Real Estate

Ottawa Real Estate market discussion

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Member
Jun 15, 2009
361 posts
75 upvotes
Nepean
For rental, you get it back after 3-6 months of tenant moving in.
ilusa wrote: Dont you need to pay tax on a new build aswell?
Deal Fanatic
Jul 4, 2004
5708 posts
1769 upvotes
Ottawa
Superbobby wrote: Maybe not in the present market.

In fall 2017, I started to look at resale houses around 400K. All the ones I could find around Barrhaven were old and needed a lot of love! I calculated I had to add at least 25K to replace some windows, shingles, garage door etc..)  and a bit more for floors, Kitchen cabinet and counter, paint ...etc....

Mattamy and Minto were offering new detached houses starting from 400K. After a few "necessary" upgrades, it ends up around 415-425K for a turnkey house. There are still some disadvantages like:
  • Takes at least a year to get delivered
  • Small land
  • Mutliple apointments...could be stressful for some but some people like me love it.

But if you can deal with these...It seems a better choice at the end
I would also add that with a new home you also may have to deal with build quality issues (pretty much everyone I know (myself included) had some quality problems that had to be dealt with the builder which can be a total pain), you might have to move in while construction in ongoing (e.g. neighbors is not built yet) and you don't benefits from add-ons that might be in a resale (fence, rain gutters, window coverings, automatic garage door opener(s), etc). A buyer that wants a pool might do much better buying a resale as they are one of those things that you often only get a fraction (if anything) back on resale (e.g. a pool and landscaping can easily cost $75k but you'd probably be lucky to get $25k back on closing and I think in many case, will get almost nothing for it).
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Jul 4, 2005
6479 posts
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Ottawa
Any investors out there looking at pre construction towns/singles or already in the market?
Deal Addict
Jan 15, 2017
3520 posts
2873 upvotes
Superbobby wrote: Maybe not in the present market.

In fall 2017, I started to look at resale houses around 400K. All the ones I could find around Barrhaven were old and needed a lot of love! I calculated I had to add at least 25K to replace some windows, shingles, garage door etc..)  and a bit more for floors, Kitchen cabinet and counter, paint ...etc....

Mattamy and Minto were offering new detached houses starting from 400K. After a few "necessary" upgrades, it ends up around 415-425K for a turnkey house. There are still some disadvantages like:
  • Takes at least a year to get delivered
  • Small land
  • Mutliple apointments...could be stressful for some but some people like me love it.

But if you can deal with these...It seems a better choice at the end
Yes, you can still get a new build at a price close to the average price in the resale market, just depends on the builder and the location.

My point was that if you bought the average detached new build at $587 and then decided to sell it, you are selling it in the resale market with an average price of $432. Even though when you bought the new build at $587 it was an average price for a new build, when you list it in the resale market it will not be an average price in that market. So when new, it was average. When reselling, it is above average.
Deal Fanatic
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Dec 27, 2009
7074 posts
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Victoria, BC
Superbobby wrote: Maybe not in the present market.

In fall 2017, I started to look at resale houses around 400K. All the ones I could find around Barrhaven were old and needed a lot of love! I calculated I had to add at least 25K to replace some windows, shingles, garage door etc..)  and a bit more for floors, Kitchen cabinet and counter, paint ...etc....

Mattamy and Minto were offering new detached houses starting from 400K. After a few "necessary" upgrades, it ends up around 415-425K for a turnkey house. There are still some disadvantages like:
  • Takes at least a year to get delivered
  • Small land
  • Mutliple apointments...could be stressful for some but some people like me love it.

But if you can deal with these...It seems a better choice at the end
Not on your life would I pay the price to live on a postage stamp lot a few feet from my neighbours. I don't even know why they bother detaching some of these new builds. The space between them is so small you could barely fit through there. Must be a major league pain if some work actually needs doing to the side.
Deal Addict
Nov 13, 2013
2342 posts
1139 upvotes
Ottawa
Chickinvic wrote: Not on your life would I pay the price to live on a postage stamp lot a few feet from my neighbours. I don't even know why they bother detaching some of these new builds. The space between them is so small you could barely fit through there. Must be a major league pain if some work actually needs doing to the side.
They do it because then people say oh I can get a new single family house for only $425k. Yes it is basically a townhouse but people do like to have their own walls. They do meet a need for that product and most people don't use their backyards much anyway. Apples to Oranges comparison to say you are better off buying new.
[OP]
Deal Addict
Nov 26, 2004
2613 posts
762 upvotes
michelb wrote: I would also add that with a new home you also may have to deal with build quality issues (pretty much everyone I know (myself included) had some quality problems that had to be dealt with the builder which can be a total pain), you might have to move in while construction in ongoing (e.g. neighbors is not built yet) and you don't benefits from add-ons that might be in a resale (fence, rain gutters, window coverings, automatic garage door opener(s), etc). A buyer that wants a pool might do much better buying a resale as they are one of those things that you often only get a fraction (if anything) back on resale (e.g. a pool and landscaping can easily cost $75k but you'd probably be lucky to get $25k back on closing and I think in many case, will get almost nothing for it).
I'm currently going through the process of dealing with imperfection of a new built. Fortunately, the reality is most of the issues are very minor in nature, they are more or less drywall and paint, a chip on the floor as well as the wrong knobs for a vanity. I would say I could have dealt or live with 95% of the items on the 30 days list. However, because it was covered under warranty, I decide not to lift my fingers and left these "build quality issues" to the builders to fix. A plus for having warranty on a new built is during the cold weather, I noticed there was some frozen condensation between the panes of a window. Turns out that there was a crack hidden in the corner behind the weather stripping where 95% of the people would have missed the crack if they were not specifically looking for it.

