First Time Investment

[Jamo905]

Hey All -



I'm interested in purchasing an investment property for the first time in Toronto. Hoping that someone has some advice for me with regards to what areas in the city would be a good place to begin.



I was thinking about a minimum 2 bdrm + 1bath condo not exceeding $160k



Any suggestions?

 

[Thomas Beyer]

[quote user=Jamo905] minimum 2 bdrm + 1bath condo not exceeding $160k


does that exist in Toronto ?



maybe fringes of GTA or better: in Hamilton or KWC or Barrie.. one of the Top 5 towns in Ontario !



my blog has some entries in oct 2009 on "how to get started" that may interest you !

 

[Jamo905]

Thanks for responding.



It does exist in Toronto, but not in the areas that most people would go to.



What type of things (properties) did you look for when you first started out?

 

[Thomas Beyer]

[quote user=Jamo905]

What type of things (properties) did you look for when you first started out?


a) did I have enough cash to mortgage

b) could I get a mortgage

c) would it cash-flow or be at least break even

d) who would impeccably manage it so I don't get bothered for 5 years

e) is it in an area of the world with upside





The first one was a rental pooled condo in Calgary for 80K( 20K cash, 60K mortgage) in 1997 and rented for about $700. Sold in about 2006 for 170K ..

 

[Jamo905]

Okay well A scenerio that has come my way:



$89900 for a 2 bedroom + 1 bath condo in Westend Toronto

Been completely renovated, currently tenanted, reasonable condo fees.



However, there is a special assessment on the building (ends in Aug), not the greatest area, but not the worst either.



I like the price but not too sure about resale. Mortgage is fine, cash flow would be fine. Just concerned with the resale.

 

[housingrental]

What is consistency of being able to collect rent off tenant profile?

Is there likely valuation boost on building in future that is beyond cost of purchase + special assessment?

Do you have the interest and management skills for this type of investment or do you have a property manager with expertise in that niche lined up?



Answering these questions for yourself should help tell you if this investment could work for you.



As for area's - At that price point you might be better to look for a townhouse in other area's in the golden horseshoe.



Hope this helps

 

[markl]

We have had some success in condo's in that price range in Toronto. I have a client who has bought 4 in the last year and is cash flowing the properties pretty well. Area is pretty good and is improving.



The biggest thing to watch out for is the condo fees some of these properties are older and the condo fees are double your mortgage payments.

 

[Jamo905]

Thanks for all the help so far. Its really good to get this information from people who have been/going through it.



Still making a decision though. Condo fees are out of control as well. It doesn't sit well when they will be double what your mortgage is.

 

[Jbrowning]

If you keep running into dead ends in Toronto for your price range vs. quality property (which equals quality tenant profile)....give me a shout. You would be able to get a lot more up my way (Orillia/Barrie) for your investment dollars.



Jason

 

[GaryMcGowan]

I would start looking outside of Toronto.

Perhaps Hamilton, Barrie, Whitby/Ajax.