Rents and vacancy rates in Barrie

dnaumis

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Jul 24, 2008
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#1
Hello there,
I am thinking of purchasing a 3 bdrm freehold townhome in Barrie (hopefully somewhere near the GO). Could anyone advise what the rents would be and vacancy rates (how easy it would be to rent). If we pay $180,000 to $200,000 I`m not sure if this is a good investment and would cover mortgage and costs, with minimum downpayment.
Thanks,
Debbie
 

JoeRagona

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Registered
Jan 10, 2008
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Oakville, ON
engagedinvestor.com
#2
QUOTE (dnaumis @ Aug 3 2008, 12:01 PM) Hello there,
I am thinking of purchasing a 3 bdrm freehold townhome in Barrie (hopefully somewhere near the GO). Could anyone advise what the rents would be and vacancy rates (how easy it would be to rent). If we pay $180,000 to $200,000 I`m not sure if this is a good investment and would cover mortgage and costs, with minimum downpayment.
Thanks,
Debbie


Hi Debbie,

I invest solely in Barrie since joining REIN and I am still learning about those two particulars. I have already purchased a detached and have filtered through as many as 75 - 100 properties in the areas near the GO. My strategy at this point is to almost double the vacancy rate that is posted for Barrie. I am using 7% right now. The rents in those areas are from $1200 - $1500 depending on how the home shows and the number of bedrooms and bathrooms.

If you need someone to bounce ideas off, I would be happy to help as much as I can. I am continously analyzing properties.

Good luck.
Joey
 

dnaumis

New Forum Member
Registered
Jul 24, 2008
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#3
Thank you so much for the information and for offering to help.
Take care,
Debbie

QUOTE (JDRInvestments @ Aug 4 2008, 02:50 PM) Hi Debbie,

I invest solely in Barrie since joining REIN and I am still learning about those two particulars. I have already purchased a detached and have filtered through as many as 75 - 100 properties in the areas near the GO. My strategy at this point is to almost double the vacancy rate that is posted for Barrie. I am using 7% right now. The rents in those areas are from $1200 - $1500 depending on how the home shows and the number of bedrooms and bathrooms.

If you need someone to bounce ideas off, I would be happy to help as much as I can. I am continously analyzing properties.

Good luck.
Joey
 

invst4profit

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Aug 29, 2007
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Kingston Ontario
#5
Keep in mind if putting down the minimum of 20% ($40,000) on a $200,000 home if interest rates climb to 5-6% you will be paying $850-$950 per month in debt servicing.

Expenses in the 30-50% range will be $450- $750 on a rental income of $1500/month. You would be looking at between $1300 and $1700 per month in total costs.

If mortgage rates stay low, which they won't, and you get the max rent you might make a annual ROI of maybe $2400 on a $40,000 investment (6%). Chances are probably less.



In addition as your equity grows your ROE will diminish.



Not good enough to excite most investors.