New Homes
New Homes
Not for the faint of heart
The old saying goes: It takes money to make money. And nowhere does that apply more than investing in undeveloped real estate.Whether it's to purchase an empty lot to build just one home to sell or to buy a large tract of land, intending to sell when developers come calling, an investor needs cash, experts say.
"It's not for the faint-hearted," says real estate consultant Wayne Penner, an agent for Royal LePage Dynamic.
"It can be a lot of fun. It can be rewarding, but you have to have a strong stomach."
A novice real estate investor has three different options when considering investing in undeveloped land: Large-scale development, small-scale development and speculation -- sitting on the land and selling when it goes up in price.
Buying a large tract of land to develop commercial real estate, several homes or a condominium project is amongst the most costly, requiring experience, and often presents the most headaches.
"The problem is with all the red tape and things that go with trying to develop it within the city," Penner says.
"You have to have it rezoned. You're going to have to have an extensive plan. You're going to have public hearings. You're going to be fighting with residents in the area who may not want the project there because all they've seen is grass, meadow and trees."
On average, a developer will spend more than a year of planning, negotiating and ensuring all the zoning and permits are in place before even a shovel touches the ground.
"On top of that, what are the construction costs, and what are servicing costs? This is a full-time job," says Penner, who has 35 years of experience in the Winnipeg market, and is currently working with one client who is a novice developer.
"If you bought the land, of course, time is ticking and interest rates are OK, but the bank needs to be fed."
For most average, middle-class Winnipeggers, developing land on a large scale is simply beyond their financial means, says Gerry Campbell, executive vice-president of sales and service with the Assiniboine Credit Union.
Often millions of dollars are involved even for the smallest condominium project.
"That's risky. It takes a fair bit of resources," he says, adding he does not see many clients engaging in this sort of real estate venture.
"They have to have a lot of financial resources behind them if they're looking for a larger tract of land."
On top of that, a would-be developer may be on the hook for infrastructure.
"There has to be the sewer, the water, the road, the hydro. That's a big capital investment. So, do they have wherewithal behind them to take that sort of thing on?"
Mortgage broker for Invis Rosa Bovino says most lenders would want anything from 35 to 50 per as a down payment from the buyer in order to finance the venture.
"We have several clients looking to purchase land, some to be subdivided and sold," she says.
"A lot of people don't have they means of coming up with that kind of money."
For the novice, Campbell suggests starting out small.
"Let's say I wanted to buy a vacant lot on the street that I already live on, and just want to put a house on it and sell it to someone else, what we would need is 35 per cent cash into it," he said, adding one way to fund the down payment would be to use the equity built up in your home.
Though it can work, and become the first step onto bigger and better projects, it also has real risks. It can take time to build the home, which means during that period, the developer must carry the cost of both the mortgage's and line of credit's interest payments. Property taxes are another expense, and construction costs in a tight market for both supplies and labour are perhaps and even bigger concern.
The builder must also find a buyer. Although the market is hot now, it may not be a year from now.
The stakes are high: The builder's own home is on the line, Campbell says about using home equity to back the project.
"We would likely put what we call a caveat against the house -- kind of a lien against it -- so that we would be covered if they were unable to repay," he says.
"If they couldn't pay, we could force them to sell the house to recover our funds that way."
As risky as that may seem, it pales in comparison to real estate speculation.
"Speculation is the most volatile aspect of real estate investment," says Sandy Shindleman, president of the commercial real estate company, Shindico.
"There's no income stream and, typically, to bring the property to an income stream potential, either you have to make a substantial additional investment, or you need to sell it."
Shindleman, whose company does provide consultation services to people looking to purchase and develop land for commercial use, says many people have bought land in the past 60 years on the edge of Winnipeg, hoping to sell it when developers came calling but, instead, found little success.
A buyer must also know that speculation takes time and patience. More often than not, it involves holding on to the land for 10 to 20 years.
"You have to be able to understand what is in the immediate path of development, and what political issues at the municipal or provincial level might impede the development of the property."
It also requires a good grasp of regional economics. The job market ultimately will drive development. The more jobs available in a community, the greater the need for housing and services associated with the growth of new communities.
"It's not the first thing they should try," he says, adding speculation does have one advantage over other forms of real estate investment.
"It's certainly easy to manage if there's no rent and no tenants. It's simply a matter of cutting the grass and making sure you have liability insurance."
