HawthorneVillager.com

Hawthorne Village (Milton) Discussion Board
It is currently Sun Apr 26, 2026 5:01 am

All times are UTC - 5 hours




Post new topic Reply to topic  [ 43 posts ]  Go to page Previous  1, 2, 3  Next

Did you buy pre-construction or used?
Pre-construction 69%  69%  [ 22 ]
Resale 31%  31%  [ 10 ]
Total votes : 32
Author Message
PostPosted: Tue May 06, 2014 4:25 pm 
Offline
User avatar

Joined: Tue Nov 12, 2013 9:49 am
Posts: 714
bremer wrote:
I wish I’d had that discipline.

I bought a brand new fully loaded Honda Prelude, filled it with thousands in stereo equipment, and drove around looking for weed 24/7.

I don’t understand how my parents had no problem with this. I’ll change the locks if I ever see my kids freeloading off me like that.


Dude, that's nothing, I was even worse. After finishing Uni, I refused to move back home and decided to rent for about 8 years. Yeah, 8 years of a whopping bag of dicks in shitty apartments. Worst decision of my life. Looking back, I was so smart as I now had my own place to smoke weed without bother. Come to think of it, I do that now, I just have a mortgage instead.


Top
 Profile  
Reply with quote  
PostPosted: Tue May 06, 2014 8:09 pm 
Offline

Joined: Thu Nov 15, 2007 3:55 pm
Posts: 5278
Location: 4th line / St Laurent
Nobody saved 100k buying new over resale, in the same market, at the exact same time.

However in 2008/09 after the first spirits were bought, those people moved in a year later and made a killing.. $100,000 indeed. Toletza, Pickersgill and around there were the largest spreads. That was a wonderful 1 yr ROI, and MAN I wish I bought 5 of them.

BUT New vs resale at the exact same time is never anywhere close to 100k. It is between 20-30k, almost always. The builder always raises their prices to reflect the market. If you were to have bought from a builder, but that same 1 year later, the difference would have been that same 20-30k (or about 70k more than you paid from that builder a yr earlier)

When resale prices go up, builder prices go up. Mattamy is smart to keep that 20-30k buffer, but no more.. That's enough to create hype and lineups. No builder is silly enough to sell for 100k less than resale, at that exact same time.

In a down market, you can buy a resale home a year later for much cheaper that what you would have paid a builder (see Florida condo market recession time). In an up market, which is what that post-2009 burst was BIG TIME here in Milton , that was the biggest swing up we have had here, hence the biggest 1 yr gap between builder prices and resale.

The latest Mattamy HVOP phase had a 20k spread and many 'flippers' barely broke even. Why? Since prices only went up 3.5 - 4% in that time.

_________________
Fred De Carolis
FREDHELPS.COM or on Facebook
Thanks for your support in the
search for Milton's Favourite Realtor!

REVEL REALTY -- MILTON'S FAVOURITE REAL ESTATE BROKERAGE, as voted by YOU!!!


Top
 Profile  
Reply with quote  
PostPosted: Tue May 06, 2014 10:31 pm 
Offline

Joined: Mon Nov 05, 2012 3:26 am
Posts: 285
Fred D wrote:
Nobody saved 100k buying new over resale, in the same market, at the exact same time.

However in 2008/09 after the first spirits were bought, those people moved in a year later and made a killing.. $100,000 indeed. Toletza, Pickersgill and around there were the largest spreads. That was a wonderful 1 yr ROI.



Ahhh okay. I was kind of confused when I read that at first. I thought you were contradicting yourself there... But I think I understand it now. Basically if someone had bought a resale at the same time those people bought pre-con, they would've made a killing as well


Top
 Profile  
Reply with quote  
PostPosted: Wed May 07, 2014 6:17 am 
Offline

Joined: Sun Mar 01, 2009 1:07 pm
Posts: 168
Pre construction all the way!!! Spirit to be exact. I remember when people were saying the spirit homes were going to fall apart etc.


Top
 Profile  
Reply with quote  
PostPosted: Wed May 07, 2014 7:38 am 
Offline

Joined: Wed Apr 23, 2014 10:52 am
Posts: 781
We saved $100k after 8 months while the home was being built. Not sure if anyone said exact same time anywhere. It takes time to build a new home through a builder.


Top
 Profile  
Reply with quote  
PostPosted: Wed May 07, 2014 7:58 am 
Offline

Joined: Thu Nov 15, 2007 3:55 pm
Posts: 5278
Location: 4th line / St Laurent
Thats my point :) .. you didnt "save" 100k. You made a fantastic equity return on your investment because the market shot up so quickly in that time, and you bought at the perfect time. (New or resale, you would have made a huge return in that year.) Those few phases of spirits were excellent examples of money makers. Some phases after that were not, as there were a couple phases in hvop where people sold 8 months later and barely broke even after closing costs, appliances, etc and nasty realtor fees :)

_________________
Fred De Carolis
FREDHELPS.COM or on Facebook
Thanks for your support in the
search for Milton's Favourite Realtor!

REVEL REALTY -- MILTON'S FAVOURITE REAL ESTATE BROKERAGE, as voted by YOU!!!


Top
 Profile  
Reply with quote  
PostPosted: Wed May 07, 2014 8:35 am 
Offline

Joined: Thu Nov 15, 2007 3:55 pm
Posts: 5278
Location: 4th line / St Laurent
Actually, I was responding to this comment:
"Our neighbour sold theirs as soon as they moved in and we were priced out of it by $100,000 if we were buying a house then. Luckily we saved $100,000 by going through mattamy"

In an up market, I agree that can happen! In a down market, the opposite happens. Like if you bought pre-spirit then all of a sudden, spirits come out from the builder $40k cheaper than the last phase.. Then you didn't save money 'buying from the builder's previous phases. It is ALL relative to the market.


