COVID and the housing market | Page 307 | GTAMotorcycle.com

COVID and the housing market

Went to talk to my mortgage broker yesterday to see whether it's worth doing a renovation...or just flip the house to something else.

Basically looking at the numbers, I would have to sell my house for a minimum of 1.3...and then buy a house for a maximum of 1.35M in order to still qualify...

He also said 'I've seen your house, your lot, and your neighbourhood...do not leave there if at all possible'.

Looks like renovation will be the next step forward.
 
mimico_polak said:
Went to talk to my mortgage broker yesterday to see whether it's worth doing a renovation...or just flip the house to something else.

Basically looking at the numbers, I would have to sell my house for a minimum of 1.3...and then buy a house for a maximum of 1.35M in order to still qualify...

He also said 'I've seen your house, your lot, and your neighbourhood...do not leave there if at all possible'.

Looks like renovation will be the next step forward.
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I agree with your broker. To get another bedroom by putting in another 50 grand means moving way out or way down in ambiance.

The only justifications to move are 1 you just want the changes, 2 someone in the hood bugs you.

Move and you find out the new next door neighbour just moved in from hell.
 
nobbie48 said:
I agree with your broker. To get another bedroom by putting in another 50 grand means moving way out or way down in ambiance.

The only justifications to move are 1 you just want the changes, 2 someone in the hood bugs you.

Move and you find out the new next door neighbour just moved in from hell.
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Even five years ago when we were figuring out where to move, in area move made no sense. Adding a bedroom, bathroom and garage was ~300k jump. Move to a different area and you can reset the bar and get far more house for the money (but you are obviously in a different area for better or worse). I keep sending mp places selling near me roughly in his budget. No luck budging him from his cool neighbourhood. The houses/lots (in many cases) are far different for equivalent money (but then you're near barrie instead of much further south).
 
GreyGhost said:
Even five years ago when we were figuring out where to move, in area move made no sense. Adding a bedroom, bathroom and garage was ~300k jump. Move to a different area and you can reset the bar and get far more house for the money (but you are obviously in a different area for better or worse). I keep sending mp places selling near me roughly in his budget. No luck budging him from his cool neighbourhood. The houses/lots (in many cases) are far different for equivalent money (but then you're near barrie instead of much further south).
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My woe is our single car garage. I like our area but a move to a standard two story down the street with a two car garage would cost us around $500 K to improve our real estate value by $200 K. The $500 K includes fees and also upgrading to what we have done over the years.

It would make more sense for me to rent industrial space for a couple of years.
 
GreyGhost said:
Even five years ago when we were figuring out where to move, in area move made no sense. Adding a bedroom, bathroom and garage was ~300k jump. Move to a different area and you can reset the bar and get far more house for the money (but you are obviously in a different area for better or worse). I keep sending mp places selling near me roughly in his budget. No luck budging him from his cool neighbourhood. The houses/lots (in many cases) are far different for equivalent money (but then you're near barrie instead of much further south).
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You really want more Polaks in your area? Careful what you wish for!

In all seriousness your neighbourhood is beautiful, but for us it’s just too far out of the city from family and friends.

A good friend and his wife moved out to Alliston and we barely ever see them anymore, basically a 1hr drive minimum one way to see them or vice versa.
 
Moving out to zippity dooda means making new friends and recreating a social circle . We had a few that relocated to the cottage “ why doesn’t anybody come up on weekends?” , well it’s 3hrs mid week 4hrs on Friday and if it’s going to rain or snow it’s not fun. But we are lonesome, yea and your old house went up 300k in the three yrs you’ve been gone, you can’t afford to move back .


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crankcall said:
.............We had a few that relocated to the cottage “ why doesn’t anybody come up on weekends?” , well it’s 3hrs mid week 4hrs on Friday and if it’s going to rain or snow it’s not fun. But we are lonesome, yea and your old house went up 300k in the three yrs you’ve been gone, you can’t afford to move back ..............
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Real estate agent at cottage told us they love city folk. Retire, buy a cottage, reno it, sell the city home, live there 2 years, get lonesome for friends and family and then move back to the city. This generates real estate fees + lots of work for local contractors. Other variation is own a cottage for 20 - 25 years, then retire, spend 2 - 3 years doing all of the renos you've been wanting to do for years, sell the city house and relocate, then a few years later realize it's pretty isolated, especially in the winter.
 
