MULTI-RESIDENTIAL REPORT

Hamilton and Niagara Regions offer great investment opportunities.

There is a vibrant investment market outside the Greater Toronto Area that currently offers many fantastic investment opportunities in the multi-residential sector. The "Hot" Toronto market continues to be fueled by speculators, and the over building of rental units and condos which have had a great impact on vacancy and rental rates. The Hamilton and Niagara Regions have been discovered as an alternative "place to invest". According to CMHC stats, Toronto's "vacancy rate rose to the highest level since the inception of the survey".

Unfortunately, Toronto investors are currently surrounded with skyrocketing values and very low cap rates. Due to the highly speculative Toronto market, and limited supply of available units, GTA investors are in many cases accepting zero or negative returns. The last period this was witnessed was the "speculator driven" market of the late 1980's. In contrast, the Hamilton, St. Catharines and Niagara Falls market continues to offer their investor solid returns on their investment.

Consider that Hamilton boasts a low unemployment rate, and a vacancy rate which remains around 3%. The average rents continue to offer great potential for rent increases as the vacancy remains low. Hamilton's investment properties are still very reasonably priced with attractive cap rates. In this market positive cash flow is the norm, not a wish.

In the past few years, the City of Niagara has experienced a profound change in rental market activity. Since Casino Niagara opened in 1996, the vacancy rates have dropped drastically allowing rents to rise dramatically. We truly expect that investors will continue to enter this market as it provides excellent returns on investment as well as fantastic potential for capital appreciation.

RENT & VACANCY COMPARABLES FOR YEAR 2004

Compared to other major Canadian Municipalities in 2004, Hamilton's vacancy rate is the 16th out of 28 reported regions in Canada.

We at Investpro Realty and Appraisal Ltd. specialize in the listing and sales of apartment buildings in Hamilton, Niagara and Southern Ontario. We have accumulated a long list of serious cash buyers ready and anxious to present offers.

JAN. 2004

Update for Hamilton Region......continues to offer great investment opportunities.

Despite some negative news around the steel industry, Hamilton has diversified and maintains low unemployment levels as well one of Ontario's lowest vacancy rates in multi residential.

And to prove our point, it is interesting to note that 90% or more of our inquiries for Hamilton properties come from Toronto investors. The latest statistics show that vacancies in Toronto and area have increased and that rent levels are suffering accordingly.

According to the C.M.H.C. Housing Outlook Conference recently held in Hamilton, they confirmed that Hamilton and the area boasts both a low unemployment rate, as well as multi-residential vacancy rates that remain steady at approximately 3%. And although interest rates are at forty five year lows, they are expected to "inch up" only slightly in late 2005. However they should remain near existing levels for the foreseeable future.

Rents continue to offer potential for increases at the Government allowed statutory levels as the vacancy rates remains low. We recommend that if you are considering entering the multi-residential market, or increase your holdings that you give the Hamilton market area serious consideration.