Above all, as with all forms of real estate investment, the novice should seek advice. Talk to a banker, mortgage broker, the city's planning and development department and real estate consultant before spending any money at all.
"You have to have your eyes open when you go in because there's always that chance that things could change," Campbell says.
"Can you accept the consequences or ride it out if the market has a change of pace?"
Quick tips
for investing
in bare land
Start out small: Buying one lot for single-family use is often all that the average investor can afford and should be willing to risk.
Experience needed: If you don't have it yourself, seek it out before spending any money. Real estate agents, your bank or credit union, the City of Winnipeg, mortgage lenders and even developers are valuable sources of information.
Greater profits mean higher risks: Investing in undeveloped property is the riskiest of all real estate ventures. It's also costly. Ensure beforehand you are aware of what you stand to lose if it doesn't work out as planned. The bigger the investment means the more you stand to make, but you also stand to lose more -- if not everything.
New Homes
Sit back and relax
To many seniors, retirement means retiring from work, not life.More than ever, today's retirees lead an active lifestyle. However, with retirement also comes the desire to come home to a place that doesn't require endless hours of upkeep -- yet offers space and style. Enter Sturgeon Creek II Retirement Residence, 707 Setter St., in St. James (across from Grace Hospital).
"The concept here is that we will present you with the finest amenities and services to enrich your retirement years," executive director Terri Hammerback said.
"There are 153 one- and two-bedroom suites here, and we provide all your meals, do weekly housekeeping, your laundry and offer a wide variety of activities. The suites are rentals; rent for one-bedroom suites ranges from $1,975 to $2,460, while rent for two bedrooms ranges from $2,975 to $3,200 depending on the plan you choose."
Although compact, both the one- and two-bedroom suites are well laid out, making the best possible use of space available. The two-bedroom display suite viewed measured in at 640-square-feet, yet felt much larger due its floor plan, high ceilings (over nine feet) and large windows.
A large, bright sitting area with fridge and sink, and two large bedrooms down the hallway -- each equipped with its own bathroom -- mean there is ample space, privacy and access.
"This suite represents one of seven different styles," Hammerback said. "They all have a fridge, sink and moderate amount of cupboard space -- many residents like to have breakfast in their suite. In most cases, we don't expect people will cook as all meals and snacks are included. The bedrooms are a good size, and have wheelchair-accessible bathrooms with features like low bathtubs, walk-in showers with handshowers and grab bars. There's also plenty of storage space with two double closets and a broom closet in two-bedroom units."
Single seniors can also rest easy knowing that the one-bedroom suites offer the room and creature comforts they need -- all at reasonable, all-inclusive price.
"We're proud of the way the suites have been designed. This one-bedroom unit (a 570-square-foot display model) is a very neat design. It's angular, with a huge storage closet at front, big sitting area with fridge, sink and cupboards, and a large bedroom that's adjacent to a large, user-friendly ensuite," she said.
Staff is on call 24 hours a day to ensure comfort and safety, she added.
"From what we've been told by residents, it's all a single person needs in terms of size and amenities. Smaller one-bedroom suites are also available."
While the suites at Sturgeon Creek II are eminently livable, the real focus at the facility is on what residents are going to do outside their home. Consequently, the complex has been finished with oak trim, eye-pleasing pastel colours and many amenities.
"The focus here is one providing an environment that encourages both relaxation and activity," Hammerback said.
"We have a full-time activity co-ordinator on staff, and there are amenities such as recreation and fitness rooms, a games and billiards room, hobby and craft room, movie theatre and shuttle bus for outings."
The residence features elements aimed at kicking back in style.
"There's lots -- a tranquil library, Internet lounge, main-floor bistro and coffee lounge with fireplace, spa, and beauty salon/barber shop. Services such as weekly linen and towel service, dry cleaning pick-up and delivery and laundry facilities on each floor really make for retirement living with a touch of luxury. When you eat lunch and dinner in the elegant dining room (which offers a separate dining area for parties or family functions), it feels like you're treating yourself," she said.
"And that's how it should be. People have worked hard, so they should enjoy themselves," she added.
