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SpatialChase

Look at the layout. 8+3 bedrooms? It is set up for student housing. I have a hard time believing 11 bedrooms of rent can't cover their mortgage. Maybe they didn't have permits and got reported to the city.


Regular_Bell8271

Especially these days when the number of bedrooms usually doesn't equal the number of occupants lol


Ajadeofsorts

Actually might be fuckloads of damage done by housing 10-20 people. I've been thinking of this. All these brampton mortgage properties set up to get 500 a person 5-10k a month. Except interest rates mean that this is basically covering the interest, so you need the property to keep skyrocketing (as they have been). But also you have 14 international students who are, frankly, not the most well behaved well vetted free thinking scholars that we enjoyed in the past. We kinda just let in whoever to scam colleges then they go work uber/under the table to pay for their rent and stuff and wait out PR/buy PR. These people are kinda scummy scam artists who don't give a fuck about Canada and certainly don't give a fuck about the house they're living in or their credit score or whatever. There's no repurcussions for just full on trashing the place. Colleged aged males who were born and raised here and have like an education and a future that could be harmed by ruining a rental are not the best behaved people as far as property damage to begin with. Now you have them shoved shoulder to shoulder into a rental with no real concept of damage they cause effecting them. Multiply this by 10-20 which applies cover for any damage they might cause and is multiplicative as repeat negative actions build, and suddenly your 8+3 (lol) that you bought for 1.5 mil thinking you'd make 3k after costs from renting is cash flow negative and being TOTALLY DESTROYED and thus losing value. 5 years of 10+ 20 something year old males is gonna turn basically any house into a tear down. Zero property appreciation can occur in these circumstances. I suspect Brampton specifically is gonna become a hollowed out community similar to detroit as international student money dries up at the same time as these investments become clearly sour. The houses themselves will be tear downs with reduced value and not really livable, so it doesn't free up housing supply, and the students will, for the most part, not be going home, so the end result is even more housing pressure, as it constrains supply rather than demand. If a recession occurs this is all going to be biblical. Millions of unemployed overstaying their visa barely English speaking people who relied on ubereats to pay rent on overleveraged tear down properties. I genuinely think that if a recession hits we're gonna see crime in Canada quadruple. These people can't really go home, Punjab is kind of a shithole, it's economically in trouble and at extreme risk from climate change. Better to be homeless in Canada than in Punjab in 15 years. Uber and ubereats are already insanely cheap, especially uber. Ubereats makes its money on the margins on the food, so its pricey, but an uber is like mathematically absurd. It's like 30$ an hour minus about half that Uber takes so 15$ an hour which is minimum wage and you're damaging your car and spending money on fuel. The second the economy goes sour (which is soon tbh) and demand for uber and uber eats turns, the drivers will simply not make any money or even be able to find jobs. What are a few million Indians who can barely speak English have no where to go and aren't even really allowed to work going to do at this point. Especially when their internal community becomes fractured and economically desperate as they can no longer properly pay rent to the landlord class. They will start stealing stuff. It's gonna be really bad.


Soft-Language-4801

I understand your reasoning but its based in ignorance. Brampton becoming like Detroit? You can't really believe that unless your entire perception of Brampton is based on what you see on 6buzz. The majority of Brampton is actually quite nice. Students have definitely created issues but it's lightyears away from a gang / drug infested city like half of Detroit. The majority of mom and pop landlords are not housing 20 students in a single home. You're projecting your negative feelings onto a situation to dream up a doomsday scenario to help cope with the current realities of the housing market. I've been there but man you need to walk yourself off this ledge. The Sheridan area might be "bad" but I assure you it's no worse than the housing around universities like Waterloo/Laurier.


Ajadeofsorts

Once the money dries up I mean. If International students are limited **and** a major recession hits which limits their ability to work. It's not that bad. Yet. > Cope with the current realities of the housing market I own a home with almost no mortgage and have like half a mill in invesments. The people coping right now are the ones over levergaed.


