investing in New Brunswick

[Subwoofah]

Is this the next big boom city? I'm thinking of going to Saint John, NB and buying some rental property there. Anyone else doing the same?

[ScottysZ]

Why do you think that? Just curious if im missing something?

[88CRXGUY]

Maybe it because we never thought that Sask would have a boom, so I guess anything is possible.

[Subwoofah]

lots of jobs, HUGE oil refinery, proposed 2nd refinery, US is hungry for more oil and prefers Canada over most other nations, and lastly very cheap housing

[1boy]

Here's my quick 2 cents on NB:

I just went to MLS.ca and found a random listing for a duplex in Saint John:

http://www.mls.ca/PropertyDetails.as...ertyID=5921967

Interest rates are between 3.5-6.25% (in my opinion are pretty low and makes the properties there pretty affordable.)

Ref: http://www.canequity.com/mortgage_services.stm
-(I’m not sure how accurate the site is nor how up to date it is)

Anyways, according to the mls listing... lets just round the price of the home to 100k. Assuming you don't want to deal with CMHC, you put 25% down... which is a 25K investment.
You get a mortgage for 75k at let's say 6.25% (highest rate found on the referenced site) your monthly payments turns out to be: $494.75 on a 25yr amoritization.

The upper floor rents for 500 and the lower floor for 800... that means you net $1350/month

Minus property taxes and maintenance fee's (I'm just guessing a number around $300/month) you walk away with over $550 per month... that's a $6600/yr if it's rented out year round. (26.4% ROI!)

Being less optimistic and let's say you only get 8/12 months occupied you still end up with 4400/year +/- (cashflow) that alone is a 17.6% ROI… (and that's not even including possible appreaciation of the property or the principle you pay off your mortgage) which is huge- compared to mutual funds.
Unemployment rate as of Oct 07 is 5.1% which is still less than the national average at 6.1%... which means that there are jobs that are pulling more people into the area...
Ref: http://www.rbc.com/economics/market/pdf/citytrend.pdf
(calgary is at 3.2 or 3.1)
I’m not familiar with the economics there, so I wouldn’t know how much you would expect to gain/lose with respect to appreciation.
But by just looking at the possible cashflow alone your making 18% ROI… in that sense I think it’s definitely a good investment… unless you’re expecting Real estate in the area to drop by 7% anytime soon. But like you said you are expecting more oil refineries… so appreciation should be above inflation rate.

Looking at other properties… they all look pretty profitable.

All in all… Saint John’s NB looks pretty good place to me.

... could you maybe expand on why you think there will be more jobs, and what sources you are using about the oil refineries and such and such...
let me know. thanks,

sht, i just noticed
I forgot to include realtor fees... and I'm not sure what the laws is about renting over there... so that's something you should definitely look into if you are planning to put money in.

[Graham_A_M]

Originally posted by 88CRXGUY
Maybe it because we never thought that Sask would have a boom, so I guess anything is possible.

Yeah I'd put my money on Estevan first, I think it has potential to be Sask.'s "Fort Mac" but without the northern remote community associated problems.

[Jlude]

Originally posted by 1boy
[B]All in all… Saint John’s NB looks pretty good place to me.

I grew up in Saint John... It's a hole... I'm not just saying that because I grew up there... I'm sayint that because the weather is terrible (fog most of the summer) and the city is literally FULL of drugs... it's terrible.

However, there is a TON of work coming up... they're building another refinery (the first one was at one point the largest in North America), also there will be a new power plant being built.

I don't think that it's going to be a BOOM city...there will be steady work...

IMO... it's a good place to buy investment property (I've already purchased one), the amount of workers that are going to come into the city to build the refinery will be insane and the rental rates are gonna skyrocket.


If you have any questions about the city or anything, I'd be happy to answer them, doubt there's anyone else on beyond from SJ.

[Canmorite]

Originally posted by Subwoofah
Is this the next big boom city? I'm thinking of going to Saint John, NB and buying some rental property there. Anyone else doing the same?

West to East. Saskatchewan you're too late for if you want to get in at ground level. Maybe try Manitoba...

[The Cosworth]

Originally posted by 1boy
......
The upper floor rents for 500 and the lower floor for 800... that means you net $1350/month
...

IMO this is where your argument falls apart.

good lucking renting places for that much out there where unemployment is so high.

