Real Estate

Ottawa Real Estate market discussion

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  • Sep 18th, 2017 9:20 am
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Sr. Member
Nov 13, 2013
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swales wrote:
May 14th, 2017 6:30 pm
I'm still going with I doubt very few. I've sold several houses as have family, friends, neighbors and no one ever came out even, all made a profit and like said before unless someone has no choice but to sell I doubt they would do it to break even.

Also, why pay 5%? There's no need to pay full commisons, you have to be nuts to do that. Ask for a discount or go to the next of the hundreds of agents waiting in line, most I've paid is 3% total but usually only 2.5%.
My experience has been the opposite. Most of the people I know have had their Real Estate fees covered didn't make nearly enough to pay fees and still break even. These were mostly post 2009 purchases and mostly in central Ottawa. A 2.5% listing in Ottawa seems a bit unrealistic as this would require the listing agent to have a 0% unless you are lowering the buyer commission also. I was looking at lot of houses last summer and the lowest I saw was 4%. Add in land transfer taxes, legal fees and breaking even is tough in a slow moving market like Ottawa.
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Jun 28, 2003
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Word is Hard Rock Casino will team up with OLG to expand the Rideau Carleton Raceway to expand what they currently have to include more slot machines and table games. A Hard Rock Cafe and a Hard Rock Hotel will be part of the deal.

This is what Melnyk (Senators owner) previously craved for the CTC and surrounding areas and he threw a temper tantrum when he did not get what he wanted. Moot point now as the team will be moving downtown anyway.

This will expand the entertainment options for folks living in the South-west part of town (Barrhaven, Manotick, Greely, Riverside South).
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May 7, 2017
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canabiz wrote:
May 15th, 2017 11:12 am
Word is Hard Rock Casino will team up with OLG to expand the Rideau Carleton Raceway to expand what they currently have to include more slot machines and table games. A Hard Rock Cafe and a Hard Rock Hotel will be part of the deal.

This is what Melnyk (Senators owner) previously craved for the CTC and surrounding areas and he threw a temper tantrum when he did not get what he wanted. Moot point now as the team will be moving downtown anyway.

