Where to buy as Investment?

[DChan88]

Hi guys, debating on where to buy for an investment.

Amazing Brentwood Tower 3? Station Square? Anywhere else?

Station Square is almost sold out, not many units left.

Amazing Brentwood Strata fees are $.48 sq/ft which would cost me almost $400 for a 2 bed.

Any upcoming projects I should wait for or any other suggestions as to where would be a good investment to resale and to rent out?

Thanks

[jlousa]

Don't worry too much about what the initial strata fees are, they will change a bit over the first 2 yrs and end up roughly the same given equal amenities.
If you are strictly looking at it for cash flow then avoid 2bds, you get more bang for your buck on the cheapest 1bd you can get. The price difference on a good unit and a crappy one is significate but the difference you can get on the rent isn't that much. Also do not expect to be cash flow positive unless you are going 35% down or more.
As for area, buy something close to where you live, you know the area better and will have an easier time selling the location to renters, also makes your life easier when you need to deal with issues.

[DChan88]

Originally Posted by jlousa

Don't worry too much about what the initial strata fees are, they will change a bit over the first 2 yrs and end up roughly the same given equal amenities.
If you are strictly looking at it for cash flow then avoid 2bds, you get more bang for your buck on the cheapest 1bd you can get. The price difference on a good unit and a crappy one is significate but the difference you can get on the rent isn't that much. Also do not expect to be cash flow positive unless you are going 35% down or more.
As for area, buy something close to where you live, you know the area better and will have an easier time selling the location to renters, also makes your life easier when you need to deal with issues.

Thanks, I'm about 15 minutes away from metro and 25 from brentwood. I plan on living in it for at least a year then perhaps renting it out or selling it. Is station square third tower going to be on sale anytime soon? Where do you see a bigger return on investment? Brentwood compared to metro?

[TourOdeon]

If I had to buy one today, I'd be waiting for the Lougheed Town Centre project. The reason is because there are so many supply of new condos there at the moment. So, I am quite confident you will be able to scoop up some really great deals.

[jsbertram]

I'm waiting for the inevitable rise in interest rates.

The US Fed has indicated they want to raise their rates by 1% annually until they get back to the normal 6% or 7% range by 2020.
When the US Fed does start raising rates, Bank of Canada has to do the same to compete.

Some people are already stretched thin paying the mortgage and other monthly expenses.

There was a report released last week that stated upwards of 20% of existing mortgage-holders couldn't afford a $400-$500 monthly increase that will happen when rates start rising and their 5-year mortgage rate resets to the higher interest rates.

Higher interest rates will lead to defaults and lower property values.

I wouldn't want to be PM or Finance Minster for the rest of this decade while the housing bubbles are popping.

[WarrenC12]

Originally Posted by jsbertram

I'm waiting for the inevitable rise in interest rates.

The US Fed has indicated they want to raise their rates by 1% annually until they get back to the normal 6% or 7% range by 2020.
When the US Fed does start raising rates, Bank of Canada has to do the same to compete.

With all due respect, they've been saying that for a while. At the beginning of this year they said they would raise the rates in 2015, now it looks like they won't. The market loves low rates, and innovation economies like the US benefit from them. I don't see them going up anything to anything near that level in the foreseeable future.

Originally Posted by jsbertram

I wouldn't want to be PM or Finance Minster for the rest of this decade while the housing bubbles are popping.

I agree with your points on affordability, but that bit about the impending bubble popping could have been a direct quote from "experts" in 2005.

[quobobo]

If I were interested in renting out a condo, I would do it somewhere other than the city with the highest price-to-rent ratio in Canada.

[WugOverlord]

Originally Posted by quobobo

If I were interested in renting out a condo, I would do it somewhere other than the city with the highest price-to-rent ratio in Canada.

What about doing it in the city with some of the lowest rental vacancy rates in Canada?https://www03.cmhc-schl.gc.ca/catalo...=1444666367512

[MCsq/MooChaCha]

Originally Posted by TourOdeon

If I had to buy one today, I'd be waiting for the Lougheed Town Centre project. The reason is because there are so many supply of new condos there at the moment. So, I am quite confident you will be able to scoop up some really great deals.

i agree Lougheed will be the next rising star. Price should be cheaper than Metrotown, and even Brentwood. If you can afford it, buy a cheapest 2 bedroom and 2 bath. Your potential tenant base will be larger: couple, 2 people sharing, even single who wants more space. But it should be somewhere close enough to Lougheed sky train so that you can capture potential tenants from New West, Coquitlam, tri-city, even downtown.

[DChan88]

Originally Posted by jsbertram

I'm waiting for the inevitable rise in interest rates.

The US Fed has indicated they want to raise their rates by 1% annually until they get back to the normal 6% or 7% range by 2020.
When the US Fed does start raising rates, Bank of Canada has to do the same to compete.

Some people are already stretched thin paying the mortgage and other monthly expenses.

There was a report released last week that stated upwards of 20% of existing mortgage-holders couldn't afford a $400-$500 monthly increase that will happen when rates start rising and their 5-year mortgage rate resets to the higher interest rates.

Higher interest rates will lead to defaults and lower property values.

I wouldn't want to be PM or Finance Minster for the rest of this decade while the housing bubbles are popping.

I also heard about this yesterday actually from my aunt who lives in the states. Supposedly they're going to raise the interest by year end.

You guys think lougheed will be a better project than brentwood or metro? Isn't brentwood supposed to have a luxury mall with the likes of Chanel, lv etc? I heard it was supposed to be even better than metro.

