Remington The Preserve phase 2

[sanathar]

Originally Posted by g_goo_goo

I think the 43' in Milton have better layouts if you are looking for a wider home to put a formal living room and dining room.

Yes but we have our goal set for oakville not for milton . N 43 ' is $$ in oakville area .

The question is I have bought now when 38' are $950+. Would that price continue to increase and why . Is their any chance for price to decrease ? If we resale it suppose in 5 yrs , would someone be willing to pay million$+ for this layout ? With same million $ they could get a mansion in cambridge or guelph or even milton .

We have purchased the maple but now really confused .

[g_goo_goo]

Originally Posted by sanathar

Yes but we have our goal set for oakville not for milton . N 43 ' is $$ in oakville area .

The question is I have bought now when 38' are $950+. Would that price continue to increase and why . Is their any chance for price to decrease ? If we resale it suppose in 5 yrs , would someone be willing to pay million$+ for this layout ? With same million $ they could get a mansion in cambridge or guelph or even milton .

We have purchased the maple but now really confused .

No one really has a crystal ball to tell you that house prices will double in 10 years. But from the current trends, I don't think house prices will fall anytime soon, so if you are going to get on the bandwagon and you can afford it, you should do it. I do believe in the next 5 years we will see a price slowdown but not a decrease.

[WellThatsLovely]

Originally Posted by sanathar

Yes but we have our goal set for oakville not for milton . N 43 ' is $$ in oakville area .

The question is I have bought now when 38' are $950+. Would that price continue to increase and why . Is their any chance for price to decrease ? If we resale it suppose in 5 yrs , would someone be willing to pay million$+ for this layout ? With same million $ they could get a mansion in cambridge or guelph or even milton .

We have purchased the maple but now really confused .

Just from following the sales in the neighbourhood for the past few years, I've noticed that resale buyers are mainly going for the upgraded finishes. There were a few flippers who clearly thought they could buy any house in the Preserve, select any ugly standard finishes and immediately flip it after closing which didn't go so well for them. The homes sat on the market for a long time and people knew that if they wanted a home full of standard finishes, they could just buy one from the builder and pick their own colours at the same price.
There isn't much chance of the prices decreasing because owners have to put a large amount of money down and mortgage a large amount so sellers will be reluctant to let their homes go for less than what they paid unless there is a huge financial apocalypse. Most people in the market to buy a $1m home likely have other assets to let go of before they take a hit on their primary residence.
If you're worried about your resale value a few years down the road, take a look at the homes south of Dundas and be honest with yourself about how you see your home comparing to those. Will it be new and shiny and attractive to buyers like a model home or will it looked lived in, with average furniture and some things that need repairs or replacement? That seems to make a huge different in older resale homes just south of us.
You don't need to look as far as Cambridge or Milton, anyone looking for a large resale home with 4-5 bedrooms would presumably have a family and therefore be tied to a specific area where they will spend their $1m. No one wants to uproot 3 kids and 2 jobs just for a nicer used home 50km away

[sanathar]

Originally Posted by WellThatsLovely

Just from following the sales in the neighbourhood for the past few years, I've noticed that resale buyers are mainly going for the upgraded finishes. There were a few flippers who clearly thought they could buy any house in the Preserve, select any ugly standard finishes and immediately flip it after closing which didn't go so well for them. The homes sat on the market for a long time and people knew that if they wanted a home full of standard finishes, they could just buy one from the builder and pick their own colours at the same price.
There isn't much chance of the prices decreasing because owners have to put a large amount of money down and mortgage a large amount so sellers will be reluctant to let their homes go for less than what they paid unless there is a huge financial apocalypse. Most people in the market to buy a $1m home likely have other assets to let go of before they take a hit on their primary residence.
If you're worried about your resale value a few years down the road, take a look at the homes south of Dundas and be honest with yourself about how you see your home comparing to those. Will it be new and shiny and attractive to buyers like a model home or will it looked lived in, with average furniture and some things that need repairs or replacement? That seems to make a huge different in older resale homes just south of us.
You don't need to look as far as Cambridge or Milton, anyone looking for a large resale home with 4-5 bedrooms would presumably have a family and therefore be tied to a specific area where they will spend their $1m. No one wants to uproot 3 kids and 2 jobs just for a nicer used home 50km away

Agreed you are right but i do believe there are many families in preserve alone who could afford 1 million $ but will have no other asset to sell first . A million $ isnt a big deal these days . But yeah you are right to price go down from its original building price needs a bigger financial crisis . At most it could stuck at that price for years .

