I want to live in a million $ home 5 years from now...here is my plan, what u think?

[olddog]

Alright guys,
My A-type personality kicked into hypermode this last week and i have this on my mind for a few days now...:D
I am currently 25yrs and have a desire to invest in real estate as a side thing...more like buy, live in for at least 5yrs and then sell, all in a bid to gather enough equity so i can use as capital when i decide to start my own business.
While looking to take advantage of the real estate situation we are in now, i figured now(between now and next spring) would be a good time to buy (at least for me).


Anyways, i have some areas that i would greatly love to buy and live in right now but certainly cannot afford right now cos there are in the million dollar range, i decided to settle for something within the $300-$350k range.
Now, here is where it gets interesting.
I noticed that some of these areas that i like which have houses worth well over a million dollars came about as a result of the older homes in these areas (all bungalows worth $400-$600K even though they are old) are being demolished and these 2 storey million dollar and above homes are built in their place.


Now in these areas, u have million dollar homes dominating the areas with few bungalows in 400k-600k range just here and there. My prediction is that they will eventually get bought out and demolished so as to make way for newer mansions. Within these neighbourhoods, majority of the homes are worth between 1.2million -2million) actually about 40-50%. Another 15-25% are worth anything between 600k-900k while the remaining are withing 400k-500k range.


After much critical thinking, am thinking it might be a bright idea for me to purchase one of these bungalows (they are in really good conditions too) in these neighbourhoods and live there for at least 5yrs or more. I dont mind living there cos it is a location which is prime and has everything i want in terms of real estate and location except that it is a bungalow(i hate bungalows). But being a bachelor, i think i can manage since the long-term goal is what is more important.


I found one of these bungalows a little bit under 400k and with some bargaining and a good downpayment, i can probably get it with a 320K mortgage.
My long term plan is to try and stay dedicated over 5-6yrs to make accelerated bi-weekly payments and additional payments get about $120k of the principle paid. After that maybe 5-7yrs from now, tear the first level down and turn the house it into a 2 storey like those worth a million and over (just like the other houses did). I figure with about 200k left on the principle, i would get another mortgage loan between 300-350k to build this new structure. So at that time, my total mortgage would be around $450-$500k. (the old $200k plus the new $350k loan).


i feel the neighbourhood is great and that it is a good idea cos its not like there is just one or two homes in the million range. there are lot . i think its not fully swamped and totally filled with these kinds of homes cos of the real estate situation and it takes a lot to buy, demolish and rebuild. But since last year, i have been following these neighbourhoods and thats pretty much what i have seen happening to all these small bungalows. Am also predicting that if this plan comes to past, i should not have too hard problem selling in the future cos all these homes would be 5-10 or 15yrs old by then whereas mine would be "brand" new.
Remember this is a long term goal. i just need sensible inputs please.


With all other things being equal, here are my potential inquiries;

From all the numbers i gave up there, does the entire scheme sound like a feasible one?
Is $300-$350k sufficient to build a nice nice house if the land is available?
What are some things or realities that u might think am being naive on or not considering in this plan?


Thanks for taking the time to read my "idea" and i appreciate any opinion or advice .

olddog

[coolspot]

It's the land that's worth money, not necessarily the house - especially in the million+ range.

If this neighbourhood is really that hot, the sub-priced bungalow are probably barely livable and require significant renovations. For example, in my neighbourhood, there is a "house" for 750K which seems like a bargain in comparison to the rest of the houses in the area, but this house comes complete with a leaky roof and a family room of frogs!

You get what you pay for; in real estate I don't think there are too many super-duper bargains out there.

What area/city are you looking at?

As for building a house that will "complete" with other million+ dollar homes in the neighbourhood, I think you'll have to spend >300 - 350K. Average cost to build a mid-range to upper-mid-range house is ~150.00 per square foot; so a 4000 - 5000 sq ft home will cost you $600,000 - $750,000. Even if you go super basic, it'll still cost 70 - 80 per square foot, and you'll be a good candidate for "cheapest house on the block".

