5833 replies to this topic

[Victoria Watcher]

USA:


Federal Reserve slows interest rate increases with 50-basis-point hike

[Barrrister]

I suspect that we will have to follow.

[lanforod]

We’ve been doing it faster than them.

[Victoria Watcher]

Average Canadian house price declined again in November, to $632,802

 

https://www.cbc.ca/n...ember-1.6686776

[Victoria Watcher]

First-time homebuyer Gurcharan Rehal agreed in October 2021 to pay $1.959 million, plus $90,000 in upgrades, for a single-detached home that would house himself, his wife, their two children and his mother.

"We thought, if we live hand-to-mouth, we can still afford it," Rehal, an Uber driver, told CBC News.

But with his closing date approaching next month, he's so far been unable to secure a mortgage.

An appraisal recently estimated the home's value at $1.7 million — more than $300,000 less than what he agreed to pay for it. On top of that, he says the mortgage rate he was pre-approved for would have required monthly payments of $5,000, but now he's being quoted amounts between $12,000 and $15,000 per month.

______

Coming up with hundreds of thousands of dollars to cover the difference upon closing — in addition to the $260,000 down payment he's already made — and making exorbitant monthly payments is something his family simply can't afford.

_______


"Emotionally and financially, this gonna disturb my whole life," said Rehal, who's now unsure if he'll ever be able to buy a house in Canada.

https://www.cbc.ca/n...close-1.6685427




Maybe the headline should be:

Uber driver tries to buy $2m house. Nearly pulls it off.

Edited by Victoria Watcher, 19 December 2022 - 02:19 AM.

[Barrrister]

Why is an Uber driver trying to buy a two million dollar home?

[Victoria Watcher]

Why is an Uber driver trying to buy a two million dollar home?

 

 

 

 

First-time homebuyer Gurcharan Rehal agreed in October 2021 to pay $1.959 million, plus $90,000 in upgrades, for a single-detached home that would house himself, his wife, their two children and his mother.

 

"We thought, if we live hand-to-mouth, we can still afford it," Rehal, an Uber driver, told CBC News. 

 

But with his closing date approaching next month, he's so far been unable to secure a mortgage.

 

An appraisal recently estimated the home's value at $1.7 million — more than $300,000 less than what he agreed to pay for it. On top of that, he says the mortgage rate he was pre-approved for would have required monthly payments of $5,000, but now he's being quoted amounts between $12,000 and $15,000 per month.

 

 

 

 

 

Well, I suppose at some point somebody told him he qualified.  The article says he was pre-approved.  Now, to go from $5k per moth to $12 - 15k, that's a bit steep, not sure how that works out.  He's got $260,000 down, so let's just say the mortgage is/was roughly $1.75 million.  Forget about the decreased value of the house for now.

 

$1,750,000 at 5% at 25 years = $10,200

3% is $8,281

2% is $7,410

11% is $16,800

13% is $19,300

 

So no idea how these numbers square.

 

 

 

Maybe for his first home purchase he should have been a bit less ambitious.  Here is one at $920,000

 

Here is a bit less house, but still room for mom in her own suite:

 

Welcome To 1 Ashford Crt. Excellent Investment Or Live-In Opportunity. Enjoy This Renovated Bungalow That Is Finished Top-To-Bottom. Features: 3 Separate Entrances, 2 Kitchens, 5 Total Bedrooms & 2 Full Bathrooms!

 

https://www.realtor....-brampton-north

 

 

 

Less than half the price and it's got 5 bedrooms.

 

Edited by Victoria Watcher, 19 December 2022 - 07:04 AM.

[dasmo]

It’s because of racism.

[Barrrister]

Probably he wont be sued but his deposit is down the drain. Saving up another quarter million might be impossible.

[Victoria Watcher]

They updated the article:



"We thought, if we live hand-to-mouth, we can still afford it," Rehal, an Uber driver who also earns income as a property manager and from a business in India, told CBC News.

[Victoria Watcher]

Another update:

 

 

 

 

 

then:

 

 

An appraisal recently estimated the home's value at $1.7 million — more than $300,000 less than what he agreed to pay for it. On top of that, he says the mortgage rate he was pre-approved for would have required monthly payments of $5,000, but now he's being quoted amounts between $12,000 and $15,000 per month.

 

 

 

now:

 

 

An appraisal recently estimated the home's value at $1.7 million — more than $300,000 less than what he agreed to pay for it. On top of that, he says the mortgage rate he was pre-approved for would have required monthly payments of between $5,500 and $6,000, but now he's being quoted amounts between $12,000 and $15,000 per month.

Edited by Victoria Watcher, 20 December 2022 - 02:17 AM.

[Mike K.]

They must fear being thrown off Twitter.

[Victoria Watcher]

Lots of people in CBC comments just think he never planned to close, was just going to flip. Or try to.

[dasmo]

That sounds more probable

[dasmo]

Why have an article about your huge tiny mistake? Unless it’s to promote a fundraiser? What’s the angle? I’ve lost money on bad investments. Nothing at this scale but I can’t imagine wanting to bring it to the press. How does that fix it?

[Victoria Watcher]

I suppose they think/hope either the vendor will relent or it’ll invite a government solution.

Edited by Victoria Watcher, 20 December 2022 - 09:26 AM.

[Nparker]

Why have an article about your huge tiny mistake?...How does that fix it?

#victimculture

[spanky123]

That sounds more probable

Also several claims that he is a business owner and property investor who drivers Uber on the side.

[Mike K.]

Probably planned for a variable rate at 2.x%, then realized variable and 5 year are almost even now at 6%. But lacking sufficient equity, lender likely offered him 8.x% to hedge the risk.

Buying a $2 million house is luxury, even in Canada.

[Victoria Watcher]

Here is a very long article about Islamic or halal mortgages:

https://www.cbc.ca/n...anada-1.6690798

That despite its length, gives you no idea how they work.