Typical Posh houses in the general area are listing just under three million but at three or four times the density.Treasure hill bought an entire estate lot subdivision in aurora in 2020. Average of 3M per house, total of 48M. Owners stayed in their houses for two years rent free. Demolition under way now.
Post | CAG Richmond Hill
www.cagrichmondhill.com
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COVID and the housing market
- Thread starter mimico_polak
- Start date
Effing hell. Looks like I’m the only one in my group of friends not buying properties in Poland.
Buddy just bought 3 properties within the last 6 months….about 500k total CAD.
I need to look more into this, as it may be too late…but maybe not.
Buddy just bought 3 properties within the last 6 months….about 500k total CAD.
I need to look more into this, as it may be too late…but maybe not.
Typically much larger lots dont sell at a huge premium. That being said, I am surprised they got everyone to agree at a 3M average. To get that level of cooperation, I would have expected a bigger premium over normal transaction prices. Even if someone really wants my house, I am not going through the hassle of a move for fair market value. If you want me to move, premium needs to be 30% or more.
The two years of free rent is something but not all that interesting. You can probably rent an equivalent house for ~6k so you saved ~150k but most people would rent smaller and cheaper while looking for a new home. Also, you need next house to be ready in time so realistically, you will have next house in your name well before the deadline which limits rent savings.
I would Airbnb the hell out of the subdivision. Big party houses, not too concerned about damage, neighbours may get grumpy but they wont be your neighbours for long. That could be an interesting and profitable path.
Totally agree. You need at least a 10% premium to cover various fees and taxes plus the stuff that doesn't fit the new place has to be replaced. Then you have to ask "What's in it for me?" The cat goes strange and starts marking territory.
A good while back a neighbourhood or street in east Toronto worked it the other way. Either a seed was planted or a situation noticed and the whole street got together making an offer to a developer. The home owners got above market prices with no real estate fees and the developer didn't have to fight the local militia.
Honest Ed was concerned about Walmart setting up shop in his neighbourhood so bought everything he could to stop anyone amassing a large block of land. Unfortunately dollar stores took over the market and they don't need mega properties.
One also has to face the inevitable. Being the last hold out sucks. The former Beverly Hills Hotel on Wilson must have bought the street behind it for more parking but one owner held out. For years there was the one house in the middle of a parking lot. No privacy, hot in the summer, windy in winter and a neighbourhood committee of one. The target sales market was the hotel and they knew it.
Properties dropped here and have bounced back , maybe 10% off the crazy levels , but up 10% from Feb /Mar.
I wonder how much people’s idea of how they ‘live’ is driving this ? We certainly spent more time at home in the last 3 yrs than previous 20 . This perfect house is no longer perfect.
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I wonder how much people’s idea of how they ‘live’ is driving this ? We certainly spent more time at home in the last 3 yrs than previous 20 . This perfect house is no longer perfect.
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Makes sense. The 'couple of spots' are probably very desirable and agents are listing way below value so they can get back to the 'sold over asking' narrative.
As I mentioned before...I haven't seen much slowdown, and actually expect the BoC to start cranking rates up again. But I know nothing.
Meanwhile, some banks are predicting dropping to 3% by the end of 2024. It's hard to go up more now and get back down to 3. I dont know enough to know who to believe. My mortgage renews early next year and 99% chance it will be variable.
DownUnder
Well-known member
Talking to the agent, they were looking for 1.75. Got 2 bully offers and took one at 2m, then in the other 7 offers was one even higher. Owners were happy either way.
Come on 3% then! I'm at Prime - 1.3% variable so would like that reprieve.
My rate rise since I went to variable has been close to $600/month. That's a Tesla finance payment!
A little more information. There were a few sales on house sigma for just over 2M late 2020. Were those the thin edge of the wedge and developer called a meeting after amassing a land block? Apparently top house went for 5M. Lots were big (about 2 acres). That one lot probably gets 10+ detached houses or a ton of townhouses.Treasure hill bought an entire estate lot subdivision in aurora in 2020. Average of 3M per house, total of 48M. Owners stayed in their houses for two years rent free. Demolition under way now.
Post | CAG Richmond Hill
It would be really interesting to see the strategy. Does first house to sign get 1M over fmv and each subsequent house gets 100K less over fmv? You don't want to stay once your neighbourhood is ruined but you don't get a premium anymore at that point.
It looks like one house is still occupied and has their garbage out for pickup. The rest are empty (and some have started to disappear).
Some of the previous real estate listings talk about how special the development it and how there won't be new ones like it anymore. They were more correct than they realized. Houses are probably ~1990 vintage.
Many had high end stuff (hot tubs, $20k stoves, etc). Does developer let you sell off that stuff? It could probably get negotiated in. They obviously don't want it, just some value from it.
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The local service station was about an acre and it has been replaced by fourteen luxury townhouses. Recommended pet is a mountain goat. If they had gone with the casitas type it could have been triple that. The towns have recently sold for about a million.
The old owners taking small stuff could have happened but taking anything substantial would mean restricting the design of their new place. The developer could call in Restore to see if they want any cabinetry or big ticket items and possibly get a tax credit.
If someone is buying used stuff on speculation they pay pennies on the dollar. A ton of money was spent on architectural details for the homes. However removing it and storing it, waiting for the right buyer to come along, isn't a fast turn over. I don't see the developer wanting to be distracted by nickels and dimes when he has a project worth a couple of hundred million on the books.
The contents would go to the wreckers. They may even get the land cleared for free if there is enough stuff for the demo company to sell.
It's heartbreaking to see what goes to the dump but I can understand. My mother was extremely frugal and if I was going to throw something out she would tell me she may know someone who could use it. A year later I would still be tripping over it.
My my, deja vu
SIL lost out on a house in Durham because the seller wouldn’t allow the condition of a home inspection.
We’re back to that eh. Sheesh
We’re not completely back to that yet, many are apparently pushing to prevent it , mostly because they know there are problems and they are not wanting to give the buyer leverage. Lot of sellers know if they take the next offer at par or 50k less it’s better than dealing on the inspection report .
Nephew tried to buy a KW a house , older and had cast iron drains with several “rust blisters” so a redo would be in order . He bid 700 on an 800k house . It sold for 800. Estimates to replumb was 20-30k depending on how far they had to go .
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Nephew tried to buy a KW a house , older and had cast iron drains with several “rust blisters” so a redo would be in order . He bid 700 on an 800k house . It sold for 800. Estimates to replumb was 20-30k depending on how far they had to go .
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That gets ugly if a known defect is not divulged. My M-I-L's place sold (Estate) and it was as is. There wasn't anything wrong with it as my B-I-L thought it was going to be his and he had her fix anything that could go wrong.
I'd say that's a good thing. Not doing a home inspection is one thing, a seller outright refusing a home inspection condition is nothing but red flags to me.
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