I did this when I bought my condo. But then I also googled the address and news of a murder was one of the first things to pop up.
FYI price has increased four fold in about 10 years.
|
|
|
COVID and the housing market
- Thread starter mimico_polak
- Start date
FYI price has increased four fold in about 10 years.
Stonks.
All the millennials are getting filthy F-n rich on stonks.
GTAM is proof of it.
B
Don’t want to sound all doom and gloom…but…With COVID taking a lot of elderly parents I hate to say it was a windfall for many younger people (if the parents left houses, bank accounts, and insurance payouts).
Bank of mom and dad is a wonderful thing.
Don’t want to sound all doom and gloom…but…With COVID taking a lot of elderly parents I hate to say it was a windfall for many younger people (if the parents left houses, bank accounts, and insurance payouts).
POWERMAN
Well-known member
Can confirm...I had to throw in ~200 or so every month when renting a place out...its one thing when building management has condo fees to keep up the place...but another when you have careless residents who litter the common areas, steal from the amenities (gyms, video game rooms etc) thus leading to an annual increase in the condo fees and such.
Now if you have a free hold town home or a detached place...the onus is on you to help maintain the property as it is quite unlikely the tenants would be as interested in taking care of the place.
If you have the time to do so - awesome! But if you are juggling family life, career etc you will find it to be quite the challenge imo..
The last tenant I had decided to have her bf move in with her....I didn't find out about this the very end until she told me she lost her job 5 months ago (very suspicious) and she had no more money to pay rent.
I decided to grab the opportunity, cut the lease short by 4 months and allow her to move out shortly after as the last thing I wanted was someone living in there for free while I pay to support her and her bf...f that lol
I even offered her one months rent back thinking she may have needed money for food/transportation costs etc but she refused...
Also, her bf was onto some kind of drug(s)...the walls were all damaged with attempts to screw in nails (not sure for what), thick smoke/cigarettes deposit on all the light fixtures, window sills, cigarette buds on the balcony flooring, gouges in the engineered hardwood, smoke detectors had some sort of plastic wrapping around them....serious mess.
Ended up spending ~10k and whatever free time I had between April - June this year doing the place up again and sold it.
Honestly not sure I'd want to put myself through something like that again...yes the money behind it is attractive but the risk that comes along with it is pretty significant as well.
What sucks is that I paid to have Century 21 screen and get me a good tenant(s)…fat lot of good that did..
That works for one generation, maybe two, but it doesn't take much to dilute the wealth. Start splitting it between multiple kids, bad investments, failed marriages, LTC, etc and soon enough, the big plans whittle down to a nice letter. My wifes grandmother left her some money (and iirc our kids too) but as she had no money (my wifes parents had been propping her up for years living in LTC), there were no cheques.
Even if an estate left someone with a five figure cheque, if you want to use that for housing it makes little difference. You could probably have made the deal work without it. Stick it in the markets and maybe you'll get lucky and build the war chest for the next generation. If you truly want multi-generational wealth as a legacy (which I'm not convinced is positive), the bulk of the money needs to be isolated and family only gets the authorized distributions. As soon as the principal is exposed, it won't take long for it to disappear.
Give someone 1M and most will blow quite a bit of it on cars/boats/trips/etc. Stick the 1M in a trust and distribute yearly 40K and grow ~30K and things may be sustainable. Assuming 25 year generations, capital in the fund ~quadruples each generation. That is assuming this calculator works properly. I couldn't bother to make my own and most do not allow yearly withdrawals. Seems plausible. Each generation starts drawing at 25 and gets their portion of the amount available to withdraw to keep 4% average growth up. In generation one, statistically, it will be two kids getting 20K a year each (taxable), in generation two likely four kids getting 40K a year each, gen three is eight kids getting 80K a year each. Obviously all non inflation adjusted numbers. None of the kids are getting rich off that but it may make the lives of all future generations easier. Just before gen 4 starts, there should be ~75M in the fund. Now, people get greedy and try and game the system. One kid could try to bang out a swarm to alter the familial distribution. Maybe limit each family to two units from the fund? Have more kids and they split the two units (eg 2/3 unit each if you have three).
Investment Calculator
Free investment calculator to evaluate various investment situations considering starting and ending balance, contributions, return rate, and investment length.
www.calculator.net
Edit:
Calculations above assume distributions between 25 and 50 and then they stop. Hopefully the kids invested along the way or they will be in for a rude awakening. They did get the money in probably their hardest years though to give them a head start. Gen one gets ~500K each, Gen two gets ~2M each, gen three gets ~8M each. All in current dollars, adjusting for inflation reduces the apparent disparity substantially.
