, economists predicted that 2022 would be an easier time for home buyers. A year later, little has changed. While economists certainly expected prices to keep rising in 2022, they pointed to 2021 as the probable peak of the housing market frenzy. The following trends mark the market’s environment and may help you successfully navigate its often-jagged geography.

Home is where the rates are: According to realtors, the dizzying real estate market sent many buyers throughout North America scrambling to take advantage of borrowing rates. In the U.S., many feel the housing market should finally return to normal in 2023. Prices, however, will likely remain permanently higher. It is expected that year-over-year home inflation will hit its pre-COVID average by early 2023, but prices will continue to skyrocket at a historic rate throughout 2022.

slow to some degree. Appreciation rates hit nearly 20 per cent in mid-2021, and the Federal National Mortgage Association expects a 7.9 per cent home appreciation rate for 2022. Other housing authorities also predict 2022’s appreciation rate to be slower than 2021’s. Home values may not increase as dramatically as they had before, but the more manageable pace could make homeownership more accessible to buyers with smaller budgets.

Skipping home inspections: Due to the current competitive

nature of the market, some prospective buyers are choosing to forego this invaluable option. While some selling agents have pre-listing inspections done, home inspectors are accountable to sellers, not to prospective buyers. If the inspector happens to have missed something, the new owners have little legal recourse.

Speaking of accessibility, large trading platforms are making real estate investments more accessible to the everyday investor. No longer the sole domain of investors with deep pockets, these platforms have begun to offer trade shares of individual real estate assets. Now, it will be much easier and less expensive to take the real estate plunge.

Climate issues: Devastating supply chain-altering floods, wildfires,

Increasing number of homeowners/Growing number of defaults:

hurricanes, tornadoes, and other weather events dominated much of 2021. It’s quite possible we’ll see more of the same — or worse — in 2022. As a result, once highly desirable beachfront properties or riverside dwellings have more buyer hesitancy attached to them than before. In some cases, even the ability to finance the purchase of these homes has been impacted. All these potential risks translate to a difficult sell for both buyers and lenders, and could drive down the prices of homes in some markets.

Potential slowing of home value appreciation: Throughout 2021,

homes appreciated at a rapid rate. This year, that’s expected to change, and the appreciation rates on homes are expected to

the EDGE Summer 2022

Commercial real estate investment on a level playing field:

Obviously, one does not necessarily equate one with the other; however, the need for stability, combined with lower interest rates, has boosted the desire to own a home. Though experts do not predict a repeat of the massive amount of foreclosures that happened during the Great Recession, the number of defaults and homes in foreclosure is expected to double from where it stood pre-pandemic.

The Great ‘Burbs Migration: Given the current interest for would-be

homeowners to find living spaces conducive to good mental and physical health, there has been an exodus of prospective home buyers to the more affordable, spacious suburbs. Although 55 per cent of the world’s population still resides in cities, the pivot

towards agile workspaces, coupled with the desire of millennials — who account for the majority (38 per cent) of the residential real estate buyers’ market — to buy or rent single-family residences, could cause developers to build more housing in the suburbs — particularly two-, three-, and four-bedroom apartments.

Indonesian Palm Oil is Sustainable

Ballooning rates: From ever-fluctuating (but

To learn more about Indonesian palm oil, visit: indonesiapalmoilfacts.org

steadily rising) interest rates to downright explosive ones, the Federal Reserve’s decision on the inflation rate may artificially suppress interest rates on real estate debt. That being said, rates are sure to rise and return to more historic levels.

Indonesia’s palm oil industry has undergone a significant transformation over the past decade. It has become a leader in all aspects of sustainability — environment, economic, and social — and is making a positive impact on Indonesia’s forests, exports, and people. Indonesian palm oil provides Canada with products that are healthy, safe, and environmentally friendly.

Affordability vs. demand: The pandemic

was certainly a blow to the average North American’s income. Not surprisingly, this created a housing shortage with home prices now even further out of reach. However, the pandemic also drove mortgage rates to record lows. The National Association of Home Builders estimates that, in the summer of 2021, the median price of all new and existing homes sold in the U.S. rose to $355,000 — up $35,000 from the third quarter of 2020. The ever-tightening grip of demand has not loosened, but less than 60 per cent of homes sold were affordable to families earning a typical income.

It’s still a seller’s market: Without a doubt,

the outlook for prospective homebuyers certainly may improve, but the real estate market (at least in 2022) remains a sellers’ market. Analysts from Realtor.com predict that the market will rebound from the lows it experienced last year, and inventory may grow by 0.3 per cent on average this year. Real estate agent Marilyn Emery suggests looking at homes that have been on the market for more than 21 days. “Many of these homes started off over-priced,” she says, “but have lowered their price.” Buyers think there must be something wrong with the home, so they don’t bother seeing them. With 30-year fixed mortgage rates expected to average 3.6 per cent in 2022 and 3.9 per cent in 2023, experts predict home sales to rise slightly (from 6.9 million in 2022 to 7 million in 2023). Home prices are expected to rise as well, although it’s unlikely the rise will be as drastic as what we’ve experienced in recent years. What goes up, doesn’t always come down — at least not fast enough for our liking. //

Text provided by Indonesian Palm Oil Plantation Fund Management Agency (BPDPKS)

Summer 2022 the EDGE

business

MOST POPULAR GLOBAL CITIES FOR REAL ESTATE INVESTMENTS by Rose Ho

he global real estate market has undergone great upheaval due to the pandemic, yet several cities have ridden the waves and shown themselves to be promising or stable investments, despite the choppy waters. Below are some of the top places for investment in Canada, the USA, and around the world, as anticipated by global pundits.

Top Cities for Investment Canada Vancouver, BC Toronto, ON Montreal, QC Calgary, AB

According to PwC Canada’s “Canadian real estate markets to watch in 2022,” the most auspicious cities were (predictably) Vancouver, Toronto, and Montreal; the report also indicated “renewed optimism” for Calgary. As the chart-topper, Vancouver’s capital strength is supported by intergenerational wealth, a low unemployment rate, and a healthy amount of market competition. Toronto (and the Greater Toronto Area) also has vital industrial and residential markets, although affordability and availability are still pressing issues. In Montreal, government incentives for “developing rental properties and affordable housing” — plus an expanding transit network — are welcoming gestures for investors. Calgary also shows promise as the economy diversifies, the population grows, and the housing market soars.

the EDGE Summer 2022

business

USA New York, NY San Francisco, CA Boise, ID Austin, TX

Despite Brexit, London still holds investor interest, and Berlin is a steady investment locale. Both markets remained relatively steady during the pandemic and are still among the top 10 cities in the world to invest in (as well as other European capitals like Paris, France), according to Halo Financial, a U.K.-based foreign exchange service. Returning to fDi’s 2021/2022 rankings, Mexico City and Bogotá placed first and second in "Latin American Cities of the Future." Mexico City was also included in the top "10 Major American Cities in the Economic Potential" category and consistently grows in innovation. A prime example of an infusion of interest in the metropolis was Netflix announcing it would move its headquarters from São Paulo, Brazil, to Mexico City in 2020.

Wider Considerations Beyond focusing on major cities, it’s a good idea to zoom out and see the bigger picture on an international scale. Entire national economies and their global interplay should be taken into consideration. Halo Financial noted the top five countries for each category below: Investors in all markets continue to clamour for properties in major states like New York and California. According to fDi Intelligence’s ranking of “Americas Cities of the Future 2021/2022,” New York City ranked at the top of the categories of “Economic Potential” and “Business Friendliness,” taking a lion’s share of 10 per cent of foreign direct investment projects within the entire country in 2021. Sunny Silicon Valley continues to draw steady interest from investors in software and IT sectors. However, in an article titled “The Best Markets for Real Estate Investment In 2022,” Forbes noted a shift in the residential market from purchasing to renting as unemployment soared, income shrank, and people fled urban areas during the pandemic. With this trend in mind, places with high home prices and low rent averages — such as Boise, Idaho — offer an encouraging yield for those looking to invest in apartment buildings. The Association for International Real Estate Investors (AFIRE) also found a marked interest in tertiary cities — specifically Austin, Texas — from U.S.-based and non-U.S.-based investors. Global London, UK Berlin, Germany Mexico City, Mexico Bogotá, Colombia

Greatest Potential Growth Countries with the highest potential return on investment include the United States, Brazil, China, Spain, and the United Kingdom. Stability of Country The United States, Germany, Canada, the United Kingdom, and Australia are anticipated to remain among the most stable markets in the world. Emerging Markets Brazil, China, India, Mexico, and Colombia are all burgeoning economies that are predicted to continue to grow in exciting ways (and worth investing in early).

Potential Negative Impacts According to AFIRE’s extensive annual survey — “2021 AFIRE International Investor Survey Mid-Year Pulse Report” — which gathered data from 76 executives across 12 countries, many concerns come into consideration when looking for reasons not to invest. The threat of local and global recessions was one; de-urbanization was another. The pandemic’s dampening effects on economies generally, and supply-chain shortages everywhere, were also major factors for construction and market demands. The movement towards work-from-home models also affected the need for office and retail space (although the market for residential and storage-use space grew in strength). More specific aspects of geopolitics — like Brexit (U.K.), overseas conflicts (China and America), civil unrest (Hong Kong and Latin America) — and the effects of climate change on geography everywhere impacted crucial investment decisions. In fact, climate change was one of the most pressing concerns for investors, with 80 per cent of those surveyed indicating “some” or “great” concern towards it and 83 per cent anticipating environmental risks affecting potential real estate investments. As with all investments, circumstances are always changing, and yields are speculative. // Summer 2022 the EDGE

business

REET U G UPTA Chairwoman and Ambassadress of The Gupta Group and Easton’s Group of Hotels C-Suite Hotelier and Philanthropist Reetu Gupta wears several hats professionally. She’s the president and co-chair of The Gupta Family Foundation, co-founder and chief strategy officer of Rogue Insight Capital, as well as the chairwoman and ambassadress of The Gupta Group and Easton’s Group of Hotels. Gupta says she was “born into hotels” and realized at a young age that it was where she wanted to be. Her inspiration was her father — renowned entrepreneur, Dr. Steve Gupta. She worked a variety of positions and rose through the ranks of her father’s company before stepping into her latest role. Photo courtesy of Reetu Gupta

by Marcus Medford Last year, you took on the role of make sure we’re not too heavily invested ambassadress and principal of in only one business. The Gupta Group, which focuses on When COVID-19 hit, we were in a better philanthropic work, mentorship, and position because tourism, hotels, and female empowerment. What are some hospitality as a whole took a gigantic hit. of the ways you achieve that, and why Thankfully, real estate was still doing well, and we had a couple of projects under is that important to you? Every year, we partner with various charities, and we have all the hotels engage in a friendly competition where they have to raise as much as they can for the campaign. People go all-out just to get donations, and it’s a really fun way to give back. When COVID-19 hit, that calling became very loud, and I thought, “I need to be doing more.” So, I launched the Kindness Project, which allows our companies to work together to spread kindness around the GTA and other cities where our hotels are located.

Can you tell me about how The Gupta Group has benefitted from diversification over the course of the pandemic? I founded The Gupta Group in 2012 — that’s when we started to diversify into condos. I let my dad know that we don’t need to get out of the hotel business, but we need to 20

the EDGE Summer 2022

team and said, “It looks like we’re going to lose all of our business from overseas, so right now, we have to only focus on domestic business and see whatever business we can get.” We pushed all our hotels to do that. Thankfully, we had quite a bit of business on the books that stayed on the books.

construction. The government allowed construction to continue, which saved a lot of jobs.

What are some predictions you have for the next five years in the real estate industry?

What are some of the challenges you and the Gupta Group have faced during the pandemic?

I think companies are going to start to offer hybrid models. For example, in our company, historically, we didn’t have the option to work from home. We had to figure out a way to make sure that everybody’s safe, and you have the option to work from home, and hotels are still running. I do think that, on the real estate side, you’re going to see a lot more homes being built in the suburbs. The demand is shifting from downtown, which is also a great thing.

As much as we were in a better position, we were not — in the sense that the majority of our business was now making zero. It would be difficult for me to make the decision that most hoteliers made: closing the doors, sending everybody home, and waiting for things to pick up again. I couldn’t do that to our team. I didn’t want our team members to be at home thinking, “I might not have a job to come back to when COVID-19 is over.” I wanted to make sure that our team members felt okay and knew that they might not be working full-time, but at least they know we’re here for the long run. In January, I felt that COVID-19 was going to impact the entire world. I gathered our

I also think that people are itching to travel. I think hospitality is going to take a huge jump, which will be amazing and a blessing after the couple of years that we’ve had. //

Income Protection Group is fully digital, utilizing technology to simplify the process of buying life insurance. Simpler, smarter, and more rewarding. Lowest life insurance rates in seconds. We think life insurance should be more about living, so we’ve designed our products to protect and create wealth while you’re alive.

