88 replies to this topic

[MarkoJ]

but if the rent was say $300/mo. over market were they trashed to the tune of $300/mo?  you might say "well i never heard from the great tenant i selected for 2 years" but you also lost $7,200.  i'd replace a few light bulbs for $7,200.

 

Problem is my time is worth a lot to me. I don't want to be dealing with complicated people, late rent payments or trades people trying to fix a damaged floor, etc.

 

My approach has always been 5 to 10% below what I think is market value and find a great tenant and call it a day.

[ovovov]

603-751 Fairfield Rd sold within hrs today..... wow!!

[RFS]

How do we feel about new build condos in downtown Nanaimo such as https://www.parkshor...rospect-Nanaimo

 

Studios from $159,900 - $199,900 + GST

1 Bedroom from  $229,900 - $319,900 + GST

1 Bedroom + Den from $309,900 - $419,900 + GST

2 Bedroom from $349,900 - $459,900 + GST

 

When that downtown to downtown passenger ferry gets going these could definitely stand to benefit.

 

Thoughts for rentals/appreciation?

[Nparker]

 

When that downtown to downtown passenger ferry gets going these could definitely stand to benefit

So sometime around 2075 then.

[Mike K.]

The first question you should be asking is what the rental rates are in Nanaimo and whether the numbers will work given your unique situation.

Next question is do you have the time or the resources (if you don’t have the time) to manage a unit 1.5 hours away.

[James Bay walker]

There is no safer place for your money than a GIC, but the best you’re going to get with rates falling is 2.45% on a five year term according to GIC Direct. Ouch.

Over the short term of weeks or even months, I completely agree, your money's safe. But holding your money in a GIC for years at merely 2.45%, seems a sure route to penury imo, as inflation tends to eat you alive slowly but surely.

a) you've income taxes (so, you're not netting 2.45% on your GIC), and, b) you've inflation (your money's real value drops 2%/year?). So as I see it, you've not even a shot at +0.45%/year.

So back to investing in a rental condo: To me I see your real profit may be down the road when a hopefully higher resale value is probable (any increase, even if it's merely inflationary, is taxable but at least there's still capital gains I think, so only half the net gain's taxable). Bottom line: I'd be thinking before buying a rental condo, what could I sell it for, today? And I'd want to factor in: will there be hidden costs coming up during my holding period (eg. structural issues, lawsuits)?

jbw

ps. (elsewhere) you remarked $100/month for rental condo insurance. I'm paying less than $20/month [well, $220/yr] for insurance on my rental condo (Pacific Coast SCU's insurance dept.).

Edited by James Bay walker, 27 February 2020 - 06:30 PM.

[AllseeingEye]

The first question you should be asking is what the rental rates are in Nanaimo and whether the numbers will work given your unique situation.

Next question is do you have the time or the resources (if you don’t have the time) to manage a unit 1.5 hours away.

 

Yeah pretty much this: I asked an investment/advisor friend who also manages my locked in RSP and other accounts - this is a guy who's owned and rented out properties everywhere from Mexico to Arizona to Ohio - about possible rentals from Duncan to Campbell River. His first comment, along with a big smirk, was "how do you feel about getting that call at midnight during the week from a tenant in Campbell telling you the hot water tank just blew up?" Point taken.

[Mike K.]

Yup.

Or you use a rental agency, but that’s $$$. You best have a decent down payment for that unit or buy it outright to make that work.

[James Bay walker]

Yup.

Or you use a rental agency, but that’s $$$. You best have a decent down payment for that unit or buy it outright to make that work.

A few $$$ in their management fee (10% of the gross rent?). But sadly some property management companies like the concept of an empty month between tenants as it makes for easier showings.

You could hope to drop the property manager after a year [typically the property manager has a minimum fee similar to a year's worth of their services] but if the tenant seems especially stable, and, you feel you've a good handle on things, it's worth a thought.

jbw