Downsizing Dangers Selling Your House - Unexpected Losses
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- Опубликовано: 27 июл 2024
- You need to know this it could ruin your retirement, rising inflation brings dangers to the housing market, buyers are being caught out with falling valuations making closing on a house purchase difficult. House prices for the first time in 5 years are starting to fall, rising interest rates are slowing the housing market.
If you make an offer on a home and the valuation comes in low, you have to have the money to cover the difference, most people don’t have that level of money.
House prices are starting to go into free fall as interest rates rise, don’t be caught out with paying too much and finding the bank’s valuation is nowhere near what you offered.
Join us for a discussion on this and we will tell you about a solution to keep you safe.
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Happy Saturday Norm and Tina; this is one of the most informative videos you’ve done so far. Such a critically important message with house prices falling the way that they are. Thanks for always being on point and clearly addressing current and relevant issues. Enjoy the beautiful weekend weather. Cheers!
You are so welcome! Libbyann have a wonderful weekend Cheers 🍷😎🌺🌞
Yes you highlighted the pitfalls of selling a property in a over heated market very informative seller beware !!!
@@keithrodgers1030 Thanks Keith
@@ThisIsOurRetirement Please monitor the responses to our comments because someone is soliciting. Thank you.
@@everetteborr From time to time we get imposters on our comments we try to delete them quickly, often they come in the middle or our night.
Offers should always be subject to loan/finance approval! That’s just common sense! I have never made an offer without a finance clause, regardless of pre-approval status!
Yes Carol we agree, the point we are making here is putting a valuation clause in addition to the finance clause.
Have a great weekend!
I blame some of this on realtors not including this clause in the buyer’s offer.
Here (in Denmark) the buyer usually has a lawyer go over the contract and the lawyer will insist on clauses for stuff like a building inspection and financing. Additionally there will usually be a fallback clause stating that the purchase is contingent in the lawyer approving it. And the lawyer will make sure everything else has fallen into place first.
@@vejlin Sounds like great plans in place in Denmark 🇩🇰 Cheers 🍷🇩🇰🇨🇦😎
@@vejlin Hi, you must place a lot more trust in lawyers than what we do in Canada!
I absolutely love you two sitting down and having a coffee/tea and a snack, makes me feel like I'm sat across from you having a good old chat. Watching your very first video during covid did aspire us to sell our home in Ontario and buy a condo in Edmonton where are children and grandchildren live, we was going to sell in spring but I thought we should sell after Xmas before the market got saturated which for us was a good move, it's been a little stressful awaiting the oas etc but it as finally been resolved, we love our condo out here and thanks to you guys, we are now living our retirement. See you next week x
That’s wonderful Lynn we are so happy for you we too are near our son and grandchildren which is a big plus in also enjoying our retirement. We will add that having bought a trailer has also given us experiences that we could not have imagined. Yes when the OAS kicks in life is good Cheers 🍷🇨🇦😎🌺
Great video, we’re starting to see this in the states as well. Inflation is starting to nipped at the hot housing market and it’s slowing.
Yes it is going to be difficult in the housing market for the rest of the year.
That is really sad and just awful. I can’t imagine things being enforced that way. You two are very lucky to have the rent set up you do. Thanks for sharing this information.
You are very welcome Cheers 🍷😎🌺
Hi Tina and Norm! Again, great advice for all your viewers. Have a wonderful week. See you next Saturday, cheers! 🥂
Our pleasure! have a wonderful weekend Jel Cheers 🍷🌺😎
Thank You! I saw this all coming 3 years ago so we bought our smaller rural home far below market value and paid cash. I waited just a bit until we heard interest rates were going up, I priced my large home just a little below market value and boom got the offer, signed the deal fast with a quick possession date for the buyer. The down sizing is a horrific task that I never want to do again and my wife who wanted a small home doesn't like our new (old)small house.....lol. We are debt free, I have a few years of small projects to upgrade our new(old) house but, I can't rent for what our living costs are now food included! Stretching a shrinking dollar is quite a task but, it can be done.
We agree with you down sizing is very stressful and harder to do the older you get have a great weekend Cheers 🍷😎🌺
I love your channel, and always look forward to your Saturday videos. I am wondering how long you've been doing This is Our Retirement now. Great show today!
Thank you Nikki we started our channel on Feb 14 th 2019 , have a great weekend Cheers 🍷😎🌺
Only sell if absolutely necessary, for most it's better to keep & rent out for an income (if needed)...plus always having it as your base on returning home.
Thanks for your comment, for others the money from the sale funds their retirement we agree having a base to come back to is great whether it’s a house or apartment they are both home 🏡 Cheers 🍷🌺😎
@@ThisIsOurRetirement
Yes sure.
For me it's having a base as & when I require, plus its only increasing in value.
The main thing is, it's left in my WILL to the beneficiary to be kept or sold after i'm gone.
So many people didn’t pay their rent during the pandemic, though.
