Condo Investment - Thoughts?

[Equity Market investor]

The example I mentioned in the above post was only an example . The point of it was to show how much one needed to make it ( rental ) work in favor for profit. The OP mentioned a windfall at hand so, it could very well work for this person. It's a numbers game at the end of the day. Bottom line is, if you have a minimal down payment ( which clearly the OP has much more by the post ) ....it's not going to work for you based on today's rates, expenses etc.

As for us in different worlds since you mentioned it. I'm definitely not " crazy rich " I'm doing ok for myself However, since this was brought up, I could easily come up with close to $300K for a down payment for a condo rental. But I wouldn't do that because I feel the real estate market is an over priced balloon imo. My energy share(s) stock holdings ( since 2020 ) are performing far better, thank you very much

320k on hand for a down? We definitely live in different worlds. 😲

 

[Motasem]

I was chatting with my financial adviser the other day and the subject of interest rates and mortgages came up. The numbers are ugly.

Two years ago if you were paying 3% on a $750K loan your monthly payments were $3500. If you didn’t lock in, today at the posted rate of 6.3% your monthly payments are $4928.

On top of that you’ve got condo fees of $500 a month, plus cleaning $75 per AirBnB stay and now you’re up to $6000 a month.

If you buy in Vancouver you are not permitted to do short-term rentals if it is not your principal residence and the unit can be rented monthly. Plus you have to deal with managing unruly AirBNB party people damaging your property. And dealing with the strata council, which can be a shit show.

Unless it’s a long game why bother with all that grief. Find a stable/aggressive mutual fund and get 8-10% compounded without the grief.

My 2 cents

Where can you find that kind of mutual fund?

 

[vanperb]

As for us in different worlds since you mentioned it. I'm definitely not " crazy rich " I'm doing ok for myself

I'm just here chomping on a 7-11 Big Bite Special...

 

[VinVan]

Where can you find that kind of mutual fund?

I have some cash in a GiC with my bank right now that is producing 5.25%. It’s short term. My financial adviser at the bank showed me a portfolio of products from conservative (historically producing 3-6%) to aggressive (eg higher risk producing 8% plus through some periods). Just go to any reputable bank and they’ll have a bunch of advisers. They’d much rather keep the $ in house than have you go to a broker. DM me if you want the bank I’m at.

 

[sensualsixty]

I have some cash in a GiC with my bank right now that is producing 5.25%. It’s short term. My financial adviser at the bank showed me a portfolio of products from conservative (historically producing 3-6%) to aggressive (eg higher risk producing 8% plus through some periods). Just go to any reputable bank and they’ll have a bunch of advisers. They’d much rather keep the $ in house than have you go to a broker. DM me if you want the bank I’m at.

Sorry to spoil the illusion, but you do not have a financial advisor at the bank (check his/her credentials). You have a bank salesperson.

 

[80watts]

Wait a few years till the interest rate goes up 3 to 4 % to past 6/8%. People will sell their house and condos, you might pick one up cheap and there will be lots on the market. Gonna be alot of losers in the housing market (losing their equity).

1. I remember about 15 years ago there was a markplace/W5 video on how a 50,000.00 shit house (run down/no one living in it) became 2years later a 100, 000.00 house with no renos. It was the Banks, buyer/seller/mortgage broker/ house accessor scam all among these professionals that were friends. The house kept getting flipped from one speculator to another. Then its sold to some poor fella who can hardly afford to fix the house.
2. Now lets put that into flipping houses for a living 30 years ago. People were flipping 3-5 houses a year capital gains free.
3. Now lets look at a realator who puts a house on at say 100,000.00 (in an area short on housing), the owner agrees to the 100,000.00 dollar. This means in the contract the owner does not have to accept offers under 100,000.00 for the house, but can accept higher bids. Now if more than 2 persons want to buy that house a biding war occurs and the house will sell at a higher price say 120,000.00. The current system has a tendency to help inflate house prices in areas where living space is not available as much ( Toronto, Vancouver etc).
Now alot of people blame foreign investors for the high price of houses in Canada, where it was those 3 things above that drove the prices of houses up. The foreign investors just could outbid everybody at the end. The other thing was house here in Canada were cheaper than on the world market.

Now banks are making much more interest from the higher borrowing price, and higher the interest rates now.

its also why there is hardly any low income housing, people want to make profit. GREEDY (Banks, speculators etc) bastards....

The reality is that most people that have mortgages are slaves to their mortgage, and it will take them a long time to pay that mortgage off.