You could have bought and sold a condo or townhouse for a big profit in 2020/2021. Sfh has avoided the bumpy road recently and just keeps climbing.
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COVID and the housing market
- Thread starter mimico_polak
- Start date
There's a great saying that I heard a while ago that applies to that wishing / hoping scenario...
You can poop in one hand, and wish in the other...see which one fills up first.
The vault. Finally a safe place to store a bike.
Just watched an episode of CHCH news, condo developement in downtown Burlington has gone back on investors that bought on paper in 2016 for 525k thinking they would be in this yr. , its backed out till late 2022 /2023 and the developer wants 300k+ additional funds.
Its legal extortion, but it will never be finished at the current funding.
Investors are being offered the 160k initial back with 6% interest. 800k in my opinion is still a deal , but not if you thought you were in for 525.....
Its legal extortion, but it will never be finished at the current funding.
Investors are being offered the 160k initial back with 6% interest. 800k in my opinion is still a deal , but not if you thought you were in for 525.....
Wow….It’s super ****** of the developer to pull this crap…but at least they got 6% interest. Typically it’s 0% interest and get out.
48Connor
Well-known member
So in the last month I've got two letters from the town notifying me of zoning by-law variances granted for two new developments:
- The field directly to the east of us that was slated for SFH's is now going to be three 4 story apartment buildings.
- The field that backs onto the houses across the street on the north of us, which was owned by the same guy that built my townhouse and he told me was going to build more of the same townhouses in that lot, is now going to be three 6 story apartment buildings. Like I'm outside the GTA - the closest building over 4 stories tall is 45km away.
- The middle of a subdivision is a wild spot for apartment buildings. Put them on the edges out by major roads like every other town has done.
- Its BS to publish a subdivision development plan, wait till its half sold and built, and then completely change the structure remaining half.
@48Connor , it may not change the value of your home much , but I doubt the effect will be positive , especially long term . Traffic .
They whacked up an 8floor x2 building , 200 or so units 5kms from me and we are feeling the effects of traffic , both auto and pedestrians.
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They whacked up an 8floor x2 building , 200 or so units 5kms from me and we are feeling the effects of traffic , both auto and pedestrians.
Sent from my iPhone using GTAMotorcycle.com
I would be concerned about buying anything new in the coming future. We have problems now getting proper trades due to the great resignation. In many of the last booms we ended up with unqualified and unskilled people doing skilled trades to fill in the gaps (and now the gaps will be bigger) and we get a lot of poorly done work. Hey drywaller, now you are a poorly supervised apprentice electrician/plumber.... hey Timmy's people, anyone want to do drywall?
as above , quite correct. we will go from level 2-3 drywall to stucco finish . And I fear its not just the qualifications that may be shorted , it will be the fit and finish and respect for the job. My lights all turn on , but a LOT of the switch boxes are not square in the hole, the drywall work is adequate at best .
When pulling out a laundery room exhaust fan , the duct pipe and the fan were 24" apart. Buddy put in the fan , ran the duct he had and was short, drywaller just boarded over it before the fix was done. 4-5 trades on a suburban house, all on the piece work clock.
It will not get better, I have an excellent electrician we use on projects over our skill set. He has about a 3 month waiting list.
When pulling out a laundery room exhaust fan , the duct pipe and the fan were 24" apart. Buddy put in the fan , ran the duct he had and was short, drywaller just boarded over it before the fix was done. 4-5 trades on a suburban house, all on the piece work clock.
It will not get better, I have an excellent electrician we use on projects over our skill set. He has about a 3 month waiting list.
THE GOVERNMENT IS A PONZI SCHEME.
Governments don't charge enough in property tax to provide the expected services so they cater to developers. The newcomers pay the dues for the old timers.
They can't make more land but they can make taller buildings. Toronto has next to no land. To build something new something old has to be torn down. We're going through this in our neighbourhood and the city has basically said there is no room to go out so we have to go up. With enough effort you can minimize damage to the hood.
And you can't touch all the sacred farmland that you see (mostly owned by devloper land banks).
Housing demand is such that rental restrictions are being scrapped. Get used to basement apartments.
Kids can't afford to leave home so they need cars and parking as well.
In many ways basement apartments / granny flats can be good things but the landlord tenant act allows abuse both ways and it can hurt the small owner.
However that bungalow with a basement apartment only has a one car garage. Since the basement isn't available for storage the garage become the storage shed. If you're lucky the driveway will park two cars but there are two cars for the apartment as well. The average lot size only has room for one car directly in front of the house and car #2 parks down the street a bit.
Then the next house gets a few more people and drivers end up parking a block away or more. Thats a long extension cord if you're driving an EV to save the enviroment. Of course the government wants you to take the public transit that doesn't exist.
