COVID and the housing market

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mimico_polak said:
Wasn't sure where to put this...but wow what a mess...

AirBNB guest asks for a year lease...stops paying 2/3 months in. AirBNB can't fix it, LTB isn't interested (but will see them shortly)...

toronto.citynews.ca

Richmond Hill couple fighting to evict Airbnb guest who won't pay or leave

What can you do when an Airbnb guest, who checked in months ago, refuses to pay and also refuses to check out?
toronto.citynews.ca toronto.citynews.ca

Good luck to the couple.
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There are times when it may be reasonable to invite a skunk into your house and scare it with the return air grille. An ozone generator will fix the smell once the cockroaches have been driven out.
 
Also sad is three hundred k income is one sixty ? One seventy ? Take home , taxes to the tits . You buy spare mansions because the income will never slow down . As a career commissioned sales weasel I can tell you , some months I could buy a new motorcycle for cash , some months I was lucky to have new bicycle money.
Live within your means .


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crankcall said:
Also sad is three hundred k income is one sixty ? One seventy ? Take home , taxes to the tits . You buy spare mansions because the income will never slow down . As a career commissioned sales weasel I can tell you , some months I could buy a new motorcycle for cash , some months I was lucky to have new bicycle money.
Live within your means .


Sent from my iPhone using GTAMotorcycle.com
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New bicycle money.. baller
 
mimico_polak said:
Wasn't sure where to put this...but wow what a mess...

AirBNB guest asks for a year lease...stops paying 2/3 months in. AirBNB can't fix it, LTB isn't interested (but will see them shortly)...

toronto.citynews.ca

Richmond Hill couple fighting to evict Airbnb guest who won't pay or leave

What can you do when an Airbnb guest, who checked in months ago, refuses to pay and also refuses to check out?
toronto.citynews.ca toronto.citynews.ca

Good luck to the couple.
Click to expand...
How do hotels handle it? Check in with a nearly maxed card and Hotel California in reverse.
 
Ford has passed legislation to hopefully resolve problems with the LTB. Some procedures have been faster tracked. More LTB staff to cut backlog.
No more last-minute resets to delay hearings. The oppressed renters are angry.

That addresses symptoms but the key problem remains, the gap between rich and poor.

That gap is a complex issue. The free market system say an owner decides what his product or service sells for. What a person paid for something has no bearing on what he is forced to sell at. Whether shares in the market go up or down you sell at market value, taking the win or loss. Why is investing in housing different?

The other side of the coin is the leverage advantage of a person with real estate wealth. Borrow against the present abode to buy a rental. Build some equity and do it again.

The answer could be more government subsidized housing but those subsidies come from taxpayers that are struggling to make ends meet. Is it fair to punish someone trying to pay for their own real estate foothold?
 
It’s not just a rich vs poor gap, there are people with legitimate reasons they cannot go to work in any job that would be high pay , health issues , handicap challenges , whatever . They deserve help.
Third generation in subsidized housing ? That needs an intervention.


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nobbie48 said:
Ford has passed legislation to hopefully resolve problems with the LTB. Some procedures have been faster tracked. More LTB staff to cut backlog.
No more last-minute resets to delay hearings. The oppressed renters are angry.

That addresses symptoms but the key problem remains, the gap between rich and poor.

That gap is a complex issue. The free market system say an owner decides what his product or service sells for. What a person paid for something has no bearing on what he is forced to sell at. Whether shares in the market go up or down you sell at market value, taking the win or loss. Why is investing in housing different?

The other side of the coin is the leverage advantage of a person with real estate wealth. Borrow against the present abode to buy a rental. Build some equity and do it again.

The answer could be more government subsidized housing but those subsidies come from taxpayers that are struggling to make ends meet. Is it fair to punish someone trying to pay for their own real estate foothold?
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Reddit is up in arms about this new Bill that passed. I don't think it's a major change, just allows for landlords to send people packing quicker for non-payment (which I agree with).

My buddy has a 3-plex in Niagara that he bought last year. All was good until tenant got divorced. Guy hasn't paid a dime in 4 months because 'I can't afford the rent + alimony payments to his divorced wife.

Fun times...
 
mimico_polak said:
Reddit is up in arms about this new Bill that passed. I don't think it's a major change, just allows for landlords to send people packing quicker for non-payment (which I agree with).