Last edited:
That works for one generation, maybe two, but it doesn't take much to dilute the wealth. Start splitting it between multiple kids, bad investments, failed marriages, LTC, etc and soon enough, the big plans whittle down to a nice letter. My wifes grandmother left her some money (and iirc our kids too) but as she had no money (my wifes parents had been propping her up for years living in LTC), there were no cheques.
Even if an estate left someone with a five figure cheque, if you want to use that for housing it makes little difference. You could probably have made the deal work without it. Stick it in the markets and maybe you'll get lucky and build the war chest for the next generation. If you truly want multi-generational wealth as a legacy (which I'm not convinced is positive), the bulk of the money needs to be isolated and family only gets the authorized distributions. As soon as the principal is exposed, it won't take long for it to disappear.
Give someone 1M and most will blow quite a bit of it on cars/boats/trips/etc. Stick the 1M in a trust and distribute yearly 40K and grow ~30K and things may be sustainable. Assuming 25 year generations, capital in the fund ~quadruples each generation. That is assuming this calculator works properly. I couldn't bother to make my own and most do not allow yearly withdrawals. Seems plausible. Each generation starts drawing at 25 and gets their portion of the amount available to withdraw to keep 4% average growth up. In generation one, statistically, it will be two kids getting 20K a year each (taxable), in generation two likely four kids getting 40K a year each, gen three is eight kids getting 80K a year each. Obviously all non inflation adjusted numbers. None of the kids are getting rich off that but it may make the lives of all future generations easier. Just before gen 4 starts, there should be ~75M in the fund. Now, people get greedy and try and game the system. One kid could try to bang out a swarm to alter the familial distribution. Maybe limit each family to two units from the fund? Have more kids and they split the two units (eg 2/3 unit each if you have three).
Investment Calculator
Free investment calculator to evaluate various investment situations considering starting and ending balance, contributions, return rate, and investment length.
Edit:
Calculations above assume distributions between 25 and 50 and then they stop. Hopefully the kids invested along the way or they will be in for a rude awakening. They did get the money in probably their hardest years though to give them a head start. Gen one gets ~500K each, Gen two gets ~2M each, gen three gets ~8M each. All in current dollars, adjusting for inflation reduces the apparent disparity substantially.
The Darwin award for economics goes to the kid who wastes his parents money and lazes about. He gets in trouble and dad pays the legal bills. Then the parents croak and junior finds out that dad's money is largely gone from paying for junior's sins. Junior doesn't know how to write a mortgage cheque.
Darwin's theory is an accumulation of smart or dumb moves with appropriate results.
I know of three estates that ended up in or will end up with real estate transactions to pay the legal bills.
Interesting. Nova Scotia is considering a 2% yearly foreign owner tax. The difference with their plan is a foreign buyer is anyone from outside of NS including all other Canadians. I understand the philosophy but that may open a very ugly can of worms. I think they could/should try for the desired effect using a different program (vacant home tax, higher land transfer tax for out of province buyers, etc).
www.bnnbloomberg.ca
Nova Scotia eyeing taxes for homebuyers coming from outside the province - BNN Bloomberg
Buying a home in Nova Scotia may soon be more expensive for people from outside the province.
www.bnnbloomberg.ca
D
Deleted member 50930
Guest
Mikedezo44
Well-known member
Power man you got lucky!! They easily could've squatted in there for a few more months without paying rent by the time you went through all of the legal eviction hoops while you're paying the mortgage for them to live. could've easily been 20k out of pocket instead of 10k.
I know 2 lazy millenials who could have it so well but choose to be lazy bums instead.
One, my uncle is an executor to a very well off Toronto businessman managing about 25 mil in rental properties plus other businesses he has while the owners kid is happy to get paid his 100 grand a year or whatever his dad pays him to sit at home and have no involvement, zero interest or motivation/ambition to take over his fathers business.
Other guys father has a flat roofing company (5-6 million a year in work) and same thing, kid chooses to get paid his salary to stay home and smoke weed/ waste time. If that was me I'd be out everyday trying to turn it into a 10 million a year business.
I know 2 lazy millenials who could have it so well but choose to be lazy bums instead.
One, my uncle is an executor to a very well off Toronto businessman managing about 25 mil in rental properties plus other businesses he has while the owners kid is happy to get paid his 100 grand a year or whatever his dad pays him to sit at home and have no involvement, zero interest or motivation/ambition to take over his fathers business.
