Real Estate Investment..
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Location: Canada-Glorious and Free
Posted on: 09-11-07 10:44:22
Quote:
Originally posted by Gaulam
Hello and thanks mkannuri.
Big V, I would have to agree with Amit Kalia: the REI in Dubai is pretty scary. I just did not feel comfortable with it. Dubai is mostly glitter where expatriates, and particularly Desi expats, have NO ROGHTS AT ALL. Any of a number of things could happen, including political instability, Real Estate bust, a shifting of the goalposts for expats.
mkannuri, there are many ways of REI in Canada; e.g REITS. Then, REI can be for capital appreciation, or it can be for cash flow. I am looking at a mix of all this. Eg, a principal residence for self and family, and then rental property. Big V and Amit can enlighten us what is the most hassle free rental property? Residential, or Commercia/Industrial?
By the way, we can carry on this discussion here for the benefit of others interested viewers, but no harm in e-mail contact if we want to discuss some boring detail.
Gaulam, I think it would be a good idea to borrow a page from the stock investment community and build some diversification in a portfolio. So invest a portion of your portfolio in Canada and leave a portion of it in DBX. the ratio is all up to you and your need for safety / returns etc.
You brought up an interesting point about types of rental properties. The most hassle-free REI is REITS. Amit and I had that discussion earlier - not sure where it went, but essentially I felt REITS were over priced generally and hence gave poor results - relatively speaking. Now a lot of agents (esp those that dabble in commercial ) have knowledge of syndications / patnerships / joint ventures etc. These are like an informal REIT. The returns in these cases depends on the operational entity - the people managing the investment. Important factor here is to make sure that all involved are of like mind. A "flipper" amidst a "value" group is not going to be happy. Finally, there is actual ownership and management for yourself. These give the highest return because you keep the management fee for yourself. You make the decision on the level of spending, timing etc.
V
Location: Canada-Glorious and Free
Posted on: 12-11-07 11:18:00
I guess this topic is too close to my heart to let it just fade away.
For the benefit of Desis thinking about industrial, commercial and investment real estate, I have some sites for your perusal.
http://www.cls.ca/ - Commercial Real Estate listing service
http://www.crlnetwork.com/home.crl - Another Listing service
http://www.loopnet.com/ - primarily US focused listing service
http://www.cibbs.com/ - ICI World (now CIBBS) listing service
http://www.2ontario.com/orea/ - OREA (ontario focus) listing service
http://www.coldwellbanker.ca/Search/Commercial_Property_Search.asp - Coldwell Banker commercial real estate brokers
http://www.cushwake.com/cwglobal/jsp/propertyLanding.jsp?_requestid=36031 - Cushman Wakefield commercial real estate brokers
http://www.avisonyoung.com/ - Avison Young commercial real estate brokers
http://www.dtzbarnicke.com/ - JJBarnicke (now DTZ Barnicke) commercial real estate brokers
http://www.taxsaleproperty.org/ - Tax sale properties in Ontario
http://www.vandema.com/ - primarily US focused Resources site
http://canada.gerealestate.com/cms/servlet/enter - GE Realestate financing
http://www.firstnational.ca/Default.aspx - First National Financial
http://www.philwiper.ca/ - commercial real estate financing
http://www.capmark.com/capmark/ - GMAC commercial RE fianancing (now CAPMARK)
http://www.landlordsoftware.com/ - real estate investment software
As I find more in my faves I'll post them.
Enjoy.
BV
Interesting and one of the best thread around.
I wonder what has been average ROI in the GTA for someone buying condos while they are being built and flipping them as soon as the building is ready?
Also what are pitfalls to look for in such a case and how much moolah one is supposed to have before wetting one's feet?
Quote:
Originally posted by Big Vee
In what way are you getting into it? Are you an agent? An investor?
V
I sent you a mail to yr yahoo address but looks like there is some problem wz yr address..
Pls let me know any other address.
Thanks
Quote:
Originally posted by Gapodi
Interesting and one of the best thread around.
