Why Ontario real estate prices will FALL to 2014 (except in some very select pockets)

[Rickson9]

What are the consequences to the roof after installing solar panels? I know an installer of these panels, and knowing how these things are installed, even he wonders what the home owners are going to do when they have to replace/repair their shingles. As an aside, invest in Phoenix where there is no rent control and tenants have no rights

 

[invst4profit]

Regrettably in Ontario as tenants rights increase under our present government rental property values will drop which will ultimately result in fewer units available. This province has taken the wrong path in allowing tenants virtual ownership of a landlords property once they have occupancy. Landlord rights are almost non existent in Ontario thanks to the Landlord Tenant Board which was renamed from the Tenant Protection Board without change of content.



Phoenix sounds like a investors utopia as far as having control over their property.

 

[Thomas Beyer]

[quote user=invst4profit]Regrettably in Ontario as tenants rights increase under our present government rental property values will drop which will ultimately result in fewer units available. This province has taken the wrong path in allowing tenants virtual ownership of a landlords property once they have occupancy. Landlord rights are almost non existent in Ontario thanks to the Landlord Tenant Board which was renamed from the Tenant Protection Board without change of content.


Indeed .. we own one property in Ontario .. and while vacancies are similar to our BC or AB properties the time and money it costs to actually get a tenant out who doesn't pay is insane .. about triple what it would cost in AB or double to BC which also has a fairly tenant-friendly but far more balanced landlord-tenant act ..



so tenant selection is critical in Ontario ..

 

[invst4profit]

One more, or maybe the final, nail in the coffin the Ontario government placed a cap on annual rent increases today at 2.5%.

Long term tenants will become a death Nell for landlords that will no longer be able to keep up with the increased annual costs of operating our business.

The aim is to provide more affordable housing but what the end result will be is landlords will be forced to raise rents to a much higher level between tenants to protect themselves against the possibility of ending up with a long term tenant. More and more tenants at the same time will become long term to avoid rent increases. Catch 22. All round bad situation for investors/landlords in Ontario.

 

[EdRenkema]

[quote user=Rickson9]What are the consequences to the roof after installing solar panels?

They are not installing panels on the roof, free standing units, 8 yr payback... ($$$)

 

[jackson1]

You made some very good points in your topic, I would like to read more on this.



SUTTON GROUP-SUMMIT REALTY INC., BROKERAGE

Asim Aleem Salesperson

http://www.mississaugahomessale.ca

 

[Thomas Beyer]

[quote user=electricianhoward]Thanks Thomas for sharing your insight.

As an investor in Toronto, I have same feeling.
Let's try to use facts. not feelings.



Fact is house prices in some pockets of GTA along transit lines or within desirable areas in greenbelt show no signs of weakening, but some other areas are overbuilt and will drop.



Fact is Dalton McGuinty resigned yesterday, and maybe the days of a Liberal government are numbered. If in the next election the conservatives get a majority, or at least far more votes for a more right-of-centre Liberal-led government Ontario will likely see sharp increases in prices due to increased investments and lower unemployment, and a somewhat less skewed landlord-tenant act that is more landlord friendly.



I expect the Canadian $ to continue to strengthen .. to as high as 200 cents US in a decade .. and I also expect interest rates to be low for a long long time, so borrowing at 3-4% with income producing assets at 5-6% yield makes total sense to me in that environment.

 

[Thomas Beyer]

[quote user=jackson1]You made some very good points in your topic, I would like to read more on this.



SUTTON GROUP-SUMMIT REALTY INC., BROKERAGE

Asim Aleem Salesperson

http://www.mississaugahomessale.ca




On looming debt, and associated cuts in services or raised taxes, read this, as it is worse than California: http://opinion.financialpost.com/2013/02/04/worse-than-california/



On rising energy costs, due to bungled power plant cancellations and solar & wind subsidies, read those:



http://opinion.financialpost.com/2013/01/17/ontarios-power-trip-mcguintys-legacy/



http://opinion.financialpost.com/2012/10/10/ontarios-power-trip-how-the-liberals-drove-electricity-prices-up-100/



So this means that the industry in Ontario will have two negative head winds: higher taxes and higher energy costs. Thus, to compensate, labour costs have to come down, on both the public sector and private sector side to compete globally, for example in the car industry.



That of course will not go down with unions and as such expect far more labour unrest, such as with teachers, see here: http://fullcomment.nationalpost.com/2013/02/05/matt-gurney-ontarios-teachers-unions-welcome-new-premier-with-grudging-peace-gesture/



Expect higher unemployment and more modest wages, thus little $s available for higher house prices, except in select pockets.



Renting will be en vogue, so rental properties that cash flow will do very well.



Why buy a condo or house that might be flat in value or decline, if one can rent one for less or same amount ?



Proceed with caution. Focus on cash-flow. Reduce leverage