Canada's 'housing bubble' deemed close to bursting

[rofina]

Originally Posted by jamincan

I think it's less a concern of bankruptcy in retirement as it is slightly less enormous gains than otherwise. If they are going bankrupt from a housing correction, they were probably overleveraged in the first place.

I don't disagree at all.

But there are principles in matters, and there are realities of our situation, and unfortunately the two don't really line up at the moment.

I imagine there is a lot of Boomers in retirement with multiple mortgages, I think bankruptcy was an exaggeration on my part.

But if these folks lose 50% of their retirement fund, better believe they will seek to make up that shortfall another way, and only way I can think that ever happens in this country is government intervention and tax payers on the hook.

[SignalHillHiker]

At the risk of Lio laughing at me, sharing this here in case it’s news to any of ye.

Just got approved for my mortgage on the new house. My payment will be $319 every two weeks.

Here’s what’s news to me: just by switching to biweekly payments instead of monthly, my new 20-year mortgage drops to around 17 years because each one has two months with three biweekly payments.

Love it.

[WarrenC12]

Originally Posted by SignalHillHiker

At the risk of Lio laughing at me, sharing this here in case it’s news to any of ye.

Just got approved for my mortgage on the new house. My payment will be $319 every two weeks.

Here’s what’s news to me: just by switching to biweekly payments instead of monthly, my new 20-year mortgage drops to around 17 years because each one has two months with three biweekly payments.

Love it.

Congrats. Biweekly is perfect if it aligns with your paydays, I do the same.

[drew]

^ going weekly is even better

[SignalHillHiker]

Ooh nice. I can’t personally. I can’t be trusted to have payments automatically coming out unless it’s payday lol

[rofina]

Originally Posted by SignalHillHiker

At the risk of Lio laughing at me, sharing this here in case it’s news to any of ye.

Just got approved for my mortgage on the new house. My payment will be $319 every two weeks.

Here’s what’s news to me: just by switching to biweekly payments instead of monthly, my new 20-year mortgage drops to around 17 years because each one has two months with three biweekly payments.

Love it.

And that $638 payment is on a 20 year, amortization, that's amazing.

My friends pay marginally less than you on just their monthly strata fee on their townhouse...

[Innsertnamehere]

Yup, very jealous of that payment. lets just say that mine is a... fair bit more. Oh the joys of living in Ontario.

[SignalHillHiker]

Ugh. There was a condo here I loved with monthly fees of $500. No amenities. Brutal. Most are $300-$400 here and include only exterior maintenance.

Yeah mortgage is actually less than I was paying on my last home You can get great deals here if you’re not afraid of the downtown rowhouses. We get hit on insurance pretty hard (none of the reputable companies will look at DT St. John’s, you need to go to some random one based in Mauritius or something lol).

But overall still very very affordable, especially compared to the busy parts of Canada/US.

[rbt]

Originally Posted by SignalHillHiker

Here’s what’s news to me: just by switching to biweekly payments instead of monthly, my new 20-year mortgage drops to around 17 years because each one has two months with three biweekly payments.

Yep. Small principal payments early on make a big difference as only a tiny portion of your payment goes toward the principal at the beginning.

If you can make a single $1500 principal prepayment during the first year (and only the first year), it'll be closer to a 15 year mortgage.

[rofina]

Originally Posted by SignalHillHiker

Ugh. There was a condo here I loved with monthly fees of $500. No amenities. Brutal. Most are $300-$400 here and include only exterior maintenance.

Yeah mortgage is actually less than I was paying on my last home You can get great deals here if you’re not afraid of the downtown rowhouses. We get hit on insurance pretty hard (none of the reputable companies will look at DT St. John’s, you need to go to some random one based in Mauritius or something lol).

But overall still very very affordable, especially compared to the busy parts of Canada/US.

Congrats!

I love the look of row houses, and your backyard looks brilliant.

[SignalHillHiker]

So, the plan…

I’m paying $169,000 with a chunky down payment from my previous home and living with my parents for three months.

For the exterior…



I’m doing white trim, fuchsia walls, and a turquoise door. I’ll power wash the step and leave it natural wood-colour.

For the main hallway…



I’m not changing a thing except eventually adding a larger, interesting light fixture.

