HawthorneVillager.com

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.

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.

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Fred De Carolis
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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

Pre construction all the way!!! Spirit to be exact. I remember when people were saying the spirit homes were going to fall apart etc.

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.

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

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Fred De Carolis
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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.

Not sure where you studied math, but we saved $100,000 by going through mattamy and not a flipper 8 months later.

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!

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Fred De Carolis
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LOL well said.

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

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!

Make sure to search the house. They’re probably already in there waiting to show you who has the bigger DP.

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.

DPs of that size must hurt.

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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.