Building a house there are other costs to factor too such as demolishing costs, temporary residence cost (where are you going to live while your house is being built...), architectual costs, landscaping, etc.

I think you'll need more than a million bucks to own a million dollar home - especially if you're building one from scratch.

If you have a good paying job, plenty of equity, you could pull it off by leveraging yourself to the max... I think you're better off finding a modest home in a good neighbourhood and turning it into a nice house. Dump the house once the market rebounds; repeat;

[OwedALife]

A million dollar home will run you $10k+ in property taxes alone.

[speedyforme]

have you explained how you plan to be able to borrow this much money?

if you can borrow that much, you can probably afford to BUY a million dollar home

but if you want to make money off of this, real estate may not be the real option

plus 5 years from now, everything can change, being a bachelor myself I am fully prepared that things can change

[beerbaron105]

strong newbie alert....

[bythehour]

Hey Coolspot, where are you getting this $150/sqft build cost? Can you pm with the name/number of your general contractor????


Olddog, I like your spunk. Don't give up, just find ways around the problems. Generally, I like the fundamental concept of your idea. Buy the cheapest house in the best neighborhood and you'll ride the wave.

I've got two observations for you:

1. Money ain't as easy/cheap as it used to be. Do the math and make sure that your cash flows, including all carrying costs, make sense. (Don't be a noob and factor in your anticipated "gain" as part of your cash flows.) Talk to some mortgage brokers and see what you can get for your equity ratio.

2. Rebuild costs will vary. If you can do much of the work yourself and/or you have very good contacts, you can probably do something for $150/sqft, but if you want high quality materials, etc., you're looking at $200. If you are hiring out the whole thing, the lowest I've been quoted is $250 (for "average" quality, plus options).

So, for a "respectable" executive home, you're probably looking at minimum 2,500 sq ft. do the math....

[coolspot]

Hey Coolspot, where are you getting this $150/sqft build cost? Can you pm with the name/number of your general contractor????


That's what my insurance company budgeted to rebuild my house; but I wouldn't be surprised with the 200 - 250.00 range either.

Check this article out, lots more like it on Google: http://www.torontorealestate.ca/article-detail.php?article_id=236

But there are a lot of factors to rebuild cost, especially what quality, features you're looking for.

With a high-end home everything is more expensive: Taxes (15K+), Utilities (400 - 500 a month), Appliances, Furniture, Maintenance, etc.

You won't be putting in the cheapest items into the house, as that would be a deteriment to the value of the home - especially if you plan on reselling it.

[olddog]

thanks for your input guys......much appreciated.
Please do not neglect the fact that this idea is on a long term basis and in my mind might carry on for anywhere between 5-10yrs.
The thing is just inquiring whether the idea is feasible or not and in gaining knowledge/ideas on how much rebuilding will cost.


In regards to how i intend to borrow money....here is what i planned:
if the house is 320k right now and am able to shave 120k off it from payment methods i enumerated in my first post, then i will be left with a mortgage of $200k. All that within 5yrs. At the end of 5-7yrs, i figured with 200k left in mortgage, i should be able to qualify for a mortage line between 300k-400k.
Which will bring my total mortgage to around 600k-700k. i should be able to afford that kind of mortgae at that time(God-willing). Or i will just be optimistic and hope the wife i haven't met yet sees my vision and is willing to ride it out with me :D


The major concern here is not whether i can afford it at that time or not (since i have numbers that i project will be well within my power at that stage in life for me. i am not using anticipated gain or whatnot), it is rather whether or not the plan is feasible and whther a 350k-400k can build/upgrade(by upgrade, i mean maybe not demolishing the entire house but rather tearing some walls down and expanding the building) a nice house on a land readily available.

the safety net that i have created within this entire "idea" is that after the 5yrs of living in this bungalow, if the plan to demolish/rebuild is not feasible, i can always sell it and move on. Its not like i will have to loose any capital invested in the "idea". Afterall, it is my ideal location which i envisioned myself living for the next 5yrs. So i really am not sacrificing anything (potentially) by living there for the next 5yrs.

