All Forum Posts by: Cody Neustaedter

Here in Winnipeg we are still up about 7% from last year. Lots of people moving from Toronto to Winnipeg and we still have low inventory so bidding wars are a given on any somewhat decent house under $500k.

Not saying this is what's happened in your market but I don't like "average sale price" as a metric because it doesn't tie the asset that is selling to it's specific market value. A drop in average sale price could simply mean that only smaller homes are selling/listing because the primary demographic of people selling/listing are those that need to move out of their smaller homes. This is what I am seeing in my market where a large percentage of home sales are estate sales with properties that are outdated significantly (lower purchase price) but comps for those homes haven't dropped compared to what they were selling at 2 years ago. In fact they have gone up. However, the inventory for more expensive homes for sale is down, as those people who might have typically moved in the past are no longer moving - for whatever reason.

 Hey @Daniel Dass! I know your question was about how to purchase a second property but how much are you losing on your first property? Unless you have a very high income it is pretty risky to invest in additional properties when your portfolio currently takes money out of your pocket. Do you have a plan to get that property in the green?

Hey @Junaid Javaid! I understand this isn't answering your question but what market do you develop in Canada?

 Even if you don't break even on a house hack it can still be worth it because money you save is less money you need to earn (that gets taxed) which can really improve your financial picture. As long as you don't increase your total current expenses to obtain another property. Think about it as an entire portfolio vs independently for each property. If your new primary costs you $1800/month after the basement is rented out but you can rent out your previous primary for $1800/month and you are in the same financial picture then it is definitely worth it!

Side note: Anybody else get some serious "fan girl/boy" energy when people like @Dave Meyer comment on these posts. Awesome to see.

Hi Tako! I invest in Winnipeg. Not a lot of people invest in Rural Manitoba. I would reach out to some realtors in Dauphin to see if they have any interested buyers. You would need to agree on a payment schedule. Typically a finders fee would be charged to the buyer, especially if you are doing all the work to bring the deal to the realtor. If you ever want to chat about Winnipeg I would be happy to setup a call or go out for coffee!

Cheers!

Cody

 Winnipeg checking in! Are your properties in the GTHA?

 Alberta city's have seen a lot of money move their recently as a lot of people see Alberta's economic policy's as being favorable over the next few years. Definitely lots of opportunity in Calgary!   

Winnipeg is a great market to invest in. Appreciation rate is actually better than most people think (~6% per year) and you can easily cashflow if you buy in a good area. Lots of immigrants moving to Winnipeg that make for great tenants and see the rent as affordable, especially if they are moving from Toronto.

Hey @James N Beliak look into RBC's Vacation home mortgage. If you wanted to get into the Airbnb space you could buy a STR using only 10% down. When I was working with RBC they said as long as you use the property yourself they would be fine with it. This was in 2021 so they are probably more strict about it now, but still something to look into.

The interest rate for an investment property in the U.S. can be quite high if you are a foreigner and using a DSCR loan.

If you are looking for affordability in Canada you should check out the prairie provinces. Winnipeg is a "tenant friendly" city but we have a ton of people investing here because its affordable and you can screen tenants to get away from the squatters. 

Hi Cecilia!

Seller financing is more uncommon in Canada, at least in my experience. Majority of agents have no idea what seller financing even is. Here in Canada its called a VTB (Vendor-take back mortgage). Usually, sellers are only willing to do it if they receive a significant down payment and most will only do a VTB for a portion of the property. Hope that helps!