Theres an influx of houses hitting the market around me, all seem to be reselling after 3-5yrs of ownership . New interest rates banging up against the inflation rate and take home pay #'s ??
COVID and the housing market
- Thread starter mimico_polak
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I see a couple of foreclosures on my street.
Bank is asking 1.4 for one similar to mine. Same house just different interior, the original owner was from Lebanon.
Looks like they dropped the price already
Bank is asking 1.4 for one similar to mine. Same house just different interior, the original owner was from Lebanon.
Looks like they dropped the price already
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175 square foot social area. Small RVs are bigger. I assume the bedroom and bath are more generous.
Ontario cities that have the most default mortgage homes for sale | insauga
Toronto has the most “power of sale” properties on the market in Ontario by far, but Brampton is in second place with nearly twice the default mortgage sales compared to Mississauga. The rankings come from real estate website www.powerofsalelisting.com, and shows some 152 power of sale listings...
www.insauga.com
The Toronto power of sale numbers are housing investors that are literally declaring the project over and walking . Adding the condo fees into the financed costs and looking at the time to break even let alone turn a profit and the party is over.
Brampton so I am told by my broker pal is mostly borderline criminal , fake paperwork on earnings statements so they could get mortgages they could afford then , not now . Guy working at dad’s Petrocan convenience, making two hundred and fifty k . Yeah , that happens a lot . ……
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Brampton so I am told by my broker pal is mostly borderline criminal , fake paperwork on earnings statements so they could get mortgages they could afford then , not now . Guy working at dad’s Petrocan convenience, making two hundred and fifty k . Yeah , that happens a lot . ……
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Multiple whammies
Prices down, interest rates up and a huge number of condo corporations with inadequate reserve funds.
I think it was Harris that made the new condo act face the reality of what happens when reserve funds are inadequate. I read it as a way of avoiding masses of condo owners begging for government bail outs when the joint needed new roofs or elevators as happened in BC. Not sure if they got anything.
So what happened to enforcing the act? The government was supposed take over if the fund wasn't right.
Anyone buying a condo needs a proper review of the mandatory reserve fund study and the price discounted to fit reality. A condo complex near us had a double million dollar garage restoration and is now asking for more money to correct things that weren't done right. IIRC guarantees are for two years.
Condo boards are notoriously incompetent. Many property managers only know the paperwork of what should be done, not knowing mud from mortar.
Some restoration contractors are linked to management companies.
What could possibly go wrong?
Condo boards are made of recruits from usually within the building , you may be a teacher or dentist , doesn’t mean you know how a building should work. The list of condo board directors that have a cousin Vinny in the paving business is a mile long .
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Glenn/RZ500
Well-known member
My neighbor, retired from 40 years in construction in the GTA and Boston cautions... "stay the hell away from condos". A couple friends in Durham got dinged for 30 grand in their big condo complex, as did all owners when their huge parking lot and walkway system needed replacing, paved and brickwork. The reserve had been drained in dealing with mold that had spread thru a number of units. Of course very few owners had 30 large to front them so monthly maintenance fees got jacked significantly. Welcome to it.
Mikedezo44
Well-known member
There's an old apartment building from the 70's or 80's near me. They had an outdoor 2 story parking lot, one about 7 feet below surface, one 7 foot above...it was looking pretty rough for years, they closed off the top story for a while, then ripped it off completely. Shored up the walls a bit and now cars are parking in the below level with no roof above it. Must not have had the big $$ to rebuild completely.
Mom’s condo needing the top level of the parking garage redone , twenty five yrs of salt had eaten the rebar and compromise the concrete . Assessment would be fifteen K per unit , payable in three installments in case it went over budget , then your last cheque could be more .
Board member had an aquaintance/ relative in construction and in favour of taking one quote and awarding the job . Retired civil engineer living in the condo took the quote and a measuring tape and went after the board for attempted fraud , the quoted lot was twenty five percent larger than the actual garage and included tens of thousands in additional poured cement and paving that was not required. Board member resigned and soon moved out of the building. He was a pariah. Happens all the time .
