I wonder how do you see the condo prices in Yonge area- Toronto in next 6 months decline or going up? How much per foot should be an existing condo vs . new one? how much should be the downpayment to leverage the investment? how many rooms is the most interesting investment? Fix or variable rate?
Condo in Yonge area- Toronto
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QUOTE (faboboren @ Nov 26 2010, 02:48 PM) I wonder how do you see the condo prices in Yonge area- Toronto in next 6 months decline or going up? How much per foot should be an existing condo vs . new one? how much should be the downpayment to leverage the investment? how many rooms is the most interesting investment? Fix or variable rate?
Speaking for myself I don`t think condos on Yonge St. in Toronto are good investments.
In my opinion, with regards to predicting the future of prices - I don`t know, and neither does anybody else.
Prices on Yonge St. are around $520 a sq ft or higher for existing. I don`t know the prices for new. My guess would be that they`re competitive.
If you do a low downpayment, you won`t cash flow. If you do a high downpayment, your cash-on-cash return will be GIC-like.
Speaking for myself I don`t think condos on Yonge St. in Toronto are good investments.
In my opinion, with regards to predicting the future of prices - I don`t know, and neither does anybody else.
Prices on Yonge St. are around $520 a sq ft or higher for existing. I don`t know the prices for new. My guess would be that they`re competitive.
If you do a low downpayment, you won`t cash flow. If you do a high downpayment, your cash-on-cash return will be GIC-like.
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QUOTE (faboboren @ Nov 26 2010, 02:48 PM) I wonder how do you see the condo prices in Yonge area- Toronto in next 6 months decline or going up? How much per foot should be an existing condo vs . new one? how much should be the downpayment to leverage the investment? how many rooms is the most interesting investment? Fix or variable rate?
Faboboren,
Yonge Street is a long street.
Which areas on Yonge are you refering to?
The Yonge and 401 area has been on fire in recent years.
Brian Persaud would be the man to talk to about this.
Best Regards,
Neil.
Faboboren,
Yonge Street is a long street.
Which areas on Yonge are you refering to?
The Yonge and 401 area has been on fire in recent years.
Brian Persaud would be the man to talk to about this.
Best Regards,
Neil.
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QUOTE (faboboren @ Nov 26 2010, 12:48 PM) I wonder how do you see the condo prices in Yonge area- Toronto in next 6 months decline or going up? How much per foot should be an existing condo vs . new one? how much should be the downpayment to leverage the investment? how many rooms is the most interesting investment? Fix or variable rate?
I would carefully consider the time frame of your investment. If you feel that the performance of market prices in the next 6 months is key, real estate might not be the type of investment for you, as it`s very illiquid and switching costs are high. If you might need the money in 6 months, I`d probably keep it in a cash-equivalent. If your plan involves holding real estate for an extended period of time, then what happens in the next 6 months doesn`t matter.
Michael
I would carefully consider the time frame of your investment. If you feel that the performance of market prices in the next 6 months is key, real estate might not be the type of investment for you, as it`s very illiquid and switching costs are high. If you might need the money in 6 months, I`d probably keep it in a cash-equivalent. If your plan involves holding real estate for an extended period of time, then what happens in the next 6 months doesn`t matter.
Michael
Michael beat me to the punch.
If you look at any Real Estate investment over 6 months it will probably not look the best. (Quick turn and flips aside). You have a bunch of up front costs that you need to recoup over the life of the investment. You basically have zero mortgage pay down. Cash flow in the first 2 - 3 years is not the best as you probably need to hold it for at least one or two cycle of renters to get a better rent. If I was looking short term there are better things to put your money in that are secure and have lower barriers to entry.
Regards,
If you look at any Real Estate investment over 6 months it will probably not look the best. (Quick turn and flips aside). You have a bunch of up front costs that you need to recoup over the life of the investment. You basically have zero mortgage pay down. Cash flow in the first 2 - 3 years is not the best as you probably need to hold it for at least one or two cycle of renters to get a better rent. If I was looking short term there are better things to put your money in that are secure and have lower barriers to entry.
Regards,
QUOTE (Rickson9 @ Nov 26 2010, 03:04 PM) Speaking for myself I don`t think condos on Yonge St. in Toronto are good investments.
