All Forum Posts by: Account Closed

Yikes, will do. Thanks!

Thanks. I never considered Niagara.

@Ajay Kahlon

How do I understand the market before I jump in? Is there a section on BP about learning areas where you want to buy?

Hi all

I'm getting ready to purchase a 2-4 unit property in Canada for rental income. I hope to buy 2 of them in the next year before moving up to 5-8plexes in the years after that. I'm in GTA so I know I need to go farther afield. And I'm ok with any location within Canada.... but where do I go?

I've looked at some CMHC reports and heard buzz about Saskatchewan and Maritimes, but I can't figure out where I should go for a stable rental market. My price range is $200k or less per property and I'm looking for a good, steady cash flow more than I want appreciation.

Maybe you know about a city or area? Or can you point me towards reports that I should be reading that will help identify the right area to look.

thanks

Tabatha

Hi all! Thanks for organising the meetup, Dominika M, it was nice to meet you :)

I've been toying with the idea of buying a house to live in and rent part out, but in GTA the number just don't work right now.

So I'll start with buying 2-4 unit multi-family properties. I plan to get 2 in the next year. I just don't know where in Canada to buy!

@Ming Lim

Is that the same book that Roy mentioned, by the Boirons?

@ Gary McGowan

I've decided not to buy a primary residence at this time, and to invest the extra $1k/month into rental properties. It's good to know the numbers you think are realistic for this area. I think I underestimated rent a little, but better to be low on income estimates, right?

For now, it's a bit too risky for us, as first time buyers, so we'll look for rental properties in other areas like Kitchener.

Thanks for chiming in. I'm new to the community and it's great to have experienced advice when weighing the pros and cons.

@Josh Compton

The person who said 2-3% definitely said it was 2-3% of the purchase price per year, because we were talking about personal homes, not rental units. Another person said that Gail Vaz-Oxlade (Canadian money writer / show host) says 3-5 % of the value of the home.

I'll only be renting out a portion of the (semi-detached) house and living in the basement, so it'll be partly rental-related expenses, but I have to maintain the whole house, even though it's not all rented out. So calculating maintenance based on income won't be right either.

@Josh Compton

For rental units, the maintenance is higher, but I've been told that for a primary residence the maintenance is more like 2-3% of purchase price. I will be renting out half the house, so I'm going with 3%, is that too low?

@Dale Plant

I guess I don't have to wait. I'm not sure where to get the information, but I can find out and check before making an offer. Good idea. I can probably estimate all the expenses more accurately by checking with the local authorities first.

Hi Bryan L.

Right now I pay $1,300 every month I'll never see again so I don't want to pay more than that, unless I can count it towards the principal. House prices around here wouldn't allow for a mortgage less than this.

Hi Gary McGowan

I'm looking at Meadowvale in Mississauga. The mortgage is 3% interest with 5% down. I'm hoping to get a second property (rental only) later this year, so I need to save more down payment for that one.

Hi all,

I'm preparing to buy my first property in GTA, Canada. I'd like to run these numbers by you to see if I'm fairly on track, or if I'm getting into a big mess. What do you think?

An example of a semi-detached house I'm looking at is $424,000 so monthly mortgage payments will be about $2000.

I've estimated annual expenses at $20,865.
3,790 Taxes
720 Insurance
1500 Hydro
120 Advertising
1500 Gas
500 Water & waste
12,735 Maintenance (at 3%)

I'll be getting more accurate numbers once I make an offer and start due diligence. But am I roughly ok with these?

That brings my total monthly bills to $3,645. I estimate I can live in the basement and rent out the top portion (2-3 bedroom) for $1,300 so I'll have to cover $2,345 myself.

Looking at the amortization table, I'm putting about $1,000 per month towards principal, averaged over the first 5 years. Since GTA is expected to continue growing strong and house prices are expected to increase, I can somewhat safely assume that when I sell, I'll get the same price I paid.

Currently I rent at $1,300. Assuming I put $1,000 a month on top of that towards a savings account (ie. paying off the principal) I'll be paying $2,300 every month... the same as my real expenses for owning the house.

I hope I explained it properly. I'd appreciate any feedback.

Tabatha