COVID and the housing market | Page 241 | GTAMotorcycle.com

COVID and the housing market

GreyGhost said:
It doesn't take many days of cottage rental to cover the mortgage. Stop using it as a recreational property, start using it as an income property and you are laughing.
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Agreed....but...as things tighten up, recreational spending starts to taper. So vacations, rentals, toys etc go down...at the same time as rates continue to rise.

I mean I don't know poo...but I expect cottage prices to start showing signs of weakness all around.
 
The first townhouse in my complex just sold since being built. Went up at what I thought was a $50k too high of an asking price, sat on the market for 2 weeks, and sold for $50k more. Makes me want to sell and live in my Jeep.


Re: Rental Cottages

My cousin has had a rental cottage in Gravenhurst for coming up on 10 years now. Paid big money for it back then (~$600k), and rents it out whenever he can. Its a nice big house on the lake, sleeps like 12 people. His problem is the renters go up there and party, be loud, and huge amount of people show up that it pisses off the neighbors, the cops get called, blah blah blah you can see where this is going. He now only rents it to families with kids <16. Even then the neighbor will call him at 11pm and say there is like 25 people there, do something or I'll call the cops. A lot of grief, but its probably worth $1.5m right now, so I guess it was all worth it.
 
48Connor said:
The first townhouse in my complex just sold since being built. Went up at what I thought was a $50k too high of an asking price, sat on the market for 2 weeks, and sold for $50k more. Makes me want to sell and live in my Jeep.


Re: Rental Cottages

My cousin has had a rental cottage in Gravenhurst for coming up on 10 years now. Paid big money for it back then (~$600k), and rents it out whenever he can. Its a nice big house on the lake, sleeps like 12 people. His problem is the renters go up there and party, be loud, and huge amount of people show up that it pisses off the neighbors, the cops get called, blah blah blah you can see where this is going. He now only rents it to families with kids <16. Even then the neighbor will call him at 11pm and say there is like 25 people there, do something or I'll call the cops. A lot of grief, but its probably worth $1.5m right now, so I guess it was all worth it.
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He's not the one having to listen to his ahole renters. Good deal for him, bad deal for his neighbours.
 
My friends that rent cottages rent them to "known" people . Someone has vouched for them or the owner knows them . Air BnB is a disaster looking to happen imo.

Million years ago my friends wanted to rent a chalet near Collingwood , guy would only rent to people over 25, my mom signed the papers and wrote the cheque....... but we were well behaved 20yr olds.
 
Georg3__ said:
Let it all crash
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No...let it not crash. The ramifications for the rest of the economy would be catastrophic.

As for renting cottages...my parents only rent to one couple per year. They don't trust, or want to deal with, the cleanup, upset neighbours, frustration, and general 'unknown' of renting to strangers.

I see their point...but it would be nice to see what that place could rent out for.
 
mimico_polak said:
No...let it not crash. The ramifications for the rest of the economy would be catastrophic.

As for renting cottages...my parents only rent to one couple per year. They don't trust, or want to deal with, the cleanup, upset neighbours, frustration, and general 'unknown' of renting to strangers.

I see their point...but it would be nice to see what that place could rent out for.
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World needs a reset, let it crash 🙃
 
We were talking with our realtor as they popped by to see the new addition. She said the market has gone completely silent in the last few weeks and are expecting more of a turn come June when the next rate announcement is.

She said a lot of her potential clients refuse to acknowledge that the market is down, and are still expecting top dollar for their properties. They missed the boat by 2-3 months.

She's also seen a lot of people pulling their offers when they had finance conditions because they're too scared of the potential appraisals down the road closer to closing.

Houses never stop going up right?

When we mentioned that we are considering selling and buying a larger place she told us we're out of our minds. 'Do whatever you can to make this place work for you...you'll never find this type of lot / neighbourhood in your price range within the GTA.'
 
