COVID and the housing market | Page 42 | GTAMotorcycle.com

COVID and the housing market

GreyGhost said:
Surviving is possible. Getting ahead is hard. Normal people in London, New York or Hong Kong don't own detached houses. The majority of normal people in those locations probably don't even own flats. They are renters. I don't like it but that's reality in those markets.
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I wouldn't buy a house if I lived in S.K full time. Renting is just fine for me or buy a nice condo :D
 
george__ said:
I wouldn't buy a house if I lived in S.K full time. Renting is just fine for me or buy a nice condo :D
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Why not? I know plenty of people in Saskatoon and they love it.

In the end you can make a life anywhere you want, just some places are easier than others to get all the things you want.
 
mimico_polak said:
Why not? I know plenty of people in Saskatoon and they love it.

In the end you can make a life anywhere you want, just some places are easier than others to get all the things you want.
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is he referring to saks or south korea?
 
mimico_polak said:
Haha am idiot. I’m keeping it as a reminder of my foolishness.

My bad. But my statement stays....home is wherever you make it.

Jeez you guys are tough...,go riding!
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We know lumber is crazy, but how is the price of concrete? Started your backyard tunnel yet? Be careful with the high ground water, it would be embarrassing if your secret lair floated up.
 
george__ said:
South Korea :)

In Canada, I want a home so I can be a hermit. ROI living in cities here is meh

Any real estate agents or brokers that do work in KW message me.

I want to learn and figure out how to get into this bullish real estate market.
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Dont do this, but I hear mortgage fraud and borrowing to the hilt is the way to go (unless you have equity from a previous home, or rich parents)
 
george__ said:
South Korea :)

In Canada, I want a home so I can be a hermit. ROI living in cities here is meh

Any real estate agents or brokers that do work in KW message me.

I want to learn and figure out how to get into this bullish real estate market.
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Do you have morals? Get your real estate license, hang out at bingo and screw an old person out of their home. Since they bought it for $4000, helping out a struggling kid like you by selling you the house for 400K is good enough. That is more than enough for them to live out their days in comfort. I couldn't do it, but some lather rinse and repeat on that path.
 
bigpoppa said:
Dont do this, but I hear mortgage fraud and borrowing to the hilt is the way to go (unless you have equity from a previous home, or rich parents)
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There's another interesting cog in this wheel. The appraisers are signing off on these values. If there is ever a huge correction, what is their liability? If they said the market value of their work last year was 200M but after correction (or rather removal of artificial run up) it was worth 150M, can the bank come after them for some of that? If they just keep signing off on ever rising prices, what value did their rubber stamp add?
 
bigpoppa said:
Dont do this, but I hear mortgage fraud and borrowing to the hilt is the way to go (unless you have equity from a previous home, or rich parents)
Click to expand...
If I was morally bankrupt. Max out burrowing limits, pay someone to do some legal mumbo jumbo so I could keep the properties even with a consumer proposal or bankruptcy?

Hmm
 
GreyGhost said:
We know lumber is crazy, but how is the price of concrete? Started your backyard tunnel yet? Be careful with the high ground water, it would be embarrassing if your secret lair floated up.
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You joke lol. But I recently figured out that underground structures can actually float up if not properly protected!
 
GreyGhost said:
There's another interesting cog in this wheel. The appraisers are signing off on these values. If there is ever a huge correction, what is their liability? If they said the market value of their work last year was 200M but after correction (or rather removal of artificial run up) it was worth 150M, can the bank come after them for some of that? If they just keep signing off on ever rising prices, what value did their rubber stamp add?
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Lots of reports of banks not accepting mortgages for over priced properties.

In theory, if you buy a house and there is a massive correction the bank can refuse to refinance and tell you to pony up X in order to fall within their risk profile.

Unlikely, but possible.
 
GreyGhost said:
Surviving is possible. Getting ahead is hard. Normal people in London, New York or Hong Kong don't own detached houses. The majority of normal people in those locations probably don't even own flats. They are renters. I don't like it but that's reality in those markets.
Click to expand...

I didn't find getting ahead hard and I come from a family that was poor. Fiancee's background story is the same. General strategy for getting ahead is to not do what others are doing because getting ahead is competitive by nature.

Some examples:

Don't own a vehicle unless absolutely necessary. This saves $9,000~ or so a year.
Get into a profession that actually matters and can provide value to the world.
Marrying/partnering up with some as smart or smarter than you. This doubles the household income or more.
Don't go out to fancy parties and stuff where the bill will be over (pick a number, mine is $40) per person.
Have a budget for everything; so even if a fancy party is under the # above, if the budget says no, it means no.
Don't have kids. Because money.
Find hobbies that are somewhat productive (either a side project, or learning for the main hustle.) Traveling, for example, is a hobby I see a lot of ppl my age do. It's not a hobby, it's a damn liability lol

Using all the money saved above, invest it. The younger someone does this, the more exponential that snowballs. Once that money grows enough, down payment time.

