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I've been reading that the condo scene in the big cities is going to be extra bad with this downturn because:
I actually think the Canadian RE bubble will totally burst and crash with recent events. I think the fun is over.

Commercial lending has completely frozen up, and all banks and institutions are re-evaluating their lending. I don't think anyone is going to continue lending to real estate related corporations (which includes corps with RE portfolios, malls, office space, but also builders and RE services)

And I think anyone who has a RE related business, including small guys who leveraged to buy several properties, are about to be ruined.
 

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As an aside, it does remove long-term residential accommodation capacity away from city residents which causes an artificial shortage and cause long-term rental prices to rise. It's pretty much similar to the Uber vs taxi arguments.
It's much worse than Uber actually. Unlike Airbnb, Uber does not remove road capacity or cars from the local population. Nor does it cause unreasonable issues with neighbors. There is also the matter or Airbnb not paying commercial property taxes and not paying towards the tourism funds which exist in many places (unless that has changed recently?). Add to that using cheap contractual labor with no oversight for housekeeping vs hotels which tend to have unions and (I presume) inspections every now and then.

I'm all for the original Airbnb idea of people renting a room in their actual home, like traditional B&Bs. Or even their entire home while they're on vacation elsewhere for a few weeks. But Airbnb "distributed hotels" need to die a horrible death.
 

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It's much worse than Uber actually. Unlike Airbnb, Uber does not remove road capacity or cars from the local population. Nor does it cause unreasonable issues with neighbors. There is also the matter or Airbnb not paying commercial property taxes and not paying towards the tourism funds which exist in many places (unless that has changed recently?). Add to that using cheap contractual labor with no oversight for housekeeping vs hotels which tend to have unions and (I presume) inspections every now and then.

I'm all for the original Airbnb idea of people renting a room in their actual home, like traditional B&Bs. Or even their entire home while they're on vacation elsewhere for a few weeks. But Airbnb "distributed hotels" need to die a horrible death.
Yeah, my fault. I had originally wrote the Uber comment, but then added the preceding sentence afterwards, which made it a little misleading. For the record, Quebec does have AirBnB owners pay the normal tourism/hotel taxes, which makes it a little less lucrative in Quebec. I don't know if any other jurisdictions do as well.

But I agree with you about the original concept of providing a service for B&Bs to find tourists, and not so much about the idea that you own a bunch of rooms and never interact with those who rent.
 

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JAG said he owned many low end rental properties and had used 100% mortgage leveraging.

If that were true, he would be at ground zero for defaulting low income tenants. I don't know if landlord can evict in his Province.

This is the black swan for that kind of real estate "investing". This is the scenario that could "never happen".
Don't think he's leveraged 100%. If I recall correctly, he's financed his purchase price 100% but the property gained value so he's most likely no higher than 80%.

He might be headed for some turbulence but that's a risk he assumed while acquiring the properties. I wouldn't be too concerned for him.

Those who should be concerned are indeed those who are highly leveraged. Unfortunately, everyone believe they are RE experts until they hit a crisis like the one we're currently living. Very few are able to weather the storm.
 

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^
My recollection is his purchases are financed 100% but he vigorously pays down the mortgage with extra payments.
Anyway, he's going to have a serious cash flow problem as tenants don't have to pay rent, and can't evict them. In the meantime selling property for cash is suspect. Quite frankly, this could wipe out a lot of landlords.
 

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As I recall, he buys cash, for cheap and skipping a lot of the usual process because cash. Then renovates if required and rents. Then mortgages the property to get cash for his next purchase.

So it really depends how agressive he was in expanding. He could have a lot of older properties with significant equity. Or not. I don't remember if he had tricks to go above 80% LTV. I do remember some talk about trying 4 or 5 different departments of the same bank to get loans though. At least I think that was from him.
 

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Sorry to have been a way a while, I was looking into my buy and hold investments and buying up some stocks while they are on sale. Been getting double digit returns lately.

No need to worry about my real estate holdings, the government is handing out cash to pay the rent, all my places are full and I’ve got my Standard income every month. Had someone offer me their three bedroom place for 80k the other day, but I don’t want to pay that much for it considering the current market conditions. If they want out of the rental business, they’ll have to do better. It’s a great time to make money right now.
 

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It's much worse than Uber actually. Unlike Airbnb, Uber does not remove road capacity or cars from the local population. Nor does it cause unreasonable issues with neighbors. There is also the matter or Airbnb not paying commercial property taxes and not paying towards the tourism funds which exist in many places (unless that has changed recently?). Add to that using cheap contractual labor with no oversight for housekeeping vs hotels which tend to have unions and (I presume) inspections every now and then.

