Matthew Lee, Managing Partner matthew@volitionprop.com

(416) 937-5251

[Volition (vō-ˈli-shən): the power to make your own choices or decisions; free will.]

Tonight’s Meetup is brought to you by…

416.410.9905 clientcare@calumross.com

Looking to learn tonight

A challenge you're currently facing that you can't figure out how to get past

Your next action step in Real Estate Investing

20 MINUTE NETWORKING BREAK

Hottest Areas To Invest In Toronto! (And Why To Invest There)

1. Employment growth Employment growth is strongest in downtown Toronto

OBSERVATIONTD Economics

Since 2006, the Toronto region has seen a revival of population growth in its downtown core. While decades prior saw an exodus of baby boomer families heading towards the outer-suburbs for larger and more affordable housing, the last five years have seen a very different trend. Young echo boomers have now become a key demographic. These individuals and young families are choosing quicker commute times, proximity to amenities, workplaces and transit, locating themselves in the downtown core’s many mixed-use communities. Moreover, employers are now catching on to this recent trend and are increasingly locating themselves within the downtown core as well, hoping to attract this highly-educated, highly-skilled labour force. This also reverses a prominent trend of the last few decades in which businesses were choosing to locate in other municipalities in order to avoid the high commercial real estate costs of downtown Toronto.

Move over baby boomers

Chart 1 shows this dramatic reversal in population trends. The pace of population growth in the downtown core more than tripled in the 2006-2011 census period relative to previous cen-suses. It also outpaced growth in the four surrounding suburbs – the Halton, York, Peel, and Durham regions – something that has not happened since the inception of those municipalities in the early-1970s.

This shift was driven in large part by the growth in the echo boom population (Chart 2) which, as of 2011, is now the largest age group in Canada. Born between 1972 and 1992, these 19 to 39 year olds represent roughly one-quarter of Ontario’s popula-

TORONTO - A RETURN TO THE CORE

Highlights • Toronto’svibrantdowntowncorehasseenarevivalofpopulationgrowthoverthelastfiveyears,

driveninlargepartbyagrowingEchoBoomersegment.• Thishighly-skilled,highly-educated,andyoungpopulationistradingthelargerand(relatively)more

affordablehousingchoicesoftheirparentsforproximitytotransit,work,andamenities.• Thegrowingdesiretolocatedowntownhaspromptedawaveofcondodevelopment.Anincreasing

numberofbusinessesarealsoacquiringofficespaceinthecoreinordertobeclosertothisgrow-inglabourpool.Newbusinesscreation,employmentgainsandpopulationgrowthinthedowntowncorearenowoutpacingthatinthesurroundingsuburbs,reversingadecades-longtrendofexactlytheopposite.

• Overall,thesetrendsrepresentahugeopportunityfortheCityofToronto,butitdoescreatechallenges.Notably,thecity’salready-strainedroadandtransitinfrastructurecouldfaceadditionalpressure.

January 22, 2013

Francis Fong, Economist, 416-982-8066

CHART 1: POPULATION GROWTH IN THE GREATER TORONTO AREA

15.717.2

18.6

13.7

4.3 5.0 4.6

16.2

0

5

10

15

20

1991-1996 1996-2001 2001-2006 2006-2011

Peel,YorkDurham*,andHaltonRegions DowntownToronto**

*DurhammostlyreferstoAjaxandPickering,**Trinity-Spadina&TorontoCentre;Source:StatisticsCanadaCensusesofPopulation

%changeinpopulation

profile TORONTO - 1

Toronto Employment Survey 2014 REVISED August 2015

This bulletin summarizes the highlights of the 2014 City of Toronto annual Employment Survey, marking its 32nd consecutive year.

This information resource presents a picture of change in Toronto’s economy throughout the past three decades.

For more information, please visit us at www.toronto.ca/demographics/surveys

Highlights

• The 2014 survey counted

1,384,390 jobs. • Toronto's overall employment in

2014 is up by 1.5% from 2013 adding 20,850 jobs to Toronto's employment base.

• Full-time employment has continued to stay above the 1 million mark for the eighth consecutive year.

• Part-time jobs increased by 1.7% over 2014, totalling 320,860 jobs.

• The Office sector remains the largest sector in Toronto, accounting for almost 1 out of every 2 jobs.

• The Institutional sector was the fastest growing sector in 2014, growing by 4.9% and adding 11,010 jobs.

• The number of establishments surveyed in 2014 was 75,180, a net gain of 430 establishments.

• In 2014, there were approximately 562,370 jobs in Toronto's Downtown and Centres, comprising 40.6% of all jobs in the City.

