$2M preconstruction story is now on video!
"We are not able to eat, we are not able to rest, we are not able to do anything..."
Wow!
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COVID and the housing market
- Thread starter mimico_polak
- Start date
"We are not able to eat, we are not able to rest, we are not able to do anything..."
Wow!
matt365
Well-known member
First tome homebuyer... at $1.9 million... and he's an Uber driver. He has some income from India.
Crazy. Trying to max out what you can afford, trying to ride the crazy gains in the housing market, and he got burned.
What ever happened to living within your means?
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those are within his means...according to his mortgage broker, real estate agent, and the world news of property values only going UP UP UP.
best line 'you can just rent out a few rooms and still make bank! you can't lose!'
Our bank told us we qualified for a mortgage of 700-800k when we looked...we got a mortgage of 500k because I wasn't planning on taking that chance with the market and my job.
Boohoo. Asking for delayed closing (high cost to builder, minimal benefit to buyer unless they are gambling to try to make the extra money needed) or price reduction ( f that nonsense, the buyer wouldnt have cut a cheque if the house went up a few hundred k).
Canadians need to remember (or learn) that real estate is historically a good investment over the long term but it is still easy to lose big over the short term.
Edit:
It will be interesting to see if this mess brings a hybrid model to the market. Agree to buy house for x, it gets appraised by a party agreed to in advance at closing (that appraiser being honest and 3rd party is the hardest part of this) and the builder and buyer split any difference in either direction. Stabilizes fluctuations, makes closing less likely to come apart (stabilizing cashflow for builder) and if structured properly doesnt have a clear winning or losing side over time. Now, if the builder was selling at unsupported fomo prices, they would want no part of this model. Most buyers think they are geniuses and wouldnt want to give up some of their hard earned profits (/s). There may be no uptake but it would be interesting to see what would happen if it was an option.
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DownUnder
Well-known member
I think I'll do a career change and start driving for Uber.
The short answer is it depends....
Longer answers, depends if we have a tax treaty or not and if you are a resident or not.
As a simple example if you live in Niagara Falls, Ontario but work in Niagara Falls, NY (actually used to be common, from the area). You pay income taxes in the US and the delta between what you have paid in the US vs what you would have had to pay in Canada. Over simplified but if you paid 20K taxes in the US but the same income would have resulted in 30K in Canada, you owe Canada 10K, again very over simplified example but it is the concept. In theory if that other country rates are higher you may not owe anything in Canada.
If you are no longer a resident of Canada (but still a citizen) and have no "ties" and living and working in another country you pay taxes there. They likely get you here later if you move back with your giant bag-o-cash... Again, over simplified as to determining if you have "ties" here (in some cases property, active accounts, etc.), again there are ways to avoid paying now while still following the law.
The US is getting uglier if you are a citizen even with no ties. I know many people with dual US/Canada citizenship that have lived their entire lives in Canada. Most are getting rid of the US citizenship now for tax and future estate purposes.
Here is one single civil asset forfeiture where the FBI robbed ~1000 people. There was a private business that had safe deposit box rentals. The owners of the private business were criminals. Government applied to seize the frame of the boxes but on warrant application said that contents were specifically off limits as they were the property of unknown private citizens. Once they realized the potential windfall, government kept the whole damn thing and all contents. If I rent a safe deposit box from a business, how am I supposed to know they are criminals and even if they are, why would that give gov't right to my assets?
Again, US is a cesspool, I don't think canada is there yet. The direction Canada is headed with unexplained wealth seems to be more measured but could easily go down the same road.
I'm aware of that case...
the safety deposit boxes were anonymous... and the company advertised that "the less they knew about the holders, the better"
Some people got their stuff back.. others are still fighting. Some agreed to give up a portion of their stuff to get the rest back quicker.
There's been a coupe of court rulings since that video was posted. Most recently, a fed judge dismissed a lawsuit by the box owners for breaching their constitutional rights.
It's not right... and neither what BC is proposing.
I know an American , living here for ages and he wants to drop his US citizenship. The US Doesn't want to let go of him or a piece of his Canadian income. I don't know if he owns any principle property here and if US rules can claim on the cap gain.
