COVID and the housing market

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Scuba Steve said:
I have a 900 sq ft home that needs gutted and redone I am working on convincing my wife that we should move there and sell the house we live in. Not going so well.

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What's going to appreciate more, your present abode or the 900 SF one after modelling?

Assuming some cash in hand from the sale of the present home, what are the projected after tax returns on the cash?

How do the numbers crunch if you rent out the present abode, make the fixer upper the prime residence and sell it cap agains free when complete. Move back into your rental. Unless there is a surge in pricing the cap gains on the rental over a short period should be minimal.

Discuss it with a divorce lawyer first.
 
Scuba Steve said:
I have a 900 sq ft home that needs gutted and redone I am working on convincing my wife that we should move there and sell the house we live in. Not going so well.

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It’ll go much better once the new place is renovated and beautiful!
 
Mad Mike said:
I don’t think the economy would suffer if we went to smaller homes. Yolo spending just shifts to other things, I look out my front window in Timmins, every driveway has a pickup, ATV, Sled and boat. Every neighbour goes south each winter. There’s a Trager on every deck, and I get serve/get served Tomahawks and nice Bourbon when dining with friends.

The other thing I really notice, is the smart youngsters here amortize mortgages over 10 or 15 years.
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Traitor. No more bourbon.
 
nobbie48 said:
I'm guessing you weren't entitled to your own TV set, 100 channels of cable, your own ensuite, credit card by dad, phone etc. I am also guessing the word "Share" wasn't considered demeaning.
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One tv in the house. 8 usable channels. First 10 years of my life, one bathroom. Parents did a second one downstairs after. Never had AC till my own house, (present home).
And we had it good. I'm not complaining.
 
Mad Mike said:
I think it’s a mix. My kids are just getting into the game, they would like a trendy new build with all the trimmings, but they are separating needs and wants. a few of their friends opted for commutes to get new builds in netherlands like Coburg, Port Perry, Cambridge and Clarington (sadly their equity was murdered in the last 2 years). Some bought small mid century homes without the 9’ ceilings, granite kitchens and spa showers closer in, Keswick, Pickering, Claremont.

The problem is the starter homes I speak of are partially blocked by municipalities who are greeding for McMansion tax dollars, and partially because of builder economics. .

There are countless packages of land around the gta that is zoned for housing but held arms land reserves, paying farm tax till developers can max profits. I say buildable land should be fully taxed often 2 years. Force builders to pay $5000 for each building lot as opposed to the $5000 they pay for 100 vacant lots.

Supply and demand kicks in and the hoard of lots showing up on the market frees land for small builders to build small houses.
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Most of the land is not owned by the builders. They leave it in the hands of the farmers and pay yearly to keep their option to purchase alive. Only shortly before building do they actually pay the big number and transfer the land into the development corp. No politician has the stones to force a farmer to destroy fields. Politicians like to say they are doing what they can to protect the fields. There could also be unintended consequences. If farmer Joe is told he has two years to get shovels in the ground, does he get fair market value for land or do developers leave him hanging until he folds as they know the impending tax bill will bankrupt him?
 
nobbie48 said:
If people were more frugal they’d accept smaller homes. They’d also drive simpler cars, stop going out for meals and vacation locally.

They’d also crash the economy that is dependent on YOLO spending.
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Smaller homes are for sale anywhere near the GTA? Yeah right!
 
nobbie48 said:
I know a few builders that scoop them up when found in the right area. Demolished the next day and voila, McMansion.
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I was walking through our old neighbourhood in Old Toronto…I couldn’t believe how many of the old tiny war time homes were already McMansions or on their way to being McMansions. 3 on one street side by side on 7th street alone south of lakeshore.
 
mimico_polak said:
I was walking through our old neighbourhood in Old Toronto…I couldn’t believe how many of the old tiny war time homes were already McMansions or on their way to being McMansions. 3 on one street side by side on 7th street alone south of lakeshore.
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Want always seems to out weigh need when it comes to house size.
 
Jampy00 said:
Want always seems to out weigh need when it comes to house size.
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On the flip side, when vacant lots are pushing 500K (or more), if you build a 1000 sq ft house, you are invested for 750K and you can sell for ~750K. If you build 3000 sq ft, you are invested for 1.25 and can sell for ~2M. The economics of small houses on expensive land don't work well.
 
Jampy00 said:
Want always seems to out weigh need when it comes to house size.
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100%
we have a good house in a good neighbourhood and we are happy.

BUT

if I could afford to buy my friends’ house across the main road, on a block facing Erindale Park, with a pool, and space for everything we could ever need…

I’d buy that place in a heartbeat.

They just bought a house where their garage has more square footage than my house…
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