COVID and the housing market | Page 135 | GTAMotorcycle.com

COVID and the housing market

If you only move two blocks and sell a 1m home, your going to spend 100k' ish in legals , commissions , transfer taxes , some other payouts.

Hiring the moving van is the cheap part
Yup. Alright I change my number to $2.25M.

Land transfer tax-37k
Commission - 50k (if they’re buying I’m not going to have a realtor)
Lawyer - 2k (never paid more than $1500)

So yup…just around 100k.
 
This is craziness...ex-husband and I bought our first semi, brand new construction, 1800 square feet on a huge pie shaped lot in Meadowvale (northwest corner of Winston Churchill and Derry Road) back in 1993 for $184,500...sold it 5 years later for $219,000 and bought phase 1 of Mattamy in Milton (2400 square feet detached) for $262,000...sold it when we split in 2009 for $420,000 and I bought my new build townhome, 1685 square feet with a double car garage for $257,000...now they're going for $800,000 - $850,000...unbelievable the prices these days...

 
Bought my first home on Syer Dr in Milton for $66k in 1975. Sold it 5 years later for $122k. Divorce gobbled up a good chunk of that.
 
Bought my first home on Syer Dr in Milton for $66k in 1975. Sold it 5 years later for $122k. Divorce gobbled up a good chunk of that.
Just how old are you???

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Paid 99 k for my first house in Kitchener in 98 sold it for 240 in 06 bought a much bigger house in Waterloo for 250 sold it for 420 in 2016 most of that went to my ex. paid 600 for the current house and it has more than tripled since then.

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We bought our present house in 1992. We payed $215000. Now worth about $1.4mil. The first 10 years we lived here there was next to no increase in value.
I've always said, once you own a home the value is really irrelevant. Unless you're going to move way out of your current market.
 
Well the air is not completely out of the balloon. Coming soon signs went up on an almost double lot (single lot, almost twice the size of the rest, second driveway to side yard which could presumably hold a kickass toy garage). Someone saw the signs and within an hour it was sold. Presumably they made an offer that was good enough that looking for competitive offers wasnt worthwhile.
Found out the price. It never even made it to agents before it sold yet alone MLS. Not at all convinced in the selling agent. Sold for full list price but I figured they had a good chance at 300 more (list was low imo and obviously no competing offers). Side yard has a second driveway and lots of space. I'd but pushing for a minor variance and building max size garage I could get approved with a living quarters above. 4.5m tall and 750 sq ft is allowed in by-law IIRC. If you can get them to approve more square footage, that gives you a triple garage and 700 sq ft apartment in the volume that is allowed by zoning.
 
We bought our present house in 1992. We payed $215000. Now worth about $1.4mil. The first 10 years we lived here there was next to no increase in value.
I've always said, once you own a home the value is really irrelevant. Unless you're going to move way out of your current market.
Paper net worth is fun to watch but I agree, doesn't really make a difference in your life unless you convert paper to useable capital by moving far away. If you think markets will continue along the path they have been on, the smart play (although terrifying) is to keep increasing the mortgage to maintain constant leverage (Eg. Something like 60% loan, 40% equity). Take that money and invest it in something else. The other thing should increase at a rate well above mortage interest costs. That lets you convert the paper increase in your house into more real net worth today (you still have the house and it's still going up by xxx a year whether you owe 10% or 80% on it but you could add a lot of other investments also moving up with the equity). Obviously, the house of cards can fall and it's not for everyone. I doubt I will follow my own advice even though it should work out magically well (six figures a year extra increase in net worth). Mortgage would be scary big and no realistic way to pay it off by working a job though.
 
Paid $129 in 1997 for a condo townhouse. Sold for $210 2008, 2008 $274 for a bungalow one just sold for $1.26 mil could go inside to unsafe. Sold in one day.
 
House in a recent subdivision outside of Barrie that listed for a crazy price sold in two weeks for 100K over the comp sold weeks before which was itself 100K over the comp sold weeks before that. They didn't get their asking price but going up six figures a month is nuts.
 
House sigma as revised their estimate from 800k to 900K which makes more sense (in terms of the crazy market we live in, not in terms of people affording a place to live).
I should have held my last house I sold for 400,000 6 years ago it would be over a million now

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I should have held my last house I sold for 400,000 6 years ago it would be over a million now

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Our old house sold for ~100K less than I thought was reasonable but I didn't want a seven figure mortgage on the new house (and would have had trouble getting one). Old house went up 350K in two years. There is value in being able to sleep at night.
 
Our old house sold for ~100K less than I thought was reasonable but I didn't want a seven figure mortgage on the new house (and would have had trouble getting one). Old house went up 350K in two years. There is value in being able to sleep at night.
I had it paid off would have been easy to carry just didn't want to rent it out.

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Paper net worth is fun to watch but I agree, doesn't really make a difference in your life unless you convert paper to useable capital by moving far away. If you think markets will continue along the path they have been on, the smart play (although terrifying) is to keep increasing the mortgage to maintain constant leverage (Eg. Something like 60% loan, 40% equity). Take that money and invest it in something else. The other thing should increase at a rate well above mortage interest costs. That lets you convert the paper increase in your house into more real net worth today (you still have the house and it's still going up by xxx a year whether you owe 10% or 80% on it but you could add a lot of other investments also moving up with the equity). Obviously, the house of cards can fall and it's not for everyone. I doubt I will follow my own advice even though it should work out magically well (six figures a year extra increase in net worth). Mortgage would be scary big and no realistic way to pay it off by working a job though.
I'd never do that myself. My home is my home. Not a ATM machine.
 
Paper net worth is fun to watch but I agree, doesn't really make a difference in your life unless you convert paper to useable capital by moving far away. If you think markets will continue along the path they have been on, the smart play (although terrifying) is to keep increasing the mortgage to maintain constant leverage (Eg. Something like 60% loan, 40% equity). Take that money and invest it in something else. The other thing should increase at a rate well above mortage interest costs. That lets you convert the paper increase in your house into more real net worth today (you still have the house and it's still going up by xxx a year whether you owe 10% or 80% on it but you could add a lot of other investments also moving up with the equity). Obviously, the house of cards can fall and it's not for everyone. I doubt I will follow my own advice even though it should work out magically well (six figures a year extra increase in net worth). Mortgage would be scary big and no realistic way to pay it off by working a job though.
A guy flogging his book on YouTube was pushing the concept of not paying off the mortgage and holding some liquid assets in case things crash and you need money to tide things over. If there is a price drop the bank may not be interested in adding to the loan. He referred to Evergrande and their situation because of a change in government policies.

I'm more like @Allistonfjr. My home is not part of my investment portfolio but I know a few people that have done very well by using their houses as investment vehicles.

 

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