#10368132 - 12/18/22 06:21 PM
Re: dat real estate v.2021
[Re: Big Tasty]
|
Risky Business
Provides a Great Work Environment.
Post Master Supreme
Registered: 05/17/10
Posts: 45770
|
You are giving the city staffers way to much credit.
|
|
Top
|
|
|
|
|
#10391449 - 02/17/23 07:28 PM
Re: dat real estate v.2021
[Re: furball]
|
furball
Post Master Sr
Registered: 09/24/03
Posts: 9548
Loc: Toronto, ON
|
|
|
Top
|
|
|
|
|
#10391487 - 02/18/23 08:58 AM
Re: dat real estate v.2021
[Re: furball]
|
Risky Business
Provides a Great Work Environment.
Post Master Supreme
Registered: 05/17/10
Posts: 45770
|
OFSI is planning to extend mortgage amorts for anyone here looking to renew and can't afford their new payments, will not be available for new mortgage originations. Effectively the same thing as China, just pass it on to the next generation.
Pretty surprised how resilient prices have been despite how much purchasing power has been eroded. Still feel there is more room to go down, at best stay sideways.
|
|
Top
|
|
|
|
|
#10393496 - 02/23/23 06:09 AM
Re: dat real estate v.2021
[Re: Screamin' Type-R]
|
Risky Business
Provides a Great Work Environment.
Post Master Supreme
Registered: 05/17/10
Posts: 45770
|
We are definitely getting another hike, already priced in.
|
|
Top
|
|
|
|
|
#10396263 - 02/28/23 10:24 PM
Re: dat real estate v.2021
[Re: Risky Business]
|
furball
Post Master Sr
Registered: 09/24/03
Posts: 9548
Loc: Toronto, ON
|
Twitter summary:
- People buy a new house (Brampton) March 2022 with a 90 day closing $1.9M purchase price
- Sell their old home FIRM $1.56M also long closing
- Need a 55 Day Bridge Loan for because new house closes first and old house 55 days later
- CIBC ponies up $1.9M which is a $1.38M mortgage plus the Bridge
- New Home purchase closes BUT Old House sale FAILS 55 days later
- Sweet Jaysus, what a mess, time to Re-list sell fast
- Now the total fckery begins: the value of both properties has FALLEN
- But Seller keeps Listing at $1.5M+ on old house because they need proceeds to pay off the Bridge Loan
- Finally when they call me: they have decided to drop to $1.35M to sell
- But wait it gets worse
- Because there are 2 mortgages AND a Bridge Loan to pay (nearby 9% Interest on the $500K Bridge) the owners took out a $120K Private Second Mortgage just to keep payments going
- Now they can sell old house for $1.35M pay off the Bank First Mortgage and Private on old but SHORT
- 335K to pay off the Bridge on New House
- Come to us looking for a Private Second to go to likely 96% Loan to Value on the New House to pay off the CIBC Bridge
- That's never going to happen
- Total Disaster
- Maybe the most interesting thing they said was: CIBC is very patient
- They say CIBC has a few of these all the GTA and they "Understand the problem"
- No one should call them reckless or dumb, these poor people just got caught in the WORST possible moment in time
- Likely both homes will need to be sold and all equity lost and likely still owe CIBC
https://twitter.com/ronmortgageguy/status/1630574280202174464?s=46&t=qmLsFYDVYFOl9AZgOTXXIw
Edited by furball (02/28/23 10:25 PM)
|
|
Top
|
|
|
|
|
#10396354 - 03/01/23 09:25 AM
Re: dat real estate v.2021
[Re: SuPeR-MaRiO]
|
Simon_the_Pieman
Post Master Sr
Registered: 08/13/01
Posts: 9497
Loc: The A
|
Likely both homes will need to be sold and all equity lost and likely still owe CIBC Damn 
holy fuck
_________________________
"I'd love it if we did it... but I guess I'm a big skeptic on Canadians because so many are retarded as fuck." - 355-Si, 2020
|
|
Top
|
|
|
|
|
#10396760 - 03/02/23 05:03 AM
Re: dat real estate v.2021
[Re: furball]
|
Risky Business
Provides a Great Work Environment.
