Hi Everyone,
I thought that I would change things up a bit with today’s post.
I have attached a video that I recorded today.
The video is of a new condo development going up in Oakville, Ontario, Canada.
I have had my eye on this development for the past few months.
I would like you to analyze this deal based on the information I presented in the video.
Put yourself in the shoes of a new real estate investor…
When considering whether or not to buy into this project, what are some of the key questions that you should ask yourself with regards to this project?
I intentionally left out a lot of details with respect to this new condo development.
Let me know your thoughts. If you were or are a new real estate investor, what are the key questions that you have to ask yourself, prior to purchasing in this development, or prior to purchasing your first rental property in general?
Please leave your comments in the comments section below.
Also, on the topic of new construction, I encourage you to check out the most recent update of the Rock Star Mansion.
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[youtube]http://www.youtube.com/watch?v=DDAtAESuHSk[/youtube]
Neil, if the price is right, that would be a good purchase. There are plans underway for transit and widening along the major arterial, it’s relatively close to a proposed BRT system, and across from convenience commercial. It has good access to highways and remains on the south side of major residential construction that may not be built out for years (views facing north may not be ideal then) . The downside would be timing for all these plans to take effect but overall – think it would be a good step. cheers! (Yeah I know where it is..lol). Did I ruin it? 😉
Mara!
Thanks for the comment!
You provided some awesome feedback as well. Yes, you know exactly where this development is. You did not ruin anything at all. 🙂
I liked your comments with respect to the transportation improvements. Great point.
Thanks again for stopping by, and for your comment.
Neil. 🙂
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As an update, I did not end up purchasing this particular property.
The cash flow projections were too unpredictable, and some local experts are forecasting the market softening in this area.
Onwards and Upwards,
Neil Uttamsingh
My computer / wireless wouldn’t let me view your entire video … so not sure if you say this but I would be checking out the builders / developers reputation to find out what their reputation is for the quality of construction projects they do!
Great point Julie!
This builder is very well known, and has built a couple of subdivisions in the town.
Thanks for you comment as always!
Neil.
Hello Neil. I don’t know if you’re going to buy as investment, or as primary personal residence. I would NOT be buying in an expensive area now. As the real estate markets deleverage, and Canada is only lagging the US, not immune to downturn, higher end product will be hurt the most due to the smallest segment of the buyers pool, should you need to bail out. Right now, the best investments are apartment buildings in the southern US. I’m buying 20-50 unit buildings with 90-100% owner financing @ 15-20k per unit!!! Sure rents are 35-50% compared with rents in North American/Canadian major markets, but prices are 7-25% of acquisition cost when compared with North American/Canadian major markets! When you pay 100k-200k per unit up north, you’re lucky to get 1% in rent. I’m buying now and get 3-4.5% rents/acquisition cost. And no, these aren’t slum properties! Blue collar, yes, but slums, no! Even if the RE market slides, I’ve got a lot of room to reduce rents and still have cash flow. Not so with the astronomical prices up north, and even more so, north of the border. Be a bottom feeder and then, no matter the market gyrations, you WIN!!! That’s my tried and true experience. Signed, 34 year investor.
Hi Vladimir,
Thank you very much for your feedback and your insight.
It is great to hear about the experiences and preferences from a long time real estate investor.
I thank you for your comment, and encourage you to contribute more. A lot of the readers can benefit from your feedback.
Thanks again for your comment Vladimir.
Best Regards,
Neil
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