Strategic Investing

Insurance Review

Flexible Premiums

Legacy Creation

Life Insurance Life Insurance gives your family a fighting chance at growing and maintaining wealth while leaving your family's legacy and dignity intact.

Investments/Savings Tax-Free Savings Account (TFSA)

Registered Retirement Savings Plan (RRSP)

Registered Education Savings Plan (RESP)

Registered Retirement Savings Plan (RRSP) Loans

1-877-603-3078 21 Summer 2022 the EDGE www.incomeprotectiongroup.ca

business

RYAN SERHANT

Founder and CEO, SERHANT. Real Estate and Reality TV Superstar Star of Million Dollar Listing New York and Sell It Like Serhant, Ryan Serhant exhibits true entrepreneurial DNA. He knew he had to make it in one of the world’s biggest economic and business hubs, New York City, despite the pressures of big city life. And not just get by, but thrive!

Serhant spoke on his struggles while building his career and how he manages everything. He also shared his perspective on personal branding in the real estate industry, and the innovative vision behind SERHANT. Photo courtesy of SERHANT. Studios

by Arslan Ahmed Tell us a little bit about your earlier struggles in your journey. Real estate is an incredibly local business, despite how global the buyer, the people base, and our marketing is. Real estate is bought and touched. I’m not from New York. That was the initial challenge. I would get lost. This is before everyone had an iPhone. I would have to have MapQuest directions printed out in my pocket. I also didn’t know anyone here. I tell every new real estate agent when they get into the business to look at your immediate sphere of influence, the network you could start working with right now. Is it people you went to school with, people from your last job, or just friends from the gym?

leveraging others. In Sell Like Serhant, the book and the course, one thing we teach is something we call FKD — Finder, Keeper, Doer — which is how an entrepreneur should structure their day. You’re finding business, keeping current business, and then you’re doing the work. I am a finder of business all day long. I have other people who do the keeping and the doing for me. I have a personal assistant, a systems assistant, and an email and communications assistant. I have three assistants who help me just live my life every day. I then have entire teams around me who can help me do everything. I mean, SERHANT. is now about 200 people, and it’s growing all the time.

You then have to take that [and] create content — either video, photo, or thought leadership articles for LinkedIn, or become a contributor to your local newspaper — to get your name out there in the world. Every success you have, tell everybody about it. As you start talking about yourself and putting yourself out into the world, that changes the world’s perception of you. That perception turns into your reputation. When people talk about you when you are not around, that reputation transcends into personal brand.

Can you share more about SERHANT.’s vision with a focus on original content creation, training and courses for real You are 100 per cent an entrepreneur. You You talk about personal brand devel- estate professionals, as well as media make your own hours; you decide to go studios? to work or not. I didn’t even know how opment in real estate as one of the to set expectations for myself. I was just qualifiers of success in the industry. Our business is a flywheel. We create thinking about making enough so I could What are the foundations of personal content all day, every day. That content helps acquire customers, who are cover my expenses. Every day was hard. branding, according to you? salespeople and people who need I quit the business every single day. I had clients yell at me, leave me on the streets. It was tough.

Personal branding is broken down into three sections. It is core identity, consistent content or messaging, and shouting it from the mountaintop. If you think about it, what branding really means is knowing implicitly, in your core, who you are. What is your personal brand?

Between penning books, running a full-time real estate business, media appearances on television, and managing social media accounts, how do you manage to not be overwhelmed? My brand is real estate and media. For I have a lot of help. One of the early secrets I learned about being an entrepreneur is

the EDGE Summer 2022

others, it might be real estate and family, or real estate and knowledge. Maybe they’re just really smart, and they really know data.

salespeople. Those salespeople train with us before becoming SERHANT. agents, or they work with our brokerage where we’re licensed. Then, people who need salespeople — buyers, sellers, developers, vendors — are connected to our agents. They have success, new reasons to create content, and ‘round and round’ we go. //

Commercial

Home

FINDING THE INSURANCE SUITED FOR YOUR NEEDS A uto

Travel

Elaine Chan has over 10 years of insurance and financial planning experience, and caringly works with clients to resolve their insurance needs and concerns. She has specialized in almost every facet of insurance, including commercial property, professional liability, auto & home, life, accident & sickness, health, and travel.

Elaine Chan

For more information, call Elaine Chan at

416-505-9433

e-mail: echan@chatin.ca Or visit

www.ecinsure.ca/general-insurance/ for a free quote Summer 2022 the EDGE

economics

CANADIAN REAL ESTATE MARKET PRE AND POST-PANDEMIC

by Rob Shapiro OVID-19 has adversely impacted the housing markets of most major Canadian cities. In Toronto, Montréal, and Vancouver, buyers and sellers have had to navigate volatile markets while dealing with obstacles that have further complicated every stage of buying or selling a property — from hosting open houses to securing an interest rate. The changes to the real estate market across Canada have been drastic. Many markets that historically

34%

Since the start of the pandemic, housing prices in Canada have increased overall, although housing markets in major Canadian cities have slightly cooled as many moved to the suburbs or to cottage country for more space. Some experts see it as the worst level of affordability in over 30 years.

64% The cost of owning a home in a Canadian city now takes up 64% of median household income

lagged behind were suddenly valuable, whereas other markets, like Toronto, rocketed from being expensive to becoming unattainable. When you also consider corresponding changes to the rental market and interest rates, buying in Canada looked very different from March 2020 and onward. Here is how the Canadian real estate market in major cities looked before and during the pandemic.

2019 — GENERAL

Part of the demographic shift in home buyers was due to older millennials entering their late 30s and early 40s. Zillow became available in Canada, giving buyers and sellers access to home data like never before, and Toronto’s short-term rental market was impacted by increased municipal regulation of Airbnb. Residential real estate transactions reached

486,800

6.2% $780,000 34%

increase from the fiveyear low experienced in 2018.

The average value of a home in Canada. of all residences in Vancouver are occupied by non-owners.

Ontario

25%

11% Québec

of all residences in Toronto are occupied by non-owners. The number reflects the real estate booms in Ontario and Québec.

the EDGE Summer 2022

economics

5% +

5.7%

3.1%

Vancouver: • Average home price was roughly $1,001,000, a 3.1% drop from the end of 2018. Toronto: The average home price was $883,520. • • The price increase in 2019 vs. 2018 was 5.7%.

vancouver $1,001,000

toronto $883,520

Montréal: The average price of a house in • 2019 was $360,900, up slightly from $330,900 in 2017. • 2019 marked the fifth annual increase of more than 5%.

montréal $360,900

2021 — GENERAL The year 2021 was a record one for the Canadian housing market. 667,000 transactions occurred in 2021, which was an increase of 21% or 114,000 units. As of 2022, Toronto is ahead of Vancouver as the most expensive real estate market in Canada.

VANCOUVER 43,999

42% 73%

toronto vancouver Toronto Vancouver Montréal

25% 21%

$1,576,800

10.7%

$1,095,475

Home sales were up by over 42% compared to 2020 and over 73% compared to 2019.

$1,910,200

The cost of a detached house.

January 2021 december 2021

MONTRÉAL

TORONTO 121,712

homes sold, breaking the record set in 2015.

28%

MLS reported a record 121,712 sales, a 28% increase from 2020.

17%

The average selling price was at an all-time high of $1,095,475, a 17% increase from 2020.

$669,500

$1,101,500

The average price by the end of the year. The median price for a single-family detached home.

15.3%

price increase.

SOURCES The BREL Team, “The Toronto Real Estate Market 2019 Year in Review.” The Canadian Magazine of Immigration, “Average House Price in Montreal,” January 18, 2022. Canadian Real Estate Association (CREA), “Canadian housing market: Looking back on 2019 and the challenges ahead in 2020,” January 16, 2020. CTV News, “Toronto beats Vancouver as most expensive real estate market in Canada, report suggest,” February 8, 2022. RBC Economics, “Monthly Housing Market Update,” January 17, 2021. Real Estate Board of Greater Vancouver, “Home sales decline below long-term averages in 2019 despite increased demand to end the year,” January 3, 2020. Real Estate Board of Greater Vancouver, “Metro Vancouver home sales set a record in 2021,” January 5, 2022. Toronto Star, “New data shows Toronto home prices soared by almost 25% in 2021,” January 6, 2022. Vancouver Sun, “Douglas Todd: How disastrous has the COVID-19 pandemic been for Canadian housing?” December 29, 2021. WOWA, “Canadian Housing Market News,” January 17, 2022.

Summer 2022 the EDGE

economics

THE ROLE OF REAL ESTATE IN CANADA’S ECONOMIC DEVELOPMENT by Nick Dauk

eal estate — it’s a perennially relevant topic that impacts every Canadian’s lifestyle. From the development of commercial buildings to the valuation of residential homes, all positive and negative trends in the real estate sector create a ripple effect that influences other industries across the country. This is no shocking revelation: The National Post reported that residential real estate activity itself contributes to over 10 per cent of Canada’s gross domestic product (GDP). The Financial Post also cited that such economic output via housing has increased from 12 per cent to 14 per cent between 2008 and 2021. With a literal wealth of activity occurring within the sector over the last 20 years — despite unforeseen obstacles, including global economic crises — it’s clear that real estate has been an important factor in Canada’s financial growth. However, as we move further into the millennium and farther away from the coronavirus pandemic, it’s vital we understand the role real estate will play in the future of Canada’s economic development.

Real Estate’s Role in Economic Development Since 2000 The memory of Y2K may seem long ago, but changes over the last 22 years in Canada’s real estate (CRE) history are still present today. The turn of the millennium ushered in two very different landscapes for residential and commercial real estate development. The early years of the 1980s and 1990s were met with recessions, negatively impacting both CRE and residential markets. The first decade of the 2000s nearly ended without a recession, until the unfortunate economic crisis between 2008 and 2009 began.

Apartment and condominium-style construction rose in the 2000s by 26 per cent between 2000 and 2014. Immigration spurred population growth and a desire to live in metropolitan areas. According to research gathered and interpreted by Canadian business history professor Joe Martin of University of Toronto’s Rotman School of Management, the commercial real estate crisis of the 1990s hit the CRE industry hard. Thankfully, many markets clung to stability throughout the decade, even weathering the 2008 financial crisis.

Residential real estate was the first to bounce back, according to Statistics Canada.

Apartment Condominium-style

Their data shows that construction intentions for single- and multi-family dwellings has finally recovered to pre-1980s levels.

the EDGE Summer 2022

Perhaps the most significant fact of the late-2000s calamity was that the Canadian real estate bubble did not burst in tandem with the housing bubble in the United States. The Federal Reserve Bank of Cleveland identified relaxed lending standards and low interest rates as factors influencing both the boom and subsequent bust in the United States. Simply charting the delinquency rates from 1998 to 2009 in both

economics

15.5%

Reeling from the ups and downs of the pandemic’s first year, RBC’s December 2020 report showed that owning a home throughout Canada was generally affordable, even when the historic housing market rally contributed to lower affordability rates in cities like Vancouver and Toronto. December 2021’s RBC report cited that rising demand for housing increased mortgage rates, prices, and overall costs of homeownership.

G D P 40.2 billion

shows the number exponentially rising in the U.S. during the bust, while it trended slightly higher in Canada. By October 2019, the Canadian Real Estate Association (CREA) reported that home sales in Canada were up 15.5 per cent year over year, rising above the six-year low from the previous February. Recorded sales were only eight per cent below the highest records in 2016 and 2017. Residential real estate greatly aided in Canada’s overall economic output in the second half of 2019, according to Statistics Canada. After a record growth in 2017 — which supported $40.2 billion in GDP — the country’s CRE sector was trending upwards prior to the pandemic.

The Impact of COVID-19 on Real Estate Since 2020

Despite the challenges of navigating the pandemic, Canada’s CRE sector remained hopeful. Evolution is necessary. Social distancing and remote working will force CRE owners to reimagine existing and new spaces. However, the BDC reports that demand for industrial space and the necessity of physical office space is not dying down. It will be interesting to see how 2022’s GDP is influenced by both commercial and residential real estate, particularly as financial cores in major cities have not yet returned to pre-pandemic levels.

If there’s one event that will continue to define Canada’s real estate trends for years to come, it’s the coronavirus pandemic. Virtually no industry was left unchanged, regardless of any reliance on domestic or foreign support. The December 2019 Housing Trends and Affordability report, published by RBC Economics, cited an increased affordability in home ownership, but it also foreshadowed issues potentially halting upward trends.

