Thursday, 31 January 2013

Canadian and Montreal Real Estate; And Are We at A tipping Point

listen to the show aprx. 1hr

JULY 18TH 2012

Canada real estate market specifically Montreal , are we at a tipping point and why are Israeli investors buying real real estate in Atlanta Georgia?


Canadian Finance Minister Jim Flaherty’s efforts to avert a housing
bubble is speeding the end of a six-year streak of outperforming the
U.S. economy. Changes implemented in March, include shortening the maximum length of government-insured mortgages to 25 years from 30 years to quell demand for new homes and curb record household borrowing that the finance minister of Canada said has become a greater risk to the economy than slowing growth. The rule changes make it harder for some buyers to qualify for mortgages.
I believe that the consumer is all tapped out, and we are seeing
fiscal restraint in Canada, therefore the housing market has no room
to grow or has slowdown.

Canada’s economy is projected to grow by 2.1% this year, according to economists surveyed by Bloomberg, down from a pace of 2.4% in 2011 and 3.2% in 2010.
U.S. growth will accelerate to 2.2% from 1.7% last year, economist’s project; marking the first time since 2005 Canada has lagged its biggest trading partner the United States.

Five Canadian cities - Vancouver, Calgary, Toronto, Ottawa, and
Montreal - account for nearly half of Canada’s population.
Place Reignited as a Vancouver Skyline Icon with Lumenpulse

In Vancouver no other Canadian city (and few globally) exhibits such a disconnect between house prices and underlying fundamentals. It appears that perhaps this disconnect is starting to weigh on demand
for houses, with average resale prices falling 10 per cent on a
year-over-year basis since April 2012.
The key trend to watch for now in Vancouver is how sales will perform
relative to the inventory of existing homes on the market.
What will Toronto's skyline look like in 10-20 years? - SkyscraperCity

And in Toronto the real estate market is red-hot; once again it posted more-than-10 per cent year-over-year gain in April 2012. But the once-hot condo market has cooled with resale prices rising 2.8 per cent on a year-over-year basis, a trend I expect will persist. Resale prices in Toronto have outpaced fundamentals and a “cool off” period is certainly , long overdue.
 Toronto Skyline.

But that won’t happen until supply and demand return to more historic levels.
Montreal's Bell Centre, home of the Canadiens hockey team.

And in Montreal Canada’s second largest city often flies under the
radar in discussions of regional bubbles, but the fundamentals here
are somewhat concerning. On the supply/demand front, there is
currently substantially more inventory on this market than ever
before. What is saving the Montréal market has been a very strong
resale market that pushed the average price up 3.5 per cent in April
of 2012 . This is a market that needs demand to remain very robust as any hiccup in sales will leave an extreme imbalance in supply and demand that would pressure prices in short order.
"The residential real estate market was very active in the Montréal area, particularly in the suburbs, said Diane Ménard, Vice-President of the Board of Directors and spokesperson for the Québec Federation of Real Estate Boards (QFREB) for the Montréal area. She Said "The North Shore and Vaudreuil-Soulanges areas actually set new sales records in the second quarter of the year with 3,006 and 700 transactions, respectively, while sales in Laval and on the South

Shore of Montréal registered larger sales increases compared to the second quarter of 2011 with jumps of 17 and 16 per cent, respectively," she added.

In general The Island of Montréal posted a more moderate increase in residential sales at 5 per cent, with a total of 5,143 transactions in the second quarter of the year.

Today on the money and business show live in our headquarters in
Montréal we will discuss with Real estate experts if we are a tipping
point in Montreal real estate market ,and we will go live later on the
show to Atlanta why international investors specifically Israeli
investors are investing in Atlanta real estate market.

My name is Samuel Ezerzer, your host to the Money & Business show on Radio Shalom, CJRS 1650 AM. Thank you for tuning in live with our
Business studios headquarters in Montreal, the financial capital and
the home to the greatest hockey team, the Montreal Canadians. We have another great show for you today and as always, you can call if you have any questions, comments, or criticisms on today's topic. Please
call us direct at 514 738 4100 ext 200 or email me at if you have any inquiries. You can also visit our website at – all our shows are archived there.