My buddy has a 3-plex in Niagara that he bought last year. All was good until tenant got divorced. Guy hasn't paid a dime in 4 months because 'I can't afford the rent + alimony payments to his divorced wife.

Fun times...
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That's what bothers me. HE made a bad decision and the landlord takes the hit. The guy should have married someone that made more than him and he would collect alimony. Or he should have taken better care of her.

Socialism has let people stop thinking and destroyed the work ethic.

If a large company with 10,000 rental units has a 100 deadbeats their income goes down 1%. They will survive.

If a mom and pop has one rental unit, a basement apartment or maybe they decided to keep mom's house now that she's gone. Maybe mom has dementia and the rental income pays for her long term care. LTD doesn't care and the loss of income is 100%.

BTW one troubled townhouse complex I serviced cost the corporation $10,000 every time a tenant moved out. Drywall was punched out, doors ripped of cabinets, fixtures broken. The problem was so common they started putting plywood up under the drywall.

Let's change the LTB to being a broker. Landlords pay a percent or two to LTB and the LTB guarantees the landlords rental income during a dispute. Rental increases above COL not covered.

We do need reasonable cost housing for people starting out.

Start by teaching cost of living facts in high school.

Major cities have outgrown 1970 economics. $30 for a weeks groceries, $3000 for a new car and $30,000 for a house.

Why can't our well paid MPs and MPPs come up with long term solutions instead of doing a chicken dance when an election comes along.
 
nobbie48 said:
Why can't our well paid MPs and MPPs come up with long term solutions instead of doing a chicken dance when an election comes along.
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Because many of them are landlords and do not stand to profit of better systems. They thrive and encourage this market so that they can continue making good money.

As for my buddy, it's a damn shame, especially since he spent the summer of 2024 renovating the unit top to bottom...and then the sewer backed up and flooded the entire basement...literally 3 weeks after he did all the work.

My family member a few years ago ... same thing. 7 months of back and forths, LTB, partial payments, and then the sheriff showed up, tenant moved out within 5min and left all their stuff.

I had to help owner out to move all the junk to the street and the garage only for the guy to show up with a moving truck that night. He planned on it, and got a free move out from the basement.

Funny for him...a new landlord called my cousin about a reference check...it did not go so well and the guy lost out on gov't subsidized housing. F him.
 
Interesting financial analysis on the push for "affordable" rentals and why it is not getting much uptake.

TL: DR Each unit of "affordable" housing costs the developer about $250K vs just building market rent apartments. That number is after incorporating the incentives politicians have green-lit to encourage affordable unit construction. Numbers will vary by area based on rents and how stupid local politicians are.

Ken Bekendam

Affordable Housing Incentives Don’t Add Up — Here’s Why They’re Costing Developers Millions I recently ran a full financial analysis on the current federal, provincial, and municipal affordable...
www.facebook.com www.facebook.com
 
Watching the morning news , assignment sales , which is the resale of a condo purchased pre construction are at an all time record , they number in the thousands in GTA . With increased mortgage rates and increased closing costs , many of the speculators are not able to close , family money is being kicked in to prevent default . The example listed was at Parliament, purchased for one point one mill , now listed for three hundred k less . Owner would be happy to get out . Ouch .


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crankcall said:
Watching the morning news , assignment sales , which is the resale of a condo purchased pre construction are at an all time record , they number in the thousands in GTA . With increased mortgage rates and increased closing costs , many of the speculators are not able to close , family money is being kicked in to prevent default . The example listed was at Parliament, purchased for one point one mill , now listed for three hundred k less . Owner would be happy to get out . Ouch .


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While there are thousands of listings and the speculators are taking it on the chin, most are still priced high imo. They are trying to get out with loss of deposit or a little more.

They purchased at absolutely insane prices. They are now listing at more normal prices but they are distress sales so realistically they should be cheaper.

If they get out without losing their primary residence, they should consider themselves lucky.

There was an article recently about a fancy suite (maybe 1 Yorkville?) with a huge haircut. Multi-million dollar unit with a 50 sq ft balcony. F that. Even most "luxury" condos are horrible boxes that are miserable to live in.
 
