Real Estate

Toronto rent skyrocket after new regulations reduce supply and increased demand

  • Last Updated:
  • Jan 29th, 2018 9:34 pm
Deal Addict
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Sep 23, 2014
1655 posts
433 upvotes
Toronto, ON
mathiewannabe wrote:
Jul 12th, 2017 7:19 pm
lol he has no idea. canada is only raising rates because of US.

people will be getting USD not CAD.
I am talking about physical assets, not currency trades.
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Deal Addict
Feb 22, 2011
3690 posts
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Toronto
The fact this thread is being down voted just goes to show people don't want to see the truth or talk about it. They'd rather bury their head and say home ownership is doomed.

The funny part is a few years ago I had a slightly cash flow negative rental property and people here and on other forms called me a moron for keeping it. Since then it has appreciated $200k and is now generating $300/month positive cash flow while the mortgage is being paid down.

The crazy part about having a rental property is how fast time flies. You almost forget you have someone there if they etransfer the money. Next think you know mortgage is down $25k property is up in value and your account for the property has thousands of cash in it.
Member
Apr 17, 2017
441 posts
322 upvotes
rjg4235 wrote:
Jul 13th, 2017 1:04 pm
The fact this thread is being down voted just goes to show people don't want to see the truth or talk about it. They'd rather bury their head and say home ownership is doomed.

The funny part is a few years ago I had a slightly cash flow negative rental property and people here and on other forms called me a moron for keeping it. Since then it has appreciated $200k and is now generating $300/month positive cash flow while the mortgage is being paid down.

The crazy part about having a rental property is how fast time flies. You almost forget you have someone there if they etransfer the money. Next think you know mortgage is down $25k property is up in value and your account for the property has thousands of cash in it.
I agree with most of this. I do think we might have been living in an exceptional market where a cash flow negative property happened to turn positive for you. As a general rule though, that is probably not a good long term winning strategy. Cash flow positive is all but guaranteed to win however.
Deal Addict
Feb 22, 2011
3690 posts
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Toronto
elpresidente wrote:
Jul 13th, 2017 1:17 pm
I agree with most of this. I do think we might have been living in an exceptional market where a cash flow negative property happened to turn positive for you. As a general rule though, that is probably not a good long term winning strategy. Cash flow positive is all but guaranteed to win however.
The only reason I disagree with you is some people buy for personal use and then rent it out after. If you are with a 25 year amortization and cash flow negative but paying down debt faster you are no worse off than someone at 30 year amortization and cash flow positive.

At 5 year renewal you can change to 30 and be positive.
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Apr 21, 2004
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rjg4235 wrote:
Jul 13th, 2017 1:04 pm
The fact this thread is being down voted just goes to show people don't want to see the truth or talk about it. They'd rather bury their head and say home ownership is doomed.

The funny part is a few years ago I had a slightly cash flow negative rental property and people here and on other forms called me a moron for keeping it. Since then it has appreciated $200k and is now generating $300/month positive cash flow while the mortgage is being paid down.

The crazy part about having a rental property is how fast time flies. You almost forget you have someone there if they etransfer the money. Next think you know mortgage is down $25k property is up in value and your account for the property has thousands of cash in it.
And you had an interest free loan (subsidized mortgage) all this time. ;)
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May 4, 2016
74 posts
28 upvotes
rjg4235 wrote:
Jul 13th, 2017 1:04 pm
The fact this thread is being down voted just goes to show people don't want to see the truth or talk about it. They'd rather bury their head and say home ownership is doomed.

The funny part is a few years ago I had a slightly cash flow negative rental property and people here and on other forms called me a moron for keeping it. Since then it has appreciated $200k and is now generating $300/month positive cash flow while the mortgage is being paid down.

The crazy part about having a rental property is how fast time flies. You almost forget you have someone there if they etransfer the money. Next think you know mortgage is down $25k property is up in value and your account for the property has thousands of cash in it.
Good job Rjg.

What people have to realize is any asset class thats easy to create an opinion around it, the more convoluted messages are perceived and discussed around it. Real Estate is simple enough for any layman to have an opinion but often the general knowledge from a non investor is poor to steer away any person. If you stick to the fundamentals and play a lonnnng game RE thats the reward in RE.

Side note, be sure to not take any inputs from anyone who is not taking any actions.
Deal Fanatic
May 1, 2012
7136 posts
3525 upvotes
Markham
pakwan11 wrote:
Jul 13th, 2017 3:05 pm
Good job Rjg.