I believe the next move is to talk to a real estate agent on equity ratio as someone suggested and maybe a couple of builders to get an idea of what rebuilding or expanding the bungalow might cost. If am going to do this, i would like to get all bases covered and rather not fall into what i would call a "quick sand" situation.

In my opinion, if the plan/ "idea" is feasible, i am willing to commit a good 10-12yrs to it. So things can be done gradually if anything.

any ideas, opinions and advices are greatly appreciated.

[sup2009]

Hi Olddog,

I just PM you and hopefully I have some information that might be able to help you.

[monomono]

I know someone who recently did this with their bungalow in a similar area. It was worth about 450k and about half the houses on the street had been redeveloped into $1-$2 million mansions. He got a SLOC of credit on his house then demolished it. This is a risky move because if the bank ever comes to take a look at the "security" for your loan, they will have some questions for you.

He hired a project manager but did a lot of the work himself over a year or more. Costs of construction? Close to 800k. It's a beautiful house but not worth much over 1.2 million in the current market. So you may want to rethink your budget in the area of construction costs.

[TTony]

Is $300-$350k sufficient to build a nice nice house if the land is available?
you can build nice townhouse

[picco_savage]

steps to living in a million $ home

1. Wake up
2. ???
3. profit
4. buy home

[old_type]

thats a great idea and all, but keep in mind, u need enough land...

im in an area where its the same thing, nice area, mix of super old and new, million $$ homes

but if u actually pay attention, the million $$ homes actually bought 2 - 3 crappy units, tore them down and built 1 home

so make sure u have enuf room...otherwise u might need to buy 2 bungalows instead of 1....

[Rehan]

steps to living in a million $ home

1. Wake up
2. ???
3. profit
4. buy home +1

OP needs a dose of reality.

- to pay off $120k in 5 years, you'll need to pay $35k/year in after-tax dollars towards the mortgage
- $700k mortgage will require a gross annual income of about $200k.
- "tearing some walls down and expanding the building" for $350k-$400k is not going to get you the same quality house as the new houses in the neighborhood
- you're not likely to get much above what you spent on the whole project. If you buy for $400k and put in $400k for construction, don't be surprised if it sells for under $900k.

[Joe Camel(Toe)]

so make sure u have enuf room...otherwise u might need to buy 2 bungalows instead of 1....

if he even gets the permits. have you ever thought the possibility of the city not giving permits for the smaller homes in the area?

[olddog]

+1

OP needs a dose of reality.

- to pay off $120k in 5 years, you'll need to pay $35k/year in after-tax dollars towards the mortgage
- $700k mortgage will require a gross annual income of about $200k.
- "tearing some walls down and expanding the building" for $350k-$400k is not going to get you the same quality house as the new houses in the neighborhood
- you're not likely to get much above what you spent on the whole project. If you buy for $400k and put in $400k for construction, don't be surprised if it sells for under $900k.

-paying 35k/year does seem like a hard thing....people tend to judge too fast with little information.
-and believe me when i say carrying a 700k mortgae 6-7yrs from now wont be a problem (God-willing)

I did not want to dive into whether or not i can afford it or not cos i knew many would be like .."get into reality', how much this and that...
While i understand its a huge risk, i am not just a bubblehead dreaming without plans. Thats why i suggested people just advise on the "idea" and how feasible it is. Not my means of carrying it or how i plan to make extra payments to have 120k off the principal in 5yrs.

thanks

olddog

[Rehan]

-paying 35k/year does seem like a hard thing....people tend to judge too fast with little information. Well, we do have certain information like your recent post (http://www.redflagdeals.com/forums/showthread.php?t=656061) about a $50k salary and $40k in student loans.