Agree with Norm, love the necklace! You both look great, happy and healthy. Enjoy the weekend!
Thanks Joyce! Have a nice weekend.
The hardest part of downsizing is you sell your big,beautiful house for a great price and then you end up buying a much smaller house for what you sold your house for.
Thanks for sharing! guess another reason we decided to rent Anthony have a great weekend Cheers 🍷😎
Yes that’s what we did but now only 1/3rd of the monthly costs….
What a great Heads-up. We had no idea. Very much appreciated!
~ Keep up the good work.
~ from Vancouver Island
Our pleasure! must admit Ben we were very surprised to hear it happening have a wonderful weekend Cheers 🍷🇨🇦🍺
Great advice. Never thought of such before. Often thought those clauses were kinda formality. Thanks for the strong reminder! 👍
We were also surprised too so just wanted to share have a wonderful weekend Cheers 🍷🌺😎
I never thought the home prices in my area would ever reach the prices people were asking. You were smart to do rent CONTROL. I would never consider personally, renting ever again. Glad it is working for you both. I did put my kettle on. Great show.
Thanks for watching Barbara, we always had a plan to sell our home 🏡 as we retired , when a person we met told us about how he had sold and then rented while investing the money 💰 we were so curious after looking into it , it was an amazing idea and we have never looked back especially with rent control .Have a great week Cheers 🍷😎🌺
Such a great, informative video. How sad this is impacting people's lives in such a serious, destructive way. As always, Tina and Norm are great!
Thank you so much! glad you enjoyed it Cheers 🍷🌺😎
Hello 👋 another great video ! I’m sure all the info you have provided will help many people . This is why I really enjoy watching you two. Have a great week 🍷🍺 small town USA 🇺🇸
Thank you so much! we really enjoy you watching our videos Cinde and hope we help others in decisions that they might have to make have a wonderful weekend Cheers 🍷🇺🇸🇨🇦🌺
Thank you for this video. Scary information and so important to be aware of. Thank you for sharing. "Dependent on mortgage evaluation" is a must.
You are so welcome! have a great day Robin Cheers 🍷😎💰
Glad I am in “stay put”. My paid off townhouse is working out great! Good advice!
Nothing wrong with staying put Beverly have a wonderful weekend Cheers 🍷😎🌺
Great information and thanks for sharing guys! I was unaware of these risks. Very valuable.
Our pleasure! have a wonderful weekend Mark Cheers 🍷🌺😎
Great advice guys. Scary times in the housing market. Hopefully things settle soon. Always great to see you x
Always lovely to hear from you Ren , the housing market is going crazy prices shot up double in the last two years now falling causing chaos. Hope all is well with you have a wonderful weekend Cheers 🍷🇨🇦🏴🌺
Canada was spared in 2008 but this time there is no escape.. Canada is the biggest housing bubble on earth and its deflating...
We agree it’s certainly a very scary time in the housing market Cheers 🍷🌺😎🏡
This is such great advice. I feel for people that got caught up in that mess...
We agree Kathi not a good place to be have a wonderful weekend Cheers 🍷🌺😎
Hi Tina and Norm. Very interesting video again. What a heartbreaking situation for many people. Good advice to insert that clause about the mortgage valuation!!! Thank you as always. 👏👍⭐
Our pleasure! glad you enjoyed the video have a great weekend Cheers 🍷😎🌺
Good stuff. We down sized a year ago. We sold for 20% over appraisal and bought at appraised value. We were able to do this with a bridge loan which allowed us to get a new home and the ability to get up to 6 months in our existing home without making monthly payments on our existing home. Good news is that both closings were within a week of each other and got a 3% mortgage.. This allowed us to add to retirement savings and we used part of the funds to personalize our new home. We no longer have the responsibility of maintaining, heating and cooling a 3500 sq foot home. Our costs are substantially lower and we contine to maintain the same income which increases retirement savings. Our retirement target date is in 4 years. Some may wonder why we keep investing in a down market. We are buying at lows which will recover and have greater returns with time.
Sounds like some great plans in place Paul , we wish you well in preparation for your retirement Cheers 🍷🌺😎
Great information on sell/buying a home with regard to mortgage evaluation. Oakville is going nuts, but it has levelled off.
We agree Nick all around Toronto is a crazy housing market at the moment have a wonderful weekend Cheers 🍷🌺😎
You Guys are always very entertaining with all kinds of fun facts and information..👍 You Guys Rock!!!😎
Thanks so much Jeff Cheers 🍷🎸😎
Hi Tina & Norm it’s very good you are warning people of this tricky situation I think is going to be a very tricky time lots of people say we are looking at a very volatile time .
Anyway have a glass of wine with me 🥂and take care 😊Christopher. Barker
We agree Christopher very scary times and yes it’s nearly time to toast you with a glass of wine Cheers 🍷🌺🍺
WOWWW! This is crazy. Thank you for sharing this important info ⭐hope you two are having the best weekend :)
Our pleasure! hope you having a great weekend too Cheers 🍷🌺😎
So glad you clarified the rent thing.
