1. How much cash is required to participate in the Kensington Manor investment opportunity?
It depends on the purchase price of the specific condo unit that you choose and the amount that you would like to mortgage. A typical cash investment would be around $25,000 with a 80% loan to value (LTV) mortgage, or as little as $13,000 with a 90% LTV mortgage.
2. Do you offer mortgages, or do I have to qualify for my own through a mortgage broker or my bank?
Prestigious Properties does not offer mortgages, however we work very closely with a mortgage broker that we will recommend to you. You will have to qualify for the mortgage on your own, but we will help to make the process as simple as possible for you.
Prestigious Properties does not guarantee monthly rent, however if you participate in the rental pool then you will receive a portion of the rental pool rent every single month, even if your unit is vacant.
4. What kind of monthly fees should I expect?
All of your utilities are included in the condo fees, except electricity; however the tenant pays for the electricity as part of their lease agreement. Additional monthly fees that you should expect are: mortgage payments, property taxes, condo fees, rental management fee (optional), additional insurance (optional).
5. How does the optional rental pool work?
The rental pool is optional, but a great option for investors. It works as such; all of the monthly rent is collected and pooled together for the unit owners participating in the rental pool, and then divided out based on the unit factor (square footage) of your unit. The great thing about participating in the rental pool is that you will receive rental income every month, even if there is not a tenant in your unit. Please contact Laidley Management for more information on the optional rental pool.
6. Can I rent my unit on my own?
Absolutely, but your unit will not be part of the optional rental pool.
7. Are there already tenants or do I have to lease the unit myself?
There are already tenants residing in the building and the management company will continue to provide tenants for the building, however, if you would prefer to find and manage your own tenant that is also an option.
8. What is the vacancy rate in Camrose?
As per the Fall Canada Mortgage and Housing Corporation (CMHC) Fall 2007 report, the vacancy rate for one bedroom units in Camrose is 4.2% and the vacancy rate for 2 bedroom units is 2%
9. What is the typical tenant profile in this building?
There is a wide variety of tenants in the building. Everything from students, to elderly, to small families. All of the current tenants and any future tenants have to go through a thorough application, credit check and reference check to qualify as one of our “Prestigious Tenants”.
10. Who manages the building? Will they continue to manage the building after you sell the units?
The building is managed by Laidley Management. Laidley was founded in 1978 and has accumulated over 30 years of property management experience with their office in Edmonton. Laidley Management offers a broad range of expertise in the residential market and presently manages over 4000 residential units. The company also has a strong reputation for delivering the highest calibre of professional services and support to property owners.
11. Will Prestigious Properties still be involved in the building after they sell the units?
Prestigious Properties will still be involved in the project as we are keeping a number of the units because we know what a great investment it really is.
A condo board will be established within the first year of the new condo owners taking ownership. A condo board was not required prior to this time because there was only one owner of the units, Prestigious Properties.
13. How do I receive the rent each month?
You have a choice of having your monthly rent automatically deposited into your bank account or receiving a cheque each month from the property manager. If you choose to have the cash automatically deposited into your bank account every month, the property manager will need a void cheque for your account details.
The building was constructed in 1975.
Camrose is approximately 100 kilometers south east of Edmonton , Alberta
16. What is the Economic base of Camrose?
Please see the Market Details section of the website at www.prestprop.com/kensington.
Repairs and maintenance of the interior of your unit will be at your cost, however the management company will take care of coordinating the repairs for you. Truly an armchair investment!
18. When will improvements to the building be done?
Improvements will be done as per the condo board’s decision on an annual and ongoing basis. The condo board, with the assistance of the property manager, will make capital expenditure decisions based on the recommended timeline in the reserve fund study.
19. What improvements have Prestigious Properties done to the building since they purchased it?
Since the building was acquired, significant improvements have been done to the exterior landscaping, the exterior siding, a roof was replaced on one of the two buildings , improvements to the hallways and common areas, new balconies, secure doors to entrance way, interior renovations to many of the units, in addition to ongoing repairs and maintenance. Prestigious Properties has also put aside $125,000 to have the parking lot paved within the near future at the condo boards discretion.
20. Are all of the units renovated?
No, not all of the units are renovated, but approximately half of the units are renovated, and the others are in their original condition.
21. What improvements have been done to the renovated units?
Renovations have varied in each unit depending on the previous state of the unit. Typical renovations in the units include new laminate hard wood floors, new linoleum floors in the kitchen and bathroom, new appliances, new kitchen cupboards and countertops, fresh paint, and new lighting fixtures.
