COVID and the housing market | Page 220 | GTAMotorcycle.com

COVID and the housing market

timtune said:
Anybody hear this one yet?

People show up to view a rental listed at 1500$/month but a bunch of other people are also viewing it at the same time. Then the landlord says "who wants to pay me more?". Bidding war ensues and he ends up renting it for north 2000$.
Click to expand...
I’ve heard of this. But I’ve also heard that they use the same agent tactic of blind bidding to raise it (possibly with no others).

‘Oh I know I said $1500…but this other couple is offering $2000. I like you guys more so if you can match that offer you get it.’
 
mimico_polak said:
I’ve heard of this. But I’ve also heard that they use the same agent tactic of blind bidding to raise it (possibly with no others).

‘Oh I know I said $1500…but this other couple is offering $2000. I like you guys more so if you can match that offer you get it.’
Click to expand...
It's quickly getting to the point that renting your own space is becoming infeasible for many. Back to university life where you rent a room and share a common space to save some money (until one of your ahole flatmates robs you blind).

EDIT:
From a landlord side, you normally get more money by renting rooms than renting the entire space (and have more stable income and I suspect you are less likely to have a non-paying squatter ahole as they would want to steal a whole space not just a room). By-laws often discourage rooming houses.
 
Last edited:
Group buy? It's only $215/sq ft which is less than the cost to build and you get the land for free. Current owners bought it for 1.1 in mid 2017.

www.thestar.com

Home of the week: This $3.25M Cobourg property has four residences, including a Regency-style manor and a large carriage house

The main heritage home features a wrap-around verandah, built-in shelves, hardwood floors and a finished basement
www.thestar.com www.thestar.com

COBOURG

Location: 9421 County 2 Rd.,

County 2 Rd. and Joe Oliver Rd.

Asking price: $3,250,000

Size: Four houses including 6,400-sq.-ft. main residence; 1,700-sq.-ft. house at front of property; 2,000-sq.-ft. house at rear; 5,000-sq.-ft. carriage home

Lot: about 6.6 acres, two-car detached garage, private circular drive

Taxes: $11,891 (2021)

Bedrooms: 3 in main residence; 2 in front house; 3 in rear house
 
GreyGhost said:
It's quickly getting to the point that renting your own space is becoming infeasible for many. Back to university life where you rent a room and share a common space to save some money (until one of your ahole flatmates robs you blind).

EDIT:
From a landlord side, you normally get more money by renting rooms than renting the entire space (and have more stable income and I suspect you are less likely to have a non-paying squatter ahole as they would want to steal a whole space not just a room). By-laws often discourage rooming houses.
Click to expand...
Renting rooms also gets you around a lot of the landlord tenant act. A friend, pre covid, was getting $650 a month near U of T Mississauga.
 
timtune said:
Anybody hear this one yet?

People show up to view a rental listed at 1500$/month but a bunch of other people are also viewing it at the same time. Then the landlord says "who wants to pay me more?". Bidding war ensues and he ends up renting it for north 2000$.
Click to expand...
It seems to be a screw or get screwed market. If there is a clause where the seller has 60 days to find a new place what's to say he doesn't come back after 50 days and say "I finally found a place but I'm short $75,000. If you can increase your price the deal goes through and we all get what we want. If not, you start looking again and prices have taken another 4-5% bump." He may or may not need the extra $75 K.

We need to go full auction with NO unknown mystery bidder on the phone.

Home inspections don't fit the plan when there are people lined up to buy as is and houses selling before the inspector can write a report. Barring extremes, if someone buys a lemon without an inspection there's a good chance they can flip it "As is" to someone equally as dumb a few months down the road.
 
nobbie48 said:
Renting rooms also gets you around a lot of the landlord tenant act. A friend, pre covid, was getting $650 a month near U of T Mississauga.
Click to expand...
It's how my buddy made his daughters very well off.

Bought 2 houses across the street from one another a 2-5min walk from Guelph University. Dad paid the down payment, daughters rented out the rooms and the houses were paid off within their 4 year degrees.

Mind you houses back then (about 10 years ago) were 100-150k or so.
 
timtune said:
Anybody hear this one yet?

People show up to view a rental listed at 1500$/month but a bunch of other people are also viewing it at the same time. Then the landlord says "who wants to pay me more?". Bidding war ensues and he ends up renting it for north 2000$.
Click to expand...

People actually force a scenario like that irl?
Cold...
 
mimico_polak said:
It's how my buddy made his daughters very well off.

Bought 2 houses across the street from one another a 2-5min walk from Guelph University. Dad paid the down payment, daughters rented out the rooms and the houses were paid off within their 4 year degrees.

Mind you houses back then (about 10 years ago) were 100-150k or so.
Click to expand...

