All Forum Posts by: Judy C.

Hi! I'm starting out in multifamily and am looking into PEI, specifically Charlottetown. Is there any multifamily investors in Charlottetown PEI on BP? Looking to network, any recommendations of realtors and property managers will be super appreciated. Thanks in advance!

I briefly explored this in the lower mainland and it's very hard for the numbers to work. The main issue is pace of appreciation is likely going to be higher than the pace the tenant buyer can save up. The only scenario this would work is in a lower priced property such as an older condo/ strata, but then you're dealing with strata rules. 

@Anna Korishch I'm an investor from Ontario in similar boats as you. I'm looking for cash flowing multiplex in the Maritimes and Alberta while trying to build a local team. I'd love to connect with you so we can learn from each other's journey. 

Hi Adam, 

Fellow investor from Ottawa here. Thomas has answered pretty much everything. I want to echo that Ottawa has a strong, stable and diversified job market, and looking at historic data, Ottawa prices rarely see the type of variation other cities like Vancouver, Toronto, Edmonton, and Calgary sees. In recessions, it historically has not dropped more than 5% compared to 10-15% in other markets. A book I strongly encourage you to read is Secrets of The Canadian Real Estate cycle by Don Campbell. 

If you are worried about refinancing at the height of real estate value, perhaps you can look into having the refinanced equity available as a HELOC and you can use part or all of it only when needed. If you have good long term tenants, a healthy cash reserve, and the home cashflows at 80% LTV, I wouldn't worry too much about it in the Ottawa market.

Regarding capital gain, it depends on if it's your personal property or a rental, as well as your marginal tax rate. Long term, yes it's more advantageous to have it in a corporation to save on tax, however, there are disadvantages as well including higher costs (accounting costs, lawyer fees, ease of finance, mortgage rates) and, it may not as "liquid". I've heard people say it's generally not worth it under 5 properties, but it depends on your personal situation. Best to consult an accountant. 

Hi, 

I was running the numbers for Abbotsford, and even that has trouble cash flowing for a lot of properties with just 2 units (up and down apartments) in a single family home. You'll have to look into creating more units (3+), renting out by the room to high quality tenants (but that also means you need to have a higher quality home such as private bathrooms, newer renovations, closer to hip areas of town etc.), short term rental /furnished rentals as Steven said, or homestay type situation. The best I thought of was severing a single family home into a duplex, and each duplex gets a suite. However, you'll need to look into zoning and the cost of renovations. I'd love to hear other people's ideas for value add. 

Hi @Tarandeep Singh

I went through something similar as you a few months ago. I'm from Ontario (Ottawa) but have always wanted to move to Vancouver as it's a beautiful city, diverse and offers some of the best climate here in Canada. However, it means higher real estate prices and difficult to cash flow. In the end, I still decided to move to BC as certain pockets outside of greater vancouver still offer cashflow and growth. Plus, there's more to life than just making money. I'd love to connect with you and discuss more, maybe trade notes. 

@Brian Hosier I'd love to chat with you as well!

Yes I think it's a great idea and is be interested in joining!

Hi,

According to some stats I read, certain neighbourhoods went up by over 20%, and Alta Vista / elmvale area was actually one of the lower appreciating areas in Ottawa. 

while 20% is not sustainable, our local economy is strong and housing remains one of the most affordable amongst major cities in Canada. I think we won't see any slow down until at least a few years out. As a millennial, I'd say about 30% of my friends have been actively looking for a home and all are hoping for more supply in the spring. 

I agree. I would also sell property A if I were you. It's your worst performing property based on value (likely because it appreciated a lot) and negative cash flow. I'm also in Ottawa and you can get much higher rental returns than that for a $550k property. 

one caveat is if property A is in an up and coming area you think the appreciation will be much higher in the next 3-5 years, only then I'd keep it.