AllistonGT
Well-known member
Well, if he lived in it then it's also the roof over his head, while he fixed it up.
|
|
|
Struggling financially and getting frustrated?
- Thread starter Clutt-225
- Start date
AllistonGT
Well-known member
Haha. No "mansions" in Alliston for $550000. A small link home for $475000 maybe.
Our last house we had for 10 years. Pretty close to doubled including all that.
Friends just moved to Alliston. Nice detached house, about 1700sqft, big yard, 2 car garage and a bit of work required. 565k. Said they can get another 100k over that already, which I’m a bit skeptical of.
'pre construction' they are now valued at 800k+ 2/3 years later.
I love how pre construction now sell for ‘future value’ price instead of a lower price to get in the market.
EDIT: about 5-6 years ago a few friends bought pre construction in Alliston. They all told me to buy as an investment. Stupid me. They all gained 200-300k in 2-3 years of ownership.
Keep in mind how much the stock market grew from when people bought to now.
Work out the average year over year growth for both, and see how you did, and whether it seems reasonable.
Some people see lots more value, but they've been making ~6% which was really low during some years & high others.
Just saw a pre-construction story in the paper, the builder after some consideration, and holding people's money for years, turned the project into a rental. There was a clause in the contract, that let them do it at their discretion. People who got their refund, are complaining that it's even harder to get into the market now.
Work out the average year over year growth for both, and see how you did, and whether it seems reasonable.
Some people see lots more value, but they've been making ~6% which was really low during some years & high others.
Just saw a pre-construction story in the paper, the builder after some consideration, and holding people's money for years, turned the project into a rental. There was a clause in the contract, that let them do it at their discretion. People who got their refund, are complaining that it's even harder to get into the market now.
That mess has happened a few times. One converted to rental but registered as a condo. Basically that got the developer out of all contracts and let's them sell in the future. Another vaughan condo was unable to obtain financing with acceptable terms so they canned the building. The financing ompany that would not provide acceptable terms was owned by the developer and the condos were for sale again at much higher prices. Dirty.
This has happened a few times. The awaiting owners get their deposits back (without interest), and then first dibs at the same property, but at 100k+ more than before. Totally legal. Totally bull$hit and shouldn't be allowed.
You also have 'savy' investors that see their pre-con raise in value during the build, and then 'woe is me' when the opposite happens and the big bad developer won't 'reduce' their price to keep with the new market conditions. I'm sure they wouldn't willingly give the builder more money because their investment shot to the moon during the build phase.
Technically deposits accumulate interest but do so at a rate that doesnt make sense in today's markets. Something like prime minus 5 IIRC.
I was under the impression that the deposits for pre construction don’t accumulate interest. But guess I’m wrong on this one. I know our deposit for the place we bought, we got interest in the 2-3 months while we waited for closing.
My daughter is looking for a new set of wheels and wanted to buy my Volt. The only thing I'd sell the Volt for was to buy something with a much bigger battery, IE a Chevy Bolt, a Kia Nero, or a well enjoyed Tesla.
But when I sat back and compared my paid off Volt to the not insignificant car payment I'd have by moving up (rather unnecessarily right now, at that) I told her it's not for sale.
Honestly I kind of miss my Volt...My daughter is looking for a new set of wheels and wanted to buy my Volt. The only thing I'd sell the Volt for was to buy something with a much bigger battery, IE a Chevy Bolt, a Kia Nero, or a well enjoyed Tesla.
But when I sat back and compared my paid off Volt to the not insignificant car payment I'd have by moving up (rather unnecessarily right now, at that) I told her it's not for sale.
Mad Mike
Well-known member
Fact is he might be a lot more ahead. My young neighbour bought his house for 420k 8 years ago. He put 40k down and I’m guessing paid 25k per year in mortgage and taxes, probably 10k per year more than renting. If you figure the initial 40k and another 90 k over and above renting, he was in $130k deep. He sold in Jan for $1.3, netting $840k after retiring his mortgage and paying realty commissions. Pretty good for a 130k investment - also tax free.