With an excellent location, spacious and secure suites, and a host of amenities, active seniors looking for a new place to call home should consider taking a tour of Sturgeon Park II Retirement Residence.
lewys@mts.net
New Homes
Fits like a glove
We've all driven by them at one time or another -- a new home that catches your attention because it captures the essence of its surroundings perfectly.That's exactly the case with 6 Prairie Oaks Cove, a 2,466-square-foot Irwin Homes bungalow show home in The Oaks (west on Portage Avenue, turn south on Camp Manitou Road). A combination of superb location, thoughtful design and carefully selected finishing materials -- and colours -- has created a home with oodles of wow factor.
It's also a design that does a masterful job of inviting the outdoors indoors in a tangible way -- a very good thing, considering the home sits on the banks of the Assiniboine River.
"That's what happens when you put a bank of five floor-to-ceiling windows in the great room," says Irwin Homes' marketing representative, Sutton Realty's Bill McGarry. "Then, there's a little jog between the sunroom for separation. Then, there's another group of huge windows that surrounds the sunroom's sitting area. All the windows and sunroom really take full advantage of a southern exposure.
"Sunlight floods into the kitchen and great room all day long; it's just a great place to hang out -- you can just sit back and enjoy the sunshine and great river view."
As tremendous as the (virtually) panoramic view of the Assiniboine River is, the interior finish further enhances the enjoyment that comes with being able to survey such a picturesque setting. Dark-stained alder hardwoods, cherry cabinetry and beige granite countertops combine to create a warmth that's at once rustic and modern; meanwhile, aspen details around the windows and a two-tone light chocolate/white tray ceiling make the kitchen/sunroom/great room an area that just begs to be inhabited.
"The owners didn't want the area closed in, which is why they went with the large windows, high ceilings and a sunroom -- the tiered ceiling design allows for the huge windows," McGarry explains. "The colour choices are also excellent -- they aren't too bright. If they were much brighter, you'd need to put sunglasses on. Everyone who's been in the home says the same thing -- it's so comfortable inside. That's one of the biggest compliments a builder can get. It's due to the way the design and materials come together so well."
Ah, the design. As easy as it is to build a luxuriously appointed home on a stunning river lot, it's another thing to conceive a design the fits the setting so seamlessly. At the same time, the home has to be livable, too.
"This home is as efficient as it is artistic," he says. "The kitchen is U-shaped to make it highly efficient. It's also partially walled-off for privacy -- when you walk in the door, you don't want to see everything," he says. "Features like a cooktop enclosed in charcoal-stained maple not only offer contrast and artistic flair, but pullout cupboards add efficiency. A dinette area for four takes full advantage of the river view, and a maple entertainment unit in the great room, with (beige) cultured stone fireplace, add practicality and beauty."
In fact, the richness of the interior makes you feel like you're part of Lifestyles of the Rich and Famous, Manitoba version; even the heat-register covers match the baseboards to add to the warm, luxurious ambience. Such attention to detail is hard to come by, but very welcome.
Another practical element of Irwin's design is the fact that the master bedroom is separate from the other two bedrooms. Thanks to this feature -- and an abundance of square footage -- it has been endowed with a huge picture window that provides a great portal through which to view the meandering Assiniboine.
There's actually so much room to burn in this quadrant of the home that the massive bedroom -- which offers plenty of room to create -- is united with the ensuite by a small foyer with its own walk-in closet and recessed area, which in this case has been outfitted with a table and mirror.
Finally, you get to the area that you've been waiting to see -- the ensuite. No disappointments here: warm and elegant with a (heated) beige ceramic floor, dark brown paint, a corner jetted tub (with big window overhead), the ensuite takes the home's already significant artistic flair up another notch. Evidence of that can be seen in the walk-in shower, where the brown ceramic tile entrance is given a dash of European flavour by a smart granite inlay.
"It's absolutely spectacular," says McGarry of the ensuite. "The colours, materials and amenities make it a spot where you want to go and soak away all your worries -- just as it should."
As if the unending river views, opulent ensuite and well-appointed main floor weren't enough, there's then a fully developed lower level to take in -- a walk-out lower level, no less.
"I've been in this business for a number of years and it's the best one I've seen. For starters, the rear wall is virtually a bank of floor-to-ceiling glass to maximize the river view," he says. "As great as that is, the layout of the lower level is just superb -- there's room for a pool table, wet bar, sitting room and television area with cultured stone gas fireplace. And that barely scratches the surface of what's downstairs."
