COVID and the housing market | Page 228 | GTAMotorcycle.com

COVID and the housing market

Georg3__ said:
We are in the planning stages 🤩. Aiming for 2024!
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Late spring/early summer babies make for an easier pregnancy as she isn't huge when it's really slippery or really hot. If you plan on raising a leader/sports superstar, aim for a Jan 1 baby but make sure it doesn't come out Dec 31. Good luck. It is a rough road for some people, you're young and have time, don't let the pressure build.
 
nobbie48 said:
We need investors in every market, energy, housing, transportation, food etc. and investors need to make a profit or else there is no start up capital. The problem is that a huge part of the market is speculation and no value added. Buy low sell high without any improvement or only cosmetic tart ups.

What is a reasonable profit? Where does that become greed? Does it pay to be a nice guy?

If a rental apartment building doubles in value is it fair to the investor / owner to have strict limits on rent increases?

Your neighbour mentions selling and you work a deal without real estate. What is a reasonable profit if you rent or resell?

Sadly the buyer is often to blame, the expectation of granite and marble. Their lack of trade skills means they can't buy a fixer upper and build sweat equity. Buy a house with good bones and make the roof sound, the drainage good and have working HVAC and plumbing.

The bungalow next door sold for about a half million a dozen years ago. It was spotless but with an updated laminate kitchen. It's around triple that value now and I wonder if some of the people that looked at it back then and turned up their noses are better or worse off for their choice.
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I think most real estate "investors" are probably more accurately described as speculators. They do very very little to improve the properties (and often make them worse by burying problems behind expensive finishes). Rents no longer cover carrying costs so the "investor" is counting on appreciation to make them any money (and in many cases, to pay back the additional money that they had to throw in monthly to support the "investment").

I only know a couple people that buy houses, fix them up properly and then relist them as solid turnkey homes. Sadly, the flipper that buries the problems sells for the same number with much lower expenses so they quickly outgun the competent investor.
 
GreyGhost said:
I think most real estate "investors" are probably more accurately described as speculators. They do very very little to improve the properties (and often make them worse by burying problems behind expensive finishes). Rents no longer cover carrying costs so the "investor" is counting on appreciation to make them any money (and in many cases, to pay back the additional money that they had to throw in monthly to support the "investment").

I only know a couple people that buy houses, fix them up properly and then relist them as solid turnkey homes. Sadly, the flipper that buries the problems sells for the same number with much lower expenses so they quickly outgun the competent investor.
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This is a major problem. Proper investors / flippers do it properly. Not put lipstick on a pig and expect the same level of returns.

Big difference. The level of incompetent 'flippers' is ridiculous, but they're making money hand over fist. I'd wager that the guys that do it properly start cutting corners in order to make the returns better as the typical buyer won't know the difference b/w a lipstick on a pig, or a properly done renovation if they go in for a short open house and inspection.
 
And you often find that they buried the dead pig , lipstick and all ,under a granite surround shower or tub . You find it three yrs later when you find something has just stopped working….


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crankcall said:
And you often find that they buried the dead pig , lipstick and all ,under a granite surround shower or tub . You find it three yrs later when you find something has just stopped working….


Sent from my iPhone using GTAMotorcycle.com
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Yup. Kevin was no expert...so he didn't know how to hide anything.

But (I've mentioned it before) my previous realtor said it best (even though he's a d$@k)...'the average buyer doesn't have a clue wtf they're looking at. Paint, new laminate, granite, and shiny things...they'll pay through the nose for a garbage flip.'

To this day his, and his son's, houses that they list have the exact same finishes as they did 10 years ago.
 
I was playing around with housesigma's home valuation tool just for interest. You enter address and it fills in information (but you can change the information after). The categories it looks at are bedrooms, bathrooms, partial bedrooms, Garage, square footage, property tax and property type. What is a partial bedroom? Is that suppposed to be half bath? Increasing bedrooms didn't change their estimate. The biggest changes in their estimate came from changing the property tax which was interesting. I guess they are using that as an estimate of house value. That probaby explains why new builds are estimated so highly by housesigma. Our MPAC value is <<50% of market value. When a new subdivision is built, how does MPAC do pricing? You have a clean price for every house at almost the same time but you normally use the price from a few years ago when it didn't exist.

The tool is also a quick way to get information on random houses. Enter the address and it fills in all the boxes for you. For someone that just recently got an appraisal, the guess and the appraisal are within 20k. That's pretty close.
 
House near me is struggling to sell. Listed for two months in the fall for a reasonable price, no sale. Listed for march for 100K less, no sale. Changed real estate agents and went live again for $100 less (not $100K less). They should have no problem selling at listed price, maybe they are holding out for more.
 
50' lot in guelph with a teardown house (roof failed, house full of mold) sold in two weeks for 760. Yikes. 30 allison place


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Edit:
From an interview with the RE agent:
"the owner of this particular property had passed away, so the sale was sold through the Office of the Public Guardian and Trustee."
Thoughts? As a taxpayer I'm probably happy that they maximized income but it seems like a great opportunity for an affordable four or six plex that douggie is pushing. Since their cost to acquire was zero, that may make the project viable and it spreads out affordable housing instead of making ghettos.
 
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Sochi said:
I can't wait till .5% interest rates increase announcement by BoC this month and than another one...
Will it happen and if it change anything?! - like watching Breaking Bad series :)
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My buddies are already saying this is the first step in the 'GREAT RESET' that's to finish off the middle class.

Interest rates to 10%.

Everything up up up to screw the middle class out of life.

What the hell is the 'great reset'?
 
A rise to 10% interest rate would effectively make my own home unaffordable. Even if I was fixed today....it would come up around the time this massive rise will go up.
 
mimico_polak said:
A rise to 10% interest rate would effectively make my own home unaffordable. Even if I was fixed today....it would come up around the time this massive rise will go up.
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Inflation and interest rates have more to do with billions of currency injected into the economy during rona crisis and extremely low rates for years... Central banks can't jack rates that high as it would potentially kill the economy in the state it is now (so I wouldn't stress if I was you for now), but on the other hand one of the last tools to combat inflation IS interest rate... I have my pop-corn watching this unfolding drama called future of western economies :)
 
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