Other guys father has a flat roofing company (5-6 million a year in work) and same thing, kid chooses to get paid his salary to stay home and smoke weed/ waste time. If that was me I'd be out everyday trying to turn it into a 10 million a year business.
My brother's third wife seemed like a nice lady and a veterinarian. After they broke up she got involved with another guy and rented a really nice place out in the country and soon stopped paying the rent. Then the usual stall tactics and dragging out etc. Twenty years ago she suckered the owner out of nearly $20K in back rent.
If the flat roof kid has siblings they may want to know that when daddy dies the punk can claim to be a dependent and get a bigger piece of the estate pie.The will isn't worth the paper it's written on.
One would think the law would say the kid smoked his share of the inheritance but that isn't the way the system sees it. We've just been through it.
D
Deleted member 50930
Guest
Basement apartment decided to have problems 
. But unlike Kasey this landlord showed up in 24 hours and is trying to fix it 
.
Some pipe is leaking upstairs and water ia dripping from the ceiling ...........
. But unlike Kasey this landlord showed up in 24 hours and is trying to fix it .Some pipe is leaking upstairs and water ia dripping from the ceiling ...........
Things happen to dwellings. Renting you make one phone call and sit back to wait for the repair. A landlord that values their investment should get to something like that quickly as repair cost can quickly add orders of magnitude if you delay.Basement apartment decided to have problems
Some pipe is leaking upstairs and water ia dripping from the ceiling ...........
Mad Mike
Well-known member
Not in the GTA, but good investments are out there..
A rental property in Timmins cost me $89K 18 most ago, it rents for $1050/mo. The conventional mortgage on 70K is $630 (10 year amort), taxes are $200, Enercare home service contract (mechanical, electrical & plumbing) $50, and lawn care $40/mo -- total $920. Small profit - $130/mo and in 9 years it's free and clear and should kick off $650/mo in positive cashflow. The positive cash flow math still works at $150K (the property's current value), just a longer amortization on the mortgage.
So far a 50% capital gain with a lot less downside than the stock market. A major correction is unlikely to hurt.
That makes sense. At <200K, the math can work on rental dwellings as renters ability to pay rent varies little with the local price of housing. You just need to go far enough out to get the house price down (and ideally near some employment centre). I know someone that bought in cornhole for a similar reason (although I believe Timmins was a better plan).
Glad to hear the landlord is there to look at it.Basement apartment decided to have problems
Some pipe is leaking upstairs and water ia dripping from the ceiling ...........
This just reinforces what I said before….mortgage is just one small aspect of the monthly cost of a property. There are lots of +++++ some of them greater than others.
D
Deleted member 50930
Guest
^
True(ish) this house was built in the 1950s... And it still has the original windows, garage door, really thick doors etc.
I think a house built more recently will need a lot of work at 71
True(ish) this house was built in the 1950s... And it still has the original windows, garage door, really thick doors etc.
I think a house built more recently will need a lot of work at 71
I work with enough guys in construction and the sentiment is the same....do not buy anything built within the last 5-10 years. The more recent the worst the quality.
Cheapest material
Fastest time possible
Hide any issues and hope the warranty on new builds runs out before anything is found out
I will NEVER buy a house that's a recent 'upgrade' because I've seen enough to know that it's like throwing lipstick on a pig. Issues start the day after possession.
I will take a 1950-1970 house any day over anything that's built within the last 5-10. I'd prefer it in the condition that it's been lived in. At least I can find issues.
I like my current house, it's not without issues but they are manageable. The question is do I take the first few years of my retirement in ~15 years and build a retirement house? At least that that way it is built properly to last the rest of my life without issues.
It's embarrassing what counts for workmanship these days. I have been in "luxury" houses and condos that cost $4,000+/sq ft 15 years ago and havent seen a coped baseboard yet (other than my last house where I did them).
Mad Mike
Well-known member
I'm not touching anything in a high unemployment area. Sudbury, Kingston, NorthBay yes. Windsor, Peterborough, wawa... no.
Let’s see what happens in Canada next….heard on the radio yesterday rates are expected to start rising…
apple.news
Mortgage rates rise to an 8-month high, tanking refinance demand — CNBC
Mortgage rates have been on a tear this month, rising yet again last week to the highest level in eight months, according to the Mortgage Bankers Association.
apple.news
|
|
|
|
|