Future of Canada’s Real Estate & Economic Development What does the future of Canada’s economy look like in regard to real estate? More importantly, what was the country’s future course pre-pandemic, and how accurately can we predict the post-pandemic development? Speculating on the 2019 data presented above, it’s not out of the question to assume that the housing market may have dipped in early 2020 had the pandemic not happened. The potential for recession or financial crisis was high as each previous decade saw periods of economic turmoil. Perhaps, in a way, the pandemic may have aided in the avoidance of a substantial real estate downturn — at least in the immediate future. Though affordability is still questionable, the pandemic has impacted both CRE and residential properties throughout the country in a relatively equal manner. As the post-pandemic future looks brighter, look forward to seeing positive developments in Canada’s economic outlook. Canadian real estate provided more than 10 per cent of GDP growth in 2021, despite a slow start earlier in the year. We shouldn’t be surprised to see real estate deliver a significant contribution to Canada’s GDP in 2022 and in the following years, provided that financial institutions responsibly keep rates and lending standards within a favourable range. //

Summer 2022 the EDGE

licenses, conversions, foreign conversions and military to civilian training.

the EDGE Summer 2022

crop spraying, evasive species ratiﬁcation, survey work, photography and ﬁlming.

fly & dine restaurant flights, sight seeing tours of CN Tower, Niagara Falls, Grand Bend.

economics

JASMINE LEE

Real Estate Broker & Team Leader Educating Clients and Families by Marcus Medford

asmine Lee always knew she wanted to own property, but when she purchased her first house, the experience with her realtor left her dissatisfied. "She was so cold and unavailable. My concerns were not her concerns.” Lee didn’t want others to have to go through the same experience so, two years later, she got her real estate license and vowed not to be like that agent.

Now, Lee is an award-winning real estate broker at eXp Realty. She has more than 15 years of experience and has garnered millions of dollars in property sales. She’s also the team leader of the Jasmine Lee Team, which is built for “strong, like-minded women” with shared passions — but the CEO is Lee’s seven-year-old son, Cartier. Lee also supports several local causes in the Durham region and launched a community for empowering and supporting women in real estate called “RealtHer,” as well as “SLC,” a female-led entrepreneurial club that provides tips and advice to female business owners.

Photo courtesy of Jasmine Lee

What are some trends or shifts you’ve noticed in the 17plus years you’ve been in real estate? Originally, when I was meeting with couples, men especially would lead the conversation. They would talk about their net worth and what they want, and then when we were looking at properties, the woman would be like, “Oh, I like this one over the other one,” and that was it. But now, in the last five to 15 years, there has been a major shift where women are leading the conversation about the numbers, the finances in the family, and taking more of the leadership role and making decisions on home ownership, either as a family unit or even by themselves.

When individuals or families approach you about buying or selling real estate, what are some of their biggest financial concerns? First, I would say, is overpaying for property. Two is location and where to move because, with the pandemic, it’s limitless. We’ve helped clients sell, and they’ve moved to the cottage or the Caribbean full-time. [There’s] a lot of virtual work-from-home, so options are open. In terms of overpaying, we educate our clients. On our website, we have sold prices so that they can see the trends. When our clients look at numbers, they understand that what their properties are

listed for is not necessarily what they're selling for because they have access to sold prices. They know they have an indication of the market and what the value of their home is as we update them quarterly or yearly, depending on what their needs are.

What’s the best piece of real estate advice you’ve ever received? I'm seeing a lot of people buying and flipping. I'm more of the buying and holding type, and I'm a landlady. It does come with this different type of stress, but you get the appreciation of the property, and you get an income and return on investment that you're not going to get from just buying and flipping and selling. You get taxed on that income right away if it's not your principal residence. I get the appreciation, and then I also get income monthly from my rental properties. My son comes with me to our rental properties. He mows the lawn. It's his property at the end of the day. He meets the tenants, and they love him. My tenant’s kids and he play while we're doing a walkthrough or whatever. I get my son involved, and you should get your kids involved in your real estate portfolio as early as you can because, at the end of the day, it’s for them. Building generational wealth — it's so important to show them that it's not just for you. It’s for your kids. The sacrifices we're making to buy real estate, it's generational. //

Summer 2022 the EDGE

economics

MING LIM

Principal/Fund Manager, Black Innovation Capital Reaching Goals with Real Estate

by Stephanie Hawkins

rom his background in finance to his 20 years of investing in real estate, Ming Lim’s work with Volition Properties allows him to offer insights to those looking to break into the investment property market. It also appeals to well-established investors interested in expanding their portfolios.

Lim spoke about leadership in real estate while sharing his expertise on the market and value of investment properties.

Photo courtesy of Ming Lim

As part of an investment advisory and real estate company also offering design and renovation services, can you explain what you help your clients achieve?

properties or to look at very niche areas. It’s important to take a bit of a step back and ask, “Why am I even doing this?” or, “What is my life going to look like in 10 years?”

I think one of the differences between what we do and what a standard real estate brokerage does is that we try to help clients reach their financial goals with real estate as that tool. Clients might come in and ask about buying 30 houses, but once we dig deeper, it’s very rare that somebody's true ambition is to own that number of properties. There is usually a reason why they are looking to do this.

By really beginning with the end in mind, we can then try to figure out what that path might be. For example, if a client is looking to run an active business and likes the idea of working with students, looking at student rentals might be one area [for them to invest in]. If a client's goal is to be on the beach, collecting passive income is the best option. They’d better have renters who are very low-maintenance, then work backwards from there. Instead of trying to find the perfect property and then having your goals fit around that property, it’s important to consider how demographics impact what you want.

Maybe they want financial freedom; maybe they're looking to have a way of being able to protect their wealth; or they have generational considerations. We try to get to the root of that to understand what drives them and then develop a strategy that involves real estate investing to help them achieve those goals. We have a lot of these services, simply to get somebody from the planning stages to the end where a tenant is renting out the property, because there are so many things in between. We don't do everything ourselves; we partner up with a lot of other folks. The idea behind it is to guide somebody through the journey, and I think it's needed in this space.

What are some of the key factors that a brand-new investor should consider when looking at investment properties? When people are starting their real estate investment journey, there's often a tendency to become very focused on single

the EDGE Summer 2022

What would be your advice for someone who wishes to be a leader in the real estate investment industry? Focusing on a specific niche and being of service to your clients are important. It’s really about becoming an expert in your area. Do you have the passion, drive, and knowledge to be successful? With leadership in the real estate investing space, it’s very important that you find and hire a good team. You can’t be an expert in absolutely everything, but you can hire members of your team — marketing, lawyers, accountants — who have experience and are established investors themselves. As a leader, developing relationships with your clients, your team, and specialists will ensure that you operate at the next level, provide you with a new perspective, and allow you to continue to develop. //

www.jnbank.com

Lower 36 Queen East Street, Goodison Building Brampton , ON , Canada, L6V 1A2 Spring 2022

the EDGE

start-up

HOW TO HELP MILLENNIALS (AND GEN Z) GET IN ON REAL ESTATE

by Jericho Tadeo hat was once arguably a rite of passage into adulthood — and, indeed, a completely achievable milestone — has unfortunately become a fantasy. Getting in on real estate today is proving to be a difficult task for working adults of any generation, but especially so for millennials and Gen-Zers. The average price of a home in Toronto and Vancouver sits roughly at $1.2 million, having nearly tripled since the 1970s. According to the 2016 Statistics Canada census, Canada’s homeownership rate has steadily increased from 60.3 per cent in 1971 to 68.4 per cent in 2006 before reaching a high of 69 per cent in 2011! That same census marked 2016 as the first year in almost 50 years where homeownership actually decreased, sliding down 1.2 per cent to a total of 67.8 per cent. The data revealed that middle-aged Canadians (40 to 59 years old) were 1.4 times more likely to have a mortgage than older millennials between the ages of 30 and 39; they were also five times more likely to do so than younger millennials and GenZers aged 20 to 29.

Prior to the start of the pandemic, Canada’s homeownership rate stood at a solid 68.6 per cent. Homeownership — or perhaps, more correctly, the lack of opportunity for homeownership — has long been a salient topic for millennials since the oldest members of the generation joined the workforce. However, it’s a particularly pressing issue now as millennials not only represent the largest generational group in Canada (at nearly 30 per cent) but also outnumber Gen-Xers and Boomers in the workforce. Yet, as of 2021, a staggeringly low 12.9 per cent of millennials are actually homeowners, compared to Gen-Xers’ 68.9 per cent.

The Millennial Reluctance What’s most important to note when trying to unearth the reason why the majority of millennials aren’t yet buying homes is that there isn’t just one reason. Rather, there are multiple, interconnected reasons. Affordability is certainly an issue at the forefront, but there are many factors that contribute to the lack of affordability. A higher cost of education, which, in most cases, means greater student debt is one reason. An exponentially higher cost of living now than generations before and the disparity between wages also affect homeownership. Tighter lending criteria and limited housing supply are other factors. In the mid-1970s, when Gen-Xers first entered the workforce, the average hourly wage was just over $24 (adjusted for inflation). Today, the average hourly pay for millennials is just under $28. It may

the EDGE Summer 2022

seem like a slight improvement, but when one considers how the average cost of a home 50 years ago was about $160,000 (adjusted for inflation, again) compared to a record-high average of $720,000 now — a four-dollar increase per hour clearly isn’t enough. Aside from financial changes, there’s also been a cultural shift. Indeed, most millennials have pivoted away from tradition, opting to commit themselves to establishing their careers and achieving a certain degree of self-fulfillment before settling down with

a partner and starting a family. Before, the family unit was arguably the main goal for a working individual. As such, many GenXers started their families at young ages, and thus saw an immediate need to buy homes. For millennials, however, between an economic recession and the arrival of a digital age, they either couldn’t afford to raise a family — and so denounced the idea altogether — or decided to put their career goals first and foremost.

Possible Solutions This isn’t to say that millennials and GenZers do not want to be homeowners. On the contrary, homeownership would, for many, effectively be a marker of financial and emotional stability, which — in a post-9/11, socially divided, politically restless, COVID-stricken, environmentally devastated, and egregiously expensive world — has otherwise eluded them.

Data has shown that more millennials are trading city-living for the suburbs. Urban city centres are proving to be overly crowded and expensive places to live in. With millennials — especially older ones — now looking ahead and making informed decisions about where they can afford to settle down, start a family, and support themselves, many look to migrate away from large cities. The Gen-X dream of a cozy house with kids and a dog running around the backyard rings true for millennials because for them, that’s precisely what they grew up with. What needs to be done, then, is a systemic evaluation of the issue. Understanding why millennials can’t or aren’t buying real estate can provide possible solutions. For example, paying young workers a living wage, implementing student debt forgiveness, and creating down payment assistance programs can help. Constructing new housing units specifically for first-time and low-income buyers and limiting investor purchases on single-family homes can also allow millennials and Gen-Zers to take their first steps in homeownership in a way that doesn’t place them in financial peril. At the very least, what must be expunged from the minds of the more conservative Gen-Xers is the idea that millennials and Gen-Zers are lazy, entitled, and want everything handed to them. The truth is these generations of workers, changemakers, and citizens have proven to be the most socially conscious demographic as they fight for equitable and actionable change. Where some Gen-Xers might see the lack of millennial homeownership as the symptom of a self-interested and gadget-obsessed generation, millennials see an injustice. In that injustice, they see an opportunity — indeed, a mission — for systemic change. Systemic change and assistance from policy-makers might very well be the only ways they can get in on real estate.

RAHIM MOHAMMADI Mortgage Broker M12001193 Managing Partner Licence# M15000307 | Fisco# K-137068

Cell: 647.389.5955

For millennials and Gen-Zers, it’s more than just being able to own a home; breaking down the walls to homeownership in the present means that it might be easier for generations that follow to do the same. //

3601 Highway #7 E. Suite 210 Markham, ON L3R 0M3 P: 905.305.8771 F: 905.305.8122 E: ramo200055@yahoo.ca

Summer 2022 the EDGE

INDONESIAN IRON AND STEEL PRODUCTS ARE SUITABLE FOR CANADIAN CLIMATES

the EDGE Summer 2022

Summer 2022 the EDGE

start-up

ANSHUL RUPARELL CEO, Properly Inc.

Simpliﬁed Home Buying and Selling by Tashon Daley In a world where technological advancements are pervasive in many businesses, it’s shocking that the real estate industry still lags behind. Navigating away from this sea of complex and unchanging strategies, Anshul Ruparell’s Properly Inc. stands out, championing technology as a solution to making waves. An example of what the future of real estate can bring us, Properly promotes innovative ways to guide homebuyers to their future havens without the typical stress and confusion that comes with the process. We sat with Ruparell to learn more about his real estate phenomenon that has even reeled in the hosts of Property Brothers, Drew and Jonathan Scott. Photo courtesy of Anshul Ruparell

What inspired you to launch Properly Inc.? I had a very personal connection to the industry and discovered a problem that nobody else was really solving — buying or selling a home is one of the most significant milestones in your life. Yet, the process remains stressful, confusing, and filled with friction. Things have been done the same way for decades, and there seems to be a really compelling opportunity to modernize and redesign the real estate process in a way that actually works for Canadians. So, I moved back to Toronto from New York and partnered with my co-founders Craig [Dunk] and Sheldon [McCormick], and we set out to create a more customer-centric real estate industry.

