Condo sales numbers in and around Toronto have taken a drastic tumble so far this year, and now that the market is starting to lean towards buyers …

  • WamGams@lemmy.ca
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    6 months ago

    I have a family member who got into mobile flipping. What they would do is target retirement communities. When a person died, my family member would put in an offer, generally no more than $10,000 to the family. Enough to cover the funeral.

    This person would then put about $10,000 into renovation (almost only ever cosmetic) and then turn around and sell it for $60k, not realizing that if he was selling 50 year old mobile homes for that Mich, everybody else in the area was doing the same.

    After 5 years, this family member was selling 40 year old mobile homes for $120,000 but purchasing them for $85,000, and eventually, he was making maybe $10,000 in profit for a 3 month process.

    Greed is good until it prices you out of the market you yourself created, but they never see their own actions as being the cause of any of this.

    • Reddfugee42@lemmy.world
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      6 months ago

      he was making maybe $10,000 in profit for a 3 month process.

      He was making $40k a year and that was enough to upend the entire regional market?

      • WamGams@lemmy.ca
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        6 months ago

        That is per mobile home. But yes, eventually he got priced out of doing multiple mobiles at once.

        If it was only him doing this, the system would have corrected itself. The issue is thousands of people were doing this.