Investor · Toronto, Ontario · Member since 2016 · 14 posts · 0 votes
Hey everyone,
Firstly I'd like to thank Joshua, Brandon, Scott, Allison, Hilary, Mindy, Zachary, the moderators, and everyone else involved in putting together this awesome site! I'm sure I'll interact with you, and many other key members I've read posts from thus far on my journey.
I can't wait to get started! I'm a young Canadian investor looking to get started building from zero properties to generating either $40,000 monthly cash flow from rental income or $15 million dollars in combined valued real estate in the next 5 years spanning between Canada and the U.S. I have over 6 years of experience advertising, and managing student rental properties as well as multi family homes in Canada. Lately I find myself on the MLS scouring for deals. It seems there is ample opportunity not just in Toronto, but many of the surrounding areas as well!
Those are ambitious targets - you will beed $3 - 5 million in seed capital and/or a lot of creativity acquire $15,000,000.00 in property in 5 years. Not impossible, but most definitely ambitious.
Those are ambitious targets - you will beed $3 - 5 million in seed capital and/or a lot of creativity acquire $15,000,000.00 in property in 5 years. Not impossible, but most definitely ambitious.
Investor · Toronto, Ontario · Member since 2016 · 14 posts · 0 votes
10y
@Roy N. Thank you! I've been looking at deals all day so I'm sure I'll end up somewhere around there in the next few years. With home sale prices increasing 20% in Canada I'm sure it's possible!
@Roy N. Thank you! I've been looking at deals all day so I'm sure I'll end up somewhere around there in the next few years. With home sale prices increasing 20% in Canada I'm sure it's possible!
Tony:
Home prices in your part of Canada have been increasing at 6 - 10% / year for over a decade. Presently they have diverged so far from the underlaying economic fundamentals and household income, that I would not bank on that continued appreciation. In fact I would be doing my analysis to ensure any new investments can weather a significant retrenchment in real estate valuations.
Investor · Toronto, Ontario · Member since 2016 · 14 posts · 0 votes
10y
"The median price of two-storey homes in the cities of Richmond and Burnaby saw year-over-year increases of 23.5 per cent to $1,200,462 and 20.9 per cent to 1,184,385, respectively, while the price of a two-storey home in the city of Vancouver increased 17.3 per cent to $1,925,491."
@Ron, Although tempting because it's important for short term transactions (2-3yr), I'm trying not to pay too much attention to housing appreciation. I think for me it will mostly be a negotiation leverage tool. The % reference was aimed toward the Toronto suburbs and the west coast though...My main focus is monthly cash flow generation...
The GTA is different than the Toronto core. More people have been looking for semi and detached homes toward areas in North York, Richmond Hill, Ajax, etc. More and more people are moving to the suburbs. Since 2013 about 90,000 more people have moved to the GTA. I assume those factors drive price. Yeah prices might be inflated, but I'm sure it will be like this for a few more years. For now, it's great because rents keep going up! Either way, I'm looking for spreads ;)
"The median price of two-storey homes in the cities of Richmond and Burnaby saw year-over-year increases of 23.5 per cent to $1,200,462 and 20.9 per cent to 1,184,385, respectively, while the price of a two-storey home in the city of Vancouver increased 17.3 per cent to $1,925,491."
@Ron, Although tempting because it's important for short term transactions (2-3yr), I'm trying not to pay too much attention to housing appreciation. I think for me it will mostly be a negotiation leverage tool. The % reference was aimed toward the Toronto suburbs and the west coast though...My main focus is monthly cash flow generation...
The GTA is different than the Toronto core. More people have been looking for semi and detached homes toward areas in North York, Richmond Hill, Ajax, etc. More and more people are moving to the suburbs. Since 2013 about 90,000 more people have moved to the GTA. I assume those factors drive price. Yeah prices might be inflated, but I'm sure it will be like this for a few more years. For now, it's great because rents keep going up! Either way, I'm looking for spreads ;)
Tony,
Yes, Vancouver is experiencing an even frothier market than Toronto and has become the second least affordable city on the planet after Hong Kong for housing (11+ times household income). Using Vancouver as a data point to justify Toronto'a comparatively calm market is self rationalization.
Yes, the divergence of real estate prices to the underlaying economy may continue for a few more years and, if folks are fortunate, it will gear down slowly on its own with only a small retrenchment in prices. Alternatively it could meet a economic wall that cannot be ignored and come to a very abrupt stop leaving a lot of folks drowning (just ask some of our neighbours to the south how quickly the party can end).