Top
 Profile  
Reply with quote  
PostPosted: Wed May 07, 2014 10:10 am 
Offline

Joined: Wed Apr 23, 2014 10:52 am
Posts: 781
Not sure where you studied math, but we saved $100,000 by going through mattamy and not a flipper 8 months later.


Top
 Profile  
Reply with quote  
PostPosted: Wed May 07, 2014 10:38 am 
Offline

Joined: Thu Nov 15, 2007 3:55 pm
Posts: 5278
Location: 4th line / St Laurent
I never disagreed with that statement. LOL Don't make me pull out my OAC Calculus award, I don't want to get beat up by everybody on here.

What I'm saying is pretty simple.
The houses you buy from a builder you can often get for 20-30k less than resale at that exact time. But then you have to spend a good chunk of money on the things I listed on the previous page, and that works out to about even, and comes down to personal preferences where this discussion started, on a friendly and informative note.

YOU bought at a builder low (which is great, again, congratulations) and when you moved in, the housing market had rebounded and prices had shot up by the highest amount they have ever in an 8 month period here in town, so your timing was incredible. This has not been the case since, and will not be the case again anytime soon. So I would never tell anybody you can save $100,000 if you buy from a builder, because if prices only go up by 3-4% / yr, you will break even. You made what you because because of what and WHEN you bought it,

I am saying you did great! (not arguing with you), But you did not save 100k by buying new vs resale, as that statement is inaccurate and misleading to potential first time investors on here - many people learned that lesson the difficult way in a couple of the phases where the build prices weren't much lower than resale. Mattamy was happy though, that's for sure.

Anybody who bought resale when you bought from the builder, also spent 60-70k less compared to the prices a year later. I have just seen first time "Investors" lose money because they went into a new build with the wrong impression of savings, and that's the only reason I'm writing this - profits or savings are not a guarantee just because you're buying from a builder. Even right now, there are Mattamy models with a positive new vs resale spread on them, and those with a negative new vs resale spread - I track these on a spreadsheet each phase because people come to me with investment questions all the time.

I agree, the new house prices when you bought were a FANTASTIC deal!

_________________
Fred De Carolis
FREDHELPS.COM or on Facebook
Thanks for your support in the
search for Milton's Favourite Realtor!

REVEL REALTY -- MILTON'S FAVOURITE REAL ESTATE BROKERAGE, as voted by YOU!!!


Top
 Profile  
Reply with quote  
PostPosted: Wed May 07, 2014 11:38 am 
Offline

Joined: Thu Nov 15, 2007 3:55 pm
Posts: 5278
Location: 4th line / St Laurent
LOL well said.


Top
 Profile  
Reply with quote  
PostPosted: Wed May 07, 2014 12:47 pm 
Offline
User avatar

Joined: Thu Aug 26, 2010 11:07 am
Posts: 2074
Location: Milton
prickly_pete wrote:
Fred, he saved $100,000 because he deferred the DP to when he got the house. It's tough to try to squeeze in a big DP on a resale as there isn't as much time to plan how to properly approach the situation. A good DP is very satisfying and is something all potential homeowners should aspire to.

DP.


New or resale, after you've reached that great DP, you should then look into hosting a tupperware party.
Tupperware. It's great.


Top
 Profile  
Reply with quote  
PostPosted: Wed May 07, 2014 2:33 pm 
Offline

Joined: Thu Nov 15, 2007 3:55 pm
Posts: 5278
Location: 4th line / St Laurent
Sorry guy I gotta run home, just realized I left the garage door half open. I don't want either of you two showing up expecting something! I've seen both of your faces!


Top
 Profile  
Reply with quote  
PostPosted: Wed May 07, 2014 2:38 pm 
Offline

Joined: Thu Dec 20, 2007 8:12 am
Posts: 4609
Make sure to search the house. They’re probably already in there waiting to show you who has the bigger DP.


Top
 Profile  
Reply with quote  
PostPosted: Wed May 07, 2014 11:07 pm 
Offline

Joined: Mon Mar 17, 2014 10:49 am
Posts: 314
Fred D wrote:
Thats my point :) .. you didnt "save" 100k. You made a fantastic equity return on your investment because the market shot up so quickly in that time, and you bought at the perfect time. (New or resale, you would have made a huge return in that year.) Those few phases of spirits were excellent examples of money makers. Some phases after that were not, as there were a couple phases in hvop where people sold 8 months later and barely broke even after closing costs, appliances, etc and nasty realtor fees :)


Right on Fred. For the moment, those $100m to $200m price appreciation in 1 to 2 yrs on today's new build probably won't be there. The same model as my house bought in 2008-09 for $300m is going for approx $500m today. This would also apply to a resale in the same time frame.


Top
 Profile  
Reply with quote  
PostPosted: Thu May 08, 2014 6:26 am 
Offline
User avatar

Joined: Tue Nov 29, 2011 7:48 am
Posts: 4239
DPs of that size must hurt.

_________________
Some people are like slinkies. They're really good for nothing but they still bring a smile to your face when you push them down a flight of stairs.


Top
 Profile  
Reply with quote  
Display posts from previous:  Sort by  
Post new topic Reply to topic  [ 43 posts ]  Go to page Previous  1, 2, 3  Next

All times are UTC - 5 hours


Who is online

Users browsing this forum: Google [Bot] and 2 guests


You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot edit your posts in this forum
You cannot delete your posts in this forum
You cannot post attachments in this forum

Search for:
Jump to:  
Powered by phpBB® Forum Software © phpBB Group
[ Time : 0.025s | 13 Queries | GZIP : Off ]