COVID and the housing market | Page 259 | GTAMotorcycle.com

COVID and the housing market

My guess is the contract has a ‘ closing costs to be determined at closing ‘ tag line or some other loophole ( that needs fixed)

When I bought this house we hit a small snag ( thank you real estate agent) and I we told I needed a certified cheque of bank draft for 50k with a 2 hr window to hand it in. Thankfully I had access to the money or if would have been ugly .


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crankcall said:
My guess is the contract has a ‘ closing costs to be determined at closing ‘ tag line or some other loophole ( that needs fixed)

When I bought this house we hit a small snag ( thank you real estate agent) and I we told I needed a certified cheque of bank draft for 50k with a 2 hr window to hand it in. Thankfully I had access to the money or if would have been ugly .


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We got hit with a extra 100 g at closing thanks to stupidity from the appraiser.

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Scuba Steve said:
We got hit with a extra 100 g at closing thanks to stupidity from the appraiser.

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That's annoying but at least it didnt change your cost just restructured your debt (assuming you were able to come up with the money). These people thought they were buying for x and ended up needing to pay way more than that.
 
Georg3__ said:
How much did they pay upfront?
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Apparently listed for 415 to 865 three years ago. A 70 to 170K bump is a substantial percentage of purchase price.

I assume that mortgage qualification is already in the crapper as they prequalified at 5.25% and are now pulling a mortgage they need to qualify at 7% for. Having less loan available at the same time as needing more loan is not good.
 
mimico_polak said:
I would expect costs like these should be considered / identified in the early documentation.

I’d love a copy of the original contract.
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this exactly. most precons will have a cap on fees in the agreement. if they went over, open to lawsuit. if not... buyers fault for not reading fully and anticipating the costs.
 
killvino said:
this exactly. most precons will have a cap on fees in the agreement. if they went over, open to lawsuit. if not... buyers fault for not reading fully and anticipating the costs.
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It's interesting that the builder seems to be leaning on water and gas meters to justify the bump. I would be surprised if they were six figures unless there was funny business involved.

EDIT:
Saw image of one bill provided to homeowner. Water and Gas hookup were each just over $22,000. Seems steep for a subdivision (especially when the gas company is guaranteed at least $40 a month for eternity even if the client uses zero gas).
 
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GreyGhost said:
That's annoying but at least it didnt change your cost just restructured your debt (assuming you were able to come up with the money). These people thought they were buying for x and ended up needing to pay way more than that.
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I had to come up with a extra 100 cash for the downpayment I had it but it could have been a disaster.

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Georg3__ said:
Look what happened with the phoenix pay system
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You do know that Phoenix's failures were determined to be related to gov't bungling of training, project management, testing and go-no-go decision making?
 
I've bought three new (pre-construction) houses (two with the ex and one on my own) and never have I been asked to come up with thousands of dollars at the last minute...yes, there were closing costs, but all of those were laid out in the pre-construction contracts and there haven't been any surprises...the first one in Meadowvale was from a now defunct small builder and the other two were/are in Milton from Mattamy...this all seems very strange to me...hmmmm
 
ifiddles said:
I've bought three new (pre-construction) houses (two with the ex and one on my own) and never have I been asked to come up with thousands of dollars at the last minute...yes, there were closing costs, but all of those were laid out in the pre-construction contracts and there haven't been any surprises...the first one in Meadowvale was from a now defunct small builder and the other two were/are in Milton from Mattamy...this all seems very strange to me...hmmmm
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Apparently this happens often with Haven. Probably carefully worded to draw in buyers while leaving Haven room to grab their profit at the end. If the market drops from pre-sale, they have buyers that can't get out. If the market rises, well "costs" went up too so here's the bill.
 
Wow, subdivision under construction outside of Barrie. They are working on utilities and model homes now. Most houses were sold six months ago or so. Occupancy is probably at least a year out. They now have some MLS listings up. Not sure if these are resales? I suspect the same person bought both and now is trying to dump them as climbing rates are ruining their plan. I highly suspect they were planning on assigning one to make a fortune to pay for the second. BoC ruined their plans.