If there isn't room for houses there isn't room for more or wider roads so crossing the Don, Humber or Credit Rivers isn't going to be fun unless they buy and demolish billions of dollars of houses and make a few more billion dollar bridges. Justin will be good for the money. The problem will take care of itself.
They may make some new highways through the sacred farmlands so you can more quickly get from your overcrowded workplace to your overcrowded home.
48Connor
Well-known member
The combined total of all 6 buildings will be 550 units.
I think you are right, in this housing market I don't think whether they are there or not would have an effect on the value of my house. The one builder already has apartments in town, and they look nice and are kept clean, but also aren't cheap to rent. But I do think that if the market cools off, rents come down, etc., it will negatively impact it. Who knows if that will ever happen though.
I always tell people to assume the worst no matter what they are told. For developments adjacent to rail or industrial uses, I have seen the marketing drawings with streams and forests where the rail and industrial is. Straight up lies but there is no legal obligation to accurately convey reality.
Most developers are smart and build low to high. Everyone gets told they are the tallest in the area. I have seen some where people were explicitly told that the adjacent block was to be more of the same townhouses when the zoning that had existed for decades required a tower. If you are buying in a building with a view, unless there is an immovable obstacle protecting your view like a highway, assume that the next tower built will block it and you are probably right. That way they can charge a view premium on every building. Similar for a lot premium adjacent to a golf course and then you end up in a house with roads on your front and rear property lines.
(Not directed at you, just in general) Ultimately it comes down to if you don't own it, shut your pie hole. You could have bought more to control what you can see (or who can see you). The only reason your dwelling exists is some farmland/forest or existing use was converted in the past. Everybody wants development to stop once they have theirs but very few are willing to accept that the only reason they have a place to live was exactly this process.
We intentionally bought in the center of a subdivision. For the most part, that should limit the changes we experience. Buying around the edge is nicer now but there is a strong possibility that future expansion kills your lot premium and if past development practices continue, density will be far higher so in fact you have a negative lot premium.
My inlaws bought a side split on a pie shaped lot backing onto a hydro corridor. They fought corridor conversion to housing at OMB and lost. Now there are five three storey houses (walkout two storey but basement floor is the inlaws ground level) across their backyard. I am trying to convince the inlaws to talk to someone about a consolidation between them and the neighbour to allow a condo townhouse development. My MIL sees her house that she treasures in a neighbourhood she likes and doesn't think she can do that. Nothing is stopping the next owner from taking advantage of the opportunity.
Ontario is pretending to do something about developments that get canceled and resold. The list of measures seems very weak. It looks like a ploy to say they have done something while avoiding all measures that would actually make a material difference.
www.cp24.com
Ontario to increase penalties around 'unethical' condo development practices
Ontario plans to increase fines and other penalties for “unethical” condominium development practices.
www.cp24.com
EDIT: I like how they say 'increase the fines'...what are the fines now? $0? Pay back the deposit with 0% interest...anything is better than nothing.
I'll agree this is more of a 'look look look...we did something'
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LOL.....240k special levy on a condo in BC.....yowza.
The government ruling on unethical issues with developers???Ontario is pretending to do something about developments that get canceled and resold. The list of measures seems very weak. It looks like a ploy to say they have done something while avoiding all measures that would actually make a material difference.
Ontario to increase penalties around 'unethical' condo development practices
Ontario plans to increase fines and other penalties for “unethical” condominium development practices.
Pimps deciding on ethical treatment of prositutes isn't much different. Basically "Don't kill them because we can't make money off them when they're dead."
Ouch. From another unit in that building "Leaky Condo no conventional financing available"LOL.....240k special levy on a condo in BC.....yowza.
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Water intrusion since 1994 and boards have been fighting to avoid fixing it. It needs one owner. That owner can either fix the complex or level it. I dont think there is a way to save it as a condo.
Quite possible that repairs were 40M+ in 2006 and they have been punting since then. There are 250 units to split that bill. Obviously some do not have the ability to pay. Would a bank pick up the special assessment in a foreclosure? What happens if the value of the condo is less than zero? Does a bank pay to get someone else to take it?
Judge orders Vancouver strata to impose $16 million levy to repair leaky condo problems
A judge has ordered the strata of a 250-unit Vancouver complex to impose a $16 million special levy to finish repairing its leaky condos
vancouversun.com
Vancouver real estate: leaky East Broadway condo project unit for sale, price reduced, $339,900, cash only
Listing states that the leaky building may be rainscreened or sold to a developer.
www.straight.com
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Palace Pier One. People bought their condo with a park in front and view of the lake. When the units were sold it turned out that Palace pier Two was already designed for the "Park" that wasn't a park. PP1 fought the PP2 and lost.
Sub divisions are named after what was destroyed in order to build them.
Happens often. All those condos along the Lakeshore had 'lake view'...until the condo in front of them was built.
Have heard of people trying to sue the developers because they no longer had a 'lake view' condo...don't think they got anywhere.
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