Real Estate

More bad press for Mattamy and new homes

  • Last Updated:
  • Feb 7th, 2018 1:01 pm
96 replies
Penalty Box
User avatar
Jul 11, 2008
4368 posts
1494 upvotes
Away from RFD idiots
Damn millenials!! So entitled.!!

Oh wait. is this generation X entitlement ? Or babyboomer entitlement?
..
[OP]
Deal Addict
Jul 3, 2007
3389 posts
3719 upvotes
Toronto
A bit of both... A lot of buyers from 2017 are about to learn a hard lesson in real estate bubbles and how ugly it can get when they burst....

The buyer in this article is down 100k and I'll bet its even worse by the closing date... If she can actually close that is... The appraisal will be a lot lower than what she bought for..
Deal Fanatic
May 31, 2007
5018 posts
2162 upvotes
Any official source on rates going up?
I suspected after bond yields have been surging.

Anyway the star article was posted in the houses that didn't close thread.
Deal Fanatic
May 31, 2007
5018 posts
2162 upvotes
joepipe wrote: A bit of both... A lot of buyers from 2017 are about to learn a hard lesson in real estate bubbles and how ugly it can get when they burst....

The buyer in this article is down 100k and I'll bet its even worse by the closing date... If she can actually close that is... The appraisal will be a lot lower than what she bought for..
Even worse she is maxed out and can't come up with 30k for additional deposit after matte,y offered price reduction. Then she had an Investmemt property sale that didn't close in April and had to take s 200k price reduction.
Deal Expert
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Aug 2, 2010
15193 posts
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Here 'n There
I love her comment, '“I wish I could walk away from it because it’s just too much money,” Thompson said.'

Duh, why didn't she think of that when she bought it? Would she be whining if it went up in price? Hardly. She should not expect to offload her foolishness on another party. No one forced her to buy the house.

Make your bed and sleep in it. Sheesh!
[OP]
Deal Addict
Jul 3, 2007
3389 posts
3719 upvotes
Toronto
This is what happens when the rainbows disappear and the pots of gold have dirt in them suddenly ...

[..]
Last edited by MrDisco on Feb 2nd, 2018 7:54 pm, edited 1 time in total.
Reason: stick to the topic at hand
Deal Guru
Feb 9, 2009
11259 posts
9750 upvotes
joepipe wrote: This is what happens when the rainbows disappear and the pots of gold have dirt in them suddenly ...

..
Sure cause we had 5-6 months of 20-25%+ increase at the end of 2016 to April 2017 and a year later we are roughly at 10% correction and we are sensing the end of times here? About 50% up since 2015?

The lady in that article is gonna be just fine after she sells her rental and her own house eventually.
[OP]
Deal Addict
Jul 3, 2007
3389 posts
3719 upvotes
Toronto
Correction is more like 25% from the peak on detached right now and getting worse with every rate hike and b20 rules...

50% from the peak is very do-able in the next few years...
Deal Fanatic
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Sep 8, 2007
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Way Out of GTA
She one of the same idiots mentioned in the CBC article.

Go figure the CBC and the Star first in with the hit pieces on the builders.
Deal Fanatic
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Jun 26, 2005
9999 posts
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Toronto
We should all prepay and plan for our funeral. Now when we are alive.

If the location is good, give it years price will go up regardless
Sr. Member
Oct 13, 2011
761 posts
491 upvotes
joepipe wrote: Correction is more like 25% from the peak on detached right now and getting worse with every rate hike and b20 rules...

50% from the peak is very do-able in the next few years...
I just can't see how. Housing is simply too integrated with the economy where the government or the Bank of Canada will want to see it crash. It will bring the entire economy down with it. What they are trying to do now with the monetary policy and the lending policy is to engineer a soft lending. If house prices slip too much, it is going to affect consumer spending, employment and ultimately the GDP growth. If that happens, BoC will be dropping rates to prop up the economy, which probably means a lower Canadian dollar and could translated into additional foreign investment.

