Real Estate

Ottawa Real Estate market discussion

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Deal Addict
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Jan 1, 2007
2478 posts
57 upvotes
Ottawa
leoben wrote: 500k? o_o

currently paying ~1800$ for mortgage, property tax, insurance and maintenance of a 180k mortgage.


Then you signed a bad deal...I was incorrect on saying $1800 on 500k...my mortgage is 321k and that what I pay all in prop taxes insurance etc...I pay considerably more in prop taxes than most areas in the city at $5500 a year....
"Sometimes I dig the dirty yet sweet oriental pong of this frag, but I wonder if it really makes sense to smell like I've hidden spice bags in all of my pockets?" ~basenotes.net
[OP]
Deal Addict
Nov 26, 2004
2617 posts
777 upvotes
http://www.theglobeandmail.com/news/pol ... le2077658/

Yes, the layoff is small on this one, 24 Commerce Officer jobs. But what really draw my attention is this:

[QUOTE]cuts stem from restraint plans launched more than a year ago – not the government cuts promised in the 2011 budget.
[/QUOTE]

[QUOTE]In addition, the 2011 budget launched a more aggressive “strategic and operating review” in which Treasury Board President Tony Clement must find annual savings of $4-billion in time for the 2012 budget.

[/QUOTE]

From a big picture perspective, this is only round one, and the bigger departments like National Defence, HRSDC, Heath Canada hasn't announce where they will cut yet ..... And immediately after round #1, departments are suppose to find an additional $4 billion of saving by March 2012, so the number of job cuts from round 2 is not going to be announce until 2012 or 2013. All these news can't be good for the economy in Ottawa, right?

And if a soverign default occures in Europe, can debt ridden governments around the world afford another round of QE to keep interest rate low?
Member
Nov 8, 2007
457 posts
53 upvotes
Ottawa
I am looking for a house in Ottawa and there is a lot of garbage on the market right now. Only house I like has to have a stupid pool.
Jr. Member
Aug 11, 2004
167 posts
12 upvotes
Edmonton/Fort Mcmurr…
Diamondog wrote: My house is up 175k in 18 months...bought at 400k can sell all day long at 575k

Sounds sustainable.

You should buy 5 more, because the value will only go up. Forever.
Deal Addict
Mar 27, 2011
1281 posts
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Nowhere
Babbsy wrote: I am looking for a house in Ottawa and there is a lot of garbage on the market right now. Only house I like has to have a stupid pool.
That probably means your budget is limited.

Whereabouts are you looking?
Deal Addict
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Jan 1, 2007
2478 posts
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Ottawa
AMDCanuck wrote: Sounds sustainable.

You should buy 5 more, because the value will only go up. Forever.
My house/neighbourhood will peak at about 750 - 800k...I have sold 3 investment properties in this area, made very nice money...my focus has moved on to a new business....would look at more investment properties in another couple years...
"Sometimes I dig the dirty yet sweet oriental pong of this frag, but I wonder if it really makes sense to smell like I've hidden spice bags in all of my pockets?" ~basenotes.net
[OP]
Deal Addict
Nov 26, 2004
2617 posts
777 upvotes
Diamondog wrote: My house/neighbourhood will peak at about 750 - 800k...I have sold 3 investment properties in this area, made very nice money...my focus has moved on to a new business....would look at more investment properties in another couple years...

Interesting thoughts. $750k-800k in a Barrhaven subdivision. I suppose the demand has to come from the trade up crowd who already lives in the area, as I can't see the economic fundamentals in this city supporting these cookie cutter type homes in the burb at the price suggested, especially during the current economic climate. Right now, anything over $600k takes some effort to move as the Ottawa market is driven by Civil Servants.

Simply, a married couple of Civil Servants with a combined income of let's say $160k, can not support the usual mortgage associated at this price range especially in the next 3-5 years, as there will be little opportunities for a pay raise or promotion.

Besides, I guess I'm vain, but for that type of money, I will definitely look into neighbourhoods with a little bit more of a snob appeal like an entry level Rockcliff home or neighbourhoods that are one step down from Rockcliff but still your traditional well off area like Rothwell Height, Westboro, Glebe, McKellar Height, Alta Vista/Faircrest Height, New Edinburgh, etc.
Deal Guru
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Jun 28, 2003
10132 posts
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Ottawa
Barrhaven resident here. A few houses on my street have been for sale for a few months and the signs are still up. They need to keep prices in check with reality...it does not make any sense to buy a town for $350, no matter how nice or pretty it is when you can build a new single for just a bit slightly more (with Mattamy or comparable builders).

We have looked at homes in Stonebridge. Prices have gone up compared to last year but lots are still available...Monarch is giving out $10K design centre bonus for typical singles and $25K for golf course lots. We will be on vacation shortly so if we do pull the trigger, it will be after we come back.

Flaherty has come out and said the interest rates have no way to go but up. My mortgage guy just let me know 3-year fixed rate can be had for 2.99%...damn if you do and damn if you don't...
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Deal Addict
Feb 27, 2008
1359 posts
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Barrhaven here too.

Almost came close to pulling the trigger on a Minto home going for $540k starting when they decided to raise it up 10k overnight due to bid wars (on a home closing in 2 years, go figure).

Now I'm just pissed since I actually have 20% that I can put down when I'm being bid against by people who can barely afford 5% and those whom I know will default on in in a few years when **** hit the market.

