Unfortunately yes. And the typical reason is nothing more complex than money.
|
|
|
COVID and the housing market
- Thread starter mimico_polak
- Start date
Anybody looking for some cheap land...
www.baytoday.ca
Cochrane planning to sell residential lots as low as $10
'We have a whole generation, our youth, who believe they will never be able to own a home, and most would see that as being borderline tragic'
www.baytoday.ca
What are realistic expectations?
I've mentioned living in a $15,000 house when a blue collar worker made $5,000 a year. Three years gross wages paid for a decent Toronto house. A fixer upper could be had for $10,000. Interest rates were fixed for 25 years and life was stable.
Now the $15,000 house is $1.6 million, 20 years gross income for a blue collar worker.
How do we bring back the three year house? I'll even settle for five years. Anyone want to give ten years a go?
There are dozens of factors and it isn't 1965 anymore.
Ferdinand Porsche brought out the Volks Wagon, peoples car. It provided basic, slightly dangerous transportation for millions over 65 years. Can anyone build a Volkshaus? Could it become as popular as Buck-a-Beer?
They could build the house but where do you affordably park it?
I've mentioned living in a $15,000 house when a blue collar worker made $5,000 a year. Three years gross wages paid for a decent Toronto house. A fixer upper could be had for $10,000. Interest rates were fixed for 25 years and life was stable.
Now the $15,000 house is $1.6 million, 20 years gross income for a blue collar worker.
How do we bring back the three year house? I'll even settle for five years. Anyone want to give ten years a go?
There are dozens of factors and it isn't 1965 anymore.
Ferdinand Porsche brought out the Volks Wagon, peoples car. It provided basic, slightly dangerous transportation for millions over 65 years. Can anyone build a Volkshaus? Could it become as popular as Buck-a-Beer?
They could build the house but where do you affordably park it?
Mad Mike
Well-known member
Lots have been close to free in that area for a while. The problem in those areas is the cost of new construction eclipses the value of the finished home including land.
5 years ago you could buy a 1200sq' Shampoo (Champoux Prefab) for $150K and have it installed on a foundation for another $25K. Today that's closer to $300 for the house and $50K for the install. You can't get that financed as the finished home would be worth somewhere around $250.
https://maisonschampoux.com/en/
Put a cheap house on it and AirB&B it in the winter for snowmobilers.
Mad Mike
Well-known member
Hard finding anything cheap for snowmobilers up there anymore. Ice huts are going for $150/night, that's about all you'll find close to trails.
I'm lucky that L23 and L28 are within 200m of my toy shed in Porcupine, no trailer required.
Honestly if I couldn't ride from my yard I wouldn't have sleds anymore but knowing the amount that drive hours to sled for the weekend in Cochrane it's not a bad investment if you could find someone local who's trustworthy to look after the place.
Last few winters have been pretty crappy for a sled ‘season’ . Trailering to Cochrane would be a non starter for me .
I used to be in Cochrane a fair amount , I had a business relationship with the Rockshield plywood mill , which was pretty close to the largest employer I think . It’s not a place for me to.
Sent from my iPhone using GTAMotorcycle.com
I used to be in Cochrane a fair amount , I had a business relationship with the Rockshield plywood mill , which was pretty close to the largest employer I think . It’s not a place for me to.
Sent from my iPhone using GTAMotorcycle.com
A number of their designs wouldn't hurt my feelings. The $300K for the house and $50K to install seem reasonable. I have no idea of excavation and foundation costs plus power, water and sewage hookups. Would $500K be a reasonable final cost on the $10 lot. Now to find a $10 lot in the GTA.
When people mention small towns, especially one industry ones, the theme song from "Cheers" comes to mind. "Where everyone knows your name"....where you live, work, what you drive, what sports you watch, what you bought yesterday, who you associate with, what beer you drink.......
Mad Mike
Well-known member
I thought about buying one of those old roadside motels, kinda the Schitts Creek idea but in the North. Simple rooms, lots of parking, and add a big steel drive shed to secure toys at night.
Cater exclusively to small groups. Snomobilers from Christmas till April, ATVs and motorcycle groups for may till October.
Keep it self serve.
Salmon River Motel next to Shannonville
Friend of mine had the ‘Hush Lodge’ near Barry’s Bay and that’s what he did with it. Every season they were booked whether ATV, snowmobile, summer vacations or what have you.
Sold it and bought the Anchor Bar and also the local dispensary and pizza shop.
Guy is younger than me and set for life.
Mad Mike
Well-known member
I almost took a shot at one on the Madawaska river in Whitney before the pandemic. It was perfect, but the owner had a change of heart when it came time to strike a deal.
Probably smart for him, he sold it 2 yeas later for double his original asking price.
It works the other way too. My cousin was very specific in what she wanted in a condo and finally found it. The ace up her sleeve was a neighbour had agreed to buy her house when the time came and at a fixed price, no real estate fees.
Once she signed for the condo the neighbour reneged. She is bridge financing at a high rate, the market is down and she will end up paying fees. Nothing in writing.
Friends in Holland “bought” a hunt/fish camp with cottages near Iron Bridge Ont. Sold most everything, quit jobs , furniture in a container and flew in , buy minivan at Dixie Chrysler and drive to Iron Bridge . Guy waffles on the sale and they were living in a motel wondering WTF. Give deposit back . Guy that owns motel puts them in touch with another guy and they buy a lodge near Espanola.
They had things in writing , but not tight enough . It all worked out but what a stressful 6months wondering what to do.
Sent from my iPhone using GTAMotorcycle.com
They had things in writing , but not tight enough . It all worked out but what a stressful 6months wondering what to do.
Sent from my iPhone using GTAMotorcycle.com
Probably has zero chance of going anywhere at this time but it's an interesting concept. Some Toronto residents essentially want to scrape off some of the equity that homeowners gain. For now, their proposal is for Parkdale and they want a tax of up to 24% on gains when you sell. Sliding scale that decreases with length of ownership down to 7%. Now, I think their implementation plan is a complete non-starter as how do you determine gains? If you renovate, that should be added to your cost. What if I put in 1000 hours of labour? Can I add $100K to my costs? Percentages also seem really high. The tax would be used to fund deeply affordable housing in the community. FWIW, Chow says no-go as if they want more money, they will just up LTT and get it that way.
The Feds are bringing back the war time housing project . 1000-1400 sq ft boxes , easy build and promising fast approvals .
Now we just need to find that builder that will give up a 500k lot to build a 399 k home .
The lineups should be huge …..
Sent from my iPhone using GTAMotorcycle.com
Now we just need to find that builder that will give up a 500k lot to build a 399 k home .
The lineups should be huge …..
Sent from my iPhone using GTAMotorcycle.com
The only way that works is if government gives up million dollar lots to sell for 399. Even with free land, 399 in construction costs doesn't go far anymore. As government controls the books and optics, they just call it underutilized land and grossly undervalue it so the project looks less like a dumpster fire.
Edit:
Sadly affordable and ownership have permanently diverged. Affordable rent (actually affordable not market minus 10% crap) even with semi-unlimited government spending is a stretch goal.
Last edited:
|
|
|
|
|