Morrison-Draper Redevelopment: 3 towers & lowrise| 46-65m |14-20f | U/C

[kwoldtimer]

How much have they dropped asking prices so far? I wonder how low they will need to go to generate some sales?

[J.OT13]

Are these much more affordable than other condos in the city?

[1overcosc]

Originally Posted by J.OT13

Are these much more affordable than other condos in the city?

Condos in Ottawa are very overpriced. $200k is now considered 'cheap'. Call me a fearmongerer, but I'm very concerned that housing prices are getting so high that soon only the rich will be able to afford homes and all normal people will be reduced to renters filling the pocketbooks of investors. Something needs to be done to lower housing prices, and fast.

[Postmaster]

As a habitual renovator/seller, I would like to see house prices go down a bit. I hear they are forecasting a fall this year. I'm not greedy enough to think 6-7% increases every year are good for everyone. Real nice when you flip 3 or 4 houses a year (i dont), but at some point the buyers herd thins out. Most of my friends are 1 or 2 years away from 30 and most still rent. It's pretty crazy in Ottawa.

[S-Man]

The rents are too damn high!

No, seriously - they are.

[canabiz]

Originally Posted by kwoldtimer

How much have they dropped asking prices so far? I wonder how low they will need to go to generate some sales?

I did not go in to grab the latest price list but I believe they have dropped prices by at least $20K + adding more upgrades and features for good measures.

Website has more details http://qwcrossing.com/price-list-stan.html

I like the area, having lived in Parkway Park (across from Centrepointe) for a number of years. It's close to Bayshore shopping/hospital/the major highways, Barrhaven/Kanata and a 20 minute drive to downtown but the downside is it borders Draper/Morrison which is not exactly a desirable part of town, to put it diplomatically.

Price is obviously another issue and I think they are/will be/should be addressing that as GreatWise (the builder) previously partnered with another boutique realty firm (it could be PMA but I don't remember for sure) before going with Marnie Bennett because the project just didn't seem to go anywhere.

[canabiz]

Originally Posted by J.OT13

Are these much more affordable than other condos in the city?

If you are curious about the price for these condos, Marnie Bennet has several of them listed on her website as well as MLS. Here is an example, 1 bed & 1 bath for $208K

http://www.realtor.ca/PropertyDetail...Key=1048187052

Here's the most expensive of the bunch, 2 beds & 2 baths & $347 monthly condo fee for $420K

http://www.realtor.ca/PropertyDetail...Key=1866789894

You be the judge if this is a deal :-)

[RTWAP]

Originally Posted by 1overcosc

Condos in Ottawa are very overpriced. $200k is now considered 'cheap'. Call me a fearmongerer, but I'm very concerned that housing prices are getting so high that soon only the rich will be able to afford homes and all normal people will be reduced to renters filling the pocketbooks of investors. Something needs to be done to lower housing prices, and fast.

If investors can buy and make a profit from renters then renters should be able to afford to buy.

[McC]

This is true, but with at least one important caveat: saving for a down payment is extremely difficult, as housing prices in Ottawa have been increasing at a much faster rate than the returns on just about any type of investment over the past five years or so. this means that until you find a way on to that escalator, everything just keeps getting further out of reach; even with historic-low interest rates. (Flahery's re-tightening of the mortgage rules that he himself had relaxed early in his tenure, doesn't help new first-time buyers any, either).

[canabiz]

Originally Posted by McC

This is true, but with at least one important caveat: saving for a down payment is extremely difficult, as housing prices in Ottawa have been increasing at a much faster rate than the returns on just about any type of investment over the past five years or so. this means that until you find a way on to that escalator, everything just keeps getting further out of reach; even with historic-low interest rates. (Flahery's re-tightening of the mortgage rules that he himself had relaxed early in his tenure, doesn't help new first-time buyers any, either).

I agree with you for the most part but I just want to add that if you don't have the savings for downpayment, you can look at other avenues, if you want to get into the market and stop paying the mortgages of your landlords and making them rich. Some ideas include

- Cashing out your RRSP/TFSA
- Borrowing money from parents/relatives
- Looking at bank loans for downpayment (a popular option these days is 0% balance transfers from MBNA or Capital One)

Again these options are not for everybody and they all depend on your financial situations but all I am saying is sometimes you have to think outside the box to get to where you want to go and not simply rely on the traditional avenues.

