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PostPosted: Tue Oct 21, 2014 1:09 pm 
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Before anyone states the obvious that this is 'Milton Real Estate' page I acknowledge that.... but I am curious to know peoples thoughts on the continual growth of Milton real estate in comparison to our neighbors to the west in Kitchener/Waterloo.

Lets take 7 years ago in Milton.....small detached homes were the 300k range and village style Mattamy homes were in the 200k. Fast forward in today's real estate market in Milton and I think you would be hard pressed to even find a smaller detached home for less than $450-475 (maybe even higher!). So based on rough math, 7 years divided by lets say around $150k increase in general= just over $21k/yr increase....not a bad rate of return.

So I guess my question to everyone is that since Kitchener/waterloo is expanding with I believe their 4th mattamy release (1415sf village home from plan $258,000 + AC + 3 ss appliances + 3k upgrades) Is it worth taking a shot at a rental type property there for now and into the future? Thoughts?


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PostPosted: Tue Oct 21, 2014 3:41 pm 
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Joined: Thu Nov 15, 2007 3:55 pm
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Location: 4th line / St Laurent
Hi T,

That is actually a loaded question that would take a long time to answer correctly, and it would actually be a different answer for everybody depending on their investment goals. At a high level:

Do I think Kitchener will see the large annual jumps we've enjoyed here over such a sustained term? No... I think it was the perfect storm here (Lake water, cheap entry price, proximity to Miss and Oakville), and still is in terms of demand (not as much in appreciation simply because entry prices have nearly caught up to surrounding 'burbs)

Do I think rental properties have a lower entry price in Kitchener than here? Absolutely - in Milton you are lucky if you can be cash flow positive since the purchase prices are high -- Milton rental investments are good for long term holds (somebody else paying of your mortgage)

What are the vacancy rates and rental inventories like? Milton it is fairly easy to find not only A tenant, but a GOOD tenant. Mattamy Kitchener is a little different in that regard - the tenant pool is a little different because you have fewer of the 'Toronto-commuter' families that prefer the new build rentals, and the competition varies in terms of what's available and who is renting what.

ALSO, with rental properties, you, the landlord has to be accessible. If this is your first rental, having it 35-40 minutes away might be a little bit of a pain. For a seasoned landlord looking at a full portfolio, not an issue there.

If I was looking into a rental property outside of the GTA, I would look at older homes at a lower purchase point, and not afraid of a tenant scuffing the walls or normal wear and tear. I'd also go a touch further between Hamilton and St Catharines, but places in Cambridge and KW could work as well (I'm a control freak with respect to number and analysis, so it would come down to the exact house and details for me). Again, Milton can find you a good number of 'executive' tenants, and that outweighs the cashflow-negative or -even aspect of it in my opinion for first time landlords with long term investment goals. This exists in other areas the further you go outside of the GTA, but in lesser numbers.

Overall it depends on your individual investment goals, the size of your portfolio, personal comfort level with travel and availability, and your comfort level with different types of tenants.

How's that for giving you an answer without giving you an answer? :) Hopefully it brough up a few talking points and we'll get more input from others posting as well!

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PostPosted: Tue Oct 21, 2014 3:50 pm 
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Thanks..... I appreciate your time for the response and regard the comments very highly.

If we decided to make an investment in either K/W or Hamilton etc..... I will definitely post info on the journey and process, good or bad.

thanks......further opinions welcomed

ciao for now


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PostPosted: Tue Oct 21, 2014 5:48 pm 
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Joined: Tue Jan 07, 2014 2:40 pm
Posts: 140
Location: Milton, Ontario
tmuccillo wrote:
Before anyone states the obvious that this is 'Milton Real Estate' page I acknowledge that.... but I am curious to know peoples thoughts on the continual growth of Milton real estate in comparison to our neighbors to the west in Kitchener/Waterloo.