Making "plans" is nice, but it's better to have realistic plans than just overly optimistic ones.

Anyway, if you want you can ignore the first two points in my last post. But the last two points are far more important.

[speedyforme]

Well considering the OP's financial situation if it's current enough, I doubt the OP can even afford a $300k place to begin with.

[olddog]

Well, we do have certain information like your recent post (http://www.redflagdeals.com/forums/showthread.php?t=656061) about a $50k salary and $40k in student loans.

Making "plans" is nice, but it's better to have realistic plans than just overly optimistic ones.

Anyway, if you want you can ignore the first two points in my last post. But the last two points are far more important.

thanks for the pinion/advice.
My recent posts did infact state that i make about 50k per year and have 40k in student loans.
What the post does not tell u is how much i have saved or whether my dead grandma left me a $4billion inheritance or whether i have an outsourced business. And how do u know that the 40k student is not paid off or about to be paid off in full?

anyways, i actually appreciate the last two points u stated cos they are relevant info to this particular post. Its more like that that i need. Not whether or not my current financial situation is mighty or not.
If anything, we should be concerned whether my current situation can carry the current asking of the house and YES it can.


Well considering the OP's financial situation if it's current enough, I doubt the OP can even afford a $300k place to begin with.

You hit the nail on the head with the line "if it's current enough". Other than the info i give on here, nothing more than speculations can be drawn about my financial information. Hence, the reason why i begged on those who have something to offer this thread focus on my 'idea" with my given info. And not criticize or whatnot.


As a matter of fact, why don't we work on this thread like it was hypothetical. so forget i am the one planning this thing. Lets say its a textbook exerciseand we are asked to see if its feasible or not.

Thanks

olddog

thanks for your advice.

olddog

[bythehour]

Coolspot - yeah, my insurer used $150/sqft as well. It doesn't mean much, other than to calculate the dollar cap for a rebuild. You can get more coverage, but it just costs more (of course).

Olddog - don't let the naysayers get you down. If you're in a good profession with growth prospects, going from $50K to $150K in five years is quite possible.

Zoning can be a problem. But that is part of the process, and it should be budgeted into your reno cost. When the time come, you want to make sure that you have a good architect and general contractor.

[audit13]

I was living in an expensive home in a really nice neighborhood too, until the financial crisis hit :mad: Good luck OP! I don't have any real advice other than to say that you need to have a really good look at the area. Some areas, such as Cabbagetown, have million-dollar homes and people still won't live there regardless of how nice the home may be.

Edit: Forgot to mention that you should also consult with an architect and maybe a structural engineer if you plan to totally renovate and expand the bungalow rather than just demolishing and re-building.

For my total home reno, I hired an architect who provided me with architecural blueprints and mechanical drawings. I order to obtain written quotes from various contractors, I provided them with the blueprints and drawings so they could give me an accurate quote. Having these blueprints and drawings allowed me to get building, electrical, and mechanical permits in a two days.

[speedyforme]

OK if we are playing dreamland...

From all the numbers i gave up there, does the entire scheme sound like a feasible one?

Anything is possible based on your scheme.

Is $300-$350k sufficient to build a nice nice house if the land is available?

Not likely, things are MUCH more expensive and will only cost more 5-7 years down the road. And unless you do much of the work yourself (if not working overtime to pay for these things), it will cost much more.

What are some things or realities that u might think am being naive on or not considering in this plan?

Long term lifestyle. Is this the location forever? Are you expecting to make 100% of your money back or 150% etc? The plan can work if you do a detailed financial plan like any business.

[olddog]

thanks for the input guys.
i willbe talking to a couple of professionals by the weekend both on the real estate aspect and the building aspect.
if i live there for 5yrs and then go along with this plan, i dont mind living there for a long time cos the location is really prime in my opinion. it has easy access to downtown and has the most central position anyman can wish for.
i will try to get some pics of the map of the area on mls and then also post some pics of some of the houses that have ben raised in that area for a more detailed analysis...