McGarry isn't kidding; roughly the same square footage as the main level, the lower level also houses a powder room, separate media room with 70-plus-inch projection screen -- plus two huge bedrooms with four-piece bathroom in between.
"What can I say -- it's basically another house downstairs, plus there's all kinds of storage space. When it comes to lower-level designs, it doesn't get any better than this. In fact, the reaction to the overall design of the home has been tremendous. If we'd had four more lots, we would have built four more homes like this. It isn't often you see a home that puts so many great features together in such a beautiful, functional package. When you put together a home in such a great location with such an exciting interior and good flow, it's a design that people just love."
lewys@mts.net
New Homes
Spring into life
Spring is all about a fresh start. After a long winter, paint manufacturers and fashion designers are coming out with their new spring lines. This year, vivid colours and fresh designs are the order of the day.You can't help but smile when you see shop windows displaying bright yellow rain jackets and pink rubber boots, or flower shops overflowing with colourful tulips and daffodils. After a dark, colourless season, spring is finally on its way and it's loaded with interesting choices for home decor.
The trend is still on a 1970s retro kick, especially in children and preteen living areas. This fun, colourful flooring from Tarkett Residential (www.tarkett.com) is a new product called FiberFloor, which comes in many styles and colours. This particular pattern is cheery and fun, retro and fresh. Pink is hot this season as are retro accessories such as the hanging lamp shade, fun fur toss cushions and the beanbag chair/ottoman pictured here.
While it might seem daring to choose such a strong pattern on the floor, this particular room can be toned down some as the years progress. For the young girl, these bright colours might be fun, but as she grows into her preteens the decor might be too childish. By painting the walls in one of the less vivid colours from the flooring, such as the soft taupe for instance, and by toning down the accent colours and changing the accessories, you'd still have a fun room that is more grown up as your child grows. This particular floor pattern could take you from nursery to the mid-teen years of your little girl so don't be afraid to be daring.
Round and round we go
Circles and polka dots seem to be hot this season, in clothing and in home decor. It's partly due to the retro trend but I also think that polka dots are just plain fun. So, just as you might add a fun polka dot scarf to a boring pantsuit, so too should you add a little fun to your decor by throwing in the odd surprise such as a funky retro toss cushion or two. Just because we're older doesn't mean we should throw away our sense of fun. If you need an excuse, then use the kid's room as your youthful, decorating playground! You don't have to go polka dot crazy to make it work. Just a splash here and there, on a lampshade, toss cushion or as trim on kitchen curtains might do the trick.
Funky florals
Just like in the 1970s, funky floral patterns are still popular with the younger crowd. They are also growing in favour to grown ups. Very colourful wall coverings in retro floral designs are making their way into kitchens and bathrooms across the country. Daisy-shaped toss cushions and daisy motifs in general are a fun way to be part of the trend without a huge investment. Add these floral designs in your kitchen table linens, curtains and throw rugs as a fun way to brighten up your space this spring. The trick with the new floral trend is that bigger is better. No tiny feminine floral prints these days. It's all about large splashes of colour and pattern.
Wall colour
Paint colours are fresh and new this season. Celery green with violet accents is a hot look that is airy and bright. Turquoise is making a comeback in accent colours and works well with earthy brown tones. Green and brown have always been around but the new hues are enchanting and fresh. Colours reminiscent of bib lettuce, moss, river stones and sand are a fresh take on the standards. Citrus lemon and lime tones add punches of vibrancy especially when accented with hues of violet and red.
Asian influences are making their way back with rich spice tones, vibrant oranges and jade greens. When mixed with the new environmentally inspired neutrals mentioned above these rich tones really pop.
Old Hollywood
While not for everyone, the old Hollywood style from the 1930s and 1940s is still a hot trend. Black and white are the mainstay of this look but it's punched up with metallic finishes, mirrored surfaces and silver and gold highlights. The 'new' old Hollywood encompasses rich colours such as deep purple, navy and inky greys. For a dreamy romantic bedroom, this look might just fit the bill. It's all about luxury and decadence and being a little over the top. Who doesn't want a little glamour in their lives?
The biggest thing to do this year is to make a colour change. Out with the forest or hunter green and in with celery green. Out with beige and in with deep purple. A new colour will change your entire outlook and the rest will flow accordingly. Once you have a new outlook you'll look at the other room elements in a new light. It's like buying a new spring wardrobe. Treat yourself.
coliver@3web.net