Canada's 'housing bubble' deemed close to bursting - Page 606

SignalHillHiker · #**12101** Posted **Apr 30, 2021, 5:51 PM**

Quote:

Originally Posted by urbandreamer

Why not keep the house for another 20 years?

Prices in this neighbourhood aren’t likely to increase much over the next 20 years. But my reasons for going now:

- There is a strong mental divide between my home and downtown because I am at the top of a short but very steep hill. My buddy jeddy1989 lives like two city blocks away but at the bottom of that hill. Doing anything feels fine at his house. But everything - for example, coming home from a few drinks downtown - whereas returning to his place feels like just walking around the back of the patio, mine feels like another part of town.
- It’s too much house. It has three rooms I never set foot inside.
- It would cost about $25K to reclad it and make it the type of house I want. I won’t love long enough to recoup that value in this neighbourhood.
- I’m over the neighbourhood. Slumming it is fine and I genuinely feel at home here, but I miss the old women who wear men’s underwear on their head while baking, and want THAT to be the flavour on my street again, as opposed to the violence and vulgarity here.
- I’m sick of having off-street parking across the street from me. Feels like I’m in the middle of nowhere. I want rowhouses directly across.

I want a smaller rowhouse somewhere in the Downtown East End. My tastes are pretty affordable (I hate, for example, kitchens with dark wood cabinets and marble countertops. It’s so generic for me). I want 🞵🞵🞵🞵 like this, which is cheaper:

urbandreamer · #**12102** Posted **Apr 30, 2021, 5:52 PM**

If immigration ever increases in St John's (probably) homes like this will rise in value. I can think of Vine Avenue in the Junction being comparable to your situation. Up until 5 year's ago Vine Avenue was where the poor folks lived - or at least working class people who saved money for a home. I know someone who bought a home on Vine 20 year's ago for $150k now they're going for $1 million plus. Yet the heavy rail traffic continues across the street, Dundas and Keele still attract the homeless/sketchy people at night, petty crime is high (eg meth heads smash car windows every few months for spare change); although there's now a nice organic grocery store and several new townhouse/condo projects along the strip.

I get it that the parking lot across the street isn't exactly beautiful; however 3 empty rooms?! I'd rent out a few to students or fill them with books and art.

A kitchen renovation can be done very affordably with a bit of paint, imagination and a few weekends of hard work. (Stay away from Home Depot.)

SignalHillHiker · #**12103** Posted **Apr 30, 2021, 7:05 PM**

All fair. We had a similar change in Buckmaster’s Circle, which was built to house people displaced by the razing of the Central Slum. Horrible reputation, genuinely dangerous for a few years. Now it’s mostly immigrants, immaculately clean. Lovely area.

I did the renting out rooms thing for a while. I had jeddy1989 for a few years, an old college buddy for like 5 years, and a few years of several MUN students. I just... I’m almost 40 now. I have a great income by local standards. I don’t need to do that anymore. And I don’t want to do. I’m over being the party house. But I also don’t want the empty space weighing on me.

travis3000 · #**12104** Posted **Apr 30, 2021, 10:16 PM**

I can tell you this, I've been in real estate for 11 years now and I've never seen more people selling their Ontario homes and moving out east. Our team alone has dealt with over 12 accounts since COVID of sellers cashing out here and moving to PEI, Newfoundland, Nova Scotia and New Brunswick. All of them are now mortgage free. It isn't just an anomaly either. From speaking with colleagues both in my company and in others, they are seeing the same things.

So it certainly wouldn't surprise me if the Atlantic Provinces see a little population boom for 2020/2021.

SignalHillHiker · #**12105** Posted **Apr 30, 2021, 10:19 PM**

All of the moving companies based in NL have been saying they’re moving people back here more than they’re moving them west, which is an inverse of their normal operations. They’ve been saying that since last summer. We’ll still be down a bit I’m sure but not as much as expected.

someone123 · #**12106** Posted **Apr 30, 2021, 10:33 PM**

Quote:

Originally Posted by travis3000

I can tell you this, I've been in real estate for 11 years now and I've never seen more people selling their Ontario homes and moving out east. Our team alone has dealt with over 12 accounts since COVID of sellers cashing out here and moving to PEI, Newfoundland, Nova Scotia and New Brunswick. All of them are now mortgage free. It isn't just an anomaly either. From speaking with colleagues both in my company and in others, they are seeing the same things.

I think Ontarians are going to "discover" Atlantic Canada more in the coming years. Remote work is a part of that but also the region had a reputation that was seriously out of whack with reality. Ontarians tend to think the Atlantic region is farther away than it is, more hinterland-y and less developed/urban/historic than it is, and has much worse weather than it does.

It is smaller and cannot really make a significant dent in affordability in Canada but it's still good to have another "mainstream" option for people to move to. Having good demographics and a good economy in Atlantic Canada is also good for Canadian pluralism.

SignalHillHiker · #**12107** Posted **May 11, 2021, 8:00 PM**

My house is sold! Home inspection was yesterday, just have to clear up a couple of electrical things but the lawyers are already closing. :-)

esquire · #**12108** Posted **May 11, 2021, 8:05 PM**

Quote:

Originally Posted by someone123

I think Ontarians are going to "discover" Atlantic Canada more in the coming years. Remote work is a part of that but also the region had a reputation that was seriously out of whack with reality. Ontarians tend to think the Atlantic region is farther away than it is, more hinterland-y and less developed/urban/historic than it is, and has much worse weather than it does.