[west]

thanks for the input guys.
i willbe talking to a couple of professionals by the weekend both on the real estate aspect and the building aspect.
if i live there for 5yrs and then go along with this plan, i dont mind living there for a long time cos the location is really prime in my opinion. it has easy access to downtown and has the most central position anyman can wish for.
i will try to get some pics of the map of the area on mls and then also post some pics of some of the houses that have ben raised in that area for a more detailed analysis...


which area?

[flyinggonzo]

If the homes are selling for $1 million+ in that neighbourhood, you will need to budget closer to $200 - $250/sq foot for the quality demanded in the area, unless you have the ability to manage the construction yourself (time and experience). Given that you will be working through this time period, this appears risky. Also, homes built with sub-par quality for the area are hard to sell, and the definition of quality varies by region. I would check out houses in the area you are looking at and speak to the contractors and real estate agents in the area.

But hey, if you find someone you like who believes can build a solid product for $150 - $200 / sq foot, send me a note as I'm considering a gut and extension of my home and would to see a lower quote!

[audit13]

....i dont mind living there for a long time cos the location is really prime in my opinion. it has easy access to downtown and has the most central position anyman can wish for....

What area is it? Is Parkdale, Rosedale, Bloor West Village?

[Andex]

Your idea is good, but your numbers are not. It's going to cost at least $200/sq ft for a custom home. And once its built you can't cheap out on finishes if you want to command a high price. Given your age, consider buying the worst house in an amazing area and then rent it out! If all goes well, you might be able to make a very big profit selling it to someone in the future who can afford to do what they want.

You could probably buy 2 houses and put down 5-10% on each and sit back.

[olddog]

Your idea is good, but your numbers are not. It's going to cost at least $200/sq ft for a custom home. And once its built you can't cheap out on finishes if you want to command a high price. Given your age, consider buying the worst house in an amazing area and then rent it out! If all goes well, you might be able to make a very big profit selling it to someone in the future who can afford to do what they want.

You could probably buy 2 houses and put down 5-10% on each and sit back.

good stuff....i am already planning on doing that. Me and my sister are planning on buying another place as a joint venture to rent out for a period of time.
But this here is a location that i really like and would like to make my primary residence for a while. And so i thought of the "idea" as a long-run option.
So i like your view on selling it to someone who can afford to do what they want. That is a safety-net i have in mind if i cannot do the re-building myself. There are lots of things to consider and understand, especially the numbers like u said, that one has to be very careful about. Thats where am not enlightened.


thanks

olddog

[olddog]

What area is it? Is Parkdale, Rosedale, Bloor West Village?

The area is right by allen rd.
north border ends at sheppard, south border ends at eglinton, east border ends at yonge and west obviously ends at allen rd.
That creates a rectangular area which i consider very ideal. Central to 2 of the most important highways for me and mins to downtown core. plus its a quiet neighbourhood in the middle of the hectic north york and downtown atmosphere.

any opinions? views? thoughts? concerns? ideas? on this outlined area.



Thanks

olddog

[bythehour]

The area is right by allen rd.
north border ends at sheppard, south border ends at eglinton, east border ends at yonge and west obviously ends at allen rd.
That creates a rectangular area which i consider very ideal. Central to 2 of the most important highways for me and mins to downtown core. plus its a quiet neighbourhood in the middle of the hectic north york and downtown atmosphere.

any opinions? views? thoughts? concerns? ideas? on this outlined area.



Thanks

olddog

Lol! You're not the only one with that idea, and you're about 10 years late for the area. Move your east border to at least several blocks west of Avenue and your idea becomes more viable. (You will find huge price differences between homes around the Yonge Eg/Lawrence area vs. those closer to Bathurst and Allen.)

Also, you can count on additional reno costs in that area. You're looking at $250 minimum. Basically, everything just costs more. Prices magically jump once contractors learn your address.

