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#8913604 - 01/16/17 10:54 AM So who is interested in buying an investment condo
Choco 'Nuck Offline
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Rents are up!

http://business.financialpost.com/person...ds-to-high-rise

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#8913776 - 01/16/17 01:15 PM Re: So who is interested in buying an investment condo [Re: Choco 'Nuck]
Denis Si Offline
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I'm in!! WHERE TO BUY
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#8913821 - 01/16/17 01:50 PM Re: So who is interested in buying an investment condo [Re: Choco 'Nuck]
Just A Troll Offline
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 Originally Posted By: Choco 'Nuck


Need to check up on my REITs
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#8913837 - 01/16/17 02:03 PM Re: So who is interested in buying an investment condo [Re: Just A Troll]
TheRealCSnapper Moderator Offline
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i hooked my sister up with an opportunity to invest in a Plaza development at Yonge & Finch...on paper, the deal is solid and should fucking pay with a 5 yr horizon. i'd be interested to see how that plays out.
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#8913964 - 01/16/17 04:08 PM Re: So who is interested in buying an investment condo [Re: TheRealCSnapper]
OracerO Offline
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Registered: 10/07/02
Posts: 3949
Loc: GTA
RENT is f'in insane.

There are times when a lease is listed for a day and it's gone. I've listed near the yonge and shep/ finch area and i've had offers within 3 hours, sight unseen.

It's all the locals who are selling their homes and willing to rent for a few years.

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#8913978 - 01/16/17 04:17 PM Re: So who is interested in buying an investment condo [Re: OracerO]
jesguerra Offline
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Registered: 09/14/15
Posts: 109
With ppl getting mortgage approvals good for a 1 bd/1 bath condo, they'll have no choice but to rent. I have friends looking at renting a 1 bd/1 bath condo out in sauga, starting at $1500/month. Ridiculous.
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#8913988 - 01/16/17 04:25 PM Re: So who is interested in buying an investment condo [Re: jesguerra]
titty sprinkles Offline
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well when a shoebox condo is freakin $300k.....
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#8913991 - 01/16/17 04:28 PM Re: So who is interested in buying an investment condo [Re: jesguerra]
Big Tasty Offline
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The last apt I rented from in 2004 was a 2bdrm 1.5 bath going for $1100/mnth, just looked it up and it's now at $1575
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#8914001 - 01/16/17 04:38 PM Re: So who is interested in buying an investment condo [Re: Big Tasty]
titty sprinkles Offline
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I was paying $1600 for the condo at yonge and finch, then again it was big and a penthouse.
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#8914632 - 01/17/17 10:39 AM Re: So who is interested in buying an investment condo [Re: jesguerra]
A2B-Lexus Offline
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 Originally Posted By: jesguerra
With ppl getting mortgage approvals good for a 1 bd/1 bath condo, they'll have no choice but to rent. I have friends looking at renting a 1 bd/1 bath condo out in sauga, starting at $1500/month. Ridiculous.


Overheard my coworker is looking at 1BR+Den w parking starting at $1800. He says he is expecting it to go for more as the last tenant paid $2100 for the same unit.

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#8914641 - 01/17/17 10:41 AM Re: So who is interested in buying an investment condo [Re: A2B-Lexus]
A2B-Lexus Offline
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My first bachelor condo in DT Markham cost me $140k. I wish I kept it, could have became a slumlord.
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#8914687 - 01/17/17 11:04 AM Re: So who is interested in buying an investment condo [Re: A2B-Lexus]
TheRealCSnapper Moderator Offline
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this is great since i'm looking to put my place up for rent in the next couple months.

it's small, great location with parking. w00t

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#8914766 - 01/17/17 12:09 PM Re: So who is interested in buying an investment condo [Re: TheRealCSnapper]
Wildout Offline
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Registered: 11/26/07
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My brother is doing this now and surprisingly a lot of people can be had through airbnb, who would have known.
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#8914797 - 01/17/17 12:35 PM Re: So who is interested in buying an investment condo [Re: Wildout]
Hatorade Offline
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 Originally Posted By: Wildout
My brother is doing this now and surprisingly a lot of people can be had through airbnb, who would have known.


How has airbnb been for him?
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#8914827 - 01/17/17 12:56 PM Re: So who is interested in buying an investment condo [Re: Wildout]
TheRealCSnapper Moderator Offline
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Registered: 12/05/02
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 Originally Posted By: Wildout
My brother is doing this now and surprisingly a lot of people can be had through airbnb, who would have known.


the board is cool with it, or is he doing it on the DL?

