REPORT AN EARTHQUAKE

Did you know that you can report a seismic event in your area at Earthquakes Canada?

The March 3rd earthquake of 4.1 magnitude between Victoria and Vancouver was below the alert threshold, but my mother was jolted out of a sound sleep as our house shook.  

Thanks to my friend Alison Jantzi for providing the link. 

GOVERNMENT STOCKPILE

These are the top 10 food items that governments around the world stockpile for emergencies.

Are they in your pantry?

(1) Honey (2) Powdered eggs (3) Instant coffee (4) Canned fish (5) Dried lentils (6) Peanut butter (7) Oats (8) Canned vegetables (9) Salt (10) Ramen noodles

EMERGENCY GO-BAG

It is prudent to be prepared for an emergency situation just in case. 

Make a grab-and-go-bag for your car, at work, and at home.

This 12-minute video shows items to include in a go-bag. 

SPECIAL E-DELIVERY VALENTINE MESSAGE

Why limit showing your appreciation for others to one day of the year? 

Let's make every day a happy Valentine's day.

Love is a choice that we have the privilege to exercise by our free will.

Love is the most powerful force in the universe. 

I am ever so grateful for everyone that I have met; and I mean everyone, because there is something special embedded in each encounter.

You are special and unique and valued. 

COQUITLAM LANDMARK - CLASS C UNITS

The Coquitlam Landmark project has entered the second phase.

The next offering of Class C units is for a term of 2 years and is now open to investors.

BC SPECULATION & VACANCY TAX

By now, homeowners in BC should have received their annual declaration letter and code from the Ministry of Finance Property Tax Branch.

Owners should be aware of new taxable areas that have been added including Coldstream, Comox, Courtenay, Cumberland, Kamloops, Lake Country, Parksville, Peachland, Penticton, Qualicum Beach, Salmon Arm, Summerland, and Vernon.

DESIGNING OUR FUTURE

The 2025 World Expo is taking place in Osaka, Japan from April 13 to October 13, 2025 on Yumeshima Island, a man-made island in Osaka Bay.

This is the official website to purchase the expo tickets.

The theme is sustainability.

YOUR SUSTAINABLE FUTURE

Create your sustainable personal future plan by setting SMART goals to help you take actionable steps that also prepares you for unexpected challenges.

Personal planning is as vital for managing careers and finances as it is for insulating you from potential hardships.

Set yourself up for success. Take an hour, a day, a week, or a month to design a hassle-free, stress-free, worry-free future.

$2.8B SKYTRAIN EXTENSION

Two tunnel boring machines named Phyllis and Elsie excavated their way under Broadway and reached Arbutus Station in April 2024. 

The unique solution to manage traffic flow and lessen congestion was building an elevated guideway above the construction.

The Broadway subway line is on track for completion in late 2027.

December 23, 2024 Update

Season's Greetings
We wish you a Merry Christmas and a Happy New Year. As we celebrate this festive season, may peace on earth and goodwill toward all guide us forward (Luke 2:14).

Funding Update

We are pleased to announce that we have successfully reached our funding goal for the Phase 1 capital raise. As a result, the offering of Class B Units is now closed.

For those interested in utilizing your TFSA or RRSP contributions, we are excited to share that Phase 2—featuring Class C Units—will open on January 30, 2025, earlier than anticipated.

Please communicate your interest directly to Parvis at transactions@parvisinvest.com and Western Pacific Trust at self-administered@westernpacifictrust.com.

Reminder: The deadline for RRSP contributions is March 3, 2025. The annual contribution limit is set by the Canadian government. Please check your CRA account for individuals at https://www.canada.ca/en/revenue-agency/services/e-services/digital-services-individuals/account-individuals.html

Building Update

Upstairs Unit: The previous tenant vacated on September 30, 2024. The space has been successfully leased to a local dealership under a two-year term at a higher rate.

Downstairs Unit: The current tenant is vacating on January 31, 2025 and we are already working on a lease with a union electrical contractor who are interested in leasing as of February 1, 2025, also under a two-year term.

