Ottawa and Surrounding Area Real Estate market discussion

I'm in a similar boat as some of you here: I moved from Vancouver to Ottawa for better job prospects, more pay, and cheaper housing. There are some things I miss about Vancouver but Toronto and Montreal aren't far away if I want that big city feeling.

I don't think it'll ever hit Vancouver or Toronto levels because it just doesn't have that appeal. It doesn't have the large multinationals, proximity to Asia, big airport, or the population size.

If you go on instagram and search for kanata geolocation, you'll see a realtor who posted a Mattamy (shittiest builder) Fir townhome (smallest model available) in Blackstone South (its in Stittsville, not Kanata) and they are asking for $2,100 which in my opinion is a joke. This was posted yesterday if your trying to locate the picture.

Zero Hope wrote: ↑ If you go on instagram and search for kanata geolocation, you'll see a realtor who posted a Mattamy (shittiest builder) Fir townhome (smallest model available) in Blackstone South (its in Stittsville, not Kanata) and they are asking for $2,100 which in my opinion is a joke. This was posted yesterday if your trying to locate the picture.

From my understanding all the builders are shitty. It's just a luck, depends when and what contractors they hire. I get all type of different feedbacks from all type of builders. When I was trying to understand which builders is the best, I couldn't find the answer.

vahk33 wrote: ↑ From my understanding all the builders are shitty. It's just a luck, depends when and what contractors they hire. I get all type of different feedbacks from all type of builders. When I was trying to understand which builders is the best, I couldn't find the answer.

For what it's worth, I visited model homes with family members who have some construction background. The model home of Metric Homes seemed to have the best quality. Some of Minto's model homes were considered acceptable. Keep in mind that these are model homes. With the hot market and shortage of skilled trades, there's pressure on every builder to cut corner and get things built fast.

ilusa wrote: ↑ If your in it for the long term, Everything goes up

Ask your parents what they paid for there house 20-30 years ago

Stocks / Houses and solid investment will go up alot in the long run. Including taxes

For Ottawa, 20 years ago would be 1999, Nortel's hey day. Adjusted for inflation, RE appreciation would be lackluster.

vahk33 wrote: ↑ From my understanding all the builders are shitty. It's just a luck, depends when and what contractors they hire. I get all type of different feedbacks from all type of builders. When I was trying to understand which builders is the best, I couldn't find the answer.

No, Mattamy is definitely the shittiest. Smallest lots (lol widelot) and their standard spec sheet are worse than any other builder. But hey, their houses are cheaper for a reason.

BlueSolstice wrote: ↑ For Ottawa, 20 years ago would be 1999, Nortel's hey day. Adjusted for inflation, RE appreciation would be lackluster.

LOL

SELL EVERYTHING NOW!

Conservatives plan to freeze hiring in the public sector if they are elected.. We all know what happened when Harper did that before. Rough days ahead.

I hate Trudeau, but I may be forced to vote for Liberals to keep my pockets nice and fat.

“Friday, the Conservatives revealed how they’d pay for their promises, although the platform was sparse on details, and the party limited how many questions could be asked about its plans.

The Conservatives would spread the Liberals’ infrastructure programs over 15 years from the current 12-year plan, which they say would cut spending by more than $18 billion over their planning time frame. That money would still be spent under the Conservatives proposals, just pushed forward into later years.

The platform also promises to freeze public service hiring, for an estimated saving of $1.2 billion over five years”

https://www.thestar.com/politics/federa ... books.html

I wrote in a post back on Oct 6th that this would happen should a Cons gov't be elected:

From the Star

"The platform also promises to freeze public service hiring, for an estimated saving of $1.2 billion over five years.

The Conservatives say “other operating expenses reductions” — spending cuts — would save $14.4 billion over their five-year plan, although exactly what would be cut is not clear from their document.

The party says it would cut down on the use of consultants, and “control” expenses on travel and hospitality. According to federal government documents, total spending on those two categories amounted to $12.5 billion in 2018-19. The platform also envisions “tightening” the federal government’s procurement rules in an unspecified way."

Fresh off the memories of Harper's cutbacks, a staffing freeze in the federal public service would send an immediate chill in the Ottawa housing market as federal public servants all know that it would simply be a start of more cuts to come. "Other operating expense reductions" would most certainly trigger reductions and or lay offs and work force adjustment. Cutting back on consultants and control expenses means all those people that work for the gov't but not as gov't employees are affected and it also means that employee transfers in and out, aka, Department of Defence, will be significantly reduced. Tightening procurement rules also means a reduction in consultants and less revenues for all those businesses that do business with the federal public service.

These measures would be disastrous for the Ottawa housing market.

Lone_Prodigy wrote: ↑ I'm in a similar boat as some of you here: I moved from Vancouver to Ottawa for better job prospects, more pay, and cheaper housing. There are some things I miss about Vancouver but Toronto and Montreal aren't far away if I want that big city feeling.

I don't think it'll ever hit Vancouver or Toronto levels because it just doesn't have that appeal. It doesn't have the large multinationals, proximity to Asia, big airport, or the population size.

Plus the Cold Cold COLD winters and the French language. Anywhere you cannot even get a McDonalds job without being bilingual will have severe limitations in population growth. The French is killing Ottawa’s appeal for me. I went to school in Ottawa and moved to Toronto and have been thinking about moving back but as soon as I look at job boards, I quickly say forget that. Can I speak French?? Yeah, sure..my masters was a bilingual program, but being away for so long, it would be an unnecessary annoyance to relearn it again.

