COVID and the housing market | Page 269 | GTAMotorcycle.com

COVID and the housing market

We had days when concrete didn’t ship….and the inevitable claim.
Talking to the neighbour and his brother in law is in stonework. They've shut down for the summer due to lack of cement products.

Apparently a local small supply yard got in two skids of cement and a contractor who was there at the time slammed down cash for both skids. Gone.

I've done work at the limestone quarry near Coburg and the plant in south Mississauga. Blow it out of the ground at the first place (Neat sight) and ship it to the second place to be baked and crushed (Noisy and hot). Where's the holdup?
 
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Yup. Every boomer made millions just sitting back and drinking beer.

If a land rich, cash poor boomer has to go into LTC where does the money come from? Decent care for a disabled senior could be $100 K for 10 years. Should that come from the taxpayer's pocket?

Is it wrong for a parent to leave an estate to their offspring?

Owning a house is a long term growth investment. You can't sell a few bricks when you're tight for cash. You do cash in big time when you sell but you can likely never buy back in. If you play the sell high and wait for low game you have to pay (rent) while you wait, possibly for years.

House prices are insane but who's driving them? It isn't the present homeowner. It's basically an auction and there are high bidders, people that are focused on financial success.

As far as the cap gain issue I would want to explore the USA model and give people a choice of going that route, claiming interest charges as deductions and effectively reducing payments. Then when they sell or downsize they pay taxes on the gains. It would be a one time decision for life.

It's not going to make houses a dime a dozen. It's a fact of life that we ignored until it went critical.

Want a house? Get a WFH job and move out of the city.
 
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While interesting in theory, I don't see this going well. OHRC says province should make A/C a right. On one hand, we have rents that are already unaffordable and on the other, making something that is expensive to operate a right. If this goes through, say goodbye to inclusive rent, they'll figure out a way to sub-meter apartments (paid for by tenants) and tenants can be shocked at their hydro bill.


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My wife once lived in an apartment building that installed submeters. Prick extortionist pos landlords. Baseboard heat with leaky single pane windows and they said you had to sign up for an upfront fee of most of $500 to pay for the submeter, account fee of ~$20 a month to submetering company, you pay all hydro from then on and they discount the monthly rent by $30 so it is "net neutral" for you. Like f it is. Sons of (*&(*&(*s. I have no problem with new tenants going into that program as they know what they are getting but forcing existing tenants to go over would be a double digit percentage increase in living costs. We never agreed to nor paid to switch to the new program. Lots of threatening letters about power being cut off. She moved out about six months later anyway. I anticipate similarly treachery to cover the costs of this new "human right".
 
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While interesting in theory, I don't see this going well. OHRC says province should make A/C a right. On one hand, we have rents that are already unaffordable and on the other, making something that is expensive to operate a right. If this goes through, say goodbye to inclusive rent, they'll figure out a way to sub-meter apartments (paid for by tenants) and tenants can be shocked at their hydro bill.


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My wife once lived in an apartment building that installed submeters. Prick extortionist pos landlords. Baseboard heat with leaky single pane windows and they said you had to sign up for an upfront fee of most of $500 to pay for the submeter, account fee of ~$20 a month to submetering company, you pay all hydro from then on and they discount the monthly rent by $30 so it is "net neutral" for you. Like f it is. Sons of (*&(*&(*s. I have no problem with new tenants going into that program as they know what they are getting but forcing existing tenants to go over would be a double digit percentage increase in living costs. We never agreed to nor paid to switch to the new program. Lots of threatening letters about power being cut off. She moved out about six months later anyway. I anticipate similarly treachery to cover the costs of this new "human right".
A property manager told me that switching to individual meters reduced general building consumption by 30%. Good idea. Improved windows and wall insulation should be added as well. I have no idea of the payback period. I don't think any money grubber landlord thinks beyond year end.

A friend living in a rental apartment ages ago and the landlord asked everyone to lower their thermostats by 5 degrees. He found out that he was the only one going the sweater / extra blanket route. Everyone else was 75-80 F with windows open for fresh air.

Air conditioning with climate change isn't a hard sell but we are dealing with a lot of hard to retrofit buildings with poor insulation. In Toronto a lot of houses have R3 walls from the days of cheap energy.

The $30 rent reduction for the retrofit is an insult. It should be revenue neutral.

The legalities of sub meters is tricky. It can't be done in house. Someone has to become a utility.

P.S. The reduction of power consumption could feed EV outlets.
 
I would never buy a rental that didn’t have separate hydro meters. My cousins place even has electric water heaters and each unit is metered separately.

I remember a tenant once complaining that the units were too cold in the dead of winter….my only response was ‘close your windows….it’s -20C’.

‘But I need the fresh air’

‘Then put on a sweater. It’s 25C in the units, I’m not raising it.’

My buddy had a city inspector show up as there was a complaint of insufficient heat in the unit….when the inspector showed up and saw the windows were all open they yelled at the tenant to stop wasting peoples time.

Mandating AC is fine and dandy. But just watch rates skyrocket and every landlord that can change electric to individual metering, and raise rents again to cover that cost.
 
