Topic: How To Invest

What is Pat’s commentary for the week of December 20, 2016

Article Excerpt

Dear Inner Circle Member, A friend, Mr. S., stands to make a large profit on his home, and he wonders if he should sell. A lot of homeowners in Toronto and the surrounding suburbs are asking themselves that question, but my friend’s case is different. He bought his house 15 years ago for $325,000. Similar houses six blocks away are now worth perhaps $1.1 million, but his may be worth considerably more. The value of his home went up faster than average because his area has been re-zoned for high-rise condo construction. Re-zoning can have a huge impact on real estate prices. The land under the house now provides a site for one house. But if a developer assembles a parcel of five or more adjacent houses, he might be able to win approval to build condo apartments on the site, depending on the condo plan and the number of storeys the authorities allow. This potential “change in use” and the value it…