25x98' lot 1850 sq ft semi ~$1.1M
36x98' lot 2400 sq ft detached ~1.4M.

Yikes.
 
Just had a new listing show up in our area....$1.4M for an absolute dump. Time will tell. There's a house a few hundred metres north that's in much nicer shape for 1.6...been listed for over a month....AAAANNNNDDD it's gone (de-listed).
 
Paraphrased, "My house/vehicle were damaged in a fire, your insurance should pay the tens of thousands in damage because I dont want to pay my deductible". Man, some people are so dumb and/or clueless. That's not how anything works. Try calling your insurance company amd asking them to cover your neighbours house after it is damaged. It will be a quick phone call.

Residents near Hamilton construction site fire demand developer to pay for damages

Residents living near a Hamilton construction site that was destroyed by a massive fire are asking the developer to pay for damages.
www.chch.com www.chch.com
When a massive fire destroyed an entire housing development under construction last week, it also damaged nearby homes. Now those residents are asking to go through the developer’s insurance, instead of theirs.

The residents were told by Losani Homes that they’d have to go through their own insurance providers and doing so will cost them at least $1,000 dollars in deductibles.
 
GreyGhost said:
Paraphrased, "My house/vehicle were damaged in a fire, your insurance should pay the tens of thousands in damage because I dont want to pay my deductible". Man, some people are so dumb and/or clueless. That's not how anything works. Try calling your insurance company amd asking them to cover your neighbours house after it is damaged. It will be a quick phone call.

Residents near Hamilton construction site fire demand developer to pay for damages

Residents living near a Hamilton construction site that was destroyed by a massive fire are asking the developer to pay for damages.
www.chch.com www.chch.com
When a massive fire destroyed an entire housing development under construction last week, it also damaged nearby homes. Now those residents are asking to go through the developer’s insurance, instead of theirs.

The residents were told by Losani Homes that they’d have to go through their own insurance providers and doing so will cost them at least $1,000 dollars in deductibles.
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I'll be honest, but I assumed that if YOUR negligence / issue causes my property harm...it's on YOU, not me and my insurance to cover damages caused by YOUR issue.
 
Nope , if I’m delivering to your house and back my truck through your front door , that’s your house insurance first . Your ins company may come after my ins company , but it’s yours first .
Make little sense , but that seems to be how it works


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crankcall said:
Nope , if I’m delivering to your house and back my truck through your front door , that’s your house insurance first . Your ins company may come after my ins company , but it’s yours first .
Make little sense , but that seems to be how it works


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Although it feels unfair, insurance companies price premiums based on known limited risk. If a homeowner was smoking in bed and wiped out their entire townhouse complex (similar fire happened in mississauga a few years ago although I'm not sure the cause), the bill would be in the tens of millions to rebuild. As a homeowner, I wouldn't be excited about paying premiums for a policy with that much coverage.

I have no idea what level of insurance builders carry. Every few months, a decent portion of some development under construction in the GTA either burns or gets knocked down by wind. Given the frequency of issues, I expect they will probably cover most in house with a policy in place in case there is a catastrophic issue (eg. take a few houses on the chin but when the entire block goes, make the claim).
 
GreyGhost said:
Apparently this happens often with Haven. Probably carefully worded to draw in buyers while leaving Haven room to grab their profit at the end. If the market drops from pre-sale, they have buyers that can't get out. If the market rises, well "costs" went up too so here's the bill.
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When I do a job with unknown material costs I have to agree to a given percentage mark-up.
 
A house down the street just sold for $1.485 M, listed at $1.498 M. Modest detached 2 story 3 BR. Interior all done over with what looks like Caesar stone over white Ikea. Curb appeal not to my tastes. It was sold last in 2009 at $492,500.

It would be interesting to have parallel universes to see how the numbers would have worked if the seller's timing was better. I'm guessing that pre-downturn it would have sold for the same or more without the renovations.
 
Nobody gets a crystal ball . A lot of mid reno properties, mid stream when the tidal flow reversed are going to be break evens , I suspect for lesser skilled flippers , break even will be part of the dream


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