Real Estate

Ottawa Real Estate market discussion

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  • Sep 18th, 2017 9:20 am
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Member
Aug 14, 2007
238 posts
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Ottawa
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 have spent sometime in Ottawa real estate market for the past 10 years, and I really need to learn which part of Ottawa you can bought for $260k in 2010 and sold for almost $400k in 2017? I am not saying it is impossible, it is like someone may win the lotto max next week.

Maybe your friend buy the house from his/her parents with big discount and sell it to some uneducated buyers with big premium? Smiling Face With Open Mouth
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Oct 3, 2004
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audiorichard wrote:
May 15th, 2017 1:42 pm
I have spent sometime in Ottawa real estate market for the past 10 years, and I really need to learn which part of Ottawa you can bought for $260k in 2010 and sold for almost $400k in 2017? I am not saying it is impossible, it is like someone may win the lotto max next week.

Maybe your friend buy the house from his/her parents with big discount and sell it to some uneducated buyers with big premium? Smiling Face With Open Mouth
Kanata and this isn't an isolated incident, as I've done it twice myself in the area.

I'm sorry but all these replies about small gains, and no gains after 2012 really need to expand their views as not all of Ottawa is the same and there are places that are continually gaining in value. If you want an after 2012 example with an okay gain, house sold for $372,000 in 2014 and the exact same neighboring house with the same size lot, same sq/ft and same upgrades sold for $399,900 in 2016. So the same timeframe that people say there was no growth.
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Nov 11, 2004
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swales wrote:
May 15th, 2017 2:18 pm
Kanata and this isn't an isolated incident, as I've done it twice myself in the area.

I'm sorry but all these replies about small gains, and no gains after 2012 really need to expand their views as not all of Ottawa is the same and there are places that are continually gaining in value. If you want an after 2012 example with an okay gain, house sold for $372,000 in 2014 and the exact same neighboring house with the same size lot, same sq/ft and same upgrades sold for $399,900 in 2016. So the same timeframe that people say there was no growth.
400000 - 5% + hst ( 22,500 ) = 377.500

Which is about break even
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Nov 13, 2013
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swales wrote:
May 15th, 2017 2:18 pm
Kanata and this isn't an isolated incident, as I've done it twice myself in the area.

I'm sorry but all these replies about small gains, and no gains after 2012 really need to expand their views as not all of Ottawa is the same and there are places that are continually gaining in value. If you want an after 2012 example with an okay gain, house sold for $372,000 in 2014 and the exact same neighboring house with the same size lot, same sq/ft and same upgrades sold for $399,900 in 2016. So the same timeframe that people say there was no growth.
Makes more sense if you are talking about Kanata. Far less impact of Government cutbacks, rebound in tech employment and addition of new DND HQ.
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Nov 26, 2004
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ilusa wrote:
May 15th, 2017 2:27 pm
400000 - 5% + hst ( 22,500 ) = 377.500

Which is about break even
Add in closing cost, land transfer tax and possible mortgage penalties, and we are in the red.

Though, to be fair, if one were to sell it privately, and only pay 2.5% commission to the buyer's agent, they may end up with a small profit. Or should that be consider a profit, or their "compensation" for acting as the selling agent? :)
Last edited by William W on May 15th, 2017 2:36 pm, edited 1 time in total.
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Oct 3, 2004
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ilusa wrote:
May 15th, 2017 2:27 pm
400000 - 5% + hst ( 22,500 ) = 377.500

Which is about break even
Break even? House wasn't bought for that price, that's showing how the value went up over two years. House was bought for $270,000 and sold for $399,900 if you want to know so no not break even.
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William W wrote:
May 15th, 2017 2:36 pm
Add in closing cost, land transfer tax and possible mortgage penalties, and we are in the red.
You guys need to learn how to read....lol

Funny how everyone wants to just see negative, sorry but a lot of us are doing okay with Ottawa real estate.
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Nov 26, 2004
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swales wrote:
May 15th, 2017 2:39 pm
You guys need to learn how to read....lol
And what others are trying to point out is the growth is so minimal where it may not even cover the cost of selling, let alone any profit.
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Nov 26, 2004
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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).
This may give a boost to housing demand (rental or resale) for the area you mentioned.
Member
Aug 14, 2007
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Ottawa
swales wrote:
May 15th, 2017 2:39 pm
You guys need to learn how to read....lol

