COVID and the housing market | Page 134 | GTAMotorcycle.com

COVID and the housing market

1.15M for a property only to tear it down and rebuild WAY better! With an income producing unit as well. I’m def in the wrong business…
mimico_polak said:
torontolife.com

This couple built a $500,000 laneway house at Pape and Danforth. Now they're renting it out for $2,500 a month

The extra income helps cover the mortgage
torontolife.com torontolife.com
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1.15M for the property, 1.35M for the main house and 500k for the laneway = 3M spent total on property and build.
basement and laneway nets them $4600 a month.
rentals pay just under half their mortgage, helps but I still wouldn't be able to afford that
 
killvino said:
1.15M for a property only to tear it down and rebuild WAY better! With an income producing unit as well. I’m def in the wrong business…


1.15M for the property, 1.35M for the main house and 500k for the laneway = 3M spent total on property and build.
basement and laneway nets them $4600 a month.
rentals pay just under half their mortgage, helps but I still wouldn't be able to afford that
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How do you know how big their mortgage is? They needed 3M for this one but sold an existing house, for all we know, they could have cleared 2M on the existing house. They said the $4600 "help them cover the mortgage and supplement their savings." which is a strange phrase. It almost sounds like that more than pays the mortgage. I suspect a mortgage of 1M on a property worth 3M with rental units and at least one spouse having a rocking salary and the other having a steady job wouldn't be that hard to get.
 
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GreyGhost said:
How do you know how big their mortgage is? They needed 3M for this one but sold an existing house, for all we know, they could have cleared 2M on the existing house. They said the $4600 "help them cover the mortgage and supplement their savings." which is a strange phrase. It almost sounds like that more than pays the mortgage. A mortgage of 1M on a property worth 3M with rental units and at least one spouse having a rocking salary and the other having a steady job, I suspect the mortgage wouldn't be that hard to get.
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just on the basis of 20% down. yes, aware that things could be very different either way (less down or more).
 
killvino said:
just on the basis of 20% down. yes, aware that things could be very different either way (less down or more).
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I agree, I don't see that getting approved at 20% down. It's not a clean property that would be easy for the bank to flip to get their money back. Payments on a $2.5M mortgage would suck and require a huge paper salary to cover.
 
GreyGhost said:
I agree, I don't see that getting approved at 20% down. It's not a clean property that would be easy for the bank to flip to get their money back. Payments on a $2.5M mortgage would suck and require a huge paper salary to cover.
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yup, just wanted to do the math to see if it was a good investment but with that much lump sum required or huge mortgage. it is does not appear so.
 
Any GTAM members want to sublet a room and a spot for my car and bike next spring 🤗. Closer to Mississauga. PM meee
 
killvino said:
yup, just wanted to do the math to see if it was a good investment but with that much lump sum required or huge mortgage. it is does not appear so.
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To do the math on the "investment" you need to look at the differential between that lot developed as a typical single family dwelling and the three dwelling complex they made. Buying the lot was 1.15, that doesn't change with the number of dwellings. Obviously no lane suite would subtract 500 but you need to add back ~25K for a garage. If you built the basement as a typical basement (maybe not 9' ceilings, no second kitchen, no requirement for firebreak, separate entrance etc), that might save you 50K but lets be generous and say 100K. So for three dwellings they are in for 3M, for one dwelling they are in for 3M-475K-100K=2.425M. So the investment math is was investing 575K worth it for 4600 in monthly revenue. Hell ya. If you bought a typical dwelling to rent out it would cost you double and return half.

Obviously they could have done things cheaper if they wanted to live in the old house (1.15+500) gives them a house and 2500 a month in rental income. Building the new house was a want not a financial decision.
 
jc100 said:
I have a shed……in Kingston…..if you build the rest of it.

Let’s say 4K a month and you can have as much water from the hose as you like.
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If you want near barrie, I can offer a shed with washroon and hot water (once i finish installing this bleeping faucet).
 
Well the air is not completely out of the balloon. Coming soon signs went up on an almost double lot (single lot, almost twice the size of the rest, second driveway to side yard which could presumably hold a kickass toy garage). Someone saw the signs and within an hour it was sold. Presumably they made an offer that was good enough that looking for competitive offers wasnt worthwhile.
 
I suspect ( actually dont suspect) many prime properties have been matched to a prospective owner before the sign even goes up. The sign goes up for marketing purposes of the agents.
My agent has my 'wish list' in her file, if it becomes available I'll be her first call, if the money and value are right, I may be the only call.

My moms house ( 10 acres in Campbellville on dead end road on escarpment) sold with one viewing and was never formally listed. Right guy, right price, gone.
 
So, what is the magic number if an agent knocks on your door and wants a 24 hour listing because they have a cash buyer?

Do you add 25%, 50% or 100% to what you would guess it would sell for?

Then you hope you have enough to bribe someone else into selling.

BTW the neighbours friend that sold and starting renting a year ago is still waiting for the crash.

If he is in the very high end market it could work because those ones crash harder but also take longer to un-crash. We'll know better in 10 years.
 
nobbie48 said:
So, what is the magic number if an agent knocks on your door and wants a 24 hour listing because they have a cash buyer?
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$2M and I’ll be gone within 2 weeks. Totally unrealistic … but it’s nice to dream. Would leave me about 1.5 in cash. I’m sure I can find a suitable house for that.
 
mimico_polak said:
$2M and I’ll be gone within 2 weeks. Totally unrealistic … but it’s nice to dream. Would leave me about 1.5 in cash. I’m sure I can find a suitable house for that.
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You're more amenible than I am. I like my house, my wife likes our house. We dont really have a move we would want to do (i want more land, she wants to stay in a subdivision, on the water could be nice but ridiculous property tax rules that out). For me to leave needs to be about 7 figures above fair market value.
 
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GreyGhost said:
You're more amenible than I am. I like my house, my wife likes our house. We dont really have a move we would want to do (i want more land, she wants to stay in a subdivision, on the water could be nice but ridiculous property tax rules that out). For me to leave needs to be about 7 figures above fair market value.
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I wanna move to the rich part of credit woodlands…north of it! 500m!
 
nobbie48 said:
So, what is the magic number if an agent knocks on your door and wants a 24 hour listing because they have a cash buyer?

Do you add 25%, 50% or 100% to what you would guess it would sell for?

Then you hope you have enough to bribe someone else into selling.

BTW the neighbours friend that sold and starting renting a year ago is still waiting for the crash.

If he is in the very high end market it could work because those ones crash harder but also take longer to un-crash. We'll know better in 10 years.
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We had this conversation when we moved into our new build home earlier this year. Our realtor buddy was visiting and said the place would sell for $500,000 more than it had cost us to build it. Wife asked me if I'd consider selling and I said yes if the offer was that plus another $200k. If we listed right now we'd likely get close to that $700k profit amount but I haven't found land to buy so we'll stay put until we do. Wife loves our new build but like any build you discover things you'd do different next time so there's fun in that.
 
For me it would have to be 1 m over market f moving I have way too much stuff and would not consider less than 50 acres next time. I still have stuff in boxes from 7 years ago when we moved last.

Sent using a thumb maybe 2
 
Friend just got $200,000 over asking for a cottage.
 
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