COVID and the housing market | Page 73 | GTAMotorcycle.com

COVID and the housing market

My brother is in a similar boat to you. Now waiting for prices to crash so they can buy in. They had a chance two years ago but wanted a granite, 3+ bed, move in ready house for 400. They couldn't find it and now they have a larger approval and downpayment but the market has run away from them. Downpayment money is not invested. Outlook not good for home-ownership.

Not sure anymore on a path. Rent prices just keep going up and up

Resort to shacking up with an elderly couple who haven't moved in 20 years?? :ROFLMAO:
 
Not sure anymore on a path. Rent prices just keep going up and up

Resort to shacking up with an elderly couple who haven't moved in 20 years?? :ROFLMAO:
Swinger life? Join multiple families and buy a house together. I’ve read a few articles about it, but you’ve really got to be on the same wavelength with the other family/families.
 
Not sure anymore on a path. Rent prices just keep going up and up

Resort to shacking up with an elderly couple who haven't moved in 20 years?? :ROFLMAO:
Average house price in Petawawa has climbed from 300 to 400 in a year. Military salaries are obviously barely changed. You can't even move away from the GTA to find affordable housing. Back to Trials approach of buying land in an unincorporated municipality and building what you want. On the upside, with no building permits, you can cut some of your trees to use as wood to build your house. Use softwood for the framing/siding and hardwood for the trim.
 
Swinger life? Join multiple families and buy a house together. I’ve read a few articles about it, but you’ve really got to be on the same wavelength with the other family/families.
Well, that sketchy triplex I posted downtown could work. Definitely not living large but 400K gets you a place to live where the rent never goes up and you don't have roommates. Setup a corporation with a five or ten year horizon to dissolve (unless all parties agree to extend). That gives you some time to hammer your portion of the mortgage.
 
Swinger life? Join multiple families and buy a house together. I’ve read a few articles about it, but you’ve really got to be on the same wavelength with the other family/families.

Well, that sketchy triplex I posted downtown could work. Definitely not living large but 400K gets you a place to live where the rent never goes up and you don't have roommates. Setup a corporation with a five or ten year horizon to dissolve (unless all parties agree to extend). That gives you some time to hammer your portion of the mortgage.

I live this idea

But my best friends are too comfy living at home and there is the religious issuee of cohabitation :]
 
The other mess in a soft-landing scenario is people that recently bought a home have invested a leveraged ~1M for 20 years at 0% return. Ugh. They bought stability but as an investment that is horrendous. I don't see house prices going up less than inflation (over a five year period, in any single year, lots can happen).

I thought Toronto would become New York/London/Hong Kong with only the rich owning flats and only the elite of the elite owning single family homes. I didn't expect much of Ontario would get there this quickly. Seven more subdivision houses over 1M in Barrie last week. wtf.
 
had showings yesterday and the day before and came home to door unlocked, lights left on, chocolate wrapper and cookie crumbs on the floor, shower door broken and worst of all, someone went through his drawers in his bedroom as they were all left open..

That's all on the "professional" real estate agent and your friend should file a formal complaint. They should know which of their clients are dirtbags and monitor properly.

Had a Moen shower head stolen in between showings - I got the call at 10:30pm that night...heart was pounding as I got ready to walk into the property as I wasnt sure there was someone still in there at the time.
Both agents before and after the event denied any involvement.

Ended up getting refunded for a replacement by my agent after I gave her the police record number for the incident.
 
Had a Moen shower head stolen in between showings - I got the call at 10:30pm that night...heart was pounding as I got ready to walk into the property as I wasnt sure there was someone still in there at the time.
Both agents before and after the event denied any involvement.

Ended up getting refunded for a replacement by my agent after I gave her the police record number for the incident.
When we bought our first house, the selling agent left their lockbox on the door. I called a few times for them to get it they never did. On the plus side, the useless tits had the unlock code (dad) written on the back. If they are responsible for securing your house and they are negligent enough to write the unlock code on the lock, it would seem to me that it should be easy enough to get a settlement as they wouldn't want that in the media.
 
here's one for you guys...has an aircraft hangar, landing strip, 3 car garage etc...

You missed indoor pool. That is way underpriced unless there is something seriously wrong with it. Maybe tax is out of control? It is on the wrong side of the lake but that house in a subdivision on the barrie side would be more than that (with no land, hangar or pool).
 
