Real Estate

Ottawa and Surrounding Area Real Estate market discussion

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Deal Guru
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Jun 28, 2003
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Ottawa
jk9088 wrote: ^ Ah ok, thanks for clarifying!

Yes this news is more exciting for me as a landlord with properties near the Barrhaven Costco (more potential tenants). Not sure these jobs will play a direct role in boosting housing prices (as you mentioned, these are mostly entry-level jobs) but nonetheless additional jobs in a community is always a good thing and will increase demand indirectly.

Out of curiosity, does anyone know if the east-end Amazon warehouse did much to boost housing in that area? I never followed that area, although perhaps it may be hard to compare as that is located in a rural area.
Here is the official story from the Citizen

https://ottawacitizen.com/news/local-ne ... 1b23e1c7b/

1K (net new) jobs is a significant boost for any region and some of them will make more than entry level wages (drivers, management, back-office staff etc). There will also be collateral impact from this development e.g. more restaurants in the immediate vicinity, potentially.

You are right about the other Amazon fulfillment centre located in the rural area, Carlsbad Springs to be precise. I did not follow real estate development in said area but I don't recall house developers and builders rushing there to establish communities, for a number of reasons. This one, like I mentioned to Blue Solstice, is different and I see it as positive news for the 'Haven.
Sr. Member
Aug 22, 2016
626 posts
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jk9088 wrote: Agree about the dated finishes, but it seems crazy to me that there is such a huge difference in demand these days between a dated-looking home vs. one with nicer finishes, even though otherwise the houses are identical. If 6 Hemlo just put in some basic work to update the house, wonder if it would sell much faster. I.e. paint, upgrade kitchen/bathroom counters to quartz with new sink/faucet, maybe repaint the kitchen cabinets, new stainless steel appliances, and upgrade the lighting (perhaps put in some potlights in basement + kitchen). Probably would only cost them about $15k and would make the house much more modern looking, perhaps even better than 8 Hemlo. Potentially a huge return on what they'd put in for upgrades...A lesson I guess for anyone else wanting to sell right now.
Some years ago I tried to sell my house with no updates and it stayed on market for ever. I spent 15K to updates kitchen and washrooms voila sold 85K about the original asking price. renovations took about a month that was the only pain but that extra 70K in my pocket eased my pain.
For a buyer a house that does not show well is a hard buy as they cant show to their friends and relatives :)
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May 23, 2017
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arbytor wrote: Some years ago I tried to sell my house with no updates and it stayed on market for ever. I spent 15K to updates kitchen and washrooms voila sold 85K about the original asking price. renovations took about a month that was the only pain but that extra 70K in my pocket eased my pain.
For a buyer a house that does not show well is a hard buy as they cant show to their friends and relatives :)
That's crazy, as a buyer I would definitely rather pay $85k less and do my own upgrades...but, I guess buying a house is quite an emotional decision for many people and the finishes really matter a lot.
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Nov 26, 2004
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sky417 wrote: I am trying to find the original plan of Richardson Ridge but I can't find it at this site. Does anyone know where I can find it?
Try a search under "Terry Fox". You should be able to find what you're looking for.
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Nov 26, 2004
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jk9088 wrote: That's crazy, as a buyer I would definitely rather pay $85k less and do my own upgrades...but, I guess buying a house is quite an emotional decision for many people and the finishes really matter a lot.
A factor to consider is not everyone has the cash to pay for the upgrades nor the energy to manage a contractor while living in a construction zone for 2-3 months. Not everyone is a RFDer. Smiling Face With Open Mouth And Smiling Eyes
Member
Jan 19, 2017
431 posts
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Looking for advice re: good neighborhoods in Ottawa. We're looking for a place to rent and want a neighborhood safe and family-oriented neighborhood (we have a baby and my wife likes to go running in the evenings). We want something not too far, so Kanata and Barrhaven (and other similar but far regions are out). We're in the Glebe now but haven't been successful in finding something big enough that fits our needs. We've seen a couple of places in Central Park and in Centrepointe which we liked. I'm looking for some feedback / advice about Alta Vista. I know it covers a very large area (https://documents.ottawa.ca/sites/docum ... 012486.pdf) but I'm looking for specific parts that are nice and safe. Ideas on other nice neighborhoods are also very much appreciated. Thanks!
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Nov 26, 2004
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darXider wrote: Looking for advice re: good neighborhoods in Ottawa. We're looking for a place to rent and want a neighborhood safe and family-oriented neighborhood (we have a baby and my wife likes to go running in the evenings). We want something not too far, so Kanata and Barrhaven (and other similar but far regions are out). We're in the Glebe now but haven't been successful in finding something big enough that fits our needs. We've seen a couple of places in Central Park and in Centrepointe which we liked. I'm looking for some feedback / advice about Alta Vista. I know it covers a very large area (https://documents.ottawa.ca/sites/docum ... 012486.pdf) but I'm looking for specific parts that are nice and safe. Ideas on other nice neighborhoods are also very much appreciated. Thanks!
For Alta Vista, you will want to be in the pocket that is South of Smyth, North of Kilborn, east of Riverside and West of Lynda Lane/Delmar. Within that pocket of Alta Vista, the closer you're to the General Hospital, the nicer it gets.
Deal Guru
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Jun 28, 2003
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darXider wrote: Looking for advice re: good neighborhoods in Ottawa. We're looking for a place to rent and want a neighborhood safe and family-oriented neighborhood (we have a baby and my wife likes to go running in the evenings). We want something not too far, so Kanata and Barrhaven (and other similar but far regions are out). We're in the Glebe now but haven't been successful in finding something big enough that fits our needs. We've seen a couple of places in Central Park and in Centrepointe which we liked. I'm looking for some feedback / advice about Alta Vista. I know it covers a very large area (https://documents.ottawa.ca/sites/docum ... 012486.pdf) but I'm looking for specific parts that are nice and safe. Ideas on other nice neighborhoods are also very much appreciated. Thanks!
It's funny when you mention Kanata and Barrhaven as too far. I posted some items for sale on Kijiji and when potential buyers learned I live close to downtown (and they are in Kanata/Barrhaven/Orleans), they told me it's too far for them :) I guess it is all relative

