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COVID and the housing market
- Thread starter mimico_polak
- Start date
Realtors just have to tell you there’s others looking at the place and are ready to deposit.
Typical agreement is renting agent gets 1 months rent as commission. Most times they don’t need to split it as majority of people don’t have agents working to help them rent. The higher the rent, the better the commission.
And the leap-frogging keeps repeating at well above official inflation numbers. Is it twice as hard (or does it take twice the work) to sell a house in 2021 vs 2018? Hell no. So why did their income double? Because we let the functional monopoly game the system.
On the rent side, todays headline increases tomorrows rent price which increases income again.
Yes.
I have no way to know if I was actually involved in a bidding war or if somebody was pulling my leg.
No matter what the asking price was, a bidding war would start. We gave up trying to avoid it.
IMO, this kind of behavior should be unacceptable. Have the balls to stand your god damn ground and have confidence in your price, or go **** yourself and get hit by a car (can you tell this is an emotional topic for me? lol)
Yikes good to know..
When I rented my last place (november 2020) I had to deal with a real estate agent for the first time. Place was listed considerably below market but I guess LL didn't wanna do the legwork himself. I was familiar with the house the unit was in so I was already 100% taking it irrespective of anything.
Needless to say, that realtor was a total piece of S***... busted my ass constantly, talking as if there was a million other people looking at the place ready to put money down. That being said, I never even considered the idea of bidding up a higher price. I rushed my paperwork in just in case he wasn't bluffing, but I can't believe anyone would consider bidding up on a rental... I would never in a million years play that game..
When I rented my last place (november 2020) I had to deal with a real estate agent for the first time. Place was listed considerably below market but I guess LL didn't wanna do the legwork himself. I was familiar with the house the unit was in so I was already 100% taking it irrespective of anything.
Needless to say, that realtor was a total piece of S***... busted my ass constantly, talking as if there was a million other people looking at the place ready to put money down. That being said, I never even considered the idea of bidding up a higher price. I rushed my paperwork in just in case he wasn't bluffing, but I can't believe anyone would consider bidding up on a rental... I would never in a million years play that game..
I had no idea they were doing this ******** on renting as well.
As a renter, what the blazes…
It's a self-fulfilling game though. You say that now and so did people before they bid hundreds of thousands over asking for a house. You miss out a few times (or a few dozen times) to others that are more desperate (or less smart) than you and eventually you become the desperate one and contribute to the rocket launch.
Honestly, If things keep going like this in the GTA, I will just have to get a move on regarding altering my career prospects and run for the hills to a different city/town/village/hamlet. I've been liking the city less and less as the days go by anyways - the only thing keeping me here is my friends, but I can learn to commute if it means my general quality of life improves by habitating elsewhere.
D
Deleted member 50930
Guest
Little villages aren't cheap anymore.
HouseSigma
housesigma.com
Landlord will just harass you with bylaw, N12 papers, lawyers etc. You can't win
Anyone else notice the coming soon signs are getting out of control? Up for more than a month before the listing goes live? It's a loophole and the association chooses to ostrich. Past decisions have said that once it goes for sale, it needs to be on MLS quickly. That is why many brokerages list it as a private listing for two days and then put it on MLS. If it's "coming soon", it is not listed yet and no clock has started. What an annoying bunch of people.
OREA's CEO is Tim Hudak. That explains a lot. OREA released the results of a survey that says non-owners are losing hope (big surprise). They also asked a bunch of other ridiculous questions.
"About 82 per cent of respondents said that they would support a new program that would allow renters to purchase equity in the property they are living in as “a way to get their foot in the door” while 89 per cent said that they would like to see increased tax rebates for first-time home buyers." So non-owners that are already stretched to the limit paying rent would like their landlord to give them an equity stake in the property? That doesn't sound at all complicated or impractical. Increased tax rebates? Don't they get the tax back already? Do they want the rebates more than they paid? That makes it income not a rebate.
www.cp24.com
"About 82 per cent of respondents said that they would support a new program that would allow renters to purchase equity in the property they are living in as “a way to get their foot in the door” while 89 per cent said that they would like to see increased tax rebates for first-time home buyers." So non-owners that are already stretched to the limit paying rent would like their landlord to give them an equity stake in the property? That doesn't sound at all complicated or impractical. Increased tax rebates? Don't they get the tax back already? Do they want the rebates more than they paid? That makes it income not a rebate.
