Real Estate

Ottawa and Surrounding Area Real Estate market discussion

  • Last Updated:
  • Jan 18th, 2021 3:48 pm
Member
Nov 1, 2020
234 posts
113 upvotes
Mrperson wrote: The base price for 3 bed Watson model from Richcraft is $757k https://www.richcraft.com/home/watson/
Finished basement=$15k, additional bedroom in the second floor=$?k, alternate kitchen=$2k, upgraded countertop and few others, I think with $10k appliance and staging could sell at least for the asking price. IMO
Another problem is that watson is not a popular model. Small space. If it was baldwin, it woukld have gone much faster disregarding the upgrades
Jr. Member
Sep 29, 2013
178 posts
97 upvotes
canabiz wrote: I will get both variable and fixed rates and decide. Even if we go with fixed, we would only sign for 3 year at the most.

I wouldn't necessarily say we are risk takers at this point of our life/career but having gone with variables for all of our properties have saved us a a lot of coins over the years and you know what they say: If it ain't broke, why fix it :)
I'm gonna start going variable as well. Especially since it will give me the option to sell if a tenant leaves.
Deal Fanatic
Jul 4, 2004
5849 posts
1909 upvotes
Ottawa
AddictRC wrote: I'm gonna start going variable as well. Especially since it will give me the option to sell if a tenant leaves.
Variable does not mean open ... Even if you have a variable rate, if you want to sell before your term is over, you have have pay a mortgage penalty.

FWIW, personally, although in the past I was a big believer in variable rates, I think the fixed rates are so low that I think if renewing you are better off with the fixed rate. It looks like you can probably get a 5 yr fixed within 0.1 to 0.5 of the variable rate and I think that over the next 5 years, rates will likely climb back up more than that.
Sr. Member
Feb 18, 2010
884 posts
351 upvotes
Greely
michelb wrote: Variable does not mean open ... Even if you have a variable rate, if you want to sell before your term is over, you have have pay a mortgage penalty.
I understood that the penalty for leaving a variable rate mortgage was 3 months interest, probably with other fees the bank sees fit to impose...
But is payable at the interest rate at the time the mortgage was renewed, or the current variable rate? Mine is currently 1.69% and I have been thinking about selling this spring...
Deal Fanatic
Jul 4, 2004
5849 posts
1909 upvotes
Ottawa
old sparks wrote: I understood that the penalty for leaving a variable rate mortgage was 3 months interest, probably with other fees the bank sees fit to impose...
But is payable at the interest rate at the time the mortgage was renewed, or the current variable rate? Mine is currently 1.69% and I have been thinking about selling this spring...
Actually, you might be right on that and it would be worth checking.
Jr. Member
Sep 29, 2013
178 posts
97 upvotes
michelb wrote: Variable does not mean open ... Even if you have a variable rate, if you want to sell before your term is over, you have have pay a mortgage penalty.

FWIW, personally, although in the past I was a big believer in variable rates, I think the fixed rates are so low that I think if renewing you are better off with the fixed rate. It looks like you can probably get a 5 yr fixed within 0.1 to 0.5 of the variable rate and I think that over the next 5 years, rates will likely climb back up more than that.
Im aware if that but 3 mos interest at todays rates are nothing. Havent checked IRD. I just know that TDs IRD is brutal since they use posted vs discount.
Ive never gone variable so I wanna mix it up. I will gamble on the 2023 thing and my mtg person said that locking in will be at the competitive equivalent 5yr at the time.

Anyone have experience with locking in? Did you get shafted?
Jr. Member
Sep 29, 2013
178 posts
97 upvotes
old sparks wrote: I understood that the penalty for leaving a variable rate mortgage was 3 months interest, probably with other fees the bank sees fit to impose...
But is payable at the interest rate at the time the mortgage was renewed, or the current variable rate? Mine is currently 1.69% and I have been thinking about selling this spring...
Good to sell in a sellers market. I have some 3 storeys which are being outpaced by 2 storeys. We feel they have a ceiling... another gamble.
Newbie
May 5, 2020
40 posts
39 upvotes
MikeMOON2 wrote: I heard they increased more for bigger lots , no?
I know most lots have increased by $5k if not all.
Newbie
May 5, 2020
40 posts
39 upvotes
MikeMOON2 wrote: Another problem is that watson is not a popular model. Small space. If it was baldwin, it woukld have gone much faster disregarding the upgrades
I agree with you that Baldwin is the most popular single family house from Richcraft but Watson is a newer model (2018) and I see many of them under construction or owner-occupied at least in Westwood
[OP]
Deal Addict
Nov 26, 2004
2710 posts
931 upvotes
splatqa wrote: Looking for advise on the following:
We are looking to move back to Vancouver to be close to family sometime this year. We currently own two rental properties and a primary residence in Kanata. All have appreciated very well with positive rental cash flow. We also own another rental in Vancouver which we plan to move back into in the interim. 
We plan on holding on to the two 2 rentals in Kanata as there are both townhouses. I'm looking for advice on what to do with my primary residence. The plan is to eventually sell both properties, the one in Vancouver and my current primary residence in Ottawa in order to buy another place in Vancouver. However, given the continuing appreciation of property prices I was wondering whether it makes sense to turn my primary residence into a rental before we leave in the summer therefore to capitalize on the continuing gains this year or sell the place altogether. If I do decide to turn it into a rental my concern is that given that the property is almost 3000 sq I don't think there will be much demand or a large rental pool for the property? On the flip side the monthly cost of maintaining the property is approx $1700 (this includes mortgage, property tax, insurance and various utilities).
Any thoughts on what I should do? 
I think there are a number of factors at play here.