Today topic , Canada real estate market specifically Montreal , are we at a tipping point and why are Israeli investors buying real real estate in Atlanta Georgia?
Montreal French Super Hospital CHUM Keeps On Growing |

Joseph  Marovitch  a real estate broker for Royal lepage ,
Since 2009 Joseph has enjoyed a successful career in Real Estate, over
25 years of experience in the public sector, Joseph has garnered a
substantial wealth of contacts that allow for excellent exposure to
your property. Joseph Marovitch, former owner and director of Camp Maromac , he has worked with corporations such as IBM, ID Foods, RSM Richter, John Molsen School of Business, BGK Accountants,  Rio Tinto Alcan and several schools such as ECS, Kuper Academy, Kells and more.

                           Sam ezerzer , Joseph marovitch, Amram ezerzer , Marc ezerzer

Amram ezerzer president at Mansfield Investment, LLC
He focus on acquiring distressed real estate and distressed real
estate debt Amram is a disciplined, value investors with an emphasis on intensive credit and
market research.

Marc Ezerzer real estate broker since 2006
groupe sutton - centre - ouest inc. , he has extensive experience in
family and income properties.


The financial crisis particularly in the United States and Europe was
devastating for real estate investors or owners as prices collapsed
and some areas have yet to recover, how did Quebec real estate
perform, compared other major Canadian cities?

A house that’s been on the market for one year with three price
reductions gives a whole different message than a house that’s been on for 6 month with no price reductions; are we starting to see a glimpse of that in this market, sellers reducing there price?
 Royal LePage House Price Survey and Market Survey Forecast

Royal LePage Real Estate Services' House Price Survey and Market Survey Forecast released July 10th show a gradual increase in prices over the last twelve months for all housing types surveyed.
Historically low mortgage rates, new job creation and consumer
confidence in the economy and the housing market, have led to price increases. Do you expects the local housing market to be more balanced for the rest of the year and house prices to stabilize due to a gradual increase in inventory over the coming months in the Montreal area?

Changes to mortgage rules introduced by federal Finance Minister Jim Flaherty over the past four years will keep some home buyers on the sidelines, particularly first-time buyers, who account for up to half the transactions. Is the real estate market in Canada at 'tipping point,’?
Development, The Redbourne Group had to say at the Montreal Real Estate

Discover Why Montreal is Undergoing a Resurgence in Growth and Popularity

Drawing upon the experience and the success of similar events in Vancouver, Calgary, Edmonton, and Toronto, the 14th annual Montreal Real Estate Forum will be a powerful, information packed event examining key issues, challenges and opportunities in one of Canada’s major markets.
Chaired by Bill Tresham, President, Global Investments, Ivanhoé Cambridge, the Forum will feature a strong program that has been developed by a committee of industry executives. Over 740 real estate executives attended the 2011 conference.
The program will offer a wide range of speakers, presentations and panel discussions on the economic drivers responsible for the city’s growth; the major trends in the office, industrial, retail, apartment and land markets; the opportunities for development activity; and key infrastructure and growth management initiatives and strategies.

UDI Québec, the leading real estate association in the province, is the principal sponsor of the Forum.
The annual UDI Real Estate Evening will be held on the prior evening of the Montreal Real Estate Forum. Considered to be the Montreal real estate community’s largest annual social event, the Real Estate Evening is a very well attended strong opening function for the Montreal Real Estate Forum.

The conference will be targeted at the interests of real estate executives, brokers, developers, investors, asset managers, and other professionals active in the acquisition, leasing, financing, management, and marketing of office, industrial, retail, and multi-unit residential real estate.
The Montreal Real Estate Forum will help you determine what strategies to follow for the remainder of 2012 and beyond.
Note that the registration fee is significantly lower than other comparable events and will fit virtually every organization’s or individual’s budget.
We sincerely hope you will take advantage of this informative event.

