All Forum Posts by: Stevo Sun

If that's your worry, then you would have to rent with utilities included. I do this on my duplex, which has a legal basement suite. Instead of having the tenants split the costs each month, it is just easier for me to do it all and charge rent accordingly.

I'm in AB, so it's a bit different. It seems strange that the water bill will get added to the taxes. In my other rental, which is a single family, the tenant will get utilities in their name, and the utility provider will go after them for unpaid fees. The only time the landlord is on the hook is if the services are not connected to any name. In that case, the utility company will look for the name registered on the title.

0 Votes

Quote from @Dan Illes:

Quote from @Stevo Sun:

Ontario housing has far out stripped fundamentals. The income and price have uncoupled from each other over many years.

Similar story in BC, but Vancouver has a lot of foreign capital so income is less of a factor.

I live in AB and we saw a huge run up in price because Ontario and BC folks came with significant capital. Even then housing prices here is still less than half of what it is in Ontario and BC. We have not experienced any significant drops yet. Calgary specifically is at all time highs. At this rate we are also decoupling from fundamentals and eventually will be overpriced.

Yeah Alberta (especially Calgary) is on its way to becoming the same craziness that Ontario and BC are as well.

I think prices will go up but I highly doubt it'll get as crazy as Ontario and BC just because we have so much land to build on. Relatively the density in Calgary is low, we sprawl out a lot which creates other issues.

What I never understood is how small towns in Ontario can have prices that are double of Calgary. That absolutely makes no sense to me. I assume some of those small towns have seen significant declines from peak.

0 Votes

Ontario housing has far out stripped fundamentals. The income and price have uncoupled from each other over many years.

Similar story in BC, but Vancouver has a lot of foreign capital so income is less of a factor.

1 Vote

Quote from @Ian Dale Ibrado:

How do we go about doing so? How can we lock gains as tax free?

You can get an appraisal done and do a deemed sale at the appraisal price with a lawyer. That way you have a pretty solid paper trail if you ever get audited. This will incur some costs (appraisal around $500, lawyer is probably around $1000-1500). Some people will forgo the lawyer part and just do the appraisal.

You have a mortgage on the house so I don't know if you can do the deemed sale part. So I would say bare minimum so an appraisal so at least you have something to defend your position.

0 Votes

Quote from @Ian Dale Ibrado:

Hi everyone! Looking for your opinion. Im from Edmonton, Canada and I have just recently closed on my 3 unit suite and want to keep my momentum going. Im thinking of renting out my primary which will cashflow $650 (no management fee, self manage) because of low interest rate i got it for 2% which still has 2 years before rates renew. When it does, if at 5%, I'll be breaking even. Heres my thought, I want to purchase my next primary as a house hack. Buy a primary with a basement suite but wont entirely cover my mortgage. My mortgage will be still around $1800 but will allow me to control an asset worth 630k. Wife is telling me to slow down. I want to keep momentum going. These primary residences will then be just for appreciation.

What are your thought?

Thanks

I would just suggest for you to do a deemed disposition of you have significant gains on the current primary. When you turn your primary into a rental you will lose the primary residence exemption. So you want to lock in the gains as tax free gains before turning it into a rental.

1 Vote

Quote from @Shibashis Dutta:

I believe this must have been discussed multiple times over the years. and I don't want to reinvent the wheels. looking for guidance or pointer how to start.

not sure whats the name of this strategy. is it smaller version of crowdfunding. ? i want to keep the group small. not like industry scale crowdfunding.

if I can find a property which has okay cashflow (which is hard anyways). and can collect around 10/20 people who wants to invest some cash each.

I build a company to own the property and give each person a share. and give yearly dividend to each, until sold. Does it sound like a plan, what experience advice here.

Is it legal in Canada, how should I approach accountant for the process.

what are the things that I need to look into in this process.

excuse me, if my questions are very open ended.

I'm most cases you would run into security regulations. What you are taking about is issuing securities and is pretty heavily regulated.

0 Votes

Quote from @Sean Osborne:

Hello everyone, are there any Canadian investors here? I currently oversee five rental properties with the assistance of a small team. I have significant equity, which I won't fully disclose, but I'm keen to network with individuals in Toronto, Ontario, Canada. Please let me know, thank you.

Got a group of us here, I'm in Calgary. 🙂

0 Votes

Quote from @Taylor McWilliams:

Is this site ok for Canadians?

Yep, just be careful with the information you see since it is heavily geared to Americans.

There is a decent groups of Canadians on here.

0 Votes

Calgary, Alberta

Quote from @Bhavik Gorajiya:

Beginner question: I see lot of people making money in real estate investing. My personal interest is in rental property investment. how much minimum income needed to start real estate investing in British Columbia, Vancouver or Alberta, Calgary region. with current affordability I can only purchase one 2 bed condo. with current rental market its not possible to generate +ve cash flow with even 20% Downpayment. curious how people are making money or is this just real estate scam to sell properties?

Real estate is a long-term game, and if you bought it earlier, then it works out fine. The deals I have bought from 2018 up to 2022 are all okay in terms of cash flow. But any of those deals would not have worked today.

A lot of people are paying more than 20% down for things to cashflow, or they are okay with negative cash flow for a while .

0 Votes

Vancouver, British Columbia

Quote from @Caleb Schoepp:

Are you allowed to offload utilities to tenants even if maintain the relationship with the utility company? I'm considering purchasing a SFH with a basement suite in Edmonton that has the utilities tied together. Currently the landlord is paying the utilities but it's a huge expense and I'd like to offload it to the tenants. Something like the 60/40 split you mentioned. Ideally I keep the relationship with the utility companies and then the tenants pay me their split.

My two concerns though are that this is not legal and that tenants wouldn't be willing to do this sort of ad hoc split. Thoughts?

Landlords will do the split fairly frequently for that situation. I personally just include the utilities as part of the rent to avoid that hassle.

0 Votes

Calgary, Alberta

All Forum Posts by: Stevo Sun

Stevo Sun has started 12 posts and replied 311 times.

Post: If tenant doesnt pay water bill Landlord has to

Post: The Disaster That is Canadian Real Estate ... and Lessons From It

Post: The Disaster That is Canadian Real Estate ... and Lessons From It

Post: house hacking to get in an expensive market

Post: house hacking to get in an expensive market

Post: Small crowd funding process in Canada

Post: Canadian real estate investor

Post: New here, just starting out, trying to learn

Post: Minimum family income to start real estate investment ?

Post: Current Viability of Long Term Rental Investment in Calgary