The governments of Canada, Ontario, Toronto and most other places are not living within their means. Raising taxes is a dirty phrase to the tax payer so rule that out. Instead we have new and / or higher user fees and minimized services.
70% of Canadians carry debt so forfeiture is unlikely to affect them. As the government needs more cash would the debtors choose paying higher taxes or seeing the government steal from the rich?
Odd that in the USA they can't search your car without probable cause but they can seize your safety box. They may have to rename them FBI boxes.
Test the cash for drug residue. With the popularity of sniffing coke some people say it would be hard to find $20's that haven't been in contact with dope. Have you ever visited someone that smokes and come home smelling like an ashtray? Common sense would demand a threshold.
Police are allowed to lie to criminals to get confessions. Where else? The ice gets thinner.
I heard somewhere that in difficult to prove cases, the US police departments agree to settle out of court for a 50/50 split.
I worry about the future.
Unless you get them at mine prices I thought they were over rated.
Two workers at XYZ smoke, buy Starbucks coffees and drink a few brews each night. One worker quit the expensive stuff and puts the $40 a day into a pot. A year later he takes the pot with $14,000 in it to the bank and gets busted.
Same T-4s, similar houses and cars.
Side one: I'm in my forever home. Your actions are making me sick and miserable. You ignore my situation and you and the courts don't have to put up with what I have to put up with. I have nowhere to go and nothing to lose.Damn. 73 yo man is mad at condo board and has had a restraining order against him by the board since 2018. Last night he kills a lot of them with a handgun and is then killed by police. Another reason to avoid condos. Obviously these issues started before covid but it hasn't been great for the mental health of anyone. Hopefully this advances mechanisms to force owners with unresolvable issues to leave.
Police name gunman in Vaughan mass shooting, was involved in dispute with condo | Globalnews.ca
York Regional Police Chief Jim MacSween said 73-year-old Francesco Villi died after an interaction with an officer on the third floor of the building.globalnews.ca
Side two: There is no concrete evidence of severe medical issues caused by magnetic fields. Cancer can hit anyone at random. There is no parallel universe that tracks your health to prove you wouldn't get cancer living elsewhere.
The gun used, as I hear, was a semi automatic. Was it legally acquired?
Things like this do happen with expropriations as well and too bad if you can't buy an exact replacement.
Here's $4,000 for your perfectly good running written off car. Sorry if everything in that range is a junker.
I understand the guy's plight but dead people don't win lawsuits.
I was in a condo office when a guy came in totally berserk and security had to be called. After he was gone someone asked how he ended up in the condo. His mother bought him the unit. I guess she was afraid of him.
$10 K cash or anything easily converted to cash.
Province seeks forfeiture of $2.5-million Vancouver home allegedly linked to worldwide direct-mail scams
Rosanne Day and others are already the subject of another proceeding where province seeks to take about $15.5M in property and bank accounts.
vancouversun.com
The only argument the buyer has is that if the market shifted up the builders often have an escape clause to bump prices.
Once the contracts have been signed, sub trade contracts, supplier contracts etc, dropping out has to cover those even if actual the tradesman gets zip.
Isn't HTA 172 a precedent? Guilty until proven innocent and you don't get your money back.
They can make that argument but I doubt it helps in court. Maybe in court of public opinion. I would have no issue if such clauses were made illegal. In a buyers market all power is with the builder and even if a buyer sees the poison pill they either accept it or the next buyer does. Currently they are immoral in many situations but almost never illegal.
Mikedezo44
Well-known member
It states on Government of Canada website that any home over 1 million requires %20 down payment. News article says he put down 260k...maybe something fishy going on there, or the final instalment due at signing the house over? Anyways, CRA should be taking notes looking to see if appropriate taxes are being paid.
5000 comments under the article now. Comments turned off early this morning from the Youtube part. Everyone asking questions. One of them said out of 6 people mentioned, 2 were mortgage brokers, and 2 were realtors (speculators complaining? did not confirm)
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