A Semi-detached house value in Brampton increased by 74% within one year, and the total value of the house increased by $565k within just one year.
That’s just the average price of the house in a city like Montreal or Calgary.
Is it a shortage of houses, I don’t think so? I think it’s more related to Bad practices in the real estate industry and investor frenzy are driving the housing price up with the bidding war.
We are going to see the semi-detached house price in 2021 and 2022 and how it sold for a crazy price in just one year.
House Listing without selling
House was listed two times before 2021 without selling and considering 2022’s price, this house was listed for a very low price earlier but without any renovations.
You can check all the details of previous listings on sites like https://www.properly.ca/
House SALE in 2021
In May 2021, this house sold for a very good price of $760,000 which was a really good price for a very outdated house. I believe it’s because of one of the biggest jumps in home prices in Toronto in 2021.
I strongly believe this house was bought for a FLIP, they did complete overhaul of this house and turned this into beauty.
I am estimating, the new owner spent close to $200-$235k on the renovations on this in 2021.
Let’s look at the house after the renovations. Now It’s a fully renovated open concept house
2 stories 4 bedroom, 2 Full washrooms + 2 Partial Washrooms
Between 1,600 to 1,800 square-feet
Huge Driveway with 6 parking.
They have spent good money on Kitchen and washroom. Floors look a bit basic.
House Sale in 2022
HOUSE LISTED FOR SALE in Jan, 2022 for 999,000 for exactly one million.
And it SOLD for $325K over asking for $1325,000.
Purchase Price: $760,000
Closing cost: $30,000
Builder Insurance: $10,000
Interest Payment: $10,000
Total COST: 1,050,000
SALE PRICE: $1,325,000
REALTOR COMMISSION at 3%: $40,000
OTHER EXPENSES: $10,000
WITHOUT CAPITAL GAIN TAXES: $225,000
AFTER CAPITAL GAIN TAXES: $150,000 – $175,000