Rethinking the stupid price of housing and adding some first nation concepts.
Decades ago a friend bought a house in north Scarborough cheap because it was on leased land, with the government owning the land. The downside was that not owning the land made the property less attractive for investment value. (My friend was eventually able to buy the lot and did OK.)
It seems people want cheap housing until they move in and then they want the market to go crazy so they make a killing. They would however resent the previous owner making a killing at their expense. Hypocrisy in action.
My understanding of first nation reservation housing is similar. The native can own the house but not the land, killing the high investment potential.
There are several similarly developed properties in Ontario, typically minimalist homes on least lots geared toward seniors. Some in the GTA commute zone are in the $300 to 400 K range with a monthly lease adder ($500-700??).
I saw some nice ones further out (2 hour drive) at $500K and the land was owned. The problem is that I'm a senior and I wouldn't want to live next to me.
Could the government get more housing of this nature where they own the land and collect land rent separate from the home owner's mortgage?
Are we too fixated on owning the land and making a killing so badly we never have a place to hang our hat. How many people buy lotto tickets because they have a more realistic outlook than saving for a house?
There is the downside of not being able to cash in for millions to pay for senior's day care when needed but properly built and maintained there should be something, at least more than one would get from a landlord after decades of shelling out.
Royal Oaks Estates in Cookstown has been getting some bad press but there are homes, probably trailer or modular, for around $300K.
$50K down, $1650 a month mortgage, $800 maintenance and taxes = $2450, about the same as an apartment but with some degree of cost control. Right now the problem there is maintenance, potholes like bathtubs etc.
If the government could add maintenance controls (Which they have doing with their own properties) could it work?
The land and development cost isn't free for the government either but they have a choice of spending on land with owner occupied homes and the train wreck system of subsidized apartments we now have. With the apartments there is no incentive for the occupant to mitigate maintenance costs.
Port Rowan (2 hour commute) for $600 K, a 2 BR, 3 bath, two car garage and the lot is owned. Seniors oriented community. $100K down, $3300 a month (20 years) + Taxes.
www.firstlinks.com.au
