Real Estate

Which area best for investors going forward

  • Last Updated:
  • Apr 14th, 2020 7:52 am
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[OP]
Member
Feb 13, 2018
495 posts
532 upvotes

Which area best for investors going forward

Condo, townhouse, detached?
Downtown still?
Ontario, Quebec or B.C.?

Rational discussion only please.

Realtors please do not PM me, I have couple agents already.
21 replies
Member
Jul 4, 2018
393 posts
317 upvotes
Condo and townhomes are preferred
With this pandemic, townhomes will have bull run after lockdown is over....
People with money who were living in condos sitting on sidelines whether to buy or not will have frustrated days of sitting in small room with kids at home and cooking and no moment of life outside... will definitely prefer to buy a townhome at the minimum
Deal Guru
Feb 29, 2008
14213 posts
10524 upvotes
Lavaris1 wrote: Condo and townhomes are preferred
With this pandemic, townhomes will have bull run after lockdown is over....
People with money who were living in condos sitting on sidelines whether to buy or not will have frustrated days of sitting in small room with kids at home and cooking and no moment of life outside... will definitely prefer to buy a townhome at the minimum
You really think townhouses will be more coveted? One thing is for sure. I can never buy a condo again as my primary residence. I thought in the past that I could do it. Nope. House or bust. Whether it’s a townhouse or a detached. My views on downtown living has also changed a bit. But suburbs are still less appealing when you consider transit. Especially with this virus. All these people huddled together on a train. Not appealing at all.
Deal Addict
Mar 2, 2017
1418 posts
2601 upvotes
Toronto
rfdchan wrote: Condo, townhouse, detached?
Downtown still?
Ontario, Quebec or B.C.?

Rational discussion only please.

Realtors please do not PM me, I have couple agents already.

Poorly worded questions will yield poor results OP.

How about you provide context since no investment decisions are the same.

How important is liquidity of this investment?
How long do you want to hold?
Can you cash flow a property that's not cash positive.
What assumed appreciation rate are you comfortable with?
What is your risk tolerance?
Are you a hands off investor or hands on, PM matters.
What does your current portfolio look like, do you need to consider diversification based on current assets?

The list goes on and on.

If you are looking for generic answers, before Covid, ROI for investment condos in relation to rent prices skewed towards Fairview Mall and Mid town where we saw the best rental prices to cost per sq. ft. to buy. Downtown's ROI is not attractive anymore in relation because prices have outpaced rents.
Realtor, Investor, CPA
[OP]
Member
Feb 13, 2018
495 posts
532 upvotes
JayLove06 wrote: You really think townhouses will be more coveted? One thing is for sure. I can never buy a condo again as my primary residence. I thought in the past that I could do it. Nope. House or bust. Whether it’s a townhouse or a detached. My views on downtown living has also changed a bit. But suburbs are still less appealing when you consider transit. Especially with this virus. All these people huddled together on a train. Not appealing at all.
Yes, transit would be scary for a while and suburbs you do not really have options. Good point.
[OP]
Member
Feb 13, 2018
495 posts
532 upvotes
RichmondCA wrote: Poorly worded questions will yield poor results OP.

How about you provide context since no investment decisions are the same.

How important is liquidity of this investment?
How long do you want to hold?
Can you cash flow a property that's not cash positive.
What assumed appreciation rate are you comfortable with?
What is your risk tolerance?
Are you a hands off investor or hands on, PM matters.
What does your current portfolio look like, do you need to consider diversification based on current assets?

The list goes on and on.

If you are looking for generic answers, before Covid, ROI for investment condos in relation to rent prices skewed towards Fairview Mall and Mid town where we saw the best rental prices to cost per sq. ft. to buy. Downtown's ROI is not attractive anymore in relation because prices have outpaced rents.
I am actually looking for a general level discussion. Getting too specific limits options. Please open your own thread if you have specific question to ask.
Deal Addict
Jul 3, 2007
3318 posts
3648 upvotes
Toronto
rfdchan wrote: Condo, townhouse, detached?
Downtown still?
Ontario, Quebec or B.C.?