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Board member had an aquaintance/ relative in construction and in favour of taking one quote and awarding the job . Retired civil engineer living in the condo took the quote and a measuring tape and went after the board for attempted fraud , the quoted lot was twenty five percent larger than the actual garage and included tens of thousands in additional poured cement and paving that was not required. Board member resigned and soon moved out of the building. He was a pariah. Happens all the time .
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Wouldn't it be nice if all those people that assisted in the fraud had to pay their way out of it. Also copy the $250K income guy's letter to the CRA so they can apply the appropriate taxes.
Go big or go home or both
Down the street a short walk is a house similar to what this used to be. It's listed at $1.2 Million. There's nothing else in the area anywhere near $3M, especially a barn.
Down the street a short walk is a house similar to what this used to be. It's listed at $1.2 Million. There's nothing else in the area anywhere near $3M, especially a barn.
They bought the old house for 1.35 in 2024 (listed at 900k then). They had it listed at 2.8 for a few weeks to try to get a bidding war. When it's a super slow market, adding 500k to your asking price always works well. Power of sale coming soon.
He must be a Liberal. Justin spent over double that for a barn in Ottawa.
The design and finish remind me of the old insult "You're ugly and you mother dresses you funny."
This place is a stone's throw from my parents' house and I see it every time I go visit them.
Monster home that is in no way within the 'character' of the neighbourhood.
Not sure how the hell this got approved.
Good luck for 3.3M.
EDIT: Fun fact, this house listed is $2k/year less on property taxes than mine is...
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As a start, "character of the neighbourhood" is crap and imo should be automatically ignored as an argument. Crap like that is just a pile of red type that really doesn't benefit anyone.
Municipality should have a plan for what they want their city to be. The development should be compared to the plan for the future not what was built in the past. Maybe municipality wants 10% of dwellings to be 5+ bed or maybe they want all residences over 5k feet to have a secondary dwelling within.
I personally think this project was stupid and owner will lose their shirt. The first monster house in an area is the hardest sale. Once one sells, many follow as the neighbourhood follows the mold. Realistically, the builder should have enough money to do multiple properties at the same time. Move into one and sell the others and then repeat. That avoids having a weird one-off in the neighbourhood. Builder could spend their whole career in one neighbourhood.
Fair point.
As to the builder comments you mention...seen that a million times. Young guys / families would buy a house to reno and flip...rinse and repeat.
One house to live in, one to reno, and one to rent.
Basically move through them and acquire more properties.
Sadly this also allows them to avoid the CRA rules (unless they dig into with a fine tooth comb).
Live in a property for anything over 1 year while you reno the next. Flip the 'primary' live in the newly renovated place, while renting the next place while it waits for it's turn.
Really wish I had the balls to do that. Wife would even be on board if it stayed within the area...but the costs are astronomical to get started especially now.
It's a long term investment and you don't get your money back right away.
Not far from that one is Neilson Drive where, over the last few decades, the bungalows and story and a half homes have been demolished and replaced with 3000 SF stone executive manors.
A lot of houses in my area have lots that in recent times would have 2500 to 3000 SF houses but are half that. Lot values are over a million so a demolition and 3000 SF new build would tie up over $2.5 M and sell at a 10% loss. The untouched place next door could go up a few percent by association.
The stigma of the new build only affects the old long term residents wanting to stall time. They get to smile in a decade or two when they move on.
It does bring on some status issues when a 60 year old factory worker in his 1200 SF home, bought decades ago, compares his lifestyle to that of the yuppie neighbour in his 3000 SF. While their net worth may be similar their cash flows will differ.
It's also a great way to launder money if it's a principal residence.
I was doing a repair in a very bland house being tarted up. I asked the electrician why the owner was spending so much money on a nothing special place.
He replied that the owner owned a few strip joints and needed a way to spend the cash. The trades got the cash.
I need to find more shady customers for MP renovations.
I'll be happy to take cash for them and give out receipts for the work.
