Sell it to @Georg3__ ... nice clean deal without agents, and all you need are lawyers.
I'm sure he'll be forever grateful when he inevitably flips it for profit, or becomes a landlord.
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COVID and the housing market
- Thread starter mimico_polak
- Start date
I'm sure he'll be forever grateful when he inevitably flips it for profit, or becomes a landlord.
I'm not selling for a few more years lol
My prediction is that property is going to crash very hard as interest rates go up. Assuming I am truly double to triple the average income house hold income, and there's no crazy correction coming, I can leverage advantageously.....I have no idea what the **** the plan is yet, but this "fill in the blanks as it comes" has worked so far <_<
.....or get ****** very hard without lube in a not sexy way.
Also @Georg3__ has 2 cars and a motorcycle right? Not enough parking here =(
Another thought that may matter depending on how you want your altruism to work. An old guy left land to his kids with the requirement that they couldn't profit off it as he loved nature. The kids did it anyway and made tons of money. I found out after that he should have included the conservation authority as an owner as well and they would then fight to maintain his wishes. If your altruism is supposed to help maintain affordable housing in perpetuity, you may want to include a quality charity in the deal (Out of the cold?). Obviously, for better or worse, that limits the ability of the buyer to flip it on the way up the property ladder. A 900 sq ft warm, dry and safe condo is not a bad endpoint to the property ladder though.
Another option (but I don't know if it exists) is a charity that tries to maintain a distributed stable of affordable rental properties. Donate the condo to the charity for the tax write-off and they now have housing for another family in perpetuity (theoretically, they could rent out for as low as maintenance+utilities+property tax+insurance+contingency as their cost of acquisition/carrying was zero). Hell, maybe you spin up the charity. I would set the rent up like I said but include a mandatory saving component and time limit. If you did $250/mo savings and four year limit? At the end of the four years, they get their 16K back to be used to have a chance at a stable future (could the charity hold it, invest it and release it when they get CPP?). Getting the details right is complicated but it could provide a path to help people that would not have any retirement income other than CPP (which is crap).
I don't see a hard crash , what i see if interest rates really do go, is finally some inventory on the market and possibly a selection . Some people that are in the market may have to reassess and that may make opportinity for buyers . There are thousands of pre approved buyers that dont want just a "roof" , they are waiting a bit. Its an expensive wait, but there is a lot of money around.
Even a "crash" is 30 to 40% tops. That sets this crazy market back about 18 months. The interesting owners for me would be those running at 80% mortgage + HELOC. How would the bank deal with them now that they were underwater? Banks don't want houses. If they take the house and put it on the market, that lowers market values of the rest of their portfolio. I suspect they would cut off access to more money but as long as you keep paying, they will just wait out the time you are underwater. If the owner decides to sell, they are locking in their loss. It is conceivable but unlikely that they could downsize and come out ok (eg owe 1M on 1.25M house which after crash is owe 1M on 875K house, sell for 875, buy one at 600, pay off the 125 outstanding and have a 450K-500K mortgage on the new one (~80% of 600)).
I'm counting on people to overleverage themselves due to greed. I'm also counting on mortgage lenders to have broken rules, and for real estate agents and mortgage brokers selling/lending to people who aren't they aren't supposed.
With COVID doing things to our economy that the mortgage rules didn't anticipate, I am counting on the system go "BOOM." I'm also wholly uneducated/inexperienced with these systems; just following past patterns.
If not, meh, my place goes up in value lol
I appreciate your deep dive thoughts immensely; I just pulled the idea out of my ass before I bought he condo....I've also a tendency to undersell things and use my 'gut' as a judge (last thing was a 1080 Ti GPU, sold for $600 instead of $1000; that was one happy ******* Russian kid whose mom was not happy giving me $600 lol.)
Ideally, one of my Taiwanese family members (they're all doing worse than me, but their parents are much better off than mine) gets their head out of their ass and can actually afford to live here or some lucky kid I get to know at work is gonna find out Santa Claus is Asian.
But outside of the situations where my gut is given sufficient time to figure **** out....legally covering my ass is always a good idea.
Meh, almost $2M they must figure only rednecks are buying that cheap in this market. Staging is so people can see themseves in the space. /sWhat the actual f&^%. This is in a house that will sell for close to 2M. The RE agent needed to slap the owners.
While I hate going to the office...I love the discussions that take place that you wouldn't have over TEAMS...
Spoke with one of the guys today, 32 years old, married with no kids yet... 4 investment properties, working for the gov't for the salary + pension, and then moonlighting as a contractor on weekends and evenings and making bank.
Said he's looking at a 5th investment property this weekend.
Also said he's leveraged to the t i t s, but each property is more than paying for itself and all of them are about 2-4 hours away as the GTA is too expensive.
Maybe I should re-evaluate my mortgage needs lol.
Spoke with one of the guys today, 32 years old, married with no kids yet... 4 investment properties, working for the gov't for the salary + pension, and then moonlighting as a contractor on weekends and evenings and making bank.
Said he's looking at a 5th investment property this weekend.
Also said he's leveraged to the t i t s, but each property is more than paying for itself and all of them are about 2-4 hours away as the GTA is too expensive.
Maybe I should re-evaluate my mortgage needs lol.
A couple of fully renoed houses on Mill Road Etobicoke are listed at just under $3 Million. One is a two story on a corner lot across from a mall. (Dollarama and McD's) Great view of the drive through. House isn't atractively placed on the lot.
The other is a totally redone bungalow on a typical suburban lot. Close to nothing.
I don't know if they're way off the mark or just trying to raise the bar.
The other is a totally redone bungalow on a typical suburban lot. Close to nothing.
I don't know if they're way off the mark or just trying to raise the bar.
Mad Mike
Well-known member
Not full these days! A couple of weeks ago you could have a GO coach to yourself when leaving Markham for downtown.
Homes along transit routes have always had a desire to people that have to commute. Wonder if the increase in gas will push the herd back towards a GO train and with gas going will it add even more to a house price near transit ?
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I think it will. Once it gets too expensive to commute by car (gas + parking), a portion of the public will migrate toward commuting.
Traffic is going to get worse once WFH starts moving to a hybrid or full time office work returning.
I would take that GO if I could, but from my house to the new office it’s totally not practical.
I used to walk the 2.5km to Erindale, hop on a train, and be down at union. 5min walk further and I’m at the office. Super convenient.
Not having a car is close to $1,000 a month that could go to mortgage. No wonder the old houses in Parkdale are going for millions. Then there's the time issue. Some spend three or four hours a day in a cage of one sort or another. On public transit one can read.
Sadly that's a bait price. Hammer will be 700 or more. Condo town with 360/mo maintenance. That equivalent to about another 80k mortgage.
The other day, I saw a house listed for 900 with only an aerial image. Sold in hours for asking. People are desperate for a stable place to live.
Or to invest….let’s not forget actual home buyers are not the only ones bidding up the prices.
Not worth my time. Those end up selling for 150 to 200k over
IIRC your budget was 750k or so that the broker said is ok right?
Offer 600k and you never know what could happen. My buddy got a condo in downtown Oakville late last year for under asking because the owner was greedy and no other offers came their way.
Anyone know how assignment sales work on prebuilds? Are they always allowed or there has to be a specific clause in the contract to allow it prior to project completion?
IIRC someone around here was doing it but it’s been a while since that discussion happened.
IIRC someone around here was doing it but it’s been a while since that discussion happened.
@LiNK666 did at least one before. Definitely investigate as much as possible. Like lease reassignments that used to be possible, builders will try hard to keep the money for themselves and make it difficult/expensive for you to profit.
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