Anybody get caught up in this mess? | Page 2 | GTAMotorcycle.com

Anybody get caught up in this mess?

I once spoke to a homeowner who said part of the mayor's job was to keep her in her home and a tax increase would force her out (as if).

The entitlement mindset transcends all socioeconomic levels.
 
They should call Wynne's office, she's still tossing Hail Marys. Since these houses are for families, covering their losses would be another show of caring from her office.

Liberals bought Oakville before (remember gas plant?) -- the seat sold for 1 Billion then, probably get it for the same today.
 
Mattamy alleged crap build quality aside, buying on paper makes sense to get a house you want, on a lot you want, finished to your specification.

But your sales agent, broker or bank wont lecture you on the "hey , what if". Banks are not your friend, thier business is selling money.

I wont say I have no sympathy , I feel bad for people that had a dream, that went sideways. I've been there, on very BAD advice from a former financial planner, which I willingly took, and lost 400k in a "correction".

The speculators? sorry folks , thats why its called speculation.
 
...buying on paper makes sense to get a house you want, on a lot you want, finished to your specification.
True, to get the house your want that is sensible.

However, that sensibility is not what cost them the hardship -- that comes from greed. Had they sold their primary residence at the time they locked in their new buy, they would have also locked in gains on their old house. They didn't, because they were speculating as a result their intended double win turned into a double loss.

Millennials meet world.
 
We supposedly study history to avoid repeating mistakes. The same thing happened 30 years ago with the same whining.

Back then a business colleague bought a larger house taking a very long closing figuring his old place would sell fast and for more money as his move in date appeared. He was looking at a bigger house with the same mortgage

Both house prices dropped but he was tied to the old high price on the new one.

He could have bailed on the move, taking his lumps, but psychologically it was easier to accept the financial hit if he was in a bigger home.

In many ways the new act is good. An unstable market is great if you are either filthy rich and working the system or not planning to move but like to brag about how much your house is worth.

I like the policy of selling the old place and going shopping with a known amount of cash but in an unstable rising market you could end up losing the farm.

Interesting that the minister of housing basically says the government can't guarantee profits to people that switch house but has been known to help out corporations that claim the government has impeded their profits.
 
Someone has to be left holding the bag... It's part of the game.
It was obvious when the makers started pulling out... everyone else should have followed.
 
If the houses had appreciated 200K between purchase and construction would the buyers be calling up Mattamy asking for a price adjustment because the contract price didn't match fair market value?

This is a good reminder that in the short term, real estate is not a guaranteed positive return investment.

An old neighbour of mine... bought 21 years before I did ( he bought in early 80s).. and He was still waiting for the place to get back up to what he paid for it when I sold in 2008.
Doesn't always work out in the long term either.
 
So glad I didn't listen to my agent, broker, bank 'advisor' to take on an addition 200k debt...
Likewise. We were approved for 25% more than we felt we could manage comfortably and with a moderate increase in rates. Industry people were trying to sell us on being housepoor - especially the bank and broker. Our agent however was a good guy and had a more genuine interest in us finding the right home than the one that got him the most commission.

Now faced with the prospect of renovating our existing home or finding our dream home for way more coin - I think we'll renovate.

Condos still seem to be a good investment. Wonder how long that will last.
 
Likewise. We were approved for 25% more than we felt we could manage comfortably and with a moderate increase in rates. Industry people were trying to sell us on being housepoor - especially the bank and broker. Our agent however was a good guy and had a more genuine interest in us finding the right home than the one that got him the most commission.
.

I've said it many times over, bankers and brokers are not your friends. Their business is putting you as deep down the rabbit hole as the regulations allow.
It's not always their fault, people will over buy to 'satisfy' a dream. Arithmetic isn't for everyone.
 
An old neighbour of mine... bought 21 years before I did ( he bought in early 80s).. and He was still waiting for the place to get back up to what he paid for it when I sold in 2008.
Doesn't always work out in the long term either.

There's got to be more to the story. The market took a swoop in the early 80's and then crashed.

In 1980 you could buy a basic single family home for around $100G's then the same places swooped to $150G's before they crashed. Now those homes are in the million range. In 2008 they would still be tons more than $150G.

Unique properties could be different.
 
