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PostPosted: Sat Jan 07, 2017 11:28 am 
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Joined: Sat Aug 11, 2012 11:32 am
Posts: 42
As of currently listed prices, I see price difference from 30' to 36' to 43' has almost doubled.

30' waterford $810k to 36' wyndham $970k
difference: $160k

36' wyndham $970k to 43' perth $1,096k
difference: $130k

previously, I think this difference was around $70-$80k

Just an observation.


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PostPosted: Sat Jan 07, 2017 12:00 pm 
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Joined: Sat Jan 07, 2017 11:56 am
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As long as the rental market can support the prices I think is fine. Only time to be worry is if interest rate goo too up and market crashes. 1.1M property with 20% down means mortgage of ~4k. If we can advertise and rent for same price, then it is justified.

Mattamy seems to be over priced now compared to some other higher quality builders now. So maybe mattamy trying to squeeze what they can before bubble burst


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PostPosted: Sat Jan 07, 2017 12:49 pm 
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Joined: Tue May 24, 2011 5:18 pm
Posts: 46
Location: milton
Milton like other parts of GTA is now completely negative cash flow market. Just an example I am renting out a two years old mattamy built 30' detached house and paying the annual property taxes from out of my own pocket as rent only covers the monthly mortgage payment. I have 80% financing for that house. Now if I buy and rent the same size (2100 sq ft) house then 80% LTV will only partially cover the monthly mortgage payments. Therefore just forget any positive cash flow in Milton based on recent real estate market. I will prefer to invest outside of GTA for rental properties.

suki lai wrote:
As long as the rental market can support the prices I think is fine. Only time to be worry is if interest rate goo too up and market crashes. 1.1M property with 20% down means mortgage of ~4k. If we can advertise and rent for same price, then it is justified.

Mattamy seems to be over priced now compared to some other higher quality builders now. So maybe mattamy trying to squeeze what they can before bubble burst


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PostPosted: Sat Jan 07, 2017 1:32 pm 
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Joined: Wed Feb 26, 2014 1:14 pm
Posts: 677
Location: Phase 3A
New_Junebees wrote:
Milton like other parts of GTA is now completely negative cash flow market. Just an example I am renting out a two years old mattamy built 30' detached house and paying the annual property taxes from out of my own pocket as rent only covers the monthly mortgage payment. I have 80% financing for that house. Now if I buy and rent the same size (2100 sq ft) house then 80% LTV will only partially cover the monthly mortgage payments. Therefore just forget any positive cash flow in Milton based on recent real estate market. I will prefer to invest outside of GTA for rental properties.



You mean monthly mortgage payments of principal and interest, right?


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PostPosted: Sat Jan 07, 2017 1:49 pm 
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Joined: Tue May 24, 2011 5:18 pm
Posts: 46
Location: milton
Yes Mortgage Payment=P+I


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PostPosted: Sat Jan 07, 2017 1:51 pm 
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Joined: Sat Jan 07, 2017 11:56 am
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New_Junebees wrote:
Milton like other parts of GTA is now completely negative cash flow market. Just an example I am renting out a two years old mattamy built 30' detached house and paying the annual property taxes from out of my own pocket as rent only covers the monthly mortgage payment. I have 80% financing for that house. Now if I buy and rent the same size (2100 sq ft) house then 80% LTV will only partially cover the monthly mortgage payments. Therefore just forget any positive cash flow in Milton based on recent real estate market. I will prefer to invest outside of GTA for rental properties.

suki lai wrote:
As long as the rental market can support the prices I think is fine. Only time to be worry is if interest rate goo too up and market crashes. 1.1M property with 20% down means mortgage of ~4k. If we can advertise and rent for same price, then it is justified.

Mattamy seems to be over priced now compared to some other higher quality builders now. So maybe mattamy trying to squeeze what they can before bubble burst



If this is true then why are people buying these properties? Wouldn't it make sense to sell them and buy more reconstruction or existing properties more west like cambridge?


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PostPosted: Sun Jan 08, 2017 12:26 am 
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Joined: Tue May 05, 2015 10:02 pm
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New_Junebees wrote:
Milton like other parts of GTA is now completely negative cash flow market.