ReSTored said:
Real estate agent at cottage told us they love city folk. Retire, buy a cottage, reno it, sell the city home, live there 2 years, get lonesome for friends and family and then move back to the city. This generates real estate fees + lots of work for local contractors. Other variation is own a cottage for 20 - 25 years, then retire, spend 2 - 3 years doing all of the renos you've been wanting to do for years, sell the city house and relocate, then a few years later realize it's pretty isolated, especially in the winter.
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Or retire to the cottage and have a heart attack. Then you don't want to be that remote.

Or ageism gets to you and you spend too much time commuting to major health care centres for blood work, physio, etc.
 
crankcall said:
Moving out to zippity dooda means making new friends and recreating a social circle . We had a few that relocated to the cottage “ why doesn’t anybody come up on weekends?” , well it’s 3hrs mid week 4hrs on Friday and if it’s going to rain or snow it’s not fun. But we are lonesome, yea and your old house went up 300k in the three yrs you’ve been gone, you can’t afford to move back .


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Old people don't like to drive at night so you get the Christmas card and letter
 
The healthcare is getting better , Huntsville has a great hospital as does Midland / Penetange, decent doctors like to live in cottage country also.
Then you have Tobermory , it’s 1.5 hrs back to Owen Sound for cancer treatment. Not all sides are an upside .


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Friends dropped a hint they may be moving…so I told them to let us know as we love their house.

Slightly smaller lot, but same neighbourhood, a pool, and a 4+2 house with the full basement I want.

Will see what’s next, as this will be over the coming months.
 
mimico_polak said:
Friends dropped a hint they may be moving…so I told them to let us know as we love their house.

Slightly smaller lot, but same neighbourhood, a pool, and a 4+2 house with the full basement I want.

Will see what’s next, as this will be over the coming months.
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Cutting out the commission on their sale/your buy can go a long way towards bridging the pain of a jump.
 
mimico_polak said:
But the only issue is the emotion in the deal….my house is worth X versus ‘I think your house is worth X’
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It's worth a shot if they're half-reasonable. It's not binding arbitration. They start with the price they think they would get, subtract the percentage RE agents would take (and any expenses to get ready to show the house like carpet cleaning, replace xxx, sand and stain hardwood, etc) and that's the asking price as the money in their bank at the end is the same either way. See if it's close to something that could work. If they are out in cuckoo land, just bow out and wish them luck. If they are in the ballpark and you disagree based on comps, try to negotiate. Either party can walk away if it isnt working out. Get it done fast (or aborted fast) so feelings dont build up.
 
mimico_polak said:
But the only issue is the emotion in the deal….my house is worth X versus ‘I think your house is worth X’
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The whole problem is your money limit. How much you get for your place and you don't know until the ink dries on your sales contract. Any number before that is speculation. There are indications of loan defaults which means some fire sales but with 400,000 immigrants coming in there will be upward pressure as well.

So you end up with $X.X million in hand and the market does an uptick. Do the friends say "That was then and now is now"?

How many people would leave a couple of hundred thousand on the table if there was a way out.

A pipe dream for almost everyone but the ideal situation is to have enough free cash to buy the house you want and then sell. What ever you get for your old place is mad money.
 
nobbie48 said:
The whole problem is your money limit. How much you get for your place and you don't know until the ink dries on your sales contract. Any number before that is speculation. There are indications of loan defaults which means some fire sales but with 400,000 immigrants coming in there will be upward pressure as well.

So you end up with $X.X million in hand and the market does an uptick. Do the friends say "That was then and now is now"?

How many people would leave a couple of hundred thousand on the table if there was a way out.

A pipe dream for almost everyone but the ideal situation is to have enough free cash to buy the house you want and then sell. What ever you get for your old place is mad money.
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100% it’s a very long shot that it would work out.

But hey…you miss 100% of the shots you don’t take right?
 
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