We have family with rentals and atm a small house in a decent suburb is around 30-35k pa rent with little security of residence.
Over here we have things that can be put in contracts such as subject to..finance, building and pest inspections or sale of existing property.
If someone else offers a similar price and can buy unconditionally then they will win the property most of the time.
Imo the most important thing with retirement is to not have debt and have sufficient resources to cover unexpected outcomes.
Absolutely we agree going into retirement with no debt 💸 we think is the secret for a happy retirement Cheers 🍷😎🌺
I am somewhat new here. I enjoy your info and videos. You should do a video about all of the BS the media tell soon to be and retirees about what they are supposed to do in retirement. Downsize, travel, travel, travel, move into a retirement community etc, etc. I am retiring at the end of 2022. I am very happy where I live in my mortgage free home. I enjoy some travel but nothing extreme. I am not taking a cruise around the world. And I believe moving into a retirement community is not healthy and would make me feel old in my opinion. I have a Healthy Young thinking mindset. These are my thoughts. Keep on making your video's. I enjoy your information-:)
Thanks for sharing Dan and welcome to our channel, thanks for the idea have a great weekend Cheers 🍷🌺😎
Housing prices went cray cray because borrowing money was "cheap". Some have been duped into thinking their homes will always appreciate. Well, not necessarily in a linear line. I hope it works out for those who bought in a difficult part of the pricing cycle. I feel blessed that I own my home and didn't ever factor it's value into my retirement plans. God bless to all.
Thanks for sharing Ray , although we owned our home our plan was to always sell and fund our retirement which for us has worked out Cheers 🍷🌺😎
Good advice, thanks!!
Glad it was helpful! have a great weekend Candy Cheers 🍷🇺🇸🇨🇦😎
Thanks for the warning.
Any time!
Great video Norm and Tina. I see many people getting into trouble just as your video says.
Thanks for watching yes it’s going to be very sad 😢 for lots of people Cheers 🍷🌺😎
Great advice...thank you.
Thank you Jan have a wonderful week Cheers 🍷🌺😎
Wow this was so very helpful. A point I hadn't even considered- although I am not currently ready to sell/downsize or rent, I am only a short few years away from those plans but you never know what will come up and make me consider it very soon........thanks Norm and Tina
You are so welcome Gayle , we were 58 and 60 when we took early retirement and so glad we did we would highly recommend it to anyone as none of us has a crystal ball 🔮 to know what the future will bring Cheers 🍷🌺😎
Hi 👋 guys thanks for helping our community of our age. I always watch your videos. Brooklyn, NY. 🇺🇸👍❤️
Our pleasure! have a wonderful weekend Ramona 🍷🇺🇸🇨🇦😎
@@ThisIsOurRetirement welcome friends! Stay safe and healthy. ❤️❤️
Thanks Tina & Norm for this great information.
Our pleasure! Thanks for watching Cheryl have an awesome week Cheers 🍷🌺😎
Valuable information from the lovely Tina and Norm.
Our pleasure! thanks Ann have a wonderful weekend Cheers 🍷🌺😎
Great message!
Thanks so much Annie have a wonderful week Cheers 🍷🌺😎
Holy moly! I'm getting ready to sell, so this info is very timely.... and useful! Thanks for sharing all this. And, yes, you are fortunate to find a rent-control situation. 👍
You are so welcome! glad it will be helpful to you Cheers 🍷🌺😎
Thanks for the great video. Very nice to see that the housing market is falling down quickly. This was suppose to happen with too much money printing and near Zero interest rates. Never put all your eggs in one basket.
Good point! thanks for watching have a great weekend Cheers 🍷🌺😎
Love your always interesting and fun videos👍🏻
Thanks so much have a wonderful weekend Cheers 🍷🌺😎
Thanks Norm and Tina for another informative video. Great idea of what to add to the housing contract to protect yourself as a buyer.
Glad you had a good cup of tea and snacks; I had a cup of Irish Breakfast at 11 AM.
Always enjoy your sense of humour. Carry on!
Our pleasure! glad you enjoyed it Chris have a wonderful weekend 🍷 🇮🇪 🇨🇦🍺
Thanks for the videos! We have booked a winter in Albufeira because of them, right next to the Pingo Doce. My wife is looking forward to wine carafs as Tina recommended lol
Awesome Joel we hope you have a great time!
What a crazy scenario. Thanks guys. Cheers
Yes it’s a very scary time have a wonderful week Cheers 🍷🌺😎
Hi T&N what sad news I feel bad for both the seller&the buyer.Here in New York it was announced that the median rent has gone up to 5000 us$a month, in the. outer boughs it is less but not by much.I feel so bad for our young people.Stay safe and see you next Saturday.
