Man, this housing thing is going to get REALLY ugly

[Red Squirrel]

It is common knowledge for every bloody homeowner. This is not new, probably in place when your parents bought their house. The only thing that changed in 2016 is that you have to report it on tax return.

Trudeau has not been around that long. This was announced like 1-2 years ago. Though I'm not finding much on it, and I still can't find confirmation that it actually did pass or not. It does look like if you keep your house 1 year you are safe though so it's not as bad as I figured, I thought it counted for all houses.

Claims of a capital gains tax on home sales

Conservative Leader Erin O'Toole is accusing the Liberals of planning to impose a capital gains tax on people who sell their homes, but Justin Trudeau says it’s not true. Truth Tracker Richard Madan looks at the facts.

www.ctvnews.ca

 

[Brainonska511]

Because non-poor families want to live in an SFH.



That is because of fears in a bear market that an apartment or condo complex will turn into de facto projects if it doesn't have adequate parking since that's a deal breaker for most middle class and up people. NYC is the one exception to this.

I think you have some fundamental misunderstandings about the nature of housing, cities, and who wants to live in what kind of building.

 

[sdifox]

Trudeau has not been around that long. This was announced like 1-2 years ago. Though I'm not finding much on it, and I still can't find confirmation that it actually did pass or not. It does look like if you keep your house 1 year you are safe though so it's not as bad as I figured, I thought it counted for all houses.

Claims of a capital gains tax on home sales

Conservative Leader Erin O'Toole is accusing the Liberals of planning to impose a capital gains tax on people who sell their homes, but Justin Trudeau says it’s not true. Truth Tracker Richard Madan looks at the facts.

www.ctvnews.ca

... It wasn't even proposed, it would be everywhere if that was true.

Beside, an anti flipper meansure is a good idea. No one other than flippers buy a house and sell in less than a year.

 

[jpiniero]

I think you have some fundamental misunderstandings about the nature of housing, cities, and who wants to live in what kind of building.

You may not like it but that's the reason. Call it snob zoning.

 

[njdevilsfan87]

Why do we have to force people to move away? Maybe some want to be full remote, and would move away, but there are may also still be others who want to stay in the area because of the amenities that a city offers. And others want to be in an office. Working remote isn't for everyone.

Why do we artificially restrict housing in these cities to majority SFH and dedicate so much space to parking? There is plenty of room for more homes, just not for SFHs.

It's not forcing people to move away - it's giving them option to. Some like the amenities, but the amenities come at a cost. A lot of people live in run down 2-star motel-like apartments in places like west LA or even just over the hill in the San Fernando Valley because anything further and they'll be on the road for 2 hours each way. And for what - to get to a cubicle? People are being geo-forced to live in places like this not because they like the amenities the city offers, but they need to make rent without losing their minds stuck in traffic for 3-4 hours a day. I'll keep using LA as the example because it's the only one I'm familiar with, but if you're not living in Santa Monica, Venice Beach, Silver Lake, etc - then you're not getting much benefit of the city while still paying a high rent. You're just stuck in the gridlock paying a high rent in a 2-star motel built in the 1960s.

Aside from SF, cities in California are not like NYC, Chicago, etc. They're very spread out, and just being a mile or two away from something effectively cuts it off as a regular amenity you can enjoy. Most new developments in places that I mentioned worth living in are larger apartment complexes and not SFH anyway. So again I'm not really sure what this law addresses or how it helps anything.

Any of these will be more effective than this law:

• Any job done remotely during the pandemic is by law no longer geo-tied to an office (look at SFH home prices in Sacramento: very affordable compared to LA and SF)
• Foreign investors get hit with a huge tax hit for purchasing property in California
• Companies like BlackRock aren't allowed to buy up every single property available above market, except for foreclosures

But all of those go against pure capitalism - so none of them will happen. Instead we'll have some useless law that individual cities will override and then nothing will get built and the crisis will get even worse.

 

[MrSquished]

It's amazing that people never heard of multi unit buildings that are more dense than single families that also have parking.

I mean seriously?

Is this the twilight zone?

 

[MrSquished]

Because non-poor families want to live in an SFH.

That is because of fears in a bear market that an apartment or condo complex will turn into de facto projects if it doesn't have adequate parking since that's a deal breaker for most middle class and up people. NYC is the one exception to this.

You may not like it but that's the reason. Call it snob zoning.

I proved you wrong on the first point but you keep repeating it. Plenty of families buy condos and live in them because they still want more urban like amenities. Some condos even have yards and roof decks so real usable outdoor space too! AMAZING!

So you think only single family homes can have parking? You also think condo complexes with condos that cost over half a million to a million are going to turn into projects in a bear market? Are you insane?