Lets take 7 years ago in Milton.....small detached homes were the 300k range and village style Mattamy homes were in the 200k. Fast forward in today's real estate market in Milton and I think you would be hard pressed to even find a smaller detached home for less than $450-475 (maybe even higher!). So based on rough math, 7 years divided by lets say around $150k increase in general= just over $21k/yr increase....not a bad rate of return.

So I guess my question to everyone is that since Kitchener/waterloo is expanding with I believe their 4th mattamy release (1415sf village home from plan $258,000 + AC + 3 ss appliances + 3k upgrades) Is it worth taking a shot at a rental type property there for now and into the future? Thoughts?



Not sure if this helps with your decision, but some of the variables in your equation are slightly off:

1) 5 years ago you could buy a pre-construction detach 1800sqft for $300,000. That same
Model currently sells for $515,000 - $530,000.
Which is $200,000+ over 5 years.

2) I have clients who bought 2500sqft homes just over 3 years ago
For $445,000. These homes currently sell for around $615,000 today.
Thats $170,000 over 3+ years.

I would compare that to KW in addition to looking at your positive cash flow scenario.

Also, if you need a referral for a great agent out in KW, let me know.

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LEON VAYMAN, BROKER
RE/MAX Real Estate Centre Realty Inc., Brokerage (MILTON Office)
Direct/Text: 905-616-7307
www.LEONVAYMAN.com
facebook | Linkedin | YouTube
CLICK HERE to Listen to what Leon's past clients are saying!


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PostPosted: Tue Oct 21, 2014 7:28 pm 
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Thanks for the more accurate info. I guess the scale still tips in favour of milton in terms of increase in value. I have read and heard that KW ranked very high in terms of town/cities to live in with regards to house prices, economy, lowish crimes, education etc. this past year.

But in terms of purchasing power, I feel like you can purchase a lot more house out that way as compaired to here in milton.

Only time will tell but I will consider real estate in KW at some point

Thanks


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PostPosted: Tue Oct 21, 2014 11:47 pm 
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Joined: Tue Jan 07, 2014 2:40 pm
Posts: 140
Location: Milton, Ontario
tmuccillo wrote:
Thanks for the more accurate info. I guess the scale still tips in favour of milton in terms of increase in value. I have read and heard that KW ranked very high in terms of town/cities to live in with regards to house prices, economy, lowish crimes, education etc. this past year.

But in terms of purchasing power, I feel like you can purchase a lot more house out that way as compaired to here in milton.

Only time will tell but I will consider real estate in KW at some point

Thanks


Absolutely! Much more purchasing power out in KW, and if KW works for you then more power to you.

Let us know how you make out.

_________________
LEON VAYMAN, BROKER
RE/MAX Real Estate Centre Realty Inc., Brokerage (MILTON Office)
Direct/Text: 905-616-7307
www.LEONVAYMAN.com
facebook | Linkedin | YouTube
CLICK HERE to Listen to what Leon's past clients are saying!


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PostPosted: Wed Oct 22, 2014 12:01 pm 
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Joined: Tue Oct 05, 2010 7:32 pm
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Does anyone know how much you can expect to rent a 3 bed 2 bath 1400sf village townhome
In Kitchener excluding utilities?

Thanks in advance


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PostPosted: Wed Oct 22, 2014 12:06 pm 
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Joined: Thu Nov 15, 2007 3:55 pm
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Location: 4th line / St Laurent
3 bedroom townhomes, relatively new, both 2 and 3 storey, are getting between $1275 and $1400 in Kitchener.

_________________
Fred De Carolis
FREDHELPS.COM or on Facebook
Thanks for your support in the
search for Milton's Favourite Realtor!

REVEL REALTY -- MILTON'S FAVOURITE REAL ESTATE BROKERAGE, as voted by YOU!!!


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PostPosted: Wed Oct 22, 2014 2:29 pm 
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Joined: Tue Oct 05, 2010 7:32 pm
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Thanks for the info Fred

Have a great day


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