COVID and the housing market | Page 328 | GTAMotorcycle.com

COVID and the housing market

As expected, the hamilton rental building that is trying to self-organize and buy the building to run as a coop is circling the drain. The important numbers are 21 units, price of 4.5-4.8M and tenants (future owners) wanting rent unchanged. On that last point, a bachelor is $544 in this building, average hamilton one bed is $1870. The math doesn't work. This is all hearts and no brains. Average unit cost is in the ballpark of $225k. Servicing that debt plus property tax plus maintenance is much closer to $2000/mo than it is to $544.

Tenants are arguing for a lower purchase price as repairs are needed. Landlord has dropped price and is refusing to drop more. Landlord bought for 975 in 2008. The tenants are fixated on this few hundred k as their savior. They need millions cheaper to make the numbers work (or millions of our tax dollars).

www.thespec.com

Hamilton tenants’ plan to buy building from landlord for co-op stuck at impasse

‘This is pissing in the pool, and it’s not going to help,’ says owner after renters air grievances over purchase price at news conference
www.thespec.com www.thespec.com
 
GreyGhost said:
As expected, the hamilton rental building that is trying to self-organize and buy the building to run as a coop is circling the drain. The important numbers are 21 units, price of 4.5-4.8M and tenants (future owners) wanting rent unchanged. On that last point, a bachelor is $544 in this building, average hamilton one bed is $1870. The math doesn't work. This is all hearts and no brains. Average unit cost is in the ballpark of $225k. Servicing that debt plus property tax plus maintenance is much closer to $2000/mo than it is to $544.

Tenants are arguing for a lower purchase price as repairs are needed. Landlord has dropped price and is refusing to drop more. Landlord bought for 975 in 2008. The tenants are fixated on this few hundred k as their savior. They need millions cheaper to make the numbers work (or millions of our tax dollars).

www.thespec.com

Hamilton tenants’ plan to buy building from landlord for co-op stuck at impasse

‘This is pissing in the pool, and it’s not going to help,’ says owner after renters air grievances over purchase price at news conference
www.thespec.com www.thespec.com
Click to expand...
If they want it at 2008 prices they should have bought it in 2008. They"ll complain again in 10 years wanting 2023 pricing.
 
mimico_polak said:
Keep buying people, houses only go up...even in the short term with an impending 'recession'. Royal Le Page says so.

www.thestar.com

GTA home prices to end year up 11 per cent, predicts Royal LePage

Despite interest rate hike, prices will hold steady as spooked sellers decide not to list, says a new report.
www.thestar.com www.thestar.com
Click to expand...
Umm..

Didn't read the article but..off the top of my head. If supply isn't there, but buyers aren't necessarily either = massive increase? I'm sure plenty of people still want in, but at what price?
 
Evoex said:
Umm..

Didn't read the article but..off the top of my head. If supply isn't there, but buyers aren't necessarily either = massive increase? I'm sure plenty of people still want in, but at what price?
Click to expand...
Well that's the beauty of it...they keep up the 'buy now before it goes higher' narrative, and they don't actually care if you can afford it or not.

Mind you, there's still people buying...but in our area (on a relatively nice street) there are houses that have been sitting for 3 weeks (90k decrease), 2 months (price low, lots of offers, delist and reprice 200k higher...and now sitting for 2 months), and another house that's ludicrously priced at 2.6M last year, 2.45....2.3...2.25M now...still sitting.

So....
 
Scuba Steve said:
Seems like the original owner gets screwed in these cases not sure why.

Sent from the future
Click to expand...
Pawn shops may get the same deal.

A friend had an expensive camera stolen years ago, pre-digital, and hunted it down at a pawn shop. He had the paperwork with S/N but had to buy the camera back.

IIRC it had something to do with the shop purchasing it in good faith, having records of the seller etc.

Was there ever any investigation into the triple death incident in Hamilton where there were allegations of the renters stiffing the owner. The owner went ape, killing the couple and getting shot himself.

Maybe the LTB doesn't want to admit that crap justice brings crap violence.
 
shanekingsley said:
Just got quoted renewal rates at:
5 year fixed 4.59%
5 year variable 5.80% (Prime -0.90%)

We renew in a month and will likely go fixed.
Click to expand...
4.59% is an awesome deal. Who with?

