Ottawa and Surrounding Area Real Estate market discussion

I am putting a 4-plex on sale this week ! Watch out for it

ahato wrote: ↑ I am putting a 4-plex on sale this week ! Watch out for it

Why are you selling? If it is a great opportunity? Truly asking.

ahato wrote: ↑ I am putting a 4-plex on sale this week ! Watch out for it

Would love to get details on it..

bhushh009 wrote: ↑ Would love to get details on it..

It's a 4 plex in Vanier. 2 * 2 bed & 2 * 1 bed. Rental income is around $3300 which should be much higher if you live locally. Tenants pay heat & hydro . I pay for water. Property tax is around 4100. Listing for appraised price which is lil below mid 400's. Excellent opportunity however I've recently moved out South

cyberfreak123 wrote: ↑ This is the monthly stats that I'm mostly interested in.
The month of inventory for both houses (2.1) and condos (1.4) is still very low.
condos should sell very well.

Fall should be still a hot season, unless a big number of new listings flood the market.

https://www.hometeamottawa.com/stats/

At 1.4 MOI for condos, I would expect prices to start moving up and previously highly marginal properties (old condos/towns with huge fees) to start moving. At least in Kanata, such condos seem to be moving. Buildings that used to always have 20+ units for sale now have one or none for sale.

I guess the stress test is really having an effect on the market, as freehold towns are increasingly out of reach of first time buyers, forcing them into the condo market.

Any good condos launching in Ottawa soon which can be potentially good for investment (+ve ROI from rental) ?

BlueSolstice wrote: ↑ At 1.4 MOI for condos, I would expect prices to start moving up and previously highly marginal properties (old condos/towns with huge fees) to start moving. At least in Kanata, such condos seem to be moving. Buildings that used to always have 20+ units for sale now have one or none for sale.

I guess the stress test is really having an effect on the market, as freehold towns are increasingly out of reach of first time buyers, forcing them into the condo market.

What condos in Kanata are you referring to?

casanova2001 wrote: ↑ Any good condos launching in Ottawa soon which can be potentially good for investment (+ve ROI from rental) ?

sadly no, pretty much everything i've seen is -ive at current rental rates assuming 20% down.

new condos in ottawa are a speculative investment right now.

ahato wrote: ↑ It's a 4 plex in Vanier. 2 * 2 bed & 2 * 1 bed. Rental income is around $3300 which should be much higher if you live locally. Tenants pay heat & hydro . I pay for water. Property tax is around 4100. Listing for appraised price which is lil below mid 400's. Excellent opportunity however I've recently moved out South

URL to listing?

McKinsey wrote: ↑ URL to listing?

Would be listed in a week. Will share it

Zero Hope wrote: ↑ What condos in Kanata are you referring to?

The high rise I was referring to has no units for sale. But this older condo town with oil heater and $400+ condo fees would normally have plenty of company:

https://www.realtor.ca/real-estate/2103 ... eaverbrook

Two years ago there were plenty of older condo towns for less than 250k, sitting on market without much interest.

voodoo22 wrote: ↑ If you want a good laugh, check this out. 579k for this townhouse.

Ambitious price indeed.
I don't watch the suburbs market, but in some area of the Greenbelt, I feel there's some buyer fatigue. Often sold under asking.

It is a corner unit with a big yard and a layout that resembles a detached. I'm seeing newer semi detached asking $500k so it's not entirely unreasonable. Only 2 years old as well.

Then again I think of the older detacheds I saw in Barrhaven last year for close to $500k with a big lot and a pool...

At the price old homes are selling, are more people gravitating towards new builds and developments? I've seen a couple of newer builds and the houses themselves are nice, but it's hard to picture myself in a yard smaller than most master bedrooms.

It's also crazy to see houses from the 70's selling for 350k, especially when they're still somewhat in original conditions (old windows, baseboard heating, extremely outdated kitchens and bathrooms).

cbalain wrote: ↑ At the price old homes are selling, are more people gravitating towards new builds and developments? I've seen a couple of newer builds and the houses themselves are nice, but it's hard to picture myself in a yard smaller than most master bedrooms.