Which areas in Quebec are overvalued and which areas in Montréal have yet value to buy a property?

Cadillac Fairview Corp. Ltd.'s decision this week to build downtown
Montreal’s first billion dollar privately financed office tower since
the early 1990s.Deloitte and touch  said Friday it will lease at least 160,000 square
feet as anchor tenant in Cadillac Fairview’s 26-storey,
514,000-square-foot office tower, to be built between Windsor Station
and the Bell Centre by 2015. By the way Deloitte Tower would be
Montreal’s first downtown tower built with LEED platinum, the highest
certification possible.
Deloitte will be giving up about 180,000 square feet of space at Place
Ville Marie in 2015. Meanwhile, Place Ville Marie tenants Royal Bank
will be letting go of just over 100,000 square feet of space in spring
2013, and Via Rail Canada has been shopping around for 75,000 square
feet of space.
So Despite years of announcements by developers eager to build new
towers, limited growth, a lack of large firms in Montreal, and
comparatively inexpensive rents at Montreal’s top buildings, tenants
had little incentive to lease spaces in new construction
So Joseph This will force landlords to retrofit their buildings in
Montréal and driving up rentals,” ?



Bruce Ailion has been a realtor and associate broker with remax since
1979 in metro Atlanta  , he has extensive knowledge and experience to
the real estate market in Atlanta; he has a bachelor degree in in
marketing a masters in real estate and urban affairs and a doctrine in
law. , his clients include the nation’s largest banks, the US
department of veteran affairs and the federal deposit insurance
corporation. As well he has been representing foreign investors ,
specifically Israeli investors who are seeing value in Atlanta
property market.
770-977-9654 between 4:40 pm to 5pm

-Presently What is the state of the real estate Market in the South
Eastern United States particularly in Georgia ?

-Atlanta is a business city, with nearly 5.8 million people in the
metro area; Atlanta is the 9th largest metro area in the US and is the
central location and economic Hub of the South Eastern United States.
What does Atlanta have to offer?

-How can investors become involved with investment in Atlanta real
estate market ?

-Atlanta has a large Jewish population, over 120000 Jewish people,
Most are in to Atlanta because of the business and educational
advantages. The Atlanta area is now considered one of the top 5
centers in North America for Israeli company activity with over 45
Israeli companies establishing their US or regional headquarters. Why
are Israeli investors attracted to investing in real estate in the
Atlanta region? And Why has Atlanta become such a hot location for
international investment?

Bruce's Interview with Radio Shalom CJRS 1650AM - YouTube
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Atlanta Property FOR SALE -Why Buy Property in Atlanta,

Historically investors have focused on Gateway US Cities like New York
City, Los Angeles, San Fran Cisco, Miami and to a lesser extent
entertainment cities like Las Vegas, Orlando and New Orleans.
 Canadian investors favored warm climates like South Florida and
Phoenix. Atlanta is a business city, with nearly 5.8 million people in
the metro area; Atlanta is the 9th largest metro area in the US.
Atlanta is the central location and economic Hub of the SE United

 It has the 3th largest concentration of fortune 500 companies, with
12 national headquarters, companies like Coca Cola, Delta, UPS, Home
Depot, NCR, 487 of the Fortune 500 companies have regional or national
headquarters in Atlanta.  Over 2800 international firms representing
60 countries have significant operations in Atlanta.  Atlanta is the
home to 65 consulates, trade offices and foreign chambers of commerce.
  While Atlanta is known for large business, the favorable business
climate has been beneficial to small business.  Of the 66500 business
in Atlanta 97.5 are classified as small businesses.