Finally, yes, there is still money to be made, but the approach you outline is more speculation than investing. Just be wary that playing spreads in such a market is often like a game of hot potato.
Welcome to Bigger Pockets. It is a good place to connect with real estate professionals and to learn about real estate. For example, you set up key word alerts. http://www.biggerpockets.com/alerts
"The median price of two-storey homes in the cities of Richmond and Burnaby saw year-over-year increases of 23.5 per cent to $1,200,462 and 20.9 per cent to 1,184,385, respectively, while the price of a two-storey home in the city of Vancouver increased 17.3 per cent to $1,925,491."
@Ron, Although tempting because it's important for short term transactions (2-3yr), I'm trying not to pay too much attention to housing appreciation. I think for me it will mostly be a negotiation leverage tool. The % reference was aimed toward the Toronto suburbs and the west coast though...My main focus is monthly cash flow generation...
The GTA is different than the Toronto core. More people have been looking for semi and detached homes toward areas in North York, Richmond Hill, Ajax, etc. More and more people are moving to the suburbs. Since 2013 about 90,000 more people have moved to the GTA. I assume those factors drive price. Yeah prices might be inflated, but I'm sure it will be like this for a few more years. For now, it's great because rents keep going up! Either way, I'm looking for spreads ;)
Hey Jason Best of luck! But I would caution against taking any statistics from major media publications as true. They would of skewed that story to prove a point, if you know a realtor or mortgage broker/appraiser you can access the raw data, use the raw data to calculate your own appreciation rates.
Investor · Toronto, Ontario · Member since 2016 · 14 posts · 0 votes
10y
@Ron I'm not quite sure it's just speculating if I personally know people who have seen great double digit returns in the short-term. But again I'm looking for monthly cash flow. IF I can get a return off appreciation, I'm putting it for sale, but the main focus is monthly profits from an undervalued property. Windsor is a perfect example, but I've seen quite a few in Toronto too.
@Paul Hello and thanks! They just keep building, and it's a growing area! Condos.Homes.Citywide development projects. Population growth. Immigration influx, etc. Times are good!
@Samuel Hello and thanks! That's a great point! Considering my job was basically to get a property ready for market (clean out/fix, get appliances, full occupancy, etc) I assumed the only SOLID way to get accurate appreciation was physically adding value to the property (renovations, etc.) and increased rents. Rent in some places climb 3% with barely any upgrades. Does a condo being built up the street help them justify this? Who knows. I sort of thought regionwide rates were all speculation until I met people whose condo went up 6% 3 months after they bought. Maybe it's different with condos?! TREB is consistent with Ron, but some people here HAVE seen 20%. I've yet to actually have this conversation with a mortgage broker or appraiser. But a realtor selling preconstruction to investors might have a different perspective.
Happy to chat about anything Real Estate related with you, especially in the GTA. You should check out the TREB Market Review and Outlook from last week. I posted the highlights of it on LinkedIn. I agree with much of what you're saying - and I have 8 specific points to back up my opinion that the GTA Real Estate market will stay on this course for the medium term.
Investor · Toronto, Ontario · Member since 2016 · 14 posts · 0 votes
10y
Good afternoon Claude!
5 seconds into that report Claude just emtnioned; "The Ontario government will spend $31.5 billion over the next 10 years to improve transit, transportation and other priority infrastructure projects. This includes $16 billion to fund transit projects in the Greater Toronto and Hamilton Area, more frequent GO rail service and new LRT lines in Mississauga and Hamilton."
Toronto is the New York of Canada's future and it's up for sale for the next few years...
Firstly I'd like to thank Joshua, Brandon, Scott, Allison, Hilary, Mindy, Zachary, the moderators, and everyone else involved in putting together this awesome site! I'm sure I'll interact with you, and many other key members I've read posts from thus far on my journey.
I can't wait to get started! I'm a young Canadian investor looking to get started building from zero properties to generating either $40,000 monthly cash flow from rental income or $15 million dollars in combined valued real estate in the next 5 years spanning between Canada and the U.S. I have over 6 years of experience advertising, and managing student rental properties as well as multi family homes in Canada. Lately I find myself on the MLS scouring for deals. It seems there is ample opportunity not just in Toronto, but many of the surrounding areas as well!
Welcome and lofty but attainable goals...You are just going to be busy. Use this site to your advantage and ask away.
I have a good friend doing some great things in Ontario. Actually he is finding more deals then he can handle.