[Spork]

Where are all of these renters that are buying LV and Chanel?

[Alex Mackinnon]

Or you could just invest in the stock market and not have to pay income tax on all income produced...

[Klazu]

I can recall it only being wished that there would be real luxury brands going in the Amazing Brentwood mall. I don't recall it ever being confirmed or claimed anywhere.

In anycase, I don't think it is any reason to be buying in a specific location. You cannot eat a LV handbag.

[TourOdeon]

How's the sales on Brentwood Three? Are a lot of units still available?

Other than Trattoria, it's still unclear what other retails will be at Brentwood.

[DChan88]

Originally Posted by TourOdeon

How's the sales on Brentwood Three? Are a lot of units still available?

Other than Trattoria, it's still unclear what other retails will be at Brentwood.

Not on sale yet. Will be soon to the general public in about 2 weeks.

No no u cannot eat a lv bag but it would be nice to live around a place that has a high end luxury retailers well for me at least

[jsbertram]

Originally Posted by WarrenC12

With all due respect, they've been saying that for a while. At the beginning of this year they said they would raise the rates in 2015, now it looks like they won't. The market loves low rates, and innovation economies like the US benefit from them. I don't see them going up anything to anything near that level in the foreseeable future.



I agree with your points on affordability, but that bit about the impending bubble popping could have been a direct quote from "experts" in 2005.

And by 2008 the global finance system was stalled and most housing markets in the US collapsed. Even today, most US markets haven't recovered to their pre-crash prices.

Vancouver & Toronto are skewing the national stats, and when their bubbles pop it will be painful across the country. Calgary used to be one of the stats-skewing cities, but with the oil price collapse they are now the canary in the coal-mine for Vancouver & Toronto.

here's an article from 2012:
http://leithwheelerblog.sitecm.com/u...ousing-bubble/

Its almost 3 years later and the bubble peak will be steeper in Canada, so the inevitable collapse will be steeper and more painful.

And the triggers will be events that Canada has no control over (like oil prices in the last few years) that "no-one saw this coming!"

[MCsq/MooChaCha]

Originally Posted by jsbertram

And by 2008 the global finance system was stalled and most housing markets in the US collapsed. Even today, most US markets haven't recovered to their pre-crash prices.

Vancouver & Toronto are skewing the national stats, and when their bubbles pop it will be painful across the country. Calgary used to be one of the stats-skewing cities, but with the oil price collapse they are now the canary in the coal-mine for Vancouver & Toronto.

here's an article from 2012:
http://leithwheelerblog.sitecm.com/u...ousing-bubble/

Its almost 3 years later and the bubble peak will be steeper in Canada, so the inevitable collapse will be steeper and more painful.

And the triggers will be events that Canada has no control over (like oil prices in the last few years) that "no-one saw this coming!"

i dont mind to see this happen because I have been hopelessly waiting in the side line. Too scary to jump in, and helplessly watching the train moving further and further away.

[Pinion]

Originally Posted by MCsq/MooChaCha

i dont mind to see this happen because I have been hopelessly waiting in the side line. Too scary to jump in, and helplessly watching the train moving further and further away.

I was tired of waiting in 2005 and bought a condo in an up and coming area that is now arguably reaching its potential and haven't seen any increase in value. Unless you can afford a single family home, don't bother.

[TourOdeon]

Cineplex to build The Rec Room in Calgary's Deerfoot City
New 50,000-sqft facility geared for families and corporate events.

A rendering of The Rec Room, which is set to open in Dec. 2016 at Deerfoot City in Calgary.

Canadian company Cineplex Entertainment announced Tuesday it plans to build a massive entertainment centre in northeast Calgary that includes such things as restaurants, live entertainment stage and shuffleboard and bocce sites.
Called The Rec Room, the two-storey, 50,000-sqft complex is set to open in Dec. 2016 in Deerfoot City, formerly known as Deerfoot Mall, according to a press release.
“The Rec Room is a social destination that brings together an incredible dining, amusement gaming and entertainment experience all under one roof,” said Pat Marshall, vice-president of communications and investor relations at Cineplex, in a press release.
"Cineplex is leveraging its industry-leading entertainment, amusement gaming, food & beverage, digital media and operational capabilities to bring an entirely new, technology-enhanced experience to the Calgary community.”

The facility is the second of its kind in Canada — Cineplex expects to open another Rec Room in Edmonton for spring 2016.
The facility is proposed to be gathering place for adults and families, while also serving corporate events and parties.
The Rec Room's features include amusement games, recreational activities like pool and ping pong, casual and upscale eateries, a bar, bocce ball courts on the facility’s patio, and an auditorium for comedy and musical acts.
“We're very pleased that Cineplex Entertainment has chosen our redevelopment of Deerfoot Mall into Destination: Deerfoot City as the location to build The Rec Room in Calgary,” said Darren Kwiatkowski, Executive Vice President of Shape Properties.
“The premier social and entertainment experience that The Rec Room will deliver is uniquely aligned with Shape’s vision for the property and the perfect anchor for Deerfoot City’s new restaurant and entertainment district.”
Construction of the site is slated for spring 2016, and Cineplex plans to open several more Rec Rooms across the country over the next few years.

http://m.metronews.ca/#/article/news...foot-city.html

The Cineplex Rec Room seems suitable for the Brentwood's Entertainment Plaza (Phase I) too

[Tetsuo]

I think the RecRoom would do well in Brentwood only if Rev's Bowling closes for redevelopment.