In my opinion, with regards to predicting the future of prices - I don`t know, and neither does anybody else.
Prices on Yonge St. are around $520 a sq ft or higher for existing. I don`t know the prices for new. My guess would be that they`re competitive.
If you do a low downpayment, you won`t cash flow. If you do a high downpayment, your cash-on-cash return will be GIC-like.
I thought $ 520 a sq st is for new. I already have a 20 years old condo, and is $ 380 a sq ft. I think is a good conservative investment, 3% 0r 4% return, let say over 300K condo around $ 1,000 a month. What do you consider a good investments? examples? Thanks
In my opinion, with regards to predicting the future of prices - I don`t know, and neither does anybody else.
Prices on Yonge St. are around $520 a sq ft or higher for existing. I don`t know the prices for new. My guess would be that they`re competitive.
If you do a low downpayment, you won`t cash flow. If you do a high downpayment, your cash-on-cash return will be GIC-like.
I thought $ 520 a sq st is for new. I already have a 20 years old condo, and is $ 380 a sq ft. I think is a good conservative investment, 3% 0r 4% return, let say over 300K condo around $ 1,000 a month. What do you consider a good investments? examples? Thanks
QUOTE (NeilUttamsingh @ Nov 26 2010, 03:36 PM) Faboboren,
Yonge Street is a long street.
Which areas on Yonge are you refering to?
The Yonge and 401 area has been on fire in recent years.
Brian Persaud would be the man to talk to about this.
Best Regards,
Neil.
Let`s say Yonge and Sheppard, or Eglinton, or Davisville, or Downtown? what is Brian doing?
Yonge Street is a long street.
Which areas on Yonge are you refering to?
The Yonge and 401 area has been on fire in recent years.
Brian Persaud would be the man to talk to about this.
Best Regards,
Neil.
Let`s say Yonge and Sheppard, or Eglinton, or Davisville, or Downtown? what is Brian doing?
QUOTE (bizaro86 @ Nov 26 2010, 10:14 PM) I would carefully consider the time frame of your investment. If you feel that the performance of market prices in the next 6 months is key, real estate might not be the type of investment for you, as it`s very illiquid and switching costs are high. If you might need the money in 6 months, I`d probably keep it in a cash-equivalent. If your plan involves holding real estate for an extended period of time, then what happens in the next 6 months doesn`t matter.
Michael
I do not need the money in 6 months, what I wonder if the prices are going down as we see a downturn in number of transactions. I want it for rent to somebody else (investment). My question is wait to buy cheaper or buy now with low rates in Mortgage?
Michael
I do not need the money in 6 months, what I wonder if the prices are going down as we see a downturn in number of transactions. I want it for rent to somebody else (investment). My question is wait to buy cheaper or buy now with low rates in Mortgage?
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QUOTE (faboboren @ Nov 28 2010, 02:51 PM) I thought $ 520 a sq st is for new. I already have a 20 years old condo, and is $ 380 a sq ft. I think is a good conservative investment, 3% 0r 4% return, let say over 300K condo around $ 1,000 a month. What do you consider a good investments? examples? Thanks
$520 p sq ft is for condos 10 years old from my perspective as an owner and seller of condos on Yonge.
With re: good investment. Only speaking for myself, if I were to spend $300k I would need to receive at least $60k in gross rent per year. Otherwise, alternative investments would be more attractive for me.
For me, spending $300k to get $12k a year in rent isn`t a good investment, but different individuals are satisfied with different things.
I hope this helps! Best regards.
$520 p sq ft is for condos 10 years old from my perspective as an owner and seller of condos on Yonge.
With re: good investment. Only speaking for myself, if I were to spend $300k I would need to receive at least $60k in gross rent per year. Otherwise, alternative investments would be more attractive for me.
For me, spending $300k to get $12k a year in rent isn`t a good investment, but different individuals are satisfied with different things.
I hope this helps! Best regards.
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$60,000/year would of course be an excellent return on a condo in T.O. but the fact is condos are generally a poor investment as a income property in Toronto.
As a minimum you need $2500 per month rental income on a $300,000 investment and that is a bare minimum by my standards. It`s not worth the headaches or risks associated with Toronto tenants. Forget about the fact that with a monthly income of $1000 you will have to dip into your own pocket to the tune of another $1000 every month to carry the property. At that rate it will take 30 years to break even.