Atlanta is known for its unique transportation and logistical
advantages. Hartsfield Jackson International Airport is constantly the
world’s busiest airport with over 90 million passengers a year, 2700
daily departures and arrivals per day non-stop flights to over 80
international markets. A new International terminal was added at a
cost of 1.3 billion dollars.  Four fifths of the US population 119 of
the 150 largest US market can be reached within a 2 hour flight from
Atlanta’s airport..
 In additional to Hartsfield Jackson, there are 20 regional airports
scattered throughout the Atlanta Region Atlanta is one of only 4 metro
markets with 3 interstate highways converging in the city Interstate
20, 75 and 85.  There is a tremendous linkage by rail to the Port of
Savannah the 4th busiest port and fastest growing port in the US.
There are 14 all cargo air carriers, rail and trucking intermodal
transportation networks.  Trucks originating in Atlanta can reach 80%
of the US market in 2 days or less.

Atlanta has a very diverse economy, no one market segment dominates
the local economy.  Atlanta has a work force of 2.6 million, 34% of
the population 25 years or older have a bachelors or higher degree and
the average employee age is 39 years old.  Georgia is a right to work
state, you cannot be forced to join a union.  Georgia has the 3rd
lowest unionization rate in the US just 4%.
Atlanta is a great location for education.  There are 57 colleges and
universities in Metro Atlanta enrolling 280000 students.  Best known
for Emory and Georgia Tech, both recently recognized in the top 20 in
and top 100 in the world.  These and other schools provide both an
educated students and research partnerships for business. Atlanta
consistently ranks in the top 5 metro areas for higher education
research with over 1 billion annually. Atlanta is also home to 3
historically African American private colleges, Morehouse, Clark and
Spellman Universities.

 Atlanta offers a very low cost of doing business.  Low commercial
space, housing, taxes, labor costs consistently allow Atlanta to rank
among the most competitive economic environments for doing business in
the US.  Atlanta offers one of the highest quality of life locations
in the US, with a diverse population base, stable political system,
favorable climate with 4 distinct seasons, an active arts and
entertainment community, many museums, parks, every professional
sports team, Atlanta offers something for everyone.
Atlanta is a major wholesale exhibition center.  The Atlanta
Merchandize Mart/Georgia World Congress Center offers over 3 million
square feet of exhibition space accommoding the largest trade shows in
the US.  We provide the largest concentration of permanent showroom
space in the US. There are over 100,000 hotel rooms within a 10 block
radius of the Atlanta Mart.

Healthcare is a significant segment of the Atlanta market with more
than 98000 healthcare practitioners and 37000 support personnel.
There are more than 50 local hospitals with over 12000 beds.  Atlanta
is headquarters for the Center for Disease Control, the American
Cancer Association, Arthritis Foundation, CARE USA,
Atlanta has a large Jewish population, over 120000 Jewish people
called Atlanta home in 2006, the 9th largest Jewish population in the
US up from 17th in 1996.  31% of the Jewish household moved to Atlanta
between 1996 and 2006 making Atlanta one of the fastest growing Jewish

Most come to Atlanta because of the business and educational
advantages. There is a very active American-Israeli Chamber of
Commerce that serves 500 members in the SE United States.
 The Atlanta area is now considered one of the top 5 centers in North
America for Israeli company activity with over 45 Israeli companies
establishing their US or regional headquarters. Atlanta is also home
to an Israeli Consulate.

Atlanta has become a hot location for real estate investment.  Atlanta
has consistently been attractive to businesses for the reasons above
and these are attractive reasons for real estate investors.  The focus
on Atlanta has heated up because Atlanta real estate offers superior
returns to investors due to the current highly distressed pricing.
Unlike many metro markets, Atlanta has no natural barriers or boarders
to growth.  There is no ocean, lake, mountain range, or international
boundary that restricts growth.

That helped moderate prices.  Atlanta added one million new residents
between 1980 to 1990, another million between 1990 to 2000 and a
million more residents between 2000 to 2007.  With this rapid growth,
housing prices remained moderate and did not spike to the same degree
as markets like Florida, California, New York and Nevada.
 Atlanta’s bubble was not in pricing but in construction.