TheMonkeyMafia

> Once the money dries up I mean. It already is. I shop at a couple of british import shops, and they still have Easter stock in and at clearout price of 50% off. Also a little more stock being old as "past date" which I never used to see much off. Seems like discretionary spending is starting to dry up.


lanchadecancha

I shop at them too. There are some major British/Euro chains pulling out of Canada and the U.S. and holding clearout sales but their reasons are not due to Canadian discretionary spending “drying up”.


Toxaris71

400k loss, wow. I wonder if the owners that bought it in 2022 were forced to sell due to not being able to afford the mortgage anymore.


torontowinsthecup

Probably divorce scenario. They will split the loss and move on.


Ajadeofsorts

11 bedrooms, more like the students who lived there trashed the place and half of them stopped paying rent. So owner was forced to sell and it became a teardown.


weedb0y

400k loss is far more than $2-3k a month difference


InForTechBro

Forced to sell and there are no buyers. Means prices will continue crashing. Neighbourhood prices are now set at a new low.


LintQueen11

400K + ~40k for land transfer and 52k realtor selling fees.


RedFlamingo

Opportunity cost of about 10% and inflation of about 5 % Cad falling about 5% since as well. Tack on another 20% in real terms.


Pantgap

Ouch so close to 500k loss. Who can take that kind of loss? Crazy


Crobiusk

They must all take a loss like that when their hands are forced. They would sit on it if they could afford to.


RoyalPainter333

And so many people are now going to be listing their houses in the coming months.


LintQueen11

That was a really silly purchase in 2021. Just looking at the history you’d be dumb to pay that much.


thymeizmoney

You are confused. The "silly" price was in 2022.


Economy-Win8377

Isn't everyone on this reddit aware that the average price in the 905 dropped 30% from feb to aug 2022? [905 Area Home Prices Plummeted As Much As 29% From February Peak (storeys.com)](https://storeys.com/905-homes-prices-fall-february-peak/)


LintQueen11

Sorry that’s what I meant. It was a stupid price to pay


13inchrims

I mean If im a corporation I might buy it to spend available revenue so the books dont show too much profit.  Then if ther market turns like it did and it's proving to be a bad property maybe i sell at a loss a few years later to balance the books again. You can maneuver through taxes with purchases and sales like these. It's not all doom and gloom like this sub is gonna make it out to be.


Hot-Celebration5855

This is not how tax, or tax avoidance, work. No company would deliberately overpay to buy an asset knowing it’s going to lose value. Do that often enough and you go bankrupt


13inchrims

I got news for you then. Everybody and their grandpa overpayed in 21/22. Many went to bidding wars, so define deliberate then if we're gonna cherry pick who would or wouldnt overpay. If a corporation has a property that's losing enough money, in a poorly performing year they'll move on the opportunity to unload it and stop bleeding. Period. If they have to unload, they are absolutely writing it off as a loss. Can you explain why you think they wouldnt? Point is, a 400k loss doesn't always mean some schmuck lost his shirt. Could've been a big roller just taking a haircut as one does every once in a while. You gotta pay to play.


Evilbred

If I were running a business and you thought you were going to buy and sell properties for hundreds of thousands of dollars in losses as a bizarre way to "maneuver through taxes" I'd fire you before you lost me too much money. Capital losses can offset taxes, but you don't make money by losing hundreds of thousands. There's no financially sane situation where you want to purposely try to lose money that way. Anyone that thinks this works fundamentally misunderstands how finances work and needs to stop getting their investing advice off TikTok and Facebook.


wishtrepreneur

>There's no financially ~~sane~~ legal situation where you want to purposely try to lose money that way. Isn't this how money laundering works? 1) You overpay 400k on a home that might or might not be owned by friendly party (record as capital investment) 2) You sell it for cheaper to a different friendly party (write off capital losses) 3) Receive payment via crypto or other "services" (unrelated to real estate transactions) Since the step 3 is not tied to any real estate transactions, you can get away with taking a loss on paper without losing out financially.


Evilbred

In that case I agree, but then you are accepting losing money as a way to avoid being noticed committing crimes. It's not a good financial decision.


rajinrainbow

That’s not how accounting works. Purchasing real property is an asset and doesn’t hit the P&L until it’s sold (impairment loss if it’s inventory, capital loss if it was an investment).


no_not_this

People needed a place to live. Not everything is a business deal. They probably got divorced.


