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1st investment condo


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#61 MarkoJ

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Posted 18 July 2015 - 12:09 PM

 

Obviously not having condo (age/rental) restrictions is best for resale value.  

 

Would you guys not buy a condo because there were too many rentals in the building?

 

(Hard to tell if this is a negative because tenants may not care about the building long term - or if it is a plus because the place is apparently easy to rent out?  

 

 

BBQs allowed, pets allowed with no size restrictions, no age restrictions, no rental restrictions is best possible scenario for re-sale.

 

If you are 80 years old and want a quiet building one that is 70% rented may not be the best option; however, if you are an investor I don't think you avoid a building with too many rentals if it makes sense; however, you aim for one with a lower percentage of rentals if possible.  For example, 365 Waterfront is only 15% rentals while the Juliet is approximately 55-60% rentals.


Marko Juras, REALTOR® & Associate Broker | Gold MLS® 2011-2018 | Fair Realty

www.MarkoJuras.com - MLS® from $899 and $1,000 cash back for buyers | www.834sales.com & www.promontoryforsale.com - Building(s) specialist 

Looking at Condo Pre-Sales in Victoria? Save Thousands!

 

 


#62 MarkoJ

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Posted 18 July 2015 - 12:14 PM

The strata can amend, but you are often grandfathered through. 

 

I think you are always grandfathered....extremely rare that a strata corporation amends the rental bylaws.  Shutters is the only new building in Victoria I can think off where a rental restriction bylaw has been introduced.


Marko Juras, REALTOR® & Associate Broker | Gold MLS® 2011-2018 | Fair Realty

www.MarkoJuras.com - MLS® from $899 and $1,000 cash back for buyers | www.834sales.com & www.promontoryforsale.com - Building(s) specialist 

Looking at Condo Pre-Sales in Victoria? Save Thousands!

 

 


#63 MarkoJ

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Posted 18 July 2015 - 12:28 PM

There are lots of tools out there for projecting returns that do take into account all the factors that apply.

Probably better than hoping one unaccounted for factor cancels out the other (I know you've thought through it in detail, but for a new buyer).

http://www.nolo.com/...y-worth-it.html
http://www.rentalpro...perty-analyzer/
http://www.ultimatec...e_property.html

 

When I was doing my masters at UBC I had to take a number of accounting and business courses and we had to learn involved ROI calculations, etc.  Problem was we always had all the end-outcome variables which you cannot accurately predict in real life.

 

In my business, investments, etc., I apply absolutely zero in what I learned in University. 

 

More of business is about going on "feel" for me personally versus over-analyzing.

 

When I was renting out my unit at the Promontory last month, for example, I had a number of people that would comment, "really nice spot here."  Just one of the many factors I take into "feel," in terms of buying into the last Bayview tower that will finish off the area.  Obviously there are a number of objective factors in addition such as price per square foot, concrete vs wood, ceiling height, etc., but can't exclude "feel."  


Marko Juras, REALTOR® & Associate Broker | Gold MLS® 2011-2018 | Fair Realty

www.MarkoJuras.com - MLS® from $899 and $1,000 cash back for buyers | www.834sales.com & www.promontoryforsale.com - Building(s) specialist 

Looking at Condo Pre-Sales in Victoria? Save Thousands!

 

 


#64 MarkoJ

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Posted 18 July 2015 - 12:30 PM

And I always thought a bank would give you a higher interest rate if purchasing a property not for personal use as a primary residence. Is that not the case?

 

You need to plunk down minimum 20% on a non-primary residence but the rates are just as competitive.


Marko Juras, REALTOR® & Associate Broker | Gold MLS® 2011-2018 | Fair Realty

www.MarkoJuras.com - MLS® from $899 and $1,000 cash back for buyers | www.834sales.com & www.promontoryforsale.com - Building(s) specialist 

Looking at Condo Pre-Sales in Victoria? Save Thousands!

 

 


#65 MarkoJ

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Posted 18 July 2015 - 12:35 PM

Loving this discussion! It is threads like this that I learn a lot. Helps me see things at different angles. Everyone's situation is different of course. Marko's situation is probably rather unique - he has early access to pricing data, is a Realtor (tm... yada), can manage his own properties effective but is short on time, so targets new builds to minimize management time, and has a specific location in mind (near downtown).

 

To add to your point I also pay myself a commission of at least $4,500 (sometimes more if developer offering commission bonuses) on a $200,000 condo purchase.  

 

This is probably the best point of this entire thread.  It doesn't hurt to use your skills to your advantage in terms of investment properties.  

 

If I was a plumber, electrician, carpenter or just handy in general (which I am not) and had spare time on the weekends (which I don't) I would definitely lean towards a revenue triplex in Fernwood for example, instead of three condos.  

 

There would be more of a time commitment but the return on rent would be better and also the appreciation of the property would be much better than condos due to the land component not being a depreciating asset.


  • lanforod likes this

Marko Juras, REALTOR® & Associate Broker | Gold MLS® 2011-2018 | Fair Realty

www.MarkoJuras.com - MLS® from $899 and $1,000 cash back for buyers | www.834sales.com & www.promontoryforsale.com - Building(s) specialist 

Looking at Condo Pre-Sales in Victoria? Save Thousands!

 

 


#66 MarkoJ

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Posted 18 July 2015 - 12:47 PM

Oh I would advise that all people planning on being a landlord should be part of the LandlordBc.ca association (formerly the ROMS BC from Victoria and BCAOMA which merged a few years back).

Excellent forms, cheap credit check on new tenants, free advice for difficult tenants, and many more benefits. 

If you hire a management company, this is redundant, but if you self manage.. even with 1 or 2 units.

 

I also Facebook perspective tenants.  A lot of people seem to have open profiles and often the profiles paint a different picture of an individual compared their presentation when viewing a condo.


  • Matt R. and lanforod like this

Marko Juras, REALTOR® & Associate Broker | Gold MLS® 2011-2018 | Fair Realty

www.MarkoJuras.com - MLS® from $899 and $1,000 cash back for buyers | www.834sales.com & www.promontoryforsale.com - Building(s) specialist 

Looking at Condo Pre-Sales in Victoria? Save Thousands!

 

 


#67 Mike K.

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Posted 23 July 2015 - 08:21 AM

Marko's article on buying an investment condo in Victoria has been published on Citified here.  A discussion relating to the article can be found here.


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