COVID and the housing market

ifiddles said:
I didn't know that...so why not just put that money aside from the sale, invest it for a year and then you have it available...

Good to know information as we'll probably have to deal with capital gains in the next couple of years when hubby sells the place he has jointly with his mom...
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A bunch of stuff changed in late 2016 with regards to cap gains. Cap gains are only exempt when the owner lives in the house. When my M-I-L died in 2019 she effectively stopped living in the house and the house didn't sell for over a year due to will issues. The house value from original appraisal to sale went up ~$100K and that was subject to CG.
The other issue is probate amount. Check with a lawyer but I think that the cottage can be gifted to reduce probate amounts but the cap gain still hits the estate when the owner passes. RIFFs, pensions and other income or investments pretty soon pushes the tax rate into the 50% area.

If you have a big chunk in sheltered investments it's not a bad thing to chisel them down at lower rates to avoid everything dumping on the tax mans's table at once

I was told that the CG can be deferred three years, again get legal advice.
 
I was watching the bad news channel regarding office space. The sales price of high rise buildings doesn't look good. The Covid WFH bug is still biting and higher interest rates don't help with those structures either.

Other than mortgage free or high equity houses the banks have some serious issues ahead.

I wasn't familiar with downtown Hamilton and the vacant mall near city hall. The Hamilton Eaton's Center.

 
That Hamilton mall has been almost abandoned for a decade , it’s not wfh or interest rates that killed that place , it’s no available parking unless paid and walking the gauntlet of meth heads to get in. It’s a twilight zone in there .


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Not at all covid related but interesting to see the mechanics of an end of life condo building. 83 unit building Built in Edmonton in 1999. Somehow has 101 owners registered. Significant structural deficiencies found in 2023 and it was evacuated. 375k in special assessments while empty (shared not per unit). They are wrapping up the condo corp and selling site for 2 to 3 million minus 500k in demo costs as well as legal fees. Thats about $18,000 for each condo unit from the dissolution. Big ouch.


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Last Friday was the closing date for my Port Elgin condo. Went surprisingly smooth! I was worried about my bank holding the money for weeks like they always do with checks, but by 1pm I had all the money in my account. My bank account is looking mighty healthy - (un?)fortunately will only last 3 weeks until my new house closes
 
48Connor said:
Last Friday was the closing date for my Port Elgin condo. Went surprisingly smooth! I was worried about my bank holding the money for weeks like they always do with checks, but by 1pm I had all the money in my account. My bank account is looking mighty healthy - (un?)fortunately will only last 3 weeks until my new house closes
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Congrats.

My account show all the money theoretically deposited but if I try to withdraw more than 10k of the deposited money before it clears, they won't let me. There may be a different process for money coming from lawyers as they are a trusted source and not me randomly taking pictures of cheques.
 
GreyGhost said:
Congrats.

My account show all the money theoretically deposited but if I try to withdraw more than 10k of the deposited money before it clears, they won't let me. There may be a different process for money coming from lawyers as they are a trusted source and not me randomly taking pictures of cheques.
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Ever bank sets limits on the amount of funds they will release from cheque deposits to personal accounts. It’s different for each account holder, based on your relationship with your bank.

$2000 is standard for good clients. $100 if your credit score is sub 600 or you’ve had more than one bounced cheque.

$10k is normal for clients with 2+ years good history and credit products with a bank. Bank managers have discretion to release as much as they want. The odd customer has no limits, but they are few and far between.

Lawyers wire transfer the proceeds of a sale so you get them on closing, wired and e-transfer deposits have no hold period.
 
Cottage is effectively ready for rental this season. Anyone have thoughts of AirBNB or VBRO?

Ideally looking for weekly rentals to families and hope to prevent stupid parties or the ire of neighbours.
 
Your blood will boil when you read this. Tenants playing the victim card when they paid two months rent and then never again ($150k behind now). LTB evicts them and they complain about poor health and the system abusing them. The tenants also claim that they are owed more than 150k for the unit not being as advertised. They belong in jail.

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Well this is gonna hurt more and more people as mortgages continue to renew at today's rates...Although in 2024...majority of mortgages were from 2019/2020 so it won't be as much of a shock as for those that took out mortgages in 2021/2022...

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mimico_polak said:
Well this is gonna hurt more and more people as mortgages continue to renew at today's rates...Although in 2024...majority of mortgages were from 2019/2020 so it won't be as much of a shock as for those that took out mortgages in 2021/2022...

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I'm the blue one, better than some but still looks like it sucks ass..
 
Jampy00 said:
I'm the blue one, better than some but still looks like it sucks ass..
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I'm red...but my renewal is in 2027 as I was the genius that got greedy and went variable at literally the worst time (3 months before the rates started cranking), and went from $800 -> 1265/biweekly in the span of a year...
 
mimico_polak said:
Well this is gonna hurt more and more people as mortgages continue to renew at today's rates...Although in 2024...majority of mortgages were from 2019/2020 so it won't be as much of a shock as for those that took out mortgages in 2021/2022...

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I was yellow. I renewed in Feb. My payments went up a lot more than 25%. Hurray. Now variable w variable payments so I will be happy when the rates start to fall.
 
Housing in the GTA and similar hot spots has a challenging future for those with incomes of less than many hundreds of thousands of dollars. Even many of those will be making mortgage payments from their CPPs and RRIFs.

In the golden days one ran up debt in their 20's as they acquired assets including education. Then they paid off the debts in their 30's as they climbed the ladders. Their 40's and 50's were for building family resources towards retirement.

That may still be possible far from the GTA's of the world.

The GTA situation says the working stiff will never own a home and without government intervention never have stable rents. Government intervention is too often a screw up as incompetent friends of the ruling parties get the management jobs.

Government subsidies are subsidies paid by taxpayers so basically taxpayers barely able to afford their own homes are forced to subsidize those a rung down on the ladder. If the ladder goes sideways the guy further up hits harder when the ground meets him in the face.

How did this come about?

The root of the problem goes back further than JT. Someone posted that if you wanted a house you should have had richer parents. More correctly, you should have had (Collectively), less stupid ones.
 
Lots of dandelions in the hood and some For Sale signs. Prices are healthy for the seller but there aren't mobs of potential buyers waving fists of cash. The agents may actually have to do some work.

A nearby bungalow listed at $999,900 and sold for $1,388,000. It was tired inside and backed onto a busy street. Renovations have already started.
 
Mad Mike said:
Ever bank sets limits on the amount of funds they will release from cheque deposits to personal accounts. It’s different for each account holder, based on your relationship with your bank.

$2000 is standard for good clients. $100 if your credit score is sub 600 or you’ve had more than one bounced cheque.

$10k is normal for clients with 2+ years good history and credit products with a bank. Bank managers have discretion to release as much as they want. The odd customer has no limits, but they are few and far between.

Lawyers wire transfer the proceeds of a sale so you get them on closing, wired and e-transfer deposits have no hold period.
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So if BMO tells me that I need to call ahead of time whenever I need to make a cash withdrawal of more than 4k at a time - that is all BS?

Next time Ima show them this post and demand they give me cash lol
 
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