• Etobicoke Centre was the only Centre to gain employment in 2014, adding 690 jobs and growing by 7.9%.

• North York Centre remains Toronto's largest employment Centre outside of the Downtown with 34,830 jobs.

• In 2014, there were approximately 398,750 jobs in Toronto's Employment Districts, accounting for 28.8% of jobs in Toronto.

• 83.2% of all Manufacturing sector establishments in the City reside in the Employment Districts, representing 92.1% of all Manufacturing jobs in Toronto.

• The number of Manufacturing sector establishments in Toronto remained the same over 2014 with no net loss of establishments.

1,000,000

1,050,000

1,100,000

1,150,000

1,200,000

1,250,000

1,300,000

1,350,000

1,400,000

1983

19

84

1985

19

86

1987

19

88

1989

19

90

1991

19

92

1993

19

94

1995

19

96

1997

19

98

1999

20

00

2001

20

02

2003

20

04

2005

20

06

2007

20

08

2009

20

10

2011

20

12

2013

20

14

Num

ber o

f Job

s

Full Time 1,063,540

Part Time 320,860

77.1% Toronto jobs are Service Based.

47.9% of Toronto jobs are in the Office

sector.

The Institutional sector was the fastest

growing sector in Toronto in 2014.

5,030 business establishments were

new to Toronto in 2014.

Toronto Job Count 1,384,390

1.5% 2013-2014

34.9% of Toronto's jobs

are located Downtown

Toronto Employment Survey 2015

This bulletin summarizes the highlights of the 2015 City of Toronto annual Employment Survey, marking its 33rd consecutive year. This information resource presents a picture of change in Toronto’s economy throughout the past three decades. For more information, please visit us at www.toronto.ca/demographics/surveys

Highlights

x The 2015 survey counted 1,422,280 jobs, an increase of 37,870 jobs or 2.7% from Toronto's overall employment base in 2014.

x Full-time employment has surpassed the 1 million mark for the ninth consecutive year.

x Part-time jobs increased by 7.3% from 2014, an addition of 344,350 jobs.

x The Office category remains the largest sector in Toronto, accounting for almost 1 out of every 2 jobs.

x The survey counted 75,710 establishments in 2015, a net gain of 530 establishments.

x In 2015, approximately 587,490 jobs were located in Toronto's Downtown and Centres, 41.3% of all jobs city-wide.

x North York Centre, with 35,000 jobs, remains Toronto's largest employment Centre after Downtown.

x Yonge-Eglinton Centre has Toronto's highest employment density with nearly 30,000 jobs per km2.

x In 2015, there were approximately 407,420 jobs in Toronto's Employment Areas, 28.6% of jobs in Toronto.

x 83.1% of all Manufacturing category establishments and 91.2% of all Manufacturing category jobs, are in Employment Areas.

x The Manufacturing category added 20 new establishments in 2015.

Web page Printout

TOcore - Planning Toronto's Downtown

What's New?

TOcore Phase 1 Summary Report and Phase 2 Directions

The TOcore Phase 1 Staff report went before Toronto and East York Community Council (TEYCC) on November10, 2015 and was subsequently adopted by City Council at its December 9, 2015 meeting. A copy of the StaffReport and the accompanying TEYCC presentation (in both video and hard copy) and available here: 

TOcore: Planning Toronto's Downtown Phase 1 Summary Report and Phase 2 DirectionsPresentation Video  (TOcore presentation begins at the 9:25:00 time spot)

Phase 1 Background Reports

Several background reports were prepared as part of TOcore's initial 'taking stock' phase. This section will beupdated as reports are made available.

TOcore Retail and Service Commercial Land Use Study (December 2015) Appendices to this report areavailable upon request to tocore@toronto.caNot Zoned for Dancing: A Comprehensive Review of Entertainment in the Downtown (December 2014) - aresearch report by graduate students at the University of TorontoTOcore Community Services and Facilities Study - Phase 1: Taking Stock (forthcoming)Downtown Parks: Phase 1 Background Report Summary (forthcoming)TOcore Transportation Summary Brief - Phase 1: Taking Stock (forthcoming)TOcore Energy: Existing Conditions (forthcoming)

Overview

Since 1976 the residential population Downtown has doubled, with over 240,000 people now calling Downtown home. With almost 480,000 jobs, Downtown is today the largest and most accessible employment centre in the region, notable for its concentration of jobs in finance, government, creative industries, higher education and health care. In fact, one-third of all jobs in the city are within the core. With a population growth rate of 18% since 2006, Downtown is growing at four times the rate of City of Toronto as a whole.

