Ontario Tax Sale Property Forum
Tax Sale Forum => General => Topic started by: raylak on August 25, 2016, 05:36:35 PM
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Here's something I fail to understand - Strip of land!
For example - http://www.tri-target.com/uploads/320700117_1.jpg
Who would and why would someone ever buy a strip of land like that in tax sales? I've never seen any successful strip of land tax sale result being a successful one. Why does the municipality even bother selling it? I understand maybe they are laws in place that they have to but it seems ridiculous. Any particular reason for this happening? Also, how can someone just not pay taxes on a strip of land but would on everything else they might own nearby?
Anyone?
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Ray:
1. The answer to your question is in most cases the Municipality does not expect for someone to buy it.
2. The reason is the original purpose of a one foot or one meter sized strip. First I will deal with another purpose.
3. The second occasion you run into a narrow strip of land is when a subdivision is created. Sometimes when lots are created there is leftover land that it does not make sense to combine with a building lot. These leftover strips are then let go by the developer.
Addendum: (had to take a phone call in middle of post)
4. The other reason is the one foot or one meter strip is used (usually by the municipality and occasionally by the developer as a means of development control .
Take a look at the Tri target photo for a second. see how the one foot strip prevents an expansion of the road because it is a perfect blocking device to the expansion of the road into the farmers field.
Normally these strips have no value but VERY occasionally they could have interesting value. Lets say you buy one at a tax sale in the middle of a Toronto city block. A few years down the road a developer buys up all the property in the block with the idea to build a high rise condo. If yours is the last piece of property in the block guess what price you are going to charge.
The only problem is if the spoilsport city decides to expropriate it (developers have been known to have political connections) but that is a question to be answered by smarter people then me like this guy 8)
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Point 3 makes a lot of sense so I guess the developer just doesn't care of pay taxes on it and then the municipality inherently seems to own it. There doesn't seem to be much value in purchasing it, is it? Maybe some sort of encumbrances might be attached to it?
You got cut off before making point 4.
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Ray
The picture of the strip that you posted is obviously a one foot reserve....the town made them separate a piece to prevent the development from going further, sometimes this is done for planning reasons, other times for financial reasons (whoever owns the farm will have to pay a big fee to have it removed and be able to connect to the roads and other utilities).
Many times, and you see very odd shapes being offered for sale, they are surveying errors. One recent example was the little triangle of land at the entrance to the Shoppers Drugmart in Gravenhurst....that store was developed on what was previously two or three separate parcels of land, it would appear that when they put them together something went wrong with the legal description and there was a remnant parcel. I figured that the little triangle would have been large enough for Dave to locate his hot dog stand, but he passed on the sweet opportunity.
The Municipalities are not expecting anyone to bid on these parcels, but they have to go through the process....in the end they will take possession of them and either hold them, or sell/give them to neighbouring properties.
These are crumbs left at the table and they need to be swept away. 8)
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Hey Frank,
Thanks for those words of wisdom. That makes sense! So now is it possible that one can make a killing on these things by holding up any development because they seem to have bought them and now to proceed with these developments, such strips are critical? Or am I reading too much into these non-trivial things and maybe should focus on actual parcels. I've always been of the opinion to go in the direction where people just choose to ignore either because it is too difficult to understand or not worth their time and effort. Lately, I've just seen many come through but with absolutely no tenders even if it just a couple grand.
Ray
The picture of the strip that you posted is obviously a one foot reserve....the town made them separate a piece to prevent the development from going further, sometimes this is done for planning reasons, other times for financial reasons (whoever owns the farm will have to pay a big fee to have it removed and be able to connect to the roads and other utilities).
Many times, and you see very odd shapes being offered for sale, they are surveying errors. One recent example was the little triangle of land at the entrance to the Shoppers Drugmart in Gravenhurst....that store was developed on what was previously two or three separate parcels of land, it would appear that when they put them together something went wrong with the legal description and there was a remnant parcel. I figured that the little triangle would have been large enough for Dave to locate his hot dog stand, but he passed on the sweet opportunity.
The Municipalities are not expecting anyone to bid on these parcels, but they have to go through the process....in the end they will take possession of them and either hold them, or sell/give them to neighbouring properties.
These are crumbs left at the table and they need to be swept away. 8)
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It's your dime, and you can spend it any way you feel.
Tax Sale properties are usually dogs that have been discarded and left at the pound....most of the really nice ones are taken back by their owners: sometimes people go through and come across one that is friendly; and some people know how to tame unfriendly ones; but most of them fit neither of those descriptions and are best left alone. 8)
Pretty sure that Dave will be quoting me on this one.
Hey Frank,
Thanks for those words of wisdom. That makes sense! So now is it possible that one can make a killing on these things by holding up any development because they seem to have bought them and now to proceed with these developments, such strips are critical? Or am I reading too much into these non-trivial things and maybe should focus on actual parcels. I've always been of the opinion to go in the direction where people just choose to ignore either because it is too difficult to understand or not worth their time and effort. Lately, I've just seen many come through but with absolutely no tenders even if it just a couple grand.
Ray
The picture of the strip that you posted is obviously a one foot reserve....the town made them separate a piece to prevent the development from going further, sometimes this is done for planning reasons, other times for financial reasons (whoever owns the farm will have to pay a big fee to have it removed and be able to connect to the roads and other utilities).
Many times, and you see very odd shapes being offered for sale, they are surveying errors. One recent example was the little triangle of land at the entrance to the Shoppers Drugmart in Gravenhurst....that store was developed on what was previously two or three separate parcels of land, it would appear that when they put them together something went wrong with the legal description and there was a remnant parcel. I figured that the little triangle would have been large enough for Dave to locate his hot dog stand, but he passed on the sweet opportunity.
The Municipalities are not expecting anyone to bid on these parcels, but they have to go through the process....in the end they will take possession of them and either hold them, or sell/give them to neighbouring properties.
These are crumbs left at the table and they need to be swept away. 8)
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It's your dime, and you can spend it any way you feel.
Tax Sale properties are usually dogs that have been discarded and left at the pound....most of the really nice ones are taken back by their owners: sometimes people go through and come across one that is friendly; and some people know how to tame unfriendly ones; but most of them fit neither of those descriptions and are best left alone. 8)
Pretty sure that Dave will be quoting me on this one.
Frank:
Ask and you will be so honoured. Good analogy but it ignores one important point in this business of risk. At least the dogs at the pound have had their shots and unfortunately tax sales are occasionally like unprotected wild dogs that catch occasionally catch diseases.
The disease that can infect dogs and scares me is rabies and in the tax sale context we are talking environmental problems.
That risk can also infect the 'soon to be' owner. Unfortunately since the 'Northstar' legal case in 2013 the environmental risk has gone up and ask yourself a question. How long does it take for a property to go to tax sale once people stop paying taxes?
I hope in the next year we are not facing the tax sale equivalent of a rabies outbreak.
The other thing that is apparent this year is there are obviously a large number of people who can tame unfriendly dogs or find friendly ones better then me. That must be the reason for some of the prices being paid. This in the longer term can be also dangerous. Why because it forces us to take actions we normally would not take by buying tax sale property we normally not consider.
Like deciding to buy a side of beef. No problem getting rid of the steak but you quickly find out that a side of beef has more bones then steak (by weight). To be successful you will have to use the bones and as I always say any idiot can buy them. The key is can you use or sell them. Be interesting to see about next March when my boss does the books which ones of Rob's figures will prevail in my case.
::) or >:( or ;D
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You're giving everyone a very vivid and graphic picture today!! Could be reality, I suppose.