Well, when it isn't arms length, lots of income dodginess can happen. Income doesn't have to be related to work performed, it can just be related to blood (see JT).
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COVID and the housing market
- Thread starter mimico_polak
- Start date
If you're playing the long game, slips could line up. Send some money out through Jim Bob (and mrs jim bob) who then give it back to dad. Family pays less tax than if dad took it as income.
And the other side of the coin….thank you for your application. Now 5k cash and I’ll get you the mortgage.
I’m an idiot. Had the chance to do it but chickened out.
Had I paid 5k I could’ve got the house, kept the investment property and been laughing all the way.
But noooooo. I had to be a pansy.
You mean honest.
And also but for the grace of god MP could have been out there with a sign. The scams can be good when they pay off but he could also have no house and no investment property (and a very angry mrs mp) if prices dropped and rates rose at the wrong time.
True.
And as @GreyGhost mentioned it could’ve gone either way.
However, with the gift of hindsight…my investment property would be worth an extra 500-700k and I would be in a semi detached half paid off by now.
We were scared of the semi-detached price as my job was coming to an end, so we went with a townhouse.
The ‘safe’ option was wrong as the monthly $300/month in maintenance fees could have easily afforded us the bigger house with no need to upsize after.
Live and learn. Another 6 plex for sub 1M ain’t going to make its way into my portfolio.
You may be surprised. Four to 12 unit apartments are often quite affordable per unit. They attract next to no interest from people looking for a place to live. That puts you up against other investors that are looking at cashflow and ROI only. It makes no sense to spend 500K per unit when they only generate rent to cover 200K per unit.
Look in places like Cornhole, North Bay, Sudbury burbs etc and you may find something. Of course personally managing/maintaining them there would not be easy.
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Problem was (and is) that over 3 units they classify as commercial properties.
30% down payments, higher rates, and lower amortization periods.
When we bought a 6 was still residential. And commercial started at 7+…then it changed…hence why we couldn’t refinance as we would trigger the commercial finance regulations.
That dream has sailed.
30% down payments, higher rates, and lower amortization periods.
When we bought a 6 was still residential. And commercial started at 7+…then it changed…hence why we couldn’t refinance as we would trigger the commercial finance regulations.
That dream has sailed.
How does it work if you buy a triplex and add an ADU? I guess the residential mortgage survives but they won't give you a mortgage for ADU so you would need to add more personal money? Even a triplex is far cheaper per unit than a duplex as most people that can afford to buy it aren't interested in living in it.
@mimico , your Canadian Polish , a true Pol would have sucked it up , moved into one unit of the plex , paid that baby out and of the missus complained make her start selling peirogies out a side window .
The new new Canadians are getting soft .
Sent from my iPhone using GTAMotorcycle.com
The new new Canadians are getting soft .
Sent from my iPhone using GTAMotorcycle.com
No clue. But if you’re financing it…BAM it triggers it.
My cousin also bought a 5 plex at the time, and other cousins have a 3 plex they bought at the similar time.
They all used the crooked methods to finance purchasing a house with the equity built up in their properties.
Regardless. Maybe one day lol.
We lived in one of the units for 4 years. Until the first baby shows up. The units were all 500sqft each.
It was awesome. 300m to Lake Ontario. Top floor. Makes me sad just thinking about it.
I'd rather sleep in a small house than stay awake worrying in a big one.
Having your own house doesn't eliminate maintenance fees. You just have to control them differently. Set aside $50 month for a new roof every 20 years, $30 for furnace, $50 for insurance etc. You don't live for free after the mortgage is paid off.
With just my wife and I we had a small house. It would have been paid off by now. With a couple kids, it wasn't a great arrangement as there was no space to move. If we didn't have a choice we could have made it work but we are far happier with some more space as life is not constant chaos. Without the stupid exemption on principal residence capital gain we probably would have bought a smaller/cheaper house.
I wish those numbers worked for me. As working numbers, $100 a month for roof, $80 for furnace/ac, 250 for insurance are closer to what I need. Property tax is more than all of those put together. The sum of expenses post mortgage is far far less than renting an equivalent house (obviously) but very few people rent the same house they would buy. Rentals are normally far smaller/less fancy to minimize the burn.
I thought you sold it already? Waiting for the market to bottom to sell it? Can you book the decline in market value from the passing of your father (deemed disposition) until now as a capital loss to use against other capital gains?
waiting for my sibling to get her **** out.
yeah, i won't pay **** for capital gains i guess, since it's value is now less then when i took ownership. kek
My daughters place is probably a thousand square feet, one bathroom and the previous family raised five kids there. Probably had one phone, rotary dial, black, bottom of stairs. Now the American dream is a thousand square feet per inhabitant.
In many ways the smaller crowded home has social / reality advantages. I wonder how many of the eco-protesters out there (Save the forests, ban the quarry) live in mega homes and would consider 1000 SF for a family as child abuse.
AllistonGT
Well-known member
My parents bought their first house when I was 7 weeks old. 1965. "A" section in Bramalea. Lived there till I moved out at 21. All the houses were about 1000 sq/ft. We were all quite happy. Great place to grow up in the 70's. Small, safe, clean. Not so much now.
Look up David Suzuki. Preaches small houses (he has multiple mansions), and small family sizes (he’s got lots of kids) and is the epitome of eco warrior hypocrite.
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