Rational discussion only please.

Realtors please do not PM me, I have couple agents already.
you have a couple agents? do they both know that ? LMAO Face With Tears Of Joy

anyways, from what I hear Quebec is still a good value.... do I really need to tell you about Toronto and Vancouver prices?
Member
Jan 27, 2018
383 posts
328 upvotes
I would say DT condos, Scarborough TC condos then detached (including link detached) in suburbs like Markham, RH, Oakville & Mississauga...
Member
Jun 15, 2015
424 posts
457 upvotes
Thornhill, ON
Depends on (1) where you work, i.e. downtown, burb, outside GTA (2) where you currently reside, have your friends, etc and (3) single or married with kids.
Deal Guru
Feb 9, 2009
11012 posts
9499 upvotes
Detached in GTA will hold value long term as we arent making enough of them and old people arent moving out of them or their kids now live with them, hence less inventory.

Any property along transit over time will do well.

Toronto is great. Ottawa cause of all the govt workers will hold value over time.
Sr. Member
Oct 13, 2011
761 posts
491 upvotes
How much leverage are you using?

If it is an all cash purchase, given how the REIT were beat up, REIT is the way to go as it dropped the most during this pandemic.
Deal Addict
User avatar
Jul 8, 2010
1406 posts
1098 upvotes
Ontario
rfdchan wrote: Condo, townhouse, detached?
Downtown still?
Ontario, Quebec or B.C.?
Alberta? With oil down the well, prices already low and no tenant protection like in ON or QC, best way to go.
Sr. Member
User avatar
Feb 25, 2018
567 posts
212 upvotes
Anything in a bubble will crash. Buy rural or farm land.
Deal Addict
Nov 24, 2013
1384 posts
738 upvotes
Toronto
If you can get a good location at a lower price, that would be a good place to invest.
Deal Addict
Mar 22, 2010
3010 posts
888 upvotes
Sheppard West Station (formally Downsview area)
Deal Guru
Feb 9, 2009
11012 posts
9499 upvotes
DaveVentura wrote: Anything in a bubble will crash. Buy rural or farm land.
worst advice ever.
Sr. Member
Oct 21, 2016
900 posts
661 upvotes
Lavaris1 wrote: Condo and townhomes are preferred
With this pandemic, townhomes will have bull run after lockdown is over....
People with money who were living in condos sitting on sidelines whether to buy or not will have frustrated days of sitting in small room with kids at home and cooking and no moment of life outside... will definitely prefer to buy a townhome at the minimum
How much yard space do you get with a townhouse , most developments I see do not have much of a front or backyard. Even if they do it's not private.
Last edited by Shaun80 on Apr 13th, 2020 10:49 pm, edited 1 time in total.
Sr. Member
Oct 21, 2016
900 posts
661 upvotes
Rothesay wrote: How much leverage are you using?

If it is an all cash purchase, given how the REIT were beat up, REIT is the way to go as it dropped the most during this pandemic.
Problem is commercial or residential tenants can not pay REITs will be beat up which is the case now. Riocan stated 20 to 30 percent of their tenants had to defer rent payments . Same as if your tenant can not pay as a private landlord .
Sr. Member
Oct 13, 2011
761 posts
491 upvotes
Shaun80 wrote: Problem is commercial or residential tenants can not pay REITs will be beat up which is the case now. Riocan stated 20 to 30 percent of their tenants had to defer rent payments . Same as if your tenant can not pay as a private landlord .
Of course, if the private landlord is loaded and have a portfolio of 15-20 units spread out across the country what you're saying applies.

But most private landlord, may only have less than 5 units, and most of the time they are in the same part of the city. So let's say your mom and pop landlord, and they happen to only have ONE tenant and the tenant stop paying rent, they get 0 income. Whereas with REIT, yes, 20-30% tenant may have to defer rents. And let's say REIT have to proportionally cut dividends, you still get 70 to 80% of your original income versus you get 0% if you only have ONE non rent paying tenant.

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