I don't know what you are doing but this statement is insanely false

_________________
Justin Trudeau apoligizes for this


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PostPosted: Sun Jan 08, 2017 12:46 am 
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Joined: Wed Apr 20, 2016 6:50 pm
Posts: 11
Based on the new prices lately, the cash flow is definitely negative.

People need to look at all of the costs from:
P&I for 80% of the cost of the home;
The interest on how you are carrying the other 20% (usually from HELOC) or opportunity cost
The interest on money used for all the closing costs including land transfer costs; lawyer fees; closing costs; costs to get the home ready (i.e. window coverings; anything you might want to upgrade; appliances; etc.)
Property tax
Insurance
Costs associated with getting the house rented (typically one months rent)
R&M
You need to have a great understanding of the rental market and what you can get for rent.

Homes bought a couple years ago were good investments from a cash flow perspective. If you are investing hoping for appreciation only and not cash flow be careful.....


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PostPosted: Sun Jan 08, 2017 1:11 am 
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tjvikings wrote:
Homes bought a couple years ago were good investments from a cash flow perspective. If you are investing hoping for appreciation only and not cash flow be careful.....

Said almost everyone a few years back as well...


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PostPosted: Sun Jan 08, 2017 10:05 am 
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Burrcold wrote:
tjvikings wrote:
Homes bought a couple years ago were good investments from a cash flow perspective. If you are investing hoping for appreciation only and not cash flow be careful.....

Said almost everyone a few years back as well...



I agree, I see another 30-40% increase year over year in Milton. That's why if you buy one property at 1M next time this year will be 1.3-1.4m. Rental at 2k a month is meaningless, what is 30-40k expense when you're making 300-400k end of year. Mattamy should be releasing more supply to market so more people can take advantage before prices get too high


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PostPosted: Sun Jan 08, 2017 4:03 pm 
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^

With the hike since past twelve mont if you put 200k down on 1M, after 2 years you can make 1M on 200k investment.


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PostPosted: Mon Jan 09, 2017 2:20 am 
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Joined: Wed Apr 20, 2016 6:50 pm
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suki lai wrote:
Burrcold wrote:
tjvikings wrote:
Homes bought a couple years ago were good investments from a cash flow perspective. If you are investing hoping for appreciation only and not cash flow be careful.....

Said almost everyone a few years back as well...



I agree, I see another 30-40% increase year over year in Milton. That's why if you buy one property at 1M next time this year will be 1.3-1.4m. Rental at 2k a month is meaningless, what is 30-40k expense when you're making 300-400k end of year. Mattamy should be releasing more supply to market so more people can take advantage before prices get too high




This is the difference between true investors and speculators. Expecting that type of return based on a hunch when all experts are calling for a modest increase us pure speculation. Investors uses true numbers.

Everyone has their own way of doing things. Best of luck to you.


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PostPosted: Mon Jan 09, 2017 12:15 pm 
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Joined: Sun Jan 08, 2017 3:53 pm
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tjvikings wrote:
Homes bought a couple years ago were good investments from a cash flow perspective. If you are investing hoping for appreciation only and not cash flow be careful.....

Quote:
Said almost everyone a few years back as well...



Quote:
I agree, I see another 30-40% increase year over year in Milton. That's why if you buy one property at 1M next time this year will be 1.3-1.4m. Rental at 2k a month is meaningless, what is 30-40k expense when you're making 300-400k end of year. Mattamy should be releasing more supply to market so more people can take advantage before prices get too high




Quote:
This is the difference between true investors and speculators. Expecting that type of return based on a hunch when all experts are calling for a modest increase us pure speculation. Investors uses true numbers.

Everyone has their own way of doing things. Best of luck to you.




I wish you the best as well but we all know two things:

price difference from 30' to 36' to 43' has almost doubled. from 70-80k to 130-160k.

If mattamy can raise such prices and demand is there, trend will continue. Only problem is how many we can buy at a time, this is why it's like a gold mine with limited minerals. How can you access more, if the supply has shortage? My opinion is buy as many as you can get, while you can!!!


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