Wow that’s staggering numbers 😱 for rent Barbara ( we wouldn’t be renting at those prices ) have a great weekend and see you next week 🍷🇺🇸🇨🇦😎
Thank you for sharing these ideas. We've been thinking of downsizing because we are older and the yard is too much, but all
these things are concerning. If we sell/buy, we will have a lawyer look things over legally.
Thanks for watching when we sold we then decided to rent an apartment and it’s been wonderful, yes you need a lawyer when you sell but we like you wanted to get rid of yard work and unexpected maintenance and expenses of home ownership we wish you well it’s worth the effort so go for it Cheers 🌺🍷😎
I've just scrolled broadly along the posted comments and see no one mentioned your yummy treat. Those almond fingers are a delight. We call them 'kanos'. Just thought I'd mention it 😉! Another HOT ITEM on the retirement list of things to know: Now about downsizing. We downsized and bought our apartment almost 7 years before retirement. It was financially a better option than renting. With the changing world, countries trying to recoup their financial losses due to COVID, rental agreements aren't safe like they have been in the past. It pays to research in depth in your own country/state/city what your best options are. Great video- Now what will I get to watch tomorrow? I'm early. 🥰 🍷 😎 🇳🇿 🙋♀️ 🇳🇱
Thanks for joining us on Saturday Anita , we love almond fingers we agree had we not had rent control in Ontario we would probably have bought an apartment too.We have been spending time at our trailer ( see next weeks videos) and just enjoying the summer hope you are too . Have a great weekend Cheers 🍷🇳🇱🇨🇦😎
Yet another impressive video.. this time unique as a lot of people are unaware of this .
For a lot of us our house is an investment we count on.
Thank you team for putting it together
Interesting to hear about Canadian real estate law. I'm in the US and there are myriad ways to get out of a real estate contract, right up until the very end, on both the buyer and seller sides. I know of a sale where the seller changed their minds and simply didn't show up at the closing meeting. The buyer had little legal recourse. In the US, I don't think it's possible to force a house sale (except for foreclosures, of course).
Thanks for sharing Carol have a wonderful weekend Cheers 🍷🇺🇸🇨🇦😎
Moving is very stressful and troublesome. In the UK things are different as there is actually no commitment until exchange and in a lot of cases downsizing does not involve mortgages as the family home is paid for. There are many other issues however and a lot chains fall through with the whole chain being out of pocket having paid for valuations and other costs.
Thanks for sharing Simon we agree moving is very stressful and harder to do the older you get , have a wonderful weekend Cheers 🍷🇬🇧🇨🇦😎
Good information for People who haven't or didn't educate themselves on the legality of a buyer seller contact in this crazy market.
Staying safe I personally haven't been in a store since the late Fall of 2019 and won't untill the Covid virus calms down or stops its virulent mutations. When it goes to just a cold status state then I'll feel safe.
You guys are looking great.
Yes it’s a crazy market in homes 🏡 at the moment, hope you have a wonderful weekend Cheers 🍷🌺😎
Running a day late on watching your video guys. Love this topic. Never, ever use your home as a retirement fund. You have no idea where interest rates will be, what the market will be, etc. Obviously, we look at our home and say to each other, it's worth this or that, but it's all bonus money. I will never jeopardize our future retirement by assuming our house will fund it. See you next Saturday.
Thanks Mark have a good week, see you next Saturday.
Same is happening in our area near San Diego (as well as almost everywhere I imagine). My wife and I are recent retirees and secure in our funds but homes in our neighborhood ($1 million+) that were selling within days are now sitting for up to a month with price drops. If I were in the position of buying I would absolutely put an appraisal contingency in my offer. The problem with that of course is a buyer is going to look at all cash offers first and then no contingencies.
We agree the housing market is very scary at the moment , also prices are dropping really fast causing many problems if you have made an offer . Congrats 🥳 Mike on your retirement we hope you are enjoying it Cheers 🍷🇺🇸🇨🇦🌺
Yes right- I am in North County area of San Diego and thinking of downsizing. I have a 4,000 sq ft custom home -mortgage FREE- 12 years old. Homes closest to me sold in days for $2.7 million and $2.9million in 2020 & 2022. All cash offers. So I thought wow great news for me but now I am not so sure.....
Excellent points! My wife and I were looking to relocate this past spring (in the US) in preparation for retirement but ran into what can only be called insane bidding wars (before the valuation issues you discuss) -- GREAT as a seller, horrible as a buyer -- and decided to sit out the market for probably 2-3 years. In hindsight, one of the best decisions we've made! It's taken a load off of our minds and now the market is softening in our target area.
The market is volatile at the moment, when we sold then we rented and haven’t looked back maybe that might work for you Cheers 🍷😎🌺
Interesting that you’d consider moving to the US; there are so many retirees from the US moving abroad (e.g, Portugal) because the can’t afford the cost of health insurance in the US. It’s a mad, mad world!
@@libbyannstew8775 Sorry, wasn't clear -- I meant to another state in the US; wouldn't move here if I could help it!
