All Forum Posts by: Luc Boiron

@Kyler Pace Each city's zoning by-laws are different, but they would usually not allow much residential in an industrial zone. Industrial use is considered not compatible with residential use. Usually, they try to buffer industrial uses in a way to separate them from residential areas, which is why you usually see industrial buildings in the same area, and residential subdivisions together. You may also hear stories about residents in a mixed use area complaining about the smell of the slaughterhouse nearby, or about the noise of the manufacturer. This is why planners try to separate the uses.

Often, you will see heavy industrial zones, with light industrial next to it. There could then be commercial or residential next to the light industrial zone.

In most cases, planners prefer not to have more residential buildings in industrial zones, though it could be allowed in some older mixed use neighbourhoods, such as areas that were industrial close to a city centre, and slowly residential uses have been allowed to enter these areas and industrial uses get pushed more to the suburbs.

@Chelsea Smith If you use some money from your RRSP, you do need to pay it back. I believe you have a few years to return it to your RRSP, and if you don't, you would be taxed as if you took money out normally.

I would add that Canada isn't currently facing a downturn, Vancouver was hit a little by a tax on foreign buyers last year but news is its getting hot again, Toronto is insanely hot with prices up more than 25% year over year. There's no inventory and people are afraid to sell because they won't be able to buy their next place.

I see prices in some areas more than 20% higher than in the fall. It is absolutely crazy. I saw a house for sale for $1.2 million that sold for $2.3 million. I offered $1.15million on a place listed for $799k, and it sold for $1.38 - there were 32 offers.

I'm still buying, but it really is a full time job here to find anything at a decent price.

@Aaron Mazzrillo

@Kiersten Vance is also helping a not for profit organization with a great mission to find a space to operate. That's worth more than the income, taxable or not.

I hope she is able to find a great space for her client.

@Chelsea Smith Are you planning to live in the property or invest, or both? Ideally, you do both, with some form of house hacking, such as renting out rooms, or buying a duplex/triplex/fourplex and renting out the other units.

Figuring our how much you can borrow lets you know at which price point you can look for properties.

I would also mention that first time home credit on land transfer tax only applies if you occupy the home within 9 months of the purchase: http://www.fin.gov.on.ca/en/bulletins/ltt/1_2008.h...

You should also look into any other benefits first time home buyers have, which are usually only available if you intend to reside in the property, or at least part of it. Examples of this would be borrowing from your RRSP for the downpayment, and some banks have even slightly better rates for first time home buyers (I have heard).

@Chelsea Smith I would recommend you speak to some local investors and try to find a competent mortgage broker, and speak to them. A mortgage broker can best help you understand your options in Canada.

As for local banks, look up local credit unions. Our banking industry is quite different than the US, but you may be able to find some good options with credit unions. However, if you are just trying to figure out what you can borrow, a mortgage broker who works with investors would likely be your best bet.

@Michael Rivera

I think @Roy N. would be able to provide some additional advice on this.

In my experience, if you have been making all your payments on time, lenders will simply renew your mortgage without qualifying you at renewal time. However, if you attempt to change lenders at renewal, you need to qualify again. Your credit score is on the lower end but may be possible, it will also depend on your income and your current debt, so a mortgage broker would need to look at the whole picture to see what they can get you.

I'm assuming this property is in Canada. The FHA is a US organization, so you won't find FHA insured mortgages here. Our main mortgage insurers are CMHC and Genworth, who insure mortgages, usually when the down payment is less than 20%. I am not sure why you are looking for an insured mortgage at renewal, perhaps you could provide more information.

I definitely recommend you speak to a mortgage professional - I have some I find to be good if you would like some references.

Best of luck!

@James Markovski I don't think you need to leave Toronto to wholesale, but you can do the whole GTA. What you may find is that at higher price points, people will be more protective of the equity in the property. At lower price points like under $800,000, you may find more opportunities with run down properties and people who are willing to sell at a discount.

One of the great things about wholesaling in Toronto is that you don't need to find an amazing deal, just a little bit of a deal. Also, you don't need to do as many deals because you can make pretty large wholesaling fees. People are so wary of multiple offers these days that they will pay you close to market value on a property simply to not be competing on the MLS. So buy a $500k property for $450, and assign it for $480k. Very possible.

James, I definitely think wholesaling is possible.

Congrats on the purchase! How much work does it need? Is either unit currently tenanted? It's hard to get a deal in this market, but now the real work starts to make sure you can make the property run at the level you forecast. Good luck!