Author Topic: Canadian Real Estate Investors?  (Read 799 times)

daverobev

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Canadian Real Estate Investors?
« on: September 02, 2017, 10:28:21 AM »
I'm kind've getting itchy feet - sold my last rental earlier this year, and I miss having one.

Any Canadian investors here - not that you have to BE Canadian, but you're investing IN Canada.

I'm currently thinking of buying a 'cheapie' - somewhere in NB, perhaps. I am not at all interested in non-cashflowing stuff, stuff in and around Toronto/Vancouver. Probably not Quebec either (I live in Ontario - I have no issue being a long distance landlord, and in fact I'd prefer it that way - I will be paying someone to manage whatever property).

Not against the idea of doing multi-family. There's realistically no way I would choose to put *large* sums of money in, though I am OK with getting a mortgage.

I think for a rental you need 30% down? The ideal property would be something $100k or under, but I'd go up to $200k I guess if it made the numbers work better. Ideally freehold, no condo stuff.

Thoughts/suggestions?
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snacky

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Re: Canadian Real Estate Investors?
« Reply #1 on: September 02, 2017, 11:38:05 AM »
I have a rental in Manitoba. It cash flows nicely. Property is cheap in the maritimes but rents are lower, from what I understand, and vacancy rates are higher.

Buying in van or the gta makes no sense.
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daverobev

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Re: Canadian Real Estate Investors?
« Reply #2 on: September 02, 2017, 12:17:50 PM »
I have a rental in Manitoba. It cash flows nicely. Property is cheap in the maritimes but rents are lower, from what I understand, and vacancy rates are higher.

Buying in van or the gta makes no sense.

Winnipeg? Or small town stuff?

Do you know the area, or did you convert it from a primary residence?

Risk's lower, owning a number of cheap properties... One will always be causing problems.
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snacky

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Re: Canadian Real Estate Investors?
« Reply #3 on: September 02, 2017, 02:15:47 PM »
Winnipeg.

I moved out of my small house and turned it into a rental. Moved into a bigger house, where I rent out rooms. I intend to buy a duplex in the next year or two, as well. RE investing in this part of the country is easy and lucrative.
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daverobev

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Re: Canadian Real Estate Investors?
« Reply #4 on: September 02, 2017, 03:01:29 PM »
Winnipeg.

I moved out of my small house and turned it into a rental. Moved into a bigger house, where I rent out rooms. I intend to buy a duplex in the next year or two, as well. RE investing in this part of the country is easy and lucrative.

Care to give some numbers - PM if you don't feel comfortable sharing? Not to worry if not, I'll have a look on MLS and do some research of my own. Thanks!
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ElleFiji

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Re: Canadian Real Estate Investors?
« Reply #5 on: September 02, 2017, 08:28:01 PM »
I'd look at free hold towns/little old houses in university cities. Or a cottage to rent. But I don't have my down payment.

I wouldn't want to deal with out of province property managers.

But if you buy in Winnipeg, you could hire snacky.

StephenP

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Re: Canadian Real Estate Investors?
« Reply #6 on: September 09, 2017, 09:28:48 AM »
Since you're in Ontario, you should consider the changes to being a landlord that rolled out this year. It kills a lot of landlord incentive, and people that have been professional landlords can't get out fast enough.

In the past month I've seen one purpose-built rental unit under construction change to a condo as a result, and a number of rental buildings are being sold at a fraction of single-family comps. I'm in downtown Toronto, been offered a few apartment blocks at about 1/3 of the price per sqft of homes in the area.

Not sure if current landlords are over-reacting, but I'm keeping an eye on filings from the LTB. I would like to see how the government handles above guideline rent raises when expenses spike, because it's pretty unclear right now.

jooniFLORisploo

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Re: Canadian Real Estate Investors?
« Reply #7 on: September 09, 2017, 09:41:08 AM »
I did it before, but wouldn't again anywhere in BC for the reasons Stephen mentioned for Ontario. So I'm only looking at places I can include a roommate in my own home, so that tenancy laws don't apply and a stranger doesn't control the unit I put all my money into.