@@13noman1 No apology required - I made the assumption that you’re in Canada. I hope you can find a suitable place to relocate. All the best on your search!
You two are so Quaint - extremely good advice.
Thank you kindly! glad you enjoyed it Cheers 🍷🌺😎
Situation sounds almost like a tall tale, amazing how the fear of missing out will drive people to make bad decisions. No home purchase should be made without conditions dependent on financial approval and home inspection. And the 1% the BOC announced this week came as quite a shocker😱
The housing market is very scary at the moment Cheers 🍷😎🌺
Oh my! I hope this changes in Canada. We are in the US and have never purchased a home without a financing contingency. We just signed a contract last night to sell our mountain vacation home and only accepted a cash offer partly to avoid the potential appraisal situation. We've loved having a second home but want to travel more - planning a trip up the east coast to Maine and into Canada late spring next year! Thanks for sharing Tina and Norm. Have a nice weekend!
Cash offer is good , funny you are selling and we are just really enjoying having a second home with our trailer , you are more than welcome to visit Canada 🇨🇦 anytime Cheers 🍷🇺🇸🇨🇦🌺
Yes you are right it’s lovely to go to a place that we feel is our own , we will enjoy while we can and we wish you well with your new plans of travelling Cheers 🍷🇺🇸🇨🇦🌺
Hi Kris M.....you went with your gut about selling your second home👍Two sets of taxes and other expenses💰do drag on people. You know when to sell, invest the money, and travel when you want (and pay for it when you want...not all the time). All the best! 🤗
Agreed. And interest rates are up which requires people to think a lot harder about buying.
Thank you for this practical advice to add to a contract when we want to sell our house!👍
Our pleasure! enjoy your weekend Liv Cheers 🍷🌺😎
You guys are legit content providers! 🍻
Thanks so much
Awesome topic. 👌 Downsizing is the key 🔑 to success. Congrats on reaching 50k subscribers...more coming your way!! Rent has skyrocketed.I read Miami is up 48 percent! Pure insanity. Wow your example was a superb nightmare. Nobody shares this with buyers...frightening!
Yes! Thank you! 🥳 glad you enjoyed our video Johnny Cheers 🍷🇺🇸🇨🇦🌺
I am a realtor here in Colorado, USA and it is critical you have put financing contingencies and selling contingencies into your contract. Here USA we do have appraisal conditions in the contract. We often put in contract selling is contingent on finding a new home OR selling your existing home. If value drops you should be able to negotiate a new price with seller if the value does not meet appraisal value. But, if you really want a home you will waive appraisal condition, but only if you have the cash to pay for it. ALSO, lock in your interest rate when buying with one time ability to drop to current rate if interest rates fall. This has been a tricky time to help buyers and sellers coordinate a move up or a downsize and you and your realtor must think of how you will navigate this market. The huge run up in prices was driven by extremely low interest rates and created a wild market of people offering well over asking price which was not normal historically. I do know in Toronto bidding well over asking was going on for years. But, here in USA, it was unusual and only began late in 2020/ early 2021 with much lower interest rates and people needing to work from home.
Thanks for sharing Diane , Toronto has gone crazy with multiple offers over asking and no conditions 😱now wth prices dropping these problems are occurring have a great weekend Cheers 🍷🇺🇸🇨🇦🌺
"We often put in contract selling is contingent on finding a new home OR selling your existing home."
Sellers don't like these sorts of contingencies, especially contingent on finding a new home, and especially in a competitive market.
"If value drops you should be able to negotiate a new price with seller if the value does not meet appraisal value."
That's why a smart seller will require that a buyer will increase the down payment to cover a low appraisal, up to a certain amount.
"The huge run up in prices was driven by extremely low interest rates and created a wild market of people offering well over asking price which was not normal historically."
Nobody seems to realize that mass immigration plays a huge role too. It's simple supply/demand.
"I do know in Toronto bidding well over asking was going on for years. But, here in USA, it was unusual and only began late in 202"
It depends on what city you're in. When I was searching in the Seattle/Bellevue area in 2016, every house had at least 20 offers within a week. Buyers were offering $100-150K over asking on $800K homes.
But closing conditions won't prevent a buyer from failing to close, even after asking for innumerable extensions. Meanwhile the price drops or the market goes dead. Plus resolving the failure to close will involve a lawsuit over the deposit...
@@joevarga5982 Yikes 😱 thanks for sharing Cheers 🍷🇺🇸🇨🇦😎
@@Jane-xt4lu Thanks for watching Jane have a wonderful weekend Cheers 🍷🌺😎
I love your videos. I am still in my townhouse here in BC and having no mortgage makes my expenses for maintenance etc is very good. In BC the rent would be very high and uncontrolled.