Post Master Supreme
Registered: 05/17/10
Posts: 45770
|
Twitter summary: - People buy a new house (Brampton) March 2022 with a 90 day closing $1.9M purchase price - Sell their old home FIRM $1.56M also long closing - Need a 55 Day Bridge Loan for because new house closes first and old house 55 days later - CIBC ponies up $1.9M which is a $1.38M mortgage plus the Bridge - New Home purchase closes BUT Old House sale FAILS 55 days later - Sweet Jaysus, what a mess, time to Re-list sell fast - Now the total fckery begins: the value of both properties has FALLEN - But Seller keeps Listing at $1.5M+ on old house because they need proceeds to pay off the Bridge Loan - Finally when they call me: they have decided to drop to $1.35M to sell - But wait it gets worse - Because there are 2 mortgages AND a Bridge Loan to pay (nearby 9% Interest on the $500K Bridge) the owners took out a $120K Private Second Mortgage just to keep payments going - Now they can sell old house for $1.35M pay off the Bank First Mortgage and Private on old but SHORT - 335K to pay off the Bridge on New House - Come to us looking for a Private Second to go to likely 96% Loan to Value on the New House to pay off the CIBC Bridge - That's never going to happen - Total Disaster - Maybe the most interesting thing they said was: CIBC is very patient - They say CIBC has a few of these all the GTA and they "Understand the problem" - No one should call them reckless or dumb, these poor people just got caught in the WORST possible moment in time - Likely both homes will need to be sold and all equity lost and likely still owe CIBC https://twitter.com/ronmortgageguy/status/1630574280202174464?s=46&t=qmLsFYDVYFOl9AZgOTXXIw
These situations are so wild, I had an experience like this in Feb 2022, client bought and we immediately listed, but it just so happened that it was right when the war started and rates kept going up. Bridge loan at the time for them was like 3k/day from what I remember. Thankfully they were in a solid financial position, the rug pull did end up costing a couple hundred k. Sometimes you can't time these things and with the speed at the which markets move in general (even the RE market) you have to be super diligent and sometimes act fast even if it's at the expense of not getting "top" dollar, just to have the piece of mind.
|
|
Top
|
|
|
|
|
#10396895 - 03/02/23 11:53 AM
Re: dat real estate v.2021
[Re: furball]
|
Risky Business
Provides a Great Work Environment.
Post Master Supreme
Registered: 05/17/10
Posts: 45770
|
Depends on the loan amount, the properties they were moving to and from were around the 1.5M-$2M mark, the issue is that it was around May when we quoted it and with the market being dead and rates rising the 'risk premium' attached to these products was wild. We worked around it, but yea things are wild.
|
|
Top
|
|
|
|
|
#10443760 - 06/15/23 08:14 AM
Re: dat real estate v.2021
[Re: Risky Business]
|
furball
Post Master Sr
Registered: 09/24/03
Posts: 9548
Loc: Toronto, ON
|
random loss porn I got sent...
|
|
Top
|
|
|
|
|
#10443794 - 06/15/23 09:23 AM
Re: dat real estate v.2021
[Re: furball]
|
Risky Business
Provides a Great Work Environment.
Post Master Supreme
Registered: 05/17/10
Posts: 45770
|
That's pretty bad, damn.
|
|
Top
|
|
|
|
|
#10444051 - 06/15/23 06:32 PM
Re: dat real estate v.2021
[Re: Hatorade]
|
Risky Business
Provides a Great Work Environment.
Post Master Supreme
Registered: 05/17/10
Posts: 45770
|
wasteland lol
|
|
Top
|
|
|
|
|
#10444310 - 06/16/23 02:34 PM
Re: dat real estate v.2021
[Re: Simon_the_Pieman]
|
Risky Business
Provides a Great Work Environment.
Post Master Supreme
Registered: 05/17/10
Posts: 45770
|
You are the luckiest person I know, timing was impeccable. Someone is holding that bag now.
I sold my own unit last month, feeling pretty good about it.
Now on the prowl for that multiplex play
|
|
Top
|
|
|
|
|
#10444337 - 06/16/23 03:38 PM
Re: dat real estate v.2021
[Re: Risky Business]
|
Simon_the_Pieman
Post Master Sr
Registered: 08/13/01
Posts: 9497
Loc: The A
|
You are the luckiest person I know, timing was impeccable. Someone is holding that bag now.
I sold my own unit last month, feeling pretty good about it.
Now on the prowl for that multiplex play
multi-tenant babyyyyyy!
_________________________
"I'd love it if we did it... but I guess I'm a big skeptic on Canadians because so many are retarded as fuck." - 355-Si, 2020
|
|
Top
|
|
|
|
|
#10459936 - 07/25/23 06:19 PM
Re: dat real estate v.2021
[Re: ehko]
|
Risky Business
Provides a Great Work Environment.
Post Master Supreme
Registered: 05/17/10
Posts: 45770
|
It will come down to where downtown, which building, and if you care about views/parking/amenities/etc.
I sold my Bay condo in May and broke the record per square foot for 1 bedrooms by a substantial amount. Same building now 2 months in and listings are sitting.