Both tenants are on triple-net lease terms ensuring that property holding costs are fully covered. Lease income continues to offset financing costs. Additionally, the roof is undergoing repairs as it is at the end of its service life.

Project Progress Update

The City of Coquitlam has acknowledged challenges with TOA zoning designations imposed by the Provincial Government. A block-by-block review commenced this fall with draft amendments expected by early spring 2025.

Our property at 576 Lougheed was originally designated as a high-density TOS area. However, during the TOA zone setup, an error excluded it from the designated circle despite its proximity to other high-rise developments. Following discussions led by Olga Karan, Councillor Djonlic acknowledged the oversight, and the City is working to rectify this issue.

Rezoning and Development Application
Since our last meeting, we have retained all required consultants and completed all necessary reports for the rezoning and development application. Olga is meeting with City staff before the year end to review responses to a pre-application letter.

Timeline: Rezoning and development permit applications typically take 8–12 months. We aim to submit our application in early January 2025.

Geotechnical/Hydrological Study: GeoPacific returned to the site this month to conduct a fourth drilling study to confirm the secant wall dimensions.

Daycare Facility
In late November, Olga met with the Fraser Health daycare licensing officer to review our blueprint for the proposed 9,049 sq. ft. indoor and 3,550 sq. ft. outdoor daycare facility. The design accommodates:

A YMCA-operated non-profit daycare for infants (35 children)

A for-profit daycare for infants, toddlers, and before-and-after school programs (51 children)

Together, these facilities will provide care for 86 children. We are collaborating with YMCA’s Raegan Stewart to secure an operator for the non-profit portion. The YMCA will lease a portion of the space at a below-market rate while the for-profit daycare space will be sold.

It is now mandatory to provide daycare space in high-density rental towers in the City of Coquitlam.

Land Acquisition
Discussions with the City to purchase partial Edgar Road and the adjacent parcel (formerly known as 590 Lougheed) are progressing. Upon transfer of the title from the Ministry of Transportation (MOT) to the City of Coquitlam, zoning was changed from industrial to a road dedication. This zoning discrepancy devalued the land which works in our favor.

On November 19, the Pooni Group facilitated a comprehensive discussion with City staff regarding the partial acquisition of Edgar Road and the property formerly known as 590 Lougheed Hwy. During the meeting, Olga highlighted the strategic importance of this acquisition considering the planned future closure of Edgar Road, as outlined in the pre-application letter (paragraph 1.7). She emphasized that, given the closure, the proposed acquisition would not adversely affect traffic flow.

The acquisition of this portion of Edgar Road will significantly improve access to the building, enhance safety, and align with existing municipal plans, including the proposed cul-de-sac at the north end of Loring Street. Olga further underscored that this purchase is crucial for ensuring safe and efficient access to the daycare facility, while also preserving access to the garages of the two adjacent single-family properties.

Market Outlook

The 2024 Housing Market Outlook forecasts declining vacancy rates, expected to fall below 0.9%, driving rental prices upward.

Rental Prices in Coquitlam (October 2024)

1-bedroom: $2,500–$2,800/month

2-bedroom: $3,600–$3,800/month

3-bedroom: $4,000–$4,300/month

Although vacancy rates in the Vancouver primary rental market increased slightly from 1.3% to 1.4%, rental rates are expected to rise further as purpose-built rental construction lags behind demand.

Capital Allocation Recap

Class B Units: Funds were allocated for land acquisition and soft costs including consultant, legal, and other professional fees.

Class C Units: Proceeds will cover rezoning and development application fees, Community Amenity Contribution (CAC), additional consultant and professional fees.

Looking Ahead

We look forward to hosting an investor mix-and-mingle in February 2025 of the New Year. Stay tuned for details!

Until then, we wish you and your loved ones a joyful holiday season and safe travels.