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#8915196 - 01/17/17 06:33 PM Re: So who is interested in buying an investment condo [Re: TheRealCSnapper]
87ZCSi Offline
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We may sell our rental condo, currently with tenant, 1 bed 1 bath with proper den (separate 'room') at Yonge and Finch. Rents for $1650, bought for 268k about 8 yrs ago, loss of about $4000/year (1 month rent if turnover + ~$200/month). It's worth on the low side maybe $340k now.
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#8915257 - 01/17/17 07:45 PM Re: So who is interested in buying an investment condo [Re: 87ZCSi]
xza8 Offline
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Registered: 12/18/09
Posts: 1065
 Originally Posted By: 87ZCSi
We may sell our rental condo, currently with tenant, 1 bed 1 bath with proper den (separate 'room') at Yonge and Finch. Rents for $1650, bought for 268k about 8 yrs ago, loss of about $4000/year (1 month rent if turnover + ~$200/month). It's worth on the low side maybe $340k now.


That is pretty good ROI, in 25 years, you will have -4000*25 + 350,000 = $250,000 + appreciation, assuming you continue to lose $4K/year.

My $2M bungalow, walking distance to Richmond Hill go station rents for $1500 a month.

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#8915284 - 01/17/17 08:22 PM Re: So who is interested in buying an investment condo [Re: xza8]
Choco 'Nuck Offline
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Can you carry forward that loss for use against the capital gains should you decide to sell?
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#8915321 - 01/17/17 09:41 PM Re: So who is interested in buying an investment condo [Re: xza8]
Polkaroo Offline
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Registered: 11/17/08
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 Originally Posted By: xza8

My $2M bungalow, walking distance to Richmond Hill go station rents for $1500 a month.
ahhahahhahahahhahaahahahahahahhahahha
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#8915418 - 01/18/17 08:02 AM Re: So who is interested in buying an investment condo [Re: Polkaroo]
Risky Business Offline
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#8915542 - 01/18/17 10:05 AM Re: So who is interested in buying an investment condo [Re: Choco 'Nuck]
xza8 Offline
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Registered: 12/18/09
Posts: 1065
 Originally Posted By: Choco 'Nuck
Can you carry forward that loss for use against the capital gains should you decide to sell?


Wouldn't your rental loss offset your employment income, which is better than a capital loss?

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#8915554 - 01/18/17 10:13 AM Re: So who is interested in buying an investment condo [Re: xza8]
Choco 'Nuck Offline
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Doesn't how the loss can be attributed depend on how the ownership of the rental property is structured? Sole proprietor vs LLC?
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#8915588 - 01/18/17 10:39 AM Re: So who is interested in buying an investment condo [Re: Choco 'Nuck]
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He saying that it doesn't make sense to apply loss carry forward to capital gains when you get 100% higher bang for buck offsetting income tax...there is zero logic to do anything else.
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#8915683 - 01/18/17 11:48 AM Re: So who is interested in buying an investment condo [Re: xza8]
87ZCSi Offline
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Registered: 09/06/00
Posts: 7166
Loc: Portland and Toronto
 Originally Posted By: xza8
 Originally Posted By: 87ZCSi
We may sell our rental condo, currently with tenant, 1 bed 1 bath with proper den (separate 'room') at Yonge and Finch. Rents for $1650, bought for 268k about 8 yrs ago, loss of about $4000/year (1 month rent if turnover + ~$200/month). It's worth on the low side maybe $340k now.


That is pretty good ROI, in 25 years, you will have -4000*25 + 350,000 = $250,000 + appreciation, assuming you continue to lose $4K/year.

My $2M bungalow, walking distance to Richmond Hill go station rents for $1500 a month.


The issue is I now don't live in Canada so in 2 years I get to choose to pay it off or get a hit on the mortgage rate. Beyond that there are taxes and no local income to offset the losses. I need to finish evaluating if there's something better to do with ~$350000.

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#8915691 - 01/18/17 12:00 PM Re: So who is interested in buying an investment condo [Re: Risky Business]
Choco 'Nuck Offline
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 Originally Posted By: Risky Business
He saying that it doesn't make sense to apply loss carry forward to capital gains when you get 100% higher bang for buck offsetting income tax...there is zero logic to do anything else.

FFS, I understand that, but if the ownership of the property is under an LLC, then you can't use the loss against your personal income.

I can ride in a helicopter too you know

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#8915718 - 01/18/17 12:11 PM Re: So who is interested in buying an investment condo [Re: Choco 'Nuck]
Risky Business Offline
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 Originally Posted By: Choco 'Nuck
 Originally Posted By: Risky Business
He saying that it doesn't make sense to apply loss carry forward to capital gains when you get 100% higher bang for buck offsetting income tax...there is zero logic to do anything else.

