Real Estate

Ottawa and Surrounding Area Real Estate market discussion

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  • Mar 1st, 2021 11:05 pm
Deal Addict
Sep 24, 2010
1921 posts
215 upvotes
I am putting a 4-plex on sale this week ! Watch out for it
Deal Fanatic
User avatar
Dec 27, 2009
7166 posts
4351 upvotes
Victoria, BC
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.
Jr. Member
Feb 4, 2017
130 posts
32 upvotes
ahato wrote: I am putting a 4-plex on sale this week ! Watch out for it
Would love to get details on it..
Deal Addict
Sep 24, 2010
1921 posts
215 upvotes
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
Deal Addict
Dec 4, 2016
1872 posts
892 upvotes
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.
Jr. Member
Mar 29, 2016
157 posts
119 upvotes
Toronto
Any good condos launching in Ottawa soon which can be potentially good for investment (+ve ROI from rental) ?
Deal Addict
Jul 7, 2007
1171 posts
751 upvotes
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?
Member
Jul 25, 2008
400 posts
274 upvotes
ottawa
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.
Deal Addict
Oct 18, 2014
1962 posts
853 upvotes
HK
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?
Deal Addict
Dec 4, 2016
1872 posts
892 upvotes
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.
Sr. Member
Aug 6, 2011
592 posts
264 upvotes
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.
Deal Guru
Oct 30, 2006
14823 posts
4303 upvotes
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...
TripleQ wrote:I read Click magazine for the articles!
Newbie
Aug 29, 2012
50 posts
24 upvotes
Ottawa
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).
Sr. Member
Nov 10, 2014
528 posts
883 upvotes
Ottawa, ON
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.
[OP]
Deal Addict
Nov 26, 2004
2885 posts
1293 upvotes
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.
Jr. Member
Feb 4, 2017
130 posts
32 upvotes
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...
Sr. Member
Feb 18, 2010
891 posts
358 upvotes
Greely
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?
Jr. Member
Feb 4, 2017
130 posts
32 upvotes
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.
Sr. Member
Aug 6, 2011
592 posts
264 upvotes
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

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