Not sure anymore on a path. Rent prices just keep going up and up

Its actually dropped by around $400+ past few months.
Heard downtown Toronto, Scarborough and Brampton are slowly creeping up again.
Mississauga will take a while more to recover.

Pre-covid times where tenants would bid against each other for rent are still a bit far off for now...
 
Even the smart people do dumb stuff
Buddy sells his McMansion 4 yrs ago for 1.8 million when he exits his marriage. 4 yrs later they still do not have a separation agreement in place so 1.8m is sitting at the lawyers office making .03% interest. He buys an ugly townhouse for $647k and his wife goes and rents a 4 bedroom house in north Oakville for $3,500 a month. She lives alone, in 3000sqft , dropping 50k a yr on rent + utilities +cable. She makes 85K . He makes 250k ish.
The mediators and lawyers are doing well by these two.
 
Even the smart people do dumb stuff
Buddy sells his McMansion 4 yrs ago for 1.8 million when he exits his marriage. 4 yrs later they still do not have a separation agreement in place so 1.8m is sitting at the lawyers office making .03% interest. He buys an ugly townhouse for $647k and his wife goes and rents a 4 bedroom house in north Oakville for $3,500 a month. She lives alone, in 3000sqft , dropping 50k a yr on rent + utilities +cable. She makes 85K . He makes 250k ish.
The mediators and lawyers are doing well by these two.

Moral of the story, don't get married or have a rock solid prenup? or maybe get into divorce law.
 
Without that second income you likely aren’t gonna get a house so....

I would just do what lightcycle did, but on a boat + a bike.
 
Capital gains on real estate.

For non principle residences,

To tame the market how about having to pay tax on 75 % of the gain instead of the present 50%?

Phase it in over 5 to 10 years to prevent a crash.

For principle residences it would have to be different as a lot of people are relying on their home as an RRSP. Again phase it in over 30 years to let people adjust their thinking.

For example a home value would be set shortly after the passing of the bill. The tax rate would be for example 2% on the gain for the first year and upped 2% per year to a max of 50% over 25 years.

Assume the bill takes effect Jan 1 2022 and a house is valued at a million. The house sells for 1.2 million two years later so 200K gain at 2% = $4,000 taxable gain, subject to tax rate of the individual. It shouldn't be crippling.

Instead, 10 years later, it goes for 1.6 million. 600 K gain at 20% = $120,000 taxable gain. The seller has had 10 years to adjust expectations.

Comments?
 
Sorry, but only in Canada people would be advocating for more taxes. Sucks when the market sets the value of something somebody wants but can't afford. Yes I own my house outright and I'm not in the shoes of that person who's struggling to get into the market.
I do have 2 kids in early 20's who comment they will never own a house.
 
Capital gains on real estate.

For non principle residences,

To tame the market how about having to pay tax on 75 % of the gain instead of the present 50%?

Phase it in over 5 to 10 years to prevent a crash.

For principle residences it would have to be different as a lot of people are relying on their home as an RRSP. Again phase it in over 30 years to let people adjust their thinking.

For example a home value would be set shortly after the passing of the bill. The tax rate would be for example 2% on the gain for the first year and upped 2% per year to a max of 50% over 25 years.

Assume the bill takes effect Jan 1 2022 and a house is valued at a million. The house sells for 1.2 million two years later so 200K gain at 2% = $4,000 taxable gain, subject to tax rate of the individual. It shouldn't be crippling.

Instead, 10 years later, it goes for 1.6 million. 600 K gain at 20% = $120,000 taxable gain. The seller has had 10 years to adjust expectations.

Comments?
Not a bad plan. I am also ok with a cap on tax-free exemption (like has been in place for a long time with small business). Maybe the first 500K is tax-free and taxable as capital gain above that. I know people with $5M++ principal residences with two occupants because of the tax game. It makes not sense that the exemption is unlimited. It ties up money in a stupid asset instead of having it driving innovation or circulating.

I understand allistonfjrs point about more taxes. I dislike how tax law strongly reinforces haves vs have nots. Even capital gains as a concept is far from the intent of providing reward for risking your capital to drive innovation. I would love to see tax law blown up and grossly simplified. Something like income tax that doesnt differentiate between employment or passive income, consumption tax and a huge luxury tax. If you want a fancy watch or car, that is purely a luxury good that is never required. Doubling the price with tax makes it more exclusive which is why you bought it anyway. Want to avoid paying crazy taxes, spend your money in a way that keeps it circulating.
 

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