For the living room…



I’m doing something similar to this. My walls will be a bit brighter turquoise and I won’t have any rug:



For the adjacent kitchen, I’m doing b/w checkerboard floors, I know it’s old but it’s my fave…



And the cabinets I’ll do a nice orange and add an eccentric tile backsplash (or maybe bronze traditional tiles):



For the office…



I want hot pink furniture with maybe a statement wallpaper…



And for the bedroom…



I want eggplant (in many ways lol)



Bathroom is already tiled so I’ll just paint the upper half of the wall the loudest blue that matches a shade in the tiles in the shower.



So excited. Genuinely love this house. And SO SMALL and manageable compared to my last. It’s less than 1,000 sq.ft. total.

[kwoldtimer]

Originally Posted by SignalHillHiker

At the risk of Lio laughing at me, sharing this here in case it’s news to any of ye.

Just got approved for my mortgage on the new house. My payment will be $319 every two weeks.

Here’s what’s news to me: just by switching to biweekly payments instead of monthly, my new 20-year mortgage drops to around 17 years because each one has two months with three biweekly payments.

Love it.

You are also usually allowed to make an annual additional payment of up to 10% of the outstanding value of the mortgage. Do that and you'll pay the thing off even faster.

Given your description of the neighbourhood, have you taken into consideration the opportunity/risk wrt increases in the value of the house over time?

[SignalHillHiker]

No. I’m settled now. I’m good with this one until I’m no longer the one who gets to decide where I live.

[rofina]

Love that house! Totally a property I would be looking at! Congrats again!

[Architype]

^ Congrats on the new house, a much more upscale version of the old one, even with painted siding.

[SignalHillHiker]

Thanks! Hardwood floors instead of softwood, and on BOTH floors? A proper staircase with wood railing instead of a… drywall divider… crown moulding throughout!? Who am I lol

The floors even go THE WHOLE WAY to the walls. I feel like an imposter lol

[Architype]

The aspirational photos show nice improvements, but I've never figured out Nflder's disdain for rugs. Over here it's just not finished without a rug on the floor.

[SignalHillHiker]

It just feels dirty. It’s like my mother thinking a sign of poverty is a tree in FRONT of your house instead of only behind. Don’t try to make sense of it.

As the Dowager Countess said, “If I were to search for logic, I would not look for it among the English upper class.”

Just replace English with Newfoundland, and upper with Middle-on-a-good-day lol

[Architype]

In the real olden days people only had "canvas" on their floors, usually a built up number of layers from previous years and decades. Prior to that soft wood floors were painted or maybe bare. Only the rich had rugs because the heating was better and less damp. Hardwood floors were also a luxury rarely seen.

Anyway the price for the house seems like an amazing deal, I've heard that the real estate market there was going crazy, but that doesn't seem crazy.

[yaletown_fella]

Originally Posted by Truenorth00

R

There's more. Here's a Toronto NIMBY running a gofundme to fight a seven-plex:

https://ca.gofundme.com/f/save-225-brunswick-avenue

Among many elements of a housing crisis.

This is one of the few times I agree with the NIMBY.

It could be my bias because I grew up in the area and feel it's important to preserve our Jewish heritage. Much like The Ward, it was a thriving epicenter until the community shifted north to Bathurst/Lawrence, Bathurst/Sheppard and at one point York Mills to Parkwoods later in the 20th century.

I think if I hypothetically lived in this area, I could meetup for coffee with this NIMBY who put together this fundraiser, and we could come to an agreement that we (as a community and council representives) agree to defend important heritage sites in Harbord Village, but this would come in exchange for automatically greenlighting all laneway unit permits that meet pre-set requirements.

For example, the laneway behind this former shul and basement could fit at least 5 units.

As far as addressing the housing crisis, I think it'd be more efficient to sell off prime TCHC downtown real estate to private developers and then use these funds to build new affordable and/or modular housing in new mixed income developments on the fringes of the city for cheaper. Speaking on behalf of others, I dont think most people who want affordable housing expect to be in prime locations. In the future, if I could somehow qualify for a reduced rent brand new subsidized $900 apartment with a balcony , Id be more than happy to commute everyday from the West Mall and Burnhamthorpe in Etobicoke or even Malton for such a great deal.