What people have to realize is any asset class thats easy to create an opinion around it, the more convoluted messages are perceived and discussed around it. Real Estate is simple enough for any layman to have an opinion but often the general knowledge from a non investor is poor to steer away any person. If you stick to the fundamentals and play a lonnnng game RE thats the reward in RE.

Side note, be sure to not take any inputs from anyone who is not taking any actions.
I can name a couple RFDers here who were crying about RE for years... then stopped... why? Because I saw them asking for mortgage rates in the mortgage thread.

The worst part is, that one of those guys is still out here trying to convince others not to buy. Funny really.
Last edited by Anikiri on Jul 13th, 2017 3:09 pm, edited 1 time in total.
Deal Addict
Feb 22, 2011
3690 posts
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Toronto
pakwan11 wrote:
Jul 13th, 2017 3:05 pm
Side note, be sure to not take any inputs from anyone who is not taking any actions.
I received similar advice when I was younger, I can't recall from where though. It was along the lines of don't take advice from anyone you don't want to end up like. From that day on I stopped listening to failures who were jaded about the economy and jobs. I associated more with successful professionals and it's amazing how it changes your perception on the world.
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May 1, 2012
7136 posts
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Markham
rjg4235 wrote:
Jul 13th, 2017 3:09 pm
I received similar advice when I was younger, I can't recall from where though. It was along the lines of don't take advice from anyone you don't want to end up like. From that day on I stopped listening to failures who were jaded about the economy and jobs. I associated more with successful professionals and it's amazing how it changes your perception on the world.
That Motoss dude has been pumping everyone to sell their homes or calling for a crash. I've asked this dude multiple times to sell his own house and set an example. Well, he won't do it. Gee...
Penalty Box
Dec 27, 2013
6822 posts
2638 upvotes
Toronto
Anikiri wrote:
Jul 13th, 2017 3:10 pm
That Motoss dude has been pumping everyone to sell their homes or calling for a crash. I've asked this dude multiple times to sell his own house and set an example. Well, he won't do it. Gee...
Exactly. Easy to preach BS that's why.
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Mar 31, 2008
9837 posts
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Toronto
rjg4235 wrote:
Jul 13th, 2017 1:04 pm
The fact this thread is being down voted just goes to show people don't want to see the truth or talk about it. They'd rather bury their head and say home ownership is doomed.

The funny part is a few years ago I had a slightly cash flow negative rental property and people here and on other forms called me a moron for keeping it. Since then it has appreciated $200k and is now generating $300/month positive cash flow while the mortgage is being paid down.

The crazy part about having a rental property is how fast time flies. You almost forget you have someone there if they etransfer the money. Next think you know mortgage is down $25k property is up in value and your account for the property has thousands of cash in it.
That's the key.. is time. Long-term. Earlier the better. Even if it's not fully cash flow positive, as long as rent > property taxes + mortgage interest + basic maintenance expense + utilities. And as long as the portion of the rent still covers the portion of the principle. And over time, the mortgage interest portion goes down while rental rate incrementally increases to hops up after a changeover in tenants. And fundamentals of this city with all the single living, urban loving millennials has shown that Rents will keep going up and up. And the rent control has caused the unintended consequence of higher general starting rents due to limited flexibility while the velocity of supply turnover has gone down which has benefited someone who has locked in a earlier purchase price with now a higher portion of principle being paid down

Those that just wait and wait and expect some kind of instant gratification/instant positive cash flow all throughout have often missed out.
Deal Fanatic
Feb 29, 2008
5048 posts
997 upvotes
All these articles. Not what I'm seeing on the ground though. Tenants I'm meeting don't seem that pressed. Place has been available for 3 weeks now, excellent location (block away from the subway). Wishy washy people.
Sr. Member
Jan 17, 2006
997 posts
733 upvotes
Toronto
JayLove06 wrote:
Dec 1st, 2017 8:52 am
All these articles. Not what I'm seeing on the ground though. Tenants I'm meeting don't seem that pressed. Place has been available for 3 weeks now, excellent location (block away from the subway). Wishy washy people.
Can you share what location it is, downtown or west / east / north of Toronto?
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Feb 29, 2008
5048 posts
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ilim wrote:
Dec 1st, 2017 10:01 am
Can you share what location it is, downtown or west / east / north of Toronto?
Downtown Yonge/College

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