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A Gnawing, Ever-Present Burden That They’re Carrying

A report from the Canadian Press. “The Toronto area’s spring real estate market typically begins winding down in June. Andre Kutyan of Harvey Kalles Real Estate Ltd. recommends that sellers set a price based on what comparable properties have sold for, not what neighbouring properties are asking. ‘Sellers look at the competition – what’s on the market now – that’s a big mistake,’ he says, pointing out that those homeowners haven’t struck a deal.”

“The most stubborn are the investors who are aiming to improve their bottom line. Mr. Kutyan recently met with two builders who put their plans to tear down vintage bungalows and rebuild them on hold when the market took a dive in 2018. Now the investors want to unload the properties.”

“In one case, the flipper had paid $2.4-million for the modest house in Willowdale East in late 2017. Mr. Kutyan delivered the grim news that he didn’t think the property would fetch $1.8-million today. Another builder paid $1.75-million for a post-Second World War bungalow in 2017. Mr. Kutyan’s current assessment for the property is around $1.2-million.”

“Mr. Kutyan says the sellers had both listed with other agents in the past without striking a deal. But he advised them that he wouldn’t be willing to take on the listings unless they were willing to face reality. He can understand their plight.”

“‘Quite frankly I don’t think they liked what I had to say,’ Mr. Kutyan says. ‘It’s hard to stomach.'”

The Daily Hive in Canada. “There are many statistics estimating how much prices have dropped in Vancouver during the past year, however, these stats are often too general or bias to be fully reliable. That’s why we spoke with real estate expert, Shawn Brown of West Haven Group.”

“207-150 East Cordova Street: In March 2018, an identical unit was sold for $595,000. Brown explains how this suite was recently listed at $525,000, but it didn’t sell. The property is set to be re-listed soon, and he says a ‘reasonable market value’ might be $515,000. If this is accurate, Brown states that it would be a price drop of 13%.”

“403-53 West Hastings Street: Brown explains that a unit which was very similar, albeit slightly larger and one floor higher than that pictured above, sold for $660,000 in February 2018. If suite 403 had sold for $640,000 at the time, it would translate to a 14% decline based on what it sold for this month — $547,500.”

From ABC News in Australia. “Adam Hughes never imagined buying a modest family home in Perth’s outer suburbs would lead him into financial turmoil, struggling to pay a mortgage he can no longer afford. The full-time mechanic and father of two bought a three-bedroom house in Byford for $336,000 in 2015.”

“Within three years, it was valued at just $280,000. Making matters worse, Mr Hughes went through a relationship breakdown, involving costly family court proceedings. If he was to sell the house, he would be staring at a $56,000 debt, so he was forced to stay put. But as the bills piled up, he fell behind in his mortgage repayments.”

“Mr Hughes is among a growing number of Australians grappling with negative equity — when a mortgage holder owes more to the bank than their house is worth. A new survey by Digital Finance Analytics suggested as many as 112,000 WA households were in negative equity.”

“Not-for-profit organisation Anglicare WA, which runs a financial counselling service, said even a small or temporary reduction in household earnings could tip people into mortgage arrears.”

“‘A lot of families are living under enormous pressure, knowing that if something goes wrong — if there’s a medical crisis, if they lose their job, if they get less hours at work — that they’re going to really be in trouble,’ chief executive Mark Glasson said. ‘And for those people it’s like a gnawing, ever-present burden that they’re carrying.'”

The Daily Mail Australia. “The Barefoot Investor has warned the Australian housing market is in ‘deep trouble’ and on the brink of collapse. Celebrity financial advisor Scott Pape claimed Australians in 2019 are living through ‘monetary madness.’ He said the central bank cutting rates to an all-time low of 1.25 per cent, easier mortgages and Prime Minister Scott Morrison‘s new policy to help people buy their first home are a recipe for disaster.”

“This is because they will allow more people to afford a mortgage when they would otherwise not be able to, meaning defaults are more likely. He wrote: ‘The housing market was slowly deflating after the mother of all housing booms… but then you started cutting interest rates to almost zero? And at the same time you loosened lending criteria and encouraged young people to buy a home with just a 5 per cent deposit? How did you think it would end?!'”

This Post Has 38 Comments
  1. ‘In one case, the flipper had paid $2.4-million for the modest house in Willowdale East in late 2017. Mr. Kutyan delivered the grim news that he didn’t think the property would fetch $1.8-million today. Another builder paid $1.75-million for a post-Second World War bungalow in 2017. Mr. Kutyan’s current assessment for the property is around $1.2-million’

    via GIPHY

  2. FAKE NEWS!!!! Real estate always goes UP! AWAYS! End of STORY!!!

    “In one case, the flipper had paid $2.4-million for the modest house in Willowdale East in late 2017. Mr. Kutyan delivered the grim news that he didn’t think the property would fetch $1.8-million today. Another builder paid $1.75-million for a post-Second World War bungalow in 2017. Mr. Kutyan’s current assessment for the property is around $1.2-million.”

  3. Remember these stories from the last bubble. Even Realtors know the scam is over and will not waste their time/money on insane seller’s dream prices.

    Those commissions are not going to pay themselves!