It is smaller and cannot really make a significant dent in affordability in Canada but it's still good to have another "mainstream" option for people to move to. Having good demographics and a good economy in Atlantic Canada is also good for Canadian pluralism.

I can tell you in Manitoba that Atlantic Canada has a pretty good reputation. Halifax and St. John's in particular have a certain cachet... you wouldn't have to explain to people why on earth you're moving there the same way you would with, say, Prince Albert, SK.

I suspect what is holding otherwise interested people back from going there is lack of a job offer. I don't think many would want to move speculatively the way they might have to, say, Calgary circa 2005.

lio45 · #**12109** Posted **May 11, 2021, 8:14 PM**

Quote:

Originally Posted by SignalHillHiker

My house is sold! Home inspection was yesterday, just have to clear up a couple of electrical things but the lawyers are already closing. :-)

Congrats on losing money!

Maybe they can hire you to negotiate the next Churchill Falls contract (after 2040...?) with Hydro-Qc

SignalHillHiker · #**12110** Posted **May 11, 2021, 8:16 PM**

You make a lot of fun of me for someone who told me to buy it hahaha.

lio45 · #**12111** Posted **May 11, 2021, 8:21 PM**

Quote:

Originally Posted by SignalHillHiker

You make a lot of fun of me for someone who told me to buy it hahaha.

Hahaha, great point

though I'm not the one who told you to accept to sell it for so little. As discussed earlier, I feel really bad about this, you're my only "non-great real estate deal" ever.

BTW I only tease you because I like you so much

You're an awesome guy who I know can take it.

SignalHillHiker · #**12112** Posted **May 11, 2021, 8:28 PM**

Haha it’s all good! I actually don’t feel like I lost money. It’s only $10K difference in the sell purchase price and it’s not like I had it fully paid off. Once I cover what’s left on the mortgage and all the fees, I’m still walking away with at least $20K in the bank I wouldn’t’ even had if I’d’ve rented all that time, probably closer to $30K - I’ve no idea how expensive closing is lol

lio45 · #**12113** Posted **May 11, 2021, 8:34 PM**

Quote:

Originally Posted by SignalHillHiker

Haha it’s all good! I actually don’t feel like I lost money. It’s only $10K difference in the sell purchase price and it’s not like I had it fully paid off. Once I cover what’s left on the mortgage and all the fees, I’m still walking away with at least $20K in the bank I wouldn’t’ even had if I’d’ve rented all that time, probably closer to $30K - I’ve no idea how expensive closing is lol

You're the party paying for closing and you haven't shopped around / gotten quotes?!?

Okay, maybe you do deserve to lose money then

esquire · #**12114** Posted **May 11, 2021, 8:44 PM**

Quote:

Originally Posted by lio45

You're the party paying for closing and you haven't shopped around / gotten quotes?!?

Okay, maybe you do deserve to lose money then

How much do you think he's realistically going to save by shopping around on closing costs?

SignalHillHiker · #**12115** Posted **May 11, 2021, 8:46 PM**

Nope, went with the lawyer my real estate agent recommended - she said he's not the cheapest, but he's close - and very good, fast.

And I think we split the cost 50/50. There's definitely something we split 50/50 spelled out in the contract but I forget what it is.

esquire · #**12116** Posted **May 11, 2021, 8:53 PM**

Quote:

Originally Posted by SignalHillHiker

Nope, went with the lawyer my real estate agent recommended - she said he's not the cheapest, but he's close - and very good, fast.

And I think we split the cost 50/50. There's definitely something we split 50/50 spelled out in the contract but I forget what it is.

Look at the statement of closing costs. You will find that legal fees (the amount the lawyer actually pockets vs. disbursements and other charges) portion is quite small relative to the total bottom line amount. Going with someone who is good and gets it done properly (and your realtor would likely know this) takes precedence over finding the absolute most dirt cheap guy you're going to find... and in the end it won't make a huge difference in terms of overall costs anyway.

lio45 · #**12117** Posted **May 11, 2021, 8:59 PM**

Quote:

Originally Posted by esquire

How much do you think he's realistically going to save by shopping around on closing costs?

Maybe up to a few hundred, and the effort is minimal, i.e. a few calls.

SignalHillHiker · #**12118** Posted **May 11, 2021, 9:35 PM**

So, Now the fun part begins. My budget this time is $250K max, which is actually enough to get even better than what I want if I stick to the rowhouses.

This one is a good example. I won’t get it because it’s almost as far from downtown as I am now, isn’t attached on both sides, and has a garage I don’t need... but the interior is *Perfect*. Already my style and colours. So it can be had for the price I want to pay.

https://www.realtor.ca/real-estate/23147790/4-pennywell-road-stjohns

lio45 · #**12119** Posted **May 11, 2021, 9:40 PM**

I'm impressed at you guys' ability to build new stuff that integrates well with actual historic architecture. This was built in 2005:

https://www.realtor.ca/real-estate/23164208/79-casey-street-st-johns

Perfect, flawless infill!
(I'm fine with the garage.)

SignalHillHiker · #**12120** Posted **May 11, 2021, 9:45 PM**

This one was a dream. $189K but sold months ago before I was ready.

Second floor was one loft bedroom with walk-in closet including laundry and master bathroom. Just perfect for me. A lot of the houses downtown have their washer/dryer in the kitchen or bathroom. I’m hoping for bathroom. That feels the most correct to me. I hate them in the kitchen.