COVID and the housing market | Page 71 | GTAMotorcycle.com

COVID and the housing market

mimico_polak said:
How the hell did he do that @GreyGhost . Unless it was a property not under rent control.
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Read the laws, they talk about monthly rent. I agreed to 555 because I was paying attention to yearly rent and wasn't too concerned about how it was structured. I talked to a lawyer once I figured out what happened and there was nothing that could be done. It was a smart chess move by a slumlord. After it happened you realized that was his plan from the beginning. I wonder how often he repeats the same ploy to juice rents.
 
Not that far back that you could buy half of Scarborough for $1.2 million.
 
House across the street from my old house just sold for 50% more than mine 2.5 years ago. Very similar lot and house, that one backs onto a park but has less trees.
 
GreyGhost said:
As the canadian economy has become 20% based on housing, gov't can't let that happen. As a group home owners have become too big to fail. Rates may go up, but they won't let them go to double digits due to the fallout. Worst-case imo would be something like double current rates and government would implement something to keep it there.

Doesn't interest rate normally increase to suppress inflation? Oil is never coming back to prior levels, our manufacturing sucks, tech is ok but can literally change overnight (in either direction), housing generates lots of tax dollars. What would be the trigger to rocket interest rates?
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Can they separate residential mortgages from commercial loans?

Businesses need the low interest rates as well.
 
nobbie48 said:
Can they separate residential mortgages from commercial loans?

Businesses need the low interest rates as well.
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I don't know. I'd be inclined to think that wouldn't work all that well. If commercial loans are at a lower rate than residential mortgages, some people can game the system and pull a business loan, pay their mortgage with it and slowly unwind that position. Obviously that doesn't work for GM but it may for small businesses.
 
nobbie48 said:
Can they separate residential mortgages from commercial loans?

Businesses need the low interest rates as well.
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When we were trying to refinance our property the commercial loan/mortgage was a deal pain in the ass. 3-4% more, with an annual ‘maintenance’ fee.
even the application was % of the total loaned value....and you paid it whether you got the application approved or not.
 
mimico_polak said:
When we were trying to refinance our property the commercial loan/mortgage was a deal pain in the ass. 3-4% more, with an annual ‘maintenance’ fee.
even the application was % of the total loaned value....and you paid it whether you got the application approved or not.
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when you are playing with enough money they will walk over hot coals to buff your helmet. right up until they aren't . We had a 15million dollar operating LOC with RBC, they decided they no longer liked the business model. Pulled the line with 30days notice. HKSB was interested, but it was 29 sleepless nights.
 
Evoex said:
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?
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Sounds similar but not the same as a reverse mortgage. Maybe a reverse mortgage is what he needs.

IMO, of course the entity "loaning" the money will always make it so they come out on top but that does not always mean it is really bad for the person getting the money. Devil is in the details.

*****
Slightly switching gears, in the news the other day there was a women in Hamilton on disability that owed something like 90K on her LOK, obviously the hole keeps getting bigger. She sold the house to her daughter for what was owing to pay off the loans so she/they can stay in the house. Her disability payments then got cranked back because she sold the house for way below market value, basically they cranked them back like she had the difference in cash in the bank.

Of course she is crying foul and lots of people are up-in-arms but at the same time she wanted her cake and eat it too and did not do the homework resulting in an unforeseen outcome. Maybe she would have been better off with the reverse mortgage but then the daughter does not get the winfall???
 
backmarkerducati said:
Sounds similar but not the same as a reverse mortgage. Maybe a reverse mortgage is what he needs.

IMO, of course the entity "loaning" the money will always make it so they come out on top but that does not always mean it is really bad for the person getting the money. Devil is in the details.

*****
Slightly switching gears, in the news the other day there was a women in Hamilton on disability that owed something like 90K on her LOK, obviously the hole keeps getting bigger. She sold the house to her daughter for what was owing to pay off the loans so she/they can stay in the house. Her disability payments then got cranked back because she sold the house for way below market value, basically they cranked them back like she had the difference in cash in the bank.

Of course she is crying foul and lots of people are up-in-arms but at the same time she wanted her cake and eat it too and did not do the homework resulting in an unforeseen outcome. Maybe she would have been better off with the reverse mortgage but then the daughter does not get the winfall???
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Sadly people in precarious positions often don't get the advice they desperately need. They either don't know where to find it or try but can't get answers. That whole transaction stunk. Presumably there were some "professionals" involved as I can't see them getting it transferred without some lawyering. The lawyer(s?) did them a disservice by processing that transaction. Who knows, maybe the lawyer was fighting for them to make a better decision and got yelled at for it or maybe they found a $20 an hour lawyer on Barton.

Most reverse mortgages have clauses about maintaining your house to a certain standard, I suspect the house and lady would have trouble complying with that (or potentially she has asbestos which afaik, they don't want any part of).

The best bet for her might have been a life-lease. I hate them but for certain scenarios they might make sense. That gives her a place to live for the rest of her life with no worries about being pushed out. No maintenance to do, no unexpected bills. Just launch the arrow today and watch it fly.
 
GreyGhost said:
Sadly people in precarious positions often don't get the advice they desperately need. They either don't know where to find it or try but can't get answers. That whole transaction stunk. Presumably there were some "professionals" involved as I can't see them getting it transferred without some lawyering.
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Storyline tag should have read : Another Hamilton women on disability gets caught gaming the system.
For everyone they pin, there are 6 getting away with something, many are in precarious circumstance because of just that , circumstance and for many its a lifestyle, they can often tell you to the nickel what baby #4 will net them per month.
Hamilton , and the 3rd and 4th generation wellfare caseload.
 
There is a radio ad in KW now proudly stating how they will get you $200k over asking

haha to the idiot who falls for this

so hard to get ahead :cry:
 
crankcall said:
my favorite is list for an astronomical speculative price, it doesnt sell. They drop they price by a couple hundred G's to where it should have been , then when it sells for 'over asking' put up a billboard " SOLD for over asking!! " really , WTF
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The speculative price is like my neighbour....’if I find a sucker to pay me 1.6M I’ll sell, if not....who cares I still have a house that I bought for 600k 4 years ago.’

House didn’t sell.
 
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