Funny how everyone wants to just see negative, sorry but a lot of us are doing okay with Ottawa real estate.
As a real estate owner and investor, I really want to see BIG GAIN in Ottawa market in the past few years, however, we are not GTA. I have moved to Ottawa from Toronto since 2006. Sometime I am wonder if I stay in Toronto and doing what I have been doing in Ottawa for the past 10 years, I am so ready to retire. Smiling Face With Horns

Oh well, my experience is telling me there are almost no gain in most of real estate market from year2012 to year2016 if you included all the transition costs. That is why I learn few things in the past few years. First, buy and sell in grapevine to save the realtor cost, and I had buy and sell no less than six properties in the past five years. This method works pretty well in Ottawa market, and selling without agents are almost impossible in Toronto. Secondly, if you are long term investor, Ottawa was a heaven to setup a good income properties portfolio in the past four years, there were many good deals in the market and there are many good positive cash-flow properties in the market. However, the market was started to improve since last summer and good deals were disappear.
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William W wrote:
May 15th, 2017 2:41 pm
And what others are trying to point out is the growth is so minimal where it may not even cover the cost of selling, let alone any profit.
And I showed how that is not true all the time but people don't want to see that I guess because it's not happening for them but because someone isn't seeing good returns you can't make blanket statements that all of Ottawa is stale and you're lucky to break even when that's not the case.

I'll stop posting now as clearly people rather keep blinders on.
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Jan 15, 2017
471 posts
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William W wrote:
May 15th, 2017 12:58 pm
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.
I agree that the Ottawa market was doing well until Harper's budget in 2012 and the layoffs in the federal public service were announced.

Year Average Price % Change

2007 $272,618 6.4
2008 $290,366 6.6
2009 $303,888 4.9
2010 $327,225 7.7
2011 $343,284 4.9
2012 $351,792 2.3
2013 $357,348 1.6
2014 $361,707 1.2
2015 $367,632 1.7
2016 $371,901 1.2

We moved to Ottawa in 2007 and bought for $354K. Sold in 2012 for $480K, so we did a little better than the average gains noted above. Bought in 2012 for $399k and it will take many years to see a $126K gain again. The historical average for Ottawa is about 6.6%, but as you can see, we have been below that for the past 5+ years. I am hoping that this year is the start of things finally getting back to normal.
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Jun 28, 2003
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onthefence wrote:
May 15th, 2017 11:20 am
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.
The story has a Hard Rock Cafe and a Hard Rock Hotel as part of the entertainment complex so I would like to think there is more than just gambling. There are a number of hotels in the vicinity and it is not too far from the airport so you will definitely see visitors here.
William W wrote:
May 15th, 2017 2:51 pm
This may give a boost to housing demand (rental or resale) for the area you mentioned.
I believe so but time will tell. Ottawa Citizen article mentions there will be up to 2,000 construction jobs and similar number for the complex when the dust settles. It goes without saying but people like to live close to their workplace, be it rental or primary, and I see positive signs for the aforementioned area. I should include Findlay Creek in there as well.
Atomy Korean Beauty Care/Health Care/Household products available in Ottawa.
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HN12345 wrote:
May 15th, 2017 11:23 am
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.
I remember you mentioned in a previous post your home is worth over $400K but let's just use $400K for the sake of simplicity. 2.5% of this is $10K and 2% is $8K. Is $2K something that you can forego in the grand scheme of things to ensure a motivated agent will bring in qualified buyers for a seamless transaction, rather than tire kickers and time wasters?

I am not saying buyers' agents who are willing to take 2.0% of 1.5% are the bottom of the barrel, for a lack of a better word, but you simply cover more ground with the ones taking the full commissions of 2.5%. If you are going to sell on your own (Grapevine, Comfree, Property Guys etc), you will save the sellers' agents commissions from the get-go anyway.

My point is you have to pick your battles. There is certainly no harm in trying to ask for a reduction but be prepared.
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Mar 24, 2015
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Ottawa, ON
canabiz wrote:
May 15th, 2017 4:41 pm

I believe so but time will tell. Ottawa Citizen article mentions there will be up to 2,000 construction jobs and similar number for the complex when the dust settles. It goes without saying but people like to live close to their workplace, be it rental or primary, and I see positive signs for the aforementioned area. I should include Findlay Creek in there as well.
Not to forget that the LRT will end south between Riversouth South and Findlay Creek.

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