COVID and the housing market | Page 290 | GTAMotorcycle.com

COVID and the housing market

Friend just bought the founder of PorterAirs Toronto house , 12 million ish . Will move in , in about 3 yrs after the gut and reno, budget about 6-8 million .

The housing market is different for everyone.

Toronto real estate board says 1bd apt average is now $2,400 and likely to go up . I dont know how regular working folks do that .


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crankcall said:
Friend just bought the founder of PorterAirs Toronto house , 12 million ish . Will move in , in about 3 yrs after the gut and reno, budget about 6-8 million .

The housing market is different for everyone.

Toronto real estate board says 1bd apt average is now $2,400 and likely to go up . I dont know how regular working folks do that .


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yep, nuts.
 
GreyGhost said:
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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That's me. 400k in Cornhole bought 3 properties that generate 4900 monthly income. PIT 3000/mo, will drop to 800 a mo in 5 years when.mortgages are paid off. Should leave me $4K/mo when I retire.

Some creative TFSA work ought to make that tax free.
 
Mad Mike said:
That's me. 400k in Cornhole bought 3 properties that generate 4900 monthly income. PIT 3000/mo, will drop to 800 a mo in 5 years when.mortgages are paid off. Should leave me $4K/mo when I retire.

Some creative TFSA work ought to make that tax free.
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But is there a Starbucks next to the Louis Vuitton shop?
 
nobbie48 said:
But is there a Starbucks next to the Louis Vuitton shop?
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No. But Fred's Taxidermy is in the same trailer as Pierre' Bait and Lingerie boutique.
 
crankcall said:
Friend just bought the founder of PorterAirs Toronto house , 12 million ish . Will move in , in about 3 yrs after the gut and reno, budget about 6-8 million .

The housing market is different for everyone.

Toronto real estate board says 1bd apt average is now $2,400 and likely to go up . I dont know how regular working folks do that .


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2 of our recent clients have full size bank vaults in their basements. Crazy stuff. I don't think most people realize how much wealth there is in the Toronto area.
 
AllistonGT said:
2 of our recent clients have full size bank vaults in their basements. Crazy stuff. I don't think most people realize how much wealth there is in the Toronto area.
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I'd be happy with a tl-30. Not willing to pay for one though. At some point I'll find someone that needs one out of their house.
 
AllistonGT said:
Cash. It's better to not ask any questions. Though having cash is legal.:rolleyes:
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Only if you can reasonably prove where the cash (or any form of wealth) came from. Civil Forfiture is expanding in Canada, used to be only used for known criminals, starting to expand to persons with enecplained wealth or lifestyle that is not reasonably matched to persons profession.
 
Mad Mike said:
Only if you can reasonably prove where the cash (or any form of wealth) came from. Civil Forfiture is expanding in Canada, used to be only used for known criminals, starting to expand to persons with enecplained wealth or lifestyle that is not reasonably matched to persons profession.
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Estate lawyers get asked by beneficiaries what to do when they find large amounts of cash left by deceased. They are usually nervous about it. Told to deposit it. Just say deceased saved it over many years. It shouldn't go further. But not talking crazy amounts.
 
mimico_polak said:
Oh no...I paid 2M for a pre-build and now can't close because of gov't meddling...


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Wtf is wrong with people? 2m for their first house and they added 90k in upgrades?

"First-time homebuyer Gurcharan Rehal agreed in October 2021 to pay $1.959 million, plus $90,000 in upgrades, for a single-detached home"

Then we move onto the payment comment. Assuming new rate is 5.5% (that's in the ballpark), we are looking at something like a 1.6M mortgage (35 years, 1% is about 5k/mo, 5.5% is about 12k per month).

"he says the mortgage rate he was pre-approved for would have required monthly payments of $5,000, but now he's being quoted amounts between $12,000 and $15,000 per month."

If you signed up for a 35 year commitment that used all of your money and the foundation was that the lowest interest rates in history do not rise for 35 years, you obviously need the bat of reality to teach you a hard lesson. Now, if my math is correct, they have ~500k saved up for a down payment. That should cover the lawsuit they are going to lose when the house sells for 1.6-1.7M. Back to square one, make better choices next time.
 
GreyGhost said:
Wtf is wrong with people? 2m for their first house and they added 90k in upgrades?

"First-time homebuyer Gurcharan Rehal agreed in October 2021 to pay $1.959 million, plus $90,000 in upgrades, for a single-detached home"

Then we move onto the payment comment. Assuming new rate is 5.5% (that's in the ballpark), we are looking at something like a 1.6M mortgage (35 years, 1% is about 5k/mo, 5.5% is about 12k per month).

"he says the mortgage rate he was pre-approved for would have required monthly payments of $5,000, but now he's being quoted amounts between $12,000 and $15,000 per month."

If you signed up for a 35 year commitment that used all of your money and the foundation was that the lowest interest rates in history do not rise for 35 years, you obviously need the bat of reality to teach you a hard lesson. Now, if my math is correct, they have ~500k saved up for a down payment. That should cover the lawsuit they are going to lose when the house sells for 1.6-1.7M. Back to square one, make better choices next time.
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I see you missed an important part of the article....he's an UBER driver.

Now I'm no expert...but I didn't know UBER pays well enough to qualify for a 1.5-2M mortgage...
 
mimico_polak said:
I see you missed an important part of the article....he's an UBER driver.

Now I'm no expert...but I didn't know UBER pays well enough to qualify for a 1.5-2M mortgage...
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I just read the article and that was going to be my post as well. How in the **** is an Uber driver with 2 kids and 2 adults to support going to afford this place, even before the interest rate rise.
Maybe should have been looking at a condo for half the price.
 
If you talk to people that are actually "in this industry" , its chockerblock full of stories about people that have way overbought, had financing from solid sources like Harold the Moneylender and jeweler , that can get most people approved , and there are a thousand homes in Toronto that are on the bubble.
The private mortgages have started to see defaults, Tiff Maclan is offering up another percentage bump in January , its going to be ugly.
 
Even driving full-time, there's no way an uber driver makes enough to afford that place unless they were planning a huge % down.

GreyGhost said:
Get a jeep with snow tires and run hard during surge pricing in storms.

Edit:
A real estate agent friend just sold a 2.2M home in high park to first time buyers. Wtf.
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Not totally surprising. Lot's of possible reasons: bank of mom and dad financing, renting before buying, new wealthy immigrants.

Also could have just been something said to the agent as they have someone else selling their home.
 
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