All Forum Posts by: Stevo Sun
Stevo Sun has started 12 posts and replied 319 times.
Post: Can I back out from Assignment sale?
- Calgary, AB
- Posts 326
- Votes 175
That's rough, but I think it comes down to a math question... If you think the property is now worth 100k less than what you are buying it for, is that more than your deposit? If your deposit is a lot less than 100k it might be better to just lose the deposit. I think it also really depends on your financial situation and your goals.
Do you have any conditions on the agreement? Financing or something like that you can use to back out of? I think you have a few options, but none of them are great.
1) lose the deposit if it's a lot less than the property value drop (ie. losing like a 30k deposit vs overpaying for something by 100k, you would still be better off by 70k)
2) if you can afford to stick it out and it's something you like/want to live in then you might consider holding it
3) you can try to drag out the amortization from like 25 to 30yrs to lower your monthly payments
I'm sure there are other solutions out there that people with more experience than me can come up with. Good luck!
Post: Is Real Estate a good investment in times like these?
- Calgary, AB
- Posts 326
- Votes 175
Quote from @Jefferson Mondragon:
Hey y'all, these past couple months have been really crazy, with inflation being so high, the Canadian bank is likely to mimic the U.S 75 basis point rate hike, meaning that mortgage rates will probably go up and home prices will begin to slow down or even go down. With the Stock and crypto market already falling a lot YTD, im not to sure if right now is the best time to be buying real estate, I may be wrong though, I was planning on buying a home somewhere in Ottawa the beginning of this year, either a single family or condo, im only 20 though, so I do not have any skin in the game, so if anyone with more experience than myself can pitch in, that would be great.
Post: Do we have tax deferral in canada similar to 1031?
- Calgary, AB
- Posts 326
- Votes 175
Quote from @Ian Dale Ibrado:
Hi everyone. Just curious if we have similar tax deferral policies as 1031 in the u.s?
Thanks
We don't, CRA has a specific exclusion for rental properties in the replacement property provision.
1.29 The definition of former business property excludes rental property. For purposes of this definition, rental property is defined to mean real or immovable property owned by the taxpayer and used in the particular year principally for the purpose of gaining or producing gross revenue that is rent.
Post: Looking for Commercial Lender - Calgary, Alberta
- Calgary, AB
- Posts 326
- Votes 175
Quote from @Zorya Belanger:
I recommend Nadeem Keshavjee with Greenbirch Capital - he's in Calgary
Post: How to offset rate hikes in Ontario, on a fixed rental rate?
- Calgary, AB
- Posts 326
- Votes 175
Quote from @Anthony Panepinto:
Hey!
I have a tenant in Toronto, ON that locked in a rental rate in the early stages of the pandemic. However, now with the mortgage rate hikes, I am losing $700/mo on this property. We don't have rent control here so I am not able to arbitrarily raise the rent. How do I reconcile this?
Any help is much appreciated,
Thanks!
Anthony
You can raise the rent after the least term ends (assuming its fixed term). Or if its month-by-month you need to give notice. I'm in Alberta, so month-by-month requires a 3 months notice period and you can't raise rate within a year since last rate increase. You will need to check the rules in Ontario.
Post: Payback period of Cash for Keys offer
- Calgary, AB
- Posts 326
- Votes 175
Quote from @Jamie Blair:
I met with an investor in Montreal on the weekend of he was describing how he uses cash-for-keys to incentivize his current tenants to return their lease to him when they move out, instead of passing it on to someone else to the same price (an extremely common practice in Quebec). And once he has the unit back in his hands, he can reset the rent to market rate. He was describing that the highest he's ever offered was 25k, and was turned down. My question for you guys, do you have a typical rule of thumb for a payback period on this "investment"? Ie. If I have a 1-bedroom unit that's currently renting for $600, but market rate is $1100, if I offer the tenant up to 5-10k, the payback period is 10-20months. I plan on holding the property as a long term investment, so increasing monthly cashflow makes sense......or is there another way I should be thinking about this?
(I plan to ask this investor this question next time I see him, but not sure when that will be!)
You can pass on your lease in Quebec? Sorry Im in Alberta and that practice is foreign to me. How does it work? Are you saying you don't get to pick your tenants as the old one moves out?
Post: Looking for Meetup Co-Host in Calgary Alberta
- Calgary, AB
- Posts 326
- Votes 175
Starting to get traction here! Calling all Calgary, Alberta (surrounding area) RE investors/professionals. If you want to be part of the meet-up group please send me the information listed below in a DM.
Name:
Interest Area/Topic:
Current Profession: (obviously doesn't have to be real estate related, but would like to know if we do)
Contact Number: (I will use WhatsApp to message and organize)
Preference Location/Time: (i.e. NW, Sunday afternoon)
Post: Looking for Commercial Lender - Calgary, Alberta
- Calgary, AB
- Posts 326
- Votes 175
Hi everyone,
Located in Canada here, specifically Calgary, AB. I currently have 4 doors and all through conventional mortgages. Looking to scale up into the 6 to 8 plex arena. Understanding that will need to be a commercial loan, I'm searching for commercial lenders that operate in the area. Looking to get recommendations from the BP community. Thanks in advance!
Post: Keep an eye on fraudulent private lenders
- Calgary, AB
- Posts 326
- Votes 175
Quote from @Julie Toh:
@Sriram Kumar Bikkina The right way to get a non-conforming mortgage is from a MIC i.e. a mortgage investment corporation. MICs account for the bulk of private mortgage issuance in Canada and are regulated by OFSI, the federal regulator of financial institutions.
Further to that point OSFI lists put the organizations under their regulatory oversight. So you can check and validate if a FI is regulated.
Post: Looking for Meetup Co-Host in Calgary Alberta
- Calgary, AB
- Posts 326
- Votes 175
Seems like there's enough interest for at least a coffee meet up for us amateur investors haha. So let's do it! I propose we do something informal and casual on the weekend. I think we can find a coffee spot to do this. Message me the following and I can organize.
Name:
Interest Area/Topic:
Current Profession: (obviously doesn't have to be real estate related, but would like to know if we do)
Contact Number: (I will use WhatsApp to message and organize)
Preference Location/Time: (i.e. NW, Sunday afternoon)
@Warren - what I'm thinking of would be too casual for what you want, but maybe down the road.