It's also crazy to see houses from the 70's selling for 350k, especially when they're still somewhat in original conditions (old windows, baseboard heating, extremely outdated kitchens and bathrooms).

Most new developments are selling out at prices that would have been unthinkable just two years ago. After selling the lot for a hefty price, builders then nickel and dime you in upgrades where their margins are the highest. While there may be few developments that offer better value, you typically don't save one way or another by going new build or resale.

There is a growing demand for smaller houses and smaller lots. Yes, many people are buying smaller as that is the only thing that they could afford, but both the younger generation and retirees like smaller properties that come with less maintenance.

Lastly, older houses going fro 350k is not surprising at all. Properties have two values: the building and the land that it is sitting on. Many older houses within the greenbelt sell based on their land value alone.

cbalain wrote: ↑ At the price old homes are selling, are more people gravitating towards new builds and developments? I've seen a couple of newer builds and the houses themselves are nice, but it's hard to picture myself in a yard smaller than most master bedrooms.

It's also crazy to see houses from the 70's selling for 350k, especially when they're still somewhat in original conditions (old windows, baseboard heating, extremely outdated kitchens and bathrooms).

It is all about location.

If we are talking about the same location or a direct apple to apple comparison.
A brand new home for $2M.
https://www.realtor.ca/real-estate/2027 ... yfair-park

While a 40 years old comparable size home in the same neighbourhood is selling for $675k.
https://www.realtor.ca/real-estate/2091 ... yfair-park

It is always price, location and size/age of house. For most people who has a limited budget, it will always be choosing 2 of the 3.

Its very difficult to understand the rise prices in Ottawa RE. Why so much hike? 2 years back, townhome were around 300k- new built. Now builders are selling it for $420k-430k+ two storeys townhome. This is like almost 40% hike in 2 years. Last week Minto in Kanata sold three storey townhome for $410k- 1500 sq.ft....what the heck?
I see many people from IT industry buying it as a investment because they think its good market to invest, Lot of immigrant are coming to Ottawa, foreign investors are investing to Ottawa after toronto, vancouver so the pricess will jack up eventually. one of my colleague who is from china has 4 rental properties, one from india has 3 rental units in last 2 years. These are all cash flow negative. They are just investing for Appreciation. I always wondered how come people buy RE based on appreciation. Ottawa is small political city than Toronto, Vancouver. Govt and IT are only two industries in Ottawa. DO you guys think Ottawa prices will be like Toronto/Vancouver in coming years?

I am wondering if prices are going up because of these kind of investments?Are people really able to afford house worth of $500k with $85000 median income in Ottawa.

What do you guys think? I would love to hear your opinion on this one...

bhushh009 wrote: ↑ Ottawa is small political city than Toronto, Vancouver. Govt and IT are only two industries in Ottawa. DO you guys think Ottawa prices will be like Toronto/Vancouver in coming years?

I am wondering if prices are going up because of these kind of investments?Are people really able to afford house worth of $500k with $85000 median income in Ottawa.

"small political city"? What does that even mean?

In any case, the median income in Ottawa is higher than both Vancouver and Toronto. How do families afford homes in those cities?

old sparks wrote: ↑ "small political city"? What does that even mean?

In any case, the median income in Ottawa is higher than both Vancouver and Toronto. How do families afford homes in those cities?

I meant it's a small City compared to other two and it's capital so political city-not as a financial capital like Toronto.

I agree median income is higher in Ottawa but most of people in Ottawa are salaried people while in other two cities - it's mostly small businesss. So I don't think their median income stats truly portrait actual income. Plus those two cities are flooded with immigrants because of opportunities. In context to that,Ottawa doesn't compare to those cities.

Many reasons contribute to the price raise Ottawa has known in the past 2 years
-Price catch up after price stalling between 2012 and 2016 (public service layoff period)
-New stress test on the mortgage. Properties under 400K become super in demand, hence raising price.
-Increase demand from Torontonians and maybe Vancouver folks
-very low interest rate
-High Tech/government hiring
-Increase students number enrolled in colleges and universities in Ottawa (international students, national students attracted to relatively cheaper housing)
-AirBNB popularity