Bungol.ca was great for checking selling prices and historical pricing. They got shut down by TREB as they want to control the info instead of letting people have it.
Gotta keep those realtors employed.
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COVID and the housing market
- Thread starter mimico_polak
- Start date
Gotta keep those realtors employed.
moarmoto
Well-known member
220k left on our current mortgage, bought the house for 410k in 2015. We can probably sell it minimum 750k now.
No other debt. We could only get 950k pre-approval through a broker.
Houses around 1.2mil don't even feel like much upgrade so were looking at 1.5mil (listed).
When those are being sold 200k to 300k over listed, we have no chance if I wanna be financially responsible.
We make good money, 220k household income. I'm gonna say it again. It's disgusting from buyer's POV.
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No other debt. We could only get 950k pre-approval through a broker.
Houses around 1.2mil don't even feel like much upgrade so were looking at 1.5mil (listed).
When those are being sold 200k to 300k over listed, we have no chance if I wanna be financially responsible.
We make good money, 220k household income. I'm gonna say it again. It's disgusting from buyer's POV.
Sent from my M2007J20CG using Tapatalk
bigpoppa
Well-known member
seriously?
blackcamaro
Well-known member
I agree. Bungol was my go to resource before they got shut down. I don’t have a super high opinion of the majority of realtors, in fairness though Bungol made a mistake and broke the terms of their agreement with TREB. I do believe the information should be accessible to the public 100% and TREB should play ball and give access back to Bungol.
That's another thing that got messed up with crazy house appreciation. My original plan was leapfrog to keep mortgage in the 200 to 400 range. With the giant transactional cost, the leapfrogging didnt make sense anymore. Buy one to build equity, then blow your brains out on two and downsize when you retire for three. My wife wanted to spend hundreds less on the last jump but I talked it through with her why it didnt make sense. I think we made the right decision but I miss the days of having no worries about interest rates and being able to survive on one income.
Yup. Their last updates are August 2020
Priller
Well-known member
If you're wondering why prices are insane, this is one of the biggest reasons. People are afraid to sell for fear of slipping down the ladder, so inventory is super low. Add pandemic uncertainty, and even fewer are willing to sell or move. Add interest rates below 1.5% and banks willing to approve mortgages wat beyond what people should spend, and you get where we are. You'd think realtors would be getting rich, but the work now is in finding listings, not making sales.
The exception to this is downtown condos, which aren't very appealing during a pandemic with stay-at-home orders. If you think those market fundamentals will justify a bounce back post-pandemic, there may be deals to be had, but I don't follow that end of the market at all. The end I do follow, Hamilton, has seen year-on-year increases of 20-30%. A co-worker buys properties to reno and rent, and he can't fund anything that makes sense right now. Even pro flippers are overpaying like crazy because deals have disappeared.
People blame foreign money, but I don't think that's as big a factor in the GTHA as it is in Vancouver. There's still a very strong net positive population growth here, which is less true in BC...
D
Deleted member 50930
Guest
^^
Lumber prices have skyrocketed too
Lumber prices have skyrocketed too
All of the starter homes also get upgraded out of existence as prices climb. People start adding granite, additions, extra storeys etc. The land is too expensive for a cheap house to make sense anymore. Cottages have been on that path for a while too. Even if you are happy with an old-school cottage, when you are paying 250+ for a lot, it only makes sense to build a fancy four-season house as that is what the next person will be expecting.
Agreed. I don't think it's foreign money that's driving it. I think it's flippers that are doing the majority of the 'damage' because frankly the gov't allows them.
I'm a BIG proponent of taxing Primary Residence for people. However, I would do it sliding scale. Less than <2 years...full tax. 2-4 years, 50% tax, 5+ years, no tax.
I knew plenty of guys that would buy a house, reno, let their mother/mother in law/cousin/ nephew / niece / whoever live there rent free for a year or so, and then sell it. Real owner gets the profit, the 'name' on the property gets to live for free for a year or more. Everybody wins.
But it'll continue on and on until the CRA actually cracks down. There's VERY little reason to buy and sell a house year by year. And people are getting rich and screwing over everyone else because they're simply allowed to do it.
There is ZERO logic behind paying 1.2M for a 750k tear down property, except to re-build it and sell for closer to 2M.
Maybe I'm an idiot for not getting on that bandwagon, but I can't get myself to **** people over to build my personal wealth. Stupid me I guess.
$7/each for a 2x4...so I bought 2x3x8 instead for my shelving.
Fack. Soon it will be cost effective to head into the woods and make my own lumber. I suspect you aren't allowed to build anything an inspector has to look at with it though.
LoL. Ya...price went up at the start of pandemic, leveled off, and BOOM again! IIRC last year 2x4s were around $3-4 or so....basically double now.
I just paid $130 all in for 10 2x3s and 2 x 4x8x3/8" sheets of plywood.
Sure, they all hire a management company to run the day to day. Find short list of new tenants if needed and authorized for all repairs under $5k. They take a small piece of the pie but plenty of money coming in still.
I will have to look into it then. Thanks! Never used a PM firm as we always did our own work. But it makes sense.
That depends on finding something cheap enough. House prices and rental prices have diverged. A house was for sale near my old house that had two tenants 1800+1200. The house was over 800. The owner needs to throw in either a ton of equity or >1000 a month just to break even on cashflow.
From what I heard $175k mortgage per property and over $2k month in rents collected.
That’s good cash flow.
Priller
Well-known member
This was a big difference coming from BC a couple years ago. There, prices are high, but less than half the properties for sale have been recently reno'ed, and even fewer get 'fluffed'. Prices there are just bananas high, period.
Looking where we did here in the lower city in Hamilton (means mostly old houses built between 1890's and 1930's), 95% of the houses had been updated in significant ways, and equally 90ish% had been professionally fluffed and photographed. Another difference was pricing, which relies much more on artificially low asking followed by offers accepted etc. to get an auction going.
Don't get me started on the renos themselves. It's like they come out of a factory: all open plan, grey walls with white highlights, eight billion LED pot lights, industrial (cheap) light fixtures, and subway tile absolutely everywhere. We purposely avoided these houses, as I know that renos done to sell are also renos done on a budget, and that grey paint covers a multitude of sins...
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