Investors buy property, want to make it a legal duplex, costs / schedules skyrocket, and now 'woe is me' type of story. FML...this is news nowadays.

www.thespec.com

‘It has been a nightmare’: Hamilton renovations take longer, cost more during pandemic

Costs for materials and labour increasing, as lack of workers and demand make booking contractors difficult.
www.thespec.com www.thespec.com

Oh no...we made an investment (which we assumed would be only up) and now we'll have to take it out on the renters for our woes.
 
mimico_polak said:
Investors buy property, want to make it a legal duplex, costs / schedules skyrocket, and now 'woe is me' type of story. FML...this is news nowadays.

www.thespec.com

‘It has been a nightmare’: Hamilton renovations take longer, cost more during pandemic

Costs for materials and labour increasing, as lack of workers and demand make booking contractors difficult.
www.thespec.com www.thespec.com

Oh no...we made an investment (which we assumed would be only up) and now we'll have to take it out on the renters for our woes.
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So they appear to have bought it in a private sale for in the ballpark of 500 with 280 in renovation costs. That gives them a duplex with market rent of ~2350+1800 ($4200/mo) and market value >$1M. Now they need to turn the screws on their tenants? F those guys.
 
GreyGhost said:
So they appear to have bought it in a private sale for in the ballpark of 500 with 280 in renovation costs. That gives them a duplex with market rent of ~2350+1800 ($4200/mo) and market value >$1M. Now they need to turn the screws on their tenants? F those guys.
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Outside of the fact this is 'news' and is even included...I have zero sympathy on investors that take a risk, and then screw over the tenants because they're not happy.

'Our increased costs will need to be passed onto the tenants' ... yes ... just be prepared you may not get the rent you want.

EDIT: @Georg3__ these are your real enemies. People buying for investments and then screwing over the tenants because they can. This is why housing is shooting through the roof...investors and flippers (local and foreign alike).
 
backmarkerducati said:
I think they are just trying to create a last gasp boom before they crash.

IF/WHEN people start to struggle to pay for their houses (interest rate increases) and IF/WHEN housing costs start to go down even a bit the cottages market will see a larger correction. Still a big IF/WHEN but in the end it is recreational property.
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Cottages are susceptible to a downturn in the market, particularly when money gets expensive. Another thing that will hurt is when MPAC assessments catch up with current values. Lakefront property rose faster than backlots and village properties in cottage country -- that's going to creep into assessments, shifting more of the regional tax burden to cottage owners.

If the market has a correction (I remember the early 90s), speculators and those with highly leveraged on multiple properties may have no options but to sell. Employers aren't going to provide raises to cover increased interest rates, lenders aren't rewriting underwater mortgages.

I doubt the GTA will see a huge correction as the supply problem will not be fixed for years. Not so bullish on the rest of Ontario, much of their price increase is driven by speculation - not supply and demand. I saw a house in Sydenham this weekend that sold for $279 in 2018 -- listed at $750. There's a chance places like that could see $250K again.
 
Mad Mike said:
Cottages are susceptible to a downturn in the market, particularly when money gets expensive. Another thing that will hurt is when MPAC assessments catch up with current values. Lakefront property rose faster than backlots and village properties in cottage country -- that's going to creep into assessments, shifting more of the regional tax burden to cottage owners.

If the market has a correction (I remember the early 90s), speculators and those with highly leveraged on multiple properties may have no options but to sell. Employers aren't going to provide raises to cover increased interest rates, lenders aren't rewriting underwater mortgages.

I doubt the GTA will see a huge correction as the supply problem will not be fixed for years. Not so bullish on the rest of Ontario, much of their price increase is driven by speculation - not supply and demand. I saw a house in Sydenham this weekend that sold for $279 in 2018 -- listed at $750. There's a chance places like that could see $250K again.
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House near barrie was purchased two years ago for x. Pretty extensive renovations happened (no additions but inerior/exterior redone). Just sold for 2.5x. Seems crazy. Even with a retraction, I think that house has a floor around 1.7x. Now, for the new buyer, losing 0.8x would be a huge kick in the nuts.
 
mimico_polak said:
these are your real enemies. People buying for investments and then screwing over the tenants because they can. This is why housing is shooting through the roof...investors and flippers (local and foreign alike).
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Hopefully with the higher rates vehicles like the TFSA can be used instead of throwing hoards of money at real estate.

But if you only own one or two rentals I think that's okay. My bad experiences primarily came from folks who owned tons of rentals. The smaller folks were usually a lot nicer and understanding.
 
The ones that should be concerned ( or not) are the new retirees that cashed out GTA and moved to say , Goderich , with a $900 k house and 600k in the pocket. It won’t hurt them now but if the old folks home needs xxx per month and your 900 is now 500 . That’s less


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