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  • Oct 22nd, 2020 9:02 am
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Deal Addict
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Dec 13, 2016
3576 posts
3061 upvotes

Condo amateurs

Honestly I get a laff from people's advice here buying expensive property investments.

Back in 2010 I was so close to buying a condo near Flemington Park for 79,000-89,000 (10 Sunny Glenway) cash. However reading rfd at the time it seemed like everyone was talking about area being worse than Jane/Finch. So I got scared, but the fact is that if I listened to my own advice I would have quadrupled my money in 10 years. Check house sigma and see for yourself although their data only goes back to 2012. Instead I bought a waterfront condo that barely moved 70% in 10 years.

It really pays to be a slum landlord. Even Jane/Finch saw bigger appreciation than downtown condos. I am wondering why people on RFD don't invest more in these kind of properties. It's always some fancy building that is way over the top cash flow negative. Really dumb. It just seems like bragging rights rather than good math.

Buy low sell high.
Last edited by BiegeToyota on Oct 21st, 2020 11:48 pm, edited 1 time in total.
6 replies
Deal Addict
User avatar
Nov 5, 2018
1622 posts
2491 upvotes
Toronto
I can understand this.

From what I have seen, I’ve noticed that the city has changed and there is a baseline of how much a condo can sell for. In the precon market, $1,000 is pretty much standard. As for resale, sure there are some pockets in the city that are cheaper, but when I see a very low p/sqf, it is usually because it is a huge unit with very high fees.

City has become uninvestable. And only way it could become better is if we see price drops. Despite the huge inventory, I am becoming more convinced that it probably doesn’t happen.

But at least we have low rates!!!
I do not need approval, I do not need friends. I do what I want.
Deal Guru
Feb 29, 2008
12594 posts
7827 upvotes
Yep. Love investing in developing areas with excellent transit and good upside.
Jr. Member
Dec 22, 2004
189 posts
147 upvotes
Toronto
Buying in waterfront gave you piece of mind and let you sleep at night. During that 10 years, you knew your money was safe and relatively liquid outside of a pandemic. It’s like owning blue chip stocks. Sure you can earn more buying pink sheets, but do you have the stomach for it.
Sr. Member
Dec 9, 2013
507 posts
353 upvotes
Toronto
Why are you listening to people on the internet for their opinions when it comes to investments? And do you think anyone can predict the future with their crystal ball?

In reality, you're an amateur for doing any of the above.
Last edited by miscbrah1 on Oct 22nd, 2020 1:22 pm, edited 2 times in total.
Deal Addict
Dec 4, 2016
1856 posts
882 upvotes
BiegeToyota wrote: Honestly I get a laff from people's advice here buying expensive property investments.

Back in 2010 I was so close to buying a condo near Flemington Park for 79,000-89,000 (10 Sunny Glenway) cash. However reading rfd at the time it seemed like everyone was talking about area being worse than Jane/Finch. So I got scared, but the fact is that if I listened to my own advice I would have quadrupled my money in 10 years. Check house sigma and see for yourself although their data only goes back to 2012. Instead I bought a waterfront condo that barely moved 70% in 10 years.

It really pays to be a slum landlord. Even Jane/Finch saw bigger appreciation than downtown condos. I am wondering why people on RFD don't invest more in these kind of properties. It's always some fancy building that is way over the top cash flow negative. Really dumb. It just seems like bragging rights rather than good math.

Buy low sell high.
I think this is more like the value/growth debate of stocks. For Ottawa, cheaper properties, especially condos, have lagged behind freeholds significantly for the past 10 years. I would argue that both Flemington Park condos and downtown waterfront condos have done well, providing serious returns for investors willing to use leverage. Downtown condos might also have a higher quality pool of tenants, making the jobs of being a landlord for the past 10 years a lot easier than the "up and coming" areas.

I'm generally a bull on productive assets, whether tangible or intangible. Prime real estate or tech companies with proven track record to execute, it's all productive assets to me. My S&P 500 index fund has done very well for the past decade, and I'm not going to beat myself up for not concentrating on QQQ or FAANG. My faith in capitalism has paid off, and that's enough.

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