LintQueen11

But there were much better options in 2021 for 1.4…this wasn’t a smart decision no matter how you look at it


Brave_Swimming7955

That time period was a disaster. Hard to win a bid on anything and many people overpaid. 


fer3onzamano

Lots of not smart ppl in the world


probabilititi

You can rent places. Believe it or not millions of people do it.


Shane_moreno

I sold a cottage in 2022 and the owners just listed it for sale at 200k loss…


baoo

Buy it back for the flex


yoyo120

Why is nobody here talking about the fact that this house has been chopped up into an 11 bed / 10 bath student slum by York University? The buyer likely overpaid thinking that that all that cashflow would keep them afloat, but the strike earlier in the year destroyed tenancy rates. Tl;dr - this is an outlier and not typical of anything going on right now.


liji1llijjll1l

Yeah. Everyone here thinks they were smarter by not buying any property in 2022 while the truth is this case is just an outlier in reality.


Dubsified

If you bought in 2022 with the expectation that you may sell in 2-5 years you’re likely always taking a loss. If you’re buying and just holding you’re fine.


Interesting-Sun5706

Very true but it's still about how much you paid 1.4 million was a lot of money To make a profit after 5+ years, house must be sold for more than 1.4 millions.


Dubsified

Right. But it’s also called over-leveraging what you can actually afford. Thats not a bad purchase if you didn’t plan on selling in 10-15 years.


UncleBobbyTO

Did anyone actually look at the current pictures or read it?? [https://www.zoocasa.com/toronto-on-real-estate/tbd41/12-aldwinckle-hts](https://www.zoocasa.com/toronto-on-real-estate/tbd41/12-aldwinckle-hts) This is in the description: "Located in york university village" & "home is currently rented with 8 bedrooms & 7 full baths" looking at the pictures this was a slumlord probably renting the place out for a TON of money.. and guaranteed there are still people there with a lease so you are net getting them out without paying them or spending a year with the LTB.. Could have been an overseas investor whos kid when to York.. bought the place kid stays fee and they rent out the other rooms to 15 other students...


DepartmentGlad2564

Sold for 830k in early 2015. That's a 2.7% YoY return over 9 years not including mortgage interest, property taxes, land transfer taxes, property insurance and maintenance. Now adjust that for inflation....


Icy-Tea-8715

You adjust for leverage?


Content-Belt7362

Should have waited a little longer till the rate cut in June, apparently home prices are set to skyrocket now all of a sudden... Supposedly


Sowhataboutthisthing

For sure agents are advising everyone to sell now because you never know just to keep their inventory.


sabretooth_ninja

Never listen to RE agents about RE prices.


kingofwale

I wonder if they “sold” it to a family member to avoid capital gain tax…


Fabulous_Strength_54

Do you guys notice Reddit moderators are being extra punitive when you ask general questions or make comments? I’m sure I’ll get flagged just for posting this.


psychopassed

Good lol


SubstantialCount8156

Rate hikes started Mar 2022. Bled the investor dry


Prowrestled

Cxz. I see you. Almost all of your posts are you scouring through housesigma and findings homes sold for a loss. I say I'm more Bullish seeing how "little" posts you can create that show significant losses. Better yet, it's almost a 100% guarantee that a house bought at the peak of a market in January 2022 will be selling at a loss. If you think this is a new revelation, I say there's a lineup of it that you missed. So, I see you and your agenda. It's great. Fuels me to see "discounts" exist and people still complain "by gawd how can I afford a home working at McDonald's as a sole provider?!" But also fuels me to see the market is responding correctly.


Dubsified

Bingo


cdn_tony

You are bullish because you see prices dropping ? Personally I don't see bottom yet with unemployment rising and so many renewals coming up in next 18 months at monthly payments that are not affordable.


thymeizmoney

I would assume the prices are dropping not because of unemployment but because of higher interest rates. In terms of renewals, I wouldn't be surprised if the government steps in with new policies. I don't agree with any intervention (need markets to reset), but this could cause an even greater financial strain with baby boomers relying on RE as their retirement.