Gratefully,

July Ono, CAPM, BA LDRS
OCMI Capital Management Inc.
#210 – 15272 Croydon Drive, Surrey, BC V3Z 0Z5
604.830.2438 | july@ocmi.ca

Olga Karan, CPA, CGA, BFin
OCMI Capital Management Inc.
#210 – 15272 Croydon Drive, Surrey, BC V3Z 0Z5
604.330.2172 | olga@ocmi.ca

HAPPY NEW YEAR

Reflecting on 2024 and looking forward to 2025, I thought of this Bill Keane quote:

Yesterday's the past, tomorrow's the future, but today is a gift. 

That's why it's called the present. 

Happy New Year dancing babies.

AN ABBA HAPPY NEW YEAR

I did not know that ABBA had a Happy New Year song and here it is for your listening pleasure.

Happy New Year, happy New Year
May we all have a vision now and then
Of a world where every neighbour is a friend
Happy New Year, happy New Year
May we all have our hopes, our will to try
If we don't, we might as well lay down and die
You and I

STIMULATING CURIOSITY

Simon Sinek explains that asking "what if" questions can lessen judgmental attitudes by imagining possible alternate realities. 

Ted Lasso on being curious and not judgmental, and one of my favorite shows.

Curiosity is a super power by Brian Grazer. 

Bill Nye the science guy on how curiosity.

Cultivating curiosity boosts memory, enhances patience, greater job satisfaction, but it takes practice.

This HBR assessment tests your curiosity profile.

The Greater Good curiosity quiz. 

My curiosity levels are moderate according to the results. 

Are you curious to find out yours?

FACEBOOK OCMI REALESTATE

We are rebranding OTBEC to OCMI because of the confusion between all our companies.

Our accountants, bankers, and lawyers continue to lump OTBEC Building Services Inc, OTBEC Property Management Inc, OTBEC Capital Management Inc, and On The Beach Education Corporation under the same OTBEC acronym. 

Hopefully, OCMI Capital Management Inc will differentiate this investment management company from the other entities.

This includes a new Facebook OCMIrealestate page with the latest articles and updates.

AI SEARCH ENGINE

Perplexity.ai is the new artificial intelligence search engine platform.

This is an information retrieval tool whereas ChatGPT is a generative platform that allows you to problem solve and create.

The hallucination rate for Perplexity is lower than ChatGPT because Perplexity is designed to reduce linguistic ambiguity.

Google was my default search engine until recently when my laptop kept being bombarded by excessive ads, and spending most of my time deleting unwanted spam ads.

This 16-minute video review explains the different applications between ChatGPT 4.o and Perplexity.

FIRST NATIONS TERRITORY ACKNOWLEDGEMENTS

First Nations territory acknowledgements is an outward form of cultural humility and respect.

Colonialism is the act of acquiring political control over another country and exploiting its resources whereas First Nations believe land is communal in nature and cannot be bought or sold by individuals.

In Canada, the practice of colonialism included the systematic removal of First Nations culture, communities, land, and people by erasing their unique identity.

Japanese Canadians share in the long-term impacts of inter-generational trauma and economic disparities of forced relocation and denial of rights. 

Both communities continue to work towards full equality and recognition of their rights and contributions to Canada. 

OCMI.CA RE-DESIGNED

Introducing the first iteration of our OCMI.ca digital brand.

Admittedly, we are not website experts because our focus is on tangible real estate and we acknowledge that our digital presence has been underwhelming.

It takes a lot of intentionality, time, and resources to build a website that reflects our historical  accomplishments, operational values, and multi-decade vision.

“In a world of change, the learners shall inherit the earth, while the learned shall find themselves perfectly suited for a world that no longer exists.” Eric Hoffer

BEWARE OF TAX SCHEMES

Did you know that the prevalence of tax schemes is increasing? 

Tax schemes are not fraud or scams, but arrangements by promoters who promise tax reduction through deceptive practices that go against Canadian tax laws.

Please be informed and be aware of potential tax schemes that promise to reduce your taxes.

If you feel that gut check, it's your intuition telling you that it's too good to be true.

If you think you have been misled into a fraudulent scheme, call CRA at 1-800-265-2577 or call collect 1-613-221-3176.

