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  #1  
Old 2019-03-05, 03:45 PM
eastendguy eastendguy is offline
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Location: Clarence-Rockland, ON
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Default Where did I go wrong? Home appears to be worth less than paid and invested

When I purchased my home in the summer, it seemed like a good deal. A nice double garage (A MUST FOR ME), an 8 year old home in Rockland for 330k (walkout unfinished basement and carpet upstairs however).

I am seeing really nice homes (same model for 350- 355k). I hope they are creating bidding wars or something with what appears to be low low prices to me.

I have no intention of selling this place, I love it!!!! HOWEVER, I sleep better at night knowing someone would be willing to give me a nice cheque one day for more than it costed me...I must not be alone! Ins't just a great feeling!

So basic math…

Paid: 332k

Finished basement costed about 15k (I figure I break even here or added about 20 k in value)

Composite deck (I figure this is where I am bleeding... cost: 5k!!!!. A wood one would of been (if I recall $1500-$2000).

Painting all walls and ceilings: $2000 (made it nice and modern so I’m going to give myself a 100% return on investment calculation here.

Replace builder light fixtures with modern ones: about $500

Natural gas BBQ hookup: $500

Total reno costs: approx 24k

So, $332,000 +24k = $356,000 is my homes cost.


I feel like that second link is an easier sell than mine.

I guess I will need to confirm once it sells for how much it sold for. It might be the sellers strategy to attract multiple offers. I figure it will be asking price or a little more. Not Crazy like Orleans where people are going 20-25k but 5k in Rockland is not unheard of. DESPERATE TIMES CALL FOR DESPERATE MEASURES. As long as people can throw money on the table, prices will keep soaring. A townhome that was 330k the year before I see listed for 350-360 this year!!!

On realtor.ca
https://www.realtor.ca/real-estate/2...kland-rockland

https://www.realtor.ca/real-estate/2...wn-of-rockland

[B]I particularly like this second one. It has a nicely finished basement. Really nice flooring throughout and a nice decor.

It does seem to have popcorn ceilings. Hopefully that reduces the value or would make someone pick mine over this one for a higher price. Feel free to give your opinion on popcorn ceiling. Do my nice smooth non popcorn ceilings be a huge selling point to you?

I couldn't let mine go under 364k at the moment (closing costs etc) and would still not be profitable. Yet someone buys a home in Orleans, sits on it and makes 20k doing nothing to it within a year... Kanata and Barhaven are even more $$$$ ! I think I screwed up financially on this one!

Attached pics I had of mine.

Pic comments: you can see we have the same model home. All exteriors are equal.

I have a nice kitchen (++)

I have carpet upstairs (-)

I do not even have a fireplace like these homes have (value KILLER I believe) (-)

Did I overpay?!!
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  #2  
Old 2019-03-05, 04:59 PM
AvalonMacpherson AvalonMacpherson is offline
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I mentioned this to you last year, houses are not investments...
Housing costs were overinflated due to low interest rates.
Add maintenance, interest and purchase power of the dollar over 25 to 30 years and you are not much further ahead if at all.
You've been drinking the real estate cartel kool-aid.
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Old 2019-03-05, 05:03 PM
eastendguy eastendguy is offline
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Quote:
Originally Posted by AvalonMacpherson View Post
I mentioned this to you last year, houses are not investments...
Housing costs were overinflated due to low interest rates.
Add maintenance, interest and purchase power of the dollar over 25 to 30 years and you are not much further ahead if at all.
You've been drinking the real estate cartel kool-aid.

Many rational people have been saying that. I might admit defeat soon lol

But some people in orleans bought single families in Orleans for 300k and sold them 340 the year after. there is money that was made there for sure. Realtor, legal and land transfer fees eat up profit tho... hopefully some changes coming here so I can make money like my previous generations

Last edited by eastendguy; 2019-03-05 at 05:05 PM.
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Old 2019-03-05, 05:22 PM
suezuki650 suezuki650 is offline
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Over the longer term, your house will appreciate, but so will all other homes and you have to live somewhere. Over the short term you may not see an increase and may even see a decrease. As well, your improvements will not show dollar for dollar as increases in the sale price. Some improvements have good returns (repainting) and others do not.

Where I see people make money is where they buy someplace in rough shape visually, clean it up and/or renovate, and stage it. You can also lose your shirt doing this.

I wouldn't worry about it. Enjoy your home knowing you're paying less in property tax for now. If you had to sell it suddenly you'd be out some money but you wouldn't lose your shirt.
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Old 2019-03-05, 05:27 PM
AvalonMacpherson AvalonMacpherson is offline
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Quote:
Originally Posted by eastendguy View Post
Many rational people have been saying that. I might admit defeat soon lol

But some people in orleans bought single families in Orleans for 300k and sold them 340 the year after. there is money that was made there for sure. Realtor, legal and land transfer fees eat up profit tho... hopefully some changes coming here so I can make money like my previous generations
just like the casino, you only hear about the winners.
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Old 2019-03-05, 05:52 PM
eastendguy eastendguy is offline
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Quote:
Originally Posted by AvalonMacpherson View Post
just like the casino, you only hear about the winners.
LOL

I like this analogy
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  #7  
Old 2019-03-05, 10:06 PM
TKG26 TKG26 is offline
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We bought in 2008 and closed in 2009. Builder price went up 50,000$ by the time we moved in... Nice increase in value.

After ten years i would venture to guess we could turn almost a 200,000$ profit..

But like any investment you havent made a $ till you sell
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Old 2019-03-05, 10:14 PM
eastendguy eastendguy is offline
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Quote:
Originally Posted by TKG26 View Post
We bought in 2008 and closed in 2009. Builder price went up 50,000$ by the time we moved in... Nice increase in value.

After ten years i would venture to guess we could turn almost a 200,000$ profit..

But like any investment you havent made a $ till you sell

HOLY CURRENTLY NOT TAXED PROFIT!! which area?!!
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Old 2019-03-05, 10:20 PM
TKG26 TKG26 is offline
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BBQHAVEN
Mattamy homes to boot.
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  #10  
Old 2019-03-06, 08:14 AM
OttawaC OttawaC is offline
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Hate to break it to you - but it is almost impossible to recoup 100% of the cost of those renos. Basement renos at best recoup 50%, same with deck. Maybe even less with deck with composite materials. Lights are just a personal thing and add little value. Gas hook up - very few people will even see this, and for some buyers, it simply means now they have to buy another BBQ so an additional cost if they buy your home.

If you really want to track how much your home costs you - track the cash that you have invested. All the cash. All the closing costs to get in, all the interest on your mortgage, your property tax, all your renos and maintenance, and of course, all your costs to get out when you sell. Trust me when you do this - the number will surprise you.
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