That’s fine and if we didn’t have rent control we would downsize and buy something smaller too Pat have a great weekend Cheers 🍷😎🌺
One other risk to renting is you have a place to live at the pleasure of the landlord. A number of tenants especially older ones who have been in a unit for a long time are finding themselves being asked to leave. With ether the excuse of the owner needing the unit to live in or wanting to renovate and a lot of these units are getting converted to short term rentals that net the landlord much larger profits.
In Canada tenants have very limited recourse in these cases. It's something someone deciding to move from an owned house to a rental needs to consider.
That is why we rent from a large corporation that has over 90 buildings, their business is too rent together with rent control we do feel in a good position Cheers 🌺🍷😎
We had thought we would leave the suburb we live in and retire to a quieter country town. But having spent some time in a country town of our choice over the summer we have changed our thoughts. Out suburb has buses, doctors, library, trains, several differing shopping centres, theatre, national park, bike paths and a good sized rate payer base to fund the council. So no having to consider the costs of moving or the higher cost of a new home. Instead we will do some work on our house and sit pretty.
Thanks Amanda for watching and sharing your thoughts, it’s good that you thought things through.
Or move to a smaller house in your neighborhood. It’s a lot to manage and clean once you get older.
@@sct4040 That would be a waste of money as the smaller house would cost the same to buy as ours to sell and there would be buying and selling costs. Better to hire a gardener and cleaner.
What a crazy way to buy a house! As you may remember the process is different in England and the whole process is 'subject to contract' so that the property is valued by the lender prior to exchange. Also interesting that house prices are falling in Canada. The latest house price index in the UK shows an increase over the past year of just under 13%.
Indeed it is crazy Richard this is a new thing caused by huge increases then pricing now dropping very quickly Cheers 🍷🌺😎
You two are a very pleasant couple to listen to. I will be entering retirement soon and in the future if you find yourself RV'ing around the states and we cross paths, a bottle(s) of wine is on me. Cheers!!
Thanks for the lovely offer and we wish you all the best for your retirement Steve Cheers 🍷🇺🇸🇨🇦😎
We have rent control in the San Francisco-San Jose Bay Area!! In California, once the buyer-seller settles on a price for a house, an escrow account is established and both parties are legally bound to execute the transaction! The buyer cannot go back to the seller and try to renegotiate the price.
That’s sounds like a great plan Frank Cheers 🍷🇺🇸🇨🇦😎
We downsized but up priced!! However our monthly costs are 1/3rd of what they were
Very interesting the buying process in Canada plus rent control. Seeing Pink Floyd T shirt made me think of the song by them 'Money' very apt choice of T shirt considering today's topic. My favourite Floyd song is 'See Emily play'
So glad you enjoyed it have a wonderful weekend Cheers 🍷🎸🍺😎
Very interesting. I see a lot of house sellers now starting to drop there prices. I guess when you do get ready to buy do your homework make sure you list everything in that contract.
Absolutely! we agree Mike have a wonderful weekend Cheers 🍷🌺🍺
Wow! I wasn’t aware of this situation is happening! What a mess!
It was news ! to us too Dennis 🏡 very scary Cheers 🍷🌺😎
Hi Norm and Tina: Great shirt, Norm, and necklace, Tina! We saw Roger Waters last week. What an epic concert. We will be selling and renting, like you. A mortgage Pre-approval is a must, from the Buyer and a bigger down payment may be required from the bank. We had one, when we bought.) Also, we will already line up a place to move to/rent in advance of the sale. A good real estate lawyer and reputable agent are very important for a smooth transition. We are holding steady, and waiting for a while before we sell. House prices have doubled lately, and will go up again, once our mini recession has passed. Cheers and hope you are joying your trailer. We were looking at some last week. That’s another rabbit hole, with constantly changing conditions and hidden fees. Park fees have gone up and there’s lots of fine print. A pad fee of $5000? Perhaps another updated topic…..?
It’s great you have a plan Paul and we wish you well when you sell , we don’t have a pad on our trailer but we think they are around 2-3 K with us ( still a great deal ) as we are really enjoying the trailer see next week’s video!! have a great weekend Cheers 🍷🌺😎
A buyer if they wish not to proceed with thier purchase offer can renege on their offer but it will cost them their initial payment typically 10 20% of the homes value. When you proceed with the offer the buyer has to put down a payment to secure the home but if you can't follow through you have to eat that loss.
With a 1% rate hike in Canada this week, sellers will have to drop the sky-high prices that their neighbors were asking and getting January February March of this year. In the community of where my husband and I live in Southern Ontario prices have been dropping 50,100,150,000 dollars.
Good topic !!
Glad you enjoyed the video Shari , yes it’s crazy what’s happening at the moment with pricing that’s why we thought it would make a good topic have a great weekend Cheers 🍷😎🌺
The other thing to note, if it hasn’t already been said, is that rents in Ontario are high and rising more as house prices are decreasing. I know someone who just rented a townhouse for $3000 per month. That would be a lot to handle, especially in retirement
Think it’s all relative we started to rent 7 years ago and haven’t looked back our rental is very reasonable and we have rent control so that’s great Cheers 🍷🌺😎
I retired last year from New Home Sales. After 40 yrs in the business, I knew what was coming and didn't have the heart to watch the market crash. It was sad enough in 2008. My former sales partner called and said he hadn't had a sale in over 5 weeks. Thats a killer for a builder. Dark days are coming. Take care!
