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  #341  
Old Posted Nov 3, 2010, 7:30 PM
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I found yeeg's house on google earth so I know exactly where he lives. When I win, I know exactly which door to go knocking on in Calgary to collect my $300.
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  #342  
Old Posted Nov 3, 2010, 8:00 PM
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The mortgage could actually increase your return on investment (ROI). For example if you were getting a 6% return on the price of the unit after expenses but excluding financing costs and you borrowed the money at 4%, you would make a better ROI. If you borrow $300K and had 100K equity, you would earn 6% on the $100K and 2% net on the $300K. This works out to a 12% ROI (your investment being $100K). Of course your risk is substantially increased.
One of the problems is that a $300,000 mortgage will carry a monthly pricetag of $1600 per month PI. Add Condo fee of $200 (low side), taxes of $100 per month and you are at $1900 per month as an expense. At a rental of $2500 per month, you will be left with $600 per month/ $7200 per year or 7.20% ROI. You must include your expenses as part of the ROI. Good luck with the rental rate.

Not sure how you get the extra 2% on the 300k as you arent investing the additional 300k in anything that will give you 6%. The bank has that money, not you.
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  #343  
Old Posted Nov 3, 2010, 9:45 PM
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I found yeeg's house on google earth so I know exactly where he lives. When I win, I know exactly which door to go knocking on in Calgary to collect my $300.
Maybe you can find that picture of me showing my a$$ on google street view.
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  #344  
Old Posted Nov 3, 2010, 11:29 PM
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One of the problems is that a $300,000 mortgage will carry a monthly pricetag of $1600 per month PI. Add Condo fee of $200 (low side), taxes of $100 per month and you are at $1900 per month as an expense. At a rental of $2500 per month, you will be left with $600 per month/ $7200 per year or 7.20% ROI. You must include your expenses as part of the ROI. Good luck with the rental rate.

Not sure how you get the extra 2% on the 300k as you arent investing the additional 300k in anything that will give you 6%. The bank has that money, not you.
The principal portion of the payment is not an expense. It is an increase in your equity. Principal payments do not reduce your ROI, they only reduce your cash flow. The amount you invested is only $100K so the well know investment principal of leverage means you get the the 2% differential on the portion you borrowed to include in your ROI.
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  #345  
Old Posted Nov 5, 2010, 5:43 PM
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Did anyone ever think that some of these units may be paid in full , there are moveups , also alot of rich people around the Regina area maybe looking for a nice place to live
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  #346  
Old Posted Nov 5, 2010, 6:38 PM
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Did anyone ever think that some of these units may be paid in full , there are moveups , also alot of rich people around the Regina area maybe looking for a nice place to live
Absolutely. There are condos in Regina that have sold for over $1 million, no mortgage. We were just illustrating how as an investment, this does not make a lot of sense based on current market rents in Regina. Investors are looking for values to rise.
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  #347  
Old Posted Nov 5, 2010, 9:43 PM
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As we speak, fencing is going up around the Plains Hotel and from what I hear demolishion is to commence this weekend.
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  #348  
Old Posted Nov 6, 2010, 2:52 AM
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As we speak, fencing is going up around the Plains Hotel and from what I hear demolishion is to commence this weekend.
Thanks for the imfo oh so should take some pictures of this great event in the ole town we call Regina.
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  #349  
Old Posted Nov 6, 2010, 5:37 PM
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As we speak, fencing is going up around the Plains Hotel and from what I hear demolishion is to commence this weekend.

Yup, just drove by this morning and saw the fencing up around the perimeter. Also saw 3 or 4 bins full of garbage in the parking lot. Must have been from gutting the interior.
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  #350  
Old Posted Nov 6, 2010, 9:17 PM
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Originally Posted by Stormer View Post
The principal portion of the payment is not an expense. It is an increase in your equity. Principal payments do not reduce your ROI, they only reduce your cash flow. The amount you invested is only $100K so the well know investment principal of leverage means you get the the 2% differential on the portion you borrowed to include in your ROI.
Ok, I see where you are getting this from...I still dont consider it ROI as you are putting more money into the property or you are putting more of the "I" into the place..But, it would be more ROI if that place was paid fully by the renters which is the argument you and I were discussing...Then it could be considered ROI.
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  #351  
Old Posted Nov 7, 2010, 1:37 AM
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Is demolition happening tomorrow?
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  #352  
Old Posted Nov 7, 2010, 11:02 PM
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I'm a little curious about the financing surrounding this. If the cheapest condos are $200,000 and the most expensive is $1.2 million then I don't know how they'll be able to afford to pay for the condo.

