To Sell Condo or not to Sell...
- Thread starter mike81
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- Sep 28, 2011
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- 3
I can tell from my own experience. I own a condo 1 bedroom + den in downtown Toronto (London on Esplanade) behind Humming Birds Center. I bought it in 2007 for $340,000 on paper. In Dec 2009 it was completed and I paid including the closing costs $367,000 (20% down payment + line of credit). This year bank valued it at $450,000. That is appreciation of $83,000 for 2 years .
I took line of credit instead of mortgage on it and as a result I have positive cash flow of $130 when I rented it at $1800. But I do not pay down the mortgage.
Just this month I was renting it again as current tenants decided to move out. I put it on the market as I thought at high rent of $1980. I got four offers within a week. Agents were showing it every hour within 3 days. The demand was so high. There was a bidding war to rent that I did not expect at all and never heard of.
I finally rented it at $2100 to A+ tenant. Got another offer of $2050 and another couple offered to pay 4 month rent upfront - almost $8000. Now I will have about $400 cash flow every month.
I agree that a lot of condos are being built. But at the same time the demand is still high for the central areas of Toronto close to subway and with good amenities.
Households are formed these days differently. A lot of single people prefer to buy a small place but their own instead of renting. Couples with the kids do not mind living in condo in downtown instead of in a house in the suburbs. So whether we see oversupply of condos or not is questionable.
I did not put any money down to buy this property. I borrowed all the money taking 20% down payment from my house equities and I already made $83,000 2 years later. That allowed me to repay the house equity this year that I borrowed. I do not think it is bad.
I cannot give an advice to sell or not but I strongly recommend to talk to the agents who sell/rent condos a lot to see the demand for your particular condo and appreciation it has so far. Also I would just recommend to rent it unfurnished. From my experience furnishing is not really popular and not profitable. You will limit your market if you rent it furnished.
I did not decide yet how long I am going to keep my condo. I was thinking of selling it 2014. But when I saw this high rental demand I started to re-evaluate my plans. Good luck !
I took line of credit instead of mortgage on it and as a result I have positive cash flow of $130 when I rented it at $1800. But I do not pay down the mortgage.
Just this month I was renting it again as current tenants decided to move out. I put it on the market as I thought at high rent of $1980. I got four offers within a week. Agents were showing it every hour within 3 days. The demand was so high. There was a bidding war to rent that I did not expect at all and never heard of.
I finally rented it at $2100 to A+ tenant. Got another offer of $2050 and another couple offered to pay 4 month rent upfront - almost $8000. Now I will have about $400 cash flow every month.
I agree that a lot of condos are being built. But at the same time the demand is still high for the central areas of Toronto close to subway and with good amenities.
Households are formed these days differently. A lot of single people prefer to buy a small place but their own instead of renting. Couples with the kids do not mind living in condo in downtown instead of in a house in the suburbs. So whether we see oversupply of condos or not is questionable.
I did not put any money down to buy this property. I borrowed all the money taking 20% down payment from my house equities and I already made $83,000 2 years later. That allowed me to repay the house equity this year that I borrowed. I do not think it is bad.
I cannot give an advice to sell or not but I strongly recommend to talk to the agents who sell/rent condos a lot to see the demand for your particular condo and appreciation it has so far. Also I would just recommend to rent it unfurnished. From my experience furnishing is not really popular and not profitable. You will limit your market if you rent it furnished.
I did not decide yet how long I am going to keep my condo. I was thinking of selling it 2014. But when I saw this high rental demand I started to re-evaluate my plans. Good luck !
- Joined
- May 1, 2012
- Messages
- 1
Hi there,
I typically visit these Forums without replying but after reading some of these comments I wanted to let you know that you have the right idea with renting out the unit as a furnished suite.
1. Did you ended up selling the unit?
I know 2 people that have units in City Place in Toronto, and they are currently being rented out as Furnished Rentals with positive cash flow at the end of the month.
With whatever direction you chose to go with, I'm sure it will work out positively.
If you want to reach out to me, you can email me at [email protected] and also I am listed under the same email on Linkedin
I typically visit these Forums without replying but after reading some of these comments I wanted to let you know that you have the right idea with renting out the unit as a furnished suite.
1. Did you ended up selling the unit?
I know 2 people that have units in City Place in Toronto, and they are currently being rented out as Furnished Rentals with positive cash flow at the end of the month.
With whatever direction you chose to go with, I'm sure it will work out positively.
If you want to reach out to me, you can email me at [email protected] and also I am listed under the same email on Linkedin
- Joined
- Sep 3, 2012
- Messages
- 82
[quote user=mike81]the majority of ppl ived asked say to sell it and wipe my hands clean.... but then i tend to the opposite of what the majority ppl would do 
Hi Mike- I'm responding based on your highlighted quote. Although I have owned and managed an income property for many years, I am not an expert as those that I have had the privilege to read here in the last couple of months.
