- Joined
- Sep 24, 2009
- Messages
- 35
Someone suggested Winnipeg, Manitoba as a good place to invest. Out of curiosity, I decided to just take a look at the properties. I'm living in Surrey, BC, and I'm nowhere near having enough to invest here, so I was very interested in the more affordable housing markets in other provinces.
A quick mls.ca search in Winnipeg shows some promises properties. To the point where it seems too good to be true. One extreme example I saw was a 3 bedroom home for $98,500 currently rented for $1000/month and the tenants are willing to pay $4000 to stay as tenants.
I realize rental units are hard to come by there, but why are people paying those kind of rents for a property they could buy. The minimum down for a personal property is 5% isn't it. Why not put an extra $925 down and buy it? Even at 6% and a 25 year amortization the mortgage payment is only ~$600.
If this was the only property like that, I'd just assume there is something seriously wrong with the property. However, I found several properties that cash flowed very easily.
Not to look a gift horse in the mouth, but what am I missing here? Seems too good to be true and just doesn't make sense to me. Anyone have any insight? Anyone already investing in that area?
A quick mls.ca search in Winnipeg shows some promises properties. To the point where it seems too good to be true. One extreme example I saw was a 3 bedroom home for $98,500 currently rented for $1000/month and the tenants are willing to pay $4000 to stay as tenants.
I realize rental units are hard to come by there, but why are people paying those kind of rents for a property they could buy. The minimum down for a personal property is 5% isn't it. Why not put an extra $925 down and buy it? Even at 6% and a 25 year amortization the mortgage payment is only ~$600.
If this was the only property like that, I'd just assume there is something seriously wrong with the property. However, I found several properties that cash flowed very easily.
Not to look a gift horse in the mouth, but what am I missing here? Seems too good to be true and just doesn't make sense to me. Anyone have any insight? Anyone already investing in that area?