Oshawa property

[speedfreeksteve]

Unlike Elliot Lake (when the Uranium mines closed)...or Flint Michigan (if you get a chance check out the film by Michael Moore ...  I believe it was called 'Roger & Me')...or your logging town,  Oshawa is hardly a 'one horse town'.  A decrease would be expected in the event of GM closure, however I don't believe it will be as severe as you predict. 

And Yes, people have been paying far too much for properties that you can't even inspect...and likely have many problems. 

I wouldn't call it a one horse town, but I would (like Alliston) consider the property price levels to have been inflated due to the factories being there and middle class workers making white collar money.

Because of the rest of the GTA, I wouldn't expect a nosedive in prices, but definately a short term oversupply if people move away when the jobs dry up.

[Sasha]

A lot of the 'blue collar' workers are making more than white collar workers.  Unions started to prevent workers being taken advantage of and poor working conditions, nowadays its the other way around.  I know a lot of people with Bachelors and Masters degrees making less than truck drivers and GM line workers.
Still, the closure will have an effect on house prices.  The prices are going down all over the country (been reading the newspapers) and the towns/cities with manufacturing losses will see the most dramatic decreases.
When I bid for Oshawa a year ago, the guy sitting beside me also saw the place when it was mls and wanted to buy it and rent it out, he bid quite high since he had thought of buying it anyway when it was mls.  If its the same place.

[Markpls]

My wife and I stopped by the Oshawa property today.  It looks in good shape from the outside.  I talked to the neighbour and he was telling us that 30 people have looked at the property today alone!  The home has been vacant for 4 years and the hydro line is cut to the house. 

The location of the property is right off the 401.  This is a good location for many people who commute to Toronto everyday.

[lonewolfsek]

I'm sure there have been over 100 people doing a thorough investigation on that property. It won't go for less than 155,000. I personally ran an in depth history of the owner and have a good idea of what to expect inside. I have given up......mostly because I can't come up with that kind of money..... anyone good for a $1000,000 loan? Who ever gets it is should make $10,000 - $15,000 profit.

[Pfm1011]

"Who ever gets it is should make $10,000 - $15,000 profit.

Why in the world would anyone risk 150 or more for a lousy 10 to 15 profit?    If you cant see 30 to 50 points minimum on a taxsale deal, I would not waste my time.


4 years no hydro, means frozen and broken pipes, severe mold infection etc..The house was bought in 70, looks like a divorce or death of wife  in 83.    Kitchens and bath(s) will be decades out of date ( probably only one bath) There will be 50k MIN in repairs to bring it up to speed. The area sales are in the 160 to 225 range but latest is 175 closed  2 weeks ago  ( 225 last year was an overpay)

Dont waste your time or money on this one. Unless you can come in around 100k there is no deal here but that wont happen as some dreamer will pay way too much on this one. 

[Apex]

Pfm1011 you are right. I was in this house a year ago and if anyone wants to flip it and make money they better not pay more than $100,000 for it. Needs total renovation inside and as I said earlier there is a slight mold problem. I am not bidding on it this time, someone will surely over bid on it. Housing market in Oshawa has taken a bit of a hit. I've been trying to sell a flip of mine in Brooklin and am getting offers $25,000- $30,000 below asking. Looks like I'm going to lose my shirt on that one. Good luck to whoever wins this bid.

[Pawel]

Just a quick comment about east GTA - All of the media coverage would indicate that land values have already declined, yet in fact the year-over-year prices have increased in all Durham municipalities except for Whitby. The year-over-year housing supply has also increased and one could assume a levelling of prices over the course of the next 18 months, but I just wanted to point out that the situation is not as bad as the media illustrates.

[Watcher]

hello

Results from Oshawa sale TODAY

28 bids (1) rejected

1) 138,925.00 paid way too much
2) 121,900.00
3) 121,100.00
4) 110,000.00

Apparently the guy offered it for 10,000 above price plus the land transfer.
Don't think he realized he would owe the taxes and also there was a 20,000.00 lein put on the property Aug 25,08
Good LUck Too the BUYER...LOL

[Pfm1011]

Silly, but not as not as silly as I thought it would be.  I figured someone would go over 150, ( If the lien is valid they went 159 but Im guessing not knowingly)

Who put the lien on the property at the 11th hour? If it is valid, going to be impossible to get out of this deal  alive unless you can do all the work yourself and you get very very very lucky.  I feel sorry for the bidder if they didnt know about the new lien when they bid. Not a nice surprise at all

[speedfreeksteve]

I've definitely seen worse for a tax sale.

Hey it's not like the guy threw away a boatload of money for it. Last time I checked you can't get a condo in the GTA for that price.. at least anywhere you'd not be scared to live.

Probably just a GM worker blowing a years pay.

[Sasha]

Whoever got the place won't be able to 'flip it' for any profit, they probably want to hang on to it for a while.  The comment regarding the GM workers, I know of a truck driver making more than 100K per year (yes his job is dangerous with long hours and lonely since he does cross Canada and drives to U.S) and a guy with an MBA working as a director of a large corporation (where everyone has at least a Bachelors) and making 80K and he had to work his way up to the posiiton.  I guess its all in how you sell yourself, talked to a miner today (actually a geologist with a Bachelors in Geology) got a very high position with an exploration company that will probably be eaten alive by Goldcorp (a company with no debt and billions in cash assets operating at a huge profit, for now) and though his company is operating at a loss and has been in the past few years, he makes enough money to buy an island, which he just bought (no wonder the company is operating at a loss if the employees make enough to buy an island).  I'm still waiting for an island to come up on tax sale.