Several friends have done that, one in Windsor, kid finished 4yr program they kept house as rental, St Catherines kid rented rooms to buddys sold house at about 20% increase after 4yrs, best was Guelph townhouse , two daughters in it for 4yrs with roommates. sold for double in 4yrs with kids getting housing essentially for free.
Good gig if you have capital to spare
 
crankcall said:
Several friends have done that, one in Windsor, kid finished 4yr program they kept house as rental, St Catherines kid rented rooms to buddys sold house at about 20% increase after 4yrs, best was Guelph townhouse , two daughters in it for 4yrs with roommates. sold for double in 4yrs with kids getting housing essentially for free.
Good gig if you have capital to spare
Click to expand...
That was my plan if they go to school. With runaway prices, I dont know if I will be able to make it happen. Down payments are a lot of coin.
 
crankcall said:
Several friends have done that, one in Windsor, kid finished 4yr program they kept house as rental, St Catherines kid rented rooms to buddys sold house at about 20% increase after 4yrs, best was Guelph townhouse , two daughters in it for 4yrs with roommates. sold for double in 4yrs with kids getting housing essentially for free.
Good gig if you have capital to spare
Click to expand...
They sold the houses once both girls said ‘thanks dad, we’re done now and you can deal with the tenants but we will take the cash monthly’ LOL

both properties went on the market shortly after. Girls wanted all the benefits of the rental income, but without actually doing the work.

They still had enough for big houses as for payments later on. They ended up fine.
 
It’s nice to help kids when you can , but as Greyghost said , with prices going to the moon downpayments will be hard to justify.

Walking around near Waterloo Uni it’s not hard to figure out how the townhouse was bought with a porche cayman in the garage and a Maserati in the drive LOL , darn math students


Sent from my iPhone using GTAMotorcycle.com
 
Just reading a flyer that landed in my mailbox, Oakville average now is 1.3m , despite more inventory they are still consistent over ask .
Sat with an acquaintence sat night, sold her townhouse two yrs ago , rented a condo because she wanted to "try out " the condo building to see if she liked it.
She can no longer afford to buy a unit two yrs later, could barely get in two yrs ago. She is retired on an Inco pension, and mortgages are harder when your retired.

This waiting out the market thing requires a better plan than waiting for the correction ( that could come, so could Santa)
 
crankcall said:
Just reading a flyer that landed in my mailbox, Oakville average now is 1.3m , despite more inventory they are still consistent over ask .
Sat with an acquaintence sat night, sold her townhouse two yrs ago , rented a condo because she wanted to "try out " the condo building to see if she liked it.
She can no longer afford to buy a unit two yrs later, could barely get in two yrs ago. She is retired on an Inco pension, and mortgages are harder when your retired.

This waiting out the market thing requires a better plan than waiting for the correction ( that could come, so could Santa)
Click to expand...

If enough people buy with five year mortgages and don't lose their jobs it tempers a crash. Variable rates and an increase along with a recession does the opposite as panic sets in.

If there is a crash will it last longer than the five year mortgage term? If yes, is it another crash wave?
 
nobbie48 said:
If enough people buy with five year mortgages and don't lose their jobs it tempers a crash. Variable rates and an increase along with a recession does the opposite as panic sets in.

If there is a crash will it last longer than the five year mortgage term? If yes, is it another crash wave?
Click to expand...
This timing the crash thing is impossible. I know people that sold before 2010 to buy back in after the crash. Since then the houses they sold have quadrupled.

On the upside, the crap regulation of foreign buyers stabilizes the market in the face of higher rates. Lots of dwellings without mortgages so rates dont matter to them. Fewer dwellings forced to sell equals less correction. Also with the huge runup a correction back more than two years is very unlikely. Banks dont want to own houses so they try not to push the issue as long as owners keep paying. I think the pool of people in trouble would be those that purchased in the last year or two with little down payment and high monthly payment relative to income. They have little ability to pay down mortgage substantially over the five year term and may decide to throw in the towel if they go underwater. This could also apply to small scale landlords that overextended on properties and need to dump a few to save their principal residence.
 
GreyGhost said:
This timing the crash thing is impossible. I know people that sold before 2010 to buy back in after the crash. Since then the houses they sold have quadrupled.

On the upside, the crap regulation of foreign buyers stabilizes the market in the face of higher rates. Lots of dwellings without mortgages so rates dont matter to them. Fewer dwellings forced to sell equals less correction. Also with the huge runup a correction back more than two years is very unlikely. Banks dont want to own houses so they try not to push the issue as long as owners keep paying. I think the pool of people in trouble would be those that purchased in the last year or two with little down payment and high monthly payment relative to income. They have little ability to pay down mortgage substantially over the five year term and may decide to throw in the towel if they go underwater. This could also apply to small scale landlords that overextended on properties and need to dump a few to save their principal residence.
Click to expand...
I was talking to a client and we shared the same game plan. Wait for a crash and buy a nice condo to rent out. Wait for the rebound and then sell the main home tax free. Move into the condo with a bundle of cash.

That discussion was fifteen years ago. Still waiting. Bare spot on the desk where I've been drumming my fingers.
 
You must log in or register to reply here.

Back
Top Bottom