I’m currently at Prime - 1.3% and would potentially jump at 4.59% but for 3 years or so.

Of course soon as I do that rates will fall.

I expect rates to go up again and then lower a bit next year. But I’m obviously an idiot from my variable rate decision.
 
mimico_polak said:
4.59% is an awesome deal. Who with?

I’m currently at Prime - 1.3% and would potentially jump at 4.59% but for 3 years or so.

Of course soon as I do that rates will fall.

I expect rates to go up again and then lower a bit next year. But I’m obviously an idiot from my variable rate decision.
Click to expand...
MCAP and that's their renewal offer to us.

They provided it to us a couple months ago when we didn't know if rates would start to slightly drop or continue to rise. We asked them to hold the rate until our renewal date - which thay are doing. We also looked into shorter terms, but their 3yr fixed was considerably higher.

I checked in with my mortgage broker and he said that he could get us a cheaper 5yr fixed rate, but after running the numbers it would only amount to around $500/yr in savings. Neither my wife nor I feel like going through all the paperwork again to get secured with a different lender as MCAP has always been super easy to deal with. Broker advised us to stay with MCAP.

Broker also adivsed us that for us to come out behind on a fixed rate vs variable, this would start to be a possibility in around 2-3 years of the term and only if the BOC dropped rates steadily. Most likely we will be ahead or even until around the 3yr mark and then start to fall behind, which will balance itself outover the long term. We can afford the 5yr fixed, so that predictability is good with us for now.

We have been on Prime -0.9 for almost 15 years, so we have done very well all things considered. One property will be paid off next year and the other in 10 years, so whatever.
 
More fun with garbage stats. You need two people working full-time at minimum wage to afford the average Toronto one bed apartment. While true, people working for minimum wage should not be and cannot be trying to afford the average apartment. We need the stats looking at something like the 10th or maybe 25th percentile apartment.

toronto.citynews.ca

Torontonians need to earn more than double minimum wage to afford apartment: Report

A new report finds there would need to be a huge boost to the minimum wage for renters to be able to afford a Toronto apartment.
toronto.citynews.ca toronto.citynews.ca
 
crankcall said:
It’s ugly , you pick a “good “ job , police constable , nurse , teacher , firefighter . Your not buying a house on your own. Even if you partner up , getting the the alleged 220k they say is required is going to be hard .


Sent from my iPhone using GTAMotorcycle.com
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The 220k is garbage stats again. That assumes a first time buyer gets the average home. That is a target that is well put of reach for most. With the 220 you buy a below average home, stay in it for 5 years or so to build equity and then sell and buy an average home.

All of the jobs you listed have great pensions so you can avoid personal retirement savings and dump it into the house.
 
GreyGhost said:
More fun with garbage stats. You need two people working full-time at minimum wage to afford the average Toronto one bed apartment. While true, people working for minimum wage should not be and cannot be trying to afford the average apartment. We need the stats looking at something like the 10th or maybe 25th percentile apartment.

toronto.citynews.ca

Torontonians need to earn more than double minimum wage to afford apartment: Report

A new report finds there would need to be a huge boost to the minimum wage for renters to be able to afford a Toronto apartment.
toronto.citynews.ca toronto.citynews.ca
Click to expand...
What is reasonable accommodation for low income people?

On the low end we could emulate the people cages of Hong Kong. Apparently in England a couple centuries ago the very poor slept sitting up on benches, leaning on ropes.

I would be accused of being a zoo master if I suggested an 8 X 4 room with a Murphy bed, chair and light bulb, common washroom. It would be better than the cages and ropes.

How about doubling the minimum wage? That would escalate all wages. Maybe we have to start paying people what they're worth but what does that do to the economy when coffee slingers make $30 an hour?

Will McD's and Timmies close a lot of stores? Will the shareholders be pleased? How about the landlords leasing them space?

Of course as wages go up robotics will start pouring the coffees and flipping the burgers.

I presently see Mcdonalds outlets with a dozen or more workers running around. Cut that to three more trained types. Is that a win? Three people @$40 = $120 / hour running cost vs twelve people @ $20 = $240. Nine people out of work.

