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Claeren · 01-04-2009, 10:12 AM

^ The 'Nova' Building downtown seems to have had a glut of units hit the rental market. I have seen a significant number of large 2-bedroom/2-bathroom suites that must have been priced above $500,000 at the peak of the boom going for as low as (individually) $1695/month! INCLUDING internet and cable! The builder is even seemingly (maybe it was one large speculator?) renting out multiple units for $1800/month.

The condo fees and property taxes alone must be close to half of that amount! Or the mortgage alone close to double that amount! Crazy....

Rental prices had been holding up pretty well but in the last few weeks I have seen peak priced $2200/month houses for $1800 and $1800 houses for $1400. With many many more perks like free months rent, Plasma TVs or cable/internet being thrown in for 'free' upfront.

Likewise with condos.

I think the big thing is that the bigger drops are in the "faux luxury" segments (which i just remembered I predicted here like a year ago?). There will always be plenty of entry level renters, but getting cash flow out of the higher priced properties, especially when the luxury is only in the sales material and not the actual build quality, is a tough sell. THAT is where you can find a lot of property for your rental dollar right now and more so into spring/summer.

Claeren.

01-04-2009, 10:12 AM	#498
Claeren Franchise Player Join Date: Jul 2003 Location: Section 218 Exp:	^ The 'Nova' Building downtown seems to have had a glut of units hit the rental market. I have seen a significant number of large 2-bedroom/2-bathroom suites that must have been priced above $500,000 at the peak of the boom going for as low as (individually) $1695/month! INCLUDING internet and cable! The builder is even seemingly (maybe it was one large speculator?) renting out multiple units for $1800/month. The condo fees and property taxes alone must be close to half of that amount! Or the mortgage alone close to double that amount! Crazy.... Rental prices had been holding up pretty well but in the last few weeks I have seen peak priced $2200/month houses for $1800 and $1800 houses for $1400. With many many more perks like free months rent, Plasma TVs or cable/internet being thrown in for 'free' upfront. Likewise with condos. I think the big thing is that the bigger drops are in the "faux luxury" segments (which i just remembered I predicted here like a year ago?). There will always be plenty of entry level renters, but getting cash flow out of the higher priced properties, especially when the luxury is only in the sales material and not the actual build quality, is a tough sell. THAT is where you can find a lot of property for your rental dollar right now and more so into spring/summer. Claeren. Last edited by Claeren; 01-04-2009 at 10:36 AM.