Personal Finance

Real Estate Investing: Apartments vs Houses?

  • Last Updated:
  • Mar 25th, 2011 11:20 am
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Poll: Investing in an apartment or a house?

  • Total votes: 13. You have voted on this poll.
Apartments
 
4
31%
Houses
 
9
69%
Jr. Member
Nov 9, 2007
182 posts
20 upvotes
Vancouver

Real Estate Investing: Apartments vs Houses?

Hi, I have some money in my savings that I'd like to use for investing in a property in Toronto. I can only afford property around $500,000 though. Based on your experience or analysis, is it better to invest in an apartment or a house?
11 replies
Deal Fanatic
User avatar
Oct 23, 2003
8455 posts
2000 upvotes
"An investment operation is one which, upon thorough analysis promises safety of principal and an adequate return. Operations not meeting these requirements are speculative."

1. are you sure housing prices will never drop
2. are you guaranteed a decent return
Jr. Member
Nov 9, 2007
182 posts
20 upvotes
Vancouver
Buggy166 wrote: "An investment operation is one which, upon thorough analysis promises safety of principal and an adequate return. Operations not meeting these requirements are speculative."

1. are you sure housing prices will never drop
2. are you guaranteed a decent return

No investment is risk free
Jr. Member
Oct 14, 2007
118 posts
4 upvotes
If you can afford $500,000, why not buy 2 or 3 multiplex apartments in Moncton where the rates charged are high, the vacancy rate is low, and your cap rate is much much better than in Toronto?

Example here $500K won't get you much in way of a dual-income property. See Moncton or Hamilton for $200K properties, bringing in $2100+ in rent..

Double that and voila.
Deal Addict
Jan 18, 2010
1205 posts
88 upvotes
Go buy 10 50K condos in Tampa, rent em for 600/month and you have 6000/month on a property that has already dropped 60-70%.

I really have to stop googling FLA properties- knowing what I paid for my place and what things cost there.
Jr. Member
Jul 11, 2010
146 posts
15 upvotes
RaptorsTV wrote: No investment is risk free

is that your way of saying you've done the necessary research and legwork that convinced you RE is a good investment choice right now? hmm, since your title suggests you can't even decide between an apartment of house... i'd venture to guess that isn't the case

it's true that no investment is risk free, but i expect to be compensated adequately based on the amount of risk i'm taking on.

real question is: how much risk do you foresee in owning property in toronto and being a landlord in the RE market?
Deal Fanatic
User avatar
Oct 23, 2003
8455 posts
2000 upvotes
RaptorsTV wrote: No investment is risk free

gambling isnt risk free either. its not what makes them the same, its what sets the 2 apart.
Jr. Member
Mar 2, 2011
190 posts
14 upvotes
Richmond Hill
I'm actually a commercial real estate broker with Cushman & Wakefield (largest privately held commercial real estate firm in the world) here in New Brunswick. The above comment is correct. For $500K you would get much better value buying out here then buying in Toronto.

Most of the large investment deals done out here are bought by investors from Montreal and Toronto.

In fact, I specialize in investment properties, such as apartment buildings. If you would like me to show you some investment assets down here, or have any questions, please e-mail me at rambrose@cweast.com, and we can set up a time to speak on the phone.
Jr. Member
Nov 9, 2007
182 posts
20 upvotes
Vancouver
yeah, I think Toronto's properties offer some value at the current market prices. if you compared with Vancouver, for instance, Toronto's property values are relatively cheap
Deal Addict
Nov 24, 2004
4664 posts
1242 upvotes
Toronto
RaptorsTV wrote: yeah, I think Toronto's properties offer some value at the current market prices. if you compared with Vancouver, for instance, Toronto's property values are relatively cheap

In Vancouver it's pretty much impossible to buy a decent rental property now and have it be cash-flow positive, whereas in Toronto it's just difficult. I guess everything's relative...
Jr. Member
Oct 14, 2007
118 posts
4 upvotes
RaptorsTV wrote: yeah, I think Toronto's properties offer some value at the current market prices. if you compared with Vancouver, for instance, Toronto's property values are relatively cheap

I'm glad you see value in a potentially overpriced Toronto real estate market.
Deal Addict
User avatar
Jun 28, 2007
3866 posts
1027 upvotes
RaptorsTV wrote: yeah, I think Toronto's properties offer some value at the current market prices. if you compared with Vancouver, for instance, Toronto's property values are relatively cheap

How can you use Vancouver as a frame of reference? This is the most overvalued city for housing in North America (if not the world) and most economists believe its as much as 30% or more. In comparison Toronto's market may look comparatively better but it too is estimated to be overvalued by about 10%. Either way BOTH are overvalued and can hardly be deemed "cheap". :facepalm:

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