That's amazing.

Keep on keepin' on.

 

[nakedfrog]

While no one is paying attention, corporate management companies are buying up houses as fast as they can.

Once they "own" a large swath of single family homes they rent out, they will definitely be in control of housing. People will be caught between a very limited market, and a greedy ass corporation that wants to rent these houses at inflated rates. This trend will take on a snowball effect, and they will snatch up any dwelling as soon as it hits the market, further blocking the average family from owning.

I own two homes, live in one. I constantly get phone calls, mail, email, and even SMS text message wanting to buy, as is and in cash, the address I don't live at. They are usually out of town or state. How the hell they get my cell phone, or email is a mystery. I am not on social media, and nothing linking my name with this info.

I guess they search the county property tax records, looking for property with mailing addresses different from the actual address.

I've gotten contacted a number of times in the past year about whether I'd be interested in selling properties I've never even laid eyes on.

primary residence that you stay in more than 5 years are exempt. seriously how can you know so little about law?

True to his typical form, he's not shy to expound about all the problems with something he knows fuck-all about, and misrepresent the truth along the way.

 

[MrSquished]

In the USA, they have what's called "the wash rule", at least for real estate (AFAIK, this is not financial advice, and I am not a lawyer), my understanding is that if you sell property/real estate, and then turn around and use that money to buy another property within a certain timeframe, and those valuations are similar, then you don't necessarily have to pay Capital Gains tax on that sale. Don't take my word for it, though, talk to a lawyer.

yes it's called a 1030 exchange

What Is a 1030 Exchange in Real Estate? | Sapling

A section 1031 tax-deferred exchange is a way that real estate owners can sell investment real estate and buy a replacement piece, or pieces, of investment real estate while deferring both the capital gains tax as well as any depreciation recapture tax.

www.sapling.com

.

 

[jpiniero]

It's amazing that people never heard of multi unit buildings that are more dense than single families that also have parking.

Never said that. It's the opposite - even in cities you have parking minimums for multi unit buildings. Maybe in some cases they will be okay with easily available on street parking nearby but there needs to be parking. NYC is the one exception to this.

 

[MrSquished]

Never said that. It's the opposite - even cities are requiring parking mininums.

Let me elaborate. Adequate parking. They can and do. It all depends if the city is strict with their zoning rules on parking and not giving out crazy variances.

No properly designed expensive condo complex is going to turn into 'de facto projects' during a bear market, due to lack of parking, as you say.

This is crazy talk along the lines of 'raze Central park'

 

[[DHT]Osiris]

Let me elaborate. Adequate parking. They can and do. It all depends if the city is strict with their zoning rules on parking and not giving out crazy variances.

No properly designed expensive condo complex is going to turn into 'de facto projects' during a bear market, due to lack of parking, as you say.

This is crazy talk along the lines of 'raze Central park'

One of the smartest places I've lived was a duplex, separated by a garage. Front half was a ~2300sqft rental, back half was a ~1300 sq foot rental. Whole housing complex was full of these, made for a nice mix of up-and-coming and well-off folks.

 

[MrSquished]

Probably not right now.

I'm thinking of eventually moving to the Smyrna/Vinings/Buckhead/John's Creek area of Atlanta but not until late next year at the earliest. I have some friends down there and I really love the area.

I'd like to think the housing market will continue to cool a bit.

Nope

Your answers are what the vast majority of people say when they are cold-called to sell. Whether by a realtor trying to list their home on the consumer market, or by someone trying to sell their home off-market to a developer for cash. They say no. Or maybe down the road. Which often never comes to fruition.

The fact is even if an area is slightly upzoned for planned increased density, it's a looooong process. Most people simply don't want to move, even if you dangle a good price for their home in front of them. And of those who do want to move, many of their properties are too expensive for a developer, they get sold to another consumer that just moves in and keeps it a single family. The change of a neighborhood from SFZ to say a two or three family zoning would mean very slow and incremental change to the area that can easily be absorbed and planned for. The homes aren't just all going to transform overnight. Unless the township is stupid, infrastructure adjustments can be made easily.,

 

[jpiniero]

No properly designed expensive condo complex is going to turn into 'de facto projects' during a bear market, due to lack of parking, as you say.

That's the reason. You try attracting residents without parking in most of the country, especially if they can easily find other places with it.

 

[MrSquished]

That's the reason. You try attracting residents without parking in most of the country, especially if they can easily find other places with it.

You stand by your statement that condo complexes where condos are 500k to a million are going to turn into de facto projects during a bear market?

What do you smoke and can I have some please.

