All Forum Posts by: Mike Terry

@Roy Cleeves 

are duplexes double the price? How does this help?

@Vivek Bhavsar Ontario is a the beginning stages of a very serious housing crash... yes crash.  The impact could impact the entire province.  The decline in The GTA is shocking. 

"in February the average 416 detached was fetching $2,073,989. Last month that became $1,515,763. The difference of $558,226 is $111,645 per month. The decline in that period of time is 27%. In the last serious housing crash (which started in 1989) it took three years for the market to shed 32% – so you can see we’re now on Warp Speed." SOURCE: The Greater Fool Blog, 8/5/2022

I would not be buying anything in the province unless seriously discounted with significant padding for greater decreases.  Ontario Cottage county is beautiful and will recover eventually, but a short summer season and low demand in winter (unless close to skiing) I struggle to see how to get to a profitable occupancy rate. Proceed with caution.

Ontario would not be a target for me until the current deflationary pressure on home prices sorts itself out.  Currently Toronto, the GTA and Golden Horeshoe are seeing some of the most massive drops of any 

 markets in the world. ( see above chart, source Toronto Regional Real Estate Board, The Greater Fool Blogpost 8/3/2022)

There will be some great deals at some point but proceed with caution.  Financing in Canada is also a challenge.  The mortgage market there is much more like the commercial market in the us.  Loans a amortized over shorter terms, interest rates can generally only be locked for 5 years.  If things settle down, the cottage country markets, ski communities with summer amenities (Blue Mountain) and any waterfront proeprties would interest me in the future.  Good luck.  My best advice is wait out the current free fall and find a reasonable entry point with stable financing.

But.... the STR market is oversaturated in Cape Coral. I think this will be aleviated as some new investors panic as the market changes, but pricing is hampered by oversupply. You will see big numbers on the right property in the season, but the rest of the year can be a challenge. I always recommend that anyone buying an STR do it ensuring that numbers work as a longterm rental also. The ability to pivot as market change is crucial. I hope this is helpful to someone.

Do you have any stats to back up these predictions? I'm in Lee County and we are getting an influx of Tampa and South Florida buyers that are priced out of those markets.  There is some softness at the top of the market, but median priced homes are still getting multiple offers. 49% of purchases are cash sales.  Most of our buyers are move ins from higher priced states so equity rich buyers still feel our market is affordable.  We all believe that price growth needs to stall, but there are no indications of any decrease in median or average sales prices. Corrections happen for a reason not because of feelings. 

@Bonnie Low please be cautious with HELOCs, most are adjustable rate and float with the 10 year treasury rate.  

Welcome to Bigger Pockets!!! I am a Canadian/American investing here in Florida and Georgia.  I sent you a DM if you feel like reaching out.  Good Luck.

Congratulations @Melanie Hartmann.  this takes a lot of courage. Don't listen to the naysayers.  You've already jumped in.  They should never underestimate a determined person.  Best of luck I am pulling for you.