COVID and the housing market

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At one point strippers were very cash rich if they didn’t have a drug problem. I knew a couple that did ok with slum level rentals . Rule one , don’t rent to strippers .
Happy to do some recon work with you ,I can talk Reno’s with strippers .


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crankcall said:
At one point strippers were very cash rich if they didn’t have a drug problem. I knew a couple that did ok with slum level rentals . Rule one , don’t rent to strippers .
Happy to do some recon work with you ,I can talk Reno’s with strippers .


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With currently going through the motions of taking over the parents' cottage in Wasaga, one of our thoughts is to just rent it out long term for a few years while we pay down the CG.

Obviously some changes / upgrades are needed to appeal to people, but I'm doing some research on Wasaga Beach rental market right now as it's a viable option for us currently. Maybe 2-3 years while the CG gets paid down, and then decide.

STR is obviously a higher risk because Wasaga cracks down on the STR market hard...however it's usually only by complaint from all my research.

Another option we are considering before we upgrade the basement is to build a small bunkie, but I'd need something that is for more cool weather and also with a bathroom / power...which changes the permit requirements 100%.
 
@mimico_polak don’t forget the winter rental for Collingwood skiing and sledders running east . Collingwood thinks it’s Whistler right now for pricing. We used to rent a Wasaga /Stayner place for the winter for sledding and skiing . Then a Wasaga place for windsurfing in the summer . If Tony’s holiday park is still operating in Wasaga , they had a picture of me with a never rent a campsite warning under it . Good times .


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crankcall said:
@mimico_polak don’t forget the winter rental for Collingwood skiing and sledders running east . Collingwood thinks it’s Whistler right now for pricing. We used to rent a Wasaga /Stayner place for the winter for sledding and skiing . Then a Wasaga place for windsurfing in the summer . If Tony’s holiday park is still operating in Wasaga , they had a picture of me with a never rent a campsite warning under it . Good times .


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LoL nice! Always good to be a part of history somewhere!

Tony's is about 3/4 of the way from our cottage to the beach (so maybe 1km from our cottage, if that). Still there, still overpriced but delicious ice cream.
 
mimico_polak said:
With currently going through the motions of taking over the parents' cottage in Wasaga, one of our thoughts is to just rent it out long term for a few years while we pay down the CG.

Obviously some changes / upgrades are needed to appeal to people, but I'm doing some research on Wasaga Beach rental market right now as it's a viable option for us currently. Maybe 2-3 years while the CG gets paid down, and then decide.

STR is obviously a higher risk because Wasaga cracks down on the STR market hard...however it's usually only by complaint from all my research.

Another option we are considering before we upgrade the basement is to build a small bunkie, but I'd need something that is for more cool weather and also with a bathroom / power...which changes the permit requirements 100%.
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Str open up hst on sale if you ever sell hst is due ont the full value.

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Scuba Steve said:
Str open up hst on sale if you ever sell hst is due ont the full value.

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Yes I forgot about that. Thanks for the reminder.

My buddy does Airbnb at his cottage (technically illegal) rental.

He thinks I’m full of 💩 when I told him he’ll owe HST on the full value of his cottage when he sells…

Back to plan A: renting to friends, family, and trusted GTAMers
 
mimico_polak said:
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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The Property TAX will be reassessed. (43485676)
 
Dresden said:
6 months later this is tracking well.

Worth noting that the Feds are working with the Province and City to eat [socialize] the cost of development fees to get builders building again. I maintain my position that the floor is around $800/sf. Doesn't mean it's a good "investment" but if you're on the fence about your first downtown condo or a rental for your kids through university I can't think of a better time than now since at least 2016.

A few awfully laid out units around Ryerson trading hands in the $700/sf. range. Tempting ... but too many better risk/reward investments out there at the moment to be highly interesting.
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"The bulk condos sold at an average of $763 per square foot, a discount of 40 per cent from the units’ original selling prices in the same buildings, Urbanation reported. By comparison, new condo units excluding bulk and luxury transactions sold for an average of $1,045 per square foot. http://archive.today/eJgsp"


Some positive news if you're interested in the Toronto condo market like I am.

Looks like those bottom-of-the-barrel/unsellable dog crates are finally being moved in bulk to discerning buyers. To me, these are hallmark signs of market bottoms. Still doesn't make a condo an ideal investment but does shift the convo from a "bad buy" to "meh, you're probably not going to lose money at these prices but you're probably not make a lot either".

