COVID and the housing market | Page 139 | GTAMotorcycle.com

COVID and the housing market

mimico_polak said:
Let’s see what happens in Canada next….heard on the radio yesterday rates are expected to start rising…

apple.news

Mortgage rates rise to an 8-month high, tanking refinance demand — CNBC

Mortgage rates have been on a tear this month, rising yet again last week to the highest level in eight months, according to the Mortgage Bankers Association.
apple.news apple.news
Click to expand...
The US interest rate game has always interested me. By having all existing buyers locked into a low rate for the entire time needed to pay off a dwelling, interest rate changes only affect those requesting new money. If rates take off, in 20 years, conceivably new buyers could be mathematically priced out of the market. If you manage to pay off your house, you can sell and buy another one (or pull some mortgage as it is a small percentage of property value. Without a crap-ton of equity, owning a dwelling could be impossible. For instance, if rates went to 12% from the current ~3%, if you tried to pull an 80% mortgage, you could easily be looking at $4000+ a month in interest. Basically locking in the haves and have nots with no opportunity for people to get in.
 
mimico_polak said:
These types of shenanigans don’t help the industry or pricing…

apple.news

Real estate agents caught on hidden camera breaking the law, steering buyers from low-commission homes — CBC News

A CBC Marketplace investigation has found that some real estate agents are breaking the law by steering unwitting buyers away from low-commission homes.
apple.news apple.news
Click to expand...

When my fiancee and I were buying a place, a bidding war started that jacked up the price 10%. We don't know if there was truly another buyer but I rmb telling her "we'll never know" but my gut feeling always assumes ppl are bypassing ethics, morals, and laws because if they can sleep at night (I can't, or I would) bypassing this stuff...there's always more money to be had.

So there's another way to **** over the buyer lol

GreyGhost said:
245853881_4426106910798658_8944666547349205833_n.png
Click to expand...

Makes perfect sense because you need a $200k single or $150k combined income to be considered for a million $ mortgage.

Ontario's average household income is $70k lol
 
油井緋色 said:
Makes perfect sense because you need a $200k single or $150k combined income to be considered for a million + mortgage.
Click to expand...
I was thinking the other day. I wonder if there's a ratio where banks don't bother wasting money on an appraisal. For instance, a single family home in a decent suburb where the buyer wants a 300K mortgage. The lot alone is worth more than that. The only way for the bank to lose is if it was a toxic waste dump but the appraisal wouldn't catch that either. It's probably just another $500 needless expense on each mortgage initiation. All of those $500's add up to a lot of money being lit on fire with very little benefit to anyone (other than appraisers). As part of the scam, appraisers charge more if your house is worth more. wtf. Charge based on how much work it is, not the price of the house. Saying that 100K loan is safe against a 2M house is a lot easier than saying that a 750K loan is safe against an 850K house.

If you want a 1M mortgage on a suburban house, someone should check that it isn't a complete turd but even then, the whole appraisal game is very weak. They try to appraise versus comps but if we are in a bubble as many claim, the comps are way overvalued. If they were to appraise vs the "worth" of the house (frigged if I know what that is, $50/sq ft of land plus $100/sq ft of house?) the vast majority of people could not afford to buy homes. It's all just a game.
 
GreyGhost said:
If you want a 1M mortgage on a suburban house, someone should check that it isn't a complete turd but even then, the whole appraisal game is very weak.
Click to expand...

Do they bother doing an appraisal?

I didn't do much research for buying housing (I'm in a condo.) They never checked the condo (makes sense why) but from your comment it sounds like banks do appraisals for homes before giving out mortgages?
 
油井緋色 said:
Do they bother doing an appraisal?

I didn't do much research for buying housing (I'm in a condo.) They never checked the condo (makes sense why) but from your comment it sounds like banks do appraisals for homes before giving out mortgages?
Click to expand...
It's all part of the smoke and mirrors game where the established crew gets rich (mortgage brokers, appraisers, real estate agents, lenders). The buyer is often required to pay for the appraisal but cannot see the results. The lender pays nothing but gets to see the results. wtf. Showing it to the lender makes sense, blocking me from seeing what I paid for makes no sense.
 
油井緋色 said:
Do they bother doing an appraisal?

I didn't do much research for buying housing (I'm in a condo.) They never checked the condo (makes sense why) but from your comment it sounds like banks do appraisals for homes before giving out mortgages?
Click to expand...
Ya they do. We had our townhouse appraised. It basically involved a guy driving up to the complex to make sure it’s there.

Same for our current house. Google maps ‘yup, there’s a house there….you’re good’

EDIT: as @GreyGhost typed at the same time…we were given ‘free’ appraisals at all times. Only time they wanted money is when I wanted to refinance the investment property but we bailed after they gave us the conditions.

$1.5M property (at the time) appraised as 650k by the bank. LoL
 
mimico_polak said:
Ya they do. We had our townhouse appraised. It basically involved a guy driving up to the complex to make sure it’s there.