What does your company do and how is it changing the real estate market? You can use our intuitive and free online tools to search for a home or track your home value, like [how] you would track the value of your stock portfolio. Once you're ready to buy and sell, we'll connect you with a team of experts — including top-rated real estate agents — to help you manage the purchase and sale. With Properly, you aren't just working with one person who's doing everything. You have access to a team of specialists across all aspects of the buying and selling process, from home valuations to touring, negotiations, staging, and marketing, all at your disposal. You can also leverage our innovative products like a product called Sale Assurance that lets you unlock your home equity before you've actually sold. You can buy, move, and then sell. Those are the types of services clients can't access anywhere else.

the EDGE Summer 2022

What are some of the challenges you’ve overcome in starting your own company? I think building a company requires pretty thick skin. Every day is filled with a mix of euphoria and existential dread. I think that when you're working to transform an industry, it means you're upending the status quo. Today, everybody thinks that what Properly is doing is so obvious and makes total sense, but when we were starting out, most people doubted us. We heard a lot more nos than yeses in the early days, so it takes quite a bit of perseverance and perhaps a bit of naïveté to actually break through that.

What would you say are your greatest accomplishments as a leader? It's incredibly rewarding to see what was once this seedling of an idea have an impact on the lives of real people, of real Canadians, at scale. It's really exciting and rewarding, and [it] feels like a big accomplishment. But when I reflect back on the last four years of building Properly, to be honest, most of the things I'm proud of involve our team and the people I have a chance to work with. Investing in and building a resilient and intentional culture has paid off quite meaningfully as we've scaled. It's been amazing to see what can be built with people who have a similar set of values when they come together. Growing a team of smart, passionate, and motivated people that I learn from every single day is really what gets me up in the morning. //

start-up

RICHARD ROBBINS CEO, Richard Robbins International Results-Oriented Coaching for Realtors

by Dave Gordon If it wasn’t for a squash game and a chance encounter more than 25 years ago, Richard Robbins might never have created what many regard as the country’s preeminent coaching centre for real estate agents. Prior to this serendipitous meeting, Robbins had been working with his father at three automobile service stations in Peterborough, Ontario. There was little inkling he’d be shifting career gears in a brief moment. At that life-changing game, he was introduced to the manager of a local Century 21 office. It was then and there where they had a 90-minute conversation about real estate that captured Robbins’ imagination — enough for him to agree to join the office’s team and pursue his license. He continued in real estate until he was 27 and sold the company to ReMax in 1996. Two years later, he ventured out on his own and opened Richard Robbins International, which is known today as one of — if not the — premier realtor coaching companies in North America. “I spent a lot of time coaching my people. We ended up having the highest production per agent of any company in the area. As crazy as it sounds, that’s the spark that ignited Richard Robbins International,” he said. The team now includes about 20 coaches who have passed a rigorous process of vetting and training. "One-in-thirty requests make the cut," he adds, "and never under six months." Some coaches have been with the Markhambased company for two decades. "A mixed blessing," Robbins said, "is that there are a lot more requests for coaches than demand can handle." Since launching the company, he has spoken around the world to more than a quarter million people at live events where attendees learn best practices such as goal setting, lead generation, and networking tips. More than 5,000 people have graduated from his courses thus far. In a nutshell, he taps into so much that is missing from the education of realtors. “A lot of people get a real estate license and don’t realize they actually have to be a businessperson first,” Robbins laments. The challenge he sees is that agents don’t necessarily learn about selling, time management, listing presentation, working with buyers, conversion, and other skills. “In the first five years, nearly three-quarters of realtors are out of business,” he adds.

Photo courtesy of Richard Robbins

“That’s a pretty high failure rate in an industry where the opportunities are massive.” And so, one of the most pressing questions for realtors will always be: “How do you get yourself into a position where the client will choose you?” One of the many ways of achieving that is a phrase coined by Robbins: “deliver the unexpected.” In fact, he wrote a book based on the idea in 2012, called Deliver the Unexpected: and Six Other New Truths for Business Success. In this regard, sometimes it’s the small things that make a big difference — such as the realtor remembering the client’s sale date and showing appreciation to them. “Can you imagine that every year, on the anniversary of the day they closed on their home, they get a gift basket? That is worth its weight in gold,” he said. “That’s just one way to show people you care. To recognize these milestones, be kind to them. It leads to more business than you can ever imagine.” These are among some of the relationship-building techniques he teaches and a means by which to stand out in a crowded field. After a quarter-century of coaching, Richard Robbins International is showing no signs of slowing down, and with a real estate market as hot as it has ever been, it’s easy to see why so many agents are flocking to find the most innovative ways to up their game. //

Summer 2022 the EDGE

the EDGE Summer 2022

winners' circle

SUSAN SUN

Realtor, Right At Home Realty Inc. How To Buy Your Dream Home by Stephanie Hawkins

S Susan Sun works with Right At Home Realty Inc., helping everyone from renters and first-time home buyers to those selling or finally buying their dream home. In the red-hot real estate market, it’s important to learn and get insights from the experts. Sun shared her advice on market trends, tips for buyers and sellers, and demystified misconceptions about real estate. Photo courtesy of Susan Sun

The real estate market continues to boom in many areas, including Toronto and the GTA. What advice do you have for those looking to break into the market and buy their first property? The market continues to be insanely hot in Toronto and the areas around it. It's really tough being a first-time home buyer, so it’s helpful to take advantage of every incentive that’s offered, such as using a portion of your RRSP tax-free towards your mortgage. Also, the government offers a land transfer tax rebate, which can help with costs. By talking to a mortgage broker or realtor, you will be able to obtain more information on other [available incentives]. It’s very important to get pre-qualified and shop around for mortgages, just like buying a car. Mortgage rates (through big banks or other lenders) can vary no matter where you go, and even a difference of half a per cent can have a significant financial impact. When buying their first home, many people want the “dream home.” But in this market, you have to be realistic and realize what you can afford financially and what's feasible. Start small and build equity. That might mean buying a small condo a little bit further away versus buying your dream home immediately. Knowing all of your costs is essential. Closing costs can add up. Land transfer tax, lawyer’s fees, insurance — all of these things should be taken into consideration. Lastly, do your homework. Enlisting the help of a realtor can help guide you through this process and offer essential insights.

What are some of the biggest misconceptions that customers have about investing in real estate? People often think that a huge amount of capital is needed to invest in real estate. It's true in a sense, but you can get creative — investing with a business partner, a friend, or family member means you can be a co-owner of a property. There are also misconceptions [about needing] to be experienced to invest in real estate, but that’s not necessarily true. You can team up with someone who has experience to assist you, whether that be a realtor or someone else who's done it in the past. In addition, people think that having an investment property is passive income. The word passive, I think, is misused here, especially when it comes to rental properties; it's definitely a hands-on project. A mistreated property can quickly become a huge headache and a money pit. It’s passive in the sense that, yes, your property is earning you income — but you still have to put work into it. Sometimes, people think you need a primary residence before you buy an investment property. That's actually not true. Many people purchase a property as an investment and they continue to rent. That's how I started getting into the market, by purchasing a small, one-bedroom condo in downtown Toronto and holding on to it for a few years, allowing it to increase in value and build equity, which helped my husband and me purchase our forever home. //

Summer 2022 the EDGE

winners' circle

RICK DHILLON Real Estate Coach and Realtor

Success Through Systems and Habits by Aun Abbott

Rick Dhillon went from property accounting to the lucrative world of real estate in 2005. Now, he is a successful real estate coach, helping other realtors achieve financial freedom with his online masterclasses and courses. He shared his unique advice from personal experiences selling properties and training entrepreneurs. Photo courtesy of Rick Dhillon

Is there a roadmap that you endorse for other realtors to follow to achieve financial freedom? The first thing that I would advise is to actually learn real estate. I’ve been selling real estate for 17 years. I’ve been coaching real estate agents [and what I’ve seen is] too many real estate agents don’t actually learn real estate. If you ask them what the interest rate today is, they wouldn’t know. You’re an entrepreneur, more than a professional. An entrepreneur’s job, when they open up a business, is to learn the business. These are things that we have to learn on our own, so the real estate agents themselves have to take it upon themselves to really get training and coaching. The other part of that roadmap is really to give a predictable and repeatable business. Too many agents are fluking their business. Maybe they just went to their aunt’s birthday party, and the aunt wants to sell her house. Or they’re having wine or coffee with the best friend and the spouse, and all of a sudden, they say, “Hey, we want to sell this house and buy a bigger house.” And that happens a couple of times, [but] they don’t have a system to make that repeatable the following year. It’s a fluke. The difference between successful agents and agents that are struggling are systems and habits. They have the daily habits and discipline to work those systems. Their business becomes repeatable and predictable. This is why really good agents can have the same success year after year after year.

What does your idea of success look like? My personal idea of success is a balanced approach. I really think that the biggest commodity we have is time. I thought I wanted

the EDGE Summer 2022

financial freedom, but I really wanted time freedom. I would say my idea of success is a little bit of wealth, a lot of health, and loving relationships in your life. One without the other is not good enough. And when you reach those three pinnacles, I would say, you add a fourth, which is giving back. That would be a successful individual to me.

What is one thing you wish you had done differently when starting out? I think I should have gotten coaching and mentoring earlier in my career. I think surrounding yourself with the right people is key. I have a phrase that I have in my brain constantly, and that phrase is just “get into the right room.” Because when you’re in the right room, around the right people, you are already going to be elevated.

What other advice do you have for new realtors? My advice to younger realtors would be, right from the bat, have a referral marketing program, because it’s your book of business that will give you the highest ROI. What I mean by that is if you get business from a referral base, like your past client or somebody in your sphere of influence, that ROI is huge compared to advertising. So, let’s say I make a $20,000 commission and you referred that to me. Besides buying you a really nice gift or taking you out to dinner, my return on that investment is pretty good. Whereas if I get somebody from a billboard — I have to pay $10,000 a month or whatever it is for that billboard — so even though I made that $20,000 commission check, I’m really keeping half. So, take care of the people that have already done business with you. //

winners' circle

LAURA SCARLETT MARTIN COO, Matrix Mortgage Global

Top 100 Global Finance Inﬂuencer by Jamie Theodore

Leading the Matrix Mortgage Global (MMG) as its chief operating officer, Laura Scarlett Martin brings to her clients over 14 years of brokering experience and a handson approach to her work. Whether it’s providing intentional and present training to her team of on-boarding agents at MMG or working closely with her clients to elevate their understanding of their finances, Martin’s ethos is authenticity, transparency, and empowerment. More than just her brokering work, Martin is also an industry thought-leader, having written dozens of articles for acclaimed publications like The Globe and Mail and Storeys. When The Edge, A Leader’s Magazine sat down with her, she was in the middle of preparing for a business trip to Australia, during which she was slated to give her first-ever keynote speech to the Finance Brokers Association of Australia. Photo courtesy of Laura Scarlett Martin

Matrix Mortgage Global has grown exponentially over the years. Where did your entrepreneurial journey start, and what were some of the biggest roadblocks in your journey? I started in the mortgage industry with the CEO of MMG, Shawn Allen, when I was 20, and then I opened my own brokerage at 24. Entrepreneurship is great for when you have so many different skills and things you want to pursue because you have to market [yourself]; you have to learn and master your craft and your product; you have to manage sales and relationships; and you have to learn time management and invest in yourself. It’s constant problem-solving and troubleshooting, so it really appealed to my penchant for wanting to do different things on different days; in a sense, go where the wind takes me. Then, I had a moment of unshakable cognitive dissonance when I thought, “This is not giving me any meaning or joy.” I ended up enrolling in the University of Toronto as a mature student. I studied Cognitive Science, Psychology, and Buddhist Psychology. After completing my degree, I circled back to Shawn. I wrote my own job description and said, “Can I be your Chief Operating Officer? This is what I propose to do for you.”

You describe yourself as a “Top 100 Global Finance Influencer” on social media — what does that mean to you? I was given that title by Mortgage Professionals Canada [the national association representing Canada’s mortgage industry]. I was given that title because I got into the finance world talking about gender inequality. And it sort of came from this space where I had a following of 30,000 people, and I was still up-andcoming [in the industry], playing by the rules, not saying anything overly controversial — until I just couldn’t anymore. There were too many cracks, and nothing was changing. I basically did this video [on social media] and made an appeal to say [that] we’re at less than 10 per cent in female leadership in these financial institutions, and we’re less than four per cent in people of colour. Women make up 52 per cent of the financial services industry, but they show up less than 12 per cent of the time in publications. So, I did the video, and I did it very candidly.