I would never buy a rental that didn’t have separate hydro meters. My cousins place even has electric water heaters and each unit is metered separately.

I remember a tenant once complaining that the units were too cold in the dead of winter….my only response was ‘close your windows….it’s -20C’.

‘But I need the fresh air’

‘Then put on a sweater. It’s 25C in the units, I’m not raising it.’

My buddy had a city inspector show up as there was a complaint of insufficient heat in the unit….when the inspector showed up and saw the windows were all open they yelled at the tenant to stop wasting peoples time.

Mandating AC is fine and dandy. But just watch rates skyrocket and every landlord that can change electric to individual metering, and raise rents again to cover that cost.
AC won't be free but living or working in a sweatbox isn't productive.

Unfortunately the animosity between landlords and tenants is such that establishing revenue neutral would be like nailing jello to a wall. Add AC, throw in new windows and insulate walls makes it close enough to renoviction and massive rent increases.

In an honest, ethical, competent world the landlord would show the true HVAC energy costs. A government body would pay for the HVAC upgrades including windows and wall insulation. The landlord forwards the energy cost savings to the government until the upgrades are paid for. Then the landlord gets the icing on the cake.

One problem is the moment the word "Government" enters a contract, prices go up as each level of bureaucracy adds their fees. Weasels infest the program to get their moment of fame. The payback period will be too long.
 
Nothing is free , why don’t people get that ? The landlords will figure out how to cover costs whether it’s up front or buried, but they are giving anything away .


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I have met plenty tenants that feel landlords owe them free rent as they make enough on capital appreciation.

Ridiculous arguments like ‘landlords should be outlawed and all rent be free to everyone that wants it’.

Unicorns and rainbows.
 
Nothing is free , why don’t people get that ? The landlords will figure out how to cover costs whether it’s up front or buried, but they are giving anything away .


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A friend was mediating between a teenager and his grandfather, explaining gramps wasn't cheap but had bills to pay, like hydro, water, heat, etc. Kid says "You have to pay for that?????"

Free medicare: Yeah, the contractors build hospitals for free and the staff is all volunteer. Free phone service from Bell. 3M and Siemens gives them X-ray and CT scanners.
 
Yeah , friend owned two rental towns in Hamilton, his granola head daughter wondered why he charged rent , since they were payed for . He explained he charged rent so she could enjoy the family house on Lake Ontario in Oakville and the cottage in parry sound , the time share in whistler.
She didn’t get it
He was tired on trying to explain.
There is a portion of the population that may never get it .


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Yeah , friend owned two rental towns in Hamilton, his granola head daughter wondered why he charged rent , since they were payed for . He explained he charged rent so she could enjoy the family house on Lake Ontario in Oakville and the cottage in parry sound , the time share in whistler.
She didn’t get it
He was tired on trying to explain.
There is a portion of the population that may never get it .


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If she inherited the towns and followed her desired path, she would quickly be educated in how fast you can lose money on something that was given to you for nothing.
 
A buddy has some rentals. One noodlehead turned off the radiator and through open a window mid winter. Rad froze and cracked. Yeah sure free rent all around......
 
Yeah , friend owned two rental towns in Hamilton, his granola head daughter wondered why he charged rent , since they were payed for . He explained he charged rent so she could enjoy the family house on Lake Ontario in Oakville and the cottage in parry sound , the time share in whistler.
She didn’t get it
He was tired on trying to explain.
There is a portion of the population that may never get it .


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How can they understand it if they're not required to pay for anything? I don't know your situation, but my cousins' kids don't want to work because 'we'll just inherit everything when you die anyway. So why bother working now?'

Parents are early 40s...eldest is 18.
 
How can they understand it if they're not required to pay for anything? I don't know your situation, but my cousins' kids don't want to work because 'we'll just inherit everything when you die anyway. So why bother working now?'

Parents are early 40s...eldest is 18.
That attitude makes things simpler for me. Show them your current will where most assets go to a cause you deem worthy. Tell the kids that you may amend the will in their favor in the future if their attitude and effort improves. Either way it's a win for the parents. They either make a contribution to an unrelated party that can effect peoples future or their kids pull their heads out of their ***** and improve as functional people.
 
What correction? Mississauga average price up 16% over the last year. Brampton and Caledon average price up 25%. Every region in the 905 now has average price of a detached house over 1M and 2M+ is quickly becoming the new 1M.


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That attitude makes things simpler for me. Show them your current will where most assets go to a cause you deem worthy. Tell the kids that you may amend the will in their favor in the future if their attitude and effort improves. Either way it's a win for the parents. They either make a contribution to an unrelated party that can effect peoples future or their kids pull their heads out of their ***** and improve as functional people.

Fortunately we don't have the problem but if we did the will would disburse payments equal to what the spawn earned. If they wanted to flip burgers they will be a rich burger flipper. If they make more effort they do better.

Friend of friend had the problem. Kid said why should I work because dad is worth $8 M. Fortunately he got into renovating and flipping homes and was doing OK on his own.
 

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