All joking aside, Alta Vista rent can be a little bit more than other areas of town. If you are on a budget, I can recommend Parkway Park, that is the area across from Centrepointe, on the other side of Baseline. Lots of older bungalows and big lots (if you need the space) as well as low-rise buildings managed by Minto. We rented here for a couple of years, while my wife attended Algonquin College, and we really liked the area. Lots of trails around for runners/cyclists and super accessible to everything, although that may not necessarily the deal breaker anymore with more people working from home nowadays.
Sr. Member
Mar 20, 2017
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arbytor wrote: Some years ago I tried to sell my house with no updates and it stayed on market for ever. I spent 15K to updates kitchen and washrooms voila sold 85K about the original asking price. renovations took about a month that was the only pain but that extra 70K in my pocket eased my pain.
For a buyer a house that does not show well is a hard buy as they cant show to their friends and relatives :)
Besides the move in ready aspect that is appealing. I personally believe that the main reason is that most people don’t have the $15 or $85k cash for Renos but can qualify for the additional amount on their mortgage and pay the extra $100-400 monthly
Member
Oct 21, 2007
478 posts
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jk9088 wrote: That's crazy, as a buyer I would definitely rather pay $85k less and do my own upgrades...but, I guess buying a house is quite an emotional decision for many people and the finishes really matter a lot.
I'm in this boat - in fact, more often, I find I don't like modern renovations (especially those bath tubs in the middle of rooms without backsplashes), and much prefer places that are modestly done or a bit dated that can be customized. That said, for most people, I know buying a property is largely an emotional decision that's made from photos and first impressions and a place that doesn't appear move in ready can be very hard to sell in a normal market (unlike the current market where anything will sell..over asking).
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Sep 2, 2009
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E39M62 wrote: Besides the move in ready aspect that is appealing. I personally believe that the main reason is that most people don’t have the $15 or $85k cash for Renos but can qualify for the additional amount on their mortgage and pay the extra $100-400 monthly
That is definitely a fair perspective!

30k less for a comparable house but with only one bathroom can be great if the space is available to add one. If you can DYI most of it, can mean a decent savings and putting things where you want them.
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May 23, 2017
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Jay31 wrote: I'm in this boat - in fact, more often, I find I don't like modern renovations (especially those bath tubs in the middle of rooms without backsplashes), and much prefer places that are modestly done or a bit dated that can be customized. That said, for most people, I know buying a property is largely an emotional decision that's made from photos and first impressions and a place that doesn't appear move in ready can be very hard to sell in a normal market (unlike the current market where anything will sell..over asking).
I agree before COVID-19 everything was selling, however now there seems to be quite a few houses that are sitting. Could be a good opportunity right now to pick up a dated house for under asking. Tbh I'm a bit tempted myself (even though I had planned to scale back a bit in real estate)...