What would be the best advice you’d give to business owners, especially BIPOC women entrepreneurs? Be yourself. Authenticity means sticking to your values. Stay true to your vision. //

Summer 2022 the EDGE

winners' circle

DEBBY DOKTORCZYK AND PATRICE GROLEAU Licence Partners, Engel & Völkers Montréal Luxury Real Estate Power Couple by Hermione Ruan

Debby Doktorczyk and Patrice Groleau, the real estate power duo, had successfully run McGill Real Estate when in 2015 they attained the rights to run the globally recognized European luxury real estate brand Engel & Völkers’ Montréal office. They achieved phenomenal success: in four years, they were recognized as the top Engel & Völkers agency in the world for three years in a row. Groleau shared the couple’s motivation to be in real estate, their business and educational journey, how they manage it together, and their idea of non-monetary success. Photo courtesy of Debby Doktorczyk and Patrice Groleau

Was your path into real estate straightforward or were there any detours? I was working in finance and Debby was in design. We got the bug when we started doing real estate flips. At that time, there weren’t any real estate brokers specializing in new construction. We quickly became successful by making several record sales of our own projects and those by small developers who trusted us. Eventually, a major developer entrusted us with their projects. Our agency was born. With Debby being of Belgian origin, we used to travel regularly there to visit my in-laws. While there, we noticed Engel & Völkers was the luxury giant in Europe. We were already toying with the idea of starting a luxury resale agency, so when we saw the brand’s spectacular rise in the Americas, we jumped at the opportunity in 2015.

During 2020, you both took courses at MIT to increase your commercial real estate knowledge and finished top of your classes. Tell us a bit more about your decision to go back to school. We are experts in real estate projects and luxury resale, but I wanted to have that same level of expertise within the commercial

the EDGE Summer 2022

market. MIT has always been a university on my bucket list. My only disappointment was that this time, with COVID, I couldn’t have a portion of the training on campus, like I had at Harvard. It was quite a scheduling challenge with our three kids and our colossal workload. To our surprise, we finished at the top of our class, which had 144 international students enrolled. Debby finished with an average of 98.1 per cent and I with 97.5 per cent. We’re trying to show our kids the importance of education in view of their future options.

Beyond profits and statistics, how do you personally define success? High-level entrepreneurship inevitably comes with sacrifices. Too many people think they can achieve success without effort, risk, and enormous investment in time and money. And it is absolutely false that if we persevere, we will all eventually succeed. There is always a portion of luck and timing that is part of the mystery in entrepreneurship. You also have to give back to the community. That’s why we are also ambassadors and major sponsors of several foundations, including the Sainte-Justine Children’s Hospital Foundation and Centre hospitalier de l’Université de Montréal (CHUM) Foundation, where I’m also an administrator on the board. //

winners' circle

SHIRLYN ANTONIO Sales Representative, Century 21 Dreams Inc. Brokerage Exceptional Service and Trust by Aun Abbott

S Shirlyn Antonio is a licensed real estate professional with the Real Estate Council of Ontario. For the past four years or so, she has worked for Century 21 Canada. Antonio chatted about the challenges of being a real estate agent, the expectations from a company that is one of the biggest real estate networks in Canada, and how to deliver value to customers.

Photo courtesy of Shirlyn Antonio

What is the most challenging part of being a sales representative for a real estate firm?

What is the most important aspect of any customer interaction for you?

The most challenging part of being a sales representative for a real estate firm is keeping abreast of all communications, either from the brokerage or through other sources such as CREA, TRREB, and OMDRED. It is very vital as a representative in the real estate field, not only to be certified, but to be well-informed of any upcoming changes or modifications to rules, regulations, and clauses so we can better advise our clients about the market, its trends, and any foreseeable changes.

Being able to provide exceptional quality service and gain trust from customers are two important features for me. Knowing that clients have placed their trust in me and that I’m able to deliver 100 per cent from the beginning to end is the most rewarding feeling in this business.

What are the expectations for an agent from one of the biggest real estate brokerages with over 10,000 agents across Canada?

Before planning on purchasing a home — whether it’s for your personal use or investment purposes — I would advise that you talk with your financial advisor to review your current financial situation and determine information such as what you can afford and your minimum down payment. It is also beneficial to be aware of the economy and keep informed about the market (i.e., proposed interest hikes or any upcoming predictions about the real estate market).

As a C21 sales representative, it is crucial that we respect the C21 name/brand and carry ourselves with dignity, pride, and respect in a formidable manner that represents the culture, mandate, and policy of C21 and our respective brokerages. Century 21 Dreams exudes excellence, exceptional quality, and service, and our agents take pride in upholding these principles and standards to effectively serve and represent our clients.

What would your advice be for anyone looking to buy a house for investment or residential purposes?

A real estate agent can also provide housing market stats prepared by CREA that gathers and analyzes various components pertaining to the real estate market to help clients have a better understanding of it. Research, knowledge, and professional help are recommended when it comes to any investments. Therefore, having the right tools, data, and people to help steer you in the right direction is first and foremost. // Summer 2022 the EDGE

Are You Looking to Get Business Line of Credit? At Business Loan Broker, we specialize in business financing. We are a unique financing boutique, specializing in different business financing solutions to meet your specific business financing needs. In today’s fast-paced market, businesses turn more and more to business borrowing to secure better business performance. Business Loan Broker brings over 14 years of financing experience to help you achieve your business borrowing in a hassle-free manner.

Make the right choice by contacting us for a free consultation to make your business dreams a reality. 70 East Beaver Creek Rd., Suite 201 Richmond Hill, ON, L4B 3B2

Our Practice Area CSBFL Loans Business Line of Credit

(647) 354-2126

Working Capital

Info@businessloanbroker.ca www.businessloanbroker.ca

Owner-Occupied Building Loans

the EDGE Summer 2022

tech business & innovation

REAL ESTATE INNOVATIONS OF THE LAST TEN YEARS… AND THE NEXT TEN! by Sean Plummer

ike virtually every other Canadian industry, real estate was sideswept by COVID-19. Not surprisingly, house showings quickly ground to a halt once pandemic measures took effect. “Initially, it was really quiet when COVID hit, obviously,” said Toronto-based Royal LePage sales representative Sarah Norris. “Everybody just stopped and said, ‘Don’t come in my house!’” Since the Canadian economy started feeling the effects of the pandemic in March 2020, housing prices have jumped up 34 per cent, according to recent figures. Chalk up most of that climb to a collision between increased demand and limited supply.

But crisis, as they say, breeds opportunity. Innovations that have been gaining momentum over the past decade in commercial and residential real estate (as well as construction) accelerated as the method in which houses were made and sold adapted to pandemic-era realities. Many of these developments — which include online document signing, virtual home tours, and increased consumer access to housing information — will continue to fuel the next 10 years of real estate innovations.

Due to COVID restrictions and seller-safety concerns, perhaps the most obvious change has been the prevalence of virtual tours over in-person ones. Instead of having dozens of people traipse through a home on a Saturday afternoon, real estate agents now set up live video feeds to attract visitors. Not only does this accommodate more potential buyers, including those who may be interested but unable to show up in-person, it even pushes those who take their time contacting brokers further along the sales funnel. “I’ve done a few deals where someone is out of the country or a parent wants to see the house,” said Sammy Kohn, a sales representative at Ottawa brokerage firm Properly. "We do a FaceTime tour or something and a decision gets made through video. Why not? It’s a very effective little tool.” An innovative way to market future property developments over the next decade, especially for clients living abroad, will be the evolution into virtual-reality tours. By using 3D VR glasses, prospective home buyers will be able to “see” their future home during the design phase and suggest changes before ground is even broken. Clients can even experience how light falls inside the home at specific times of the day. Online document-signing is another welcome change to the home-buying process. Now, instead of an agent spending time and fuel driving to obtain a client’s signature multiple times on multiple documents, the entire process can be completed digitally.

Summer 2022 the EDGE

tech & innovation

DocuSign is one of the most popular software-signing programs because it’s easily understood by both younger, tech-savvy clients and older home buyers who may be less comfortable with technology. “All they need is an email and a finger or mouse to click on the signature bubbles,” said Mary-Beth Hollyer, a sales representative at the Real Estate Homeward brokerage in Toronto. While these developments are primarily client-facing, others are more useful to brokerages. The analysis of so-called “big data,” for instance, allows for more accurate valuations of properties; this becomes useful when agents expect multiple offers. These huge data sets can also provide deeper realtor insights into specific properties, predict consumer behaviour, forecast market trends, and model building performance for investors. The other major development of the last decade that has benefitted realtors is lead generation software. Top companies in this niche include BoldLeads, Zurple, Zillow Premier Agent, and Market Leader. These services often guarantee a specific number of exclusive monthly leads to realtors. These are generated via analysis of social media, brokerage websites, multiple listings services (MLS), and listing sites in specific geographical regions. Perhaps the biggest innovation, at least in GTA real estate, has been the liberation of housing data. Until recently, the Toronto Regional Real Estate Board (TRREB) did not share with consumers housing data gathered via MLS. This was an attempt, they argued in court, to protect consumer privacy. The Supreme Court of Canada, however, judged that TRREB’s real intent was to limit competition. The decision has resulted in greater consumer access to housing information online. This trend is expected to expand to real estate boards across the country. In terms of future innovations in this regard, January 2023 will see even greater consumer access to GTA housing data with the launch of REALM. This modern consumer relationship management

the EDGE Summer 2022

business

system will allow real estate agents to share access to search features and functions, market analytics, and historical listing details with clients. It will also act as a mobile-first platform with a real-time communication portal for each party to communicate and keep track of property developments as they occur. Many of the other real estate developments we expect to see in the next decade will be in construction. Sustainable buildings, for instance, will likely be a growing trend given that 40 per cent of global carbon dioxide emissions can be traced to construction and operation. That means stricter government sustainability standards will be attained by using energy-saving designs and healthier materials. For example, CarbonCure is a Halifax-based manufacturer that injects carbon dioxide into building concrete to reduce its carbon footprint. And Habitat for Humanity and its partner organizations have begun experimenting with 3D-printed concrete homes for affordable residential use in Leamington, Ontario. These can be outputted in a fraction of the time (and at a fraction of the cost) of a comparable, traditionally-built home. Beyond these technical developments, what emerged in this analysis is the ongoing importance (and relevance) of the relationship between agent and home-buyer. While many developments promise to “disrupt” a given industry, often by giving consumers greater control over — or information about — a given process, the agent–client partnership requires little innovation. “Buying and selling real estate is an emotional journey and managing clients’ nerves is a big part of the job,” said Hollyer. “At this point, robots or computers do not have the heart for real estate, but I welcome their ability to collect data for me and organize my business." //

tech & innovation

HOW TECHNOLOGY IS ENHANCING THE SINGLE- FAMILY RENTAL MARKET

by Susan Gebrezgie

nyone born outside Generation Z can likely remember a time when applying for a rental property was prolonged and tedious. From printing the rental applications and filling out relevant information, to attaching required documentation and finally mailing everything to the property management office, everything was limited to cumbersome paper forms. For landlords, the onboarding of new tenants was an easier process and typically consisted of a few reference checks, a couple of pay stubs and a handshake agreement. Over time, technological advancements led to the transformation of the rental market and, thankfully, this resulted in increased efficiency in the rental application process, benefiting both tenants and landlords. Here, we take a closer look at some of the ways technology has enhanced the real estate market, with a focus on the single-family rental sector.

What is a Single-Family Rental? Single-family rentals (SFRs) are single-family homes (SFHs) rented out to tenants. An SFH is generally defined as a freestanding residential building that is set up to accommodate one family.

These homes are more attractive to prospective tenants than multi-family properties because they are generally larger, located in suburban areas, offer more outdoor space, and represent much of what a growing family seeks.

Summer 2022 the EDGE

tech & innovation

Benefits for Tenants More and more prospective tenants searching for rental properties are heading online as their first method for finding vacancies. Some of the best rental sites include HouseSigma, MLS, Zolo (powered by MLS), Zillow, Rent.com, and Realtor. com. Each site features detailed search-and-filter criteria, and searches can be done by location, budget, number of bedrooms, amenities, house size, etc. Many sites also offer virtual home tours, which particularly benefit long-distance househunters since they no longer need to make long trips to view listings. Virtual tours are also beneficial during pandemic lockdowns because of limited access to open-houses. Another advantage is the option of online rental applications. Nowadays, many forms are fully optimized for mobile use, thus, the entire rental application can easily be completed online. Technology has also made it possible for tenants to screen prospective landlords and property managers. Demand for SFHs is strong, causing rent prices to rise at an increasingly fast pace and, as a result, certain steps should be taken to ensure one’s investment is carefully evaluated. Here are four ways to take precautions and screen potential landlords. 1. 2. 3. 4.