    ######

    “But he advised them that he wouldn’t be willing to take on the listings unless they were willing to face reality. He can understand their plight.”

  4. He was forced to stay put because Australia is a full recourse country.

    No jingle mail down under!

    #####

    “If he was to sell the house, he would be staring at a $56,000 debt, so he was forced to stay put.”

  5. Australia has a Ben Jones?

    ######

    “And at the same time you loosened lending criteria and encouraged young people to buy a home with just a 5 per cent deposit? How did you think it would end?!”

  6. ‘A lot of families are living under enormous pressure, knowing that if something goes wrong — if there’s a medical crisis, if they lose their job, if they get less hours at work — that they’re going to really be in trouble,’ chief executive Mark Glasson said. ‘

    Ya know, as a serene renter, I just can’t relate.

  7. They are searching a pond and the dump for this high end flipper’s wife and it sounds like his Realtor thinks “maybe the notoriety will help.” sell a house.

    Jennifer Dulos search turns to Avon pond known for water skiing

    By Ethan Fry, Lisa Backus and Jim Shay 6 hrs ago

    New Canaan Police Lt. Jason Ferraro said the Connecticut state police dive team is searching a pond on Old Farms Road in Avon, while continuing to sift through trash at a Hartford dump related to Jennifer Dulos’ disappearance.

    Fotis Dulos, 51, and his girlfriend, Michelle Troconis, 44, are both free on bail while charged with tampering with evidence and hindering prosecution in the disappearance of Jennifer Dulos, who was last seen on May 24.

    Troconis and her daughter had been living with Fotis Dulos at 4 Jefferson Crossing after Jennifer Dulos left with her children when she filed for divorce in 2017.

    The attention the Jefferson Crossing house has gained in recent weeks has been a double-edged sword, according to Rob Giuffria, managing broker for the West Hartford-based Tea Leaf Realty that is listing the home for sale.

    One one hand, buyers could be turned off by the connection to the case and the sordid details that have been publicized, he said.

    “But there is also an argument that the house is getting wider exposure,” he said.

    The more than 13,000-square-foot home still has a $4.4 million asking price, Giuffria added. Most likely the greater impediment to the sale of the home is the price, he said.

    “The market for $2 million homes has been soft in the past few years,” he said. “But maybe the notoriety will help.”

    The property, as well as others developed by Fotis Dulos’ custom homebuilding company, the Fore Group, have been a focus of numerous searches conducted in recent weeks.

    https://www.msn.com/en-us/news/crime/jennifer-dulos-search-turns-to-avon-pond-known-for-water-skiing/ar-AACLzej

  8. “And for those people it’s like a gnawing, ever-present burden that they’re carrying.’”

    My guess is these are the same people who were telling every one who would listen how smart and rich they are, lush with equity and whatnot. The fact is anyone can appear to be successful with debt.

    1. Exactly. What they are not even considering is that the economy will worsen as the bubble pops so even if they keep their jobs pay raises will not happen, overtime will end if they are hourly and they may even lose their jobs.

      1. I don’t know how they sleep at night. In fact, all it would take to over-stress me would be a 3500 Chevrolet Silverado 4×4 High Country edition sitting in the driveway.

  9. I have cousins in Toronto. Detached houses are hurting, but condos are holding steady. When condos start falling, those with the least will get hit and the panic will begin.

    1. I can’t make up my mind whether her, Rashida or Ilhan is the worst piece of excrement ever elected to the House.

      1. True. So the part about the present salary not being sufficient to prevent corruption is true but irrelevant. It is the inherent dishonesty of the people in Congress which makes them so easy for the globalists to buy. Throw in the fact that the FBI has been controlled by the globalists means it is corruption without risk. Not a knock against the rank and file just the leadership. Of course, a dead fish begins to stink at the top.

        1. It is the inherent dishonesty of the people in Congress which makes them so easy for the globalists to buy.

          Not sure I’d say “inherent”. I think some are honest when they get there but get corrupted later. Which means time is a significant factor. Which means that term limits are really important. Not just to limit that time but also to discourage undesirable elements from wanting the job so badly. People who just want to serve their country won’t be deterred by term limits IMO.

    2. Under the Green New Deal, they can pay her a higher salary with no negative economic consequences, so long as the money to fund the raise is borrowed in dollars.

      1. It seems to me like a lot of current Dem thought is a form of the ‘ mommy ” principle gone haywire.

        Even a mother bear will let go of her clubs when they reach maturity. These power hungry mentally sick politicans want to cribble their listeners and keep them childlike and dependant.

        Underneaf it all it’s most likely commie pigs that want the demise of our way of life.
        Their are much better solutions to the problems that face the USA than these sick talking heads.

    1. Did you ever notice how similar Wall Street bulls are to alcoholics who never lack a reason to celebrate?

    1. “The forum assumed retirees would need enough income to cover 70 per cent of their pre-retirement pay, and didn’t include Social Security or other government welfare payments in the total.”

      This retiree is living on 25% of pre-retirement pay, and getting “welfare” in the form of Social Security. I’ll live it up until the system breaks. Then I’ll have to be frugal. I probably shouldn’t do the cabin cruiser when I’m 90 anyway, but who knows.

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