 

[MrSquished]

I keep an eye on the core Chicago market and return to office plus people who just want city amenities has driven the rental occupancy rate ABOVE the pre-pandemic high. Landlords have had to slow their leasing at new buildings to avoid all their units from turning over at the same time. The city for its part has been approving 10s of thousands of new apartment units in the last year resulting in the fattest development pipeline seen in recent memory.

Also saw that rents are exploding in NYC where people who got concessions last year are seeing like 50-70% rent increases. The demise of the city has been greatly exaggerated, though not all will recover so quickly.

I've been doing the same, keeping an eye on the core NYC market as those trends then spill over to the markets I am in in NJ. I saw the landlords start to jack up prices recently and I was like come on, do it a bit more gradually. I mean sure if you were a landlord underwater, then yes, raise your prices to get out of that hole, but most of them are not. Meanwhile NYC approves new housing per capita at a much slower rate than many other major American cities. They need more and more dense housing stat.

 

[Red Squirrel]

Most condos/apartments here tend to have like 1-2 parking spaces per unit. I think you have to pay extra per month to get the 2 spaces though. Basically you need that if you get any visit. Then there's duplexes, fourplexes etc that typically will have at least one parking spot per unit.

Hard to rent a unit without parking.

 

[MrSquished]

One of the smartest places I've lived was a duplex, separated by a garage. Front half was a ~2300sqft rental, back half was a ~1300 sq foot rental. Whole housing complex was full of these, made for a nice mix of up-and-coming and well-off folks.

Exactly. Yes there is poorly planned density and poorly developed complexes, but there are many many ways to do it all correctly as well. I see it around the area. Sometimes it's like what were they thinking. Other times it's watching a neighborhood flourish, new small businesses opening up due to increased opportunity, etc...

 

[jpiniero]

You stand by your statement that condo complexes where condos are 500k to a million are going to turn into de facto projects during a bear market?

Will? Can't say. But that's the reason the minimums are there.

 

[Red Squirrel]

Noticed a bunch of signs in my area "Will buy houses CASH any condition!" with a number to call. No company name or anything like that. Feels sketchy. Guessing these are investment firms that will try to low ball people for their house then sell it for profit and take advantage of this crazy market.

I'm just so glad I managed to score my 40 acre property in this crazy storm, I really lucked out.

 

[BarkingGhostar]

Neighbor my good neighbor two doors down or the wreck of a Zillow offering next door has sold. There are properties being offered for $415-450K, but the newly built $750K homes around the corner are selling like hotcakes.

 

[brianmanahan]

Neighbor my good neighbor two doors down or the wreck of a Zillow offering next door has sold. There are properties being offered for $415-450K, but the newly built $750K homes around the corner are selling like hotcakes.

i just found a house in a good location. an old guy lived there and hadn't kept the place maintained in a while.

a few years ago i could have bought it for 100$k in this condition, but nowadays they want 200$k.

and the pictures still have his junk scattered all over the house... there's so much demand you don't even have to make the place look good in order to sell it.

 

[Scarpozzi]

FWIW, realtor.com recently reported they had 600k houses listed. The issue has been that govt was allowing mortgage payments to be withheld by the "tenants"in since so many had loss of income the past 18 months. All that ended a month ago.

It's expected that 1.7M houses will be eligible to return to the market and the slowing of the pandemic will add inventory and cool the market.

In my neighborhood, I saw four or five houses flipped very quick in the past 8 months. They were sold days, if not hours after being listed. Now that the price expectations are up, we have 2 other listings from August....nice homes in the 1800-2300sq ft range. Neither are under contract. I can't tell if the prices being jacked up $120k or more is the problem or other inventory being introduced from people trying to "cash in".

 

[BUTCH1]

FWIW, realtor.com recently reported they had 600k houses listed. The issue has been that govt was allowing mortgage payments to be withheld by the "tenants"in since so many had loss of income the past 18 months. All that ended a month ago.

It's expected that 1.7M houses will be eligible to return to the market and the slowing of the pandemic will add inventory and cool the market.

In my neighborhood, I saw four or five houses flipped very quick in the past 8 months. They were sold days, if not hours after being listed. Now that the price expectations are up, we have 2 other listings from August....nice homes in the 1800-2300sq ft range. Neither are under contract. I can't tell if the prices being jacked up $120k or more is the problem or other inventory being introduced from people trying to "cash in".

Neighbor just sold his house which was a 2br/1ba 900SF for $180K, it was sold in a week.

 

[Scarpozzi]

Neighbor just sold his house which was a 2br/1ba 900SF for $180K, it was sold in a week.

Here, houses that were $105-110/sq ft went to $170-175/sq ft.

I should add....lumber prices dropping will help the prices flip the other way too.