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COVID and the housing market

It's funny almost everyone either has a friend of family member(s) that are completely up to their eyeballs in debt or they ARE the friend or family member with the debt. At one time or another we all live outside of our means, but others seem to do it on the daily.
I make well over 6 figures, have no debt excluding mortgage, car and the normal monthly bills and it seems some months we just get by. We take no trips, pay for renovations etc. with saved cash and make no large purchases. I often wonder how people do it with 3 kids, 5 cars, a 2500+ sqft house etc...
 
Jampy00 said:
It's funny almost everyone either has a friend of family member(s) that are completely up to their eyeballs in debt or they ARE the friend or family member with the debt. At one time or another we all live outside of our means, but others seem to do it on the daily.
I make well over 6 figures, have no debt excluding mortgage, car and the normal monthly bills and it seems some months we just get by. We take no trips, pay for renovations etc. with saved cash and make no large purchases. I often wonder how people do it with 3 kids, 5 cars, a 2500+ sqft house etc...
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I think most of us are right there with you.
 
GreyGhost said:
I think most of us are right there with you.
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Good to know.
I often teeter between being proud for doing "the right thing" and feeling like a sucker when I see over half my income disappear every two weeks...
 
At points in life I have lived beyond my means , but I was always able to pull it out of the fire . I had a plan . I’ll catch up in a few months is not a plan.

And Jampy00 , a good friend is a mortgage broker , the number of clients that bought a 500 K house , that is now a 1.2m house , but 10 yrs later they still owe 500k or more , is staggering. Literally a house of cards .



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crankcall said:
At points in life I have lived beyond my means , but I was always able to pull it out of the fire . I had a plan . I’ll catch up in a few months is not a plan.

And Jampy00 , a good friend is a mortgage broker , the number of clients that bought a 500 K house , that is now a 1.2m house , but 10 yrs later they still owe 500k or more , is staggering. Literally a house of cards .



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There is a balance there. Zero leverage on your house is not the fastest way forward. That being said, I suspect most of the people you referenced bought trips and cars not other investments.
 
So true. I live in a modest house but still valued over 1 million (just stupid)
A house on our street was once a rental, then the owner decided to sell. Renters left and he was in there for weeks/month, did a full tasteful reno.
People bought the house and immediately gutted it to re-reno it. Literally brand new toilets, sinks etc. sitting in there garbage.
 
9/10 times your taste is not the next guys taste .

Friend just bought the former house of the owner of PorterAir . It’s a really nice house in forest hill , they will throw 8m at the reno , probably spend 10 when done . It was already an enormous nice house


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crankcall said:
9/10 times your taste is not the next guys taste .

Friend just bought the former house of the owner of PorterAir . It’s a really nice house in forest hill , they will throw 8m at the reno , probably spend 10 when done . It was already an enormous nice house


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Postal code pricing is very real there too. I did one job where the lady renovated only the main floor of her house. Less than 2000 sq ft. Done quite poorly. They did use Baldwin knobs though. Those were nice. This was most of 15 years ago. Bill was over 400k.
 
crankcall said:
9/10 times your taste is not the next guys taste .
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I don't disagree at all, but to literally throw away a complete professional reno, just seems odd to me. But, people... whatcha gonna do...
We lived in our house untouched for almost 10 years before we did any interior reno's we focused on exterior maintenance etc.
 
GreyGhost said:
Postal code pricing is very real there too. I did one job where the lady renovated only the main floor of her house. Less than 2000 sq ft. Done quite poorly. They did use Baldwin knobs though. Those were nice. This was most of 15 years ago. Bill was over 400k.
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Doing a partial reno can be a disaster. I got involved in a luxury marble and Jacuzzi bathroom in a stuffy old Leaside house. The rest of the house had ancient broadloom and wallpaper, gloomy rooms and kitchen.

The blinged out bath was like having one tooth replaced and having it pearl white among the yellow ones. When I went back into the original part of the house it felt like a time portal to the past.

A client who lucked into north Rosedale, near Sunnybrook, needed a new kitchen but an Ikea one would lower the value of the property because kitchens under multiple six figures were the sign of poverty and shortcuts.
 
Your real estate agent will tell you your house is dated , the kitchens guys will tell you a refresh is needed every decade , the bathroom guys will push you to do the bath over every 8-9 years . And you need heated towel bars , a soaker tub that will never be used and radiant floors which are nice . But you’ll also spend an average of 18k on a bathroom. Your moms bath where you could wash your face and take a dump doesn’t cut it anymore.


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Our bathrooms are def dated. But those are projects for another year, def not this year as I’m already tired of this renovation.

The primary pluses of our place are very simple…good location and large corner lot.

The house is secondary. And unless that other property comes up, I’m not going anywhere.
 
mimico_polak said:
Our bathrooms are def dated. But those are projects for another year, def not this year as I’m already tired of this renovation.

The primary pluses of our place are very simple…good location and large corner lot.

The house is secondary. And unless that other property comes up, I’m not going anywhere.
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Ditto. I'm not playing two foot itis a couple of hundred dollars at a time. Drop 10 million in my lap and I'll go for a 5 million place and have five million to look after it for as long as I can enjoy it. Then the loony bin.
 
nobbie48 said:
Ditto. I'm not playing two foot itis a couple of hundred dollars at a time. Drop 10 million in my lap and I'll go for a 5 million place and have five million to look after it for as long as I can enjoy it. Then the loony bin.
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I have my number lol. $2M for my house and I'll move.

Unless my friends sell theirs for 1.5-1.6M...then I'd have a hard decision to make. If I can sell mine for 1.4-1.5 I can make it work.
 
I've seen this chart today in the news somewhere. Don't think it's a good thing to be at the top of this one..
Do you think it's all BS and our housing market is as strong and stable as it could be (according to my buddy real estate agent)?

1685719871025.png
 
Sochi said:
I've seen this chart today in the news somewhere. Don't think it's a good thing to be at the top of this one..
Do you think it's all BS and our housing market is as strong and stable as it could be (according to my buddy real estate agent)?

View attachment 61268
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IMF seems to have jumped the shark and just publishes garbage to create headlines (and allow politicians to splash money around). What is Criteria 4 cumulative real house price growth 2020-2022? We get dark red on that one. Are they trying to argue that it was all fake and prices will revert to 2019 levels? That's a long way from where we are now and there has already been a correction and now it is rising again.

An interesting thing that isn't in that chart is mortgage term. Prior to 2018, approximately zero mortgages were 30 years or longer. Now it is something like 25% of mortgages are 35 years or more. Is that a risk factor? I don't know. People are extending terms to keep payments they can afford but they are being allowed to do it. That lessens the shock that would happen if people had to dump because they didn't have the cashflow.
 
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