[g_goo_goo]

Originally Posted by WellThatsLovely

Just from following the sales in the neighbourhood for the past few years, I've noticed that resale buyers are mainly going for the upgraded finishes. There were a few flippers who clearly thought they could buy any house in the Preserve, select any ugly standard finishes and immediately flip it after closing which didn't go so well for them. The homes sat on the market for a long time and people knew that if they wanted a home full of standard finishes, they could just buy one from the builder and pick their own colours at the same price.
There isn't much chance of the prices decreasing because owners have to put a large amount of money down and mortgage a large amount so sellers will be reluctant to let their homes go for less than what they paid unless there is a huge financial apocalypse. Most people in the market to buy a $1m home likely have other assets to let go of before they take a hit on their primary residence.
If you're worried about your resale value a few years down the road, take a look at the homes south of Dundas and be honest with yourself about how you see your home comparing to those. Will it be new and shiny and attractive to buyers like a model home or will it looked lived in, with average furniture and some things that need repairs or replacement? That seems to make a huge different in older resale homes just south of us.
You don't need to look as far as Cambridge or Milton, anyone looking for a large resale home with 4-5 bedrooms would presumably have a family and therefore be tied to a specific area where they will spend their $1m. No one wants to uproot 3 kids and 2 jobs just for a nicer used home 50km away

The homes south of Dundas weren't a million dollars 5-10 years ago either. I don't see how the comparison is being made there. I was in the area 10 years ago and houses were like 300K-500K for a single detached. Now the same homes sell for 7,8,900K regardless of whether you compare lived in or not. You would have made money. Serviceable land is scarce and there is a lot of demand of single detached homes... I would not worry about home values going up but do keep in mind you are buying a house as a good place to live; investment or otherwise.

[WellThatsLovely]

Originally Posted by g_goo_goo

The homes south of Dundas weren't a million dollars 5-10 years ago either. I don't see how the comparison is being made there. I was in the area 10 years ago and houses were like 300K-500K for a single detached. Now the same homes sell for 7,8,900K regardless of whether you compare lived in or not. You would have made money. Serviceable land is scarce and there is a lot of demand of single detached homes... I would not worry about home values going up but do keep in mind you are buying a house as a good place to live; investment or otherwise.

I understand that they also went up in price, the point I was trying to make is that they are older homes now. You can see what happens to the price if you do nothing to it and just allow it to age vs the houses for sale on the same street right next to them with pools and brand new kitchens, bathrooms etc. same house, same area, big difference in price.

[g_goo_goo]

Originally Posted by sanathar

Agreed you are right but i do believe there are many families in preserve alone who could afford 1 million $ but will have no other asset to sell first . A million $ isnt a big deal these days . But yeah you are right to price go down from its original building price needs a bigger financial crisis . At most it could stuck at that price for years .

If you are buying a million $ home with no other assets; you are essentially putting all your eggs in one basket. This is a risk; whether the home prices goes down or not you will have leveraged all your savings into one big ticket item. I do not know the ratio of families that have bought million $ homes and have no saving whatsoever, so I cannot comment to that. But I have seen many people buying big houses and are obsessed with how much money they will make and how good the market is right now with a lot of speculation and sometimes fear that the market is going to go south. I don't believe this is a good way to live. If you find a comfortable place to live then I would consider it a long term investment. My take is the prices are slowing down so you are correct, we could see a period of stagnant price growth; however I don't believe you will lose money, and if you can afford to buy now you should do it.

[WellThatsLovely]

Originally Posted by sanathar

Agreed you are right but i do believe there are many families in preserve alone who could afford 1 million $ but will have no other asset to sell first . A million $ isnt a big deal these days . But yeah you are right to price go down from its original building price needs a bigger financial crisis . At most it could stuck at that price for years .

Just because someone can pay the mortgage on a million dollar home, doesn't mean they can "afford" it. Spending a million dollars on a home with no other assets is a terrible idea, even if there was zero risk involved and the home's value was guaranteed to increase, it's just a horrible use of funds and anybody who thinks it's a good idea should speak with some kind of financial consultant.

[sanathar]

Originally Posted by WellThatsLovely

Just because someone can pay the mortgage on a million dollar home, doesn't mean they can "afford" it. Spending a million dollars on a home with no other assets is a terrible idea, even if there was zero risk involved and the home's value was guaranteed to increase, it's just a horrible use of funds and anybody who thinks it's a good idea should speak with some kind of financial consultant.

Agreed but what would anyone do if a normal detached is above 600k even in Milton . The same thing some one else mentioned that they wont uproot the family with 3 kids just to settle in a faraway area . Real estate is expensive . N it is that expensive that even if some one want or not they have to spend that much amount of money .

[WellThatsLovely]

Originally Posted by sanathar

Agreed but what would anyone do if a normal detached is above 600k even in Milton . The same thing some one else mentioned that they wont uproot the family with 3 kids just to settle in a faraway area . Real estate is expensive . N it is that expensive that even if some one want or not they have to spend that much amount of money .

There are much less expensive homes available in Oakville. Not everybody has to have a detached show home with the finest finishes.