Real Estate

How renting in Toronto has become a total nightmare

  • Last Updated:
  • Oct 15th, 2017 2:10 pm
Deal Addict
Feb 9, 2009
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Messerschmitt wrote:
Sep 11th, 2017 8:07 pm
Buy it now, hold it for 25 years, and maybe you hit the jackpot if detroit all of the sudden spurs to life. Sell it for a few hundo k's, or millions.
If Detroit actually revitalized could be worth a ton... issue is what is the back taxes on this and what neighbourhood? Could be the ghettos since it's not all that far from midtown Detroit.
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Mar 23, 2003
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Hamilton
Messerschmitt wrote:
Sep 11th, 2017 8:07 pm
Buy it now, hold it for 25 years, and maybe you hit the jackpot if detroit all of the sudden spurs to life. Sell it for a few hundo k's, or millions.
Ya I know... the land alone!
I almost considered it. Seriously.
But the annual taxes, esp since I'm not a US citizen would eat me alive on that size!
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Mar 23, 2003
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Hamilton
Sanyo wrote:
Sep 11th, 2017 8:10 pm
If Detroit actually revitalized could be worth a ton... issue is what is the back taxes on this and what neighbourhood? Could be the ghettos since it's not all that far from midtown Detroit.
I don't think back taxes are an issue since they go after who owes the back taxes.
I think theres insurance and such to protect me from them coming after me for something I don't owe.
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Jul 17, 2008
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Sanyo wrote:
Sep 11th, 2017 8:10 pm
If Detroit actually revitalized could be worth a ton... issue is what is the back taxes on this and what neighbourhood? Could be the ghettos since it's not all that far from midtown Detroit.
Where could the info be found about the back taxes. Also, I've been neighbourhoods that were bad and turned out really good. Saw the reverse too
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Mar 23, 2003
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Messerschmitt wrote:
Sep 11th, 2017 8:18 pm
Where could the info be found about the back taxes. Also, I've been neighbourhoods that were bad and turned out really good. Saw the reverse too
call the agent representing the property.
He/she should be able to pull all the info for you.
But I don't think you're liable for it. Key word however. *think*
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sidshock wrote:
Sep 11th, 2017 8:21 pm
call the agent representing the property.
He/she should be able to pull all the info for you.
But I don't think you're liable for it. Key word however. *think*
if the old owner is dead from a gang shootout, who do you think they go after next? *real talk*
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Mar 23, 2003
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Sanyo wrote:
Sep 11th, 2017 8:44 pm
if the old owner is dead from a gang shootout, who do you think they go after next? *real talk*
I'd hope legally, it's a write off.
As for the gang, I guess the new owners are next in line for a welcoming! lol
Member
Oct 13, 2011
423 posts
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1,000 planned rental units convert to condos in wake of Ontario rent-control expansion
The government's policy change reduced "growth prospects for rental" and contributed to a decision by RioCan Real Estate Investment Trust and Allied Properties Real Estate Investment Trust to convert 133 planned rental units to condominiums at the Kingly development on King Street West in Toronto, said Jonathan Gitlin, senior vice-president of investments and residential at RioCan.

"The legislation caused us to review our rental projects across the GTA," Mr. Gitlin said by e-mail. "The impact of the legislation will be to mute growth through limiting rental growth and enhance risk that will accompany inflation as a landlord will need to absorb increased expenses."

The FRPO found in a survey of its members, who are mostly large property owners and management companies, that about 20,000 of more than 28,000 planned purpose-built rental units in the GTA were under review as a result of the government's housing measures. The organization is tracking unit conversions and cancellations and is also launching a campaign on Monday to push the government to amend its rent-control legislation.

After the government's announcement, the number of purpose-built rental units proposed for the GTA continued to rise in the second quarter of 2017. However, the increase was at a much slower rate than in previous periods – 1,719 units were added to the planned inventory from April to June compared with 2,453 units in the first three months of this year and 5,645 units in the second quarter of 2016, according to Urbanation, a real estate consulting firm that prepared the report for the FRPO.
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Feb 22, 2011
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Toronto
This is exactly what everyone thought was going to happen. Reduced supply is just going to jack up rental prices even more.

These are just ones that were in development being converted, how many more will just canceled before they start?
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Feb 9, 2009
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rjg4235 wrote:
Sep 25th, 2017 10:57 am
This is exactly what everyone thought was going to happen. Reduced supply is just going to jack up rental prices even more.

These are just ones that were in development being converted, how many more will just canceled before they start?
Becoming a landlord is becoming way more difficult in Ontario now.

No balance, almost everything is swinging the tenants way... so I could see more and more supply leave.
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Apr 21, 2004
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Only good thing going with the landlords is that mortgage qualification rate is 50 bps higher and if uninsured mortgages need to qualify 200 bps over the contract rate, more households will have to rent for at least one more year before qualifying for a mortgage.
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Sep 8, 2007
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Way Out of GTA
Sanyo wrote:
Sep 25th, 2017 11:14 am
Becoming a landlord is becoming way more difficult in Ontario now.

No balance, almost everything is swinging the tenants way... so I could see more and more supply leave.
They pushed something that was a marginal investment already given the low cap rates, and difficulties that the anti landlord rules produced and it was the final straw for many. Including many smaller owners who could just blow out their properties into the market. Intended consequences?

We know rental rates on new tenancy skyrocketed post announcement and supply dried up. Then you have the NDP talking about rent control surviving even on vacancy...which is far fetched and whacked out...but increasingly no one has any confidence that Wynne wouldn't do it if she thought it could get her some NDP votes. Smaller landlords have become increasingly worried that their personal property will be donated to the govt agenda.
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Mar 31, 2008
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Toronto
rjg4235 wrote:
Sep 25th, 2017 10:57 am
This is exactly what everyone thought was going to happen. Reduced supply is just going to jack up rental prices even more.

These are just ones that were in development being converted, how many more will just canceled before they start?
Yupp. Now instead of purpose rental buildings that would have brought not only additional supply, but a stabilizing force to the rental market, it will only get more and more rare from here.

The other thing it does is it almost now absolutely eliminates the rental purpose building market in Ontario. If let's say these developments did well, it would have opened the door to even more developments. Not just from REITs, but also from institutions as part of their alternative asset class (they love stable income). Sucks to be a future renter or one trying to go out and rent now.
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Oct 13, 2011
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Even though, Wynne's came out with these poorly thought out public policies (housing, hydro, minimum wage, etc) that will hurt Ontario's economy for years to come, the real sad part is with the very underwhelming performance of Patrick Brown so far, I would not be surprise if she wins another term.

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