All Forum Posts by: Andy Sung

Hi,

I am curious if most BP members here with properties claim CCA during tax time.  There seems to be two camps where:

Take it : $1 save today is more valuable that $1 in the future, even with the recapture when selling the property

Not take it : due to huge increase of the asset price, when you sell, it will bump you up to higher tax bracket, and with the recapture, it will negate any tax write off you gain earlier.

Just wondering if there are any general rule of thumbs to follow?  

Thanks.

Hi

Anyone has good sources on how to obtain reliable price to rent ratios for various Canadian cities?  
thanks.  

I would add aim for fourplex if possible because that’s the upper limit on qualifying for residential mortgages.  More units under one roof is more efficient from investment perspective 

@Scott Allaire Transparent Properties charges 8% for smaller buildings (6% for first 3 months).  I had signed a contract with them for 4plex.  

Hi BP!  

I am currently looking for multi-family investment properties, and would like to see if the following criteria are reasonable.  

cap rate: 5.5% (Even this is probably stretching it as many buildings are ~5% now)

vacancy: 4% 

repair and maintenance: 5% (is this insufficient for older buildings?  Most buildings in the area are ~1950 or so.

property management: 8% (is this the norm around the area?)

price per door: $120k-$150k (seems like this is the norm these days in 2nd/3rd tier cities?)

I would like to hear from the experience of investors :)  

Thanks.

I completely agree with the speculation part.  I have close friend that is still willing to buy preconstrution townhouses in gta for 1.3mil and it is not for personal use.  

The completion date is in 3 years and it is a speculative play.  The builder is already pricing in 10% increase a year as a typical townhouse sells for about 1 mil.  

It is quite reckless IMO 

To OP as long as you have leave reasonable margin, and enough monthly positive cash flow you can still net some deals but you need to be quick.  Make sure don’t skip the finance and inspection conditions though.  

@Chris Baxter what are the cap rates around the country now?   Recently bought in Sudbury for about 6%.  Not as high as 7% as in us but probably that’s not a realistic expectation general going forward?   Any insights in cap rate trend?  

I think your gut is already telling that you are "quite stretched" at the moment.  is your reserve high enough to tide you over for half a year if you are not receiving the rent?   A new tenant comes in, decides not to pay you rent for whatever reason, what will happen?  

Hi All,

New to St John and starting to look for BRRRRR opportunities in the area. CAP rate seems decent, but concerned about overall prospect due to GDP / unemployment / rental vacancy.