22. Can I purchase an un-renovated unit and upgrade it later on my own?
Sure, but if you are participating in the rental pool you will have to request to leave the rental pool to renovate your unit, and therefore would not receive rental income. When your renovations are complete, a tenant will have to be placed in your unit before you can rejoin the rental pool.
23. Who looks after the window’s cleaning and replacement?
The windows will be cleaned annually at the discretion and expense of the condo association. The property manger will be responsible for ensuring this work is completed.
Currently all of the windows and doors are in fine working order, and will be replaced as the condo board sees fit.
24. Can I expect any additional “cash calls”?
A cash call may be required if there is not enough money in the reserve fund to cover required capital expenditures to the common areas of the property. Prestigious Properties has funded the reserve fund with $73,500 as per the recommendation in the Reserve Fund Study completed by a third party and has funded an additional $125,000 for the paving of the parking lot. Therefore, we do not expect any future cash shortages in the reserve fund.
If there are required repairs or maintenance for the interior of your unit, you will be responsible for the costs of this maintenance (ie. Carpet, paint, appliances, etc.).
25. Do you have a reserve fund? Is it properly funded?
Prestigious Properties has funded the reserve fund with $73,500 as per the recommendation in the Reserve Fund Study completed by a third party and has funded an additional $125,000 for the paving of the parking lot. If you would like to view the reserve fund, it is available on the Kensington Manor website under the documents section or is available upon request.
26. Do I have to get insurance for my unit?
Basic insurance is covered in your condo fees, however some investors may decide to get additional insurance. Please consult with your insurance broker to ensure that you are comfortable with the coverage of your unit.
27. What appliances are included in the unit?
The unit includes a fridge and stove.
28. Are pets allowed? What kind, what size?
As per the condominium bylaws, no pets are allowed except for; aquarium fish and caged small birds. Please refer to page 34 of the bylaws, item 57.
29. How many parking stalls are included with the unit purchase?
There is one stall per unit, and 4 visitor stalls for the entire property.
30. Can I view the unit I am interested in before I purchase it?
Sure.
31. If I don’t have time to come for a viewing, are photos of the unit I am interested in available?
Yes, photo’s can be made available within a couple days.
Certainly. If you introduce this investment to anyone who then purchases a unit we will pay you a $1,000 referral fee.
33. How do I qualify for a discount?
Often, we like to reward our current investors with a discount for investing again. If you are one of our current investors and purchase within the first weeks of the offering you will likely qualify for a discount. If you are not a current investor you may qualify for early bird discounts.
34. How do I get out of the investment in the future?
We recommend holding the investment for a minimum of 5 years. You decide when to sell and, if you wish, we will recommend some realtors in the area that may wish to sell your unit for you.
35. Will you have more projects like this offered in the future?
Our next project will likely be offered in Fall 2008 and/or Spring 2009.
36. What’s the next step if I would like to reserve a unit?
A signed Unit Reservation Form and a deposit cheque of $5,000 are required to reserve your unit. Please contact Robin Hobbs at 403-678-3330 or robin@prestprop.com to make arrangements.
37. Can I purchase the unit in my company name?
Sure, as long as your company can qualify for a mortgage.
38. Is this a risky investment?
Any investment has an element of risk, however Real Estate is known as a much safer investment than individual stocks. With Real Estate, you have a real asset that you can touch and you can insure in case of fire, damage, loss of income, etc. There is a reason you cannot insure a stock, they are far more risky.
Some would argue that real estate is risky because you could lose more than your initial investment because of the leverage. For example if you purchase a $200,000 condo with a $50,000 down payment and a $150,000 mortgage you could lose more than you initial $50,000 as you are also responsible for the $150,000 mortgage. This is a highly unlikely scenario.
39. What is better: a cheaper un-upgraded unit or more expensive upgraded unit?
Either unit is good choice. Depending on your preference there are a few things go consider:
1) A renovated unit will be more of an armchair investment; in the sense that you should not expect to have to do upgrades to the unit for quite some time.
2) An un-upgraded unit has a lower purchase price and will earn the same amount of rent, but you as the owner will be responsible to pay for a new fridge (for example) if one is needed in the future.
1) A renovated unit will be more of an armchair investment; in the sense that you should not expect to have to do upgrades to the unit for quite some time.
2) An un-upgraded unit has a lower purchase price and will earn the same amount of rent, but you as the owner will be responsible to pay for a new fridge (for example) if one is needed in the future.
