Township of Archipeligo results.

[Dave2]

Still interest in waterfront properties. 

Winning bidder $155,000
2nd bidder       $116,000

total 16 bidders

anyone care to comment if this is a good or idiotic bid. 

[Ronster]

It's hard to say what the market value for this one might be, as it's water access to Georgian Bay has been affected by the low water levels.  I came in third, with a bid of $105,020.00.

[mike7]

Im still new to this, but would the mortgage still stay on after the tax sale? From what I found, the mortgage was higher than the minimum bid.

[Tri-Target]

Im still new to this, but would the mortgage still stay on after the tax sale? From what I found, the mortgage was higher than the minimum bid.

Mike,

In Ontario, the mortgage will only survive a tax sale if the mortgage company is a Crown corporation, for example the Business Development Bank, The Minister of Finance, Farm Credit Canada, etc. This means Provincial and Federal Interests.

If the mortgage company is not a Crown corporation the mortgage will be eliminated by a tax sale upon successful registration of the deed/transfer.

If you require more information on this just send us an email @ info@tri-target.com, we're here to help!

Kindest Regards,

Jay Trickey
Tri-Target.com

[Dave2]

It's hard to say what the market value for this one might be, as it's water access to Georgian Bay has been affected by the low water levels.  I came in third, with a bid of $105,020.00.  

This was one of my concerns so decided not to get serious on this one. (Plus I was distracted by another far bigger one recently. How is that for a hint>) Trying a get a serious reading on water conditions at this time of year is suicidal.  

 Of course having a water access only tax sale like Island J is even worse.  Why can't they wait until reasonable boating weather. Guess if I want to bid it I will have to rely on one of my tennants from Dave's folly. (see photo)

[David1010]

Being a long time cottager in the area, and owning property near there. (Only made it out there at dusk, and couldn't stay long.)  I'll risk an opinion.

Its road access, big plus.
It is quasi waterfront, with matching zoning, a plus
Current water levels only allow a canoe, kayak or john boat through the culvert, a negative.
There is a upscale boat launch not to far away, a plus.
On going annual road development charge from township for reserve by-pass, a negative.
The route from the Hwy 559 cutoff on Hwy 400 is 28 kilometers of winding road, a negative.
Nearest retail store, Parry Sound.  There maybe a seasonal variety store in the community, but its not on the road in.
The build dates back to just around the same time that the OBC was brought in.  This could be a disaster, as many of the contractors of the area were pretty questionable for best practices, a negative.
Siding looks to be original and untreated, windows are mostly original and seasonal quality, negatives
Getting pretty dark at this point, the dreaded interior joists becoming exterior joists for deck support.  Disastrous rot may result from this economical design, negative.
Current assessment and tax rate will push the taxes up there for what you're getting, a negative.
Has a built in garage, done with permits, a positive.
Looks to have been rented for awhile, so interior condition is suspect, a negative.
No record of a drilled well, and likewise for most neighbouring parcels, means high probability of a dug well or lake intake, a negative.
Block foundation looks to be in good shape, which is something for that area, a positive.
Marginal driveway, a negative.
Buried electrical feed, positive.
Just shy of 2 acres, positive.
Building has southern exposure, a positive.
Georgian Bay is just right there, a positive.
Not a lot of crown land in the area, for day tripping, a negative.
Some of the property has been cleared, while the western portion, towards the main road is forested, positive.
The grade of the property isn't to steep, but sufficient for drainage.
Maybe issues with up-slope drainage, a negative.
Building removed from main road, a positive.
Newer septic system, a big plus.

You have just driven 3+ hours from Toronto, I found the drive, with packed snow and ice a little stressful.  In the winter the road is known for being closed by weather and downed trees.  You have a neighbour to the east that's with in spitting distance or beer can striking distance, and across the river are several highly visible properties.  Some people will like having a few neighbours, particularly as they get older.  For me the area is a bit over developed, with quite a few 1 or less acre parcels.  The township has zoned a couple of parcels as "coastal residential - holding", I believe this is their way of stopping any further development.  The sheltered water areas have in recent history had problems with toxic algae blooms.

Around the corner a vacant parcel sold at a tax sale last year for a little more than the minimum bid (8K?), and I believe there was only 1 bid.  MPAC assessments of other vacant parcels is surprisingly low.  Several other developed properties in the community have failed to get their asking price, mostly the listings expired.  Also they were true water front.  Given its age and condition it won't be an easy flip.  The majority of reasonably timed sales in the Parry Sound area, are much more expensive, but, they're water front, and the buyer can walk-in, do nothing if they like.