I would say one of the key factor is what and when you plan to buy in Vancouver. I would like to think an equivalent $1M home in Kanata will be in the $4M+ range, probably closer to $5M on Vancouver West. For easiness of calculation, let's say Ottawa will go up another 10%, and Vancouver will go up by 5% in 2021. In theory, the home in Kanata will be worth $1.1M whereas the $4M home that you may be looking at in Vancouver will cost you $4.2M at the end of 2021. And because the home in Kanata is now a rental, there will be an approximately $25k tax bill on that $100k incremental profit. Thus, even though, you're winning in terms of percentage, but in reality you're losing $125k in nominal dollars.

One thing for sure is to get an appraisal done for your soon to be primary residence in Vancouver and also get an appraisal done for your home in Kanata if you do decide to go the rental route. After all you will need these appraisals in order to defend the capital gain exemption you're claiming if challenge by CRA.

Personally, because I'm risk adverse, when it comes to personal residence, I will not try to time the market.
Deal Addict
May 23, 2017
1007 posts
766 upvotes
raaaaam wrote: Minto's Arcadia prices are out for the next release in case someone is interested:
https://www.minto.com/ottawa/Kanata-new ... Homes.html
I think they are up by 30k to 35k for some of the bigger floor plans.
I think the bigger models are actually up by 50k. For example Darlington was $770k last release and now it's $820k, same with the other 43' models.

And many 36' models are up 45k.
Sr. Member
Feb 18, 2010
884 posts
351 upvotes
Greely
AddictRC wrote: Good to sell in a sellers market. I have some 3 storeys which are being outpaced by 2 storeys. We feel they have a ceiling... another gamble.
Yes. I'm hoping the spring market will continue to be a sellers market. I'm thinking of buying a lot to custom build a bungalow or moving to a smaller, less expensive market. My only concern is I dislike being homeless... (lol)
Deal Fanatic
User avatar
Jul 4, 2005
6629 posts
975 upvotes
Ottawa
Minto Harmony is coming out this Sat with ~35 2-storey TH lots and 6 "urban"(aka 3-storey) TH lots. Prices to be released tomorrow on https://www.minto.com/ottawa/new-homes/ ... tions.html. Site plan is here. Let's see how it compares to Morgan's Creek in Kanata.
Find a home built for the modern family in Harmony. Three-floor Urban Townhomes and open-concept Executive Townhomes available January 9 at 11AM. You can now view lot availability online, and pricing will become available tomorro
Jr. Member
Sep 29, 2013
178 posts
97 upvotes
jeeva86 wrote: Minto Harmony is coming out this Sat with ~35 2-storey TH lots and 6 "urban"(aka 3-storey) TH lots. Prices to be released tomorrow on https://www.minto.com/ottawa/new-homes/ ... tions.html. Site plan is here. Let's see how it compares to Morgan's Creek in Kanata.
I'll have my eye on the avenue towns. I have one I may want to sell but it is a single garage. I am predicting 520K max since it was 499 last release.
Jr. Member
Sep 29, 2013
178 posts
97 upvotes
jk9088 wrote: I think the bigger models are actually up by 50k. For example Darlington was $770k last release and now it's $820k, same with the other 43' models.

And many 36' models are up 45k.
Looks like avg sized singles with double garage are seeing the most appreciation. Too bad you will lose your shirt if you buy one pre-con then have to rent it for 3500! haha
Member
May 6, 2012
360 posts
212 upvotes
KANATA
AddictRC wrote: Looks like avg sized singles with double garage are seeing the most appreciation. Too bad you will lose your shirt if you buy one pre-con then have to rent it for 3500! haha
Percentage wise, TH still wins. Plus, it is easier to rent.
Deal Addict
May 23, 2017
1007 posts
766 upvotes
AddictRC wrote: Looks like avg sized singles with double garage are seeing the most appreciation. Too bad you will lose your shirt if you buy one pre-con then have to rent it for 3500! haha
I'm skeptical you can get $3500 rent for an average-sized single in the suburbs. That would actually make it an "ok" buy. I'm guessing rents would be more like mid to high 2000s...rent really plateaus as it goes up because the tenant pool shrinks drastically, like most people who could afford $3500 rent probably own.
Member
Nov 10, 2014
392 posts
538 upvotes
Ottawa, ON
Caivan just released their prices for the upcoming release in the Ridge in Barrhaven. Cheapest town starting at 630k, largest single starting at 885k.

https://caivan.com/wp-content/uploads/2 ... eaOw%3D%3D

Congrats to whomever picked up the semis in Carleton Place this past week for 500k. That probably will be the best precon deal for all of 2021.

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