And I also agree some renos don't really appeal to me (others I do find quite classy and nicely done), so the freedom to pick my own finishes that I like would be a bonus for sure.
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Jan 19, 2017
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William W wrote: For Alta Vista, you will want to be in the pocket that is South of Smyth, North of Kilborn, east of Riverside and West of Lynda Lane/Delmar. Within that pocket of Alta Vista, the closer you're to the General Hospital, the nicer it gets.
Thanks a lot. That's exactly what I wanted. So that'll exclude Elmvale and Urbandale, right?
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Nov 26, 2004
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darXider wrote: Thanks a lot. That's exactly what I wanted. So that'll exclude Elmvale and Urbandale, right?
Elmvale and Urbandale are solid middle class neighborhoods, they may be in the Alta Vista ward, but they are not really Alta Vista. They are more like Toyota whereas the pocket I described is more like a Lexus.

Take a drive or look on Google streetview, you can definitely tell the difference between homes at the two neighborhoods.
Deal Guru
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Jun 28, 2003
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Ottawa
jk9088 wrote: I agree before COVID-19 everything was selling, however now there seems to be quite a few houses that are sitting. Could be a good opportunity right now to pick up a dated house for under asking. Tbh I'm a bit tempted myself (even though I had planned to scale back a bit in real estate)...

And I also agree some renos don't really appeal to me (others I do find quite classy and nicely done), so the freedom to pick my own finishes that I like would be a bonus for sure.
Here is 1 in Riverside South that has been on the market for a while and is under $500K (asking)

https://www.realtor.ca/real-estate/2196 ... side-south

Like the one in Kanata discussed a few pages ago, I am not too crazy about the different colour schemes, the carpets upstairs and the dated look in the kitchen/bathrooms but it is in a solid location (with Riverside South picking up steam, as mentioned before) and is an end-unit with a finished basement and complete landscaping to boot.

I am guessing the typical rent for this part of town is very similar to Barrhaven e.g. $2,200/month for 3 bed-room town, utilities extra. That won't necessarily give you the cash flow you need, based on your rule of $500 for every $100K invested, assuming this goes under asking, although that is not too far off...
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Sep 2, 2009
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canabiz wrote: Here is 1 in Riverside South that has been on the market for a while and is under $500K (asking)

https://www.realtor.ca/real-estate/2196 ... side-south
Replace carpet with hardwood - good to go. (However, I do not actually know that area nor what things are worth there - just that the carpet to hardwood is the obvious change for owner-occupied)
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Jun 28, 2003
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cloak wrote: Replace carpet with hardwood - good to go. (However, I do not actually know that area nor what things are worth there - just that the carpet to hardwood is the obvious change for owner-occupied)
It just went conditional...I am guessing lower than asking with the typical condition of inspection and/or financing...
Sr. Member
May 6, 2012
863 posts
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KANATA
canabiz wrote: Here is 1 in Riverside South that has been on the market for a while and is under $500K (asking)

https://www.realtor.ca/real-estate/2196 ... side-south

Like the one in Kanata discussed a few pages ago, I am not too crazy about the different colour schemes, the carpets upstairs and the dated look in the kitchen/bathrooms but it is in a solid location (with Riverside South picking up steam, as mentioned before) and is an end-unit with a finished basement and complete landscaping to boot.

I am guessing the typical rent for this part of town is very similar to Barrhaven e.g. $2,200/month for 3 bed-room town, utilities extra. That won't necessarily give you the cash flow you need, based on your rule of $500 for every $100K invested, assuming this goes under asking, although that is not too far off...
I think this says main buying power in Ottawa is still for self to live in. So it is good sign
Jr. Member
Feb 4, 2017
137 posts
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jk9088 wrote: Great rule of thumb, although I would say with today's extremely low interest rates you can get away with lower. My personal rule of thumb is more like $500 per $100k (assuming no condo fees of course--those need to be subtracted from rent for cashflow purposes). All of my properties are currently higher than this, but it's the lowest I would consider.

I agree that arbytor's calculation's seem off, however they did mention that they look at interest portion of the mortgage only--implying they are OK with negative cashflow as long as equity is still being built from the mortgage being paid down. This would mean a much lower rent would be considered acceptable. (arbytor's numbers are still off in this scenario but it is closer.)

While I personally don't quite feel comfortable with this strategy, I do have to recognize that investors getting in today have a very hard time finding cashflow-positive properties, so some people will feel ok with a purchase as long as the rent covers expenses + mortgage interest (and not necessarily the mortgage principal). A riskier way to invest for sure but I believe this is the mindset of many Toronto investors...

Do you mind sharing your calculation in detail? I ran quick numbers on 500k property with rent 2500 per month , included expenses like 8% management,5% maintenance, Insurance, property tax etc.
Cash flow is negative -$800 each month.. Am i missing something here?
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Jul 7, 2005
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Are you guys considering Income Tax deduction of mortgage interest in your calculations?

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