This will expand the entertainment options for folks living in the South-west part of town (Barrhaven, Manotick, Greely, Riverside South).
Will this be an actual entertainment destination or merely a place to lose money like the Hull Casino? Too bad they didn't put it downtown at least that way we could take some money from the tourists.
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Feb 6, 2017
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fogetmylogin wrote:
May 15th, 2017 11:04 am
My experience has been the opposite. Most of the people I know have had their Real Estate fees covered didn't make nearly enough to pay fees and still break even. These were mostly post 2009 purchases and mostly in central Ottawa. A 2.5% listing in Ottawa seems a bit unrealistic as this would require the listing agent to have a 0% unless you are lowering the buyer commission also. I was looking at lot of houses last summer and the lowest I saw was 4%. Add in land transfer taxes, legal fees and breaking even is tough in a slow moving market like Ottawa.
What do you guys think about lowering the buyer's commission to 2.0 or even 1.5%? I understand it may result in them not being as motivated to show to their clients, however from my POV, why should I dole out 2.5% to the buyer if I don't really have to, that is a lot of money. This is if I'm not in a huge rush to sell my home. Then if you pay your selling agent 1%, the total would come to 2.5% which would be a more accepting amount for me.
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Oct 3, 2004
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fogetmylogin wrote:
May 15th, 2017 11:04 am
My experience has been the opposite. Most of the people I know have had their Real Estate fees covered didn't make nearly enough to pay fees and still break even. These were mostly post 2009 purchases and mostly in central Ottawa. A 2.5% listing in Ottawa seems a bit unrealistic as this would require the listing agent to have a 0% unless you are lowering the buyer commission also. I was looking at lot of houses last summer and the lowest I saw was 4%. Add in land transfer taxes, legal fees and breaking even is tough in a slow moving market like Ottawa.
Sounds like bad properties or they paid too much to start with as I have sold a 2009 home and made more than enough money to cover every cost and still make a good profit and same goes for others that I know that have sold 2008-2011 homes. Slow moving market? Again you must be in the wrong areas, money can be made in Ottawa.
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Dec 27, 2009
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audiorichard wrote:
May 15th, 2017 10:40 am
Agree, especially if you buy and sold within past five years in Ottawa market. Ottawa market is only up 2% from Year 2012 to 2016, it is not easy break-even if you include realtor fee, taxes and other fees. I know a couple who bought a big house and divorced, and they forced to sell and take a big loss.
Even now I doubt we would get any more for our place than we paid for it 3 years ago (and we've done lots of improvements). Places on our road are selling quickly when put on the market, but not for more money.
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Chickinvic wrote:
May 15th, 2017 10:20 am
Military families when they have to move (and furthermore they aren't going to care as much about small losses as it gets covered for them up to 25K). Yes, people would rather come out with profit, but that isn't always possible - at least they get the loss covered unless it came to more than 25K. Divorce situations are common too. There are MANY situations where people are forced to sell and don't always come out ahead.
audiorichard wrote:
May 15th, 2017 10:40 am
Agree, especially if you buy and sold within past five years in Ottawa market. Ottawa market is only up 2% from Year 2012 to 2016, it is not easy break-even if you include realtor fee, taxes and other fees. I know a couple who bought a big house and divorced, and they forced to sell and take a big loss.
Which is why in my post I said UNLESS it's some kind of an emergency in which they have no choice to sell. I was replying to the posts that were stating it's very hard to make a profit, let alone break even which just isn't the case unless someone overpaid for a property or bought in the wrong areas.
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Chickinvic wrote:
May 15th, 2017 11:29 am
Even now I doubt we would get any more for our place than we paid for it 3 years ago (and we've done lots of improvements). Places on our road are selling quickly when put on the market, but not for more money.
I guess it depends if the price you paid was on the high amount as no Ottawa doesn't see jumps like TO or Van but I know someone over where I believe you live that made $15k more this year than the comparable neighboring home sold for last June and they got a record breaking amount at that time so yes there are houses that continue to make money.
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Nov 11, 2004
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audiorichard wrote:
May 15th, 2017 10:40 am
Agree, especially if you buy and sold within past five years in Ottawa market. Ottawa market is only up 2% from Year 2012 to 2016, it is not easy break-even if you include realtor fee, taxes and other fees. I know a couple who bought a big house and divorced, and they forced to sell and take a big loss.
Exactly, like anything else it will take time to make money on a house, if you bought with in the past few years, you will take breaking even a success.
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Jan 15, 2017
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Chickinvic wrote:
May 15th, 2017 10:20 am
Military families when they have to move (and furthermore they aren't going to care as much about small losses as it gets covered for them up to 25K). Yes, people would rather come out with profit, but that isn't always possible - at least they get the loss covered unless it came to more than 25K. Divorce situations are common too. There are MANY situations where people are forced to sell and don't always come out ahead.
I agree. There are also many situations where sellers think that they made money, but in actual fact they didn't. I had a neighbour across the street sell a few years ago. Bought for $355K, sold for $384k two years later and told me he came out ahead. We live in a new subdivision so I can pretty well ball park what he paid in upgrades and improvements for his home (it helps to that he constantly complained to me in the 2 years how much he had to pay for certain items). I estimated he easily lost $30K just on upgrades and improvements. Add in closing costs, property tax and mortgage interest and that particular home ownership was a very expensive experience.
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Oct 3, 2004
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The 2% is also the average, there are several areas that are up way more than that, those numbers have previously been posted in this thread but yes of course it can take a couple of years to make a profit but again comes down to how much was originally paid, if too much was invested into the property, area etc so not everything can all be grouped together.
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skeet50 wrote:
May 15th, 2017 12:13 pm
I agree. There are also many situations where sellers think that they made money, but in actual fact they didn't. I had a neighbour across the street sell a few years ago. Bought for $355K, sold for $384k two years later and told me he came out ahead. We live in a new subdivision so I can pretty well ball park what he paid in upgrades and improvements for his home (it helps to that he constantly complained to me in the 2 years how much he had to pay for certain items). I estimated he easily lost $30K just on upgrades and improvements. Add in closing costs, property tax and mortgage interest and that particular home ownership was a very expensive experience.
Well yes if you over pay you can't expect to make a profit. Now since we're giving examples, a buddy I know bought a townhouse for $260,000 total, no other upgrades added in 2010 and sold in 2017 for $398,000, sold himself and paid 2.5% total fees so while it's not crazy profits like TO or Van it's far from the doom and gloom posted in here. I can give a dozen other examples like this or better.
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swales wrote:
May 15th, 2017 12:31 pm
Well yes if you over pay you can't expect to make a profit. Now since we're giving examples, a buddy I know bought a townhouse for $260,000 total, no other upgrades added in 2010 and sold in 2017 for $398,000, sold himself and paid 2.5% total fees so while it's not crazy profits like TO or Van it's far from the doom and gloom posted in here. I can give a dozen other examples like this or better.
No one is saying anything about DOOM and GLOOM