Just follow me here.

There are 108 units in Capital Pointe (minus the penthouses)
Without actually knowing the price of each condo, but knowing the max and min prices lets assume a mean value of $500,000. I could be off by a lot, but its just an estimate.

That comes out to a revenue of $54,000,000. If Mosaic Tower costs $100,000,000 I'd assume that Capital Pointe is of similar cost.

Can someone explain the discrepancy in cost versus revenue?
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  #353  
Old Posted Nov 8, 2010, 12:06 AM
brithgob brithgob is offline
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It also includes a hotel.
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  #354  
Old Posted Nov 8, 2010, 4:58 PM
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Originally Posted by jigglysquishy View Post
I'm a little curious about the financing surrounding this. If the cheapest condos are $200,000 and the most expensive is $1.2 million then I don't know how they'll be able to afford to pay for the condo.

Just follow me here.

There are 108 units in Capital Pointe (minus the penthouses)
Without actually knowing the price of each condo, but knowing the max and min prices lets assume a mean value of $500,000. I could be off by a lot, but its just an estimate.

That comes out to a revenue of $54,000,000. If Mosaic Tower costs $100,000,000 I'd assume that Capital Pointe is of similar cost.

Can someone explain the discrepancy in cost versus revenue?

Perhaps a better way to figure this is to determine the total square footage including the hotel (it should be in the materials in the application to the City for approval) and multiply by $350 psf, which is the approximate selling price of the units. That should give you an approximate gross value.

My guesstimate is that the construction cost of the entire project is north of $100 million. Also I think the Harvard estimate for Mosaic Tower ($500 psf) is a bit high. That would make it one of the most expensive in Canada.
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  #355  
Old Posted Nov 8, 2010, 7:30 PM
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I just added up all the sq footage from their site floor plans. Without the penthouse (which isn't listed on their site) the square footage is roughly 98,000.

That's only $34,300,000. Far below the $100,000,000 for the Mosaic Tower.
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  #356  
Old Posted Nov 8, 2010, 7:58 PM
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Originally Posted by jigglysquishy View Post
I just added up all the sq footage from their site floor plans. Without the penthouse (which isn't listed on their site) the square footage is roughly 98,000.

That's only $34,300,000. Far below the $100,000,000 for the Mosaic Tower.
Interesting. The condo tower is 5 or 6 floors taller, but half the square footage. Condo towers are typically smaller floorplates in order to maximize window exposure.
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  #357  
Old Posted Nov 8, 2010, 11:26 PM
kiwi4life kiwi4life is offline
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any photos worth taking of the site at this point?
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  #358  
Old Posted Nov 9, 2010, 2:56 PM
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any photos worth taking of the site at this point?
I drove by the other day and there is just a bit of construction fence on the south and west side parking lots. The huge mural is still up so I do not think demo is imminent.

Last edited by Stormer; Nov 9, 2010 at 3:15 PM.
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  #359  
Old Posted Nov 9, 2010, 3:49 PM
Beadyeyez Beadyeyez is offline
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I drove by the other day and there is just a bit of construction fence on the south and west side parking lots. The huge mural is still up so I do not think demo is imminent.
Maybe they were reading this thread and figured they better make it look like something is happening.

Last edited by Beadyeyez; Nov 9, 2010 at 3:51 PM. Reason: sp
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  #360  
Old Posted Nov 9, 2010, 8:32 PM
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Originally Posted by Beadyeyez View Post
Maybe they were reading this thread and figured they better make it look like something is happening.
...rumors are powerful, on the internets.
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