2. Outgrowing Condos into Houses

Young professionals are getting married and having kids, and are growing out of their 750sqft downtown condos

Featured

LIVE NOW: BlackBerry

CEO speaks in

Washington

Extended: New

surveillance images in

Chinatown murders

Ghomeshi trial: Final

submissions to be

made Thursday

Toronto taxi drivers to

plan massive Uber

protest

Trudeau in Whitby for

Ont. Liberal's

byelection rally

Extended: Truck stuck

in giant sinkhole in

Kitchener, Ont.

RELATED STORIES

Condo prices to rise in most cities in2013, demand to continue

Toronto's condo boom won't bursthousing bubble: RBC

Most Canadian home buyers wouldavoid bidding war: study

City over suburbs: Downtown Toronto's population growth triples with youngerinflux

A construction crane stands in front of the CN tower in downtown Toronto. (Pawel Dwulit/THE CANADIAN PRESS)

Andy Johnson, CTV Toronto Published Tuesday, January 22, 2013 1:33PM EST

Toronto's downtown core is booming as a group of highly­skilled, highly­educated young people ­­ known as “Echo Boomers” ­­ eschew thesuburban lifestyle their parents chose and instead opting for an urban lifestyle in the city centre.

According to a new report from TD Economics analyzing the trend, growth of Toronto’s downtown population has more than tripled in the past fiveyears.

The Echo Boomers – children of Baby Boomers who born between 1972 and 1992 – are driving the new trend as they get married, have childrenand purchase homes in the city.

"These individuals and young families are choosing quicker commute times, proximity to amenities,workplaces and transit, locating themselves in the downtown core's many mixed­use communities," thereport states.

For this generation, proximity to work, a shorter commute and access to city transit is a fair trade­off for thehigher real­estate prices and smaller properties their parents fled to the suburbs to avoid. The movementhas resulted in a seemingly endless crop of new condominium buildings in the downtown core.

As a result, Toronto's downtown is experiencing business growth, employment gains and population growthat rates that outpace the surrounding suburbs and reverse a decades­long trend in the other direction.

The study reveals a startling shift in recent years when growth in downtown Toronto is compared to growth in Peel, York, Durham and HaltonRegion – essentially Toronto's suburbs and bedroom communities.

Between 1991 and 2006, the growth rate in the suburbs was between 15.7 per cent and 18.6 per cent. Over the same period, growth in thedowntown ranged from 4.3 to 4.6 per cent.

But between 2006 and 2011 a massive reversal took place. Growth in the suburbs dropped from 18.6 to 13.7 per cent, while growth in thedowntown spiked from 4.6 per cent to 16.2 per cent.

•  Growth of Toronto’s downtown population has more than tripled in the past five years.

•  They get married, have children and purchase homes in the city.

•  Proximity to work, a shorter commute and access to city transit is a fair trade-off for the higher real-estate prices and smaller properties

•  Echo Boomers are now the largest age and a higher proportion of them live downtown than anywhere else

•  While formerly run-down neighbourhoods have experienced significant gentrification as young people purchase properties, then renovate them.

At the other end of the renovation spending spectrum will be first-time house buyers in the 24- to 44-year range, looking to add a basement apartment so the rent will help pay their hefty mortgages. 40 per cent are expected to do renovations aimed at turning the old family home into a great entertaining space — in many cases with a basement apartment to help grown children get on their feet or save for a house.

3. Millennials Will be the biggest cohort since the Baby Boomers to affect

the housing market

12 13

14

15

4. Condos Currently meeting the needs of young 20-somethings, but

eventually they outgrow them

How does this impact prices? It’s basic economics. The prices of the home types we aremaking more of (condos) are relatively flat, while the prices of the home types we are making far fewer of (detached houses) are rising. In July the RealNet New Home Price Index for lowrise homes (detached, semidetached, townhouses and link homes) reached a record high of $806,395, an increase of 17.7 per cent over the previous year. Meanwhile, the price index for highrise homes (condominium apartments, lofts and stacked townhouses) increased by only 1.2 per cent, to $446,398.

5. Transit Investing around transit hubs give an extra 15-20% lift in

values and rents.

Eglinton West

St. Clair West

Annex East York

Eglinton East

St. Clair East

South Parkdale Beac

hes

Annex

South Parkdale

Annex

South Parkdale

Annex (including Trinity Bellwoods, Dovercourt/Wallace/Emerson, Little Italy, Junction) •  Price: $1-$1.2M •  Rent: $5000-6000 •  Cashflow: $1200-1500 •  Downpayment Required (no renos): $200-240k •  Mortgage Qualification Income: $150-175k •  Transit: Bloor subway line (or streetcars) •  Tenant Profile: A+. Young professional works downtown. •  Properties: Duplex/Triplex •  Gentrifiction: Fully gentrified. •  Why This Area: Highest Rents in Toronto, Best Tenant Profile

in Toronto, Transit already fully developed. Established investment business model.