Were just saying its a regular housing market, it will take years to make a profit after paying the NORMAL 5% + Hst Commision, Sure you can sell it yourself with a dollar store sign on your yard, but most people wont take that route

2% Gains a year give or take, Slow and Steady wins the race :)
Last edited by ilusa on May 15th, 2017 12:38 pm, edited 1 time in total.
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Sr. Member
Nov 13, 2013
611 posts
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swales wrote:
May 15th, 2017 12:31 pm
Well yes if you over pay you can't expect to make a profit. Now since we're giving examples, a buddy I know bought a townhouse for $260,000 total, no other upgrades added in 2010 and sold in 2017 for $398,000, sold himself and paid 2.5% total fees so while it's not crazy profits like TO or Van it's far from the doom and gloom posted in here. I can give a dozen other examples like this or better.
Wow where was that? I think your examples are far from typical. I am not sure if we live in the same city. I know someone in Alta Vista appealing their property tax assessment because houses are going for less than they bought in 2011. Someone in Manor Park who has seen houses bought twice over the past 10 years. The second time for less than the first. Everyone who I know that owns a downtown condo says they are worth less than they were in 2010-2011. Even their tax assessment recognized this and lowered assessments.
As you say some places are more than 2% but as a result by definition some places are lower.
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Nov 26, 2004
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swales wrote:
May 15th, 2017 12:31 pm
Well yes if you over pay you can't expect to make a profit. Now since we're giving examples, a buddy I know bought a townhouse for $260,000 total, no other upgrades added in 2010 and sold in 2017 for $398,000, sold himself and paid 2.5% total fees so while it's not crazy profits like TO or Van it's far from the doom and gloom posted in here. I can give a dozen other examples like this or better.
I could be splitting hair, but I don't think 2009 is necessary the best example. After all, the Ottawa market was doing pretty well up until around 2012. And if you were to go back to the first few pages of this thread, you can tell there are real estate bulls who thinks the Ottawa market will continue to go up at the same rates as previous years. However, it turn out that between 2012 and 2016, there were almost zero growth in real estate prices here in this city. The market only started to wake up during late fall of 2016.

All to say, and I can't really proof it, but I would think a good chunk of the profit your buddy made happened in 2009 to 2012. And if someone who purchased a Townhome or a single family home in 2012-2015, depending on how much they paid, they may end up breaking even or coming out with a small gain after they tally up all expenses. But people who bought a condo during that period, I think they are still in the red if they were to sell today.

Though, I do agree that with Real Estate, a person make their money when they buy but not when they sell. After all, they can dictate how much they are willing to pay for a property, but they can't control how much it will sell for as the market dictates that when it comes time for that person to sell.

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