Those are average to high prices in Vernon and your basement suit is about $300.00 less than calgary prices. (I pay 925 in Bridgeland near the bridges development for an apartment on the top floor with a balcony that looks to the CT and Bankers hall)

I think you could rent the WHOLE house for 8 or 9, and then you have to make sure you go out and take care of the place.

[Tik-Tok]

Yeah, I wouldn't say it's going to be a boom city, it'll just employee everyone already there (in 6 month shifts of course, nobody in NB wants to work more than they have to to get their EI again)

[Jlude]

Originally posted by Tik-Tok
Yeah, I wouldn't say it's going to be a boom city, it'll just employee everyone already there (in 6 month shifts of course, nobody in NB wants to work more than they have to to get their EI again)

100% Correct sir.

[brucebanner]

Originally posted by Jlude
If you have any questions about the city or anything, I'd be happy to answer them, doubt there's anyone else on beyond from SJ.

I grew up in NS not in SJ NB but I have spent quite some time there as I have lived in Sussex NB for quite a while as well. So I should be able to shed some light on SJ as well..

[Subwoofah]

I'm buying a house this Jan... 5% tax should help right?

Oh and are there any good property managers to recommend?

[brucebanner]

Originally posted by Subwoofah
I'm buying a house this Jan... 5% tax should help right?

Oh and are there any good property managers to recommend?

http://lennyboudreau.point2agent.com...page_2510.html

Get in touch with Lenny, he would know the market real well, I know lots of people that have bought homes through him. I am sure he will be more then helpful with anything you need to know..

EDIT: Lenny is a real estate agent, but again I am sure he can help with anything you need to know.

[Jlude]

Originally posted by Subwoofah
I'm buying a house this Jan... 5% tax should help right?

Oh and are there any good property managers to recommend?

don't know any... just have family look after everything!

[Subwoofah]

\\\The oil company///
http://www.irvingoil.com/company/erock.asp

[Jlude]

Originally posted by Subwoofah

\\\The oil company///
http://www.irvingoil.com/company/erock.asp

Irving is brutal...

They own New Brunswick...

[Subwoofah]

Originally posted by 1boy

... could you maybe expand on why you think there will be more jobs, and what sources you are using about the oil refineries and such and such...
let me know. thanks,

lets just say i'm waiting for 2009-2010... and certain reports and maps to finish.

[1boy]

Originally posted by brendankharris



IMO this is where your argument falls apart.

good lucking renting places for that much out there where unemployment is so high.

Those are average to high prices in Vernon and your basement suit is about $300.00 less than calgary prices. (I pay 925 in Bridgeland near the bridges development for an apartment on the top floor with a balcony that looks to the CT and Bankers hall)

I think you could rent the WHOLE house for 8 or 9, and then you have to make sure you go out and take care of the place.

Like I said earlier, I got those numbers straight from the mls listing itself... if you check my post I referenced the mls listing. From the description it clearly says that the property is a Duplex and that the upstairs currently rents for $500 and lower unit rents for $850.

I didn't believe it at first either... before I saw this thread, I never even looked into NB. With that being said I don't know whether or not the economy will bring the values in the are up or down in the near future. But based on doing some quick and dirty research on mls.ca, the rent is actually pretty high and you can really profit from cashflow.

Every city is different, you can't compare the rent from one geographic area to the next. It just doesn't make sense.
In the end of the day it's not what you think the property its worth it's what the market thinks. And the best way to do that is just research I guess.

like this Triplex selling for $125,000...based on the description it's net income is $1877.

http://www.mls.ca/PropertyDetails.as...ertyID=6268880

if you put 25% down, your mortgage payment would be at most will be $620, depending on the interest rate.
Minus property tax and maintaining the property your still going to make a good return.

[ScottysZ]

Originally posted by 1boy

Every city is different, you can't compare the rent from one geographic area to the next. It just doesn't make sense.
In the end of the day it's not what you think the property its worth it's what the market thinks. And the best way to do that is just research I guess.

like this Triplex selling for $125,000...based on the description it's net income is $1877.

http://www.mls.ca/PropertyDetails.as...ertyID=6268880

if you put 25% down, your mortgage payment would be at most will be $620, depending on the interest rate.
Minus property tax and maintaining the property your still going to make a good return.

Sorry dude, but i dont believe that for a second. You might be just posting what youre seeing, but if it seems too good to be true, it probably is.