Is anybody building new rentals?

[DanieLL]

Hi,


I was thinking of a post dedicated to investors who are building or planning to build, rentals nation-wide.


I`ve heard that in many areas it does not make sense to invest money in new vs resales. Does anyone think differently?





Does anybody have an idea about updated costs on:


masonry building.


concrete foundation + 3-story modular?

 

[Thomas Beyer]

[quote user=DanieLL]concrete foundation + 3-story modular?


yes this makes sense in some locations .. we've looked at that and are considering it .. build for about $100/ft plus land

 

[housingrental]

In certain markets, student housing rentals work for new construction as:



Higher rent per sq ft.



Reduced build cost per sq ft. often re average sq. ft. per unit often higher - ie most cost with kitchen - with 1300 sqft per kitchen vs 700 sq ft per kitchen in non student building



Reduced build cost per sq ft. often possible re smaller window size possible, cheaper finishings possible, and less costly / less sq f.t common area amenities often provided



Reduced cost relative to non student rentals often possible from lower development fees as a percent of rent / value



In non student rental thought process more often longer term to condoize and sell to owner occupier - increased chance of needing to make project provide underground parking = much higher cost per unit

 

[Thomas Beyer]

[quote user=housingrental]student housing rentals work for new construction


many universities have figured this out a while ago .. UBC for example is really one large landlord with an adjunct education facility !! They are building 2 new concrete towers with 600+ residences right now .. ditto Grant McEwan in Edmonton, UofA .. and likely others elsewhere !

 

[invst4profit]

Interesting in Ontario when they eliminated grade 13 all the universities began building residences to accommodate the increased enrollment.

However I suspect at some point in time enrollment will drop and universities will be reducing resident rates to fill those buildings.

This will, in my opinion, negatively impact landlords of student rentals likely resulting in some of the student ghettos, which presently surrounding every university, reverting back to private homes.



The upside in Ontario for new construction is that anything built after 1991 is exempt from rent controls.

 

[housingrental]

Good points Greg



Rental licensing - depending on how it's implemented and what actually ends up being enforceable - might also impact the character of neighborhoods around some Universities in Ontario in the near future



My guess is that rental near certain universities will do much better than some others that could be in trouble in the not too distant future. Rentals near universities that have a significant portion of foreign students, and that can consistently increase enrolement should still do quite well over time.

 

[Thomas Beyer]

[quote user=invst4profit]The upside in Ontario for new construction is that anything built after 1991 is exempt from rent controls.


is it ? as confirmed in which legal interpretation or in which law ?

 

[invst4profit]

Ontario RTA

Part (1) Section (6) Other exemptions, Rules relating to Rent (2c)

 

[fumbrunner]

[quote user=ThomasBeyer][quote user=invst4profit]The upside in Ontario for new construction is that anything built after 1991 is exempt from rent controls.


is it ? as confirmed in which legal interpretation or in which law ?





This is the case in most provinces that have rent controls. Manitoba has similar clauses.

 

[Mike Milovick]

Bill 140 is going to kill new rental construction, in Ontario, shortly.