As a minimum you need $2500 per month rental income on a $300,000 investment and that is a bare minimum by my standards. It`s not worth the headaches or risks associated with Toronto tenants. Forget about the fact that with a monthly income of $1000 you will have to dip into your own pocket to the tune of another $1000 every month to carry the property. At that rate it will take 30 years to break even.
QUOTE (invst4profit @ Nov 28 2010, 04:37 PM) $60,000/year would of course be an excellent return on a condo in T.O. but the fact is condos are generally a poor investment as a income property in Toronto.
As a minimum you need $2500 per month rental income on a $300,000 investment and that is a bare minimum by my standards. It`s not worth the headaches or risks associated with Toronto tenants. Forget about the fact that with a monthly income of $1000 you will have to dip into your own pocket to the tune of another $1000 every month to carry the property. At that rate it will take 30 years to break even.
Greg,
I have a condo today, and I do not put another $ 1,000 month. What is $ 60,000 return investment, and what is the risk?
As a minimum you need $2500 per month rental income on a $300,000 investment and that is a bare minimum by my standards. It`s not worth the headaches or risks associated with Toronto tenants. Forget about the fact that with a monthly income of $1000 you will have to dip into your own pocket to the tune of another $1000 every month to carry the property. At that rate it will take 30 years to break even.
Greg,
I have a condo today, and I do not put another $ 1,000 month. What is $ 60,000 return investment, and what is the risk?
QUOTE (Rickson9 @ Nov 28 2010, 01:15 PM) $520 p sq ft is for condos 10 years old from my perspective as an owner and seller of condos on Yonge.
With re: good investment. Only speaking for myself, if I were to spend $300k I would need to receive at least $60k in gross rent per year. Otherwise, alternative investments would be more attractive for me.
For me, spending $300k to get $12k a year in rent isn`t a good investment, but different individuals are satisfied with different things.
I hope this helps! Best regards.
Rick,
Ok what is $ 60k investment return or 20%? what is the risk?
With re: good investment. Only speaking for myself, if I were to spend $300k I would need to receive at least $60k in gross rent per year. Otherwise, alternative investments would be more attractive for me.
For me, spending $300k to get $12k a year in rent isn`t a good investment, but different individuals are satisfied with different things.
I hope this helps! Best regards.
Rick,
Ok what is $ 60k investment return or 20%? what is the risk?
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QUOTE (faboboren @ Nov 30 2010, 11:45 AM) Rick,
Ok what is $ 60k investment return or 20%? what is the risk?
Speaking for myself, risk is not an absolute term. Risk is associated with 1) knowledge of the asset and 2) price of the asset. What I would consider `risky` may be considered `prudent` for another, and vice versa.
Investing in an asset may not be as risky for me because I may be somewhat knowledgeable about the asset compared with others, and vice versa.
A 20% gross return was available to me in stocks until the summer of this year (BKE, FOSL). This return is still available to me in U.S. real estate (Phoenix condos).
I have experience buying, renting and selling Yonge St. condos and I consider Yonge St. condos to be risky based on their price. Paying hundreds of thousands of dollars per door in order to generate $1200 a month is risky for me.
Each individual must invest in a way that is comfortable for them and where they have the knowledge about the asset in order to minimize risk.
Best regards.
Ok what is $ 60k investment return or 20%? what is the risk?
Speaking for myself, risk is not an absolute term. Risk is associated with 1) knowledge of the asset and 2) price of the asset. What I would consider `risky` may be considered `prudent` for another, and vice versa.
Investing in an asset may not be as risky for me because I may be somewhat knowledgeable about the asset compared with others, and vice versa.
A 20% gross return was available to me in stocks until the summer of this year (BKE, FOSL). This return is still available to me in U.S. real estate (Phoenix condos).
I have experience buying, renting and selling Yonge St. condos and I consider Yonge St. condos to be risky based on their price. Paying hundreds of thousands of dollars per door in order to generate $1200 a month is risky for me.
Each individual must invest in a way that is comfortable for them and where they have the knowledge about the asset in order to minimize risk.
Best regards.