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Locked: Housing Market is HOT!

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  • Apr 23rd, 2014 8:36 pm
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Sr. Member
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Aug 20, 2011
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Markham
Anyone here flip pre-construction homes ?
Sr. Member
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Aug 20, 2011
699 posts
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Markham
JayLove06 wrote: Yea. A crash won't make things easier for those who are sitting on the sidelines. I have a few properties myself. One is up for renewal within the next 10 months. I was going to sell it and sit on the profit ($100K+ in my hand after fees, taxes, etc). I may keep it now because I think the value will climb, though. A lot of things to think about.
If it were me I'd refinance it and put it as a down into another investment propety, my personal opinion tho
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Mar 23, 2009
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Toronto
LAPrince wrote: Anyone here flip pre-construction homes ?
Well, I don't, and now there is a good incentive not to. CRA is coming after these people now.

http://www.thestar.com/business/real_es ... ppers.html

Folks who’ve sold condos or houses less than a year after taking possession seem to be the prime focus of CRA auditors so far, but tax lawyers are advising clients they could be at risk of a tax bill for at least 50 per cent of any gains made if they’ve sold before living in the property 18 months to two years.
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Aug 20, 2011
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Markham
FutureCEO wrote: The sad thing is that responsible individuals such as myself that are unwilling to over leverage are completely priced out. I am not spending 6 times my gross income on a home. That's ridiculous.
Then your gonna be working for money & money won't work for you
Deal Guru
May 1, 2012
10538 posts
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Toronto
LAPrince wrote: One thing to remember is, houses don't go up in value, the land it sits on goes up in value.
If the land rests on an area that has excellent schools (especially Secondary), you can just sit back and watch your house appreciate non stop. Even if you own a dump, it will appreciate. The notion that better schools = better kids is slowly creeping up to Canadians. This notion rests in basically most countries in the world, and it's creeping into our society. I don't necessarily agree with it, but certainly I am not the majority.

If you look at mean RE prices, look for the school districts. Better School = Higher Prices. Guaranteed.
Sr. Member
Jan 30, 2006
870 posts
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Anikiri wrote: If the land rests on an area that has excellent schools (especially Secondary), you can just sit back and watch your house appreciate non stop. Even if you own a dump, it will appreciate. The notion that better schools = better kids is slowly creeping up to Canadians. This notion rests in basically most countries in the world, and it's creeping into our society. I don't necessarily agree with it, but certainly I am not the majority.

If you look at mean RE prices, look for the school districts. Better School = Higher Prices. Guaranteed.
School ratings change all the time. Also being house poor but attending good school probably worse for your child and yourself than attending average school and have some disposable income
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Mar 31, 2008
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Toronto
kashirin wrote: School ratings change all the time. Also being house poor but attending good school probably worse for your child and yourself than attending average school and have some disposable income
No way! The higher rated school will more than do a great job of raising a child.
Deal Guru
May 1, 2012
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Toronto
kashirin wrote: School ratings change all the time. Also being house poor but attending good school probably worse for your child and yourself than attending average school and have some disposable income
A lot of school reputation is based on word of mouth. Take for example the school Earl Haig SS. It's not even that great a school anymore, but people are on the streets asking others (who live there) to use their address so their child can go to that school. Also, RE in the Earl Haig zone cost a grand fortune. Another example is A.Y Jackson. It's really not that great a school, but it's in a hot hot hot area for RE... because it's "known" as a good school.

About disposable income. What would you consider adequate disposable income? When you buy a house 2-3x gross? That's clearly unrealistic. What if you go 4-5x gross? Is that too little disposable income now? If you say yes that is too little disposable income... then where do you realistically want to live that allows you go buy at 2-3x gross? Furthermore, if you say renting is a better choice, then that would most definitely negate the stability of owning property for your kids.

It's easy to for you talk about disposable incomes and fluctuating school rankings, but at the end of the day... most (if not all) good school zones are associated with higher RE prices. It's just fact.