I'm all for the original Airbnb idea of people renting a room in their actual home, like traditional B&Bs. Or even their entire home while they're on vacation elsewhere for a few weeks. But Airbnb "distributed hotels" need to die a horrible death.
I am very much against what AirBnB turned into. It will put a smile on my face to see those abusing the original concept fall flat on their faces right now. With no one travelling, hopefully those renting out multiple units and in fact running a defacto hotel business will be hard hit.

Those renting out one room in the house they live will also take a bit of a hit but it is far less likely to be a hard hit.

I don't think most people who rent through AirBnB even know what the original concept was. They just see it as a cheaper rental than a hotel and that's all they care about. Even the name escapes their notice. AirBnB originally meant renting an 'Airbed on the floor of a room in your home'. Much like a normal BnB only intended to be something done when for example a convention was in your city and no hotel rooms were available for rent. A last minute way of getting a place to sleep for the buyer and a way for the homeowner to make a few extra bucks once in a while. That was the concept.
 

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Sorry to have been a way a while, I was looking into my buy and hold investments and buying up some stocks while they are on sale. Been getting double digit returns lately.

No need to worry about my real estate holdings, the government is handing out cash to pay the rent, all my places are full and I’ve got my Standard income every month. Had someone offer me their three bedroom place for 80k the other day, but I don’t want to pay that much for it considering the current market conditions. If they want out of the rental business, they’ll have to do better. It’s a great time to make money right now.
Good to hear you are doing OK. I just bought some wine that was put up for sale by a prominent NYC restaurant that I presume needed some cash right now. Firesale price. It will sit in a NYC wine warehouse(minimal cost) until things get back to the 'new normal', whatever and whenever that might be. Even if it has to sit for say 2 years before I sell and even if I have to sell at the pre-Covid19 market price, I should be able to get a 40% return on the purchase price. I consider that a decent return for a 2 year investment.
 

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i bought husky energy at $3, it’s around 4.50 today a week later...I think a 50% roi in a week is a decent investmen....even though I generally don’t like the oil sector.
I do like the stability of the monthly rents that come in each month. Not many people willing to jepeodize their homes to save a couple of bucks.
But, then again, I’ve only been through several downturns over the years, what would I know about making money compared to all these armchair experts.
 

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JAG:"buying up some stocks while they are on sale. Been getting double digit returns lately."
hi Jag..any other examples, besides Husky?
 

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JAG:"buying up some stocks while they are on sale. Been getting double digit returns lately."
hi Jag..any other examples, besides Husky?
Disney, cedar park (fun), TD, live nation, tyson foods, coke, Boston pizza, maybe a couple of others...all things I use and understand.

yeah, I know, it can’t be done...

i was also helping a buddy get into stocks, he’s up 25% overall with his choices.
 

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i bought husky energy at $3, it’s around 4.50 today a week later...I think a 50% roi in a week is a decent investmen....even though I generally don’t like the oil sector.
I do like the stability of the monthly rents that come in each month. Not many people willing to jepeodize their homes to save a couple of bucks.
But, then again, I’ve only been through several downturns over the years, what would I know about making money compared to all these armchair experts.
Only took two posts for the king of un-invited snark to return to his trademark style.

Whoever thought this thread was a good idea Lol?
 

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Disney, cedar park (fun), TD, live nation, tyson foods, coke, Boston pizza, maybe a couple of others...all things I use and understand
Only took two posts for the king of un-invited snark to return to his trademark style.

Whoever thought this thread was a good idea Lol?
sorry I’m stepping on your toes. Took you only one post.
 

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i bought husky energy at $3, it’s around 4.50 today a week later...I think a 50% roi in a week is a decent investmen....even though I generally don’t like the oil sector.
I do like the stability of the monthly rents that come in each month. Not many people willing to jepeodize their homes to save a couple of bucks.
But, then again, I’ve only been through several downturns over the years, what would I know about making money compared to all these armchair experts.
It is only a 50% ROI if you sold Just a Guy. Otherwise it is just a 'paper profit' which so many posters here always seem to not understand. So should I presume that you did sell?
 

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No, I’m a buy and hold investor I admit...however my stocks are margined so I can access the profits to buy other stuff Without triggering the capital gains. Had I done that I would have lost out on more money as its up to 4.82 today.

are you sure you won’t drink away your “profits” and sell the wine instead? Two years is a long time...no pun intended.
 
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