I guess another story since we’re moving this way....
good buddy of mine bought a farm with his parents for around 600k or so north of Barrie (Oro-Medonte or something) and put some cash into it. Did some businesses from it, built a massive shop. One day some guys come down and want to buy the property. He told them to put up a number and they can talk. Long story short after 3 years he ended up netting close to $1-1.2M tax free after all was said and done.
bought his parents a house cash, bought him and his wife a house cash in Innisfil and had some left over.
Turns out the new owner wanted the land for the Boots and Hearts Festival or something.
good buddy of mine bought a farm with his parents for around 600k or so north of Barrie (Oro-Medonte or something) and put some cash into it. Did some businesses from it, built a massive shop. One day some guys come down and want to buy the property. He told them to put up a number and they can talk. Long story short after 3 years he ended up netting close to $1-1.2M tax free after all was said and done.
bought his parents a house cash, bought him and his wife a house cash in Innisfil and had some left over.
Turns out the new owner wanted the land for the Boots and Hearts Festival or something.
Condo rip off. The buyers were led to believe the spa/ pool/ gym was to be part of the complex. Nope it's a private club.
A developer promised the city a bunch of parkland if they would rezone a site. They did. The site was then sold to another developer and the original developer disappeared. The second developer was not obligated to keep the parkland deal.
Ten foot ceilings become nine, site adjustments.
Palace Pier sold to buyers that thought they had such nice park in front of them and a view of the lake. Nope. The park was another building site, bye bye view.
The sad part is that buying a house is a wheeler dealer racket, closer to poker than a purchase.
Do you buy first and hope to sell yours for a known figure or sell and with known dollars in hand, hope you can find something in your range.
The only thing going for buyers now is the mortgage rates. They look stable for the foreseeable future but "what if".
A developer promised the city a bunch of parkland if they would rezone a site. They did. The site was then sold to another developer and the original developer disappeared. The second developer was not obligated to keep the parkland deal.
Ten foot ceilings become nine, site adjustments.
Palace Pier sold to buyers that thought they had such nice park in front of them and a view of the lake. Nope. The park was another building site, bye bye view.
The sad part is that buying a house is a wheeler dealer racket, closer to poker than a purchase.
Do you buy first and hope to sell yours for a known figure or sell and with known dollars in hand, hope you can find something in your range.
The only thing going for buyers now is the mortgage rates. They look stable for the foreseeable future but "what if".
I know several friends who bought new builds at presale who made out like bandits, walking away a few years later with hundreds of thousands in their pockets.
There's also stories of it going the other way. I can't seem to find the story with a quick google search, but there was a presale neighbourhood somewhere out this way that ended up losing significant value between what people bought in at and what the houses ended up going on the market for when they were actually completed. IIRC some of the new homeowners (some of whom hadn't even taken possession yet) tried to get out of their deals (and others tried to sue IIRC) and were all told to suck it - you signed on the dotted line at X price, now you own it.
There's also stories of it going the other way. I can't seem to find the story with a quick google search, but there was a presale neighbourhood somewhere out this way that ended up losing significant value between what people bought in at and what the houses ended up going on the market for when they were actually completed. IIRC some of the new homeowners (some of whom hadn't even taken possession yet) tried to get out of their deals (and others tried to sue IIRC) and were all told to suck it - you signed on the dotted line at X price, now you own it.
Love canal?
AllistonGT
Well-known member
Builders purchase contracts are completely, 100% one sided. If buyers on mass refused to sign then those contracts wouldn't exist.
I also wonder how many potential buyers actually have their lawyer look at those purchase agreements and fully explain them.
My guess, most don't.
Hey why spend $400 -$500 to understand and protect yourself from the biggest purchase of your life.
I also wonder how many potential buyers actually have their lawyer look at those purchase agreements and fully explain them.
My guess, most don't.
Hey why spend $400 -$500 to understand and protect yourself from the biggest purchase of your life.
I'm not sure I would ever buy a "new build", unless custom free standing home. The quality is cheap, the fixtures are often terrible and you dont know what will get built in front of you. So many condos by the lake lost the view, Burl, Oakville, Miss, Toronto all got cooked on this one.
But for so many, buying new is the only way into the market, and they line up 300 people deep.
But for so many, buying new is the only way into the market, and they line up 300 people deep.
|
|
|
|
|