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  1. #41
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    OP here is my personal take (obviously there are landlords renting out every type of bulding out there and doing all kinds of other things for investment with them, but this is my observations):

    I would never consider a 1 bedroom condo. 2 bedrooms for an investment or dont bother. 1 bedroom with a den that is basically a bedroom without a window is worth considering though.

    downtown condos: are a terrible investment IMO for rentals, especially new ones if you're looking to rent. The old cheap ones that catch your eye likely have huge issues iwth the reserve fund and management, and anything newer costs a bloody fortune. You're going to buy a condo for twice the price you can get one in the burbs that will rent for a bit more. You may think, oh ya, but in 20 years it will have appreciated.... well, I can tell you that is likely not going to happen any more than any other condo. There is no shortage of old condos downtown that are worth the square root of jack shit compared to what builders are trying to scam people into paying for new ones. The only way I'd invest in one of these was to flip as a new construction, but I haven't seen one yet that the dollars made sense on. I have yet to find one that caught my eye to use as a rental

    Concrete condos in the burbs: Don't make any sense to me either; too expensive new, so the return isn't as good on every dollar you invest... but theoretically they should attract better renters and have less headaches... (but they cost the same as a townhouse...). these things are often dubbed 'luxury' condos too, whatever the hell that means, and have crazy condo fees that dont benefit you at all as a landlord. again, like downtown condos I haven't seen one that made sense to flip as a new construction either.

    Stick Condos in the burbs: are technically terrible investments IMO too. They are great to flip when new (done that, made good money), but in the long term it is all downhill for a condo like this. Holding it for appreciation is not the goal here IMO. The goal is to have someone else pay off your mortgage over 25-30 years with lower risk. I said lower risk only because you do not have to deal with a yard, or maintenance on the outside of the building, or worry about anything getting trashed other than drywall, floors, and appliances. Lower risk also because they are cheaper to carry if it's not renting and easy enough to rent out.

    IMO they are the first property in a market likely to be cashflow positive.

    townhouses/duplexes: the perk here is hopefully you do not have to deal with some asshole condo board telling you what to do or changing the rules for renting on you. Condo fees are often dirt cheap also. I have a townhouse and i forget the details but the condo fees are just under $100 a month I think. The downside to me is you still do not 'own' your chunk of land and they will not appreciate very much. You ever seen a 30 year old townhouse that you wanted to live in? lol, I haven't.

    detached garage homes: around here in edmonton you can get into one of these new for the price of a duplex, so IMO they make great rentals since they're sitting on their own land with no other asshole attached to your property, it'll appreciate better. But, your average renter doesn't care about maintaining anything, so you need to spend more time and effort. you're now responsible for the entire property by yourself too, not being lumped together with others.

    attached garage homes: depends on the area, but anything new seems like a bad idea as a rental. Too expensive, too new, too much risk. You're rolling the dice and it'll likely land on your renter will put 10 years worth of wear (from not giving a shit or being a complete moron who was used to living in a mud hut, or their parents house) on your property in the span of a year. You're likely to get families living or more well off people living in these however, which usually is decent.

    split upstair/downstair homes: By far the biggest headache. Also by far the biggest headache for landlord/tenant dispute centers. Non stop bitching about the dude upstairs, or downstairs, or other such bullshit. Cashflow postitive and should appreciate acceptably.


    Personally I own a stick built condo and a townhouse as rentals right now, but my next one I add will probably be a detached garage house. Never say never, but I will likely never own a rental property that is a condo downtown, a concrete condo, or a duplex. Ideally I'd like to own a bunch of houses because dealing with renters can become a full time job.

    ALso, I have a property management firm managing my townhouse (its in BC, which is an awesome place to be a landlord right now), and my wife and me manage our local condo. If you find a good property management firm, they're awesome, but I'm sure most of those big firms out there are complete bullshit.


    Originally posted by Buster
    As an asset class, RE generally just follows inflation, over a long enough timeline.
    Past performance is never an indication of future return. Detroit sure didn't follow national inflation rates, nor did vancouver.... or sanfransisco.
    Last edited by zhao; 02-04-2017 at 04:33 PM.

  2. #42
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    Originally posted by zhao



    Past performance is never an indication of future return. Detroit sure didn't follow national inflation rates, nor did vancouver.... or sanfransisco.
    Indeed. I meant "historically" but should have said so.

  3. #43
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    Originally posted by mazdavirgin


    1980-1990 almost ten years of stagnation/no appreciation, inflation adjust those values and it's a loss until almost 1999. Do you think that will never happen again seeing that graph? Or do you just want to pick the recent history which by any means seems abnormal.
    The 03-07 run is basically great natural gas market combined with historically low interest rate thanks to 9/11, Iraq invasion.

    Ever since then, even with the $100+ oil run of 11-14 didn't repeat that kind of performance.

    I think it'll take Russia invasion and take back all the countries east of Germany to repeat the performance of 03-07.

    Yeah, investment property is all about inflation protection, never great returns. But it will never fold up like Nortel either.

  4. #44
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    Originally posted by Xtrema


    The 03-07 run is basically great natural gas market combined with historically low interest rate thanks to 9/11, Iraq invasion.

    Ever since then, even with the $100+ oil run of 11-14 didn't repeat that kind of performance.

    I think it'll take Russia invasion and take back all the countries east of Germany to repeat the performance of 03-07.

    Yeah, investment property is all about inflation protection, never great returns. But it will never fold up like Nortel either.
    Also lots of the resource sector's growth in the 2000's was China which had unprecedented growth. It's now transitioning from manufacturing to a service based economy like other developed economies. Not sure if India can take up the slack.

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    Originally posted by holden
    Not sure if India can take up the slack.
    No, I don't think so. They had all the making to turn into another China but somehow they can't perform the same accelerated growth.

    I think it is all about stable government.

  6. #46
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    Originally posted by holden
    Not sure if India can take up the slack.
    Originally posted by Xtrema
    No, I don't think so. They had all the making to turn into another China but somehow they can't perform the same accelerated growth.

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