I would rather raise kids in their own home, than to rent and move non-stop. Continuity & Stability & Equity over slightly more disposable income.
Deal Expert
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Oct 26, 2003
39342 posts
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Winnipeg
at1212b wrote: No way! The higher rated school will more than do a great job of raising a child.
must be a gta thing, outside of gta people don't seem to care about ratings that much, and probably isn't a rating to care
Deal Addict
Jul 18, 2005
1760 posts
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Anikiri wrote: A lot of school reputation is based on word of mouth. Take for example the school Earl Haig SS. It's not even that great a school anymore, but people are on the streets asking others (who live there) to use their address so their child can go to that school. Also, RE in the Earl Haig zone cost a grand fortune. Another example is A.Y Jackson. It's really not that great a school, but it's in a hot hot hot area for RE... because it's "known" as a good school.
The high price of real estate near these schools owes more to the fact they're situated near major transportation arteries.
Sr. Member
Feb 5, 2013
592 posts
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divx wrote: must be a gta thing, outside of gta people don't seem to care about ratings that much, and probably isn't a rating to care
It's top of mind in Vancouver. Prices can change in one block based on the school boundaries.
Deal Guru
May 1, 2012
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Toronto
civ@uw wrote: The high price of real estate near these schools owes more to the fact they're situated near major transportation arteries.
AY Jackson, PET, Unionville, Markville, Bur Oak, Bayview SS, etc... I can go on and on... are not within whiff of any major transportation arteries. Yet the RE in their boundaries are just phenomenally expensive. It's most definitely the school, although I concede that major transportation hubs are also extremely important.
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Oct 26, 2003
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Winnipeg
bankonit wrote: It's top of mind in Vancouver. Prices can change in one block based on the school boundaries.
fine, only where there is a major asian concentration, asian care about academic the most it would make sense
Sr. Member
Jan 30, 2006
870 posts
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divx wrote: must be a gta thing, outside of gta people don't seem to care about ratings that much, and probably isn't a rating to care
it's not gta thing
but probably more Asian thing
Chinese are obsessed with academic performance of their children
they were somehow brainwashed that academic performance is what important for life success
A- is Chinese F
Deal Addict
Jul 18, 2005
1760 posts
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anikiri wrote: ay jackson, pet, unionville, markville, bur oak, bayview ss, etc... I can go on and on... Are not within whiff of any major transportation arteries. Yet the re in their boundaries are just phenomenally expensive. It's most definitely the school, although i concede that major transportation hubs are also extremely important.
v
divx wrote: fine, only where there is a major asian concentration, asian care about academic the most it would make sense
Sr. Member
Feb 5, 2013
592 posts
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divx wrote: fine, only where there is a major asian concentration, asian care about academic the most it would make sense
Well, Canadians have to start realizing we are an Asian country now. Growth isn't coming from birth rates anymore, and the powers that be will not settle for population stability. Learn Mandarin is my suggestion to my kids.
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Feb 11, 2010
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LAPrince wrote: Then your gonna be working for money & money won't work for you
Are you suggesting that the only way to have your money working for you is through real estate?
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Oct 26, 2003
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kashirin wrote: it's not gta thing
but probably more Asian thing
Chinese are obsessed with academic performance of their children
they were somehow brainwashed that academic performance is what important for life success
A- is Chinese F
civ@uw wrote: v
bankonit wrote: Well, Canadians have to start realizing we are an Asian country now. Growth isn't coming from birth rates anymore, and the powers that be will not settle for population stability. Learn Mandarin is my suggestion to my kids.
leave the asians to focus on their academic, everyone else can feel free to do whatever they want, play hockey for instance
Sr. Member
Feb 5, 2013
592 posts
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kashirin wrote: are you Chinese?
I have kind of different philosophy
Let Chinese people who will work for us learn our language (which is obviusly not English) especially as they like to study a lot
I guess that is the basis for the language laws in Quebec, eh? Good luck pushing that through the rest of Canada.

In my field, banking, you don't get a job (easily) in GVRD without some eastern language. The White Canadians will deal with anyone (and like to, to look 'progressive'), while the ethnic community will self select. Vancouver is over 50% minority now and has reached the tipping point IMO.
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Feb 29, 2008
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Tarrana & The Ri…
EugW wrote: Well, I don't, and now there is a good incentive not to. CRA is coming after these people now.

http://www.thestar.com/business/real_es ... ppers.html

Folks who’ve sold condos or houses less than a year after taking possession seem to be the prime focus of CRA auditors so far, but tax lawyers are advising clients they could be at risk of a tax bill for at least 50 per cent of any gains made if they’ve sold before living in the property 18 months to two years.
Sometimes I think the government is hell bent on punishing speculators and investors... The same people who have really kept our economy afloat for 10+ years. Now they want to completely crash the RE market it seems. No issue with the taxes. The tax rate is down right ridiculous, though.

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