# Crazy people.............



## sags (May 15, 2010)

$717,000 for half a house?...............25 bidders?

That means there are still 24 buyers out there looking up and down the street.

The owner paid $525,000 to buy the place a year earlier.

No.................there is no real estate problem in Canada.

http://projects.thestar.com/race-to-rhodes-ave/

When this crashes...........it is going to be epic.


----------



## My Own Advisor (Sep 24, 2012)

That is nuts. Supply and demand.


----------



## marina628 (Dec 14, 2010)

I could never pay $700,000 for these homes ,my money would always sit in my bank account .I have no issue paying $700,000 for a property but attached and practically on top of your neighbour not for me.


----------



## MoneyGal (Apr 24, 2009)

marina628 said:


> I could never pay $700,000 for these homes ,my money would always sit in my bank account .I have no issue paying $700,000 for a property but attached and practically on top of your neighbour not for me.


I could throw a stone from my actual house and hit that house!


----------



## Cal (Jun 17, 2009)

I hope mortgage rates rise this fall in expectation of Yellen raising rates next spring. I can't see anything other than that cooling this market.

My fear is that this RE market, will wipe out a generation of spending money for the economy to grow with.


----------



## off.by.10 (Mar 16, 2014)

Wow! Half an old house which doesn't even look that well maintained. This is beyond crazy. Fortunately, real estate isn't as bad around here.


----------



## marina628 (Dec 14, 2010)

MoneyGal said:


> I could throw a stone from my actual house and hit that house!


Another reason not to buy there , neighbors throwing rocks


----------



## james4beach (Nov 15, 2012)

It's another credit bubble... this time fuelled by insane credit growth in China. Like all credit cycles, it eventually goes through a contraction period.

This is the kind of thing that happens when credit and leverage create the illusion of wealth and available money. This time, it appears to be centered in China. It's an illusion. We went through the same thing in the USA, anyone remember that? Of course not.


----------



## Jon_Snow (May 20, 2009)

So glad I bought in 2002... and we were nervous about spending 140k. 

Anybody buying in Vancouver, Toronto, and to a lesser degree Calgary right now have some serious stones.

I think there is a good chance these people are financially doomed... just think what could happen if rates normalize.

And James, I think most on this board are aware of what happened in the U.S.... geez man. :rolleyes2:


----------



## NotMe (Jan 10, 2011)

Don't throw stones at me but I think this falls into the everybody values things differently category.

I would rather pay $800,000 for a semi in a central area of Toronto with a good subway connection so I have a half hour door to door commute than $400,000 for a detached house in a nice part of north Oshawa with a 90 minute door to door commute.

Personally I would probably rent if we hadn't bought in Toronto in 2007 (paying $450,000 for a detached house at dvp/lawrence, setting a record price for our street, and much of the same 'This won't end well" real estate crash talk was in vogue seven years ago) but I can understand the purchase at least.

I mean I would also never pay $65,000 for a car but people do it every day and I can at least understand the appeal. YMMV.


----------



## Just a Guy (Mar 27, 2012)

Gee, I feel sorry for all the "investors" out there...they missed an opportunity to buy a "quality" rental that may have gotten $1,500/month in rent...they must have been asleep, or it would have been bid up to $1,000,000.


----------



## carverman (Nov 8, 2010)

sags said:


> $717,000 for half a house?...............25 bidders?
> 
> That means there are still 24 buyers out there looking up and down the street.
> 
> The owner paid $525,000 to buy the place a year earlier.


I'm familiar with that area around Coxwell in East York..used to live there in the 70s. My mother and brother live there now (East York, just one street south of the Danforth). 

