Anyone here flip pre-construction homes ?
Locked: Housing Market is HOT!
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- Apr 23rd, 2014 8:36 pm
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- LAPrince
- Sr. Member
- Aug 20, 2011
- 699 posts
- 34 upvotes
- Markham
- LAPrince
- Sr. Member
- Aug 20, 2011
- 699 posts
- 34 upvotes
- Markham
If it were me I'd refinance it and put it as a down into another investment propety, my personal opinion thoJayLove06 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.
- EugW
- Deal Expert
- Mar 23, 2009
- 22529 posts
- 8939 upvotes
- Toronto
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.
- LAPrince
- Sr. Member
- Aug 20, 2011
- 699 posts
- 34 upvotes
- Markham
- Anikiri
- Deal Guru
- May 1, 2012
- 10538 posts
- 11427 upvotes
- Toronto
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.
- kashirin
- Sr. Member
- Jan 30, 2006
- 870 posts
- 303 upvotes
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 incomeAnikiri 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.
- at1212b [OP]
- Deal Guru
- Mar 31, 2008
- 13011 posts
- 3095 upvotes
- Toronto
- Anikiri
- Deal Guru
- May 1, 2012
- 10538 posts
- 11427 upvotes
- Toronto
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.
- divx
- Deal Expert
- Oct 26, 2003
- 39342 posts
- 6342 upvotes
- Winnipeg
- civ@uw
- Deal Addict
- Jul 18, 2005
- 1760 posts
- 171 upvotes
The high price of real estate near these schools owes more to the fact they're situated near major transportation arteries.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.
- bankonit
- Sr. Member
- Feb 5, 2013
- 592 posts
- 109 upvotes
- Anikiri
- Deal Guru
- May 1, 2012
- 10538 posts
- 11427 upvotes
- Toronto
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.
- divx
- Deal Expert
- Oct 26, 2003
- 39342 posts
- 6342 upvotes
- Winnipeg
- kashirin
- Sr. Member
- Jan 30, 2006
- 870 posts
- 303 upvotes
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
- Deal Addict
- Jul 18, 2005
- 1760 posts
- 171 upvotes
vanikiri 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.
- bankonit
- Sr. Member
- Feb 5, 2013
- 592 posts
- 109 upvotes
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.
- Jor
- Sr. Member
- Feb 11, 2010
- 502 posts
- 262 upvotes
- divx
- Deal Expert
- Oct 26, 2003
- 39342 posts
- 6342 upvotes
- Winnipeg
leave the asians to focus on their academic, everyone else can feel free to do whatever they want, play hockey for instance
- bankonit
- Sr. Member
- Feb 5, 2013
- 592 posts
- 109 upvotes
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.
- JayLove06
- Deal Expert
- Feb 29, 2008
- 21738 posts
- 21353 upvotes
- Tarrana & The Ri…
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.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.
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