To say COVID-19 to get bad for small businesses would be the actual understatement, but mixed-use resort properties that will invariably hit the market through the economically calamitous nature around the pandemic could help boost real estate market supply.
“There’s a hidden jewel: mixed-use commercial properties regarding downtown Hamilton that might be able to be converted into residential properties, ” rumoured Sandy MacKay, founder in addition CEO of MacKay Realty Network. “A lot of company owners own small mixed-use estates that aren’t excited about working out from their offices or that they are shutting their businesses, and / or maybe going fully remote, and others properties have potential for readily available conversion. ”
The only difficulty to overcome, in addition to literally finding such properties, is truly Hamilton’s slow rezoning authorizations, verifications, and certifications process— not out of character for the region. Still, MacKay says it would be a worthwhile endeavour.
MacKay Realty Network works with investors around the GTA, although it favours Hamilton, to find cash-flowing properties primarily in the multifamily residential sector. MacKay says that properties with at least two units carry easily, but the sweet spot is properties with five to 50 units.
“The last number of years, Hamilton’s downtown core has been booming and such a great area to be investing in, especially with a lot of renovation projects that are happening there,” he said. “There’s been a great commercial push there in the last five-plus years, although not so much in the last year because of the pandemic—but that’s not unique to Hamilton; it’s happened all around the world—and multifamily residential is our bread and butter because it’s the area in which we see the most potential. We see a lot of opportunities in the bigger buildings that have over five units, even up to a 100 units, which are harder to find. If you can navigate the difficult tenant situations that come with larger buildings, it’s a great payoff, and fortunately, our property management company, Executive Properties, can help with that.”
The rules governing Ontario rentals, including the Landlord and Tenant Board, favour renters, and the COVID-19 pandemic has been particularly arduous for investors stuck with problem tenants they’re legally < a href="https://www.canadianrealestatemagazine.ca/news/delinquent-tenants-taking-advantage-of-eviction-freeze-ola-334499.aspx"> prohibited from evicting . Moreover, when evictions will proscribed, there will be a massive backlog to contend with.
“Landlord burdens can turn into a great magnet to the right person, ” recounted MacKay, adding that The company Realty Network leverages an vast contact list to help the device’s clients find those sites. “It’s definitely harder get right now, and not all that credible to find, but if you get a de dos pisos and triplex, or a acquiring with even more units, you’ll definitely find properties that bear themselves and mortgages along with others expenses associated with the properties. ”