Real Estate
- Thread starter Closer68
- Start date
I'm as British as they come, born in England of Irish heritage. I do have any eye for diamonds though.
You are an evil cynical person. Just because
"About 2.4 million U.S. households owe more than double what their homes are worth, the online housing site Zillow reported recently.
That amounts to nearly one out of every 20 homeowners with a mortgage. And about one in eight – 12.5% – owe at least 40% more than their homes are worth.
Stan Humphries, Zillow chief economist, said that homeowners are much more likely to walk away from their home when the amount they owe exceeds the home’s value by 35% or more.
“It’s definitely worrisome,” Humphries said.
Zillow’s latest report on “negative equity” – or homes worth less than their mortgages – found that 15.7 million U.S. households were “under water” on their mortgages during the first quarter of 2012. That’s 31.4% of all homeowners with a mortgage."
LOL but is it wise to mention it here?
At Yonge and Sheppard a new 1,000 sq foot condo will cost between $500,000- $600,000, but it should really cost about $250,000. I'm not basing it on anything other than my own opinion, but it's just overpriced when you can get a house that's 4 times as big for twice the price.
How does a 22 year old know all this? When i was 22 all I knew was the price of beer.
Well I am not 22, I am 28. I have been tutored for the last 18 months or so by a very very competent man who has made more money than I can count from investments. And I have a few brain cells to rub together. I have a few bucks he gave me to play with to make it interesting
. The basic rule of making real investment money is simple. Figure out what people will want in a future, and be there before they are. So you look for trends and patterns.
Banks and retail store use to own their own real estate but no more. They argue that they are not in the real estate business but Loblaws' real estate is worth more than its stores. Ever wonder how the Marvishes made their money? They tore down the Princess of wales Theatre and put up 3 80 storey condos.
Well I am not 22, I am 28. I have been tutored for the last 18 months or so by a very very competent man who has made more money than I can count from investments. And I have a few brain cells to rub together. I have a few bucks he gave me to play with to make it interesting
The basic rule of making real investment money is simple. Figure out what people will want in a future, and be there before they are. So you look for trends and patterns.
She is not 22 or 28, a lady never tells her age.
IN THE CITY OF TORONTO:
There is a glut of condos on the market. Quite simply, the (greedy) Developers have overbuilt and they don't seem able to stop (David Mirvish - look out below). There will be a price correction on the condo market, but to what degree - I don't know. There simply is too much supply.
The single family dwelling however is a completely different story. Sales remain strong and demand exceeds supply. At worst, prices may plateau, however, the big crash that so many first time buyers are hoping for is not going to happen simply because there is not enough supply and very few if any new single family homes are being built. (A few brown fields perhaps.)
It all comes down to supply and demand.
That said, if there is a major spike in interest rates (3 points or more), or a major recession, single family home prices will fall accordingly. However, the bitch of it will be that first time home buyers hoping for a crash in order to get into the market and save a few bucks will find that the interest rates are now too high for them to be able to afford to borrow, or they themselves have lost their jobs and can't get a mortgage. A true "Catch 22" if ever there was one.
I think the best way to get bargain real estate is to be a banker or a realtor. When a cheap listing comes up the realtor has an inside edge to snag it, and when a house goes into foreclosure the banker has the edge. Also anyone can bid on a property at foreclosure auctions where sometimes bargains are found.
I got lucky and snagged a cottage that was undervalued. The agent wasn't from the area, didn't list it well - other agents were unaware of the property.
I happened across it when driving and saw a sign, no one had put in an offer in the past month. I put in a low offer and it was accepted, I would have paid full price plus 10% if they asked for more.
I happened across it when driving and saw a sign, no one had put in an offer in the past month. I put in a low offer and it was accepted, I would have paid full price plus 10% if they asked for more.
If you plan to live in the house (even for a year) you are not really investing in real estate. Capital appreciation is a mug's game - OK to hope for but not the deciding factor. If a property isn't cashflow positive from day one at a risk adjusted rate of return then don't buy it. Transaction costs are often significant (esp. in the City of Toronto) and under appreciated. Liquidity is also a concern that needs to be factored in.
But to answer the basic question - for any investment you have to buy at a rational price. These properties and opportunities exist at any time and in any market but a 15-20% discount to market value is rare. As others have said you have to have enough capital to take advantage of those sorts of opportunities and the smarts to recognize them and pull the trigger in an intelligent fashion.
But to answer the basic question - for any investment you have to buy at a rational price. These properties and opportunities exist at any time and in any market but a 15-20% discount to market value is rare. As others have said you have to have enough capital to take advantage of those sorts of opportunities and the smarts to recognize them and pull the trigger in an intelligent fashion.
That is a relic from the early 20th century. In the 21 st century we admit our age, but we stay 29, 39, 49, and 59 a LONG time.
This makes a lot of sense. Would it make sense to avoid agents entirely, then? An idea might be to plaster an entire neighborhood or condo complex with flyers advertising that you're looking to buy homes?