Then there are the ones so drug or booze addled they are liabilities at any job or wage.

At some point we can't afford both the increasing social costs for one element and fat investment returns for the other.

BTW CARP (retired farts) want more from the governments in the way of investment assurances. Seniors, the ones that get discount days, the ones that bought houses for five and six figures, the ones that get free drugs, want more.

To appease them the governments will hire more overpaid paper pushers.

Ask Chow, Ford or Trudeau how they are going to fix the above, with specifics.
 
Talk about frustrating. Go to buy home and old tenant won't leave. Tenants know they will get a few more (maybe even 6?) months rent free, with little to no consequences. Can easily fake some references and pay cheques on their next move. Really surprising to me you don't hear of more people taking matters into their own hands with our weak laws protecting/aiding criminals. Still no answers on Stoney Creek landlord who killed 2 tenants and himself.

Hamilton homebuyer faces imminent homelessness as tenants refuse to vacate property

A homebuyer in east Hamilton says she'll soon have no where to live because the tenants who live in the home are refusing to leave.
www.chch.com www.chch.com

Edit- on news broadcast said tenants haven't paid rent in 7 months :ROFLMAO: o_O
 
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Mikedezo44 said:
Talk about frustrating. Go to buy home and old tenant won't leave. Tenants know they will get a few more (maybe even 6?) months rent free, with little to know consequences. Can easily fake some references and pay cheques on their next move. Really surprising to me you don't hear of more people taking matters into their own hands with our weak laws protecting/aiding criminals. Still no answers on Stoney Creek landlord who killed 2 tenants and himself.

Hamilton homebuyer faces imminent homelessness as tenants refuse to vacate property

A homebuyer in east Hamilton says she'll soon have no where to live because the tenants who live in the home are refusing to leave.
www.chch.com www.chch.com

Edit- on news broadcast said tenants haven't paid rent in 7 months :ROFLMAO: o_O
Click to expand...
Friend bought a house in Barrie and did an exhaustive background check on prospective tenants - credit, personal and work references, double checked the phone numbers were legit, etc etc. Tenant moved in and stopped paying rent in 4 months, because it was covid it took the better part of a year to get them before tribunal. Day of the tribunal the tenant paid up in full, case closed. 1 month later went back to not paying. Buddy had to move back into his own house and have the sheriff threaten eviction to get him out.
 
Evoex said:
Friend bought a house in Barrie and did an exhaustive background check on prospective tenants - credit, personal and work references, double checked the phone numbers were legit, etc etc. Tenant moved in and stopped paying rent in 4 months, because it was covid it took the better part of a year to get them before tribunal. Day of the tribunal the tenant paid up in full, case closed. 1 month later went back to not paying. Buddy had to move back into his own house and have the sheriff threaten eviction to get him out.
Click to expand...
And that's why we need a registry of bad landlords and bad tenants. Crap like that should give you a blinking red light on your file and by extension, only bad landlords would consider you. Pricks deserve each other.
 
GreyGhost said:
As expected, the hamilton rental building that is trying to self-organize and buy the building to run as a coop is circling the drain. The important numbers are 21 units, price of 4.5-4.8M and tenants (future owners) wanting rent unchanged. On that last point, a bachelor is $544 in this building, average hamilton one bed is $1870. The math doesn't work. This is all hearts and no brains. Average unit cost is in the ballpark of $225k. Servicing that debt plus property tax plus maintenance is much closer to $2000/mo than it is to $544.

Tenants are arguing for a lower purchase price as repairs are needed. Landlord has dropped price and is refusing to drop more. Landlord bought for 975 in 2008. The tenants are fixated on this few hundred k as their savior. They need millions cheaper to make the numbers work (or millions of our tax dollars).

www.thespec.com

Hamilton tenants’ plan to buy building from landlord for co-op stuck at impasse

‘This is pissing in the pool, and it’s not going to help,’ says owner after renters air grievances over purchase price at news conference
www.thespec.com www.thespec.com
Click to expand...
I wonder why nobody scooped that building up? 21 units... convert them to condos fat 250-500K and you make $5mil on the deal.

Surprised @mimico_polak bought a Scrambler instead of that apartment!
 
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