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Where would you buy your money-making condo(s)


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#41 MarkoJ

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Posted 01 August 2018 - 09:17 AM

sorry to dig up this old post.... it's been two years... dipped into three condos..... era, legato and 989.(closing soon in next year) and I will be cash out soon for the first two.

 

it is difficulty to maintain the roi where i got from ERa and Lagato.... I get it almost tripled the amount  i paid as down payment in three years

 

 

the next move i am going to try to purchase some land in Lanford( as looks like it is going to run out of land soon, looked at Latoria) and start to building a new home around 170/sqft. Will keep updating while I move along, hopefully I could retire early at 40 and drive a teals.

 

about 2 years ago, a standard land lot was about 250k, not same size lot asking for 350k-370k,I did not have sufficient funds to put down back then. otherwise I would have gone thru that route.

any comments is appreciated!!!

 

Do you have any experience building a home?


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#42 ovovov

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Posted 28 July 2019 - 12:24 AM

Do you have any experience building a home?

 

 

I had zero experience and I am trying to figure it out.....made some mistakes and learned some lessons. Next time, I will not make the same mistake..

 

one positive lesson I learned is to do sufficient preparation work . especially reading the book here....

https://www.rsmeans....costs-book.aspx

 

and talk to the contraction worker on their job site..



#43 AllseeingEye

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Posted 28 July 2019 - 07:23 PM

Have you considered a manufactured home? And do you have to retire in Victoria?

 

We are hoping to retire in 6-8 years and I've certainly looked at plots north of Parksville up to the Comox/Courtenay area. You can get a nice 1500+ s/f manufactured home in the $150-200K range and plots there are cheaper than the lower island. 

 

We really like French Creek, which is located between Lantzville and Qualicum, which is where I'm focused on looking at the moment.


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#44 ovovov

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Posted 13 August 2019 - 10:23 PM

here we go again...

 

 

man, the rental for 1 bed room and even studio keeps going up... A one bed room in the newer building now rents out at $1700/m...

 

 

So let's revisit the old scratch pads to see if opportunities are still there.

 

Marko, what is your take on the Pearl Development?  Are the prices still make financial sense?

 

I saw your other notes indicates the one bed room at union sold at 325k without parking... it seems a good buy at Pear?


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#45 Mike K.

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Posted 11 September 2019 - 10:57 AM

Jukebox's post-completion sales program is launching this weekend. The square foot prices range from low the $700.00's to high $800.00's. From an investment perspective, this is pretty good.


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#46 ovovov

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Posted 12 September 2019 - 03:16 PM

Jukebox's post-completion sales program is launching this weekend. The square foot prices range from low the $700.00's to high $800.00's. From an investment perspective, this is pretty good.

 

one bed without parking just rented out at $1,650... so if the pricing point is at 330k, the ROE would be 6%.

 

 

the real question is does 330k make the square foot price into low $700? Those units were sold out within the first week for the savvy ones.....

 

Just my 2 cents


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#47 Victoria Watcher

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Posted 12 September 2019 - 03:31 PM

one bed without parking just rented out at $1,650... so if the pricing point is at 330k, the ROE would be 6%

 

 

 

 

roe (i?) before appreciation though?



#48 Mike K.

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Posted 12 September 2019 - 04:39 PM

Everyone’s situation is different. It all depends on how much of a down payment you can put down, your mortgage rate and a specific unit’s strata fees. Two buyers purchasing the same square footage etc can have very different returns.

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#49 IPH

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Posted 14 September 2019 - 09:00 AM

Good point Mike. Property taxes and maintenance/repairs also impact your return. your cap rate (NOI/investment cost) x 100)is a much better assessment of return and value on a rental property.

#50 rjag

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Posted 14 September 2019 - 03:54 PM

Jukebox's post-completion sales program is launching this weekend. The square foot prices range from low the $700.00's to high $800.00's. From an investment perspective, this is pretty good.

 

Went through Jukebox today. Looked at 2 units on the 9th floor, 1 on the 7th and 1 on the 4th. All I can say is no room to swing a cat, I couldnt imagine them being for more than 1 person, they are really small. The Penthouse corner you couldnt open the bathroom door all the way without hitting the toilet bowl and if you are standing by the sink you literally have to back up beside the toilet then angle yourself out or nearly step into the shower stall...

 

Lots of folks there and I'm sure they will have sales but we heard folks commenting at how small and poorly designed they are.