I am a die-hard contrarian trader/speculator especially when it comes to main-stream-media and consensus. However, notwithstanding the occasional censorship by the moderator, this board is not main-stream propaganda. Separate the wheat from the chaff as you should but IMHO, I would not discount the advice you have received here in the early part of your thread.
Hi Mike- I'm responding based on your highlighted quote. Although I have owned and managed an income property for many years, I am not an expert as those that I have had the privilege to read here in the last couple of months.
I am a die-hard contrarian trader/speculator especially when it comes to main-stream-media and consensus. However, notwithstanding the occasional censorship by the moderator, this board is not main-stream propaganda. Separate the wheat from the chaff as you should but IMHO, I would not discount the advice you have received here in the early part of your thread.
- Joined
- Oct 24, 2012
- Messages
- 1
Rent Rent and Rent! Renting is like a hen that lays golden eggs every month .. With property prices rising so increasingly, its a smart option to rent and wait for some more time to let the property value get even more. But ya make sure you get the right tenants. For this you can hire a property management firm..i would suggest Hunter Rentals. They are good and wont charge much either.
Hello,
A co-worker of mine has just sold one his two condos in TO (corner of yonge and shepard). He is hoping to sell the 2nd condo soon. He took the profits off the table and bought a very good value home on the mountin in Hamilton that cash flows, even after dropping rent by 20% discount if he had to. He was always worrying about his TO condos and the stress alone made it not worth it.
Not sure what others think on the forum but there is probably a more solid upside for prices as well.
Mike
A co-worker of mine has just sold one his two condos in TO (corner of yonge and shepard). He is hoping to sell the 2nd condo soon. He took the profits off the table and bought a very good value home on the mountin in Hamilton that cash flows, even after dropping rent by 20% discount if he had to. He was always worrying about his TO condos and the stress alone made it not worth it.
Not sure what others think on the forum but there is probably a more solid upside for prices as well.
Mike
I think that you need to consider all your overhead expenses.. you said you break even, so thats ok. In my opinion, if you keep it you should remember that you may be subject to rental controls, so check with rental authorities on increases. When I contemplate such issues, I always look at the long-term benefit that you may enjoy. If you consider it, in 20 years you will have your mortgage paid off, and when you will be retiring at least you will be financially secure and living comfy with monthly cash-flow! In case there comes a time that you absolutely must sell, do you think that the property would be able to sell?
- Joined
- Aug 30, 2007
- Messages
- 13,879
[quote user=housingrental]Bank account
Effectively no risk - Other than quasi government body defaulting on him, there is no risk
Bonds or cash are one of the riskiest "investments" out there. I call it "return free risk".
Lose purchasing power FOR SURE .. 2-4%/year .. possibly more if quantitative easing continues in Europe, US or elsewhere.
But I also woudl not buy a Toronto or Vancoiver condo as an investment.
But a sensibly levered high demand commercial property, or apartment building, in good location, impeccably managed, well maintained - or a mortgage free piece of land in a growth path of a city: LOW LOW RISK.
Effectively no risk - Other than quasi government body defaulting on him, there is no risk
Bonds or cash are one of the riskiest "investments" out there. I call it "return free risk".
Lose purchasing power FOR SURE .. 2-4%/year .. possibly more if quantitative easing continues in Europe, US or elsewhere.
But I also woudl not buy a Toronto or Vancoiver condo as an investment.
But a sensibly levered high demand commercial property, or apartment building, in good location, impeccably managed, well maintained - or a mortgage free piece of land in a growth path of a city: LOW LOW RISK.
- Joined
- Oct 10, 2007
- Messages
- 4,730
That was one big delay in response Thomas 
[quote user=ThomasBeyer][quote user=housingrental]Bank account
Effectively no risk - Other than quasi government body defaulting on him, there is no risk
Bonds or cash are one of the riskiest "investments" out there. I call it "return free risk".
Lose purchasing power FOR SURE .. 2-4%/year .. possibly more if quantitative easing continues in Europe, US or elsewhere.
But I also woudl not buy a Toronto or Vancoiver condo as an investment.
But a sensibly levered high demand commercial property, or apartment building, in good location, impeccably managed, well maintained - or a mortgage free piece of land in a growth path of a city: LOW LOW RISK.
[quote user=ThomasBeyer][quote user=housingrental]Bank account
Effectively no risk - Other than quasi government body defaulting on him, there is no risk
Bonds or cash are one of the riskiest "investments" out there. I call it "return free risk".
Lose purchasing power FOR SURE .. 2-4%/year .. possibly more if quantitative easing continues in Europe, US or elsewhere.
But I also woudl not buy a Toronto or Vancoiver condo as an investment.
But a sensibly levered high demand commercial property, or apartment building, in good location, impeccably managed, well maintained - or a mortgage free piece of land in a growth path of a city: LOW LOW RISK.