In the price bubble markets despite dramatic declines, prices remain above
their early 2000 price levels.  Atlanta’s prices in most markets are
below 1998 levels and our clients are frequently purchasing older
properties those built in the 1980s below the early 1980 sale prices.
This is unprecedented, unbelievable, truly a once in a life time
opportunity. As businesses began shedding jobs, many of these last
hired people were the first fired, and many of these people purchased
new homes in that 2002-2006 period.  There was a 50 month supply of
new homes when job growth stopped in Atlanta in 2008.  These homes can
be purchased at 60-70 per cent off their early to mid-2000 prices.
Approximately 50% of their replacement costs.

  It is not unusual for an investor to buy a home in an attractive
neighborhood 10-15 miles from the central business district in the
40’s that sold in the 150’s in the mid 2000’s.  This home can be
renovated to like new condition for under $15000 and rented for an
average of 1000 per month.
This results in a 8-11% net cash on cash return and the potential for
100% or more appreciation when markets recover. Many ask why?  One
pillar of the location economy, Atlanta’s large corporations shed jobs
quickly in 2007/2008 they have been slow to rehire.  Construction
historically was a large sector of the local economy collapsed from a
peak of nearly 80000 new residential units built to a low near  6000
in 2010.  From 1990  to 2007 Atlanta was either #1 or #2  in housing
Building and construction which accounted for 15% of the market
dropped to under 5% with a rippling effect throughout the economy.  A
third pillar of the local economy, small business typically obtained
funds to start and expand their businesses by borrowing against their
homes.  With dramatic price declines, and highly restrictive lending
criteria, this source of funding for small business growth
disappeared.  The result, Atlanta has experienced higher than the
national unemployment for 50 plus months.

 Housing prices have declined further and faster than other markets,
and created an unprecedented opportunity for value investors.
Georgia is a title state which allows lenders to foreclose quickly
without having to take the borrower to Court.  Georgia has typically
been in the top 5 in foreclosure activity.  The issues of Robo signing
and having to prove the borrower is in default and the lender is
entitled to foreclose in court is not required, simply providing a 30
day notice of default and advertising the sale at the court house
steps for 4 consecutive weeks is all that is needed for a lender to
foreclose.  Metro wide, 35% of homes are under water.  Looking in
those newer communities Built in the 2000-2008 period it’s more like

The only sales are REOs and Short Sales.  Although there should be a
line around the block to buy these homes, many have been vandalized
and require paint, carpet, appliances and HVAC making them
unattractive to the typical home owner.  Lenders are reluctant to lend
on properties below $50000, or needing renovation, limiting to pool of
potential buyers to cash investors.  Not know as big spenders.  For
those investors who understand the underlying value of the Atlanta
Market, and the reality that buying at 50% or less of the replacement
cost will result in a 100% gain stand to make huge profits. In many
markets prices have bottomed and started up.

This was especially true in the March to May period.  Warren Buffet
says real estate is the best investment out there and if he could buy
100000 homes he would.    In that period employment improved, it
looked like a European debt deal was a reality.  Our investors were
often out bid at 10-20% above list price.  Growing concerns have
erased much of that premium and we are successfully purchasing at very
attractive prices we experienced in the 2009 to early 2012 period.
 Rents have risen and remained stable.  A number of statistical
providers indicate Atlanta offers the best investment returns in the
country when looking at purchase price to rental rate.

 This has caused a boom in the Atlanta apartment market with prices increasing
20% plus, cap rates on the most desirable properties have fallen below
4% going in, with the hope of rental increases increasing yields.
Apartment investors have expressed confidence in Atlanta’s growth,
there were 1725 units started in 2010, 4100 units started in 2011 and
multi-family data provider The Reid Report is predicting over 10000
new starts for 2102.

                                               Samuel Ezerzer
Radio Shalom CJRS1650AM
Money & Business Show
514 738 4100 ext 272