I've decided to wait it out and buy it from them later for way cheaper.

P.S: Bought my end unit townhome for $260k back in 2008. It's valued at $310 now.
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Feb 27, 2008
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William W wrote: Simply, a married couple of Civil Servants with a combined income of let's say $160k, can not support the usual mortgage associated at this price range especially in the next 3-5 years, as there will be little opportunities for a pay raise or promotion..
I don't think anyone in their right mind would buy a 500k home as a first home without atleast coming up with a 20% downpayment.. that would bring down the mortgage to a managable $400k

I don't see how on a 160k family income you can't afford a $400k mortgage.

Assuming 35 years at average 5% rate, that's:

$2000/month mortgage
$450/m property tax
$70/m insurance
+ another 500 for other essentials like gas, electricity and water.

Grand total of $3k-$3.5k/Month for living in that home..

Assuming a family average of $160k clears $8.5k/month (60k taxes, 100 cleared).. that leaves 5k/month to live on.. Who can't live off that with home and utilities already paid off?
Banned
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May 12, 2004
9759 posts
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Ottawa
William W wrote: Interesting thoughts. $750k-800k in a Barrhaven subdivision. I suppose the demand has to come from the trade up crowd who already lives in the area, as I can't see the economic fundamentals in this city supporting these cookie cutter type homes in the burb at the price suggested, especially during the current economic climate. Right now, anything over $600k takes some effort to move as the Ottawa market is driven by Civil Servants.

In the subdivisions where I'm building custom homes (a burb) sales/resales (500-900K) for Jan1 - May31 2010 -> 52 sales Jan1 - May31 2011 -> 48 sales with an increase of just under 5% in average price year over year. At it's peak in 2008 that number was still under 60.

It has slowed down but I wouldn't really call an 8% drop year over year 'grinding to a halt'. Also interresting to note that number of houses on the market during that time-frame has also dropped year over year.

It's a small sample, but goes to show that a beautiful mid/upper-end house in a beautiful mid-upper end subdivision will always have a buyer.
Deal Fanatic
Apr 23, 2009
5153 posts
682 upvotes
South of Ottawa
I'm just outside the city limits, but real estate is still going strong here. My house is up $100K in 3 years, the biggest spike coming in the last year. New homes are being built, and selling, very quickly. Re-sales are moving well too. My neighbour listed and sold with in 3 days for $1K over asking price. These are single family homes in the $300K+ range.
Deal Guru
Dec 31, 2005
13306 posts
735 upvotes
240sxer wrote: I don't think anyone in their right mind would buy a 500k home as a first home without atleast coming up with a 20% downpayment.. that would bring down the mortgage to a managable $400k

I don't see how on a 160k family income you can't afford a $400k mortgage.

Assuming 35 years at average 5% rate, that's:

$2000/month mortgage
$450/m property tax
$70/m insurance
+ another 500 for other essentials like gas, electricity and water.

Grand total of $3k-$3.5k/Month for living in that home..

Assuming a family average of $160k clears $8.5k/month (60k taxes, 100 cleared).. that leaves 5k/month to live on.. Who can't live off that with home and utilities already paid off?

It is easily doable...we did it on a 25 year mortgage....plus paid nearly 1500-2000 a month for daycare.
[OP]
Deal Addict
Nov 26, 2004
2617 posts
777 upvotes
240sxer wrote: I don't think anyone in their right mind would buy a 500k home as a first home without atleast coming up with a 20% downpayment.. that would bring down the mortgage to a managable $400k
I would agree $500k can support a $400k mortgage, that's why I said anything until $600k in the current market move briskly. What I was referring to was $160k support a $800k home or $640k worth of mortgage as the other poster thinks homes in Stonebridge will worth.
Cas77 wrote: It has slowed down but I wouldn't really call an 8% drop year over year 'grinding to a halt'. Also interresting to note that number of houses on the market during that time-frame has also dropped year over year.

It's a small sample, but goes to show that a beautiful mid/upper-end house in a beautiful mid-upper end subdivision will always have a buyer.

Agree, I would not call an 8% drop year over year "grinding to a halt" either. But going forward, what is going to happen? The next 5 years are not going to be fun being a civil servants, what we saw in the last 10 years are going to change drastically. There will no longer be a large influx of new hires for the government moving in to this city, there will be less opportunities for promotions, and there will be little increase in wages if not a wage freeze. And pension reform may results in increase saving/decrease spending by Civil Servants. And you add a possible interest rate hike into the mix, I just can't see how Ottawa real estate prices can sustain its current rate of growth.

Though, I can be very wrong here as I certainly do not hope for a crash in Ottawa home price as I'm also a homeowner in the area. But realistically, with so much uncertainties, IMHO, it is very difficult for history not to repeat itself of what happened during the last downsizing of the federal government in the mid 90s.
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Jan 1, 2007
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Ottawa
Why do you think it's civil servants living here? Granted I am sure there are lots but my nearest 3 neighbours are a dentist, an architect and a lawyer....I myself am a small business owner...and where is $160k coming from, many famillies here 1 provider alone makes that...
"Sometimes I dig the dirty yet sweet oriental pong of this frag, but I wonder if it really makes sense to smell like I've hidden spice bags in all of my pockets?" ~basenotes.net

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