Page 2 of 2 FirstFirst 12
Results 16 to 29 of 29

Thread: How I lost my home, 3 stories

  1. #16
    Hit By Ban Bus! pacific breeze's Avatar
    Join Date
    Oct 2005
    Location
    in the wild blue yonder
    Posts
    15,479

    Default

    Quote Originally Posted by A*O View Post
    Generally speaking, investing in rental property IS a good plan but you have to pick very carefully and be patient. Even in a red hot market you won't get a quick net profit (don't forget capital gains tax) within a couple of years. If you are prepared to wait even 5 years, preferably 10, you should walk away with a tidy sum after tax.

    I don't think we 'gouge' our tenants. They are mostly corporate lets anyway so the company pays the rent, not the tenant but even so we try to treat them the way we would wish to be treated when we first came here and rented for 18 months while looking for somehwhere to buy. In any event we charge the 'going rate' but try to give our tenants value for money in terms of prompt and reliable assistance if problems arise. I cannot understand why landlords buy places and then basically let them fall into rack and ruin through laziness, neglect or greed because if the place does become a complete wreck (a) the current tenant will just move out and (b) the only new tenants who will be interested will be a bunch of stoner students who WILL finish the job of trashing the place.
    It doesn't make sense to me either, but some landlords don't seem to care as long as the rent cheque doesn't bounce. Then there are landlords like ours who insist on plenty of reference checks and having "professionals" as tenants. But we still have to pay the utilities up front every month to the tune of at least $100 more than the actual bills, which they pay -- and they still rent out a dump and think they are hard done by. The paying the utilities in advance and collecting the difference thing at the end of the year is illegal, but it's a take it or leave it rental market here.

    I think I would much prefer having you for a landlord, A*O. The real estate market here is pretty much ruled by foreign investment buyers/speculators who think nothing of asking $2,000 a month rent for a 560 square foot condo. A lot of those places are sitting empty. I know at least a half dozen people who want to buy but can't afford to -- I'm talking about people with well-paid jobs -- and I know others who would like to sell but can't afford to buy anything else. It's a vicious circle. One friend said she would prefer to be renting even with the hassles because at least she could live in the neighbourhood she wants. They've spent a lot of money renovating their house, but it's still too small and although it's in a nice area, it's a minimum hour drive into the city. That's with NO accidents, which is pretty much never the case.

  2. #17
    A*O
    A*O is offline
    Friend of Gossip Rocks! A*O's Avatar
    Join Date
    Oct 2005
    Location
    Being Paula
    Posts
    30,300

    Default

    A lot of wannabe landlords in Melbourne have been badly burned over the last 2 years with a glut of apartments in the newly redeveloped Docklands area next to the downtown CBD. They bought these places 'off plan' ie before they were built and in the process saved a few thousand dollars in Stamp Duty. The apartments were subsequently built but not to a particularly high standard and with tiny rooms and minimum fixtures and fittings. People flocked to buy them as investments and prices were high because of the demand. So now they are all sitting there empty because nobody worked out that 5,000 nice new apartments need 5,000 tenants who can afford sufficiently high rents to cover the landlord's purchase costs + ideally a 7% return. Families aren't interested in them (too small). People on low or average incomes aren't interested (too expensive). And people who don't want to live in apartments obviously aren't interested either. So the proud new owners continue to pay large mortgages on empty properties with little or no hope of finding a cashed up tenant who, if he could afford such high rents, would probably buy something for himself anyway.

    One bloke bought 2 such apartments after listening to the slick sales patter of the developer and hoped they would pay his pension forever. Both are still empty and were costing him so much in mortgage repayments he worked out it was cheaper in the long run to simply give one apartment back to the developer which he did.
    I've never liked lesbianism - it leaves a bad taste in my mouth
    Dame Edna Everage

    Just because you're offended doesn't mean you're right.

  3. #18
    Elite Member Lobelia's Avatar
    Join Date
    Oct 2005
    Location
    a backwards hillbilly state
    Posts
    20,801

    Default

    Yikes, sounds like an extremely costly mistake, the kind that causes folks to jump out of skyscraper windows.
    "I've cautiously embraced jeggings"
    Emma Peel aka Pacific Breeze aka Wilde1 aka gogodancer aka maribou

    Yip, yip, yip in your tiny indignation. Bark furiously on, lady dog.

  4. #19
    A*O
    A*O is offline
    Friend of Gossip Rocks! A*O's Avatar
    Join Date
    Oct 2005
    Location
    Being Paula
    Posts
    30,300

    Default

    Meh - I don't have much sympathy. You have to do a lot of very thorough research before jumping into investment properties and making sure there are enough potential tenants is Step #1.
    I've never liked lesbianism - it leaves a bad taste in my mouth
    Dame Edna Everage

    Just because you're offended doesn't mean you're right.

  5. #20
    Elite Member Daphne's Avatar
    Join Date
    Nov 2005
    Posts
    3,598

    Default

    With the housing market being as bad as it is in major metropolitan areas, I can understand how so many people end up losing their houses. The average price of a home where I live is $306,000. In a span of just three years, the price of houses doubled. My father bought a house in 2003 for $150,000; the houses in his neighborhood are now priced between $300,000 and $400,000.

    I worry about how I will ever be able to own my own home, and I'm one of the "lucky" ones. I'm finishing my master's degree next year, I've got a great job, and my fiance has a great job as well.