All to say if I were buying a resale, I would have either live with the imperfection, fix it myself and pay out of pockets to replace the broken windows. Whereas with a new built, yes, coordinating with the warranty office can be a bit of a pain, but at least there is a warranty to fall back on and you are not spending time or paying out of pocket again to bring the home to "perfection".
[OP]
Deal Addict
Nov 26, 2004
2613 posts
762 upvotes
jeeva86 wrote: Any investors out there looking at pre construction towns/singles or already in the market?
Given how builders are setting their price right now, not saying prices will not continue to go up, but the buyers are bearing the risks when they closes in 12 - 24 months.

It is more work, but if I am trying to make some money in the real estate market right now, I would be looking at "fix and flip" as you still have time to unload if there is a change in government this fall.
Member
Jul 25, 2008
400 posts
274 upvotes
ottawa
William W wrote: Given how builders are setting their price right now, not saying prices will not continue to go up, but the buyers are bearing the risks when they closes in 12 - 24 months.

It is more work, but if I am trying to make some money in the real estate market right now, I would be looking at "fix and flip" as you still have time to unload if there is a change in government this fall.
Yeah, there's definitely risk in new construction in this environment, and I'd avoid it if looking to flip in the short term. This advice is obviously bad for developers, who are having trouble qualifying first time buyers as well. Some projects probably get delayed or cancelled until the market normalizes. That's a downward pressure on supply and therefore an upward pressure on price.
Sr. Member
Aug 6, 2011
590 posts
261 upvotes
Anyone knows if developers are running full steam now? And if they've received more demands than have resources to build new houses? So houses are not built fast enough to satisfy demands that are growing because of the tight supply in the resale market?
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Dec 27, 2009
7074 posts
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Victoria, BC
fogetmylogin wrote: most people don't use their backyards much anyway.
Well, not if they don't have one. I use mine all the time.
Member
Jun 15, 2009
361 posts
75 upvotes
Nepean
Unless you do fix and flip or buy a home built before 2010, just because of the modest price difference, I prefer new home over resell. I find resell prices are very much in line with new home builds. And does not matter how the market unfolds, as long rental market stays healthy, I don't see an issue in buying today or in the long run. Though, I am having hard time finding new homes which will be break even forget about cash flow...
jeeva86 wrote: Any investors out there looking at pre construction towns/singles or already in the market?
Member
Jun 15, 2009
361 posts
75 upvotes
Nepean
I guess they are running full steam, but there is plenty of supply offered by the new home builder especially Mattamy with 3 location in Kanata. Some of the builders I visited in last couple weeks are not budging on the price and not willing to negotiate and have always seen 1/2 people in process of signing the agreement.
cyberfreak123 wrote: Anyone knows if developers are running full steam now? And if they've received more demands than have resources to build new houses? So houses are not built fast enough to satisfy demands that are growing because of the tight supply in the resale market?
Member
Jun 15, 2009
361 posts
75 upvotes
Nepean
Does anyone have any experience in owning rental units in neighbouring cities surrounding Ottawa like Russel, North Gower, Greely, Cornwall, Prescott etc.

Do you suggest Multiplex or single unit?
How is the rental market like how easy is to rent out and rent amount, churn etc?

Any pointers will be appreciated
[OP]
Deal Addict
Nov 26, 2004
2613 posts
762 upvotes
ghasita wrote: I guess they are running full steam, but there is plenty of supply offered by the new home builder especially Mattamy with 3 location in Kanata. Some of the builders I visited in last couple weeks are not budging on the price and not willing to negotiate and have always seen 1/2 people in process of signing the agreement.
With Mattamy, Abbottsville Crossing is more or less sold out, I believe they have less than 7 lots available. And this phase of Fairwind is pretty small, so I think it will probably sell out by summer if not earlier.

I'm curious to see how they price their development in Richmond. I think Caivan was only able to raise their price by $5k for their cheapest single family home since they start selling Fox Run. Which is not a whole lot when you compare the increase of other development in Kanata or Barrhaven in a similar timeline. That to me sounds like they are not selling well. But I'm not surprise because when compared to similar square footage homes, the difference between Fox Run and Blackstone South is minimal. Furthermore, I don't think Blackstone South is selling too well given the number of "Quick Delivery/Discount" homes they have listed on the website.

All to say, in order for Mattamy to do well in Richmond, they will have to priced their 3 stories towns in the low to mid $200ks and their 2 stories towns in the high $200ks to low $300ks and singles has to start at low to mid $300k in order to gain any traction. OTOH, they probably don't want to priced it too low where they might cannibalize sales at their Blackstone South development.
Last edited by William W on Feb 12th, 2019 11:03 am, edited 1 time in total.

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