It's an old old 2 story 500 sqft per floor brick house with a basement, nothing fancy, but with a private driveway and a detached garage in the backyard.
Years ago, when I was living and working in Toronto, I bought that same house for $25,000. When I moved out of TO, my mother bought it off me for basically what I had paid over 2 years in mortgage payments.
Today..being so close to the subway and your own off street parking makes a big difference..I bet it's somewhere in the $500k range. It's had plumbing and electrical upgrades over the years, and this year , my brother and mother are planning for a sewer line upgrade, as well as getting rid of any remaining knob&tube wiring..very little of it left. 

People are buying these houses even if they are 80+ years old, because they are centrally located and close to the subway. 
My brother uses the subway for his work and drives very little..too much grid lock in Toronto these days.


----------



## Four Pillars (Apr 5, 2009)

marina628 said:


> Another reason not to buy there , neighbors throwing rocks


Lol.

Sags - A semi-detached (or is it semi-attached?) house is not half a house.

For the record, I don't see anything crazy about it.

Some locations are more expensive than others. See New York city etc.


----------



## marina628 (Dec 14, 2010)

Had a condo downtown and currently rent a place for our daughter right on Lake Ontario and pay a premium for that view so understand the draw.For me I love that I have 200 choices for take out when we visit my daughter.Speaking of New York City my daughter will graduate in 2015 and her dream job is in New York City and looking at $3000+ a month in rent but her job will give her a moving allowance and probably will start at close to $100,000.My husband and I looked at properties to purchase and found one last summer with was $325,000 ,we thought not bad until we realized this was fractional ownership 1 month a year lol.


----------



## MoreMiles (Apr 20, 2011)

It may be bubble but with all that extra cash from QE money printing, people need to rebalance. So RE is a good choice. Imagine your stock portfolio doubled from $5 to $10 million... don't you want to take some profit and buy some hard asset? That is what a lot of affluent immigrants do in GTA now. So I don't see a bubble either. If you can still buy stocks after its 150% gain in the last few years, you can definitely buy RE.


----------



## MoreMiles (Apr 20, 2011)

Cal said:


> I hope mortgage rates rise this fall in expectation of Yellen raising rates next spring. I can't see anything other than that cooling this market.
> 
> My fear is that this RE market, will wipe out a generation of spending money for the economy to grow with.


http://www.financialpost.com/m/wp/n...rtgage-covered-study-shows&pubdate=2014-03-25


----------



## piano mom (Jan 18, 2012)

We may have a paid for home and good retirement saving but boy does it make me feel poor when checking out what we can afford to buy in Vancouver (we live 30 minutes outside of vancouver). How do people afford it? I mean (at least I think) we have good net worth (almost 2 millions now) and still feel we can't afford to live in Vancouver


----------



## Homerhomer (Oct 18, 2010)

marina628 said:


> Another reason not to buy there , neighbors throwing rocks


lol, apparently neighbours on that street have get togethers and coctails,,,,, guess MG wasn't invited ;-)


----------



## Nemo2 (Mar 1, 2012)

Homerhomer said:


> lol, apparently neighbours on that street have get togethers and coctails,,,,, guess MG wasn't invited ;-)


Yabbut, they're Molotov Cocktails. :wink:


----------



## carverman (Nov 8, 2010)

MoreMiles said:


> It may be bubble but with all that extra cash from QE money printing, people need to rebalance. So RE is a good choice. Imagine your stock portfolio doubled from $5 to $10 million... don't you want to take some profit and buy some hard asset? That is what a lot of affluent immigrants do in GTA now. So I don't see a bubble either. If you can still buy stocks after its 150% gain in the last few years, you can definitely buy RE.


I'm seeing these as real estate "flips". Good way for young DINKs (Double Income No Kids) to buy these downtown, (hence the feeding frenzy), living in it for a year or two, just to get around the
taxman and having to live in it as your primary residence, to make a few thou" without having to pay the taxman everytime you turn around. But just like any "pyramid scheme", when the
real estate bubble bursts (eventually) many will be walking away from these high mortgages. This has happened already once in the GTA, forget if it was in the late 70s or 80s.


----------