  6. #21
    Hit By Ban Bus! pacific breeze's Avatar
    Join Date
    Oct 2005
    Location
    in the wild blue yonder
    Posts
    15,479

    Default

    ^^That is still very cheap compared to Vancouver where the average price of a home, even one that is falling down, is well over $700,000. A recent study showed that the average family/couple with two working adults earning over $100,000 cannot afford to live in the Lower Mainland. A small condo, maybe, or even a townhome, but forget about a stand-alone house or duplex. Van has sadly become a city for foreign investors and speculators; it was sold out by right-wing governments who continue to get hefty kickbacks from their developer pals.

    It really makes me sick that the people who are born and raised here can't afford to live here any more.

  7. #22
    Elite Member Daphne's Avatar
    Join Date
    Nov 2005
    Posts
    3,598

    Default

    Quote Originally Posted by pacific breeze View Post
    ^^That is still very cheap compared to Vancouver where the average price of a home, even one that is falling down, is well over $700,000. A recent study showed that the average family with two working adults cannot afford to live in the Lower Mainland. A small condo, maybe, or even a townhome, but forget about a stand-alone house or duplex. Van has sadly become a city for foreign investors and speculators; it was sold out by right-wing governments who continue to get hefty kickbacks from their developer pals.

    It really makes me sick.
    That is really depressing.

  8. #23
    Hit By Ban Bus!
    Join Date
    Oct 2006
    Posts
    11,682

    Default

    PB, I could write your posts and substitute L.A., San Diego or San Francisco. It's just plain criminal. Now it's happening in the Northwest too - bigtime. You can still find affordable housing but in shit neighborhoods with lots of crime and questionable characters, not to mention increasingly run-down homes and other bldgs.

  9. #24
    Hit By Ban Bus! pacific breeze's Avatar
    Join Date
    Oct 2005
    Location
    in the wild blue yonder
    Posts
    15,479

    Default

    Even the crap neighbourhoods here are very expensive. It boggles the mind.

  10. #25
    Hit By Ban Bus!
    Join Date
    Oct 2006
    Posts
    11,682

    Default

    My daughter just moved to San Francisco and she found out one of her high school friends already lives there - in freaking Western Addition (a district of S.F. next to Japantown). Holy crap I would never live there or let a kid of mine live there - I don't care how gentrified it's become. It's still a shitty area, and very expensive. The whole NW will go that route very shortly. Just a matter of 2-3 years. 5 at the most.
    Last edited by Mira; January 27th, 2007 at 11:07 AM. Reason: typo

  11. #26
    Silver Member
    Join Date
    Oct 2005
    Posts
    545

    Default

    Wow, scary article. I'm planning on buying a new house in March/April.

  12. #27
    Gold Member IceQueen's Avatar
    Join Date
    Oct 2005
    Posts
    969

    Default

    ^^^ Just make sure that you are not buying a house that you can't afford is the moral of the story. When you are looking, stick to the low end of your budget, and don't let the realtor know your high end because eventually she/he will start to look only there.
    Also, don't get emotionally invested in the house - if you can't afford it, then know that you have to move.

  13. #28
    Hit By Ban Bus!
    Join Date
    Oct 2006
    Posts
    11,682

    Default

    Yes, the days of buying the absolute top of what you can afford is no longer feasible or advisable.

    My uncle bought a house in San Diego (San Carlos/Lake Murray area) in 1963 for $23,000, payments of $210 per month. They were sweating whether they could afford that or not. They paid it off 35 years later, and it was sold last year for $400K+ (forget exact amount).

    They were advised to buy the absolute top end of what they could afford monthly. It used to work back then, but that scenario is no longer viable.

  14. #29
    Elite Member missbazilb's Avatar
    Join Date
    Oct 2005
    Location
    Vancouver
    Posts
    1,556

    Default

    PB - the future hubby and I went looking this weekend at open houses. Talk about depressing! Two bedroom absolute dump townhouses, for $744,000! We're both quite picky and actually want to stay on the westside, which means we'll be sacrificing major space and living in a condo. We both each own a condo, but don't want to sell both (build up that real estate empire!), but I really don't see too many options. Who the hell is buying these places?

    I have such a skewed sense of cost, because suddenly that falling down bungalow on the east side seems like such a deal, because it's only $800,000! We should buy it! With what?

    I'm house sitting for a lady who has a house in a nice area, no big shakes on the house, 3 br split level built in 1958. NOT updated. She paid $29,000 for it in 1958. The neighbours just sold theirs for $1,300,000. You know, a nice starter home

Page 2 of 2 FirstFirst 12

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Similar Threads

  1. Replies: 8
    Last Post: December 21st, 2006, 07:20 PM
  2. Funny Pet Stories
    By missbazilb in forum Pets and Animals
    Replies: 10
    Last Post: August 16th, 2006, 01:57 AM
  3. No more LOST re-runs, but also less LOST
    By SVZ in forum Television and Movies
    Replies: 1
    Last Post: May 17th, 2006, 04:20 PM
  4. Big little stories you might have missed
    By buttmunch in forum News
    Replies: 0
    Last Post: January 1st, 2006, 08:47 AM
  5. Short Stories
    By iconophilia in forum Books and Literature
    Replies: 18
    Last Post: December 2nd, 2005, 01:05 PM

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •