COVID and the housing market | Page 129 | GTAMotorcycle.com

COVID and the housing market

GreyGhost said:
Another post that I dont know if it belongs in election or housing thread. If a political party believed that a home price correction was the right way forward, they could implement principal residence capital gain tax effective in something like four or six months. That gives people time to get out and lock in money before it gets taxed. The rush of people trying to get out and dodge a ~25% tax could drop prices 15 to 20% quickly.
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No ones going to do that. 20% drop in a few months would decimate the market and no one has the political chops to push that through.

Not sure about you but I sure as hell wouldn’t want my house dropping 20% for ‘reasons’. Even if I don’t plan on selling anytime soon.

My better solution is fund the creation of the CRA Capital Gains Fraud division go back the last 10 years and anyone found moving houses every 13 months (or whatever) to evade capital gains tax gets to pay back taxes.

Crack down on flippers using capital gain tax exemption rules to make millions without paying tax.
 
mimico_polak said:
No ones going to do that. 20% drop in a few months would decimate the market and no one has the political chops to push that through.

Not sure about you but I sure as hell wouldn’t want my house dropping 20% for ‘reasons’. Even if I don’t plan on selling anytime soon.

My better solution is fund the creation of the CRA Capital Gains Fraud division go back the last 10 years and anyone found moving houses every 13 months (or whatever) to evade capital gains tax gets to pay back taxes.

Crack down on flippers using capital gain tax exemption rules to make millions without paying tax.
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I don't think it's a good idea, I'm just saying I think it is possible for the politicians to get a meaningful market correction if they wanted to. After last years crazy runup, a 20% correction is just pretend money for me anyway. I've had that before with foreign buyers tax. The current price is a fake price so I don't put faith in it.

Taxing flipping makes sense. It's a job.

I still think unlimited CG exemption on principal residence is a bad policy even if you are talking about individual homeowners that don't abuse it. Baking haves and have nots into tax code offends me (and I know that distinction makes up most of the tax code).
 
mimico_polak said:
No ones going to do that. 20% drop in a few months would decimate the market and no one has the political chops to push that through.

Not sure about you but I sure as hell wouldn’t want my house dropping 20% for ‘reasons’. Even if I don’t plan on selling anytime soon.

My better solution is fund the creation of the CRA Capital Gains Fraud division go back the last 10 years and anyone found moving houses every 13 months (or whatever) to evade capital gains tax gets to pay back taxes.

Crack down on flippers using capital gain tax exemption rules to make millions without paying tax.
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Door swings both ways. Can’t just gain value ‘because’ and be fine with it.
 
Evoex said:
Door swings both ways. Can’t just gain value ‘because’ and be fine with it.
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True. But it’s fun isn’t it?

I mean we’re all smart investors when things go our way right? otherwise it’s not our fault…someone screwed us.

But yes I agree. It’s a tough call and no simple solution as a ‘one size fits all’.
 
GreyGhost said:
Another post that I dont know if it belongs in election or housing thread. If a political party believed that a home price correction was the right way forward, they could implement principal residence capital gain tax effective in something like four or six months. That gives people time to get out and lock in money before it gets taxed. The rush of people trying to get out and dodge a ~25% tax could drop prices 15 to 20% quickly.
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Or reduce the number of houses changing hands, stiffle the market and all related industry , movers, lawyers , agents , painters ...... the gov't needs to focus on governing , not socialism .
I'm not convinced the gov't will EVER offer a workable solution to affordable housing. What could really work is a europe style of lane houses, 2nd houses on lots and easier access to permits to allow folks to build . If urban density is what they are working towards in many locales , make the process easier.
 
mimico_polak said:
True. But it’s fun isn’t it?

I mean we’re all smart investors when things go our way right? otherwise it’s not our fault…someone screwed us.

But yes I agree. It’s a tough call and no simple solution as a ‘one size fits all’.
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crankcall said:
Or reduce the number of houses changing hands, stiffle the market and all related industry , movers, lawyers , agents , painters ...... the gov't needs to focus on governing , not socialism .
I'm not convinced the gov't will EVER offer a workable solution to affordable housing. What could really work is a europe style of lane houses, 2nd houses on lots and easier access to permits to allow folks to build . If urban density is what they are working towards in many locales , make the process easier.
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That's what barrie is doing now. Backyard houses are renting for 1800 to 2500. Not terrible but still not exactly affordable for many people.
 
Ooooo just remembered....slightly off topic.

Anyone know / recommend a builder / architect in the Barrie/Simcoe area? Parents have this silly notion to expand on the cottage in their 70s so somehow that fell on me to research.
 
mimico_polak said:
Ooooo just remembered....slightly off topic.

Anyone know / recommend a builder / architect in the Barrie/Simcoe area? Parents have this silly notion to expand on the cottage in their 70s so somehow that fell on me to research.
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Talk to Norbert at alair homes springwater. I havent used him but he seems like a nice guy and his work looks nice from a distance (maybe up close too but I havent dug that deep).

Given the rapid price escalation, I suspect that flatten and start again makes more sense than addition but we'll see how it works out.
 
This is a very long thread. Anyone seeing any signs of the market cooling off? A house in Palgrave just sold for $360,000 over asking price!

The guy formerly known as Mladin.
 
-Maverick- said:
This is a very long thread. Anyone seeing any signs of the market cooling off? A house in Palgrave just sold for $360,000 over asking price!

The guy formerly known as Mladin.
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Cooling compared to march when every house was multiple offers? Already happened. Cooling as in prices dropping to affordability? Not going to happen. They're still climbing faster than a normal family can save.
 
Lightcycle said:
That's the thing, you can rent property from a landlord or you can rent money from the bank, it's six of one, half dozen of the other...

YMMV, but my portfolio has appreciated faster than my landlord's property value.
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I moved back to Canada 20 years ago. Since then for every $1 invested in my house I have put $2 into non-real estate investments. My house equity exceeds the equity in my portfolio by a bit. But considering my house is 1) a tax free gain & 2) saving me $3000/mo in rent that I can instead pole back into investments.

Hard to argue against home ownership.
 
Mad Mike said:
I moved back to Canada 20 years ago. Since then for every $1 invested in my house I have put $2 into non-real estate investments. My house equity exceeds the equity in my portfolio by a bit. But considering my house is 1) a tax free gain & 2) saving me $3000/mo in rent that I can instead pole back into investments.

Hard to argue against home ownership.
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Well, it's obvious I'm doing something wrong then. 🤷‍♂️
 
GreyGhost said:
Craziness continues. House nearby just sold. Very very similar house to the neighbouring house that sold in May (current sale is 300 legal sq ft larger). This one sold for 225K more.
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Next house in the strip just went up for sale. Purchased in 2010 for X, tried unsuccessfully to sell in 2013, 2014 and 2015 for ~X (listed 11 times). Just listed for 2.3X which is 175K more than the neighbour that sold three weeks ago. This one has a house ~600 sq ft larger and a lot ~10% smaller. Extra bay in the garage and heated garage floors though. :)
 
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Average semi in GTA is now over 1M. Average detached is 1.4M.

www.insauga.com

Sales down but average price of a detached house still well above $1 million in Mississauga | INsauga

If you’re searching for a house in Mississauga, you might have to zero in on a smaller property as the average price of a detached house is still well above the $1 million mark. Although sales are down from August 2020 in Mississauga and the average house price sits at $962,679, the average...
www.insauga.com www.insauga.com

Blog-Infographic-Template-TRREB-August2021-1-scaled-1.jpeg
 
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