Real Estate

Buying 2BR <$80K Investment Condo London, ON

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  • Sep 15th, 2016 3:56 pm
Deal Addict
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Jun 23, 2009
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YUL

Buying 2BR <$80K Investment Condo London, ON

I'd lived there briefly and just ran a MLS search for 2BR condos under $100K
There are a few properties, but I've narrowed it down to one near Fanshawe, but also in the nicer part of town. Can anyone LMK what you think?

This one is pretty much the cheapest in N. London, 2BR, looks clean, and like 1 km to fanshawe. Underpriced at $85K?
Edit: 80K!
https://www.realtor.ca/Residential/Sing ... rio-N5C2E6

Edit: Narrowed it down to just one.

I'm interested to hear from anyone who owns a place in London.
Last edited by CRAZYBUBBA on Sep 20th, 2016 7:04 am, edited 1 time in total.
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13 replies
Sr. Member
Jul 9, 2014
718 posts
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Toronto, ON
Also interested in, I have friend in London, I can rent it out to her for cheap in mean time, so she can takes care of the unit.
Deal Addict
Jan 9, 2011
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Toronto
Damn this price is so attractive coming from GTA. How much would something like this rent for?
Deal Addict
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Jun 23, 2009
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YUL
I saw comparables rented for $900+ util
So $600 rent after expenses.
I'm out of town until Oct, but i can't believe it either. It's like too easy.
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Deal Addict
Oct 29, 2010
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You have quite a few there around the 100k, so I doubt the one for 85k is that weird.
If it was 85k and everything else would be double the price I'd be worried.
Deal Guru
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Feb 2, 2014
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Toronto
CRAZYBUBBA wrote: I'd lived there briefly and just ran a MLS search for 2BR condos under $100K
There are a few properties, but I've narrowed it down to one near Fanshawe, but also in the nicer part of town. Can anyone LMK what you think?

This one is pretty much the cheapest in N. London, 2BR, looks clean, and like 1 km to fanshawe. Underpriced at $85K?
https://www.realtor.ca/Residential/Sing ... rio-N5C2E6

Edit: Narrowed it down to just one.

I'm interested to hear from anyone who owns a place in London.
How is the reserve fund?

I don't know much at all about the London market, but at that price, I would worry about the condo's financial position.
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Jr. Member
Oct 6, 2011
147 posts
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London
I've lived here all my life and I can tell you this is not the nicest area. Not terrible, but not good either. I wouldn't live off this part of Huron. It's more north east than north london and there is a significant difference. If you want north you are looking closer to sunningdale, Fanshawe pk road area.
Deal Expert
Oct 6, 2005
16872 posts
2557 upvotes
Also consider the quality of renters in some of these towns ... are you going to get the same high quality renter or are you targeting low-end problem crowd?

Living away from London, how will you handle problems with your property and/or deal with the tenant?
Deal Addict
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Jun 23, 2009
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YUL
Listing says repairs done 2012, reasonable condo fees, I'll get a status certificate as a condition of my offer.
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Deal Addict
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Jun 23, 2009
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YUL
Thanks!
I was looking there, especially close to the mall but they were all $200k+, and the only comparable was kipps lane, which has a bad rep. I figured this was within my range, but if you see something I've missed, send me a link :)
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Deal Fanatic
Jan 15, 2004
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Maintenance fee is $300 a month, plus you have to pay property tax, I don't think you will get a positive cash flow.
Deal Addict
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Jun 23, 2009
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I couldn't get the financing to pull the trigger, but property tax was like $80/month, so it shouldn't be hard. Some of the ones near western have much higher condo fees and cost triple
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Deal Addict
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Dec 8, 2010
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$900 gross rent
-10% vacancy
-management
- condo fee
- property tax
- landlord's insurance
- maintenance
- mortgage interest

is your true income;

- principal if you want the cashflow.

Condo fee just wrecks it. If you could get 1%/month (ie, $850 on $85k) it would work - but with the condo fee, no.
Member
Aug 1, 2006
207 posts
28 upvotes
Toronto
daverobev wrote: $900 gross rent
-10% vacancy
-management
- condo fee
- property tax
- landlord's insurance
- maintenance
- mortgage interest

is your true income;

- principal if you want the cashflow.

Condo fee just wrecks it. If you could get 1%/month (ie, $850 on $85k) it would work - but with the condo fee, no.
You forgot to add in "Income Tax" as part of the cash flow calculation. One needs to look at their marginal tax rate and factor that in to get a true cash flow analysis.

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