Real Estate

Ottawa Real Estate market discussion

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  • Dec 15th, 2017 11:20 am
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[OP]
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Nov 26, 2004
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dc200 wrote:
Oct 4th, 2017 5:46 pm
I'm not sure how this works. Do I only start paying mortgage after moving in?

I also don't have much funds freed up for this at the moment, so i think my only option is to be priced out of a market that up until this summer was moving steadily. I knew Ottawa was too good to be true.
Yes, you only leave the builder a deposit of $20k to $30k depending or what or who you buy with. The rest of the amount is due or you start paying the mortgage when you take possession.
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Mar 30, 2010
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William W wrote:
Oct 4th, 2017 6:27 pm
Yes, you only leave the builder a deposit of $20k to $30k depending or what or who you buy with. The rest of the amount is due or you start paying the mortgage when you take possession.
Interesting. Is the deposit considered part of the downpayment? And is the deposit refundable should I decide to change my mind later on?
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Oct 3, 2004
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dc200 wrote:
Oct 4th, 2017 6:39 pm
Interesting. Is the deposit considered part of the downpayment? And is the deposit refundable should I decide to change my mind later on?
Yes deposit can go towards downpayment and no you don't get it back if you break the contract later on
Deal Addict
Oct 3, 2004
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Saw a CTV segment tonight on the Minto Barrhaven development and I couldn't help but laugh at the people in line complaining about how much Minto is raising the price from Phase 1, these guys did it to themselves by lining up 5 days before release.
Newbie
Nov 23, 2014
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Toronto, ON
Saw it as well. Who would of thought people would be lining up in farhaven. What a joke!
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Jan 15, 2017
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swales wrote:
Oct 4th, 2017 8:11 pm
Saw a CTV segment tonight on the Minto Barrhaven development and I couldn't help but laugh at the people in line complaining about how much Minto is raising the price from Phase 1, these guys did it to themselves by lining up 5 days before release.
Of course they did it to themselves. There is one valuable lesson that I have learned after buying three new builds. While you buy in the new build market, you sell in the resale market. The fact that the builder has increased the price of your model by $10k, $20k, or $30k does not mean that a buyer will give you the same increase in the resale market.
[OP]
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Nov 26, 2004
2010 posts
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skeet50 wrote:
Oct 4th, 2017 8:42 pm
Of course they did it to themselves. There is one valuable lesson that I have learned after buying three new builds. While you buy in the new build market, you sell in the resale market. The fact that the builder has increased the price of your model by $10k, $20k, or $30k does not mean that a buyer will give you the same increase in the resale market.
I think it depends on market condition or population growth rate. I remember in 2000 during the tail end of the tech boom and the beginning of the government boom, there were a large influx of people moving here where vacancy rate was 0.5%. At that time, buyers were willing to pay more than what builders charged for a similar model home because they can't wait a year to two years before they can move in.

Though, unless Ottawa can defies the odds and win the Amazon HQ2 sweepstakes, it will be very difficult to replicate the early 2000 boom town housing market.
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Jun 28, 2003
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I stopped by the Minto office after lunch to see what's going on and sales was indeed very brisk. They only have 2 36' single lots left at the time and the lot premium was close to $70K because both lots back onto a pond.

I ran into a colleague whose wife lined up since Wed. They managed to secure a lot but also had to pay a lot premium, in addition to the price increase compared to Phase 1. They needed to get a bigger home so they were just happy to get something, they have been living in Barrhaven for the last 15 years so they want to continue staying here.

I believe the next phase won't be released until next year so it will be interesting to see if there will be another price hike.
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[OP]
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canabiz wrote:
Oct 7th, 2017 2:42 pm
I stopped by the Minto office after lunch to see what's going on and sales was indeed very brisk. They only have 2 36' single lots left at the time and the lot premium was close to $70K because both lots back onto a pond.

I ran into a colleague whose wife lined up since Wed. They managed to secure a lot but also had to pay a lot premium, in addition to the price increase compared to Phase 1. They needed to get a bigger home so they were just happy to get something, they have been living in Barrhaven for the last 15 years so they want to continue staying here.

I believe the next phase won't be released until next year so it will be interesting to see if there will be another price hike.
Thanks for the update. So even with a hefty price increase of over 10%, they still managed to almost sell out, that's pretty impressive.
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Oct 3, 2004
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William W wrote:
Oct 10th, 2017 9:18 am
Thanks for the update. So even with a hefty price increase of over 10%, they still managed to almost sell out, that's pretty impressive.
It's a very good strategy by Minto but of course only benefits them. They release a very small amount of lots every few months and increase the price each time so causes a frenzy as these people think they must buy now. I really hope other builders don't follow this strategy as its only bad for buyers.
[OP]
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Nov 26, 2004
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swales wrote:
Oct 10th, 2017 11:06 am
It's a very good strategy by Minto but of course only benefits them. They release a very small amount of lots every few months and increase the price each time so causes a frenzy as these people think they must buy now. I really hope other builders don't follow this strategy as its only bad for buyers.
To be fair, I think that's a strategy that has been used by other builders / developers in other cities/countries for years, it is not a strategy that Minto recently invented for Harmony.

In fact, I believe other builders such as Mattamy is practicing the same thing. Take for example in their Half Moon Bay development. They only release 30-40 lots at a time within the current phase, and they only release more lots when a certain model sell out. Besides just because they released the lots, it doesn't prevent them from increasing their price. If the development is selling well, any developer can increase their price every 2 weeks if demand warrants.
Member
Aug 14, 2007
243 posts
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Ottawa
William W wrote:
Oct 10th, 2017 1:45 pm
To be fair, I think that's a strategy that has been used by other builders / developers in other cities/countries for years, it is not a strategy that Minto recently invented for Harmony.

