COVID and the housing market | Page 306 | GTAMotorcycle.com

COVID and the housing market

Had a few drunk chats on the weekend with buddies and looks like everyone is starting back to trying and pick up properties in Poland and Spain (wtf non Spaniards) for AirBNB.

Starting to feel I should begin my landlording again but it’s gonna be tough going with price of entry so high nowadays.

I expect the market to come down further soon but anything solid is being snapped up by investors also.
 
mimico_polak said:
Had a few drunk chats on the weekend with buddies and looks like everyone is starting back to trying and pick up properties in Poland and Spain (wtf non Spaniards) for AirBNB.

Starting to feel I should begin my landlording again but it’s gonna be tough going with price of entry so high nowadays.

I expect the market to come down further soon but anything solid is being snapped up by investors also.
Click to expand...

As someone who just sold, I can tell you the investors are coming out of the wood work. They are also lowballing the F out of you. Their final offer wasn’t even in the same league as my closing amount.
 
How about the cottage market? It may have soared higher than residential.

Haliburton listings were pushing double at one point. Now they're toys at high interest rates.
 
Evoex said:
As someone who just sold, I can tell you the investors are coming out of the wood work. They are also lowballing the F out of you. Their final offer wasn’t even in the same league as my closing amount.
Click to expand...
I had investors offer me 1M for my six plex when I was selling….sold for over double at the time.

Those guys will low ball anything and hope for a desperate seller.

And congrats on the sale. When do you pick up the AMG?
 
mimico_polak said:
I had investors offer me 1M for my six plex when I was selling….sold for over double at the time.

Those guys will low ball anything and hope for a desperate seller.

And congrats on the sale. When do you pick up the AMG?
Click to expand...
It doesn't take much effort to throw out lowball bids. You get some hits and it can make you money quickly if you do a quick polish and flip. Hell, some don't even do that, they just have the benefit of removing time pressure. If you can pick up for hundreds below fmv as the seller cares more about quick close, you can afford to wait for the right buyer.
 
Rental prices keep creeping up around here , fully detached nice houses are 4,200 to 4,500 and two bd condos are 2,800 3,200 . At least with the condo you can get heat/ac sometimes a cable pkg . The utilities in a house rental could get you to 5k a month ? And they are renting. It’s more than mortgage money , but it’s that massive down payment in this area that’s killing people . We are seeing multi families taking houses , which was an oddity here previously. Putting a roof over your head did not get cheaper really even with retail prices dropping.


Sent from my iPhone using GTAMotorcycle.com
 
crankcall said:
Rental prices keep creeping up around here , fully detached nice houses are 4,200 to 4,500 and two bd condos are 2,800 3,200 . At least with the condo you can get heat/ac sometimes a cable pkg . The utilities in a house rental could get you to 5k a month ? And they are renting. It’s more than mortgage money , but it’s that massive down payment in this area that’s killing people . We are seeing multi families taking houses , which was an oddity here previously. Putting a roof over your head did not get cheaper really even with retail prices dropping.


Sent from my iPhone using GTAMotorcycle.com
Click to expand...
Ages ago a bunch of were talking at coffee break and an Italian said he gave his paycheque to his mother. Everyone was astounded.

Then he explained that everyone in the house did it. It was the Bank of Mama. Mortgages got paid off. No one used credit cards. No car loans. If you needed a new suit for a wedding mama gave you the money. Car insurance? Bank of mama. The banks didn't get fat off them.
 
crankcall said:
I think at a point that was a pretty popular european model , mainly because european banks had a habit of tanking and there was little trust in the system
Click to expand...
If people can trust each other, the system works. One brother has $10,000 in the bank making .75% taxable while the other is paying 10% on a car loan, non deductible. The banks love it. Going the other way the key word is trust. Mama is banker, financial advisor and security, armed with a big wooden spoon.
 
nobbie48 said:
If people can trust each other, the system works. One brother has $10,000 in the bank making .75% taxable while the other is paying 10% on a car loan, non deductible. The banks love it. Going the other way the key word is trust. Mama is banker, financial advisor and security, armed with a big wooden spoon.
Click to expand...
Benevolent dictator for the win. My favorite form of government. Sadly, can't exist in a larger group as some asshat won't be benevolent and the serfs will cheat on contributions.
 
Just read a Toronto news article that homeowners bought pre build houses at the peak of the market . The builders are now selling the same model at a lesser price and homeowners want discounted prices .
I think this is a sorry you suck situation. I don’t think the builders owe them a nickel


Sent from my iPhone using GTAMotorcycle.com
 
crankcall said:
Just read a Toronto news article that homeowners bought pre build houses at the peak of the market . The builders are now selling the same model at a lesser price and homeowners want discounted prices .
I think this is a sorry you suck situation. I don’t think the builders owe them a nickel


Sent from my iPhone using GTAMotorcycle.com
Click to expand...
The same owners would be telling the builders to F*(K off if the reverse was happening where they wanted to charge more for the houses as the market value went up.