I've said it many times over, bankers and brokers are not your friends. Their business is putting you as deep down the rabbit hole as the regulations allow.
It's not always their fault, people will over buy to 'satisfy' a dream. Arithmetic isn't for everyone.

That points out the problem in the system. Your agent, supposedly representing your well being, is in a conflict of interest situation because they benefit from you overpaying.

Fanning flames and stretching truths is all part of the game. Unrealistic buyers might as well wear "Kick me" signs.
 
There are a lot of people out there that meet the mortgage requirements but have no spending discipline and dig their own hole...can’t put it all on the bankers and brokers .


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Likewise. We were approved for 25% more than we felt we could manage comfortably and with a moderate increase in rates.

We were approved for nearly twice what we ended up spending.

I’m glad we bought modestly because here we are in our mid 40’s with it almost paid off.

There's got to be more to the story. The market took a swoop in the early 80's and then crashed..

That’s what I thought as well, I think his friend is telling a tall tale - yes, there were issues in the 80’s, but nobody that bought a house back then (overpriced at the time, or not) is not barely breaking even or underwater today. The same as how these people who overpaid for these houses today won’t be underwater anymore 30-40 years from now.
 
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We were approved for nearly twice what we ended up spending.

I’m glad we bought modestly because here we are in our mid 40’s with it almost paid off.



That’s what I thought as well, I think his friend is telling a tall tale - yes, there were issues in 2008, but nobody that bought a house back then (overpriced at the time, or not) is not barely breaking even or underwater today. The same as how these people who overpaid for these houses today won’t be underwater anymore 30-40 years from now.

I turn 35 in a week, and our mortgage will be paid off in a year. I got pretty lucky meeting my wife after she’d been living in this house already for years. I hit the jackpot! Haha
 
^ Nice!

I also stayed well within what I could afford, and mine's paid off, and early retirement is on the horizon. Ugh, I feel old.
 
We were approved for nearly twice what we ended up spending.

I’m glad we bought modestly because here we are in our mid 40’s with it almost paid off.

Same here. Back in 2000 we too were approved for something like $400K and ended up spending just $160K for a modest but nice place. Was nice to have it paid off in just a few years of frugal living, working two jobs and making the biggest payments we could afford. Since we stopped making mortgage payments we've still be spending (mostly) frugally -- a few toys here and there -- and have been saving for retirement and enjoying our 17th year in that same house.

Some people take huge gambles in their financial life. Those who thought the value of their homes would only and always go "up" lost their shirts in 2008 and it has happened again to these people. Sucks to be a high-roller when the dice come up snake-eyes.
 
The guy that just crashed his lambo on stouffville road had two houses. Bought for 1.6 and 1.7 million. 100k down, 1.6 mortgage on one of them. If that crap is getting approved, we aren't far behind the US. He declared bankruptcy recently, one house is now listed for 2.7.
 
There's got to be more to the story. The market took a swoop in the early 80's and then crashed.

In 1980 you could buy a basic single family home for around $100G's then the same places swooped to $150G's before they crashed. Now those homes are in the million range. In 2008 they would still be tons more than $150G.

Unique properties could be different.

Don't know the exact story... It had something do with condo prices, incentives or something in the early 80s. The guy paid just over 200K when he bought. I bought it at 120... I sold it for about 200K. He was just getting back to the price he paid... He died shortly after I moved away, He was old.
My old man explained it once, but I don't recall enough to explain in detail.
 
There's got to be more to the story. The market took a swoop in the early 80's and then crashed.

In 1980 you could buy a basic single family home for around $100G's then the same places swooped to $150G's before they crashed. Now those homes are in the million range. In 2008 they would still be tons more than $150G.

Unique properties could be different.
The market went on a tear starting 1985. A 1500 sq' new home on a 60x120' lot in Stouffville or a 1/2 acrre lot in Holland Landing cost about $100,000. By 1989 those houses were worth $325K. The market took a tumble and they went down to about 200K in 92 - it was a housing bubble, more speculators than potential owners. That was a pretty big correction.

I know lots of small time investors who had the cash flow to weather the storm, unfortunately lenders got skittish and called mortgages. That put more stuff on the market, making prices go even lower.

That combination left GTA housing undervalued for years, prices recovered by about 2005. Those $100K houses bought in 1985 are worth nearly $1M today, that would be about a 15% annual rate of return.
 

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