All Forum Posts by: Sam Hanaa

I agree, however that is not preventing people from buying houses, many of them are not really investor, instead family with extra saving trying to put that cache somewhere, they don't do calculations or anything else, they go with simple rule, buy, rent and hold, however that seems to be good strategy in GTA in the last 7 years, which home prices going up relatively faster than other places, I was laughing on guy who bought condo for 250K 4 years ago, now it worth 450K. Now assuming he can rent it again, he can easily achieve 1% rule, with rents hitting more than 2K per month. 

The same thing applies for other types, anyone who bought a house before 2015, I assume they are now doing 1% rule, assuming they are renting their house with today's rent. 

 I heard around 20% of new Toronto condoes are bought buy investment firms , so not sure who is the crazy the people who are buying them or the ones or are not.

You are right about not able to cacheflow with 20% downpayment, and that apply to all homes in GTA that are in fair conditions.
Can you elaborate more on these alternative investments ?

If you are going to do this for the first time then you need to put an estimate for profit around 40% , the mistake here and there you will end with a profit between -20% to 20% 

I see too many new constructions around GTA, and I was wondering if a good idea to invest in a house that the closing date will be in 2022 or 23, so downpayment can be paid gradually, also inflation rate will do its magic to reduce its price value compared to the market at that time. any comment? 

Do you live there or you will hire a property manager to take care of that property?

@Mark Polan I live in Toronto and it is even more expensive than Ottawa, after year of researching I have reached to the following conclusions : 

If you want to get a real "deal" in Ontario's main cities you have to look for distracted properties and you should be either contractor or know someone who can give you a good discount, buy and rent could easily put you on negative CF. 

The other option is the slow cities where the average house is less than 300K, these can be good if you live there or know someone there, also sound like many of these small cities are dying, the average age is 49 with one or two kids born per year. So you might find it hard to find a tenant. I heard people is now more targeting them due to high prices in large cities, but I yet to see evidence about that besides some news reports.  

Currently, I am on hold until I see some changes in the market. 

I am not an seasoned investor so dont take any of what I am saying as professional advise , these are just personal openions 

Any one investing in Windsor?  new houses are getting sold for 600K, old houses switched to multiple offer selling model, just like some places in GTA. However while people in Windsor doesn't have the luxury of high paying jobs that GTA residents have, is it just a temporary fever of buying houses, or there is really something going on in this city ? 

Congratulation 

If you are planning to rent , think twice, most Canadian provinces are very biased toward tenant, you will be surprised how socialist are some rental laws are in country considered to be capitalist.