|
|
|
Like the housing crash in the early '90s?
Gulp.
I have no idea if 4800/mo is reasonable or not in that market. I would assume they looked at comps but I haven't so I don't know. Knowing that outflow is 3516 a month, they have a lot of room to move in their asking price and remain cashflow positive (and that assume entire amount was financed, I have no idea what downpayment was).
I have 2 nieces and a nephew at Queens. 1 lives in a 3 br with 2 roommates, she pays $800 + utilities. Another is in a 5 br student house 3 full bathrooms, he's in a basement room at $550, is sis is upstairs at $650 all in.
Do the students stay the full year or are the rooms vacant during the summer?
Normally rooms are empty during the summer but they are still paying. In my experience, maybe 20% occupancy. I did learn ways slumlords use to screw unsuspecting victims. Tenant protection is all based on monthly rent. Landlord wanted $100 increase but offered two months free in the summer. Net increase was low. The next year they added 2% and went back to 12 months a year. Mother ^(&*(&*&er. Rent effectively went up by double digits but technically didn't run afoul of the law.
Student rental is tough. It works best if your kid is in school, the are a live in, eviction is simple, as is damage control.
I'm not sure why the government is so lazy with tracking principal residences. It is almost trivial. They want you to report property sales on income tax now but there is little to prevent yku from just saying that everything you sold was your principal residence.Bought house for 1.25 as a potential flip. 2-3 months of heavy renovations (removed a pool), waterproofing etc. Painted brick and window / eavestroughs to black.
Listed for 1.25M hoping for a bidding war a year or so ago, zero interest.
On the market again. Don't think anyone actually lived there, but now hoping for an extra 100k in tax free capital gains...
Because a lot of the people making the rules are also landlords and real estate investors.
The housing crash in 89 mostly wiped out speculators. Wild speculation on urban prebuilds and gentrifying Toronto neighborhoods doubled house prices between 1986 and 88, then !!!BOOM!!! in '89 speculators got crushed and the 1 year bubble burst. The only folks that would have suffered (other than speculators) were first-time buyers who bought in the middle 6 mos bubble of 89 -- a very small number of people.
My old neighbours bought their first (and only) house at that time. Took many many years to get back to even but they just plugged away. Mortgage is now clear and they are in a low seven figure house that they paid low six figures for. Buy somewhere you can live and it will eventually work out. Could they have done better? Sure, but you don't know what the best path was until you look back.
Too many people are counting on their GTA house being their RRSP. Pay it off, sell and retire to a couple hours out of the GTA, buy for half the price and have a million or so to play with.
It's better than a rrsp. Tax free, by definition automatically inflation adjusted, it is socially acceptable to discuss (rrsp balance for the vast majority of people is very very private), service fees are lower than an investment advisor that takes a yearly percentage, etc. You do lack in diversification but you put all your money in a basket that is too big to fail and government will protect at almost all costs.
I'd say the bigger issue is that much more people are now conditioned to think of their houses and real estate as simply an investment.
So much has messed up our heads. When I was little and saw something nice my mother would say "If you want something like that you have to work hard and save your money". The work ethic.
Well the parents are right.
Save all the money you pay for lottery tickets for a year and buy decent stocks. The next year do the same re-investing the dividends. Repeat. Lotteries are a tax on stupidity.
I spend less than $40 a year on lottery. Normally much less than that. I'll buy a line once maxmillions are happening. Maybe freedom, probably $5 lit on fire. No appreciable investment value over time. For those that buy $100 in tickets a week, your guidance is very good.
I feel personally attacked...but I'll bite.
|
|
|
|
|