So did the bidder do ok?  Depends on what they're aiming for.  If they just wanted a seasonal cottage, that's a bit rough and needing mid-range repairs, at $155, eh, they're right on the edge.  Maybe 35 below retail.  To get better and not pay more they'd end up over in the Burk's Falls or South River area or further east, not Georgian Bay.  If they're looking to flip it at 250, won't happen.  I've seen much better, for less, sit for a couple of seasons before selling.

So there's my opinion.

[Dave2]

Being a long time cottager in the area, and owning property near there. (Only made it out there at dusk, and couldn't stay long.)  I'll risk an opinion.

So did the bidder do ok?   If they're looking to flip it at 250, won't happen.  I've seen much better, for less, sit for a couple of seasons before selling.

So there's my opinion.

Dave:  

Excellent post.  You just confirmed my original opinion to sit this one out.  
Better opportunities will come up to spend my money and sometimes you just have to be patient and sometimes take your lumps and let others learn there is a reason why tax sales go for the prices they do; the hard way.
 
Oh well back to the archeological dig.  Wish I was headed south like one of members to build sand castles and go bare hunting.
 

[David1010]

Thanks Dave.

Whether its retail or tax sale I frequently find my jaw on the floor with some of these bids and offers.  Many times I find myself questioning my valuations, am I missing something here?

[RaisinBoxx]

In total agreement with David.... have been flabbergasted a couple times this year when it came to getting out bid by a land slide
I wouldn't say valuations are off, but i can say for sure... there are a lot more players these days than a bunch of years ago; Could that have something to do with the increase in competition and high bids? maybe its just where i'm looking but close to the minimum doesn't seem to be an option in my neck of the woods anymore

[ErnestBidder]

 Anyone think Asian bidders, working through an intermediary, on some properties? Was visiting a chum recently, buyer's agent called, for serious discussion re chum's property, opening mention of $X; you know when they open with $X, as part of a land assembly, you are really, in the end, talking 2X up to 4X. there are a LOT of properties being bought for bigbucks, and it will continue to be so. Folks from China (and surrounding) and India think we are just giving it away, and maybe we are. Nothing I can do about it: don't have the necessary to fling about. However, my friend, the 1/2 Powerball winner .....    ;>))

[Dave2]

Thanks Dave.

Whether its retail or tax sale I frequently find my jaw on the floor with some of these bids and offers.  Many times I find myself questioning my valuations, am I missing something here?

You are not missing anything.  Its a tax sale and if you want something predictable call your friendly real estate agent.  

Whether you miss by an inch or a mile the effect is the same.

If you measure stupidity by the amount you exceed the second place bidder this year I had the worst one I ever bid both in dollars and percentage terms.

I had another one that I missed by $200 and come in third.  

I also spent several hours drifting down a haliburton lake, being confronted by an owner with big dogs and asking my lawyer if what we saw on title was a money laundering operation.  

Compared to others I consider myself lucky.  One of our regulars and a guy who kicked my ass several times this year for a time had even worse luck.  He lost one property because his bank filled out the draft wrong and two others because the courier was 10 minutes late.  

The market is constantly changing and we have to adapt to it.  Personally I think sometime in the future I will look back at this year as the calm before the storm knowing what I know is coming in terms of competition.  It is going to get brutal out there.

Of course if you add the 13,000 changes to the Ontario Building Code that is effective in 2 weeks and the change that the Ontario government did last month (they changed something that had existed for 50 years) and I am scrambling to protect myself before I tell everyone. 

[RaisinBoxx]

Dave,

Are you referring to the blanket increase in development charges province wide?

I am reading something about this now. You're right about the calm before the storm, things just keep getting more interesting.

[dd143]

I am not up to date on recent Provincial development changes....could you help give an overview?

[Dave2]

Dave,

Are you referring to the blanket increase in development charges province wide?

I am reading something about this now. You're right about the calm before the storm, things just keep getting more interesting.  

Raisinbox:

Not development charges, more narrowly focused but can impact me somewhat hard. Development charges can hit us all, but this happens to have more impact on me personally. 

The problem is that if I tip everyone off I will get trampled in the rush for the exit, so want to take care of myself personally initially. 

This like so many of these changes is they are material and they happen without warning and the government seems to assume people can instantly adapt.

[RaisinBoxx]

Dave,

I completely understand your reasoning.  I am hoping whatever it is, that the repercussions are nominal to say the very least. I think I have an idea of what you are referring to but
I will wait for you to share the information to confirm my suspicions
Instant adaptation ... if only it was that easy. 

Rich