This was happening a lot several years ago, Especially the to the buyers that needed to wait for 1-3 years for their house to be build.
I have a friend that ended up waiting around 3 years for their house (or what ever the maximum allowable delay is by law). Luckily for them the builder did not back out of the contract and my buddy got a house from the value of 3 yrs earlier.
 
Last edited:
crankcall said:
Just read a Toronto news article that homeowners bought pre build houses at the peak of the market . The builders are now selling the same model at a lesser price and homeowners want discounted prices .
I think this is a sorry you suck situation. I don’t think the builders owe them a nickel


Sent from my iPhone using GTAMotorcycle.com
Click to expand...
Agree. It does make for an interesting mess though. Buyer cant get approved for enough mortgage as market value has dropped and cant sell for what they agreed to pay as market value has dropped and cant fail to close as builder will sue and win. Basically, by signing the contract, they locked in a few hundred thousand dollar loss with no way to dodge it.

I do wholeheartedly agree that wins and losses should follow one party (or split if agreed upfront). In the boom, some builders were being ***** and using legit clauses in bad faith to keep the win but have no problem leaving buyers with the loss. That's not cool and deserves a huge hammer. You agreed to sell a house for x dollars, sell it for that price and move on. Get better at your job and dont do presales and take deposits years before you plan on putting a shovel in the ground because you dont have your financial life in order.
 
So a new cruise line has launched a pilot project, work globally from a boat. A 3yr world cruise , stopping in 135 countries, 360 ports of call , zoom offices available , high speed wifi , work centers , 24hr hospital, starting at $29K US per yr. food and bevys in.

Thats cheap than rent . Not sure I can talk the wife into killing the cats so we can go.
 
crankcall said:
So a new cruise line has launched a pilot project, work globally from a boat. A 3yr world cruise , stopping in 135 countries, 360 ports of call , zoom offices available , high speed wifi , work centers , 24hr hospital, starting at $29K US per yr. food and bevys in.

Thats cheap than rent . Not sure I can talk the wife into killing the cats so we can go.
Click to expand...
link?
 
GreyGhost said:
Agree. It does make for an interesting mess though. Buyer cant get approved for enough mortgage as market value has dropped and cant sell for what they agreed to pay as market value has dropped and cant fail to close as builder will sue and win. Basically, by signing the contract, they locked in a few hundred thousand dollar loss with no way to dodge it.

I do wholeheartedly agree that wins and losses should follow one party (or split if agreed upfront). In the boom, some builders were being ***** and using legit clauses in bad faith to keep the win but have no problem leaving buyers with the loss. That's not cool and deserves a huge hammer. You agreed to sell a house for x dollars, sell it for that price and move on. Get better at your job and dont do presales and take deposits years before you plan on putting a shovel in the ground because you dont have your financial life in order.
Click to expand...
So what is consumers affairs doing about this. They slammed the door on door to door sales because of ethics. Why not the "Closing costs" scam. I don't get to throw $50K on my expense account when ever I want so why do the builders?
 
It’s not a closing cost scam, you bought a house being built with an established market value of 1.6 million , today that house is 1.2million . And somebody signed up for that house , at that price .
For the folks that bought 5 yrs ago , and sold for 600k more last summer before the slump , should they go find the shmuk that bought the mini mansion and rebate him? Hell no lol


Sent from my iPhone using GTAMotorcycle.com
 
crankcall said:
It’s not a closing cost scam, you bought a house being built with an established market value of 1.6 million , today that house is 1.2million . And somebody signed up for that house , at that price .
For the folks that bought 5 yrs ago , and sold for 600k more last summer before the slump , should they go find the shmuk that bought the mini mansion and rebate him? Hell no lol


Sent from my iPhone using GTAMotorcycle.com
Click to expand...
I think he was referring to high times where some builders were saying utility connections cost 60k and tacking that on the bill while other builders were saying ~6k for the same connections. Contract allowed utility connections on top but didnt specify markup allowed on bill.
 
crankcall said:
It’s not a closing cost scam, you bought a house being built with an established market value of 1.6 million , today that house is 1.2million . And somebody signed up for that house , at that price .
For the folks that bought 5 yrs ago , and sold for 600k more last summer before the slump , should they go find the shmuk that bought the mini mansion and rebate him? Hell no lol


Sent from my iPhone using GTAMotorcycle.com
Click to expand...
I was referring to the $50,000 utility hook ups etc, all undocumented. It's too easy for the builder to bail out or tap on fees. We need bottom line, in the door pricing.

I agree that sadly some innocents get caught in the same net as the greedy speculators. Unless you have a large financial life jacket be careful where you swim.
 
You must log in or register to reply here.

Back
Top Bottom