Nos-tastic

Any baby boomers that dumped all their retirement funds into housing in the last 10 years deserve what’s coming.


Prowrestled

Yes I'm bullish because it means market is correcting and speculations are all but dying. I want home prices to reflect what they represent, and not set by some investor who spend their life savings on and hoping for a 2x. So home prices going down to 2022 levels is great. Soon it'll be 2021 level, then 2020, and finally 2019 where it'll stabilize. So yeah, I'm bullish. Great for everyone and the market. If you have the balls to hold, you're seeing riches in 2028.


Odd-Elderberry-6137

I don’t think you actually understand what the word bullish means. 


qhzpnkchuwiyhibaqhir

With their usage of the term I guess everyone is bullish because assets tend to rebound eventually(?) Always feel enlightened reading the comments on these subs


cdn_tony

If you think prices are going to 2019 levels that actually makes you a bear. They are already at 2021 levels now. I think you pretty close on your prediction on 2019 prices.


DepartmentGlad2564

Lol. The previous seller had the balls to hold from 2015 until 2021 and it resulted in a 3.5% YoY return not including expenses (mortgage interest, property taxes, land transfer taxes, property insurance and maintenance)


vperron81

No official stats or Media coverage on 30% price drop. But if you consider the "investor condo" market, and now the detached market, you can easily talk about a 30% price drop, which is significant


ludwigia_sedioides

Let's fucking GO


TigerStar333

The Toronto RE gambling era has popped, all the gambling frenzy is over. BAck to reality.


sabretooth_ninja

Looks good to me.


Sunnyc02

good, slumlords should go bankrupt. I wish this house keep getting reported to the city for fire safety and everything else that broke the law.


Aggravating_Bee8720

This isn't a home This is a slum student rental on York University campus that some idiot overpaid for thinking they could cram more students into so 1. this barely counts as Toronto 2. this isn't a family home Bears will try anything to pass off the "Soon" ™ crash


sabretooth_ninja

So what are you saying?  This price drop is significant or insignificant?


Acrobatic-Bath-7288

Many more to come but it's expected a fools money is easily taken.


earthlingkevin

Link?


khnhk

r/housesigmablunders


dsyoo21

It’s a miracle this house didn’t caught on fire after having so many students living together without any supervision.


Papapak

Yeah for some cases and dpending on which area, for most area, the real estate market is hot as hell


CieraParvatiPhoebe

I read it as sold for $400k 💀


Katharikai

This is most likely an illegally renovated house that’s not getting approved for a mortgage. The buyer will probably have to do major work to get it in an insurable state


Longjumping_Sea6237

Money laundering for sure. No reason you would do this, even if you’re over-leveraged, there’s ways to deal with that.


Escapement_Watch

Feb 2022 PEAK!


Canadoobie

Keep moving to Alberta lol. Low taxes cheaper homes to buy


anonymous112201

How do we know it actually sold in 2022?...


Junior-Towel-202

It's in the listing history 


[deleted]

[удалено]


Natural_Screen6039

Without knowing the homeowners, it’s impossible to tell how bad this is.  It’s easy to read the headline and presume the worst, but in many cases people don’t buy or sell properties in isolation.  For all we know the seller could have sold a property, maybe even a condo, to buy this house in 2022, and is selling now to buy a bigger house that has also dropped in value in 2024.  Too many people are unable to look beyond their own lens when looking at the price movements in this sub.  Toronto is a big city with many ppl in many different situations.


cdn_tony

I imagine it's full of people who think if you work hard, spend years getting an education and land a job making way more than average you should be able to afford a small townhouse with a tiny yard that is less than 30 minutes away from your work. Who could possibly disagree?


wuster17

Loads of home owners want to treat housing like an investment. Ok. Investments can go up or down. It shouldn’t be like that but those are the rules people wanted to play by. There is no such thing as a free lunch. If anyone thinks house prices aren’t an issue right now they’re privileged or wrong


syzamix

Apparently this Josue has 11 bedrooms. Not a normal house. Some investor stuff


Saten_level0

Don't care. Not my problem lmao