Yes we are sure dark days are on the way in the housing market both for builders, buyers and sellers we hope you are enjoying your retirement Cheers 🍷🌺😎
In Australia we often have a clause in the contract/offer "Subject to finance approval" So if you can't get the finance you lose your deposit but that is all.
We have that too Maxwell, we were warning that when house prices fall (bubble bursts), you need to add an additional clause "subject to valuation"
Wow... Reality sets in... All bubbles burst at some point. Nasty if you are caught up in this but there are ways to protect yourself. Thanks for sharing.
You are right Jim and people should be careful, have a nice week!
Thank you for this oh so interesting video. I am not in the game as I am a European renter. But the video and all the comments help to understand the Anglo-Saxon mentality of buying and selling and speculating with their homes. Been observing it for 50 years.
We too are like you but Canadian renters , this is the first time we have rented and love it before we retired we had always owned a house Cheers 🍷🌺😎🌏
fyi @ 2:36 can't speak for UK but In USA, rent control regulations are in fact enacted in some five states, plus the District of Columbia: New York, New Jersey, California, Maryland, and Oregon. Also in US @6:50 the bank/lender would typically lend on appraised valuation (the lower), not the higher selling price. There are "appraisal gap" strategies being used by some astute mortgage advisors, which might help "rescue" such deals.
Thanks for sharing have a wonderful weekend Cheers 🍷🇺🇸🇨🇦🌺
I am glad I bought a small apartment in a neighborhood I want to retire in. It’s proximity to everything and mass transit. It’s lonely retiring in an isolated place.
That’s wonderful you are retiring to where you want to be, being in the country was isolating for us.
We had grandkids raised in area knew we would retire soon haven't replaced but for selling so nothing needs to follow us but personal items. I have the bay window with good tokens and tell family and friends to take what they want.
Good luck thanks for sharing Cheers 🍷🌺🍺
In the US, we can put a clause in the contract pending on the securing of a loan. If the loan isn't approved due to undervaluation, the buyers are not bound by contract to buy the house at a loss.
That’s good to know Danh, everyone should be using these conditions, but in our housing market buyers were not accepting conditions because house were selling instantly, now they are slowing down.
My old unrenovated house in Sydney was worth about AUD$2,700,000 earlier this year & I know, it's come down by at least $300,000 since then. Im a realist on its value. A residential property in Australia is not included in the aged pension assets test. I'm planning on retiring in the next 2 years, before I get to old. I'll never get the aged pension in Australia, because I fail the assets test, even if I keep my house. However I now many people who get the aged pension, who won't downsize, in fear of losing the aged pension. I don't mind keeping my old house, it's a lot of work to maintain, with large gardens. I'm single & I'm not into gardening. Prefer to travel & not worry about the maintenance & security of an old house.
Thanks for sharing yes we have heard about the means test in Australia 🇦🇺 seems so unfair we don’t have that in Canada 🇨🇦 Cheers 🍷🇦🇺🇨🇦🌺
Unfortunately rent control in Ontario is only in place for buildings built before 2018, which means we can't consider any of the new builds because our income won't allow random rent increases. 😢
No but there is lots of choice of buildings before 2018 Cheers 🌺🙂
Hi Tina and Norm. From Burlington Ontario. A very interesting topic. Have bought and sold with unconditional offers > It would be such a mess if the prospective buyer reneged on the contract and I suppose having a decent earnest deposit may help and you would have to wait till close to re-list the property to mitigate any loss beyond the deposit . Wonder it the prospective buyer could also be sued for the real estate commission ? Lots of fun not !
Thanks for watching from Burlington Stephen hope you have a wonderful weekend Cheers 🌺😎
Buying in the UK is SOOOO different than the US. We learned the hard way how many transactions fall through in England. There is not a binding contract once an offer is agreed upon… so frustrating!
And yes, the appraisal game during a booming real estate market is insane! 😳
Yes very different housing rules in the different countries Cheers 🍷🌺
Hi Tina and Norm - another interesting episode. I'm afraid the best thing to do is not for buyers to try to insert a falling-market condition in their agreement of purchase and sale, as this could cause massive commercial uncertainty, and thus defeat the very purpose of having a legal contract to begin with. Only a very desperate seller would accept this type of clause in any case. The best risk mitigation strategy in a falling market is to set a very short closing date so any market movement can be absorbed by the buyer. Or stay out of the market until market conditions become more certain. Have a great weekend!
Definitely unusually times at the moment Francois have a wonderful weekend Cheers 🍷😎🌺
as a seller, I would never accept any offer conditional on appraisal, just sayin'.
