All Forum Posts by: Mike Jebo

To add on to my point. Global news just published this article this morning. Follow the money!!! http://globalnews.ca/news/2943992/goodbye-vancouver-foreign-buyers-now-flooding-seattle-and-toronto-real-estate-markets/?campaign_id=A100

Call it "speculating" or speculative investing, call it an up market, you guys can call it whatever you'd like. The numbers don't lie and it's basic economics. SUPPLY and DEMAND. Ontario is a baby and Toronto is becoming the next Manhattan. Believe it! We will continue to experience appreciations at these rates for ATLEAST another couple years. Only thing that will slow it down is an increase of interest rates and that won't happen overnight. 

Builders are building everywhere around the GTA and selling out each phase in a couple days. The DEMAND is astronomical and Ontario is highly sought after. Especially for people from the U.S. now that our dollar is at an all time low and Trump might be their next President!!

Stop thinking the market is "too expensive" and looking at it from a local scale. I'm talking to everyone here, this is not directed at one member, but everyone who thinks prices are too high etc. Toronto is becoming a MAJOR CITY and the faster you can accept that and faster you can join the "speculative investing party" the faster you can start to generate real wealth in real estate in a fraction of the time you've planned for. 

Don't believe me? Still not convinced? Look at the bigger picture and run the numbers from a GLOBAL scale rather than local scale. TORONTO is still one of the most affordable major cities to live in compared to other major cities around the world. (New York, Tokyo, Hong Kong, London, etc, etc). We are becoming a major city and we are still one of the cheapest places to live in with tremendous amount of opportunity. Stop listening to your expert neighbours and start investing within your means because the longer you wait the more you'll pay! PERIOD. 

John Kesner Yes, much like Airbnb I suppose?

Jacob Perez yes I've heard good stuff about Hamilton. Lots of new developments happening and more to come so that's always a good sign.

@Matt Geerts I know where you’re coming from. You live in a little town where you’re playing it safe with low risk and it’s working for you and your goals...I don’t know how many properties you have out there, but I would really recommend you sell a couple of them to leverage the capital you have there for a downpayment on a property here (duplex or triplex) where at worse case scenario even if you’re breaking even is a much better investment IMO. Get a taste of appreciation in the GTA and you’ll never look back. You can find something decent still between $700,000 - $800,000. You’ll need 5% on the first $500,000 and 10% on anything north of half a mill. With a $700,000 purchase you need minimum $45,000 down payment and a creative mortgage broker to set it up for you. Plus closing costs.

2.2% appreciation in London. That’s extremely low for my liking. I understand its lower risk and safer investment, but the beauty of real estate is in the appreciation IMO. No one has ever bought and held real estate for 10 years and ever lost. (UNLESS you sold during a recession) But in 10 years some people have doubled if not tripled what their purchase price was while others have collected couple hundred dollars in passive income each month with 2% appreciation each year. The only time you lose is if you're forced to sell during a recession. Invest within your means and make sure you never have to sell if the market tanks and you’ll always do well.

As long as you can stomach the higher risk and a possible correction. (Which I don't think will be happening for many years to come). However, to not focus on appreciation as George mentioned above, I think is a bizarre statement. Fortunes are actually made through appreciation. Building wealth with the couple hundred dollar per month from rental properties is going to take a lifetime.

@Ming Lim great feedback! It's so nice to see this many people from Ontario on BP. I apologize in advance if I ask any questions other members have already touched upon. I will try to spend more time on the forums to catch up and absorb all the info of past topics discussed.

You're absoultly right about converting subject property to a duplex or triplex to maximize the rental potential. I'm really interested in the Toronto market and after talking to one of my colleagues last night he definitely showed me the light here and how there is still hope within Toronto for cash flow properties. He has been investing in The Beaches for over 10 years now and he seems to be making it work. Exactly what you mentioned though. Picked up and renovated a SFR into a triplex that is leased out for just over $6000 per month right now total rent. He's getting $2000 positive cashflow. And great pool of high caliber tenants. Purchased 1.5 years ago and he has already experienced tremendous amount of appreciation in that short time period.

You definitely need to be sitting on some cash to take something of this caliber on. So for anyone who's interested in creating wealth and is sitting on couple hundred thousand this is definitely the avenue you should be looking into. Take on a partner to lower the risk and capital needed to get started. Do whatever it takes. I think there so much value her and Toronto is a baby that only going to continue to appreciated. The best is yet to come!!!

George P. Don't focus on appreciation? If you want to create wealth and enjoy financial freedom while you're still young I suggest you look into buying cash flow properties in areas that are experiencing great rates of appreciation and in high demand. Aka TORONTO. Invest within your means so you never have to sell during a recession and you will never lose.

Thanks for your reply @Matt Geerts 

Do you know what the rate of appreciation out there in London is? From 2015 to this year perhaps?

HI EVERYONE! I’d like to introduce myself to the BP community.

I'm a young realtor and investor that lives in Vaughan, Ontario. I’ve been licensed and practicing full time for a few years now in the Greater Toronto Area (GTA); with a specific focus in the York Region area and parts of Toronto.

I hope to expand my network with other members to help, support and create mutually beneficial relationships. I earn a honest living as a realtor, but plan to make most of my fortunes through the investing side of this business.

Having finally started my initial investment last year I have already made more money with buying real estate than I have selling real estate.

With prices appreciating at ridiculous rates year after year in all parts of Toronto and GTA... I’m having an extremely hard time finding properties with positive cash flow. Do positive cash flow properties exist in any parts of the GTA? Please advise. What areas can we buy and rent out with a positive cash flow from the first year? Preferably a city or town that still has a decent rate of appreciation.