All Forum Posts by: Sarthak K.

Hello Experts,

For multi-family (duplexes/Triplexes), what is a good rent to price ratio in the Kitchener/waterloo area or even the GTA? I have been reading about the some real estate rules that many experts say that the rent to price ratio should be atleast 1% for it to be considered as an investable property? But It seems next to impossible to find a property like with that rent/price in Ontario (especially KWC area). Thoughts?

Best Regards

 Hi Kevin,

Thank you for your reply. Yes, my plan is to move in this condo and probably live out the next few years in the hope that prices will appreciate again across Ontario. Great advice regarding checking with the builder if they have a customer in queue. Will do that.

Thank you so much. 

Thanks for your reply stevo.

So yes my deposit is close to $100K and so I wouldnt want to lose that. I can see myself in living in the condo but it seems that my best bet would be to hold it for the next few years until the prices appreciate again (if at all) and then I can try selling it.

All the conditions were waived off and so right now I dont have any conditions on the offer. I dont have a financial emergency and but it is just painful to watch myself fail at the first attempt of real estate investing :(

Do you know if builders can ask for more money after the agreement has been signed?

Hello experts,

So I think I have made a really bad investment. At the height of market frenzy in Ontario, I bought into an assignment sale of a 2bed condo in early 2022. The tentative date of occupancy at that time was June 2022. Now that builder agreement has been signed, 2 things have happened- interest rates have gone up which have probably decreased the market value of this condo from what I paid for it; secondly, we have a labour union strike in Ontario due to which my occupancy date is in spring 2023 now😱. 

I don’t seem to have any option but to wait for occupancy by which time my condo will probably be worth $100k less due to rising interest rates. 

So my question is - I cannot back out from this builder agreement without losing money, can I? I already paid the deposit to the builder/assignor?

another question- can the builder ask me for more money because their material and labor costs have gone up?

Also, I am already paying 20% for this property (I am a first time home buyer). Would anyone recommend that I pay even more 30% or so to keep my monthly payments less now that interest rates have risen?

For new condos, how long should one keep them before they become less attractive in the market?
 

Any advice would be greatly appreciated. 

Thank you all. This is certainly a great start for me and something to look into. @Josh Arnold I started researching type of rental properties in Ontario and single family rental properties were just not cash flow positive and therefore I had to start looking into Multi-family rentals. However, I believe my first lesson is to fix on a market/city before deciding type of investment properties. 

 Hi Chris, thank you for your reply. Much appreciated. Honestly, I have been thinking of exploring remote investments in cities where I cant be physically present. How would you recommend I go about researching some of these cities where I might still be able to afford my desired investment property?

Some of the local realtors that I have spoken with have discouraged me to go beyond GTA (I am guessing because they dont want investors to leave their playing field). But I have heard that cities like Edmonton, Calgary are good investments (not sure though).

Hello Everyone,

I am a first time investor and have recently joined the forum. I am based out of Ontario and I am currently exploring potential opportunities for investing in a multi-family property in Ontario. But anywhere I look (within GTA/Kitchener/Waterloo/Cambridge atleast), MF properties will cost around $800K or more. Is this reality of things right now and I should accept that I have been priced out of the market? 

I am on a first time investor budget of $120K down-payment max looking for cash flow positive rental properties but it is almost next to impossible to find one in this market. Does anyone have any suggestions/advice? Should I just take my money and invest in SP500 where I might get 7% returns every year?