I have nothing against renters, I was one before I bought in 2012 (I rented from 2008-2012) while I was finishing my degrees and before I got married. I got my house in the burbs for 412K in 2012 at peak it hit just over 920K and now it is back sitting around 840K.

But if I had to rent bunk beds for 8K a month…I would have just left Ontario, my degree is transferable and the phenom of online employment has been in steady growth and will grow more making where you live less relevant and allowing millennials and older millenials (of which I think I may be 36yrs old) able to chase affordability in terms of living local. My husband has been thinking of transferring to the Ottawa leg of his company, and my teaching degree works pretty sweet in Ottawa as well. So if LOLs dream of making billions to sandwich people into bunk beds in the units he was clever enough to buy at peak and for some reason it doesn’t occur to anyone that they could just buy newly slashed bubble burst properties and pay less than LOLs rent they could always just take their combined gross pretax 230K families somewhere else? Or is that wrong? they have to line up to pay 8K to rent a bed? If shit doesn’t improve here lots of people will move. Sorry to say LOL but you can’t force them to stay here and pay peak prices from 5 years plus ago at a 30% year over year appreciation (that you clearly NEED) to unload your properties at a magic profit to when the dude next door is selling the same unit at a 15-40% discount. Nor will they stick around and pay you 8K a month for bunkbeds when the dude across the street is renting a 2 bedroom unit for like $1,800 a month. But fuck man 8K for bunk beds for the top 1% of income earners will for sure create a society that whole world envies and can’t wait to live in!! BUY MORE PROPERTIES TOMORROW. Fuck you want a cute detached in the burbs I can give you a deal, only 1.4 for you, but you need to buy tomorrow! Just charge your renters 30K a month in rent, 10 different families line up for that and then I can find you bunk beds on the cheap!

I don’t rent. But I do count, and can think. I can not imagine a functioning society where two income 300K plus family with maybe a kid or two will run to pay you 50% more in rent then they do today to rent a house (about 8K rent) when they are only clearing 10.5K a month and when at that point they can just go buy a bubble burst detached and pay only 4-5K in mortgage? Is the reason that they will all line up in the 1000s to do this that you need to meet your caprate? This would be a 300K family btw…will they stay in Ontario and live in bunk beds to help you make the 50% more rent you need? What about the 200K families, the 100K, the average ontario median of 68K will they all pay you 5K a month to live in a cage? OF COURSE THEY WILL. It makes sense, because you need them to. Go buy more property to rent…do it fast!

There is a general consensus in the financial community that 2020-2021 will see a global economic recession

These are “posted” rates. Bank typically give a 2ish% discount on their posted rates to good clients (i.e. people with good credit), although the exact rate of that discount has varied a bit over the years.

But lazy millennials here who complain about high prices just want a free ride. Stop eating $10 avocados toasts. Get a real job and save for a house like the people before you. If not, just rent… don’t care…. line my pockets!

Here is why:
“New purpose-built rental construction surged in Q2, with 2,635 starts recorded during the quarter, raising the total inventory under construction to 11,073 units — the highest in at least 30 years
The number of planned rentals also grew, reaching a total of 120 projects and 37,403 units”
“The inventory of rentals underway is now higher than the total number of units built since 2005 (10,871).”

https://www.urbanation.ca/news/226-rapid-rent-growth-continues-while-construction-reaches-30-year-high

There is a ton of supply coming both in condo and PBR sectors. Private landlords better to track those stats.

You stated:

“Foxxy, you may learn a definition of caprate. What we were talking about is that rent paychecks should cover mortgage, maintenance, taxes and perfectly leave some extra money in the pocket each month.
It is a basic fundamental and each landlord would better follow that guidance. ”

Slow down bubba, what Foxxy is saying is exactly that, I will simplify that fuck out of it for you:

You are right! Landlords can not operate a profitable venture unless they cover everything and have excess at the end!

But renters can’t and won’t pay more money then they have.
As prices drop to fuck in line with interest rate rises to over 6% stressed tested at 8% properties will become A LOT CHEAPER and the people who bought unable to carry much profit on a rental will become SCREWED (peak buyers) because they won’t be able to get the rent they need because some newbie landlord who picked up your unit for 35% less than you paid will be offering it for a profit to himself not giving a fuck how much you or other likes need to spin a profit.

What renter is going to rent your unit for 20K a month on a salary after tax of 4K a month when the newbie who bought at crash prices is renting it for $1,800 a month just because that is how much you neeeeeeeeeeeeeeeeeeeeeeeeeeed to turn a profit now that rates have risen and you are backwards on the mortgage and can’t sell it for the 800K you paid for it?

In conclusions, you also have rising maintenance fees and are taxed on your profits against your net.

NO ONE CARES how much a dude who bought high needs to make to save his ass in rent.

But hell, I could wrong, perhaps household with 5K combined after taxes will run at you like bats to pay you $8500 a month in rent instead of buying and paying less mortgage or renting from the cheaper dude.

You do you babe, go buy more condos, this shit is going up for infinity! You win. #makessene

So now that it is so hard for landlords because of the rules, why would the recent ones who paid record prices and are cash flow negative hold onto their investment if prices start to drop. You have no logic…….lol

WHEN prices drop, true investors will step into the market and buy the liquidated assets on the cheap at better cap rates, perhaps if a situation emerges where a REIT or similar institution would step in and buy the building to convert it to a PBR.