COVID and the housing market | Page 51 | GTAMotorcycle.com

COVID and the housing market

GreyGhost said:
It's the sense of equitable division that is the issue not always the paperwork. The kid that lived in the house sees it as theirs, the one that moves out thinks that they are owed half as inheritance. Even if the will picks a clear path, normally one of the two kids will lose their crap and fight until the lawyers have all the money.
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We've just wrapped up M-I-L's will. What happens if a kid lives with mom for years and doesn't work? He can claim to be dependent and the will isn't worth the paper it's written on.
 
crankcall said:
Well if you just wrapped up the will and didnt ask the lawyer that, bad waste of lawyer money
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Top estate lawyer in TO basically said the conditions favoured the "Dependent" and couldn't be beat. She also said there was no guaranteed result. After several expensive steps it all would boil down to the mood of the judge. Like many law conflicts they end up as battles of attrition.
 
A house near the kids school is up for sale again. They bought an empty lot (~11,000 sqft) in 2015 for 98K. They built an ok house on it in 2018 (~1300 sqft, 1.5 car garage) and listed it last summer at 680K. They suspended the listing after a week. It appears that no changes were made and it is now up again at 870K. Maybe they were hoping for a bidding war that never materialized last summer? Maybe they think the market is up almost 30% in seven months? Interesting to see what it gets. House sigma is predicting 910K (although in my experience, these predictions haven't been very accurate).

One down the street that is on a lot 30% smaller with a house 50 years older went in two days for 720K so they might get it. Crazy.

These are both corner lots between a pretty busy road (arterial) and a reasonably busy road (collector).
 
GreyGhost said:
A house near the kids school is up for sale again. They bought an empty lot (~11,000 sqft) in 2015 for 98K. They built an ok house on it in 2018 (~1300 sqft, 1.5 car garage) and listed it last summer at 680K. They suspended the listing after a week. It appears that no changes were made and it is now up again at 870K. Maybe they were hoping for a bidding war that never materialized last summer? Maybe they think the market is up almost 30% in seven months? Interesting to see what it gets. House sigma is predicting 910K (although in my experience, these predictions haven't been very accurate).

One down the street that is on a lot 30% smaller with a house 50 years older went in two days for 720K so they might get it. Crazy.

These are both corner lots between a pretty busy road (arterial) and a reasonably busy road (collector).
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I'm not sure where you are but in the spring of 2019 my M-I-L's property was appraised at $447 K just north of Brantford. It sold a year and a half later for $580 K. + 30%. Modest solid house on a 3/4 acre lot.
 
nobbie48 said:
I'm not sure where you are but in the spring of 2019 my M-I-L's property was appraised at $447 K just north of Brantford. It sold a year and a half later for $580 K. + 30%. Modest solid house on a 3/4 acre lot.
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Near barrie. Last summer already had some of the crazy covid pricing baked in. Pre-covid was much more predictable craziness. I suspect they were trying (unsuccessfully) for a bidding war last summer and listed for close to what they actually want this time so the jump looks bigger than the reality. That being said, Barrie has had a bunch of subdivision houses sell for over 1M recently. Yikes.
 
GreyGhost said:
Near barrie. Last summer already had some of the crazy covid pricing baked in. Pre-covid was much more predictable craziness. I suspect they were trying (unsuccessfully) for a bidding war last summer and listed for close to what they actually want this time so the jump looks bigger than the reality. That being said, Barrie has had a bunch of subdivision houses sell for over 1M recently. Yikes.
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I wonder what my parents' 3 bedroom cottage is worth in Wasaga. Only 600sqft so you're basically selling the land.
 
How the heck are people able to sell and buy back into the market?
 
george__ said:
How the heck are people able to sell and buy back into the market?
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Easy....
Buy house for 500k with 50k down ... 450k mortgage and 50k equity
Sell for 700k in a year or two so tax free gain of 200k + 50k equity (plus whatever you paid off) = 250k in equity
Buy house for 800k with 250k down and you're at 550k mortgage....so almost the same as previously, but a bigger house...

Rinse and repeat.

I know couples that do this every 3-4 years and now they've got properties worth 1.5M with about 300k in mortgages.

We did it 2x and we have a 1M home with 450k mortgage...

Property ladder...it's a thing.

EDIT:
Option #2

Your first house is worth 700k now, so instead of selling and moving, you take the equity and buy another property with your own home as the down payment, rent it out, and if all goes well you now have 2 properties building equity as you pay one down, and the other a tenant pays down.

Which reminds me I need to figure out how much equity I can pull for a HELOC.
 
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