So, going forward we have:
- inventory in the worst product class/dog crates drying up (will make overall prices look better as normal units still sell around $1K/sf.)
- serious lack of new condo inventory for the foreseeable future
- Foreign buyer ban lapsing at the end of 2026.
- Potentially lame duck POTUS which will soothe trade US-CAN relations.

Very strong rental market. Low odds of the economy cratering. Resilient banking and high asset growth for lots of individuals.

I'm not a realtor. Just an optimistic free-thinker.
 
A friend’s son just bought a townhouse at Hwy. 7 and Scibberas Rd. in Unionville for $750k. A tired, not very big , 3 small bedrooms and requiring a facelift (kitchen cabinets, paint, flooring etc.). Two years ago an identical unit sold for 1.1 million, Asian money has propped that area up for years. I think there are going to be some good opportunities in the next year or two for those looking to get into the market or looking for an income property if you have the money and patience to sit on it. Not a great opportunity, those days are gone but a good one. I always say plan on real estate being a ten year or more investment and you will probably do fine.
 
Dresden said:
"The bulk condos sold at an average of $763 per square foot, a discount of 40 per cent from the units’ original selling prices in the same buildings, Urbanation reported. By comparison, new condo units excluding bulk and luxury transactions sold for an average of $1,045 per square foot. http://archive.today/eJgsp"


Some positive news if you're interested in the Toronto condo market like I am.

Looks like those bottom-of-the-barrel/unsellable dog crates are finally being moved in bulk to discerning buyers. To me, these are hallmark signs of market bottoms. Still doesn't make a condo an ideal investment but does shift the convo from a "bad buy" to "meh, you're probably not going to lose money at these prices but you're probably not make a lot either".

So, going forward we have:
- inventory in the worst product class/dog crates drying up (will make overall prices look better as normal units still sell around $1K/sf.)
- serious lack of new condo inventory for the foreseeable future
- Foreign buyer ban lapsing at the end of 2026.
- Potentially lame duck POTUS which will soothe trade US-CAN relations.

Very strong rental market. Low odds of the economy cratering. Resilient banking and high asset growth for lots of individuals.

I'm not a realtor. Just an optimistic free-thinker.
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If I had the spare money laying around, I'd pick up one or two condos for rental as the market eventually settles and stabilizes.

Right now...no such option. But I'm focused on updating the cottage for potential rental investment...although Wasaga may not be the best rental location in the area. Although it is growing very quickly, and has a lot of communities being built up, the main strip is being updated, and there is a lot of growth in the area, so it may not be that bad in 3-5 years.
 
mimico_polak said:
If I had the spare money laying around, I'd pick up one or two condos for rental as the market eventually settles and stabilizes.
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I'm still not convinced about the economic viability even at $763/ft. That puts a 500 sq ft condo at $380K. Condo fees approaching $500/mo. Property tax of ~$250/mo. Rent is $1500-2000 (which is nuts imho). Assuming you put 80K down on unit and paid for LTT, lawyers, etc with cash, mortgage is ~1800/mo. So outflows are >$2500 (even without considering maintenance) and inflow is <$2000 (even without considering vacant times). For it to be a good investment, you are relying heavily on price appreciation. Is that a reasonable thing to rely on for a dog crate? I suspect if real inflation were considered, even with a tenant, many condos will have a negative real rate of return. Ouch.

Take the >$100K that you would have fronted for the condo and immediately start getting ~$10K/yr with no hassle in the markets.
 
GreyGhost said:
Take the >$100K that you would have fronted for the condo and immediately start getting ~$10K/yr with no hassle in the markets.
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Never grew the ball required to take 100k and put it into the market.

My risk appetite prevented me from it. Meanwhile everyone that I know who did it made out like bandits.
 
mimico_polak said:
Meanwhile everyone that I know who did it made out like bandits.
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Because of capital appreciation or cashflow? While we can't know for sure, I think the dog crate capital appreciation game is mostly over. Inflation will run hot and condo fees will increase much faster than inflation to batter cashflow. Obviously with the big run up over the last few decades, anyone that bought in looks like a genius.
 
GreyGhost said:
Because of capital appreciation or cashflow? While we can't know for sure, I think the dog crate capital appreciation game is mostly over. Inflation will run hot and condo fees will increase much faster than inflation to batter cashflow. Obviously with the big run up over the last few decades, anyone that bought in looks like a genius.
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Sorry I meant taking 100k into the stock market, not into real estate.

Got lucky with real estate before and still regret selling it, but apparently the roof was collapsing 6 years after we sold it.

Current owner reached out to see if I had roof issues (we never did) during ownership.

Should drive by there and check it out and what they’ve changed.
 
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