Hello from Burlington, Ontario

[Nino Novak]

Hello everyone,

been lurking the site forever and just decided to join. some great/helpful information that ive picked up just by reading so want to thank all of you for sharing your experiences and advice!. Little about myself im 24 years old from Burlington about 2 years ago i made my first purchase on a pre build condo development  in Grimsby, Ontario, At first i really didnt know what i was getting myself into but finally wanted to own and invest my money. I must say im very happy i invested into Grimsby over the years to see what its slowly becoming is pretty net. Now im just debating what to do with it im leaning towards renting it out and doing the Brrrr strategy just not sure how that works with new builds/condos. Does anyone have experience with it?

Thanks!

[Thomas S.]

The likely hood is that it will not have positive cash flow however without the actual numbers it is impossible to say. Bottom line is condos having HOAs and special assessments simply can not cash flow. In the case of a new condo build expect condo fees to rise sharply over the next few years. 

Do not rely on rent increases to create positive cash flow. Rent control in Ontario is such that allowable rent increases will not keep up with rising cost and as such the longer you hold a tenant the farther behind you fall. Long term tenants in Ontario will kill any possible cash flow from a investment property. To increase cash flow you will need to turn over tenants every 2-3 years to maintain rents at market rate. 

You must study, learn and thoroughly understand the RTA and it's enforcement by the LTB. Ontario is a highly tenant friendly jurisdiction and has created a proliferation of professional and semi professional tenants over the past years. Do not expect investing to be anything close to passive or being a landlord as a easy business. Go in with your eyes open.