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  #11  
Old 2011-04-10, 02:37 AM
ykchan ykchan is offline
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It really depends on the market. Yes, there are people making instant profit for buying pre-construction properties and sell them when it's completed. However, it happens more when you purchase condo apartments. Most of the time, the margin of profit is bigger then freehold properties.

The market was so hot in the past 2 years due to the low interest rate and the listing prices when extremely low after the economic crisis. That's why you see the price jump like crazy. My one on Cabin Trail jumped from 360k (pre-construction 2009) to more than 470k today. The market is slower down a bit, although the price is still growing stantly in the near future, you may not see another big jump like that. Of course, again, it depends on the market.

For this site, since it's the last phrase of Greenpark, Treasure Hill and Starlane which they don't have no more land on hand at the moment, and the town has to "digest" the sudden growth in the past few year before they permit more residential zoning, we may not see as many new sites as the past two years. For basic supply and demand theory, if there are less supply in the market, the price may go up.

P.S. I am a real estate agent, just to share my thought. ^_^
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  #12  
Old 2011-04-10, 02:42 AM
ykchan ykchan is offline
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Quote:
Originally Posted by TomToronto2 View Post
I hope the prices will not go up anymore. It's insane and unsustainable. Seems like our house went up from $300.000 two years ago to more than $350.000 now
It's still going up, but won't be as crazy as last year. But, when comparing with other locations, i.e. Markham, Downtown, the market in Stouffville is still "healthy". As least I don't see too many investors targeting properties in Stouffville. Most of the buyers are end users.
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  #13  
Old 2011-04-10, 08:35 AM
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Selvi Selvi is offline
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Lightbulb Captial Gain

Say The Semi Is 400k How Much Capital Gain Do I Have To Pay?

How Do You Calculate Captial Gain?
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  #14  
Old 2011-04-10, 10:09 AM
R_D_G R_D_G is offline
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Quote:
Originally Posted by Selvi View Post
Say The Semi Is 400k How Much Capital Gain Do I Have To Pay?

How Do You Calculate Captial Gain?
It depends on how much you sell it for, among other things.
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  #15  
Old 2011-04-10, 11:55 AM
joed joed is offline
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i hope they keep going up,i wanna sell my house on james mc, instant investement!
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  #16  
Old 2011-04-10, 01:07 PM
ykchan ykchan is offline
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Quote:
Originally Posted by Selvi View Post
Say The Semi Is 400k How Much Capital Gain Do I Have To Pay?

How Do You Calculate Captial Gain?
Your accountant should be the best person to answer this question.
RDG is right, it depends on how much you are selling it for minus the original purchase price and expenses (levies, lawyer's fee, agent's fee, early mortgage discharge penalty, etc). You will get your net. Since unlike condo apartment properties, most builders of freehold properties do not allow assignment sales, which mean you cannot sell it until the closing date. If you have to count in the mortgage you are going to pay during the selling period. When the interest rate goes up, you have to see if you can afford to pay 2 mortgage for 2 houses.

In GENERAL case, if you want to call it a profit, I would say the property have to go up 20% then it can cover all your expenses and get some $ into the pocket. Don't forget to count in all the works and headache in the buy and sell process.

**Just my 2 cents. I am talking about general cases only, please don't quote my word. It's subject to case by case
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  #17  
Old 2011-04-10, 01:16 PM
ykchan ykchan is offline
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Originally Posted by joed View Post
i hope they keep going up,i wanna sell my house on james mc, instant investement!
lol, well, I WAS thinking to sell my one on Cabin Trail too. But don't forget, if I sell the one here, I have to downsize to make $ in my pocket. Everywhere is going up like crazy at the same time.
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  #18  
Old 2011-04-10, 01:31 PM
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Selvi Selvi is offline
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Don't Know What To Do, Only 5 Starlane Units Left

ykchan Did You Get From Starlane Or GP?

Last edited by Selvi; 2011-04-10 at 01:35 PM.
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  #19  
Old 2011-04-10, 02:05 PM
TomToronto2 TomToronto2 is offline
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Originally Posted by Selvi View Post
Don't Know What To Do, Only 5 Starlane Units Left

ykchan Did You Get From Starlane Or GP?
If you are not sure, then don't buy it. Just look at what happened in the US two years ago. You don't want to end up with a mortgage that is much higher than the value of your "investment".
IMHO buying a 2nd house as an investment only makes sense if you have enough cash to pay the whole sum. If you go with a mortgage, you will end up paying so many different fees, mortgage discharge penalty, mortgage insurance, and interest, that it is very difficult to earn any profit.
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  #20  
Old 2011-04-10, 04:35 PM
PJD PJD is offline
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I am not sure why you guys talk about mortgage penalties. If Selvi knows the property will be put up for sale shortly after closing then he/she should get an open mortgage so that there are no penalties. That part is simple.

To purchase a 2nd property now you need 20% down anyway. Those are the rules and you can't get a mortgage for more than a 30-year amortization so first and foremost you must qualify for that.

I am not getting the mortgage insurance part? Can you clarify?
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