- Joined
- Dec 29, 2018
- Messages
- 13
From my understand the Housing Affordability Index applies if i'm an investor in houses right? If i'm an investor in mutli family buildings, does this stat really apply?
By registering with us, you'll be able to discuss, share and private message with other members of our community.
SignUp Now!Hey Thomas,
i'm looking to buy in montreal and surroundings in quebec. Looking for 6 units up to 12 units buildings.
The party is over in all of Canada. Whoever buys today will have to have a long term time frame of way more than 10 years I'd say 15-20 years at least.
The party is over in all of Canada. Whoever buys today will have to have a long term time frame of way more than 10 years I'd say 15-20 years at least.
I’d have to respectfully disagree with you. There is money to be made in any kind of market it just involves different strategies.
As well you can not generalize the entire Canadian market. There are local market factors involved, for example when a large employer leaves town (like Oshawa and the GM plants)
The real estate market life cycle is not a national figure even if people use the national averages. There are always markets over / under performing or in different stages of the life cycle.
The mortgage rule changes resulted in less homeowners this in turn results in more renters. Regulators are looking at extending the new bank qualification rules to other lenders which would in turn result in less homeowners and more renters. It will also likely add additional downward pressure on housing prices.
Nothing is never as simple as black and white. If you feel the party is over then it’s perhaps time to look in different markets or strategies.
Sent from my iPhone using myREINspace
I think @Willyboy was referring to the 'everything works' party being over ie. never-ending cap rate compression. We have probably touched our lows or are very close to them. If you were a buyer in Vancouver in the last 12 months, I'd have some sleepless nights thinking about the prospect of rent controls. The deals I looked at were underwriting 5% CAGR rental growth to hit a 7-8% IRR.
General broad statistics matter little. Local knowledge matters far far more ie rents, asset prices, vacancies, employment, in-migration and trajectory thereof.
Where specifically do you want to buy and what size asset ?
Some good reads on how to get started here http://myreinspace.com/threads/educational-rein-posts-by-thomas-beyer.10663/
Thanks for your feedback Willyboy. Did you use the ACRE system in evaluating the building ? does acre apply to those types of properties?
example: cash fow zone, the goldmine card...