•  Investment Strategy: Buy & Hold, Renovations, Multifamily, Flips

Annex

South Parkdale

751 Markham •  List: $899,000 •  Sold: $1,130,000 •  Type: Semi, Triplex •  Renos: $0 •  Rent: $5500 •  Cashflow: $1100/month

East York Beaches

East York Beaches

East York (including Leslieville, South Riverdale) •  Price: $800k-$1M •  Rent: $4000-5000 •  Cashflow: $800-1200 •  Downpayment Required (no renos): $160-200k •  Mortgage Qualification Income: $125-150k •  Transit: Danforth Subway, Streetcar (Gerrard, Queen), DVP

access •  Tenant Profile: A+. Young professional works downtown. •  Properties: Duplex/Triplex •  Gentrifiction: Middle of gentrification cycle. •  Why This Area: Similar business model, but slightly less

expensive than Annex/Beaches, upside potential. •  Investment Strategy: Buy & Hold, Renovations, Multifamily,

Flips

East York Beaches

189 Parkmount •  List: $800,000 •  Sold: $900,000 •  Type: Detached, Triplex •  Renos: $0 •  Rent: $5500 •  Cashflow: $1100/month

East York Beaches

East York Beaches

The Beaches •  Price: $1-$1.2M •  Rent: $5000-6000 •  Cashflow: $1200-1500 •  Downpayment Required (no renos): $200-240k •  Mortgage Qualification Income: $150-175k •  Transit: Queen streetcar, Lakeshore •  Tenant Profile: A+. Young professional works downtown. •  Properties: Duplex/Triplex •  Gentrifiction: Fully gentrified. •  Why This Area: Highest Rents in Toronto, Best Tenant Profile

in Toronto, Transit already fully developed. Established investment business model.

•  Investment Strategy: Buy & Hold, Renovations, Multifamily, Flips

East York Beaches

99 Rainsford •  List: $950k •  Sold: $1.14M •  Type: Semi, Triplex •  Renos: $0 •  Rent: $5500 •  Cashflow: $1200/month

Annex

South Parkdale

Annex

South Parkdale

South Parkdale (including Little Portugal) •  Price: $700-$900k •  Rent: $3500-4500 •  Cashflow: $500-1000 •  Downpayment Required (no renos): $140-180k •  Mortgage Qualification Income: $125-150k •  Transit: Streetcar (Dundas, Queen, King), Gardener access •  Tenant Profile: B+. Higher-end blue collar, lower-end white

collar. •  Properties: Duplex/Triplex •  Gentrifiction: Middle of gentrification cycle •  Why This Area: Beside very good investment area, Similar

business model, More affordable price point. •  Investment Strategy: Buy & Hold, Renovations, Multifamily,

Flips

Annex

South Parkdale

19 Shirley •  List: $599,000 •  Sold: $801,000 •  Type: Detached, Triplex •  Renos: $50,000 •  Rent: $4000 •  Cashflow: $800/month

St. Clair West

Eglinton West

St. Clair West

Eglinton West

St. Clair West (Junction, Corsico Italia, Wychwood) •  Price: $700-$900k •  Rent: $3000-4000 •  Cashflow: $500-1000 •  Downpayment Required (no renos): $140-180k •  Mortgage Qualification Income: $125-150k •  Transit: St. Clair streetcars •  Tenant Profile: B+. Higher-end blue collar, lower-end white

collar. •  Properties: Duplex/Triplex •  Gentrifiction: Middle of gentrification cycle •  Why This Area: Streetcars have dedicated track like LRT,

commercial developments along St. Clair, desirable neighbourhood at more affordable prices. Still have relatively good rents that allow for cashflow.

•  Investment Strategy: Buy & Hold, Renovations (over time), Multifamily

St. Clair West

Eglinton West

117 Laughton •  List: $699,000 •  Sold: $746,000 •  Type: Semi, Duplex •  Renos: $0 •  Rent: $3500 •  Cashflow: $500/month

St. Clair West

Eglinton West

St. Clair West

Eglinton West

Eglinton West (Mount Dennis, Caledonia, Oakwood) •  Price: $650-$800k •  Rent: $2500-3000 •  Cashflow: $300-700 •  Downpayment Required (no renos): $130k-160k •  Mortgage Qualification Income: $100k-125k •  Transit: Eglinton Crosstown LRT •  Tenant Profile: B. Will require more active management. •  Properties: Duplex/Triplex •  Gentrifiction: Early gentrification cycle •  Why This Area: Eglinton Crosstown LRT is in process of

being built. Big upside potential, if you are willing to actively manage as the area continues to develop and gentrify. Rents will continue to rise as the LRT develops and cashflow will improve over time.