FFS, I understand that, but if the ownership of the property is under an LLC, then you can't use the loss against your personal income.

I can ride in a helicopter too you know


Why wouldn't you able to? I am no tax guy, but from my tax days I am pretty sure pulling business loss from a corp is totally doable and can be applied toward gross income. You can draw income as salary or dividend, on the loss I am assuming it passes through and offsets against salary.



Stop losing money and you won't have these problems ;\)

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#8915956 - 01/18/17 02:23 PM Re: So who is interested in buying an investment condo [Re: Risky Business]
titty sprinkles Offline
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Registered: 08/22/05
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Loc: Toronto,Ontario
ok because i have no idea what you guys are talking about let me ask this.

lately i've been wondering why i've been needing a house. kid is there only half the time, i don't use my yard more of a pain in the ass for up keep really, don't get me wrong it has it's pros and cons i like being able to wash my car in the driveway, but would it make sense to rent the house and buy a 2 bed rm condo right now?


Edited by titty sprinkles (01/18/17 02:25 PM)
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#8915982 - 01/18/17 02:51 PM Re: So who is interested in buying an investment condo [Re: TheRealCSnapper]
Wildout Offline
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Registered: 11/26/07
Posts: 1767
 Originally Posted By: Hatorade
 Originally Posted By: Wildout
My brother is doing this now and surprisingly a lot of people can be had through airbnb, who would have known.


How has airbnb been for him?


It's been great, he's in his 3rd (don't quote me on that, could be longer) year of doing it and just raise his rates this year.
 Originally Posted By: TheRealCSnapper
 Originally Posted By: Wildout
My brother is doing this now and surprisingly a lot of people can be had through airbnb, who would have known.


the board is cool with it, or is he doing it on the DL?


On the DL, but it's not like it's new people every week. It's mainly people that have money, but can't be bothered with the housing market.

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#8916284 - 01/18/17 07:24 PM Re: So who is interested in buying an investment condo [Re: Choco 'Nuck]
xza8 Offline
Sr Member


Registered: 12/18/09
Posts: 1065
 Originally Posted By: Choco 'Nuck
 Originally Posted By: Risky Business
He saying that it doesn't make sense to apply loss carry forward to capital gains when you get 100% higher bang for buck offsetting income tax...there is zero logic to do anything else.

FFS, I understand that, but if the ownership of the property is under an LLC, then you can't use the loss against your personal income.

I can ride in a helicopter too you know


why do you have a US LLC owning your Canadian? properties

unless you have a LLP (and confused it with the term "LLC" by watching too many Suits episodes)... I'm pretty sure the partnership income/loss can offset your employment income (e.g., 100% deduction vs 50% taxable capital loss)... but at one point CRA will deny your rental loss due to the lack of reasonable expectation of profit ("REOP").

Check with your accountant, my specialty was helping Canadian companies move income offshore and save 23% in taxes... personal and partnership taxation was never my strong suit

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#8916290 - 01/18/17 07:35 PM Re: So who is interested in buying an investment condo [Re: titty sprinkles]
xza8 Offline
Sr Member


Registered: 12/18/09
Posts: 1065
 Originally Posted By: titty sprinkles
ok because i have no idea what you guys are talking about let me ask this.

lately i've been wondering why i've been needing a house. kid is there only half the time, i don't use my yard more of a pain in the ass for up keep really, don't get me wrong it has it's pros and cons i like being able to wash my car in the driveway, but would it make sense to rent the house and buy a 2 bed rm condo right now?


the year you stop declaring your house as your principal residence, you start to create a tax liability when you sell and generate a profit

the formula is:

(1 + number of years occupied as principal residence) / (number of years owned) * capital gain

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#8916342 - 01/18/17 09:07 PM Re: So who is interested in buying an investment condo [Re: xza8]
TheRealCSnapper Moderator Offline
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Registered: 12/05/02
Posts: 31954
Loc: Toronto, Canada
 Originally Posted By: xza8
 Originally Posted By: titty sprinkles
ok because i have no idea what you guys are talking about let me ask this.

lately i've been wondering why i've been needing a house. kid is there only half the time, i don't use my yard more of a pain in the ass for up keep really, don't get me wrong it has it's pros and cons i like being able to wash my car in the driveway, but would it make sense to rent the house and buy a 2 bed rm condo right now?



the year you stop declaring your house as your principal residence, you start to create a tax liability when you sell and generate a profit

the formula is:

(1 + number of years occupied as principal residence) / (number of years owned) * capital gain

What about the exemption thing if you declare it...you have some sort of capital gain exemption for 4 years??