Check Better Business Bureau (BBB) and online reviews Talk to other tenants Find foreclosures Look into public property records

Once a tenant has found their dream SFH, technology remains an integral part of their everyday living. A few ordinary examples include online payment methods, automatic maintenance requests, keyless entry door locks, and smart thermostats that can be accessed via smartphone.

Beneﬁts for Landlords For the same reasons it has helped tenants, technology has also helped landlords via ease of access and information. Showing rental homes can take hours or even days, and not everyone has the luxury of time. Rather than taking time off work, landlords can use technology (like virtual tours and showings) to show off their properties. Landlords are also following the lead of real estate agents and leveraging free platforms like Facebook Marketplace to advertise.

the Edge Summer 2022

According to real estate expert Jonathan Okubay, the best lead generator for agents to increase traffic is Facebook. According to him, “It’s one of the leading platforms for agents to inform, engage, and especially connect with their niche audience.” When it comes to document management, offering an online portal for rental applications and having everything stored electronically makes it less likely that documents will get lost. Moreover, online tenant-screening enables landlords to screen potential renters by credit score, eviction histories, and more. Landlords can then select a few potential tenants for viewing. Today, some landlords even use algorithm-driven, AI-powered rental screening apps to determine a tenant’s willingness to pay rent. Finally, utilizing property management software to facilitate overall tenant management can be both cost-effective and convenient. For example, setting up due-date alerts can improve a landlord’s chances of receiving payments on time. It also helps them log and track maintenance records, providing landlords with a record of the issue plus when and how it was addressed. This protects them from potential disputes or miscommunications.

Top Property Management Software Three of the most robust and scalable property management software providers in Canada are Buildium, Total Management, and DoorLoop. These rental software technologies provide a simple, fast, and secure way to deal with nearly every aspect of the renting process — from online rental applications and payment options to tenant-landlord communications and even the ability to submit requests for service or emergency notifications.

Final Thoughts… Okubay sums it up best: “If buyers and tenants surround themselves with the right power team of experts to help them navigate the process, there are definitely creative ways for them to get into the SFH market.” Technology has certainly elevated the SFR market and streamlined the entire rental application process for tenants and landlords. The key to finding that ideal single-family home is to embrace technology and, when needed, accept the help of experts who — naturally — will also take advantage of innovative options. //

Real Estate Reimagined Finding a home has never been easier! With Bloc Estate, searching for real estate is simple, fast, and better for your wallet. Whether you're buying or selling, we apply industry expertise and analytical technology to determine the best price for your next real estate transaction.

Download Our App! T: +1 (647) 258-6352 E: mail@blocestate.ca www.blocestate.ca 1-935 Sheppard Ave W. North York, ON M3H 2T7

Summer 2022 the EDGE

tech & innovation

LAUREN HAW CEO, Zoocasa

Right Decision, Right Time by Rose Ho

Lauren Haw is a real estate professional with a multi-faceted understanding of the industry. Having started by investing in the brokerage company True North Mortgage in 2008 and successfully growing it from Alberta to Ontario, Haw then launched the spinoff website Ratehub. ca. In 2012, she then earned her real estate licence and sold properties for RE/MAX and Keller Williams. When Rogers Communications put discount real estate brokerage Zoocasa.com up for sale in 2015, Haw was perfectly poised to buy and develop the company into what it is today. In 2021, Zoocasa was named in The Globe and Mail's ranking of Canada’s Top Growing Companies for a third year in a row. ove.

What is something that technology cannot replace in the process of buying and selling properties? Automated valuation models (AVMs) are all over real estate, and a lot of people on the outside of the industry think, “If I can just create the best AVM and just tell somebody what a house is worth, then we won't need agents anymore.” But the reality is that isn't true because what agents actually do is help somebody work through all of the variables in their life to make the best decision for them. What a house is “worth” — compared to another house — is really only [based on] one factor: whether or not it's the right decision for a person or a family to make at the time. Even if a house is worth “X” dollars, it doesn't mean you can just write an offer and get that. You have to have relationships with other agents and sellers to be able to acquire that property for clients. It's such a big financial decision that a lot of people come into with fear. It’s so exciting to start looking for new homes; but when you have to make a multi-million-dollar decision, I find that clients really want to lean on the empathy, compassion, and competence that an actual human can give them in terms of advice. It takes a combination of therapist, financial advisor, problem solver, and negotiator to get it done.

On the flip side, what are the ways in which technology has vastly impacted and improved the industry? Some of it is just making it easier. On the agent side of things, making it easier for agents to communicate with each other, book

the EDGE Summer 2022

Photo courtesy of Lauren Haw

showings, do viewings, and stay organized in that way. It’s taking away some of the manual administration. For the clients and the online users, I think it allows them to do some research and digging prior to jumping into the market. Generally, buyers are coming in with a better knowledge of, "Oh, this price isn't the sale price, right?” Or coming in with an understanding of what prices are in any given market. It's interesting because in the last couple of years, we've seen a big growth in off-market and exclusive chats. I've seen NARS — the National Association of Realtors — going after exclusive or pocket listings in certain states. And in Canada, we're starting to see a real growth of Facebook groups and other groups that are realtor-to-realtor to share exclusive listings.

Do you have any advice for people looking to invest in real estate in the current climate? I've personally always believed in the long-term. Buy and hold. Do things that make sense long-term. The churning of real estate can be very time-consuming. Truly, you are usually better off getting yourself into a financially sound, long-term scenario. That said, in the last 20 years, you could churn as much as you want, and in almost any case you would've done very well and looked like a genius. But when you look at the family dynasties that have hundreds of millions and billions of dollars in real estate, they're long-term land bankers for the most part. Apply that way of buy-and-hold, even if you're just getting started. //

tech & innovation

SAM MIZRAHI

President of Mizrahi Developments Sky-High Ambitions by Jericho Tadeo

The One skyscraper is in its fifth year of development and will — when completed — become the tallest skyscraper in Canada, standing 308.6 metres tall with 85 storeys. Developed by Mizrahi Developments and designed by British architectural firm Fosters and Partners and Toronto-based Core Architects, The One is set to feature retailers, restaurants, event spaces, and hotel suites in its first 18 storeys and luxury residential units thereafter. The idea for The One comes from the president of Mizrahi Developments, Sam Mizrahi. Born in Tehran, Iran, before immigrating to Canada with his family as a six-year-old, Mizrahi started his entrepreneurial journey at a young age. Of course, it is The One, nestled in the heart of downtown Toronto, on the southwest corner of Yonge and Bloor, that effectively put Mizrahi on the map. Photo courtesy of Sam Mizrahi

What does The One represent to you, and what is Bloor Street’s significance? Bloor Street is really Toronto's High Street. It's one of the most important intersections in the country. The One signifies excellence and moving boundaries in a positive way, in terms of achievement. You couldn't think of a better place [than Bloor] if you're going to build a one-of-a-kind luxury development that's going to exceed all the current benchmarks that have ever been envisioned in Canadian architecture and Canadian high-end luxury living. I wanted every aspect of the development to be exceptional, without compromise. [I wanted] the “number ones” in each sector to be there, whether it’s our retailers, restaurants, hotels, or residences, or [the ones] of glass, steel, interior finishes — we wanted [The One] to become a building with no compromise.

How do you stay exceptional after over a decade in real estate development?

exceptional, and what made the company, the brand, the products, and the buildings that we’re developing exceptional. But then, you have to evolve that anchor to be current with modern technology and art. I think it's always looking at how we can improve our product to make life better and be the best at it. You don’t want to just keep up with it — you want to exceed it. That was our motivation when we first came out: it was to do something differently and to do something that hadn’t been done before.

Success in real estate, although hard to come by, eventually leads to money, fame, and influence. What is your main motivation for this profession? What drives me is for homeowners and clients — and for anybody that came in contact with our company, our brand, our architecture or developments, or even myself — to say, “Because I met you and because we came into contact with you, our lives were better off."//

You have to evolve — I think evolution is key — but you have to be anchored in your core values. You have to be anchored in your core value system of what defined you and made you

Summer 2022 the EDGE

Yours To Discover

DIAMOND IN THE RUFF GOLF & VACATION RESORT

fter a heavy winter season, sunny days are upon us once again and there’s no better way to enjoy the season than by living the cottage life you richly deserve. And while many people enjoy a trip to the family cottage in the spring and summer, the luxury cottage experience at the Diamond “In the Ruff” is like no other.

The Diamond “In the Ruff” is a cottage resort located in Muskoka, the heart of Ontario’s majestic natural beauty. Just a two-hour drive north of Toronto, the area has been hailed by both National Geographic and Reader’s Digest as one of the best trips to take in the world, and the picturesque lakeside could be yours to experience. The spacious three-bedroom “post-and-beam” luxury private cottages can accommodate up to 6 guests. With satellite TV, unlimited WiFi, a media centre, comfortable furnishings, and a breathtaking view of the lake from the floor-to-ceiling windows, Diamond “In the Ruff” offers one of the most relaxing experiences you can find. Each cottage sits on a gorgeous private lake, which is open to canoes, paddle boats, water skiing, kayaks, swimming (along with available life jackets), and fishing. If you’d prefer to stay dry, there are biking and walking trails, basketball courts, and a golf course. 52

the EDGE Summer 2022

Location 1137 Old Parry Sound Rd, Huntsville, ON, Canada, P0B 1M0

Activities If you prefer skating and ice fishing on the private resort lake, you can also book a cottage for the winter.

SEND US AN EMAIL AND VISIT US thediamond.ca | 877-385-3222 | @diamondintheruff

Summer 2022 the EDGE

policies

POLICY CHANGES IMPACTING FOREIGN INVESTMENT by Rob Shapiro

anadians face many barriers when becoming homeowners or buying commercial property. There are high interest rates, bidding wars, and low inventory, to name a few. The biggest barrier, though, might be that competitiveness isn’t driven solely by Canadians anxious to buy a home. A portion of residential and commercial sales is from foreign investors who are driving prices up without any intention of occupying the home.

There is no question that the Canadian housing market has been extremely prosperous for foreign investors. Incidentally, their activity has triggered increased housing prices, had devastating effects on vacancy rates, and put a dent in the inventory. According to Statistics Canada, in Ontario, foreign owners buy 1-in-11 new condos and in British Columbia, the data suggests that 1-in-8 new condos are purchased by non-resident buyers. This trend has even reached Atlantic Canada. So, what are Canadians supposed to do, and what is the role of the government and real estate companies to make sure this trend doesn’t continue? In parts of Canada, housing is not only a great investment, but it ensures people from all walks of life have a retirement asset and somewhere to live comfortably. Across provinces, there have been some recent changes that are poised to impact foreign investors and could pave the way for a very different housing market.

the Edge Summer 2022

policies

In December 2021, Canada put forward more measures to cut off foreign investors at the knees. The government’s stance is that if the housing market is going to continue to be lucrative for foreign investors, they want their cut. This has already resulted in higher taxes on foreign investors, and those taxes could spike further. These taxes and reforms include, but are not limited to: • Excessive rent surplus, which is an amendment to the Income Tax Act that requires landlords to disclose rent, before and after a renovation. Landlords might have to pay an additional tax if they increase rent after a minor renovation. • Anti-flipping tax on residential property, which limits tax investors looking to flip a property to ensure this type of investment isn’t being used as a form of money laundering. • Investigating tax incentives for the Real Estate Investment Trusts (REITs), which are popular for their tax efficiencies and role as a tax haven. The goal is to make these trusts less attractive to foreign investors.

Defining a Foreign Investment Simply put, a foreign investor is a non-resident who purchases a property solely as an investment. They have no intention of occupying their purchased home. In many cases, it offers lighter tax implications than other investments. Foreign investors have helped encourage the condo boom in major Canadian cities, but are not fully to blame for any housing bubbles. Their biggest impact can often be felt in a bidding war where your budget suddenly feels small when a mysterious bidder enters the picture, or the property never makes it to the offer date because of an aggressive bully offer.

Canada is tightening the vise on foreign investment in order to rein in the free spending that has harmed Canadian homebuyers. The result could be good for Canadians and disastrous for foreign investors.

Limiting the Appeal of Real Estate Most Canadians want to own a home. They see it as their likeliest path to some form of retirement. By preventing foreign investors from eating up valuable real estate, Canada can impose laws or create obstacles that make owning real estate difficult. The government hopes that by removing some incentives and by adding extra barriers to investors, they can reduce the residential investment sector. Some of these challenges include a temporary ban on foreign investors and requiring all investors to make a larger down payment.

Intervention by the Federal Government

Will Canada and Foreign Investors Find Common Ground?

The federal government has announced plans to restrict the abilities of foreign investors and impose tougher measures to curb their purchasing power. It has vowed to work with Housing Minister Ahmed Hussen to review the rules regarding down payments and the profits one can derive from an investment property. This will impact both foreign investors and, to a lesser extent, Canadians looking to snatch up investment properties.

