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Where to invest?

R

RELover

Inspired Forum Member
REIN Member
Joined
Apr 29, 2016
Messages
88
Hi all,

I am a new investor. I have two semi-detached homes. both in Mississauga (one residential and one rental).

I'm looking to book new construction home with minimal capital. I have about $80 to invest. I have looked into a few cities - East Gwillimabury, Hamilton, Caledonia and Kitchener-Waterlooo.

Where do you see the most increase in property prices? I want to be able to at least cover my monthly expenses with the rent.

I'm inclining towards Hamilton due to its forecast of growth and LRT in the mix.

East Gwillimabury is also only 1 hour from Union Station if commuters want to afford a home but want to be able to get to downtown within 1-1.5 hours.
But I remember last year Minto released homes that were 3500 square feet for less than $800k but this year I see some builders selling 2000 sq ft townhomes for close to $700. Is it too late to buy there?

Please advise. Toronto and immediate GTA is just too expensive now.

Thanks :)
 
RELover said:
Hi all,

I am a new investor. I have two semi-detached homes. both in Mississauga (one residential and one rental).

I'm looking to book new construction home with minimal capital. I have about $80 to invest. I have looked into a few cities - East Gwillimabury, Hamilton, Caledonia and Kitchener-Waterlooo.

Where do you see the most increase in property prices? I want to be able to at least cover my monthly expenses with the rent.

I'm inclining towards Hamilton due to its forecast of growth and LRT in the mix.

East Gwillimabury is also only 1 hour from Union Station if commuters want to afford a home but want to be able to get to downtown within 1-1.5 hours.
But I remember last year Minto released homes that were 3500 square feet for less than $800k but this year I see some builders selling 2000 sq ft townhomes for close to $700. Is it too late to buy there?

Please advise. Toronto and immediate GTA is just too expensive now.

Thanks :)
Click to expand...


Have you ever thought of looking outside of Ontario?

Jeff
 
Hi Jeff,

Actually I have. I invested in a Florida property (a novice move) back in 2009 and it didn't go well. Since then I decided that I will invest closer to home.
 
RELover said:
Is it too late to buy there?

Please advise. Toronto and immediate GTA is just too expensive now.

Thanks :)
Click to expand...
You expect GTA to lose people ? You expect perpetual deflation ? You expect Canada to become an ex-migration country now ? Do you see signs everywhere in GTA that state "We are full. Go away." ? You seriously expect house prices to decline, and if so, why ?

Yes, you should have bought last year. Or better: 5 years ago. Better yet: 15 years ago or in 1980. 1967 too was OK or 1923 ! The next best time to buy is now though !
 
Not at all. I just meant that Toronto and immediate suburbs as far as Newmarket Burlington and Ajax are already so expensive. So I'm looking for opportunities outside of GTA but still close enough to be able to invest where I don't have negative cash flow.

What would be the best city in this circumstance? why is it better to buy an existing property Vs booking a pre-construction? Or is it actually not better. I'm new to this so any tips recommendations are welcome :)
 
RELover said:
Hi Jeff,

Actually I have. I invested in a Florida property (a novice move) back in 2009 and it didn't go well. Since then I decided that I will invest closer to home.
Click to expand...

I was thinking more out east. We have some really good deals on anything from a single family bungalow to multi family.

Jeff
 
RELover said:
.. So I'm looking for opportunities outside of GTA but still close enough to be able to invest where I don't have negative cash flow.

What would be the best city in this circumstance? why is it better to buy an existing property Vs booking a pre-construction? Or is it actually not better. I'm new to this so any tips recommendations are welcome :)
Click to expand...
You do not need "the best" city. Just one that is good enough to hold. Many qualify. Even in "the best" city you can lose money if you pay too much or manage poorly.

Pre-construction is OK to buy. The price 2 years hence may or may not be higher, and it is often somewhat tougher to rent brand new units way out or within a community that is developing/under construction. Not impossible, just more difficult.

Negative cash-flow can be overcome with more cash down. Most large cities do not allow 20-25% down with ample cash-flow anymore.
 
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Jeff8323 said:
I was thinking more out east. We have some really good deals on anything from a single family bungalow to multi family.

Jeff
Click to expand...

Could you provide an example of what a 'good deal' out east looks like numbers-wise?

Posters have been writing how 'good deals' can be found here or there, but don't seem to be able to give an example of what they mean.

Either they're lying or they don't really know what a 'good deal' is.

Giving the benefit of doubt... ;)
 
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I sure can would you like me to send you an email of some options?

Jeff

Rickson9 said:
Could you provide an example of what a 'good deal' out east looks like numbers-wise?

Posters have been writing how 'good deals' can be found here or there, but don't seem to be able to give an example of what they mean.

Either they're lying or they don't really know what a 'good deal' is.

Giving the benefit of doubt... ;)
Click to expand...
 
You can post the numbers here. No need for only myself to see them.
 
Try Brampton and west end near Mount Pleasant GO. I started with REIN since 2008 and learned a lot from veteran like Thomas. He is very helpful and one of the finest member. Take special notes from his post. I invested heavily(25 townhouses) in Hamilton and made some good money but missed the bus in Brampton or GTA . From last two years I am shifting my portfolio to Brampton and Mississauga. I am making good here with less efforts. I will go with GTA and not venture outside this border.
 
Have a look in Southern Ontario. Prices are still on the low end, but the market is really starting to heat up.
 
Rickson9 said:
You can post the numbers here. No need for only myself to see them.
Click to expand...

Here is a example of a four unit I bought last fall

Purchase Price $140,000

Rents 525,525,350,450

Total Gross Yearly Revenue $22,200

Expenses
Property Tax $4200
Water and Sewage $1920.00
Water Heater Rentals $350.00
Lawn Care and Snow Removal $500.00
Insurance $2200.00

Total Expenses $9170.00

In this building tenants pay their how utilities.
 
Steve5219 said:
What does job growth look like in NB?
Click to expand...

We haven't had the greatest press as of late over job growth, we are very much a blue collar province with a large vast of trades people. If and when the oil pipeline gets approved things will certainly explode. Also with the ship building contract in N.S much of the larger pieces are being manufactured here in Saint John and shipped across to N.S. There is many irons in the fire here, traditionally we it gets quite and then we have a boom. We have Canada's largest oil refinery here in Saint John which is already making plans of expansion when the pipe line gets the approval. Overall I am working at making investors realize that this is actually the best time to buy because of the lower costs. I find most outside investors buy in the high which does not allow them to succeed during a down market. You always have to be prepared for a down.

Jeff
 
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