Some places like to look at margin after all expenses (and guaranteed profit) come out. Makes it sound nicer.
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COVID and the housing market
- Thread starter mimico_polak
- Start date
D
Deleted member 50930
Guest
Yup
It’s also a cocktail bar, they making a killing off bay st. Walk ins and private dining events.
Only started working there in summer of '17. Old location was on Adelaide, new one is on Richmond.
Mad Mike
Well-known member
Your chef may not know the difference between margin and net profit. If margin (gross margin) on a steak was 7%, that means a $50 steak costs the restaurant $46.50 for the beef and the labor needed to prepare it. That's not sustainable as your operating costs (rent, wait staff, bussing staff, HLW, insurance, accounting, advertising, cleaning, maintenance, etc) would need to be covered by the $3.50 you made on the meal.
He probably calculated net profit for the restaurant -- 7% could be right for that calculation
Ages ago I was told that the cost of the food was 1/3 the menu price. There are exceptions. Appetizers and desserts probably enrich the profit.
I was kicking this around a while back with restaurants being take out and delivery only. If the food cost was 1/3 and Uber was 30% it didn't leave much for the guy frying the meat. Add to the mix the monstrous cost of restaurant equipment and rents.
I'm not in the business so can't understand the financial workings.
Those clowns laughing in the background deserve a kick in the teeth.
The accepted behaviour in the house of commons is far worse than would be accepted in every classroom in Canada. They are all small children with big paycheques and no morals.
D
Deleted member 50930
Guest
Lol I don't know why but I am shocked by this. Continue to pay ~$1,800 in rent over 5 years that is $108,000
Holy sh8t
Holy sh8t
Mortgage is no free ride either. Think of interest/property tax as rent and quite a few people are lighting a similar amount on fire every month.
Iirc, a little town in mb or sk did that a couple years ago. $1 per lot, you had two years to build (and I think they required owner occupied to drive up population).
I know everyone's situation is different in how much their mortgages are vs comparable rents, etc. For us our mortgage is $2000/month for a 4bdrm house in Mississauga, so it's cheaper for us to have a mortgage than it is to pay rent. Granted this is only possible with having a healthy down payment in the first place, carrying a mortgage well under $400k and that mortgage rates have been crazy low for quite some time now.
For those carrying higher principal mortages, or borrowing at higher rates, the numbers change drastically.
For some mild comparison, the 650sqft condo we just rented out across from Fort York is $1900/month.
Even if they gave me free land in Timmins, I'd never move there. Haliburton maybe...
Don't forget repairs/property tax (and sometimes condo fees) that renters never see but owners have to pay. In some locations, it's not that bad but someone I know was paying >$12,000 in property tax 15 years ago on a ~1M house in the GTA. Still probably cheaper than renting the equivalent house but if I was renting, it would be the cheapest thing I could get to build the warchest. By owning, I get to live in a much nicer place than I would ever rent.
Friends just got five prices for their shingle roof. It's a big house but not a mansion (~5500 sq ft). 37K to 75K. wtf. That's ~$200-400 a month for shingles.
Good point about the maint. fees and repairs. Property tax is embedded into the mortgage for us.
I recall the maint. fees at our condo are ~$500/month and we just spent $10k on repairs + loss of 4 months rent due to sitting vacant while repairs were going on (another $7.5k). But to @george__ 's earlier point, tenants paying rent for 10 years or so more than makes up for it these smaller short term losses.
$37k to $75k is a pretty big variance in price for a roof. 5500sqft is also a pretty damn big house! I grew up in a 4000sqft house and that was overkill for a family of 5.
bigpoppa
Well-known member
usually these are passed down to renters
It's a big house no doubt. Just the numbers for shingles lately are shocking. I get it if you are doing steel or you have a proper mansion (how big is a mansion 10k+?) but 5500 is on the big end of modern subdivision houses.
FWIW, prices for our roof last fall were in two groups with the A group roughly double the price of the B group. Not sure exactly why. The A group did assume a lot more hours to do the job.
Sort of but also not. In general, the landlord charges the tenant the most they can. The tenant doesn't care about maintenance or property tax as they are often maxed in their ability to pay so attempting to pass increases on means you need to find another tenant with more ability or desire to pay (or the landlord eats the expense). As things keep cranking up, property tax, maintenance and condo fees make rent unaffordable for many even if the land and building were free (which they obviously aren't).
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