There is a place where Canada can prosper from foreign investments and where foreign investors can still make healthy profits. It can never be at the expense of Canadian homebuyers though, which is why recent changes have been quite severe.

The goal is to allow smaller, mom-and-pop-style investors and landlords to thrive while limiting the purchasing power of huge real estate trusts that buy property with reckless abandon. The difference is that smaller investors often require renters to make the investment profitable, which can positively impact vacancy rates and reduce speculative demand.

A Higher Tax on Foreign Buyers A common strategy to cool down foreign investors is to impose a tax or set of taxes on their investment(s). For instance, in 2018, the NDP government in British Columbia increased the foreign buyer’s tax to 20 per cent and expanded its reach to outer Vancouver.

It’s fair to assume that more measures are forthcoming, especially if those currently in place do not yield the expected results. Canadians should sit tight and wait to see if these policies work in their favour. Remember, Canadians can still make a lot of money off real estate investments, even if they jump through more hoops than before. Over time, these changes could drastically impact housing markets across Canada in ways that would help Canadians. For now, it’s up to the government to continue monitoring foreign investments and ensure they are in the best interest of Canadian homeowners and renters. //

Spring 2022

the EDGE

policies

BENEFITS OF GOVERNMENT INCENTIVES ON THE REAL ESTATE INDUSTRY by Nigel Taklalsingh

n 2021, the number of homes available for sale declined, while the average price increased by 18 per cent, according to an RBC Economics report. The report states “millennials will remain the biggest source of first-time home buyers.” Over the last five years, more than 800,000 people between the ages of 25-44 (millennials) entered the prime homebuying stage. The other source of new home buyers is immigration. Canada plans to welcome 411,000 immigrants in 2022 and 421,000 in 2023. While record inflation, a rising interest rate environment, and a cautious post-COVID economic outlook will soften some of the demand; it is still expected to remain strong.

Commercial real estate is the other important part of the Canadian real estate market. According to the 2022 Canada Real Estate Market Outlook by investment firm CBRE, there was a record investment of $57.9 billion in commercial real estate in 2021, with an expected increase of $600 million in 2022. Driven by businesses implementing their return-to-office strategies and ongoing demand for technology workers, the need for office space in urban centres contributes to the demand in commercial real estate. CBRE also expects that the need for space to store and distribute products will stay strong, as more consumers continue to shop online. With both residential and commercial real estate markets forecasting continued growth, investors need to consider the most economical point of entry to maximize their return. Listed below are several incentive programs for residential and commercial real estate.

Affordable Housing According to the Report of the Ontario Affordability Task Force from February 2022, the years 2011 to 2021 saw the average

the EDGE Summer 2022

price of a house increase by 180 per cent, while average incomes only increased by 38 per cent. This disparity has partly been created by the deficit between the demand and supply of housing. Based on the projected population growth, Ontario needs to build 1.5 million new homes in the next 10 years to address the shortage. The report recommends the creation of the Ontario Housing Delivery Fund to promote affordable housing. While the creation and details of the fund still need to be outlined, it is reasonable to expect tangible outcomes considering the gap in available housing. For over 70 years, the Canada Mortgage and Housing Corporation (CMHC) has played a key role in providing affordable housing directly to buyers and developers through a variety of programs. The Seed Funding program is one such program that provides interest-free loans and/or non-repayable contributions. Specifically, it supports the construction or conversion of new housing and maintenance of existing community housing. The Shared Equity Mortgage Providers Fund supports existing shared equity mortgage providers through a $100 million fund. Through this fund, individuals can access home ownership by sharing the costs and ownership (equity) between the owner and the lender.

New Housing Programs With the influx of millennials and immigrants entering the homebuying market, the GST/HST new housing rebate program provides some relief on the taxes with home purchases. The program offers tax rebates on purchases of newly-built property and shares in a co-operative housing corporation, or substantially renovated property. One notable condition of this program is that eligibility is limited to properties with a maximum purchase price of $450,000. According to the Financial Post, the average cost of a house in Canada is over $700,000 in December 2021. While this limits the opportunity to claim the rebate, excluding

policies

higher-priced property in Vancouver, Montréal, and Toronto would lower this average to more eligibly priced property. Another program geared to encourage property purchase is the Home Buyer’s Plan (HBP). The HBP allows withdrawals from Registered Retirement Savings Plans (RRSPs) to be used to purchase property. The maximum withdrawal amount (currently $35,000) will need to be paid back to the RRSP over a 15-year period, starting two years after the property was purchased. According to the Government of Canada, an individual is classified as a first-time home buyer if, in a four-year period, they “did not occupy a home that they owned, or a home that their common-law partner or spouse owned.” Like the GST/ HST New Housing Rebate, the current average housing price in Canada lowers the efficacy of this program.

Climate Change Home Renovation If the preference is to renovate an existing property, the Canada Greener Homes Grant provides up to $5,600 in federal grants for energy-efficient retrofits: $600 allocated to assess the retrofits and $5,000 towards the implementation. Single, semidetached, and townhouses qualify for this initiative, with eligible retrofits including the upgrade of home insulation, installation of ENERGY STAR® windows and doors, and switching to more energy-efficient heating equipment. The National Bank provides a comprehensive list of other grants at the provincial level that support home renovations.

Commercial Real Estate Incentive Programs With small businesses continuing to feel the economic impacts from COVID-19, British Colombia introduced a 25 per cent average reduction in commercial property taxes. Ottawa implemented a similar program with a 15 per cent discount to commercial property taxes. Toronto has provided a Commercial Space Rehabilitation Grant Program that matches funding of 50 per cent to improve small retail businesses and assist in re-leasing the space for properties that are vacant or at risk of becoming vacant due to COVID-19. Aside from pandemic-related programs, Edmonton offers grants to assist in environmental testing, revitalization of commercial districts, and cost sharing in developing industrial infrastructure. Across Canada, Business Development Canada (BDC), a whollyowned corporation of the Government of Canada, provides up to 100 per cent financing for the purchase of commercial property (other financial institutions provide up to 70 per cent). Financing can be used to purchase buildings, pay for construction costs, and renovate existing facilities.

Opportunities Exist to Purchase Residential and Commercial Real Estate Whether buying or developing residential or commercial real estate, government incentives can reduce the costs of these investments. With both markets projected to continue growing beyond 2022, the question will be on how best to maximize the benefits. //

VIKRAMJEET SINGH CEO/MORTGAGE AGENT

6375 Dixie Road, Unit 101 Mississauga, ON L5T 2E7 T. (905) 814-4462 F. (905) 814-4263 E. vikramjeet.singh@brevitycapital.com W. brevitycapital.com

FSCO License #12746

BREVITY MORTGAGE SERVICES INC.

Summer 2022 the EDGE

policies

GIL BLUTRICH Founder and CEO, Clear Inc. Clean Air and Water Systems

There is nothing more terrifying for a parent than their child falling terribly ill for seemingly no reason. That very thing happened to Gil Blutrich’s six-year-old daughter in 2015, when she came down with an inexplicable digestive problem. It had baffled the family, in addition to their medical practitioner. That is, until a little digging revealed something shocking: there were biological contaminants in some of the drinking water she ingested. This was in Toronto — in the developed world, least of where one would expect! Photo courtesy of Gil Blutrich

by Dave Gordon Blutrich, a well-respected Toronto developer, sought to prevent this from happening to anyone again. A little sleuthing revealed that, even in new buildings in Toronto, water is carried by plumbing dating back some 70 years. Blutrich, also Ernst & Young’s Entrepreneur of the Year in 2004, explained that the issue is not that the water is tainted from the city plant; rather, it is contaminated with biofilm that covers nearly half of all the pipes in the city. He found out that these toxins contaminated water as much as they contaminated air. “Your building might be one of the 40 per cent of buildings that the World Health Organization characterizes as ‘sick,’” he said. In buildings with poor filtration systems, “Sick Building Syndrome” can cause a host of issues, including respiratory problems and exposure to viruses and bacteria. It can also carry risks of longterm health consequences. The American economy loses 74 billion USD a year of productivity from this issue, according to his research. Coincident to the pandemic, when the world began focusing more on health, he wondered: how can we make a change to real estate so that the water we drink and shower with — and the air we breathe — is clean? As chance would have it, Blutrich’s bona fides make him a perfect fit for problem-solving within a property structure. Today, as president of Blutrich Holdings, and one-time founder of Skyline Investments, he possesses knowledge on how buildings are put together based on his long career history. He was a man with a mission, seeking out a practical solution to ensure that a building structure would have clean air and water circulating throughout. His investigation took him to Israel, of all places, where he discovered “amazing technologies that have been working successfully for many years” appropriated by hospitals, pharmaceutical companies, and other health-related institutions in 62 countries.

the EDGE Summer 2022

As a matter of fact, these high-tech systems are used by corporate giants Pfizer, Kimberly-Clark, and Baxter. “What is good for a pharmaceutical company to get water clean from pathogens, bacteria, and viruses is what’s good for residential buildings,” he concluded. Since Israel is under constant biological and chemical threat, they have been perfecting military-grade equipment to scrub threats from water and air for many decades, he discovered. Bringing these advances to North America, Blutrich founded Clear Inc. in 2020, now at the forefront of patented and EPAapproved technologies that disinfect a building’s water and air from pathogens, bacteria, and viruses. Among its methodologies, Clear uses advanced UV light technologies, which Blutrich says, “creates 99.99 per cent microbiologically pure, pharmaceuticalgrade water through every tap in the building, without the use of chemicals.” Blutrich pointed to two landmark studies that revealed serious problems in air and water that we consume. In 2017, the Canadian government released “Enteric Viruses in Drinking Water,” outlining the risk of viruses travelling in drinking water. A year later, the World Health Organization issued “WHO’s Guidelines for Indoor Air Quality.” It suggested a connection between household air pollution and low birth weight, tuberculosis, cataracts, and laryngeal cancers. Toronto-based Lifetime Developments partnered with Clear to integrate their systems into all future projects to adopt in about a year’s time. He’s spearheading the build of a 32-storey Toronto hotel to be the first hotel fully run by Clear, launching in 2023. “It will ensure travellers a healthy experience,” Blutrich said. Whereas air and water quality research linked to “sick buildings” is still in its relative infancy, Blutrich says he wants to contribute to the ongoing science discourse and will supply, for free, the data he collects to any future public study. “I believe that clean air and water is a human right,” he said. “It’s not luxury or a privilege.”//

policies

CHANDRA DHANDAPANI Chief Transformation Officer Multidisciplinary Teams Chandra Dhandapani has held a lot of titles since joining CBRE in 2016 to lead the corporation’s digital strategy and handle the technological aspects of it. She’s always believed leadership and serving clients are built on the same principle: helping people realize their dreams. Now Chief Transformation Officer and Chief Operating Officer for their Global Workplace Solutions sector, Dhandapani leads a diverse team of specialists to navigate oncoming challenges in the digital sector of the real estate industry.

by Kenny Hedges

Photo courtesy of Chandra Dhandapani

What’s your style of leadership as you oversee a team while holding an important position in CBRE? I’ve always believed that leadership isn’t about being in charge; it’s about being someone others want to follow. I strive to be engaged, curious, and ambitious about transforming the status quo in our industry. I believe in pursuing the notion of what’s possible and using that opportunity to paint a picture and create something that’s bigger than all of us. I enjoy working with and encouraging my team to do amazing things that they didn’t believe they could pull off — and they often deliver beyond what any of us imagined. I would love for our teams to look back on our time together as a time when we dreamed big and achieved those dreams. Our North Star at CBRE is “creating the real estate solutions of tomorrow so businesses and people thrive.” In any environment, but especially now, we must listen carefully to what our clients and employees are saying. They want help addressing their needs, and we want to help them differentiate the noise from the signal.

You’ve spoken before about the importance of having a multidisciplinary team. Can you expand on that? The challenges we face in business are complex and multidimensional. Often, the larger the organization, the more siloed we tend to be. I firmly believe that busting through silos and bringing together multidisciplinary teams will help us achieve better outcomes faster — especially when we bring a multidisciplinary team together in an agile delivery model to iterate and get to the target state faster.

How does CBRE support professionals across the entire investment lifecycle? We refer to the support we provide our professionals as the power of our platform. We have committed to and are focused on investing in resources that are core to the success of our professionals, including sales management, marketing, research, and thought leadership, giving our teams data advantage and enabling technologies. In terms of our clients, we offer a

complete spectrum of services across the investment lifecycle, including the acquisition, value enhancement and disposition phases. Using our enablement strategy of “build, buy, and/or partner,” we strive to provide our professionals and our clients with data-driven insights and technologies that enable them to achieve their goals.