[stealth]

Lots of good points here.....except one:
1. Money ain't as easy/cheap as it used to be. Do the math and make sure that your cash flows, including all carrying costs, make sense. (Don't be a noob and factor in your anticipated "gain" as part of your cash flows.) Talk to some mortgage brokers and see what you can get for your equity ratio..
Huh? Money is about as cheap as it ever has been! We've just been mortgage shopping and are getting offers of 3.75% 5 yr fixed and 0.8% above prime in variable. There havent been many times when it has been much less than this, but many times when it has been SIGNIFiCANTLY higher.
But you're right, there is some risk involved, you cant just count on the upside without considering the downside.

OP I think you have a generally good idea, but there are a lot of pitfalls to it. But thats part of the game, there are no sure things. The nice thing is if things dont work out well, its not likely you will lose any $, you just may not make as much as you'd hoped.

And as others have pointed out, 150 per sq ft is pretty stingy for building a stately home.

Another approach may be to buy waterfront land and sell to a developer later. Nice thing about it is taxes will be relatively low, and theres no maintenance required on your part.

[beerbaron105]

I honestly can't believe you guys are taking this as a serious post, it is clear the OP is dreaming, making 50k a year and with a fat student loan, it doesn't matter if eh got a big inheritance, because after that is all spent and gone, he will still be making 50k/yr trying to pay the bills in a million dollar house, he will be lucky to pay the taxes and heating, let alone everything else plus the reno job.

[bythehour]

Lots of good points here.....except one:
.
Huh? Money is about as cheap as it ever has been! We've just been mortgage shopping and are getting offers of 3.75% 5 yr fixed and 0.8% above prime in variable. There havent been many times when it has been much less than this, but many times when it has been SIGNIFiCANTLY higher.



I guess it depends on your perspective and time frame. Are you talking about the past couple of years or past couple decades?

If you were shopping a year ago, you would have been negotiating off prime (not plus, as it is now). Our five-year variable is now 1.5%...so getting a 4% rate is "bad" to me.

Credit is also not as easy to get as before. Banks are much more skittish. I've had a couple clients (dabbling in real estate) shocked because:

1. Their banks insisted on getting independent appraisals (they did not accept the MLS listing and purchase agreement as "evidence" of value).

2. Stuck with the independent appraisals that were LOWER than the purchase price (thereby reducing the value against which they would lend).

I'm just saying that if you're frame of reference is limited to the recent boom, times have changed....

[gr8dlr]

Posts like these are very difficult to assess because you're holding back a lot of information which we have to guess about. Since you're 25, may have recently graduated and paid off the $40k loan and starting at $50k pus salary...I would assume you're living at home.

It's not that hard to save a lot of cash $35k a year while living at home while your parents pay all of the daily costs of living...but if you buy a house you now have bills over and above the mortgage like property taxes, utilities, food, cable TV, repairs...don't underestimate repairs. Saving $35k over and above the costs of daily living is not so easy (perhaps an inheritance is in the cards).

An old house going for cheap in a good premium neighbourhood is a definitely a money pit in reality - these houses are typically bought for immediate redevelopment by one of the many developers who work the area...if the house is on the market for more than a week or two, there's a reason. It's way overpriced land and builder hasn't snapped it up to build and sell or perphaps there's some kind of zoning issue, or perhaps it's sitting on a water table or some other reason).

Old houses in these premium neighbourhoods are gone in nothing flat if the price is reasonable...so if you plan on living in that old house you better watch the bills that come with it.