POWER OF 252

Reached another milestone this month with my 252nd newsletter (aka 21 years).

What is one keystone habit that you can start today?

The Power of Habits: Why We Do What We Do And How To Change It by Charles Duhigg.

MY AI-GENERATED AVATAR

I wondered what type of avatar that ChatGPT would create from an existing photo.

This was generated from the newsletter headshot.

Kinda cute, prefer being human instead of a cartoon.

TRAIN YOUR AI WITH PROMPT ENGINEERING

The key to learning how to use ChatGPT 4o or any generative AI software is based on Prompt Engineering.

ChatGPT is not a search algorithm like we use for internet searches.

Generative AI is artificial intelligence that can create original content (text, image, video, audio, software code) in response to your prompts.

GenAI use Large Language Models (LLMs) to understand and generate text like a human.

AI-ASSISTED ARTICLE

I asked ChatGPT to write a concise article comparing human-generated versus AI-generated content.

The below content was created in less than 3-seconds.

The first iteration was too long; this is the more concise second iteration.

Human-generated content offers creativity and emotion, drawing from personal experiences for unique and engaging pieces. AI-generated content is fast and efficient, using patterns from large datasets. While AI is great for handling information quickly and consistently, it may lack the depth and warmth of human writing. Each has strengths with AI providing speed and humans offering authenticity. Together, they can enhance the content landscape.

I used Prompt Engineering to train ChatGPT to write in my style by uploading dozens of my previous writings. 

CELEBRATING 62 YEARS

Thanks to my dad for giving me my name as our birthdays are 3 days apart.

July is a fun month, isn't it. We think of summer, sunshine, splashing around in outdoor activities, and vacation time.

We celebrated my birthday at the Blue Water Cafe with Kusshi oysters and White Diamond Beluga caviar.

My sister Jan and I are close friends (and no, her name is not January).

That's understandable because humans do this all the time.

We default to pattern recognition to fill in the blanks, but it doesn't always serve us to jump the gun. 

SUMMER VIBRATIONS

One of my favorite summer songs is by the Beach Boys.

Here they are the Live At Knebworth performance of Good Vibrations.

Happy summer vibes.

SUMMER LOVE SONGS

When it comes to movies that bring out the summer sunshine and your inner dancer, pick and choose your favorite soundtrack from Mamma Mia.

FOR QUALIFIED INVESTORS

We are half way to our Phase 1 funding goal for rezoning 576 Lougheed Highway in Coquitlam from CS-1 low density commercial to RM-6 high density multi-family residential. 

You may view the investment offering at Parvis Invest, our exempt market dealer.

Setting up an investor account with Parvis is free.

Once you are registered, you are placed in the queue for a KYC (know your client) suitability assessment with their dealing representative. 

You may reach the Parvis Team at transactions@parvisinvest.com if you require assistance with setting up your account. 

MUTUAL FUND TRUST - WHY?

I was reading through the May 2023 issue of Canadian Real Estate Magazine when I read an article that caught my attention.

The topic was about the ability of mutual fund trusts (MFT) to accept registered funds for real estate projects.

Our investors have been asking us for years when we will be able to accept their RRSP, LIRA, or TFSA in our real estate investments.

The roadblock was the cost to set one of these up with quotes ranging from $350,000 to $500,000, and ultimately investors end up paying for these costs. 

More importantly, there must always be a minimum 150 investors in the fund at all times.

If it dips below 150 investors, the MFT loses its status and the unit holders are subject to a 50% penalty tax. 

Yikes! This is like an early lump sum withdrawal from your registered account.

So be an informed investor and ask how many investors are in the mutual fund trust before you invest.

And yes, we set up OCMI MFT to always have the minimum 150 investors.

OVERSEAS FRAUD SCHEMES

The RCMP and the BC Securities Commission are warning investors about overseas investment fraud schemes that involve money mules.

Money mules are recruited through online relationships or job offers and are unwitting pawns in laundering money for criminals.

The consequences for money mules (the innocent person) is possession or laundering of crime proceeds.