Digital transformation is something that’s still fairly new to real estate. What are the potential benefits and drawbacks of digital transformation to the industry? Our clients and professionals expect us to be much more data-driven and tech-enabled in the services we provide and enhance the quality and consistency of those services. Imagine a scenario where a building engineer gets notified of an issue along with the right contextual data on her mobile device. She’s enabled by a strong Fault Detection and Diagnostics (FDD) system that allows her to troubleshoot and resolve the issue swiftly and correctly on her first visit. The work order system recommends the parts needed to solve the problem, and the procurement system enables the order to be placed with the best supplier for that area at a company-negotiated price. There is a great benefit to that type of digitally transformed building operations process, and we are excited about the way we are bringing those capabilities to life in a smart combination of software and services.

As Chief Transformation Officer of CBRE, how are you making sure that technological use is optimized inside and outside the organization? The hardest part of digital transformation in an industry like ours is [being able] to identify and apply the right technology for the right use cases and to elegantly integrate services and technology solutions in a seamless manner. I commented earlier on the power of multidisciplinary teams. At CBRE, we assemble multidisciplinary teams that include “fit for purpose” real estate experts, product managers, software engineers, and other functional expertise as needed to define the problem/opportunity and develop solutions in an agile, iterative manner that results in specific product/solution roadmaps that enable client outcomes. //

Summer 2022 the EDGE

TELECOMMUNICATIONS & INFORMATION TECHNOLOGY SERVICES

ENGINEERING SOLUTIONS THAT ADD VALUE TO YOUR ORGANIZATION

the EDGE Summer 2022

leadership

Real Estate Changemakers Protecting Communities from Gentrification by Tashon Daley

ccording to Business Insider, the process of gentrification is characterized by the destruction of old properties in a community to make way for newer ones. The goal of clearing these properties is to redevelop these communities and make them attractive for new businesses eager to move into these areas. While the motives behind these redevelopments sound simple, their costs weigh heavily on the community’s residents.

Most developments occur in low-income communities. By the time new buildings and properties have been constructed, the prices for renting or purchasing them skyrocket. Original residents — who can no longer afford these properties — are then forced to take up residency elsewhere. For these reasons, individuals and groups throughout North America — and the world at large — have been dedicating their life’s work to countering gentrification. Today, a growing number of companies and organizations involved in real estate have been developing methods or working on projects that protect vulnerable communities. Two such examples of American companies acting like real estate brokerages are RPS Solutions LLC and Taking Ownership PDX, LLC.

Summer 2022 the EDGE

leadership

RPS Solutions LLC Founded by Kevin Seawright, RPS Solutions purchases properties, develops homes and makes them affordable for middleand low-income community members. An unfortunate reality Seawright highlighted was that affordable housing is limited in America. The Baltimore native also noticed the trend was prominent in his city, where people rented more than investing in properties they could own. “Gentrification has been driving income inequality in major cities for the last few years,” Seawright told Authority Magazine. In Baltimore, it has driven many workingclass families out from their communities, as they could no longer keep up with the expenses of their pricey new homes. RPS Solutions aids communities facing these particular problems by helping buyers close deals and offering warranties for people looking to repair their homes.

Taking Ownership PDX, LLC Taking Ownership PDX boasts an entourage of realtors, contractors, and businesses. Musician and activist Randal Wyatt founded it in Portland, Oregon, seeing it as his calling to address the effects of gentrification on marginalized communities. Wyatt told Yes! Magazine that gentrification was rooted in white supremacy as the ideology itself revolved around land ownership. ChangeLab’s Scot Nakagawa described this as a form of structural racism — legally sanctioned racism that impacts a race socially or politically. In a blog for Broadbent Institute, housing development specialist Stephanie Allen also discussed the role race plays in gentrification. The two are intricately intertwined, with a large percentage of lower-income community members being racialized. This, unfortunately, is due to the legacy of settler colonialism — and still defines — discriminatory policies

the EDGE Summer 2022

that affect the Black and Indigenous populations in Canada. Wyatt and his team are dedicated to protecting Black homes, granting homeowners the opportunity to stay in their homes and age there. Just this February, the company received $75,000 from Nike. KGW News reported that Nike was putting together funds as part of an initiative to support organizations aiding Black people through social justice, education, and job opportunities. Eager to work on more homes, Taking Ownership PDX said these funds could cover around 15 homes they plan to work with.

Canada In Toronto, gentrification has been on the rise, even as we navigate through a pandemic. An open letter from the Ontario Coalition Against Poverty (OCAP) — submitted to Mayor John Tory, the Affordable Housing Committee, and the City of Toronto — echoed the frustrated tone of the authors. In it, OCAP criticized Bill 124 for contributing to gentrification displacements and 1.1 per cent vacancy rates. Two Canadian organizations relying on the power of community, research, and partnerships to advocate for vulnerable communities are the Parkdale Neighbourhood Land Trust and CP Planning.

Parkdale Neighbourhood Land Trust One popular solution to Toronto’s urban planning crisis comes through land trusts, which the community of Parkdale uses to counter gentrification. This not-for-profit organization purchases land from the area to own and manage. They lease it out to partners who can assure their properties are affordable and well-managed. The organization is strongly backed by the Metcalf Foundation, the city of Toronto, and the Atkinson Foundation. It has over 800 members committed to offering programs and seeking long-term grants for the

development and protection of Parkdale. Executive Director Joshua Barndt told The Canadian Press they turn the private properties they buy into communal ones, offering community members the chance to decide what to do with them.

CP Planning Founded by Cheryll Case, a Toronto urban planner, CP Planning hopes to create more community service spaces while supporting affordable housing initiatives. Case also emphasizes the matter of safekeeping a community’s culture. In a CBC interview, Case said it’s important to foster relations with original community members to cater to their interests. Case believes planning processes themselves have a lot of evolving to do in order to reflect all members of the communities that are affected. Apart from racialized residents, women and individuals with disabilities should also be included. Her inclusive and forward-thinking approach is what she considers a human rights-based framework. Though gentrification is a problem that continues to grow, we have many ways to counter or prevent it from destroying communities, thanks to the strategies and hard work of community members and organizations. The strengths of land trusts are one way to keep communal properties in the hands of their residents, but there are also individuals involved in urban planning who can develop new and unique strategies that can cater to the needs of vulnerable residents. Organizations that purchase land and develop them for low-income communities also help safeguard these neighbourhoods from predatory realtors or land developers. Combining the work of these individuals, community members, and organizations can not only save communities from gentrification, but also bring back the overall feeling of community they lost during the process. //

| Doctors & Nurses Vibrant Healthcare Alliance provides accessible primary health care services for people with physical disabilities.

| Foot Care

Primary Health Care Services

Our chiropody (foot) clinic provides maintenance of general foot health & managing unexpected foot ailments.

| Dietitian The dietitian works with individuals and groups to support healthy eating for a variety of dietary needs.

| Social Workers Our social workers provide counselling, case management and advocacy to clients; we provide individual, couple and family counselling.

| Occupational Therapy In-home intervention and psychosocial support to help individuals develop or maintain the skills to manage daily living at home safely, independently and with conﬁdence.

| Mid-Toronto Diabetes Program

Phone: (416) 486-8666 Fax: (416) 486-8660 E-mail: info@vibranthealthcare.ca

We provide free diabetes selfmanagement and prevention education for adults.

| Physiotherapists

DONATE TO THIS CHARITY VISIT ONLINE: WWW.VIBRANTHEALTHCARE.CA 63

the EDGE Spring 2022

Physiotherapists assess level of mobility, strength, endurance and other physical abilities. Treatment plans focus on promoting wellness, mobility, and function.

leadership

ERIC EATON Founder of Eric Eaton Homes

Navigating the Eye of the Storm by Kenny Hedges

It’s Eaton’s dedication to customer service, plus an impressive track record of over 30 years of experience, that led to him receiving Royal LePage's President’s Gold Award in 2014, presented to the top 10 per cent of sales representatives nationally. Since then, he’s split his time between continuing to serve the GTA at Royal Lepage and training aspiring realtors at eXp. With conditions and affordability expected to remain challenging this year, Eaton spoke about the fundamentals of earning a customer’s trust and the importance of mentorship. Photo courtesy of Eric Eaton

As an experienced realtor, how do you get a customer to trust you? My philosophy is really working with the client. Make sure that I ask a ton of questions. I go into it making sure that I know exactly what their needs are, their goals, their expectations, and I actually create a plan unique to them. It's not cookie-cutter. Because, in their heart, their situation is unique. My approach is really from a customized service approach. By asking them all the right questions, I believe they can see that I've got their interest at heart, first and foremost. I believe that they trust me, not to mention the fact that I've now been in the industry for over 30 years. I've established a lot of contacts over time whom I can lean on to provide a level of service to my clients that ultimately says, “I'm in it for them, not just for me.”

among many other awards over my career. When I receive an award, I know that there's a lot that goes behind [it]. Obviously, there are certain components that really come together to make that all happen. Being organized and having structure in my business is really important. To have that communication skill set is [also] really important. I think all of these things combine to enable me to have a successful business. Also, make sure that you're asking the right questions — no matter what it is — whenever you're engaging with the client, because I can guarantee you that they're thinking something completely different than what you are thinking. That just comes with experience.

The President’s Gold Award is awarded to the top 10 per cent of sales representatives in Canada. What skills or experiences of yours do you think helped you land this honour?

Some analysts were predicting a real estate bubble collapse, but that never happened, and prices kept climbing. You described it as “the eye of the storm” a few months back. What are some ways property buyers can navigate this situation?

I'm honoured to receive such an award,

One of the very first things that we want to

the EDGE Summer 2022

establish is, "Are we ready to buy a home? Are we financially sound enough to buy a home? Do we have the job stability? Do we have the amount saved for the required down-payment?" Once we've done those things, then it's really important that we don't start looking at homes that we can't necessarily fit into our budget. In most cases, in this particular market right now, we probably need to look at homes below our budget. Unfortunately, we're not in a buyers’ market — we are in a sellers’ market. And the seller really dictates the terms.

You’ve been appearing on Facebook Live recently to update people on the GTA market and talk real estate. How do you feel social media has benefitted you? Social media is great! It’s great in order for you to get your message out there. What you don’t want to do is … you don’t want to spend all day on social media. The other thing about social media — it’s really all about who you can take from an online process to an offline process. That’s something I definitely strive for. //

leadership

SAM McDADI

CEO and Founder of Sam McDadi Real Estate Inc., Brokerage Staying at the Top by Arslan Ahmed

While not a lot of people ever find the passion for their work, Sam McDadi is one of those lucky few who switched from a corporate environment to the exciting world of real estate. In his words, the immediate deciding factors for the move were: “I liked houses. I liked people. The business was low-cost entry.” The best part was that he had a real passion for his job. Fast forward 30 years, and he has become a recognized leader in GTA real estate. McDadi discussed his journey to success, his thoughts on achieving big in this competitive industry, and becoming a real estate owner. Photo courtesy of Sam McDadi

Briefly recount the journey you undertook to make Sam McDadi Real Estate Inc., Brokerage the number one in the GTA for the eleventh year in a row. It was built organically. It wasn't overnight. For many years, I was just trying to carve out a career where I make enough of an income, and then we started seeing success, and that started multiplying. I started bringing on different team members that would help me continue to grow. Getting to the top was something we were very happy to achieve, but we're probably even more proud about staying at the top because a lot of people don't have the staying power to be there for 11 to 12 years. But for us, our business continues to grow. That's a testament to our culture, the great people we surround ourselves with and our vision to continue to add a lot of value for our clients. We never really rest on our laurels. We're always trying to reinvent ourselves.

As a leader, what aspects of your personality would you say contribute the most towards effective teamwork and collaboration? Being a bit of an athlete in my younger days, I understood how to compete and be a good team player. I understood the importance of being fair. Being a good listener, being attentive to your teammates, understanding concerns, and addressing them fairly has really catapulted us. Sometimes, people are more inherent leaders than others. Some people in the real estate sector should probably just be a singular agent because maybe they don't have the right profile, personality-wise, to build an effective team. I've been an effective team leader and, for the most part, most of our agents with us are with us indefinitely.

From your education and past experiences, what has had the most impact on your career?

You wouldn't think you need an MBA to sell real estate, but I never discount the importance of education [and] just going through that process, having a university degree. Education taught me a lot of valuable lessons in terms of work ethic. My sports background taught me how to compete and thrive in a high-pressure environment. I actually welcome pressure. One of the adages for me when something isn't going right in life is, “What's the worst that can happen from here?” Usually, from there, you can make sense of it. If you can accept the worst case and build it on from there, you're going to be fine.

For young people who think owning properties is an expensive business, what advice would you offer for becoming property owners? I do empathize with a younger generation trying to get into real estate because prices have really gone up exponentially over the last few years. My words of advice are that real estate is the best long-term wealth creation vehicle, and it’s never going away. //

Summer 2022 the EDGE

the EDGE Spring 2022