[olddog]

I honestly can't believe you guys are taking this as a serious post, it is clear the OP is dreaming, making 50k a year and with a fat student loan, it doesn't matter if eh got a big inheritance, because after that is all spent and gone, he will still be making 50k/yr trying to pay the bills in a million dollar house, he will be lucky to pay the taxes and heating, let alone everything else plus the reno job.

i hope yu dont take this approach in your everyday life my friend. if anything you should understand from my posts that i said to ignore my financial info and focus on the "idea".
I am so tired of people who spend their time searching other peoples thread to get some history so as to bring down a potential idea....Jesus Christ.
Not trying to be rude but if u have nothing to offer in regards to the main "idea", just sit back and read the thread. its not mandatory to post in every thread u know.

if the thread had been ,"Do u think i can afford this in 5yrs", then your inclusion of my financial position would be relevant. But its not.
knowledge begets knowledge my friend. i could have shut up and just gone ahead with this project without posting on here. But who is to say i would or wouldn't be making the greatest mistake of my life. Hence, the reason for posting on here. To get inputs, ideas, opinions and advice.


Posts like these are very difficult to assess because you're holding back a lot of information which we have to guess about. Since you're 25, may have recently graduated and paid off the $40k loan and starting at $50k pus salary...I would assume you're living at home.

It's not that hard to save a lot of cash $35k a year while living at home while your parents pay all of the daily costs of living...but if you buy a house you now have bills over and above the mortgage like property taxes, utilities, food, cable TV, repairs...don't underestimate repairs. Saving $35k over and above the costs of daily living is not so easy (perhaps an inheritance is in the cards).

An old house going for cheap in a good premium neighbourhood is a definitely a money pit in reality - these houses are typically bought for immediate redevelopment by one of the many developers who work the area...if the house is on the market for more than a week or two, there's a reason. It's way overpriced land and builder hasn't snapped it up to build and sell or perphaps there's some kind of zoning issue, or perhaps it's sitting on a water table or some other reason).

Old houses in these premium neighbourhoods are gone in nothing flat if the price is reasonable...so if you plan on living in that old house you better watch the bills that come with it.

i get your point and appreciate your input. I can understand how the post might be very difficult to assess because am holding back a lot of information on my financial position. thats why i asked everyone to just focus on the "idea".
Am just trying to gain input on whether the "idea" is feasible in regards to how much will be spent and how much equity or whatnot. Not whether or not i can afford the mortgage at that time.

I do not live at home. If i were living at home, i would have to commute thousands of miles across the atlantic ocean daily just to get to work daily :D
Yes, i do make 50k/yr right now being a recent grad. But i dont even look at my current job as my main priority cos i have a business that i run across the waters and plan to expand in years to come..
i have managed this business enough through my younger days from nothiing to something and still dont think am stable enough to quit my current job here, hence reason why i am sticking with my 50k job as a safety net.

i moved to Canada in 2003 on my own, seen and done my fair share of struggling, created a masterplan and stuck with it relentlessly and this has gotten me to where i am today. i still have a long way to go in order to get to where i want to be in life. I understand that. Started off small, doing things and investing in things people my age dont even worry about has gotten me ahead in life. I was able to use my little business to make sure Osap does not make much interest from me and YES i do have OSAP's money sitting in a bank as we speak. i was able to buy a condo when many said i couldnt...etc

Long story short, I dont have to go into details on everything about my life in order to get some opinions on something else. Hence reason why i asked all to please focus on the "idea".
There are a things that i wouldn't have thought about or considered if it werent for a few great inputs some have posted in this thread.
I appreciate everyone's input on the "idea".



olddog

[victor page]

I like where your head is at OP .... I had considered doing something similar 3-4 years ago in a different area and decided not to. This was smart (however unintentionally) because the value of the new homes in my neighborhood would have dropped precisely when my construction would have finished.

The Allen Rd. corridor is an interesting case. It's on the subway line, close to 401, and is marketable to many ethnic groups. There are some grimey pockets but they are making way for new condos and infill housing. There's definitely potential there.

Market timing is an almost impossible game to win - we don't know when the $1M + housing market is going to rebound. It's seriously quiet right now.

If you like the area, and find a liveable home at a fair price on a lot with potential for a rebuild in the future, then I think you have nothing to lose. You live in the house, see where your income goes, and research the potential for adding a second storey or rebuilding.