Plus, cities like Toronto has so much more. I was in Ottawa two weeks ago and It has not changed much. We went to Chinatown for dinner and it is still 2 blocks. It is more of a coincidence then a Chinatown. Same with little Italy.

GaryR28626 wrote: ↑ “Friday, the Conservatives revealed how they’d pay for their promises, although the platform was sparse on details, and the party limited how many questions could be asked about its plans.

The Conservatives would spread the Liberals’ infrastructure programs over 15 years from the current 12-year plan, which they say would cut spending by more than $18 billion over their planning time frame. That money would still be spent under the Conservatives proposals, just pushed forward into later years.

The platform also promises to freeze public service hiring, for an estimated saving of $1.2 billion over five years”

https://www.thestar.com/politics/federa ... books.html

Looking at this only through on Ottawa Real Estate lense it is not that bad overall. I mean it is bad, but not as bad as it could be. Lots of cuts in real spending out in the country rather than admin in Ottawa, though they have vague promise of a bunch of that eventually.
The new hiring freeze will quickly be bad for condo market though as the new employee pipeline freezes and in migration to Ottawa slows.

My reading is a lot of cuts on program staff in Ottawa responsible for foreign aid spending, industrial grants, and infrastructure spending that is foregone.

I'm unclear if they are relying on existing real property and procurement modernization plans or not, but these will both effect the commercial re market.

The hiring freeze is bad. Potentially 5 years of 0% real estate growth after inflation again.

I think we shouldn't count politics and government jobs the only factor affectin RE market. People still need to live somewhere. If they can't afford to buy they will rent and it will support investors. Price will keep growing maybe a bit slower with conservatives.

vahk33 wrote: ↑ I think we shouldn't count politics and government jobs the only factor affectin RE market. People still need to live somewhere. If they can't afford to buy they will rent and it will support investors. Price will keep growing maybe a bit slower with conservatives.

Problem is does people still need a place to live in Ottawa. If the population stop growing with government cut back, it will be tough especially for the investors/speculators who bought these town homes in the burbs for the purpose of renting out.

And right now, with the strength of the Bloc and the NDP, in the latest poll, the Conservative are projected to win more seats than the Liberal.
https://www.cbc.ca/news/politics/scheer ... -1.5319507

Yup, polling updates today are scary, potential CPC govt propped up by the bloc, which is the worst possible result for Ottawa real estate. Their policy aligns when it comes to shrinking the federal headcount and downloading jobs and responsibilities to the provinces.

How big do you guys think is the impact of having community housing in the neighborhood?

I am considering purchasing a house that is in great condition and would cashflow decently, location is great and neighbourhood is decent except that there is a community housing building near it. The house itself is located on a quiet inside street that is "nestled away" so I don't think it is affected much by the community housing, and as I mentioned apart from that building I do like the neighbourhood (it's not sketchy or a bad area).

However, I'm concerned that just being near community housing will affect the tenant pool and possibly result in lower rent, as well as affect future resale. Anyone with thoughts or experiences on whether or not this is a big deal?

danishh wrote: ↑ Yup, polling updates today are scary, potential CPC govt propped up by the bloc, which is the worst possible result for Ottawa real estate. Their policy aligns when it comes to shrinking the federal headcount and downloading jobs and responsibilities to the provinces.

I'm personally hoping for a Liberal minority despite my hate for the Liberal government and their ideology as they are useful idiots to prop up my house price. However I think a CPC minority is fine as well.

I personally don't care who gets elected since I certainly don't have a knee jerk reaction when it comes to selling real estate. I'm holding for the long term anyways (only 30 and have a long 40+ year investment horizon remaining). We're up 40% on our primary residence since buying in 2013 and honestly it doesn't matter what that number is because we need a place to live. Any dip in the Ottawa RE market is an opportunity for me/us to buy more, and I would certainly love to add a second and third townhouse to my RE investment portfolio. I welcome a drop so I can get some bargains.

Similarly not worried about a potential recession and all this stock market fear out there. If there is a huge drop, I am/we are well positioned to buy more and invest more at a bargain In fact I welcome a 40-50% drop in the market as we're well positioned with a 60/40 defensive portfolio and would shift all our fixed income to 100% equities and invest wayyy more that I currently have on the sidelines for a quick recovery and gain.

Part of being a successful investor whether in RE or in equities is buying during the downturns. If you are investing for the long term, there's no reason to fear them. See them for the opportunities that they are.

Need some suggestions from everyone.

I own a property in Ottawa that I've been renting out for the last 3-years (to family. The best tenants).

I have lived out of town, but moving back this month for good.

I want to buy a 2nd house, but am concerned with over-stretching.

I have about $70k in equity on my RENTAL compared to my purchase price. I have about $200k in equity compared to today's sale price.

I have $50k for a down payment at this moment, but will have another $20-30k over the next 6-7 months.

The properties I WANT are in the $550-600k range, but the houses I SHOULD buy are in the $450-$550k range.

From a financial perspective, what would my best move be? My renters are not moving out anytime soon. I'm net even on cash flow from that property.

Thanks everyone!