@@glenkay4478 Absolutely right. It's a recipe for commercial chaos! We have enough of that now with high inflation.
Happy weekend Tina & Norm 🏴🍷 🍺🇨🇦 😎
Thanks Rachel hope you are enjoying a nice weekend too Cheers 🍷🏴🇨🇦🌞
These are strange and different times we live in ‼️‼️
No kidding Andy lovely to see you have a wonderful weekend Cheers 🍷🌺😎
People need to look ahead and see if there is a possibility of the shortfall with appraisal going to happen and reevaluate their plans, like do a subject to finance clause always.
Thanks for sharing Mike Cheers 🍷😎🌺
It helps, doesn't completely make the problem go away, if you don't try to leverage your buying power so much with mortgage.
The way it usually works in my country is that banks calculate with their customers how much debt they can reasonably afford. Banks get some guidance from the finance authority controlling banks and other financial institutions. The idea is to prevent banks from taking on too much risk. Regulators also demand banks also to have similar risk management processes for their mortgage customers.
And when buyers need to have also their own money and not just mortgage, then this creates more margin for market prices to come down without going below the needed collateral value for the loan.
Thanks for sharing very interesting comment have a great weekend Cheers 🍷🇺🇸🇨🇦😎
Something different has been going on in my country.
Some older couples tend to move from their more suburban or even countryside family homes to population centers, where homes are much more expensive and mostly old city buildings.
They might not always calculate how expensive maintenance old buildings can need. Higher inflation has made such projects more expensive at the time the market values have stabilized or even gone down in some areas. Investors have been selling their small apartments, which used to be good investments.
The challenge for people with fixed income is the higher cost of renovation for which they haven't always calculated for and higher interest rates, if loans are needed.
People might have thought that they downsize to a smaller city home, where they are surrounded by all kinds of services and might even give up car to have more free cash to spend. They might end in having to spend much more in housing than they expected and planned for.
And if they can't afford it, they need to relocate again, which will come with some additional cost.
Thanks for watching have a wonderful weekend Cheers 😎🍷🌺
Rental accomodation unobtainable on southern Van.Isle.Folks living in camps.We need to build more rental units.I live in a 12x50 moble home (which I like) set up in a mobile home park.The rent for the pad it is set up on is $400.00 per month.This gives me something to repair and improve, which I like doing.CHEERS from HERE!
$400 is fantastic! Most mobile home parks in CA asking $900 to $1500. Unless it is small run down park, it’s rare to see space rent lower than $600. Costal luxury parks in malibu, san pedro, Huntington beach, newport, and laguna beach go for $1900 to $3000 per month.
We dont have that here Darryl, our mobile homes like our trailer are just for May to October but it sounds very reasonable , have a wonderful weekend Cheers 🍷😎🍺🇨🇦
Thanks for sharing Jen , we think Darryl owns the home and just rents the pad 🤔have a great weekend Cheers 😎🍷🌺
Yes, good idea to have contingencies listed in the offer!
Absolutely! We agree Julie cheers 🍷🌺😎
Wow! The average price here for a hike is $200 thousand! Huge difference! That’s scary stuff!!
Yes prices here have gone very high 😱hope you are well and enjoying a great weekend Cheers guys 🍷🇺🇸🇨🇦🍷
Buying a cheap house rural was a blessing for me. Room for a dog too.
Sounds wonderful Roy Cheers 🍷🌺😎
Las Vegan, USA here. My husband and I are going to sell our house in around 4 years. Fortunately, we entered into a 15 yr mortgage in around 2018 and locked in a 3.875 interest rate. So while our home appreciated greatly, we’re paying down our mortgage faster. Hopefully the dust will have settled by that time. We’re going to downsize and possibly live back to my husbands province in Winnipeg, MB and live in an apartment in a walkable community. There’s some rent controls there too. We plan on taking whatever appreciation we’ll have after the sale and invest. He’s retired and has a good pension. When I retire in a few years I’ll have a pretty impressive pension to add to his. We understand why ppl would buy a home in a city where there’s no rent controls cause they’ve skyrocketed here. But we simply don’t want the maintenance of a home. Thank you for another informative vlog and have a great day!
Sounds like a wonderful plan that is what we did having the apartment removes the unexpected maintenance and expenses of a home to allow you to enjoy life more . Have a great weekend Cheers 🍷🇺🇸🇨🇦😎
I’ve never known anyone who didn’t include, in their offer, “conditional on financing”. We own three properties and have bought and sold for 35 years. We’ve never left that condition out, even if we didn’t need it in. The offer is void if the condition isn’t waived and you move on.
It isn’t conditional on financing, we were pointing out in a falling market ( house prices going down because of rising interest rates quickly), the condition we said was “conditional on valuation”. You may well get the financing so that condition is met but it isn’t enough to cover the sale price, leaving you to make up the difference. We have bought eight homes and do know the finance condition, this is totally different.