condo near university and other amenities

4 Replies

Hhi everyone. Its Nico from Winnipeg, Canada.  Been a couple months since my first introductory post.  I am ready and about to look for my first deal.  I just wanted to get some opinions from you guys out there about the idea.  Please feel welcome to share any of your opinions, knowledge and expertise!

For my first deal I am thinking about a condo near our city's university.  My city right now is in a "buyer's market" and a lot of the condos are going for between 150 to 200k in the area of interest.   I figure this is due to quite a bit of new condo buildings that have popped up over the past couple of years and he prices on he older (1970 to 1990s) condos fell a little lower than before.  That made  me feel like it is a good time to get one for a great deal.  I have seen some go from 170 listed to selling below list value at 155ish.  

I have not narrowed it down yet to any specific properties.   I have about 50k for down and was planning to put 25% as suggested  by my mortgage broker to make e deal as smooth as possible. Therefore puts my range for about 200k or lower.  

What do you guys think? Are these condos  going to be a decent buy? I have analyzed a few financial info and they will net about $100 of positive cashflow a month.  I'm looking at buy and hold.  I don't want to invest in just a hope of appreciation,  but at the same time I'd like to have the cashflow make sense and be positive.  

Are one of these condos the right choice for my first investment? Or should I look at some older duplexes in "not so good areas" for that price range for the cashflow? 

Please, any thoughts opinions or feedback would be appreciated and if you guys need more info from me before u can give opinion, just ask and I'd be happy to explain more detail.

Thanks!

Nico

I personally don't like winnipeg's condo market from an investment standpoint. My father and I just purchased our first duplex in the west end for 185k cash flowing 500-600/month, we also only put 20% down and it was a very smooth deal we actually take possession Oct 1. The money paid for a condo vs return isn't worth it for me.

Who is your realtor/mortgage broker? The guys I use are very knowledgeable in income properties and I could definitely put you in touch with then to explore different options. 

Edit: I should add he got us the duplex for 10k under asking price and he warned me on specifics risks of purchasing condos that would be better explained by him

Originally posted by @Nick Chang :

I personally don't like winnipeg's condo market from an investment standpoint. My father and I just purchased our first duplex in the west end for 185k cash flowing 500-600/month, we also only put 20% down and it was a very smooth deal we actually take possession Oct 1. The money paid for a condo vs return isn't worth it for me.

Who is your realtor/mortgage broker? The guys I use are very knowledgeable in income properties and I could definitely put you in touch with then to explore different options. 

Edit: I should add he got us the duplex for 10k under asking price and he warned me on specifics risks of purchasing condos that would be better explained by him

 Hi Nick thanks for the feedback!  Duplexes were my initial option before I was thinking about condos.  I was just worried that at my current price range (under 200k) that I would not be able to get a decent one in a decent area.  I was initially looking in the north end, but I'm just not so sure about that area anymore.  I'm glad you guys seemed to have gotten a great deal on one there in the west end.  

What did your mortgage broker say in a nutshell about the condo market and risks here in winnipeg south end?  Would love to hear more.

Originally posted by @Nico Sanchez :
 Hi Nick thanks for the feedback!  Duplexes were my initial option before I was thinking about condos.  I was just worried that at my current price range (under 200k) that I would not be able to get a decent one in a decent area.  I was initially looking in the north end, but I'm just not so sure about that area anymore.  I'm glad you guys seemed to have gotten a great deal on one there in the west end.  

What did your mortgage broker say in a nutshell about the condo market and risks here in winnipeg south end?  Would love to hear more.

 Hi Nico. Our budget was in the same ball park as yours. I've always been interested in the real estate market, but I was young and had no capital to do anything besides watch the market until I purchased my personal home 3 years ago. I don't think we would invest money in the north end, we looked at a bunch of properties and our broker advised against it for multiple reasons. The west end is much more attractive to us, not the most ideal area but I believe it will be popular again soon. Wosley rent rates/property value continue to rise and is becoming unaffordable. In our opinion the next logical move for people who like the Wosley area would be to move across Portage where it is more affordable, and people like us will begin to invest and rehabilitate the area.

My real estate agent didn't mention any risks in the south end, but more so the risks within the condo market in Winnipeg. As stated I can't explain it as well as he can but in short, it has to do with the condo corps in Winnipeg not having a 'market study' I think is what he referred to it as. Basically a portion of condo corps aren't holding enough money in their reserve funds to cover the long term maintenance on the buildings. 

In my opinion you just study to market as much as you can, even buy a few Canadian real estate books. It also helps to have a knowledgeable team in place. Find a few properties you are interested in, work out all the numbers on paper and try and ballpark what you think they will sell for. If accurate you obviously have a decent understanding of the market. When you have a good idea of the value of properties it will be easier to jump in and make an offer, which you need to do quick because good deals don't last long. We missed out on multiple deals because we took too long to put in an offer.

If you would like me to get you in touch with anyone on my team just shoot me a message.

Originally posted by @Nick Chang :
Originally posted by @Nico Sanchez:
 Hi Nick thanks for the feedback!  Duplexes were my initial option before I was thinking about condos.  I was just worried that at my current price range (under 200k) that I would not be able to get a decent one in a decent area.  I was initially looking in the north end, but I'm just not so sure about that area anymore.  I'm glad you guys seemed to have gotten a great deal on one there in the west end.  

What did your mortgage broker say in a nutshell about the condo market and risks here in winnipeg south end?  Would love to hear more.

 Hi Nico. Our budget was in the same ball park as yours. I've always been interested in the real estate market, but I was young and had no capital to do anything besides watch the market until I purchased my personal home 3 years ago. I don't think we would invest money in the north end, we looked at a bunch of properties and our broker advised against it for multiple reasons. The west end is much more attractive to us, not the most ideal area but I believe it will be popular again soon. Wosley rent rates/property value continue to rise and is becoming unaffordable. In our opinion the next logical move for people who like the Wosley area would be to move across Portage where it is more affordable, and people like us will begin to invest and rehabilitate the area.

My real estate agent didn't mention any risks in the south end, but more so the risks within the condo market in Winnipeg. As stated I can't explain it as well as he can but in short, it has to do with the condo corps in Winnipeg not having a 'market study' I think is what he referred to it as. Basically a portion of condo corps aren't holding enough money in their reserve funds to cover the long term maintenance on the buildings. 

In my opinion you just study to market as much as you can, even buy a few Canadian real estate books. It also helps to have a knowledgeable team in place. Find a few properties you are interested in, work out all the numbers on paper and try and ballpark what you think they will sell for. If accurate you obviously have a decent understanding of the market. When you have a good idea of the value of properties it will be easier to jump in and make an offer, which you need to do quick because good deals don't last long. We missed out on multiple deals because we took too long to put in an offer.

If you would like me to get you in touch with anyone on my team just shoot me a message.

 Hey Nick, thanks for the great tips.  There are definitely some pros and cons, and definitely seems more return and cashflow from detached homes or duplexes.  I have been researching the market, trends, laws since beginning of this year when I decided to make the move into real estate investing.  My initial plan was for plexes, but seems I am out of luck with what is available at the moment.  However I am keeping my eyes open for plex opportunities there in the west end like you found.  

As for the condos, I am not totally ruling it out for now, but we'll see what the future holds :)

Will keep you guys posted when I make a move.