If you're just playing the threshold game, you buy the house for 999 and the furniture or a piece of artwork for 50K (probably using the secured LOC).
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COVID and the housing market
- Thread starter mimico_polak
- Start date
protecting the banks is important. why? because when they start loosing money and owning houses, which they dont want, they will create a new set of internal regulations as to what is acceptable risk.
They can decide xxx doesnt look good on paper and that will be based on historical data and they can set the bar wherever they wish.
They sell money, for the best rate of return they can garner. If homeowners keep pushing out with car leases, LOC, CC debt, the smart fellows at the bank will pull back from the market.
They can decide xxx doesnt look good on paper and that will be based on historical data and they can set the bar wherever they wish.
They sell money, for the best rate of return they can garner. If homeowners keep pushing out with car leases, LOC, CC debt, the smart fellows at the bank will pull back from the market.
Sold for 1.075 in Vaughan. Barf.
115 Novella Rd., Vaughan
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115 Novella Rd., Vaughan
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Personally....I think this market is going to correct hard. But everyone I talk to says I’m out of my mind and it’s going to keep cranking upward.
Im not even sure which is true anymore.
Im not even sure which is true anymore.
I'm still leaning towards little correction but wouldn't be surprised if we are just pre-booking gains and prices stagnate for a decade.
North of a million and you have to listen to the rug rats screaming on the other side of the wall?Sold for 1.075 in Vaughan. Barf.
115 Novella Rd., Vaughan
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Only on one side at least and it's a firebreak unit so you are less likely to be burned down by your neighbours. There are worse townhouse designs (maybe not uglier though).
wonderings
Well-known member
Those prices are crazy, but I guess it is location. Out here a beautiful 100 year old home, fully renovated/updated with a giant detached garage, probably better classified as a small barn, with other sheds on the property, 5 acres of land, 5 mins outside of New Hamburg, 30 mins to Kitchener, sold for $1.2million.Sold for 1.075 in Vaughan. Barf.
115 Novella Rd., Vaughan
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mbroyda
Well-known member
damn those were going for $210k from the builder, my parents had a TH on that streetSold for 1.075 in Vaughan. Barf.
115 Novella Rd., Vaughan
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I don't like that location. Entitled a-holes. The closest stop sign to that house has ~30% of the vehicles drive through at 30 km/h+. They give you stink eye and honk if you cut them off (after you have stopped and waited for your turn to go).
Caught up with the old man on the weekend. Asked if he was still planning to sell this year.
He said he doesn’t really want to move because then he has to hunt for a rental and he likes the area. He mentioned that there’s a business offering 50% of your home value in cash for equal equity and when the owner kicks the bucket they pay out the balance.
I had so many questions and so did he. He’s going to hire a property lawyer and agent to review it all with him.
Anyone heard of this?
He said he doesn’t really want to move because then he has to hunt for a rental and he likes the area. He mentioned that there’s a business offering 50% of your home value in cash for equal equity and when the owner kicks the bucket they pay out the balance.
I had so many questions and so did he. He’s going to hire a property lawyer and agent to review it all with him.
Anyone heard of this?
So on a 1M house, you get a cheque for 500 now and 500 in five years when you kick the bucket but get to live rent free? Who pays property tax/maintenance? It seems like a terrible idea. That it equivalent to selling the house for ~856 now. Or do you get half of the current market value now and half of the future market value in five years? Who decides those market values? What if the market is in a low point in five years and holding on for another year should produce a better return? Who decides? What if he moves into LTC, does the house get rented out to continue appreciating or does the move trigger an immediate sale? Just so many ways this could go wrong. Interesting to talk to a lawyer about it but I wouldn't do it. Why is your dad selling? What if you do that deal with him? It eliminates a lot of the potential pitfalls. He probably doesn't need the 500 up front, you could basically do a reverse mortgage to give him monthly cash flow while you build equity. If you did that instead of RRSP contribution, your cash flow may not substantially change.
Exactly, lots of questions and fine print to read. I’m not interested in the house, too big and too expensive.
He was originally planning to sell and end his years renting so my sibling and I skip the capital gains tax. He wants to also give us some money towards our own future properties and finally he’s been interested in buying some land up near Thunder Bay for some time now.
bigpoppa
Well-known member
What if you buy the land in Tbay and he rents out the house? There's no advantage to having a rental as your principal residence is there?
Might be a possibility. I know he’ll want to explore this 50% buy out first though.
It's worth looking but there are just so many details that could turn it into a complete disaster. This won't be the investors first rodeo so they are coming from a position of much more money and power and you are trying to catch up.
EDIT:
Long ago I got screwed by a landlord that knew how to play the game. In round numbers, rent was $500 a month (6000 a year) with 2% yearly increases allowed. The next year the landlord said $555 a month for 11 months, one month free (6105 a year). The year after he said 565 a month (6780 a year). wtf. Rent has gone up by more than 6% per year when two is the legal limit (without applying to LTB for specific reasons none of which applied). The laws around rental increases are (or at least were) written in monthly rent. His game to juice the yearly rent was technically legal. He was a prick dentist with >50 houses and a huge ahole.
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How the hell did he do that @GreyGhost . Unless it was a property not under rent control.
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