QUOTE (Billoaji @ Apr 21 2009, 07:18 AM) Can someone put my mind at rest. I would like to invest in the Toronto condo market and wold like some opinions from investors who have done so, whether they have succeeded or not. Cash flow is positive with the properties ive choosen and renting them appears to be fairly easy but I heard on the news that people are trying to leave Toronto, Can anyone touch on this?
Thanks
OF COURSE it makes sense to buy stocks or real estate .. the question is: at what price ! Can the rent (that is dropping) sustain the value (that is dropping in short term but will go up eventually).
Please define "Toronto" !
Please define "Condo"
"condo in Toronto" is too broad a range .. GTA with 5M people all the way from Hamilton to Ajax .. or just downtown Toronto waterfront ?
high end new condos or old ones too ?
So the question should be: "Where in Toronto at what price ranges does it make sense .. and where does it not" ?
btw: I almost bought a condo in Toronto, 2BR 1000 sq ft, water front, island/water view for about $400,000 4 years ago .. and then did not .. and today that complex is about the same price, slightly higher .. maybe $425,000 to $440,000 or so. So, can you get $2500/month in rent to cover mortgage and condo fees for a long term hold ? Hard .. but not impossible ..
My rule of thumb for apartments and houses is:
apartments over $80,000/door are suspect .. and condos/houses over $300,000 are suspect as the rent usually is not high enough to cover holding costs .. but that is just me and should not sway you from buying high-end properties with potentially more equity upside but likely negative cash-flow while holding ..