We sat down with Sam Mizrahi to discuss the options Canadians face today as they look at the high costs of the housing market. Drawing on his 25 years in the industry, Mizrahi shares some sage advice about weathering and capitalizing on housing trends. 

Q: The current housing market is seeing more of a trend toward Canadians renting versus buying a property. What changes are occurring in the marketplace that caused this shift? 

Sam Mizrahi: Property values have gone up, and in recent years mortgage rates have pushed a lot of people out of the ‘buying’ conversation. For example, Canadian fixed mortgage rates went from 3.77 percent in 2020 to 5.91 percent in 2023 on average.  But costs aside, there is a shift happening in the priorities of young professionals. More and more people are wanting to travel, and being tied down by a mortgage isn’t necessarily appealing. Today’s remote work environment has led to a lot more people moving to new places. With more global resources available people are staying in one place less. 

Q: Rental rates are also rising, but what are the pros and cons of renting longer?

Sam Mizrahi: There are pros and cons to both renting and buying. Renting can be much cheaper than buying. Monthly rental fees are usually lower than mortgage payments and can even include the cost of utilities like hydro, water and gas. For instance, the rent on a one-bedroom apartment in Toronto averages $2,620 dollars compared to the average condo price, which is $718,698 dollars. Meanwhile, the average house costs $1,106,617. Renting also gives people more flexibility when it comes to where they live, with short-term leases making it easier to relocate when you need to. 

The other benefit to renting is that when something needs to be fixed you can call your landlord or building management team. This can take a lot of stress off people knowing they do not need to be directly involved when it comes to maintenance. Of course, there are some downsides to renting. Renting long-term prevents you from building credit, which depending on your financial goals might be a big concern. You are also at the mercy of a landlord or management company, meaning you may need approval to make changes to the property. 

Q: Do rising mortgage rates and longer renting periods change the way you develop properties? 

Sam Mizrahi: No matter what market we find ourselves in, people need places to live. We are seeing an issue with the housing supply right now. For instance, in 2021 there was a pre-existing shortage of 471,500 homes. It’s estimated that over one million homes will need to be built to keep up with population growth over a ten year period.  

One of the solutions to this is to continue to build more properties at an accelerating pace. Mizrahi Developments takes sustainability very seriously and this is reflected in all of our developments. This can help minimize costs for owners and renters long term. By installing smart home features and energy-efficient management systems during a build, we can help consumers cut costs on energy, water, and gas. 

Q: What advice do you have for prospective homebuyers in 2024? 

Sam Mizrahi: I think buying a home is a very personalized process. Some advice that I think all potential homeowners should take into consideration is to get pre-approved with a lender. If you don’t have a mortgage rate locked in then you risk a hike in rates. Sometimes finding the right property for you can take a good deal of time. If you are waiting for the rates to drop now you may need to wait a very long time. If your goal is to buy within the next few years, I would suggest taking that leap.

Q: Do you have any advice for property owners who are looking to rent out their spaces?

Sam Mizrahi: For individual landlords, I would recommend looking into technology that can help you manage your properties. At Mizrahi Developments we have a whole division that focuses on property management for our developments. It can be a big task to take on for just one person, especially if you have a full-time job and other priorities. There’s some great technology out there today that will make both a landlord’s and tenant’s experience more streamlined. Some of these technologies include Smoobu, Entrata, or RealSage Convert. Check those three out and figure out which one feels right for your situation. 

The post A Conversation with Sam Mizrahi: Why More People are Renting vs Buying Homes appeared first on CEO Medium.

Can you share more about your educational and professional background, and how have these experiences contributed to your success in the real estate development sector?

I grew up in an architectural and design-oriented family in Stuttgart, Germany. I began working at the age of 13 in a German architecture office for residential housing and new developments. In 2011, I was recruited as a 400m and 400m Hurdle Track athlete to a D1 school in the Nashville area. I studied finance and international management in college and have won financial awards. I quickly began to focus on real estate investments upon graduation. I have prior work experience in the European M&A group at Deloitte and in Equity Research of a $1.3bn fund at an Asset Management firm in Franklin, TN. Coming out of college and taking a real estate development and investment firm from essentially scratch to multi-millions has been a big personal accomplishment. I live for improving the lives of others and increasing safety in our neighborhoods.

