Welcome!

By registering with us, you'll be able to discuss, share and private message with other members of our community.

SignUp Now!

Good price per condo in Calgary beltine?

Thomas Beyer

0
REIN Member
Joined
Aug 30, 2007
Messages
13,881
QUOTE (schoobie @ Oct 7 2010, 08:38 PM) .. I am not to sure how much to counter offer, or if I should at all?

..
How does the property look like ? Nice ?

How many vacancies ?

How about the area around it ? nice ?

How is the parking lot ? How about the state of common property elements: hallway carpets, boiler, roof, windows, lights, doors, mailboxes ? nice / upgraded ?

How healthy is the reserve fund ?

130 for a 1BR below ground is NOT a great deal .. you can buy those ALL DAY LONG in Edmonton or area for 85 to 100 with similar rents !!

TAKE YOUR TIME ! DO MORE HOMEWORK !!
 

bizaro86

0
Registered
Joined
Jan 29, 2008
Messages
1,025
QUOTE (schoobie @ Oct 7 2010, 09:38 PM) My mortgage broker quoted me 35 years and payments of $340 or $380 monthly depending on the final purchase price ($120k to $150k), plus condo fees of $250, property taxes of $80, maintenance of $50, vacancy $90, all-in will put the cost between $810 and $850, rents there are going for $850-$950. Resulting in a potential positive cashflow from $0 to $140.

What are the details on your mortgage? A 120,000 purchase with with 20% down amortized at 35 years requires an interest rate of ~2.45% for payments to be only $341, which suggest to me that you intend to get a variable rate mortgage. You mentioned your intended holding period is forever. Do you expect interest rates to remain at there current levels for the duration of that holding period? I would consider running the numbers with a more conservative interest rate, to ensure that even if rates rise you`ll still be ok.
Regards

Michael
 

schoobie

0
Registered
Joined
Jun 29, 2008
Messages
25
QUOTE (bizaro86 @ Oct 8 2010, 09:10 AM) Do you expect interest rates to remain at there current levels for the duration of that holding period? I would consider running the numbers with a more conservative interest rate, to ensure that even if rates rise you`ll still be ok.

Good thinking, thanks!
 

schoobie

0
Registered
Joined
Jun 29, 2008
Messages
25
My answers in blue.

QUOTE (ThomasBeyer @ Oct 7 2010, 10:14 PM) How does the property look like ? Nice ? Yes, but not like built in 2010, it is a 1960 renovated building, so it shows really well for its age.
How many vacancies ? Unknown, to me it looks almost fully occupied by looking at the balconies and poeple names at the main front door.
How about the area around it ? nice ? No, just average.
How is the parking lot ? How about the state of common property elements: hallway carpets, boiler, roof, windows, lights, doors, mailboxes ? nice / upgraded ? All nice and upgraded from what I remember, I am going again later today for a second visual inspection.
How healthy is the reserve fund ? Still need tocheck condo docs as part of the condition to purchase
.
130 for a 1BR below ground is NOT a great deal .. you can buy those ALL DAY LONG in Edmonton or area for 85 to 100 with similar rents !! This is my 3rd rental property, and I want to have them close to where I live (Calgary) that way I can manage them myself.
TAKE YOUR TIME ! DO MORE HOMEWORK !!
You are right, I still need to dig a little bit more.

Thanks for all the pointers!
 
Top Bottom