Brantford, Ontario CAPs
- Thread starter Nir
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good: 7.5%+ .. acceptable 6.5%
both on REALISTIC REVENUES, VACANCIES AND EXPENSES !!
both on REALISTIC REVENUES, VACANCIES AND EXPENSES !!
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[quote user=ThomasBeyer]good: 7.5%+ .. acceptable 6.5%
Thanks Thomas. That's very true based on what I find there!
I'm surprised it is not higher than Hamilton though(!?)
In Hamilton 7.3% CAP is considered ok/average. Therefore I'd expect at least 8% in
Brantford which is 30 minutes farther from Toronto just to mention one reason.
Regards,
Neil
Thanks Thomas. That's very true based on what I find there!
I'm surprised it is not higher than Hamilton though(!?)
In Hamilton 7.3% CAP is considered ok/average. Therefore I'd expect at least 8% in
Brantford which is 30 minutes farther from Toronto just to mention one reason.
Regards,
Neil
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Hi Neil
A true 7.3% cap is not OK in Hamilton. Its considered WOW or more commonly - unlikely to actually meet that number due to some combination of deferred maintenance eating up cash flow, vacancy, non-collected rent.
Stay away from Brantford and stick to Hamilton unless you know the market very very well... and then you wouldn't want to buy!!!
A true 7.3% cap is not OK in Hamilton. Its considered WOW or more commonly - unlikely to actually meet that number due to some combination of deferred maintenance eating up cash flow, vacancy, non-collected rent.
Stay away from Brantford and stick to Hamilton unless you know the market very very well... and then you wouldn't want to buy!!!
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[quote user=housingrental]Hi Neil
Stay away from Brantford and stick to Hamilton unless you know the market very very well... and then you wouldn't want to buy!!!
Hi Adam,
Interesting. What is the main reason you strongly recommend not to invest in Brantford? vacancy rate? tenant profile? Are you suggesting REIN incorrectly ranked Brantford among Ontario's top investment towns in their latest report?
Specifically how is Terrace Hill in Brantford? I was recently told about a few private sales in this area.
Thanks,
Neil
Stay away from Brantford and stick to Hamilton unless you know the market very very well... and then you wouldn't want to buy!!!
Hi Adam,
Interesting. What is the main reason you strongly recommend not to invest in Brantford? vacancy rate? tenant profile? Are you suggesting REIN incorrectly ranked Brantford among Ontario's top investment towns in their latest report?
Specifically how is Terrace Hill in Brantford? I was recently told about a few private sales in this area.
Thanks,
Neil
- Joined
- Oct 10, 2007
- Messages
- 4,730
High vacancies
Quality of housing stock - lots of deferred maintenance on many properties
Tenant profile issues
Cheap housing stock + lack of restrictions = lots of potential for continued increases in supply of rentals
+ lots of potential in city areas for redevelopment = new supply, higher quality products
Current economic issues
As far as I know REIN's top investment towns are based on potential for future growth in city - not a recommendation to go buy in that area or that you can find great investments in it - but a good place to start for further due diligence to see if anything appropriate can be found because of the long term potential for above average appreciation. Maybe someone from REIN can comment on this.
Quality of housing stock - lots of deferred maintenance on many properties
Tenant profile issues
Cheap housing stock + lack of restrictions = lots of potential for continued increases in supply of rentals
+ lots of potential in city areas for redevelopment = new supply, higher quality products
Current economic issues
As far as I know REIN's top investment towns are based on potential for future growth in city - not a recommendation to go buy in that area or that you can find great investments in it - but a good place to start for further due diligence to see if anything appropriate can be found because of the long term potential for above average appreciation. Maybe someone from REIN can comment on this.