 

I dont think this building will wear well. Should have reduced the number of units by 4 per floor and added the space to the others.


Edited by rjag, 14 September 2019 - 03:55 PM.


#51 Victoria Watcher

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Posted 14 September 2019 - 06:31 PM

i'm not sure about "poor design".  when a building with small suites like this is built a lot of thought goes into how the plumbing (drains) has to work that's the trickiest thing.  they have probably done the best they can.  the results are what they are.  ~40 less suites as you suggest would not have been very good in keeping prices down.

 

so they have to design it to keep walls together where there are plumbing drains then deal with all the other stuff like firewalls and stairwells and elevator shaft etc.  the result is the occasional interior look that does not seem "designed well".  but that's because they had no choice but to put the kitchen or bathroom where they did.  including placements of the toilet and sinks and tubs and laundry.


Edited by Victoria Watcher, 14 September 2019 - 06:36 PM.

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#52 rjag

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Posted 14 September 2019 - 07:39 PM

I agree, its always a challenge and there has to be compromise. But overhearing the comments today our observation wasnt unique. They have to cram so much into ever shrinking space, but really for $540k I would be shopping around


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#53 Victoria Watcher

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Posted 14 September 2019 - 07:47 PM

electricity incoming water exiting kitchen and laundry vents or incoming gas feed we all force along.   but for whatever reason we still rely on plain old gravity for our wastewater exit from the premises.  


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#54 Matt R.

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Posted 14 September 2019 - 09:42 PM

Lots of people use pumps to get to grade.

Matt.

#55 NinVic

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Posted 15 September 2019 - 11:41 AM

one bed without parking just rented out at $1,650... so if the pricing point is at 330k, the ROE would be 6%.

 

 

the real question is does 330k make the square foot price into low $700? Those units were sold out within the first week for the savvy ones.....

 

Just my 2 cents

Umm no.. You need to deduct expenses but NOT mortgage.    No idea what strata fees, property taxes might run but then also need a bit of maintenance (even if it is new, for long term budgeting and owners insurance.  I'll bet 25% of the rent goes to expenses.  Which would make unlevered return around 4.5% ish.  (which is the "cap rate").



#56 Banksy

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Posted 15 September 2019 - 12:00 PM

I went yesterday and overheard some people making the same tired jokes and acting out over embellished bewilderment that a 350 square foot condo wasnt a 1500 square foot condo and that $300k should buy you $900k of housing blah blah blah. I told one couple that you wouldn't buy a sedan then complain its not a truck. They got it and kept their comments to themselves.

 

Just accept small condos for what they are and accept that some buyers need to start somewhere in an expensiv emarket and that a small unit is their starting point.



#57 Mike K.

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Posted 15 September 2019 - 12:18 PM

I've been in studio apartments built in the 1960's. These modern units are much more practical/livable than their counterparts from earlier generations. They are indeed small but that's also the point; you have the rest of the city at your fingertips.

 

There were two studios on my building's floor and both were lived in by couples. They said the size wasn't as much of an issue and the plan was to eventually move on up on the housing ladder.


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#58 LJ

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Posted 15 September 2019 - 07:51 PM

Umm no.. You need to deduct expenses but NOT mortgage.    No idea what strata fees, property taxes might run but then also need a bit of maintenance (even if it is new, for long term budgeting and owners insurance.  I'll bet 25% of the rent goes to expenses.  Which would make unlevered return around 4.5% ish.  (which is the "cap rate").

You're saying you can't deduct mortgage interest on a rental property?


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#59 IPH

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Posted 16 September 2019 - 08:47 AM

You can deduct it on your taxes but it is a "financing" expense, not an "operating" expense. So it is not used to calculate your NOI and therefore is not part of the cap rate calculation. 


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#60 lanforod

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Posted 16 September 2019 - 01:42 PM

You can deduct it on your taxes but it is a "financing" expense, not an "operating" expense. So it is not used to calculate your NOI and therefore is not part of the cap rate calculation. 

 

This is true. I'll note that the OP was referring to ROE (I think he meant ROI). Financing expenses would normally be included in a ROI calculation. ROI will vary though, as it depends on your financing terms.

 

What's the average cap rate in downtown Victoria these days? I imagine its pretty low. 3.5%?


Edited by lanforod, 16 September 2019 - 01:42 PM.


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