Hardest part, imo, is finding a partner that shares the same mentality.
 
mimico_polak said:
Lots of reports of banks not accepting mortgages for over priced properties.

In theory, if you buy a house and there is a massive correction the bank can refuse to refinance and tell you to pony up X in order to fall within their risk profile.

Unlikely, but possible.
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It's interesting that every party with the opportunity to affect house prices is in a clear conflict of interest. With low interest rates, banks need big mortgages to drive gross revenue. If banks started to force people to sell, that starts an avalanche that hurts the rest of their portfolio. I wonder if they can extort you into a partial ownership (eg. you are underwater by 75K on a 750K mortgage, sign this document giving us 15% ownership (10 to balance risk, 5 for our effort) and an NDA). That way you get to keep the house and save face, the bank secures their money and gains a huge upside potential.
 
油井緋色 said:
I didn't find getting ahead hard and I come from a family that was poor. Fiancee's background story is the same. General strategy for getting ahead is to not do what others are doing because getting ahead is competitive by nature.

Some examples:

Don't own a vehicle unless absolutely necessary. This saves $9,000~ or so a year.
Get into a profession that actually matters and can provide value to the world.
Marrying/partnering up with some as smart or smarter than you. This doubles the household income or more.
Don't go out to fancy parties and stuff where the bill will be over (pick a number, mine is $40) per person.
Have a budget for everything; so even if a fancy party is under the # above, if the budget says no, it means no.
Don't have kids. Because money.
Find hobbies that are somewhat productive (either a side project, or learning for the main hustle.) Traveling, for example, is a hobby I see a lot of ppl my age do. It's not a hobby, it's a damn liability lol

Using all the money saved above, invest it. The younger someone does this, the more exponential that snowballs. Once that money grows enough, down payment time.

Hardest part, imo, is finding a partner that shares the same mentality.
Click to expand...
I like your path and it has a lot of good points. If you didn't get on the highish income path early, the rest can come apart. Most of your money goes to rent, you don't have much left to save even if you are frugal and not wasting it, it takes a long time to invest enough that it starts cooking.

As for hobbies being productive. The vast majority of hobbies are money losers but bring you enjoyment. Now with limited income, dedicating 10% of it to hobbies (or travel) adds decades to your path to freedom.
 
Captain Obvious here....:). There are many aspects to the current pricing but really two account for the majority of what is happening:
  • Interest rates (monthly costs)
  • Migration and immigration to the GTA even GTHA (supply and demand)
Everything else are things the talking heads in the media like to go on and on about to sound smart but the above two are driving the prices and it is very unlikely the bubble will burst unless rates go up significantly and/or people start leaving the GTA faster than people move here (likely both or one to the extreme). Some of those other things may have influence on the above two (short term rental, income property, flippers, economy, unemployment, whatever) but it all comes down to these two.

Monthly cost wise, I ran the number before in this thread and indexed to inflation monthly mortgage costs (P+I) are currently approaching double long term historical averages (we are not paying 13% or higher interest) and much of that historical longer term (70s) average was almost all single income families... The hard part is getting the down-payment IMO because this is driven by the price and low interest rates do nothing for you.

*****
For appraised values, we have done it each time we moved our mortgage (well bank does it). IME when it is an appraisal for the bank on a remortgage they run 10 to 30% below strike price--market value. I think that is a CYA by the appraiser. Purchase appraisal was higher than value IMO. Really should not be different but I think they are base on experience.

*****
Beyond that I was talking to some 20 somethings at work the other day that all live at home. All were complaining about the usual costs to buy and to rent.... What was interesting with respect to rent, I said until I bought I had roommates, that's how we made it work money wise.... they were all aghast at the entire concept.
 
GreyGhost said:
It's interesting that every party with the opportunity to affect house prices is in a clear conflict of interest. With low interest rates, banks need big mortgages to drive gross revenue. If banks started to force people to sell, that starts an avalanche that hurts the rest of their portfolio. I wonder if they can extort you into a partial ownership (eg. you are underwater by 75K on a 750K mortgage, sign this document giving us 15% ownership (10 to balance risk, 5 for our effort) and an NDA). That way you get to keep the house and save face, the bank secures their money and gains a huge upside potential.
Click to expand...

It's all a balancing act. So somebody always gets screwed =(
 
GreyGhost said:
I like your path and it has a lot of good points. If you didn't get on the highish income path early, the rest can come apart. Most of your money goes to rent, you don't have much left to save even if you are frugal and not wasting it, it takes a long time to invest enough that it starts cooking.

As for hobbies being productive. The vast majority of hobbies are money losers but bring you enjoyment. Now with limited income, dedicating 10% of it to hobbies (or travel) adds decades to your path to freedom.
Click to expand...
The high income can be offset by staying with parents as long as possible.

But, tbh, there's a 50/50 chance staying with parents will help because some ppl I know spend their money on stupid **** because no bills lol
 
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