All Forum Posts by: Adam Krawec

Quote from @Ian Dale Ibrado:

Hi everyone. Just curious if we have similar tax deferral policies as 1031 in the u.s?

Thanks

 Not yet, I read something about it becoming a possibility when Erin O'Toole was campaigning last year, as part of their affordability plan, hopefully it will come up again.

It may be an ideal time to buy soon, just the past few threads in this forum are indicative of experiences I have been coming across in Niagara. 

1) Buyers of new builds with hopes of assigning did not actually have financing in place with closings coming up in the next several months
2) Overleveraged single family landlords going into negative cash flow
3) Small-scale multi-family landlords with multiple delinquint tenants, that are taking too long to evict

Things are just getting started, with another rate hike looming over our heads, not sure how much longer these property owners will be able to continue to hold on.

Quote from @Sarthak K.:

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. 

Get in touch with a real estate lawyer to best guide you in this situation. All the details will be in the contract as mentioned by @Stevo Sun. The contract is drafted by the builder's lawyer to best protect the builder, not the buyer. Unfortunately investing in new builds for appreciation with the hopes of assigning properties does not work for a first property without great risks involved, it's akin to gambling. The only time I have seen this work well is when used as a diversification strategy for an investor that is always buying property whether the market is moving up or down. 

An additional option would be to get financing traditional or B Lender, and place a renter in the unit and you pay the shortfall out of pocket, this is a risky option because we do not know when the market will start the rebound but could prevent the loss of your deposit if you can make this work.

Quote from @Jennifer Thomson:

Thank you for this question. I was wondering if my Canadian REI search efforts were lacking!

 Our info just seems harder to find, you are not lacking ;) 

Quote from @Nadgèle Zéphir:

@Adam Krawec - I am Canadian and before moving to the US, I used to listen to Sarah Larbi's podcast: https://podcasts.apple.com/us/podcast/where-should-i-invest-real-estate-investing-in-canada/id1266521430

It was a great source of information (albeit one way...) on the Canadian RE market and investor community.

 Thanks :)  Do you actively invest in the US now?

@Stevo Sun @Chris Baxter This is my hesitation with Reddit, it's hard to sift through the reliable information from those that just want to have an opinion regurgitating something they heard from someone else. 

Quote from @Jamie Blair:

Just bigger pockets at the moment.....I was able to connect with a REI near me and there's a private landlords facebook group in my area. It's not much, but better than nothing.

Will be following this thread because I would love to know as well! 

 It all starts with one :)  You are right, it is better than nothing.

Quote from @Chris Baxter:

@Adam Krawec I've persoanlly found that every post I've made here in the Canadian REI forum on BP gets responses and I see new posts here daily. I've found a solid community of like minded individuals and haven't found a need to look elsewhere for contacts and connections. Do you follow the Canadian forum here so that you get all the latest posts? Outside of BP, FB, and REIN, you can get some discussion on reddit. There are also good one-way sources of information (blogs and podcasts) specific to Canada; I like reading Ozzie Jurock's stuff for a completely candid perspective.

I don't disagree with you here, most posts get a response, I suppose I am looking at this from a consumption standpoint. I do follow the Canadian forum here, it has been active as of late, but does tend to die down after the one or two newer members lose interest lol  (I am guilty of this)

I am beating a dead horse on this topic, I am sure, but what other active forum sites are you guys using for Canadian-specific real estate investing discussions? 

Our options seem limited to FB groups and Rein. Biggerpockets is amazing and has provided some of the best resources and information found publicly anywhere on the internet at no cost, but find it lacks Canadian interaction, connections, and relatable content. 

Niagara Market has seen a substantial cool down, listings are outpacing sales 2:1. Out-of-town agents and investors have slowed down considerably.