And no when you are starting out for the first time, you don't have to jump straight into 400K+ detached home. Start small with a terrace home/stacked townhouse (5% of $200K is $10K down) where the builders are currently offering all kind of incentives and discounts and work your way up.

[McC]

Your first suggestion for people who don't have enough savings is to cash in their savings? RRSPs and TFSA are useful savings tools (that's what the "s" stands for after all), but they're not magic! It's been pretty tough to find investment vehicles that are consistently paying better returns year over year than the 5-8% or more that Ottawa housing price have been increasing for the past several years. Irrespective of whether your savings are tax sheltered or not, if the dollar you saved last year (or your parents/relatives saved last year) is today only worth two or three cents more, while a dollar's worth of housing last year now costs closer to a dollar-ten, your goal of a down payment is now further away rather than closer. There are ways around this (get pay raises above the rate of inflation, save harder, borrow more) but none of these change the fundamental challenge I described.

[canabiz]

Originally Posted by McC

Your first suggestion for people who don't have enough savings is to cash in their savings? RRSPs and TFSA are useful savings tools (that's what the "s" stands for after all), but they're not magic! It's been pretty tough to find investment vehicles that are consistently paying better returns year over year than the 5-8% or more that Ottawa housing price have been increasing for the past several years. Irrespective of whether your savings are tax sheltered or not, if the dollar you saved last year (or your parents/relatives saved last year) is today only worth two or three cents more, while a dollar's worth of housing last year now costs closer to a dollar-ten, your goal of a down payment is now further away rather than closer. There are ways around this (get pay raises above the rate of inflation, save harder, borrow more) but none of these change the fundamental challenge I described.

I stated I agreed with you for the most part. I simply wanted to add my 2 cents that if people want to find down-payment for their first home (and again I am talking about a manageable amount like $10K+ for a $200K+ stacked/terrace town), there are ways to go about doing so.

If people choose to continue renting and dishing out the tired old excuse *I don't have enough down* without looking at available options then that is their prerogative and we will not be able to help them.

[Buggys]

Just to hit that point home, here are some more reasons why a lot of people are out of the running for starting to own a property due to lack of liquid assets for a down payment.

Lots of people simply live paycheck to paycheck with lots of other debt to pay already:
* student debt
* credit card debt

And not everybody has such generous relatives willing to lend large sums of money.

Interest rates on downpayment loans must be scary high, otherwise how could the banks make their money?

Also, I guess those people don't want to pay agents' commmission:
* when they buy (yes, technically the seller pays both buyer & seller agents, but that money comes from the buyer)
* when they move to their dream McMansion

And perhaps they want to save $ faster by:
* renting a very cheap place
* not having to pay property tax

Oh, and the increase of borrowing interest rates rising again might be scaring some people out of the market. Nobody wants to pay the banks double to triple the purchase price for a home.

[canabiz]

I happened to drive by this area earlier today and there was a big hole in the ground but not much else. Will be curious to find out what the % of sold is and whether they need to get 75% (or thereabout) sold (like high-rise condos) before they can start construction

[Uhuniau]

Originally Posted by canabiz

- Cashing out your RRSP/TFSA
- Borrowing money from parents/relatives
- Looking at bank loans for downpayment (a popular option these days is 0% balance transfers from MBNA or Capital One)

Dunno what the rules are now, but when I bought, your down-payment had to be cash on the nail. No borrowings, not even from family members. (Straight-up gifts of cash are fine.)

[canabiz]

Originally Posted by Uhuniau

Dunno what the rules are now, but when I bought, your down-payment had to be cash on the nail. No borrowings, not even from family members. (Straight-up gifts of cash are fine.)

When did you buy? There are certainly more options now to come up with downpayment.

[Uhuniau]

Originally Posted by canabiz

When did you buy? There are certainly more options now to come up with downpayment.

2006. As far as I know, banks still will frown on anyone who makes their down-payment with other, non-mortgage debt.

If they aren't, then the bursting of the housing bubble is going to be brutal.

[canabiz]

Originally Posted by Uhuniau

2006. As far as I know, banks still will frown on anyone who makes their down-payment with other, non-mortgage debt.

If they aren't, then the bursting of the housing bubble is going to be brutal.

Yes things have certainly changed since and there are more options now Uhuniau.

Back to the original topic: This place is still a hole in the ground, nothing is moving. They need to reduce prices to get sales going.

[rocketphish]

The underground parking garage is well underway and the concrete has almost reached ground level.

[canabiz]

Just got an email from Marnie Bennett and Co. offering up to $14K savings in certain units.