Edited by TheRealCSnapper (01/18/17 09:09 PM)

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#8916419 - 01/18/17 10:07 PM Re: So who is interested in buying an investment condo [Re: TheRealCSnapper]
xza8 Offline
Sr Member


Registered: 12/18/09
Posts: 1065
 Originally Posted By: TheRealCSnapper
 Originally Posted By: xza8
 Originally Posted By: titty sprinkles
ok because i have no idea what you guys are talking about let me ask this.

lately i've been wondering why i've been needing a house. kid is there only half the time, i don't use my yard more of a pain in the ass for up keep really, don't get me wrong it has it's pros and cons i like being able to wash my car in the driveway, but would it make sense to rent the house and buy a 2 bed rm condo right now?



the year you stop declaring your house as your principal residence, you start to create a tax liability when you sell and generate a profit

the formula is:

(1 + number of years occupied as principal residence) / (number of years owned) * capital gain

What about the exemption thing if you declare it...you have some sort of capital gain exemption for 4 years??


Exemption of capital gain on your principal residence is based on essentially how many years you lived in it by how many years you owned it. If you have 2 properties, you need to pick and choose which property is your principal residence and then the CRA will tax the other (when you sell it).

http://www.taxtips.ca/filing/principalresidence.htm

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#8916567 - 01/19/17 07:28 AM Re: So who is interested in buying an investment condo [Re: TheRealCSnapper]
Risky Business Offline
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Registered: 05/17/10
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 Originally Posted By: TheRealCSnapper
 Originally Posted By: xza8
 Originally Posted By: titty sprinkles
ok because i have no idea what you guys are talking about let me ask this.

lately i've been wondering why i've been needing a house. kid is there only half the time, i don't use my yard more of a pain in the ass for up keep really, don't get me wrong it has it's pros and cons i like being able to wash my car in the driveway, but would it make sense to rent the house and buy a 2 bed rm condo right now?



the year you stop declaring your house as your principal residence, you start to create a tax liability when you sell and generate a profit

the formula is:

(1 + number of years occupied as principal residence) / (number of years owned) * capital gain

What about the exemption thing if you declare it...you have some sort of capital gain exemption for 4 years??


Where did you get this "capital gain exemption for 4 years?"

If you own more than 1 property, you can designate only one as a principal residence (technically more than 1 address, but the years would be split for residency status like xza8 mentioned).

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#8916616 - 01/19/17 08:26 AM Re: So who is interested in buying an investment condo [Re: Risky Business]
TheRealCSnapper Moderator Offline
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Registered: 12/05/02
Posts: 31954
Loc: Toronto, Canada
 Originally Posted By: Risky Business
 Originally Posted By: TheRealCSnapper
 Originally Posted By: xza8
 Originally Posted By: titty sprinkles
ok because i have no idea what you guys are talking about let me ask this.

lately i've been wondering why i've been needing a house. kid is there only half the time, i don't use my yard more of a pain in the ass for up keep really, don't get me wrong it has it's pros and cons i like being able to wash my car in the driveway, but would it make sense to rent the house and buy a 2 bed rm condo right now?



the year you stop declaring your house as your principal residence, you start to create a tax liability when you sell and generate a profit

the formula is:

(1 + number of years occupied as principal residence) / (number of years owned) * capital gain

What about the exemption thing if you declare it...you have some sort of capital gain exemption for 4 years??


Where did you get this "capital gain exemption for 4 years?"

If you own more than 1 property, you can designate only one as a principal residence (technically more than 1 address, but the years would be split for residency status like xza8 mentioned).


i don't know where i got it from, but someone did mention it in a very casual conversation...

so i'm living in my condo which i own and that's my principal residence. okay. capital gain, exempted because principal residence.

what if i move, start renting somewhere, thus making my principal residence elsewhere and i keep my condo and rent it out....am i on the hook for capital gains from that point forward? someone told me that i have a 4 year window to still be exempted from capital gains, or if i move over x KM, i'd still be exempted from capital gains.

i need to talk to my accountant still but he's old as fuck and his wife is sick as shit so i can't get a hold of him for a bit lol

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#8916617 - 01/19/17 08:29 AM Re: So who is interested in buying an investment condo [Re: TheRealCSnapper]
Risky Business Offline
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Registered: 05/17/10
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If you move and rent your condo still remains your principal residence, it's only if you bought a second property. The whole point of this is for government not to allow people to cash in on property appreciation on more than 1 property.

If you are renting the new place where you live, you don't stand to profit from appreciation so it won't be an issue. WHen you sell your condo the entire appreciation will be tax free.

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