Quote:
Originally Posted by Gerbs
A few friends bought the Juno development in surrey. Studio units for $440K + GST and 1BR's at $550K + GST.
There's no way that's a reasonable buy is it? Juno sold them on the potential to 3x their deposit in 4 years. Friends said deposit is 10% down and they'll flip at completion @ 2-3% assignment fee. Can't go tits up.
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As far as I know, it's probably one of the more plausible flips.
Only 10% down
2028 completion
Hoping interest rates come down
1.5% assignment + $1,200 administration fee. (0% assignment fee if first 75 buyers)
3x their deposit seems a little much. I was giving it more of a 100% return on deposit. So they would make maybe $50k.
Worst case is they would have to rent it out and lose maybe $500 a month on it cash flow wise.
Right now you can buy a studio at Surrey Central for $380k, so they speculating real estate to go up by at least 10% in four years, which isn't out of this world.
I would say it's worth the risk for some, but I don't feel anyone has really ran the numbers or done a proper risk assessment of it.
I was about to do the same, but I rather buy stocks. The more I look into real estate as an investment in BC, the more it doesn't make sense. Stocks are easier to manage if you can control your emotions.