How does Sapphire Development Group’s vertically integrated business model operate, and what strategies have propelled your rapid growth within the real estate industry?

I built Sapphire Development Group to be a vertically integrated real estate development and investment firm because I believe that the investor and client experience is much better when the same trusted team can assist all around with their real estate investment needs. My team delivers a one-stop-shop experience, from offering off-market deals and developing ground-up residential to helping others build and sell real estate portfolios. This means we provide our investors with a hands-on deal experience that includes access to off-market deals that can yield better returns, and also protect development investments as our Realtor Team, Your Sapphire Team, handles the sales aspect. Sapphire & Co. handles much of the real estate cycle in-house, which has helped the company grow quickly.

Based on your experiences, what key lessons would you share with aspiring entrepreneurs, especially in navigating challenges and building character?

Don’t ever quit. No matter how difficult something may seem, it’s worth the undertaking. Character is built during persevering tough times, and character is what will make all the difference in the world. I believe the saying, “When the going gets tough, the tough get going,” is what makes for successful entrepreneurship.

In what ways do you believe your vision for architecture and design, combined with an understanding of urban planning and human trends, has made Sapphire Development Group successful?

I believe it’s my vision for architecture and design that meets a deep understanding of urban planning and understanding human trends that have been inspired by having lived abroad in various cultures from Germany to China, as well as in metropolitan areas such as NYC.

What have you learned about the importance of communication and authenticity in business, and how has this understanding shaped your entrepreneurial journey?

I’ve learned that communication in business is everything. It’s vital as an entrepreneur to be able to communicate during great as well as during difficult times, whether that’s with investors, clients, or employees. I also have come to the realization that most people don’t know what they’re doing and that we all are just trying to figure things out as we go. We’re all in this human experience together looking for opportunities to grow, unfold, and be. The more authentic we are, and the more we feel connected within our community, the more successful our journey will feel as an entrepreneur.

What personal skills and attributes do you consider critical for your success, and how have they helped you adapt and thrive in various circumstances?

As a person, I’m very adaptable, open-minded, and durable. I’ve had to pivot and restart several times which has built character and perseverance. I love learning and get bored easily so I try to stay super active in whatever I do. I’m just a generally curious person; curious to learn about others and curious to figure out how to unfold my full potential in building businesses.

Why do you believe mastering online marketing and diversifying business models is crucial for entrepreneurs today and in the future?

I believe that attention is the new currency and that we, as entrepreneurs whether digital or more traditional entrepreneurs, need to learn how to market online well in order to stay relevant over the next 10+ years. I also love the diversification of business models within a business umbrella.

Can you tell us more about the Sapphire Developer Academy and how it aims to empower real estate professionals with the knowledge to succeed in development?

I recently launched “Sapphire Developer Academy” in which I coach Realtors, Wholesalers, and Investors on how to break into real estate development. In this program, I share the exact strategies that I’ve used to build a multi-million dollar company and how they can too.

To discover more about Joséphine Saffert’s journey and Sapphire Development Group’s projects, explore these links:

Company Website: https://sapphiredevelop.com

LinkedIn & Instagram Handles:

– LinkedIn: @josephinesaffert https://www.linkedin.com/in/josephinesaffert

– Instagram: @josephinesaffert https://www.instagram.com/josephinesaffert/

 & @sapphirdevelop https://www.instagram.com/sapphirdevelop/

More on Sapphire Developer Academy: 

Sapphire Developer Academy

https://academy.sapphiredevelop.com/developer-academy

Podcasts Joséphine has been featured on:

-Spotify Episode

https://open.spotify.com/episode/5vU2QrsBYqVsTlXmo0nhGW?si=BDwXOiSbQMSh6GE0YduZTA

– Spotify Show

https://open.spotify.com/show/3p1JTW0mx9auFQxns4vL7Z?si=lKEeBfBqQO6BbqPkvn1jew

The post Sapphire Development Group: Joséphine Saffert’s Blueprint for Success appeared first on CEO Medium.