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Baby, we got a bubble!?

aiekon said:
I am currently renting out a 1+1 unit at 21 Nelson and once we move into a pre-con townhouse in Leslieville we will likely be renting out our current 1+1 unit at 8 Charlotte. Is this the right financial strategy though? E.g. Rent them out or sell them? What worries me is the number of units that have just hit or will be hitting the market very shortly. Between the two properties there are literally thousands of units that are now or will be taking occupancy (studio, bond, pinnacle, cinema, peter St, king charlotte, etc.) and this worries me from both a rent them out or even sell them perspective.

So, is it best to hold on to them or should we perhaps look into selling in early 2016? Two years ago it took me less than 24 hours to find a tenant for my furnished 1+1 unit at 21 Nelson. Now, it took just over two months with zero increase to the rent. I can already feel with all the units out there available, that it's harder to find tenants...
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21 Nelson is really showing it's wear and tear. The building has seen better days. After all it was one of this first in the entertainment district. 8 Charlotte should be fine people do like that building. There is a lot of inventory coming onto the market in this area but it all gets absorbed spring/summer.
 
RZ12 said:
21 Nelson is really showing it's wear and tear. The building has seen better days. After all it was one of this first in the entertainment district. 8 Charlotte should be fine people do like that building. There is a lot of inventory coming onto the market in this area but it all gets absorbed spring/summer.
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Agree here. 21 Nelson may be a problem (luckily it's close to the subway). 8 Charlotte you should have no issue with even though I think it's overpriced. It's still a popular building and has all of the popular finishes.

I do find it's taking longer to rent out places but I have never had trouble. 2 months is a long time, though.
 
Variable rate mortgages have a very good chance of being less than 2 percent if the Bank of Canada cuts rates again in March as most have speculated they will.

As a side note, Canadian $ confidence is deteriorating. The first time in many years the Cdn $ fell below the 80 cts threshold.

Also to note, Goldman Sachs came out yesterday with their Oil projection pegged at $40 a barrel for the first half of 2015, good at the pumps, but not good for the economic wheel.
 
I don't think it matters if oil rises or falls. Or if condo prices rise or fall. Clearly most locals prefer to rent (condos, apts) rather than own, so how does it impact real Canadians?

Those in for a real shock may be the ones living in those million dollar plus shacks ... from Woodbridge to Leslieville.

I repeat, the only thing that will impact real estate is the stock market. 50/200 bearish cross happening and down it goes.:)
 
aiekon said:
So, is it best to hold on to them or should we perhaps look into selling in early 2016? Two years ago it took me less than 24 hours to find a tenant for my furnished 1+1 unit at 21 Nelson. Now, it took just over two months with zero increase to the rent. I can already feel with all the units out there available, that it's harder to find tenants...
Click to expand...

From my little inside knowledge of rental market, rental market is going to get even tougher going forward.

Titles to the units in AURA lower corporations will be transferred to the purchasers starting February 18th. Purchaser will be free to list on MLS units for sale/rent. Then, units from other developments will be coming in the market as well. Watch for a flood of units coming in the market. Already there have been quite a number of AURA units for rent on Kijiji -- no takers.
 
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KA1 said:
From my little inside knowledge of rental market, rental market is going to get even tougher going forward.

Titles to the units in AURA lower corporations will be transferred to the purchasers starting February 18th. Purchaser will be free to list on MLS units for sale/rent. Then, units from other developments will be coming in the market as well. Watch for a flood of units coming in the market. Already there have been quite a number of AURA units for rent on Kijiji -- no takers.
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Problem with kijiji is we only see what's available. We don't see what's getting rented/sold.

Aura doe shave a LOT of units, though. It's like 2-3 buildings in one so it will have a lot more vacancies than the average condo.

I fear for the people who bought in the last 3-4 years. They will make nothing and since they bought so high, they'll be forced to price the condos at a rate that is unaffordable for a large segment of buyers.
 
The Well Project suppose to launch this spring and that is a massive project with expected over 1,500 units. Minto Westside isn't selling too bad. 12,000 does sound about right.
 
RZ12 said:
21 Nelson is really showing it's wear and tear. The building has seen better days. After all it was one of this first in the entertainment district. 8 Charlotte should be fine people do like that building. There is a lot of inventory coming onto the market in this area but it all gets absorbed spring/summer.
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Isn't 21 Nelson like 5 years old at most? :confused:
 
RZ12 said:
Crazy eh how fast these age. Everytime I show this building it feels closer to 10 years +.
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Going to be a lot of bag holders in a few years when these buildings can't fetch premium rents and maintenance fees and special assessments skyrocket. That's without even considering how unlivable some layouts are and the general lack of quality.
 
Migos said:
Going to be a lot of bag holders in a few years when these buildings can't fetch premium rents and maintenance fees and special assessments skyrocket. That's without even considering how unlivable some layouts are and the general lack of quality.
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Near the subway. Will always be a plus. People that are buying into here now are more end users and not investors. Investors slowly started selling 2 years ago and got out of the building and moved on. Awful layouts are everywhere they actually have some great layouts. Specially in the 126 Simcoe building. The general crowd of this building is young professionals from the business district. Walking distance ++
 
RZ12 said:
Near the subway. Will always be a plus. People that are buying into here now are more end users and not investors. Investors slowly started selling 2 years ago and got out of the building and moved on. Awful layouts are everywhere they actually have some great layouts. Specially in the 126 Simcoe building. The general crowd of this building is young professionals from the business district. Walking distance ++
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Yes I've been banking on that the building is close to the subways and the unit layouts are actually quite good. My 1+1 has a proper den that's roughly 7'5"X11". The exterior of boutique ufortunately looks dated, but the interior lobby and rooftop party room is quite nice. TheBoard has been pretty good with contributions to the reserve fund and there are rarely any buildig-related issues so I'm not so worried about special assessments or the building becoming run down. My concern is that people always want shiny and new, and 5 years old is already considered 'dated' and there the competitiveness isn't there. It'll be worse when studio takes occupancy since it'll be an immediate neighbour.
 
aiekon said:
I am currently renting out a 1+1 unit at 21 Nelson and once we move into a pre-con townhouse in Leslieville we will likely be renting out our current 1+1 unit at 8 Charlotte. Is this the right financial strategy though? E.g. Rent them out or sell them? What worries me is the number of units that have just hit or will be hitting the market very shortly. Between the two properties there are literally thousands of units that are now or will be taking occupancy (studio, bond, pinnacle, cinema, peter St, king charlotte, etc.) and this worries me from both a rent them out or even sell them perspective.

So, is it best to hold on to them or should we perhaps look into selling in early 2016? Two years ago it took me less than 24 hours to find a tenant for my furnished 1+1 unit at 21 Nelson. Now, it took just over two months with zero increase to the rent. I can already feel with all the units out there available, that it's harder to find tenants...
Click to expand...

aiekon said:
Yes I've been banking on that the building is close to the subways and the unit layouts are actually quite good. My 1+1 has a proper den that's roughly 7'5"X11". The exterior of boutique ufortunately looks dated, but the interior lobby and rooftop party room is quite nice. TheBoard has been pretty good with contributions to the reserve fund and there are rarely any buildig-related issues so I'm not so worried about special assessments or the building becoming run down. My concern is that people always want shiny and new, and 5 years old is already considered 'dated' and there the competitiveness isn't there. It'll be worse when studio takes occupancy since it'll be an immediate neighbour.
Click to expand...


one main obstacle is the realtor fees and capital gains; other issues are your monthly costs vs rents, can you carry the costs for 3 properties, etc.
PM me if you want to discuss further.
 
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