Besides, Government of Canada owns CMHC, imagine the deficit that they have to run if they have to bail out CMHC. It will be very difficult to see the government not intervene if a crash happens.
Last edited by Rothesay on Feb 2nd, 2018 9:29 pm, edited 1 time in total.
Penalty Box
Aug 11, 2005
4175 posts
1427 upvotes
The sale of an investment property in April, for more than $900,000, did not close when the buyer backed out. She recently sold it for about $200,000 less than the deal that fell through.
LOL! i wonder if i posted that house already?
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Banned
Feb 23, 2009
1670 posts
1495 upvotes
Oshawa
Sanyo wrote: Sure cause we had 5-6 months of 20-25%+ increase at the end of 2016 to April 2017 and a year later we are roughly at 10% correction and we are sensing the end of times here? About 50% up since 2015?

The lady in that article is gonna be just fine after she sells her rental and her own house eventually.
RE Bull math...
She has a house sell at $900K and it doesn't close.
She sells it for $200K less.
That's 22% less...not 10%.
She's not doing "fine". She's in over her head and can't afford the house.
Deal Guru
Feb 9, 2009
11259 posts
9750 upvotes
pkrash wrote: RE Bull math...
She has a house sell at $900K and it doesn't close.
She sells it for $200K less.
That's 22% less...not 10%.
She's not doing "fine". She's in over her head and can't afford the house.
I guess she lives on the street then... cause she sold her investment property. So she still has her own house to sell so she'll be fine. She just sold the investment property (at $700k, so either she profited huge or she makes a lot of money to be able to afford a $700k+ investment property when she bought it) so she got cash out of it. I dont know what she does, her income, etc. All she said was she was (not is, was) unable to come up with more money to pay towards the deposit, so who knows after just selling the investment property if she got money now. Who knows what her pres res is worth. Article is very wishy-washy.
Banned
Aug 18, 2017
48 posts
14 upvotes
Why can't mattamy lower their prices by 100k to match phase 2? I know why! Greedy developers! They are trying to make an extra 100k over market price.
Deal Addict
Jul 14, 2002
2594 posts
1213 upvotes
i actually give mattamy kudos for providing "relief" to the clients. no other home builders are even willing to do so and don't even remember anyone else doing that.
if they didn't and were hard about it, even less people would be willing to deal with them in the future.
and even less people will also be willing to risk doing assignment sales. at least carr understands that this goodwill measure will help to calm the market and not cause any "landslides".
Member
Jan 15, 2017
311 posts
157 upvotes
Vancouver
dantey wrote: i actually give mattamy kudos for providing "relief" to the clients. no other home builders are even willing to do so and don't even remember anyone else doing that.
if they didn't and were hard about it, even less people would be willing to deal with them in the future.
and even less people will also be willing to risk doing assignment sales. at least carr understands that this goodwill measure will help to calm the market and not cause any "landslides".
definitely a nice gesture. too bad these people couldn't come up with even 30k, when they bought a 955k house... smh
Deal Addict
Jul 14, 2002
2594 posts
1213 upvotes
digger314 wrote: definitely a nice gesture. too bad these people couldn't come up with even 30k, when they bought a 955k house... smh
overextended. but i'm sure some will. i definitely would put that as priority instead of other "investment" avenues.
mattamy is essentially buying your commitment vs the chance you bail/can't finance at the closing and they have to run you through the wringer to squeeze every penny out.
similar to what banks will do when home assessments drop. but the banks won't be as nice about it.
Deal Fanatic
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Sep 8, 2007
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Way Out of GTA
starbucksguy wrote: Why can't mattamy lower their prices by 100k to match phase 2? I know why! Greedy developers! They are trying to make an extra 100k over market price.
Market price was $100k higher at the time. It was phase 1 buyers willing to buy at that price that made the prices that high. They sold out in 1 day FFS! Line ups, fights, cops had to manage the crowd.

When you buy a house do you think it's like Walmart with some price protection guarantee? With drywall and lumber costs up 7-10% this year should builders send a bill to the phase 1 buyers for that?

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