They don't seem like tenants that would be easy to get out. You'd be in purgatory.
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COVID and the housing market
- Thread starter mimico_polak
- Start date
I’m about 4M shy…unless you wanna spot me?
Looking at you @Mad Mike, @crankcall and @Scuba Steve …
Any minute now…
Given the tenants attempt to organize, the property is probably worth less. Almost guaranteed at least one will hold you up for years. At this point, the landlord needs to clear out the building and sell it vacant if they want maximum return in dollars (which may take years). Current owner may take in the ballpark of 4 from a third party as they are annoyed at tenant group.
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I know a guy in New York City paying <$1000 a month rent. If he and one other guy moved out the building could be torn down and the new rent would be ~$20,000 a month. The place is a roach motel but it's right downtown and he likes the atmosphere. He's been offered megabucks to vacate but he doesn't need the money and, I think, likes pulling wings off of flies. He also has a place in the Catskils.
What's right?
He did the landlord a favour decades ago by moving in.
The landlord wants to maximize his income from the property.
What's right?
He did the landlord a favour decades ago by moving in.
The landlord wants to maximize his income from the property.
Perpetual rent control is an epic failure. It is doomed to fail if prices/costs and rent diverge. In cases like MP where he tried to help out tenants, if the landlord changes to someone that wants them out, the tenants are still screwed. Sadly, while increasing renta drives people from their homes, that is reality. If I can only afford $1000/mo, I can't afford to live in downtown anywhere. I am relegated to the slums or burbs. Gradually changing rent results in gradual migration. As it is, we have people in high park looking for places to live in dryden to maintain affordable rent.
We've lost touch with the couple but ~15 years ago they mentioned having a rental condo and since the renter was so nice they'd never raised the rent for 15 years. I know the wife passed away and probably now the hubby.
The estate gets settled, the condo sold and the tenant has to leave. Her new rent will be at least double, possibly triple if the area became trendy.
If the tenant was smart they would have put away the difference between market and actual rent. Properly invested they could buy a place.
Letting people live beyond their means has long term consequences, even in assisted housing. That $700 a month apartment is taking $2000 out of someone else's pocket. Don't push your luck.
Mad Mike
Well-known member
If I bought something like that, Id I'd do a condo conversion. It's in a bougie area of Hamilton, 1 3br 1000sq' condo with a fireplace would sell for $800K or more. The small units probably $400K+.
I'd make a fair offer to the existing Tenants $100K for their key in an all-or-nothing proposition. They could take the cash, or use the $100K as a down payment on their newly created condo unit.
Going to have to be Steve or Mike , I’m in the middle of doing something sensible with my money , I’m getting a new boat ….
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48Connor
Well-known member
My cousin is a real estate agent. He was telling me their current selling practice is to list ~20% lower than what the seller wants, hope it gets some high blind offers, and if they don't get what they want after the first week, pull it off the market and relist at the actual price the seller wants. But its rare that they actually have to relist it.
In my area that doesn't happen, what they list is usually what they sell for. But in Durham Region where he is selling, houses seem to consistently sell for $150k more than ask.
In my area that doesn't happen, what they list is usually what they sell for. But in Durham Region where he is selling, houses seem to consistently sell for $150k more than ask.
Meanwhile in our area I’ve got 3 houses within spitting distance that can’t seem to sell, and they’re all priced properly IMO.
Priced out too many people probably
1.4-1.7M. So yes not the most affordable, but not the worst either. There's a house nearby that listed for 2.6M last year, and today it's at 2.4M...but obviously they don't actually care about selling it.
If they find a sucker...
better then the worst is still unobtainium to anyone without family money or equity.
<looks at rental market>, 'nuff said.
Was watching a group on the news bemoan the rental costs .
What they seem to be missing is landlords pay the same mortgage rates as everyone else , taxes and utilities cost the same . Rent controls discourage building rentals and the landlord/ tenant act while required, doesn’t make one wish to be a landlord . Until supply and demand balance , price will never hit an equilibrium. How is it economics baffles politicians and many renters alike .
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What they seem to be missing is landlords pay the same mortgage rates as everyone else , taxes and utilities cost the same . Rent controls discourage building rentals and the landlord/ tenant act while required, doesn’t make one wish to be a landlord . Until supply and demand balance , price will never hit an equilibrium. How is it economics baffles politicians and many renters alike .
Sent from my iPhone using GTAMotorcycle.com
They probably realize there’s too much red tape to get shovels in the ground during their election cycle. By the time they are up everyone’s forgot who approved it, “orange man bad”.
Low hanging fruit, etc etc.
Everyone should run a business before they're allowed to vote, whether it's renting a property or selling widgets.
There is a tendency for people to minimize problems when it happens to someone else but when they get stiffed they expect CSI, War Measures Act and a SWAT team.
It’s because your place when finished is going to make theirs look like turds.
I had the tree in our back yard tested this morning and asked the 28 year old expert about his view of the housing market.
Between him and his better half they make just under $200K. She is well versed in finances, him less so but neither is a spend thrift. He figures they will have to save for 10 years to have a decent down payment unless their incomes ramp up or their costs go down. A morbid thought but inheritances won't likely kick in for 20+ years.
If they want a house before kids they'll be on CPP while their kids graduate university.
He has a brother that figures it isn't worth the fight for housing and is doing the YOLO lifestyle.
Between him and his better half they make just under $200K. She is well versed in finances, him less so but neither is a spend thrift. He figures they will have to save for 10 years to have a decent down payment unless their incomes ramp up or their costs go down. A morbid thought but inheritances won't likely kick in for 20+ years.
If they want a house before kids they'll be on CPP while their kids graduate university.
He has a brother that figures it isn't worth the fight for housing and is doing the YOLO lifestyle.
That whole throw your hands in the air YOLO crap will be a disaster. Not only do you not have a stable place to live, you have no substantial passive income to pay for rent. I hope you enjoy thailand as there's a good chance you will be forced out of canada by economics. Hopefully you have enough money at the time to be able to buy a ticket.
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