Quote:
Originally Posted by Wormius
I am not sure if this will be the right thread, but is there a way of finding data for the rental market, i.e.) how long it takes for certain properties in certain areas to get rented out? We have been entertaining the idea of buying a small condo to rent out, but aside from monitoring the units that are currently for rent on RentFaster to get an idea what the monthly rents are going at, the only way to figure out how long they are on the market for is to just check back occasionally to see if the property is still listed or not.
For reference, we are exploring some of the bachelor studios around Chinatown that go for about $100-150k and bring in about $850-900 / month minus condo fees of $300-$350. It's not a huge profit, but they're relatively low maintenance from what I remember.
Thoughts?
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I think you can get basic stats just about anywhere...
https://www03.cmhc-schl.gc.ca/hmip-p...hyName=Calgary
I'm not sure very many people are enjoying their condo ownership right now though. Condo fees are scary. The risk of huge special assessments is terrifying. Property taxes are due for a major increase. And condos are not going up in value at all and haven't for a really long time.
You'll have a month of vacancy once and a while but it won't amount to much. You'll probably have decent tenants who move every now and then leaving you with a few re rental costs here and there. But it won't be a big deal. I think your major risk is that which is beyond your control.
A friend bought a new condo in Bridgeland in 2006 for 225k. I don't think he had a day of vacancy the entire time. But he did get a 35k special assessment and several fee increases that turned his rental income into a small loss. He just sold it for 240k. Minus commissions and expenses he was almost 40k in capital short. But his mortgage was 60k lower. So it's pretty much a giant 13 year wash. Not worth the risk by any metric.
If you do buy, stop focusing on rental stats. Focus on the price you buy it for. That's all that's going to matter down the road. If you get a good deal on the buy it can mitigate some pain later on.