Toronto, Canada & Global Breaking News – CP24
Most recent News News business news stories and video from CP24
www.cp24.com
Once? Is that actually happening?
Blind bidding as currently implemented is horrendous. They need to do something to clean up conditions prior to competitive bidding (either standard conditions or sellers accept the conditions as presented) and then move on to money. The winner should pay just above the second place bid (it doesn't matter too much whether it is $1, $100 or $1000). Right now the winner may pay 50K over bidder #2. If a client or RE agent is found to be submitting dodgy bids to juice the auction, there should be a huge hammer to serve as a lesson for others (RE banned for life, seller fine of 50% of sale price?).
Maddeaux article so plug your nose but she isn't entirely wrong. CMHC flips and flops at the governments behest and imo makes far more problems than it solves (while contributing to giant government payroll).
nationalpost.com
"We have a housing system where gains are privatized, but risks are socialized; where “have nots” find themselves guaranteeing the mortgages of the “haves.” If there was ever any doubt, the last year made it abundantly clear the CMHC’s market meddling isn’t only excessive, but actively harmful. It’s time to disband the CMHC."
Sabrina Maddeaux: The CMHC must be abolished before it craters Canada's economy
The Canada Mortgage and Housing Corporation was meant to help Canadians meet their housing needs. Instead, it’s created a Caligula’s palace of moral hazard
nationalpost.com
"We have a housing system where gains are privatized, but risks are socialized; where “have nots” find themselves guaranteeing the mortgages of the “haves.” If there was ever any doubt, the last year made it abundantly clear the CMHC’s market meddling isn’t only excessive, but actively harmful. It’s time to disband the CMHC."
Ill admit I dont know much about the CMHC but it always gave me the impression of a huge scam.
Default rates in Canada are around .3% from what Ive read.
Home values have been rising out of control for over a decade.
The probability that a mortgage will go into default and be underwater are slim to none.
Yet on a $500K home with 5% down CMHC charges $19K.
$19K on $475K is 4%
This is basically equivalent of expecting 1 in 25 of these mortgages to default and the home to be worth less than 95% of its value.
Its probably closer to 1 in 500.
CMHC must be making money hand over fist and paying out very little.
Regular insurance companies are lucky if their net profit is more than a few %.
Default rates in Canada are around .3% from what Ive read.
Home values have been rising out of control for over a decade.
The probability that a mortgage will go into default and be underwater are slim to none.
Yet on a $500K home with 5% down CMHC charges $19K.
$19K on $475K is 4%
This is basically equivalent of expecting 1 in 25 of these mortgages to default and the home to be worth less than 95% of its value.
Its probably closer to 1 in 500.
CMHC must be making money hand over fist and paying out very little.
Regular insurance companies are lucky if their net profit is more than a few %.
In the last round of stupidity, CMHC made it tougher to qualify then quickly reversed their decision as they were losing market share to private companies. Why would a nationalized entity that is theoretically designed to protect a segment of the economy (shady but reasonably true) be concerned about losing market share? If the protection exists without their involvement, obviously we don't need that nationalized entity any more.
D
Deleted member 50930
Guest
In your dreams
Trudeau is going to pump in so many immigrants to keep real estate going
If real estate goes down, Canada is in big trouble
You get a better rate if you put down 19.5% than 20% because at 19.5% the banks have zero risk as it’s CMHC backed. What the ****? I work my ass off to get more money down but get screwed because the banks see me as higher risk then the guaranteed no loss of the guy with 19.5%.
Get rid of them…useless.
Get rid of them…useless.
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