•  Investment Strategy: Buy & Hold, Renovations (over time), Multifamily

St. Clair West

Eglinton West

19 Richardson •  List: $715,000 •  Sold: $715,000 •  Type: Detached, Triplex •  Renos: $50,000 •  Rent: $3700 •  Cashflow: $700/month

St. Clair East

Eglinton East

St. Clair East

Eglinton East

St. Clair East •  Price: $650-$750k •  Rent: $2500-3000 •  Cashflow: $200-500 •  Downpayment Required (no renos): $120-150k •  Mortgage Qualification Income: $100-125k •  Transit: Warden Subway Station •  Tenant Profile: B. Will require more active management. •  Properties: Duplex (Bungalows or 2 story) •  Gentrifiction: Mid gentrification cycle •  Why This Area: Beside very good investment area, more

affordable price point. Certain pockets are near Warden Subway Station. Avoid Vic Park and Danforth.

•  Investment Strategy: Buy & Hold, Renovations (over time), Multifamily

St. Clair East

Eglinton East

297 Lumsden •  List: $600,000 •  Sold: $700,000 •  Type: Semi, Duplex •  Renos: $20,000 •  Rent: $3000 •  Cashflow: $300/month

St. Clair East

Eglinton East

St. Clair East

Eglinton East

Eglinton East (Wynford, Vic Park, Golden Mile, Birchmount, Ionview, Kennedy) •  Price: $650-$750k •  Rent: $2500-3000 •  Cashflow: $200-500 •  Downpayment Required (no renos): $120-150k •  Mortgage Qualification Income: $100-125k •  Transit: Eglinton Crosstown LRT •  Tenant Profile: B. Will require more active management. •  Properties: Duplex (Bungalows) •  Gentrifiction: Early gentrification cycle •  Why This Area: Eglinton Crosstown LRT is in process of

being built. Big upside potential, if you are willing to actively manage as the area continues to develop and gentrify. Rents will continue to rise as the LRT develops and cashflow will improve over time.

•  Investment Strategy: Buy & Hold, Renovations (over time), Multifamily

St. Clair East

Eglinton East

4 Rosemount •  List: $550,000 •  Sold: $685,000 •  Type: Duplex •  Renos: $30,000 •  Rent: $3000 •  Cashflow: $200/month

Hot Toronto Investment Neighbourhoods Summary Best Investment Neighbourhoods Best tenant profiles, highest cashflow, lowest risk Annex ($1M-$1.2M) East York ($800k-1M) Beaches ($1M-$1.2M) More Affordable Options Requires more active management, lower cashflow initially, waiting for local infrastructure to develop, significant upside potential. South Parkdale ($700k-900k) St. Clair West ($700k -900k) Eglinton West ($650-$800k) St. Clair East ($650k-$750k) Eglinton East ($650k-$750k)

How to move forward? Complimentary Consultation with Matthew (REIA)

Snapshot •  Where are you now: How many properties do you own,

savings, RRSPs/TSFA, income? •  Where do you want to go: What is your vision for the future? •  Plan: What is your plan to get there?

Investment Property •  Budget: How much capital do you have? •  Mortgage: How much mortgage can you qualify for? •  Location: Which area do you want to buy? •  Renos: Are you willing to do renos or do you want turnkey?

How much do you want to spend in renos? •  # of units: Duplex or Triplex (or more?) •  Tenant Profile: Who is your intended tenant profile? •  Investment Strategy: What is your planned strategy for this

property? •  What features are important to you: Parking? Detached vs

Semi? Wide vs. narrow lot? 2 story vs. bungalow? Side street vs. main road?

Fin

Turn-key Investment Property Services FIND IT: Investor-Focussed Realtor CREATE IT: Renovations to Create Rent-Ready Properties MANAGE IT: Property Management

Matthew Lee, Managing Partner Sam Ho, Managing Partner

Certified Real Estate Investment Advisors (REIA) info@volitionprop.com

(416) 937-5251

If you take your financial goals seriously and are looking for a mortgage team who understands the big picture –

we would love to serve you!

1-855-410-9905 or 416-410-9905 www.CalumRoss.com

1) • Next meetup is June 16. • Calum Ross – 2014 Top Mortgage Broker in Canada.

Part 2: Strategically Positioning Your Portfolio.

2) • Join Meetup.com group to get updates.

3) • Write down one action item that you will commit to

completing before next meetup.