Neighbour just sold before C19 blew up. He sold over asking but according to him "On an artificially low asking price", they were hoping for bidding war but C19 starting hitting the fan so they made out by the skin of their teeth.

good read. same boat as most. no $$ to buy anymore real estate.

Is the deal closed? If it's not closed I wouldn't celebrate just yet just because it's "sold".

People are looking to get out of contracts left and right.

One way to leverage if you have the balls is HELOC. If you currently have a HELOC one way I've considered playing it is taking all the money out and putting it in a different financial institution in a high interest savings account and have the cash sit on the sidelines.

Let's assume shit continues to trickle down, banks will reduce HELOC limits, I already had that happen to a business loan. If residential values go down it will most likely be the same impact on unused HELOCs. If you take the money and it sits in a different bank/credit union and you are making the minimum interest payment then you are good and the bank most likely won't/can't do shit. Why call a loan if you are making payments.

Depending on what your HELOC rate is, hopefully close to 3%, you can take the money and throw into a DUCA high interest savings account at 3%, the interest earned will covered interest paid, money is safe from being reduced.

My only issue with this is if the economy gets worse to the point where we need bailouts the banks are safe, I don't know about Credit Unions and the insurance on those accounts is up to 100k so there is a risk that you could get burned on money over a 100k.

Yeah, I've got two friends closing their deals in the next few weeks. One deal was made after the pandemic/lockdown was declared so I'd think it's more likely to succeed.

The other deal is to two Indian families who will be sharing the house. I'd hope at least one of them still has a job and the deal can close.

That's fucking brilliant and I don't know why I didn't think of this years ago when I purchased the townhouse for rental. Although I no longer have a second property as it was becoming a headache to deal with tenant and issues with the property. I had the furnace shit the bed on me on the coldest day of the year and the AC shit the bed on me on the hottest day of the year. That was a great time.

Also, the water heater inside the house was mine and it was 9 years old before it started to rot at the bottom.

I ended up selling the townhouse to the people who were renting it from us, but we didn't lose money on the deal. It was more of a mental relief rather than a financial relief.

Do you have any prediction on how the real estate market will fare in the next 6 months or a year from now? I am still on the fence of getting another property, but not at the expense of my mental stress. It's either real estate or invest more into stocks.

I have lots of thoughts here but posting on a phone. I think mortgages are too high for people to have a massive drop in prices without shifting liability to lenders and screwing up credit. Besides they'll still need a place to live, this is assuming they're still employed. On a panic/worry alone why throw away equity?

On investment side I've been analyzing recently and found that over 10 yrs an index fund outperformed real estate bought in USA during the crash, blew my mind.

To invest a loan you need to also outrun the taxes so a 3% loan at 3% interest costs you money. I absolutely agree though if you want money take it when you don't need it. I have a client paying his equipment lease since last year to the broker in order to hold the loan and now that it's time to pay me the broker can't sell the loan. Omgwtf...

OP maybe I missed it which is entirely possible, but is this observation or is there a play here I missed?

Looking on Bungol it's still listed as sold...that's as much as I have to go on.

The play is to transfer cash so you don't take a haircut if the banks try to reduce their exposure which they are actively doing. Having cash during a cash crunch would be nice.

A lot of retail will be toast. I just don't see how a lot of these guys will come out of this.

And after this is all done with the cash do you buy distress sale property, put in market, buy groceries if out of a job and savings depleted, wait and see, put it in your company? I'm interested in hearing the long game.

When did it sell?

is it time for Euphoric to buy a house?

Sold March 12th according to bungol.

Here we go, credit squeeze is coming.
Scotia announced you can't use HELOC for DP on second property. That will put a damper on "investment" condos.

How does it work?

Let's say 50k down to broker held in escrow or with lawyer, buyer is unable to close due to x,y,z. Transaction falls apart, now deposit should technically belong to seller.

You don't agree to mutual release so then does it go to court, seller is defendant? Do you have to prove damages?

Why can't you sell the house to someone else in the meantime, I don't think the house is tied up as the deposit is a claim on the buyer not the seller, so no possibility of lien that I can think of.

This happened to me and I had to negotiate how much of the deposit I would retain unless I wanted to go to court. I was allowed to put the house on the market AFTER they didn't close then establish damages then ask them to release a certain amount. In my case, I got $7500 towards interest, taxes, lawn maintenance, and selling it for slightly less the second time.

From my understanding because there is a APS the sale is still binding unless a mutual release is done. Which is why the vendor can’t sell while they are disputing the APS.