I wonder what has been average ROI in the GTA for someone buying condos while they are being built and flipping them as soon as the building is ready?
Also what are pitfalls to look for in such a case and how much moolah one is supposed to have before wetting one's feet?
Good question. GTA is vast and the returns can vary depending upon the area and many other factors explained below.
Flipping can be risky if not well planned with a methodical approach. Risks and rewards should be analysed before one buys his/her investment condo.
The returns depend on many current and future market probables like-the time of buying; pricing (pre-construction is the best, that too Broker's preview pricing); reputation of builder; type and size of condo; inclusion or exclusion of utilities, parking or locker; property taxes; condo fees; amenities; upgrades; location, floor and view; interest rates; vacancy rates; available supply of similar units and housing start of the area; demand for similar units; neighbourhood; demography of area and building; proximity to amenities/transportation; prevailing rents; future rental markets; future economic conditions; job markets; tax issues; closing costs, buying and selling fees; mortgage terms; occupancy and final closing; builder's rules regarding flipping etc.
The ROI is calculated on one's down payment. Let me give you an example:
Say, you bought a Downtown Toronto condo in 2004 for $165,000 by paying only 20% down payment ($33,000). If you sell the same condo for $210,000 in today market your gross return can be $45,000.
Less- Other costs like closing costs including land transfer tax, selling fees, few months of mortgage payment, condo fees and property taxes etc. associated with the sale of the unit (say $22,000).
The nett return before capital gain taxes can be $45000-$22,000= $23,000 or say 70% on your investment or approx. 23% pa
The above example is very close to one of my sale. E & O E.
Investing is real estate requires a good team (Realtor, Mortgage Broker, Lawyer, Accountant ), in the first place.
Regards,
-----------------------------------------------------------------
Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/
Location: Canada-Glorious and Free
Posted on: 13-11-07 16:36:02
spoke too late!
Quote:
Originally posted by amit kalia
Quote:
Originally posted by Gapodi
Interesting and one of the best thread around.
I wonder what has been average ROI in the GTA for someone buying condos while they are being built and flipping them as soon as the building is ready?
Also what are pitfalls to look for in such a case and how much moolah one is supposed to have before wetting one's feet?
Good question. GTA is vast and the returns can vary depending upon the area and many other factors explained below.
Flipping can be risky if not well planned with a methodical approach. Risks and rewards should be analysed before one buys his/her investment condo.
The returns depend on many current and future market probables like-the time of buying; pricing (pre-construction is the best, that too Broker's preview pricing); reputation of builder; type and size of condo; inclusion or exclusion of utilities, parking or locker; property taxes; condo fees; amenities; upgrades; location, floor and view; interest rates; vacancy rates; available supply of similar units and housing start of the area; demand for similar units; neighbourhood; demography of area and building; proximity to amenities/transportation; prevailing rents; future rental markets; future economic conditions; job markets; tax issues; closing costs, buying and selling fees; mortgage terms; occupancy and final closing; builder's rules regarding flipping etc.
The ROI is calculated on one's down payment. Let me give you an example:
Say, you bought a Downtown Toronto condo in 2004 for $165,000 by paying only 20% down payment ($33,000). If you sell the same condo for $210,000 in today market your gross return can be $45,000.
Less- Other costs like closing costs including land transfer tax, selling fees, few months of mortgage payment, condo fees and property taxes etc. associated with the sale of the unit (say $22,000).
The nett return before capital gain taxes can be $45000-$22,000= $23,000 or say 70% on your investment or approx. 23% pa
The above example is very close to one of my sale. E & O E.
Investing is real estate requires a good team (Realtor, Mortgage Broker, Lawyer, Accountant ), in the first place.
Regards,
Thanks a lot for the time taken to explain Amit. That is an example of what a response should be like. Much appreciated.
I have one more question.... How do flippers manage selling of condos? Do they have to take full mortgage loan, get the apartment in their name before putting it up for sale? or can they just transfer it to the seller without assuming mortgage even for a month once building is ready for possesion ???
How do they do it?
