RC8BOY
Well-known member
Condos are a bad investment to begin with. Land holds the true value.
Investing in realestate
- Thread starter Red695
- Start date
Did he buy you a nice dinner at least?
house prices in Calgary have dropped too despite there being a high demand to buy houses. Recently a house was on the market for $229k used to be $310k. I put in a $240k bid and was outbidded by 14 others and house sold within 3 days of it just being listed.
Man I wanted that house so bad it had a nice shed for a couple dirt bikes, triple oversize garage and space beside it to put a boat.
Some good advice here from OpenGambit, Brian P and others.
I used to work for a company that supplied condo builders and as OG said each condo is a separate corporation even though it appears to be owned by one of the big developers. If it turns out it was built over a giant sink hole they are distanced from the disaster.
PM Harper commented on the economic recovery last night by saying "We're running out of runway" Not an encouragement.
The biggest problem with real estate is the cost of maintaining it. Taxes and maintenance could go to a grand a month even if empty. If other owners let slobs in to help bail them out the property value plunges and maintenance goes up as the place is trashed. I work in the condo system and have seen it. Investor properties are the worst as the tenents don't have a say in the building and the owners don't care about the joint other than ROI.
Raw land is cheaper to maintain but banks don't like it and if the area becomes developed the more experienced developers work the town planning to give you the crappy end of the stick.
To me R.E. speculation is for giant corporations and dynasty builders. A Chinese friend invests for the benefit of his grandchildren, not himself or his children.
R.E. can be residential, commercial or industrial. Industrial has fewer rules which is good but in a recession who needs a workplace. Residential has more rules and people need homes even in a recession. Commercial is a mix. I would be more tempted by a unit in a medical condo. People always get sick and we have OHIP to squander $$ on us.
A lot of stores in malls don't get thrown out for non payment of rent during a recession. It makes the mall look bad. Do you want a piece of that?
The other opinon is that the boom will continue. The high rollers keep building plazas and malls.
Something else to think about.
The Kennedy dynasty in the USA made its money from the great depression. Old Kennedy was having his shoes shined prior to the crash and the shoe shine boy was telling him what stocks were hot. Kennedy figured if a shoe shine boy was telling him how to invest there was something wrong with the system.He sold out and re-bought after the crash.
You are asking about investment on an internet motorcycle forum. I would rather trust a shoe shine boy.
I used to work for a company that supplied condo builders and as OG said each condo is a separate corporation even though it appears to be owned by one of the big developers. If it turns out it was built over a giant sink hole they are distanced from the disaster.
PM Harper commented on the economic recovery last night by saying "We're running out of runway" Not an encouragement.
The biggest problem with real estate is the cost of maintaining it. Taxes and maintenance could go to a grand a month even if empty. If other owners let slobs in to help bail them out the property value plunges and maintenance goes up as the place is trashed. I work in the condo system and have seen it. Investor properties are the worst as the tenents don't have a say in the building and the owners don't care about the joint other than ROI.
Raw land is cheaper to maintain but banks don't like it and if the area becomes developed the more experienced developers work the town planning to give you the crappy end of the stick.
To me R.E. speculation is for giant corporations and dynasty builders. A Chinese friend invests for the benefit of his grandchildren, not himself or his children.
R.E. can be residential, commercial or industrial. Industrial has fewer rules which is good but in a recession who needs a workplace. Residential has more rules and people need homes even in a recession. Commercial is a mix. I would be more tempted by a unit in a medical condo. People always get sick and we have OHIP to squander $$ on us.
A lot of stores in malls don't get thrown out for non payment of rent during a recession. It makes the mall look bad. Do you want a piece of that?
The other opinon is that the boom will continue. The high rollers keep building plazas and malls.
Something else to think about.
The Kennedy dynasty in the USA made its money from the great depression. Old Kennedy was having his shoes shined prior to the crash and the shoe shine boy was telling him what stocks were hot. Kennedy figured if a shoe shine boy was telling him how to invest there was something wrong with the system.He sold out and re-bought after the crash.
You are asking about investment on an internet motorcycle forum. I would rather trust a shoe shine boy.
It's always good to ask what people think/know, as long as you don't listen to the ones that have no idea what they are talking about
I am not going to buy this time. Even though it was a small amount and it was a mix commercial/residential build. I just don't see getting the return I want in the next couple years. A couple of my friends bought and I will see how they fare, being stock brokers perhaps they are more comfortable with a gamble. I am going to keep lending to various real estate developments though for a %12 percent annual return but I will spread it out over various projects.
dr_sarcasm
Well-known member
...or at the very least kissed him beforehand...
If it townhouses it's not too bad, but even there, mine didn't increase in value even after upgrading it (the previous owner didn't touch it for 20 years...). At least, everybody can afford my townhouse, but a house....300 000$ is too much for almost everybody unless you want to be no-life for the next 20 years.
average price of a resale home in the GTA - $516,787
http://www.moneyville.ca/article/1206031--toronto-real-estate-s-sudden-surge-in-gta-homes-for-sale
My house is a free place to live in 15-20 years. Its not a savings account or an investment. Those days are largely over, IMO.