Same for our current house. Google maps ‘yup, there’s a house there….you’re good’

EDIT: as @GreyGhost typed at the same time…we were given ‘free’ appraisals at all times. Only time they wanted money is when I wanted to refinance the investment property but we bailed after they gave us the conditions.

$1.5M property (at the time) appraised as 650k by the bank. LoL
Click to expand...
We had to pay (sort of) for buying the current house. Loan was <50% of market value. No bidding war. Mortgage broker said they would pick up the appraisal bill. They ghosted after deal closed. A few angry interactions later, broker e-transferred from his personal account. Shady all around.
 
GreyGhost said:
It's all part of the smoke and mirrors game where the established crew gets rich (mortgage brokers, appraisers, real estate agents, lenders). The buyer is often required to pay for the appraisal but cannot see the results. The lender pays nothing but gets to see the results. wtf. Showing it to the lender makes sense, blocking me from seeing what I paid for makes no sense.
Click to expand...

Well there's another scenario I'm going to assume that's stacked against anyone outside lol
 
油井緋色 said:
When my fiancee and I were buying a place, a bidding war started that jacked up the price 10%. We don't know if there was truly another buyer
Click to expand...
In that kind of scenario, I would pretty much assume there is some BS going on, I was naive about many things for far too long in life, but then again in today's market there will of course be other buyers. They could do a lot to improve our trust of the profession by implementing a policy that requires buyers be shown proof of other bids.
 
F95B8EDA-2B2C-4F7C-AA96-A74286EDC89E.jpeg'Only' 80k over asking a few blocks from our house...

HouseSigma

housesigma.com housesigma.com

But worked for SNOBAR as now he's got the next door listing also.


This one sold for UNDER asking...

HouseSigma

housesigma.com housesigma.com

Previously listed for 1.8, down to 1.7 with a new agent, sold for 11k under asking.
 
POWERMAN said:
Can confirm...I had to throw in ~200 or so every month when renting a place out...its one thing when building management has condo fees to keep up the place...but another when you have careless residents who litter the common areas, steal from the amenities (gyms, video game rooms etc) thus leading to an annual increase in the condo fees and such.
Now if you have a free hold town home or a detached place...the onus is on you to help maintain the property as it is quite unlikely the tenants would be as interested in taking care of the place.
If you have the time to do so - awesome! But if you are juggling family life, career etc you will find it to be quite the challenge imo..

The last tenant I had decided to have her bf move in with her....I didn't find out about this the very end until she told me she lost her job 5 months ago (very suspicious) and she had no more money to pay rent.
I decided to grab the opportunity, cut the lease short by 4 months and allow her to move out shortly after as the last thing I wanted was someone living in there for free while I pay to support her and her bf...f that lol
I even offered her one months rent back thinking she may have needed money for food/transportation costs etc but she refused...

Also, her bf was onto some kind of drug(s)...the walls were all damaged with attempts to screw in nails (not sure for what), thick smoke/cigarettes deposit on all the light fixtures, window sills, cigarette buds on the balcony flooring, gouges in the engineered hardwood, smoke detectors had some sort of plastic wrapping around them....serious mess.
Ended up spending ~10k and whatever free time I had between April - June this year doing the place up again and sold it.

Honestly not sure I'd want to put myself through something like that again...yes the money behind it is attractive but the risk that comes along with it is pretty significant as well.
What sucks is that I paid to have Century 21 screen and get me a good tenant(s)…fat lot of good that ...
Click to expand...
I don't like being a landlord, but I don't like being a responsible for a dud tenant. I always get a lawn care and snow shoveling contract . When ooking for renters, I always set a low price to attract a lot of interest. Id rather leave $100/mo on the table than spend $10gs between renters. I insist on interviewing renters in their current home so I can get a feel for how they live.

Never had a place trashed, be
 
I ha
jc100 said:
It’s level…with some foreign mountain range..what’s the issue?
Click to expand...
Pisses me off when contractors don't paint behind the stove
 
Mad Mike said:
I ha

Pisses me off when contractors don't paint behind the stove
Click to expand...
I was painting an apartment once…moved the mirror and the damn thing wasn’t painted underneath. I counted 4 layers of paint that previous painters didn’t bother removing the mirror.

No wonder good painters are expensive.
 
mimico_polak said:
I was painting an apartment once…moved the mirror and the damn thing wasn’t painted underneath. I counted 4 layers of paint that previous painters didn’t bother removing the mirror.

No wonder good painters are expensive.
Click to expand...
Our old house had bare drywall behind the thermostat. It was 25 years old when I bought it.

EDIT:
I should also add that it was near a door frame and the original taper mudded around the thermostat. One side of the thermostat was built up almost 1/4". In 25 years and multiple thermostat changes, nobody bothered to fix that mess.
 
Last edited:
May have to threaten to go elsewhere but when choosing a bank for your mortgage you shouldn't be paying fee's whether it's some type of BS admin fee or an appraisal. If they ever say just to pay it and the bank will refund it to you, don't do it (did that one once when I was more naive and it took 5 months to get it back).
 
You must log in or register to reply here.

Back
Top Bottom