List for 759,000. Sold for 1,180,800. You must be joking....
invite response
2012 Mar 16, 9:12am 4,704 views 18 comments
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CrazyMan
2012 Mar 16, 10:01am
If you're surprised by this, you shouldn't be.
I'm SO glad I bought.
I'm glad you did too. I mean, it's only up from here amidointhisright?
This is incredible.
Just out of curiosity I googled the canadian mortgage market. As best as I understood (anyone who knows better please correct me), mortgages rates are typically "fixed" for a period of 5 years, and rates for doing this is at record low 3%. There is amortization on a 25 year schedule. Down payment requirements are 0%-10% depending on income and credit.
This could become very interesting when all the 3% loans have to be renewed 5 years from now at potenitally much higher rates...
This could become very interesting when all the 3% loans have to be renewed 5 years from now at potenitally much higher rates...
I think we will see "Cannibal Anarchy" when that happens.
This is what you heard during the US bubble, an certainly in Santa Clara County back 1998.
From the above article...
"If you want to live in central Toronto, you're going to have to live in a condo or be a millionaire. That's the reality. ... It's not a bad thing. It's the way cities evolve."
Publication Date: Wednesday, Sept. 20, 2000 & Friday, Sept. 22, 2000
Breaking into the market
Yes, Virginia, it is possible to buy a first home in this area--if you're willing to make compromises ... by Jocelyn Dong
So you're looking to buy your first home in Silicon Valley. How do you get into the market?
"Stock options," says real estate agent Chuck Atwell dryly. "Being a multi-millionaire."
http://www.paloaltoonline.com/news_features/real_estate/fall2000/2000_09_22.lowmarkt.php
Either way, then and now, its all the same... it came to be bubbles and prices do fall....
bmwman91
2012 Mar 16, 12:05pm
But but but crooked Chinese officials with Luis Vuitton luggage full of commie dragon gold!
Really, the OP's example is enough to make even Palo Alto blush. Considering all the cash that American has given to China, I am amazed that they haven't bought up entire cities in the USA and Canada. They are either really, REALLY dumb with their money, or they have enough that $1.2M is pocket change for this dumpy shack.
bubblesitter
2012 Mar 16, 12:21pm
Oh no! First the Chinese takes over BA and now Canada. What is the next stop for the Chinese after USA and Canada?
Does the Chinese buyer care if their credit rating in Canda is trashed when they decide to default on their loan or will it hurt the Candian banks more?
Eventually, the Canadian banks who made the bad loans will need to be bailed out by Canadian taxpayers, like what happened in the US.
RentingForHalfTheCost
2012 Mar 16, 12:38pm
This is incredible.
Just out of curiosity I googled the canadian mortgage market. As best as I understood (anyone who knows better please correct me), mortgages rates are typically "fixed" for a period of 5 years, and rates for doing this is at record low 3%. There is amortization on a 25 year schedule. Down payment requirements are 0%-10% depending on income and credit.
This could become very interesting when all the 3% loans have to be renewed 5 years from now at potenitally much higher rates...
Not sure where you got the 0-10% downpayment. Canada is pretty strike with the 20% rule. The PMI insurance up there matches the risk and is therefore very costly.
I agree thought (have multiple properties in Toronto) that the market is overdue for a major correction. I have two issues right now that I am managing.
1. When to pull the trigger and buy a place in the BA
2. When to pull the other trigger and sell in Toronto
They are totally different beasts. Both are influenced by foreign money though, they have that in common.
You are correct in that mostly all mortgages are refinanced every 5 years. It will be very interesting when interest rates start to rise for many people. Very interesting.
well the japanese bought up manhatten and pebble beach, which resulted in RE losses. Guess even the chinese will learn the hard way...
Does the Chinese buyer care if their credit rating in Canda is trashed when they decide to default on their loan or will it hurt the Candian banks more?
how does a Chinese citizen with no work, no income or tax history in Canada have or get a credit rating.. would you if you walked into Canada today ? They have nada.. zip ... nothing!!!
There is nothing of a credit history ... how could there be ?
rootvg
2012 Mar 16, 2:23pm
Does the Chinese buyer care if their credit rating in Canda is trashed when they decide to default on their loan or will it hurt the Candian banks more?
how does a Chinese citizen with no work, no income or tax history in Canada have or get a credit rating.. would you if you walked into Canada today ? They have nada.. zip ... nothing!!!
There is nothing of a credit history ... how could there be ?
It was a cash deal. No credit necessary.
rootvg
2012 Mar 16, 2:25pm
Smart money will not be found at this address.
They don't need to be smart. Their entire economy is built on slave labor.
Why do you think their society seems to collapse every couple of decades?
Why do you think our Fortune 500 were so slow to invest there?
rootvg
2012 Mar 16, 2:32pm
If you're surprised by this, you shouldn't be.
I'm SO glad I bought.
I'm glad you did too. I mean, it's only up from here amidointhisright?
You don't know what I bought or where it is and you don't know what I paid.
Four years ago, that house was ~$1.2M. I paid less than half of that...
...to live in Danville, for the same as I was paying in rent...
...AND I don't have to live in a shitty area, worrying about whether or not my car or home will be broken into.
CrazyMan
2012 Mar 16, 3:50pm
Nice, you paid 50% of an asset that was worth 30% of its peak.
It's all relative.
As long as you're happy and can afford the payment, I'm happy for you. As a matter of fact, the only reason I ever got mad about any of this is because it started coming out of my own pocket.
If private corps had to roll in their own shit I wouldn't even think twice about it.
Not sure where you got the 0-10% downpayment. Canada is pretty strike with the 20% rule. The PMI insurance up there matches the risk and is therefore very costly
This is the web page I found... I fully acknowledge that I have no first hand knowledge at all, this may well be stating terms that are not typical.
http://www.mortgagescanada.ca/mortgages/mortgage-down-payment/
Would you cough up $1.18M for this shack?
Canada’s stable government and banking system and the relatively low prices draw investors. Located in Willowdale, a subburb north of Toronto, the bungalow at 300 Dudley Ave. was listed at $759,000.
This month, the three-bedroom bungalow, circa the 1960s and without much updating, sold for $421,800 over the asking price...The winning bid of $1,180,800 came from a university student whose parents live in China and own a business in San Francisco. There were four other bids of more than $1 million.
Source:
http://www.cbc.ca/news/canada/story/2012/03/14/real-estate-overseas-investors.html?cmp=rss