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COVID and the housing market
- Thread starter mimico_polak
- Start date
The crazy is dying down , but I don’t see prices that far off . The lack of desperation to get in has stopped 3-500k over listing nonsense . Houses are now 7-10 days on the market here in Oakville , which in arithmetic is twice as long as last yr , that’s still nutty.
I’m still shocked when people get bamboozled on putting a deposit down with a developer that doesn’t even hold a license? Is nobody having a lawyer look over this paperwork or do you plop down 200k like a down payment on a car? It’s criminal, but Ontario white collar crime , which we all knows skips the system a bit .
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I’m still shocked when people get bamboozled on putting a deposit down with a developer that doesn’t even hold a license? Is nobody having a lawyer look over this paperwork or do you plop down 200k like a down payment on a car? It’s criminal, but Ontario white collar crime , which we all knows skips the system a bit .
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open houses are a thing again. imagine that, agents actually have to put in effort to earn their commissions again....
Many of the open houses near me are still virtual. The agent is there but you book an appointment and they walk around with a camera. Seems dumb as a house feels much different on camera vs in person. Nice for owners though as you won't have a swarm of thieves wandering through your house minimally supervised.
When I saw the photos of my last house I was selling I almost wanted to stay. I had no idea the house was that big and good looking.
Open houses arent going yet , but agent booked views are on here. I think the open house was really just so the nieghbours could see what had been done. And people killing time on a Sunday.
Lets see if the massive correction we have all be promised is happening ? IMO not likely when new constructioin is $400sq ft.
They say the camera adds 10 feet.
Yes. We've gone through a few houses over the years and while they look fantastic on camera...when you get there the rooms were tiny in comparison to what they appeared to be.
Houses in our area just appear to have hit a wall. Staying on the market for much longer than previously, and a few instances of 'sold conditional' and then re-listed when the deal falls through.
Often it can be true. Our last house was very small. Pics of the living room were taken from the far side of the dining room and vice-versa. From the pictures, if you weren't paying close attention, you wouldn't realize that half of the apparent space was duplicated .
Also, fish eye lens.
I'm replying to myself...
This is the website of the company that duped these investors...
Main
bosstowns.ca
I'm sorry but you need to do some due diligence. This type of website that's not even complete should be your FIRST red flag...FML.
I'm starting to feel less sorry for people that don't due their own diligence prior to plopping down 250k.
That website is shocking. At least delete the sections you aren't planning on filling in.I'm replying to myself...
This is the website of the company that duped these investors...
Main
bosstowns.ca
I'm sorry but you need to do some due diligence. This type of website that's not even complete should be your FIRST red flag...FML.
I'm starting to feel less sorry for people that don't due their own diligence prior to plopping down 250k.
As for the guy that put down a 250K deposit and is paying $700/month in interest, wth? That is ~3.5%. That's not great. Now he has non tax-deductible interest payments and has lost the money as well. If he gets really unlucky, he has written off past interest as an investment expense and CRA reassesses him and makes him pay back taxes. I don't know when the CRA considers the money no longer borrowed for an investment (eg. if the house never happened is all the interest after-tax money or while you reasonably believed the house was happening can that be written off?).
Unless that property was strictly identified as being purchased for an investment purpose...otherwise...I'll leave it to the lawyers / accountants as that's so messy.
$250k is around $700/month minimum payments at 3.7% - that's a similar quote to what we got for our HELOC at Prime + 1%
I’m speculating, but I’ll wager a bunch of those 200k down guys were also speculating and one of their cousins / kids / parakeets would live there for 1 yr after completion and it’s a capital gain tax free , feeling bad for some , bunch of others just picked a bad investment
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That depends on how long you wait...if it keeps going the way it's going...might be less...might be more...crystal ball won't tell me.250k is what I need to put down for a house in Mississauga
I agree. This is a VERY RISKY investment that went south.
Get greedy, see nothing but dollar signs because real estate only goes up...
Ooops.
I expect more of this when investors are getting ready to move into their pre-built homes and the appraisals are lower.
'The builder should reduce the price to account for changing market conditions.' ... these sob stories come up every single time any type of slowdown / correction / adjustment happens.
Why should the builders adjust down? If prices go up, are owners willing to pay more? Either you agree on a price now or let the price float until closing. There needs to be a much bigger hammer for developers that play games to extract money from a market that has risen.
I agree with you 100%.
There are always stories of people who bought at the height, market adjusts, and then they cry foul that the builder won't adjust down because their appraisals are now 100-200k less.
Happens every single time. I have no sympathy.
I also don't think that builders should be allowed to cancel or demand an extra 100-200k for 'reasons'.
My buddy was telling me last night that their builders are squeezing the subs for a few hundred dollars saying that material is 'too expensive' while at the same time they raise their rates by thousands of dollars to end users. Eff them.
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