Seasonally the best times to buy are July/August and December/January, the least amount of activity.
Right now I can tell you anecdotally unless it's a banger unit in a sought after building it's going to sit, otherwise the sought after stuff still moves without issues.
Here is a video I did recently that breaks down state of affairs and what to expect based on seasonal trends:
https://youtu.be/f3VXDt17JOM
|
|
Top
|
|
|
|
|
#10459939 - 07/25/23 06:24 PM
Re: dat real estate v.2021
[Re: Risky Business]
|
Risky Business
Provides a Great Work Environment.
Post Master Supreme
Registered: 05/17/10
Posts: 45770
|
On the flip side I had a buyer client, didn't care about price all he wanted is a specific building, specific exposure, specific views. We got it and it was $$$
|
|
Top
|
|
|
|
|
#10460012 - 07/26/23 04:07 AM
Re: dat real estate v.2021
[Re: Simon_the_Pieman]
|
Risky Business
Provides a Great Work Environment.
Post Master Supreme
Registered: 05/17/10
Posts: 45770
|
Good to know, also not surprising. Client is bougie. 
|
|
Top
|
|
|
|
|
#10460125 - 07/26/23 10:40 AM
Re: dat real estate v.2021
[Re: c2k]
|
Risky Business
Provides a Great Work Environment.
Post Master Supreme
Registered: 05/17/10
Posts: 45770
|
Dan Leckie I wouldn't touch with a 10' pole.
Fort York, building dependent. As an investor some units there can make sense, as an end user I wouldn't go to either of these locations.
Depends on what you want, if you are in your early to mid 20's Fort York can be good value.
|
|
Top
|
|
|
|
|
#10461496 - 07/28/23 10:14 AM
Re: dat real estate v.2021
[Re: furball]
|
Risky Business
Provides a Great Work Environment.
Post Master Supreme
Registered: 05/17/10
Posts: 45770
|
Yea it's nothing special, but decent value and location.
If you want boutique/good vibe/character you have to go King West, Yorkville, etc.
|
|
Top
|
|
|
|
|
#10462812 - 07/31/23 07:32 PM
Re: dat real estate v.2021
[Re: c2k]
|
Risky Business
Provides a Great Work Environment.
Post Master Supreme
Registered: 05/17/10
Posts: 45770
|
With current rates and prices of condos, personally I wouldn't bother. You'd be cashflow negative close to 1k/month on a typical rental at current interest rates. Need 20% down.
If you are looking for residential then you can probably get a deal on something as condos are sitting. I actually saw someone give a condo away today in the west end, sold well below market.
You can try to pick up an assignment unit where someone can't afford to close on it as the building is nearing completion. This is more for the veterans though.
In the GTA the simplest move is to get a detached/semi that you can get two rentals out of, maybe even 3 if space allows, close to a major transit area and sit and wait for rates to come down and refinance. These will all be 'grey market' rentals, you can pony up and make them legal, but most people don't. You take on the risk.
Personally I am looking at multifamily outside the GTA right now as the only thing that works. I looked at an 8 unit multi family for 1.1M that brought in 10k/month in rents. You can finance these with CMHC products at ~5% and 40 year amortizations, you are in the clear. You need to do renos, buy out tenants, deal with fuckery, but well worth it.
I also saw a crazy off market deal on incomplete construction sites, a few of these popping up now and selling for 65-80 cents on the dollar.
Person starts building custom, private lender pulls financing, if person is over leveraged it gets ugly quick. I saw someone put in 1.2M into a vacant land with permitting and foundation poured, can't unload it for 700k, has to sell primary residence now to settle all debts, it's a mess. Lots of opportunistic buying is happening, but nothing is without risk.
CN: Nothing is passive, it's all work. The more work/risk the higher the upside, all the low hanging fruit/easy buy/rent plays have the lowest returns.
|
|
Top
|
|
|
|
|
#10462830 - 07/31/23 07:52 PM
Re: dat real estate v.2021
[Re: Risky Business]
|
Risky Business
Provides a Great Work Environment.
Post Master Supreme
Registered: 05/17/10
Posts: 45770
|
The condo I sold in May, I got $560k for it. The buyer that bought is paid 20% down, mortgage of 448k.
Monthly mortgage = 2,944
Maintenance = $350
Property Tax = $200
Insurance = $20
Amortized Land Transfer = 220
Total Carrying Cost = $3,734
They just rented it out for $2500 
Cashflow negative = $1,234
This is what you call modern subsidized housing.
|
|
Top
|
|
|
|
Moderator: c2k, LNXGUY, TheRealCSnapper, Professor Paki
|
|