COVID threw a wrench into the housing market. People from Toronto wanting to get out of the city and own some dirt, WFH people moving to rural areas for cheaper digs or bigger house and more land for the same price. Either one decimated the local rural housing market - how can a guy working in Burks Falls compete with someone moving up from Toronto after selling his condo/townhouse plus his GTA salary.

Curious how this could be pushing along the return to office movement? Living in Burlington we have benefited from this movement as our real estate is still in demand pushing up prices. Unfortunately the development in downtown Burly plus QEW/Skyway traffic causing gridlock in town was my last straw and we have made the decision to move our of the house we renovated to be our retirement home. I have 4 more years and I am going to get out of dodge so quick it will make your head spin. Do not know where I will be going but it will be a min of 3hrs away from the GTA.
 
410001661 said:
COVID threw a wrench into the housing market. People from Toronto wanting to get out of the city and own some dirt, WFH people moving to rural areas for cheaper digs or bigger house and more land for the same price. Either one decimated the local rural housing market - how can a guy working in Burks Falls compete with someone moving up from Toronto after selling his condo/townhouse plus his GTA salary.

Curious how this could be pushing along the return to office movement? Living in Burlington we have benefited from this movement as our real estate is still in demand pushing up prices. Unfortunately the development in downtown Burly plus QEW/Skyway traffic causing gridlock in town was my last straw and we have made the decision to move our of the house we renovated to be our retirement home. I have 4 more years and I am going to get out of dodge so quick it will make your head spin. Do not know where I will be going but it will be a min of 3hrs away from the GTA.
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Look again my friend, much of Oakville and Burlington are taking a shitkicking.

My neighbour just listed her house in Millcroft, a desirable middle-class part of Burlington. She listed at 30% discount off what she paid in 2022 nobody showed at last weekends open house.

In 2022 I could have sold mine for 30% more than her asking price today (exact same house).
 
Latest population numbers for Canada show a decline.... yet no level of government is talking about the impact to housing.

There are and will be buying opportunities for those that saved some and didn't YOLO away everything thinking they will never see a price decline.
 
I am downtown and houses are still moving - I have 4 houses being built on my street right now. Bungalows being sold for $1M - $1.2M and being town down for new builds. Once you get into North Burlington (Milcroft and Alton Village) it looks more like Milton South than Burlington North. Traffic (lots of traffic), ubiquitous strip malls and utter lack of character.

People are willing to pay a premium to live downtown Burlington and Oakville - one can walk to all the festivals, restaurants, pubs and all events without having to worry about parking.
 
crankcall said:
Watching the morning news , assignment sales , which is the resale of a condo purchased pre construction are at an all time record , they number in the thousands in GTA . With increased mortgage rates and increased closing costs , many of the speculators are not able to close , family money is being kicked in to prevent default . The example listed was at Parliament, purchased for one point one mill , now listed for three hundred k less . Owner would be happy to get out . Ouch .


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If you borrow from Peter to pay Paul you still owe Peter. Borrowing from family is touchy.

I know someone who was moving from a house to a seniors apartment, expecting to cash out and buy a new car with the proceeds. They wrecked their car during the move-out and the settlement was minimal, only giving them about six months rental.

A friend loaned them the money to buy a new vehicle $40K?? to be repaid upon sale of the house. The house has been sitting for ten months with little interest. Tax, insurance and heat for the house is ~$1,000 a month. Price has been dropped 20% and no action.

If I was the lender I would be extremely annoyed, expecting a faster return.

What if you lent someone $100K as a bail out and things got worse?

Using the Parliament condo as an example, If a person was using the pre-build buy to move up and got caught in this melt down what if it unfolds again further down the line.

1) Write off the $100K deposit

2) Sell the condo at a $200K loss

3) Borrow $200K from dad to avoid bankruptcy and losing the existing home.

Surprise

A year later the market is still in chaos and the mortgage on the original home comes due. Values are down and rates up. Dad, can I borrow another $100K? The bank won't talk to me. I you don't I'll never be able to pay you back the $100K.

The family is out $400K with no rescue in sight.

Dad had to take the $300K out of his RRSPs so owes CRA $300K.

Dad decides to sell the cottage in a down market to refinance the mess and gets hit with cap gains.

Other siblings are Pi***d over the decline in the estate.

Sometimes bankruptcy isn't all bad.
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