frugalcanuck

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Re: Canadian Real Estate Investors?
« Reply #8 on: September 09, 2017, 06:43:56 PM »
I'm also a bit itchy to get in.  It will be my first. 
What are the thoughts on this board about this...  If we decide to have another child then we will want a larger house.  So my plan is to buy a house that would have enough room for us if we grow our family, and rent it out.  While renting it out, it is my understanding that any upgrades we pay for while renting would be tax deductible.

daverobev

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Re: Canadian Real Estate Investors?
« Reply #9 on: September 11, 2017, 09:42:49 AM »
I'm also a bit itchy to get in.  It will be my first. 
What are the thoughts on this board about this...  If we decide to have another child then we will want a larger house.  So my plan is to buy a house that would have enough room for us if we grow our family, and rent it out.  While renting it out, it is my understanding that any upgrades we pay for while renting would be tax deductible.

No. *Improvements* can only be depreciated. Repairs can be expensed.

If you depreciate (claim CCB), then that will be treated as income if you sell (or convert to primary) when the house is worth more.
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Reggie

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Re: Canadian Real Estate Investors?
« Reply #10 on: September 18, 2017, 11:47:13 AM »
I bought my first rental property last year. I thought about a long time and settled on a small Northern Ontario town where I have family (who can help look after it).  The prices were really cheap ($185,000 for a 4plex) and there is pretty good demand for rentals.  The property needed lots of renovations and maintenance but It now generates more than $1,000 a month in cash flow.  My total investment with the down payment was about $60,000.

Looking at buying another similar one shortly.  In smaller towns, there is much less opportunity for appreciation of values but the cash flow rates seem much higher.
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Prairie Gal

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Re: Canadian Real Estate Investors?
« Reply #11 on: November 05, 2017, 09:21:25 AM »
I bought my first rental property last year. I thought about a long time and settled on a small Northern Ontario town where I have family (who can help look after it).  The prices were really cheap ($185,000 for a 4plex) and there is pretty good demand for rentals.  The property needed lots of renovations and maintenance but It now generates more than $1,000 a month in cash flow.  My total investment with the down payment was about $60,000.

Looking at buying another similar one shortly.  In smaller towns, there is much less opportunity for appreciation of values but the cash flow rates seem much higher.

Are you saying the whole 4plex (all 4 units) was $185,000? Or just one unit? If it was all four, then that is crazy low!

I have been thinking about dipping my toe in the RE investment pool. My house is paid for, so I would get a HELOC to finance the rental, or a combination of HELOC and mortgage (on the rental). I can get a 3/1.5 townhouse for around $135 K, and I think I could get about $1300 for rent.

Does this sound like a feasible idea?

Reggie

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Re: Canadian Real Estate Investors?
« Reply #12 on: November 10, 2017, 04:21:38 AM »
I bought my first rental property last year. I thought about a long time and settled on a small Northern Ontario town where I have family (who can help look after it).  The prices were really cheap ($185,000 for a 4plex) and there is pretty good demand for rentals.  The property needed lots of renovations and maintenance but It now generates more than $1,000 a month in cash flow.  My total investment with the down payment was about $60,000.

Looking at buying another similar one shortly.  In smaller towns, there is much less opportunity for appreciation of values but the cash flow rates seem much higher.


Are you saying the whole 4plex (all 4 units) was $185,000? Or just one unit? If it was all four, then that is crazy low!

I have been thinking about dipping my toe in the RE investment pool. My house is paid for, so I would get a HELOC to finance the rental, or a combination of HELOC and mortgage (on the rental). I can get a 3/1.5 townhouse for around $135 K, and I think I could get about $1300 for rent.

Does this sound like a feasible idea?

Yes. The fourplex was $185,000 and generated $3,000 in rents but needed a lot of work.  6 months later it generated $3,500.

I just purchased second one. This time it's a triplex for $190,000 generating $3,000 but needed a lot less work.

These are in a small town without much property appreciation so the high ROEs make up for it. But the rental market is still very strong and still lots of demand.

I would say, if you don't doing most of the work yourself and dealing with finding tenants etc. then RE is a good idea as long as you buy under market value and not in a bubble market.
Raising 2 kids in Canada and trying to achieve FI before age 30.

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