Charlottetown PEI

[slowly]

I'm starting research for investment properties in Charlottetown PEI. I live in Alberta so I'd need a PM/Realtor out there. Has anyone had much experience with investing in maritimes? The initial interest for me are the affordable housing, low vacancy rates, and a high demand for rentals. Anything else I should be looking for?

 

[Matt Crowley]

$/SF, months to exit, sales to listing, if affordable and low vacancy what happens when vacancy rises, how much will rents fall?

Why would real estate values go up? (Form your investment thesis) How are you adding value?
What is the B/E (break even) exit price? (After Realtor fees, closing costs, legal, and initial vacancy and exit cost below, this is usually about a 6% minimum appreciation from purchase price)
What return do you need to accept this risk? Does this investment meet it (include 4.5% Realtor fee, closing costs, any lost rent from vacancy while showing). Find a proxy for return NACREIF, XRE and include the div yield + stock appreciation. Can you beat that index?

 

[slowly]

$/SF, months to exit, sales to listing, if affordable and low vacancy what happens when vacancy rises, how much will rents fall?

Why would real estate values go up? (Form your investment thesis) How are you adding value?
What is the B/E (break even) exit price? (After Realtor fees, closing costs, legal, and initial vacancy and exit cost below, this is usually about a 6% minimum appreciation from purchase price)
What return do you need to accept this risk? Does this investment meet it (include 4.5% Realtor fee, closing costs, any lost rent from vacancy while showing). Find a proxy for return NACREIF, XRE and include the div yield + stock appreciation. Can you beat that index?

Thanks for that Matt. I'm assuming I can find this data on sites like CMHC? What other resources would you recommend?

 

[Matt Crowley]

Yes the CMHC portal is great for getting an idea of overall trends (https://www03.cmhc-schl.gc.ca/hmiportal/en/)

Ultimately, I would build a database from Kijiji or whatever is the most prominent site for rentals. If you track every unit on the market and update over even two months you will have an excellent idea of market rent and absorption. The way I set it up is to monitor the exact unit so I can get a proxy for absorption.

Realtor.ca is a good source for value of units. Unfortunately, sold data is not public which is total crap as 99.99999% of Realtors have no clue how to build a regression or index to compare the value of properties. Consumers are left watching market prices which may not be reflective of actual sold prices. I'd build another database of houses for sale and then compare that against the rents that can be expected from those units.

Good models for cash flow: https://drive.google.com/drive/folders/0B5QD2Kz4n4a4UmlYSlRfVi1mNVU

Financial modelling process is essentially the same from a modelling perspective for SFH vs. multifamily.

 

[Amol Muzumdar]

For sold data there is an amazing unknown site. Works in Toronto, don't know whether it works across Canada. http://watch.ohmyhome.ca

Sent from my HTC Desire 626s using myREINspace mobile app

 

[Hilary Kohal]

I clicked on the link but didn't see any info re/sold data. Can you advise? Thanks.