COVID and the housing market | Page 382 | GTAMotorcycle.com

COVID and the housing market

ifiddles said:
here's one for all the GTAM ballers...

48-50 West 69th Street | Compass

48-50 West 69th Street is a townhouse listed for sale at $85,000,000. This is a 5-bed, 9.5-bath, 19,600 sqft property.
www.compass.com

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Pfft. Some big misses there. Surprised to see an 85M flip house. No doors on office? Shower heads on bath tubs with no glass or curtains? 100 sitting areas to use up space. You'll use one amd the rest will never be used. No prep kitchen is a fail for that class of buyer.
 
GreyGhost said:
Pfft. Some big misses there. Surprised to see an 85M flip house. No doors on office? Shower heads on bath tubs with no glass or curtains? 100 sitting areas to use up space. You'll use one amd the rest will never be used. No prep kitchen is a fail for that class of buyer.
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See you’re looking at it wrong. You’re considering it as if though YOU (a logical human being) were buying it for personal use.

It’s not. It’s an investment to sit on, and let the peasants clean it and maintain it while you’re galavanting on a yacht somewhere near Monaco.
 
Ouch. Bought a house in Caledon for 2.5 in April 2022 with a 1.7M mortgage at prime + 8. In default by Jan 2023. Power of sale for 1.8. Bank got their money back, owner equity was wiped out.

www.blogto.com

Ontario home sold at massive $660k loss following multiple attempts to sell

As the GTA's housing market remained well-supplied throughout August, average home prices also edged slightly lower, meaning many properties— incl...
www.blogto.com www.blogto.com
 
crankcall said:
I suspect we will see many examples of that in the next 3 yrs . Real estate never goes down, …. Says the guy writing me a 1.7m mortgage at 8% ….


Sent from my iPhone using GTAMotorcycle.com
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All my over leveraged friends are all hyped because they think the rates will start cranking down, and now their HELOC fueled life can return to spend spend spend.

Families making 70-150k household income mortgaging over 1M in houses / investment properties / toys / vacations / etc are about to renew within 1-2 years...

They're praying to whatever God is out there that rates return as they're not going to be able to manage a 3% rate (considering they're locked in at 1.9 - 2.1% currently BEFORE they went on a spending spree of hundreds of thousands).
 
mimico_polak said:
All my over leveraged friends are all hyped because they think the rates will start cranking down, and now their HELOC fueled life can return to spend spend spend.

Families making 70-150k household income mortgaging over 1M in houses / investment properties / toys / vacations / etc are about to renew within 1-2 years...

They're praying to whatever God is out there that rates return as they're not going to be able to manage a 3% rate (considering they're locked in at 1.9 - 2.1% currently BEFORE they went on a spending spree of hundreds of thousands).
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It will take a miracle (or crash recession) to renew at 3% in 1-2 years. BOC overnight rate will likely be 2-3% and then banks add about 2.25% as their margin but you can get close to minus 0.75. Renewing at 3% would mean BOC is under 1.5% again (from current 4.25%).
 
GreyGhost said:
It will take a miracle (or crash recession) to renew at 3% in 1-2 years. BOC overnight rate will likely be 2-3% and then banks add about 2.25% as their margin but you can get close to minus 0.75. Renewing at 3% would mean BOC is under 1.5% again (from current 4.25%).
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Agreed. But hey...I know better than to tell them about it as I keep my nose out of their financial business.

Most are living WAY beyond their means...but if they're happy, and the bank keeps the party train going...I sometimes am envious I can't mentally do that to live off credit for EVERYTHING in my life.

Hard discussion with the wife and kids why their friends can go on so many trips in a year and we can barely afford one :(
 
GreyGhost said:
It will take a miracle (or crash recession) to renew at 3% in 1-2 years. BOC overnight rate will likely be 2-3% and then banks add about 2.25% as their margin but you can get close to minus 0.75. Renewing at 3% would mean BOC is under 1.5% again (from current 4.25%).
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Im hoping we do see BOC return to low rates…I think it will happen.

Raising rates does cool inflation, but it also cools investments and slows the economy. By low rates were not the cause of inflation - printing then dumping hundreds of billions of dollars into the economy caused that.

Low rates wont accelerate inflation, we went years at very low rates with low inflation. Lowering rates eases money into the economy, that encourages investment and allows supply to grow with demand.

I’m guessing 2.5 this time next year, <2 a few mos within 6 mos of welcoming a new federal gov.
 
mimico_polak said:
Agreed. But hey...I know better than to tell them about it as I keep my nose out of their financial business.

Most are living WAY beyond their means...but if they're happy, and the bank keeps the party train going...I sometimes am envious I can't mentally do that to live off credit for EVERYTHING in my life.

Hard discussion with the wife and kids why their friends can go on so many trips in a year and we can barely afford one :(
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Sleeping well = priceless
 
Just got back from BMO…

5 year fixed 4.59%
3 year fixed 4.89%

Variable is Prime - 0.5%

On a balance of less than 300k the difference from 2.xx% is an increase of 200/month or so.

I shudder to think of those with much higher balances.

I was leaning parents toward the 5 year variable but they want the 3 year fixed. Which is also preferred to the 5 year fixed.

Funny that the BMO broker rejected my request to see the penalty clauses as he was adamant that they don’t have an interest rate differential penalty and only 3 months interest on fixed rates…wasn’t like that before.

IRD on any fixed if the going rate was lower than the contracted rate.

3 month interest penalty if the going rate was higher than contract or one was on a variable.
 
Mad Mike said:
Im hoping we do see BOC return to low rates…I think it will happen.

Raising rates does cool inflation, but it also cools investments and slows the economy. By low rates were not the cause of inflation - printing then dumping hundreds of billions of dollars into the economy caused that.

Low rates wont accelerate inflation, we went years at very low rates with low inflation. Lowering rates eases money into the economy, that encourages investment and allows supply to grow with demand.

I’m guessing 2.5 this time next year, <2 a few mos within 6 mos of welcoming a new federal gov.
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I imagine that will largely depend on the state of the US economy.
 
Evoex said:
I imagine that will largely depend on the state of the US economy.
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Maybe, but I think this will be more influenced by Canadas economy.

The numbers Liberal govt presents for economic growth are not always the best indication of the country’s economic health.

Liberals manipulate GDP numbers… alot. It’s a complex equation, but raising taxes (carbon tax) then spending those funds (rebates) creates growth in GDP. So does expanding govt payroll or spending on expensive consultants.

Those are tricks to fool people and justify govt overspending.

At the end of the day, taxpayers understand pay checks and what’s left over from week to week. If that’s squeezed, Joe doesn’t care about GDP.
 
nobbie48 said:
I rarely see car prices in the ads. They give lease and finance numbers with $XXXX down.

It's all about how much per month can I afford.
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Seems that is how many people live now. Month to Month or payment to payment.
When the ads show the weekly payment breakdown we know the financial times have certainly changed.
 
Jampy00 said:
Seems that is how many people live now. Month to Month or payment to payment.
When the ads show the weekly payment breakdown we know the financial times have certainly changed.
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I grew up with a lot of auto plant families around. Union took care of pensions and continual pay increases. It was very common that if the bank account was up by $100 a month, they would go to the local powersports dealer and ask what they could get for $100/mo. The fallout when the landscape changed wasn't pretty.
 
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