In fact, I believe other builders such as Mattamy is practicing the same thing. Take for example in their Half Moon Bay development. They only release 30-40 lots at a time within the current phase, and they only release more lots when a certain model sell out. Besides just because they released the lots, it doesn't prevent them from increasing their price. If the development is selling well, any developer can increase their price every 2 weeks if demand warrants.
Totally agree, and it is all about supple and demand. If the new release is way over the market price (which is what people are willing to pay), then new lots are just sitting there. Ottawa real estate market is healthy, it is because the price is up around 2%-4% annually (in average) for the past 10 years. I remember that 10 years ago, which I bought a brand new single in Riverside South and there were one brand new finished single house sitting at the end of street. The builder was asking way over the market price at that moment and the builder had not change the price. After around 4 years, the market price was catching the builder price and it is sold at the asking price at the end.
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Oct 3, 2004
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William W wrote:
Oct 10th, 2017 1:45 pm
To be fair, I think that's a strategy that has been used by other builders / developers in other cities/countries for years, it is not a strategy that Minto recently invented for Harmony.

In fact, I believe other builders such as Mattamy is practicing the same thing. Take for example in their Half Moon Bay development. They only release 30-40 lots at a time within the current phase, and they only release more lots when a certain model sell out. Besides just because they released the lots, it doesn't prevent them from increasing their price. If the development is selling well, any developer can increase their price every 2 weeks if demand warrants.
Of course Minto never invented it, they just copied what other cities do (or even what they do in other cities) and interesting Mattamy now does it too especially since they're also in other cities. Those two builders are two builders I've never bought from because of their low quality compared to others so if the lowest quality builders are doing it i would hate to see the quality builders now start it as they haven't been holding back lots like these other two are, they release phase 1, 2 etc and not phase 1 part 1, part 2, part 3 and then phase 2 part 1 etc.
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May 12, 2004
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swales wrote:
Oct 10th, 2017 11:06 am

It's a very good strategy by Minto but of course only benefits them. They release a very small amount of lots every few months and increase the price each time so causes a frenzy as these people think they must buy now. I really hope other builders don't follow this strategy as its only bad for buyers.
William W wrote:
Oct 10th, 2017 1:45 pm
To be fair, I think that's a strategy that has been used by other builders / developers in other cities/countries for years, it is not a strategy that Minto recently invented for Harmony.

In fact, I believe other builders such as Mattamy is practicing the same thing. Take for example in their Half Moon Bay development. They only release 30-40 lots at a time within the current phase, and they only release more lots when a certain model sell out. Besides just because they released the lots, it doesn't prevent them from increasing their price. If the development is selling well, any developer can increase their price every 2 weeks if demand warrants.
swales wrote:
Oct 10th, 2017 3:19 pm

Of course Minto never invented it, they just copied what other cities do (or even what they do in other cities) and interesting Mattamy now does it too especially since they're also in other cities. Those two builders are two builders I've never bought from because of their low quality compared to others so if the lowest quality builders are doing it i would hate to see the quality builders now start it as they haven't been holding back lots like these other two are, they release phase 1, 2 etc and not phase 1 part 1, part 2, part 3 and then phase 2 part 1 etc.
That's not how it works. Phasing is a requirement imposed by all cities/municipalities. It is part of the subdivision agreement with the city. The requirement is a new phase is released once 50% of buyers from previous phase have lived in their homes for 3 seasons (1 has to be winter). The city then conducts water/sewer capacity testing, drainage/storm sewers studies, traffic impact studies, grading changes in soil, etc. The cost for these engineering firms is back charged to the developer. The denser the development the lower the lot allocation will be per phase.

This has absolutely nothing to do with builders. They didn't copy anything and it's not a strategy. Every developer would release 500 lots if they could to sell at once and move on to the next patch of land.

audiorichard wrote:
Oct 10th, 2017 2:30 pm

Totally agree, and it is all about supple and demand. If the new release is way over the market price (which is what people are willing to pay), then new lots are just sitting there. Ottawa real estate market is healthy, it is because the price is up around 2%-4% annually (in average) for the past 10 years. I remember that 10 years ago, which I bought a brand new single in Riverside South and there were one brand new finished single house sitting at the end of street. The builder was asking way over the market price at that moment and the builder had not change the price. After around 4 years, the market price was catching the builder price and it is sold at the asking price at the end.
In the case of Riverside South they had no incentive to sell those inventory homes as they had reached the 50% rule.
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Cas77 wrote:
Oct 11th, 2017 11:01 am
That's not how it works. Phasing is a requirement imposed by all cities/municipalities. It is part of the subdivision agreement with the city. The requirement is a new phase is released once 50% of buyers from previous phase have lived in their homes for 3 seasons (1 has to be winter). The city then conducts water/sewer capacity testing, drainage/storm sewers studies, traffic impact studies, grading changes in soil, etc. The cost for these engineering firms is back charged to the developer. The denser the development the lower the lot allocation will be per phase.

This has absolutely nothing to do with builders. They didn't copy anything and it's not a strategy. Every developer would release 500 lots if they could to sell at once and move on to the next patch of land.




In the case of Riverside South they had no incentive to sell those inventory homes as they had reached the 50% rule.
Urbandale never reduces price either. Why would they, they basically own all of RSS.

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