Dearest gentlemen, my loyal readers- thanks once again to all of you who personally complimented me on my blog! You are sweet for it and smart for being who you are- thirsty for knowledge and keeping your finger on the pulse of what is going on around us! I was going to write on an interesting topic related to dating, friendships and every other human relationship, but holy moly I stumbled upon a very, very interesting Canadian real estate channel with topics that relate to USA as well. I had to share a few videos right here because they really caught my eye and I will also include some key points from each video for you to check out if you do not have time to listen through it all. Once again, video embedding on Weebly is a hit or miss so I will include links as well.
What I like about the channel so far is that it is a conversation between a younger and an older real estate guy, there is some sober speculation, a no nonsense approach and a healthy balance of data and non-outlandish opinions.
Without further ado...
Toronto Airbnb Loophole: How Short Term Rental Property Owners are Evading the Bylaw to Make Money
What I like about the channel so far is that it is a conversation between a younger and an older real estate guy, there is some sober speculation, a no nonsense approach and a healthy balance of data and non-outlandish opinions.
Without further ado...
Toronto Airbnb Loophole: How Short Term Rental Property Owners are Evading the Bylaw to Make Money
Key points:
Pre-Construction Buyer Loses $81,990 Deposit - Can't Sell Home, Can't Secure Financing, Can't Assign
- Companies are advising property owners on ways to circumvent municipal bylaws for short-term rentals.
- Some property owners manipulate information, such as falsifying addresses on licenses, to bypass regulations.
Pre-Construction Buyer Loses $81,990 Deposit - Can't Sell Home, Can't Secure Financing, Can't Assign
- A BC man named lost his $81,990 deposit on a pre-construction townhouse due to the inability to sell his home in India, which he planned to use to fund the purchase.
- Despite a contract option allowing assignment, the builder did not unreasonably deny it, but the prospective buyer couldn't secure financing, leaving Seal unable to close the deal.
- The commentary suggests skepticism when buyers claim they will sell a property abroad to fund their purchase, emphasizing the differences in property standards and registration systems between countries.
- The discussion also touches on the changing dynamics of pre-construction investments, highlighting increased scrutiny, changes in tax regulations, and the importance of considering resale market prices for comparison.
How Will the Toronto Real Estate Market Perform in 2024? Looking Back at 2023 and Forecasting 2024
- Interest rates are described as stabilized, with the expectation of a potential 2% reduction in mortgage rates during 2024.
- The hosts suggest that the market is transitioning from a significant downturn to a more stable period, emphasizing a slow and steady increase.
- The hosts anticipate a gradual upward trend in the market, comparing it to the concept that "flat is the new up."
Failed Airbnb Micro Unit Owners in Victoria British Columbia Try to Sell... But Nobody is Buying
- Changes in short-term rental regulations, particularly in Vancouver, now restrict such rentals to principal residences, excluding micro units.
- The video emphasizes the importance of understanding the risks and regulations associated with short-term rentals, cautioning viewers about the potential pitfalls of investing in ventures that may seem too good to be true.
You know what the most interesting thing is about this? The fact that these two people discuss the true extent of risk with regards to speculative real estate. In 2023, many of us got used to the idea of bailouts, forgiveness, and oh someone or something may show us mercy. However, there is true risk out there and worst case scenarios are way, way more common than we have been lead to believe! Yes, you can lose an entire downpayment on pre-construction homes. Yes, you can buy a micro unit and the laws change, then you may end up upside down on it. No if's, and's or but's. So, what does this mean? Does this mean that if you have 8 million in the bank and you risk 80K on preconstruction, something goes wrong and you lose it, you lost a lot but you still have almost 8 million? Yes. Is that acceptable risk? Acceptable no, tolerable- yes. However, if all that two generations of a family have is that money and nothing else, the risk level is insane and totally unacceptable! Yes, it hurts. it hurts that if all you have is $1,000 to spare, you would need to, like, run it through the stock market with 100 percent gains compounded 7 times and you still would not get to 1 million in the bank (but you would be over 800K total). It also hurts to know that someone fortunate enough to have 1 million in a managed portfolio returning some 10 percent per year can still live an OK middle class life in many parts of North America (or very, very well in Bangkok or Kuala Lumpur) and not have to work at all. That still does not mean it is excusable to take insane risks with money just because, at a moderate risk level, you may not reach the right level even by the time you retire. I actually know people who ignored this and trust me, you do not want to personally experience it.
If you are a real estate person, I hope you found this useful, interesting or at least lovely. :) Reach out with comments if you like.
Until next time, Mwah!