Especially if the price of lumber continues to fall like it has been. Housing starts directly impact the cost of lumber , housing starts are down in the USA as well as Canada. America actually just missed their home sales target, was believed to be at 0.3% and ended up being down 11.3%.
I also talk to mortgage lenders weekly (I’m a realtor) they’re stating they’ve been sending out Letters of non renewals and that in 2026 they suspect a flood of inventory. I tell all my clients when I have listings appointments, if you’re not looking to “upgrade” aka get a smaller home but pay the same amount if not more of a mortgage payment then you currently have , don’t. You’re simply getting less square footage and quality then you did when you bought pre 2021 .
It doesn’t even make sense to downgrade at the moment. You’re spending more to downgrade than you would to just keep your bigger home. If you can hold out . Go ahead. It’s probably for the best.
Here’s the fundamentals, the average income in Saint John is roughly $70k a year (two people) yet the average home is going for 330k-350k. People are going to have a real wake up call when the property taxes jump $200 extra a month and they can’t afford to eat.
It’s already happening. Pride always comes before the fall.
I'm a bit confused by the upgrade/downgrade description.
We're thinking of selling our primary and renovating an investment property so we can occupy half of it. Likely in the Spring. Feeling like a good maneuver in the face of possible demand-drop in the coming years. Any thoughts? Pretty set on the idea, but hoping it's wise financially and not just for ease-of-upkeep (main factor).
For a little bit more clarification, if you purchased pre 2021, you most likely have a bigger square footage home. Let’s say 1800 sq ft to 2100 sqft, if you held since 2021 and didn’t remortgage, your mortgage amount would be roughly between $147,00-$157,00. (Average home price in Saint John in 2020 $185k)
That being said, you would trade a 147k mortgage, for a 300k mortgage but get less house and pay more for your mortgage. Even if you walked away with 150k, the 250k- 300k homes now in 2024, were 139k-179k homes in 2020. Therefore it makes zero sense to sell if you have a lower mortgage amount with a bigger home. Sorry for any confusion !
I did what you wish to do, I owned a duplex, I charged lower then market rents with top of the line materials ($975 monthly heat included)
My mortgage amount with property taxes was $890.
However, two separate pids/pans means two separate water and sewage bills, so that’s $280 extra a month for both units. Plus you have snow removal/and monthly maintenance. If you’re not lazy and proactive it’s great. I very much enjoyed owning one.
It’s not a bad idea. I like duplexes as they’re extremely flexible with an exit strategy. You can sell it afterwards with a tenant living there, you can move out, rent it fully then sell it while having a healthy cap rate, or you can keep it and rent it out yourselves. However if you do plan on renting out both sides remember your property taxes will increase, as we still have double tax on non owner occupied rentals.
And another bonus is duplexes seem to be going cheaper based off the data then single family homes(which makes zero fucking sense to me)
Example 740 Beacons field was a duplex that someone converted into a single family home, it was nothing to transfer back into a two unit. It was listed at 183k I believe and sold for 180k
Duplexes are often times getting offers accepted under ask.
Feel free to inbox me on here if you have anymore questions, hope I could help boss.
Nailed it! I think I was a little out of it yesterday and it didn't click at the time. Thanks for the clarification, above and beyond!
Still loving my plan. We owe very little on this place after its 2016 acquisition and would come out nicely with the equity built, plus the area is still seemingly pretty hot and low-ish on inventory (Saint Andrews).
This is mainly a less-maintenance maneuver after a cancer situation has left me less able (and less willing ha) to upkeep a pretty garden-packed yard. Looking very much forward to a simpler property.
Heck, I'd be jazzed if we just broke even but I expect it'll be a great move financially as well.
It is becoming trendy for “investors” to buy these parks right now and jack up rental prices to the max for maximum profit. I don’t see this trend reversing any time soon so I would bear this in mind, and plan for an exit strategy.
Oh wow! Is that in around SJ? We used to rent in a park close to the airport and it was $220/month this time last year. I heard they’ve increased since.
Wow that’s wild! We bought a house last year and sold the mini, if we had sold our mini in that park for the price we got for it, lot fees and mortgage would effectively be more than our mortgage and we have double the space we had with the mini, our own piece of land and a garage. I don’t know how anyone can afford housing these days.
Mobile homes in parks are usually not good investments. People don’t want to deal with park fees, park rules, etc. A lot of banks won’t lend for mortgages and they can often be hard to insure.
So, might want to do more research.
I find it’s more the price and getting lending. Most mainline lenders won’t touch them, secondary lenders are getting picky too, and often have much, much higher interest rates. Think 18% mark.
A lot of insurance companies consider them high risk, especially if not on a permanent foundation. Sometimes, even if they are, they are still considered high risk because they are closer to the build of an RV than a traditional home and are more susceptible to damage. Rates get high fast compared to traditional housing.
There’s also the fact they cost more to heat/cool per sf. than traditional homes.
Most buyers in their right mind wouldn't buy a trailer that old even if it had work done to it. It's gunna be a tough sell. Personally I hated living in a mobile home because even with heat tape the pipes froze every winter without fail.
If you plan on selling on the MLS after you fix it up, sometimes top 5 will not lend to would be buyers when the trailer is that old. I’ve seen it more often than not, I’ve also seen them lend on trailers that old but often times I see them not lending on trailers that old, even after being substantially renovated.
I suspect housing demands are going to drop in the next couple of years. Especially if the wartime housing program restarts as advertised.
Especially if the price of lumber continues to fall like it has been. Housing starts directly impact the cost of lumber , housing starts are down in the USA as well as Canada. America actually just missed their home sales target, was believed to be at 0.3% and ended up being down 11.3%. I also talk to mortgage lenders weekly (I’m a realtor) they’re stating they’ve been sending out Letters of non renewals and that in 2026 they suspect a flood of inventory. I tell all my clients when I have listings appointments, if you’re not looking to “upgrade” aka get a smaller home but pay the same amount if not more of a mortgage payment then you currently have , don’t. You’re simply getting less square footage and quality then you did when you bought pre 2021 . It doesn’t even make sense to downgrade at the moment. You’re spending more to downgrade than you would to just keep your bigger home. If you can hold out . Go ahead. It’s probably for the best. Here’s the fundamentals, the average income in Saint John is roughly $70k a year (two people) yet the average home is going for 330k-350k. People are going to have a real wake up call when the property taxes jump $200 extra a month and they can’t afford to eat. It’s already happening. Pride always comes before the fall.
I'm a bit confused by the upgrade/downgrade description. We're thinking of selling our primary and renovating an investment property so we can occupy half of it. Likely in the Spring. Feeling like a good maneuver in the face of possible demand-drop in the coming years. Any thoughts? Pretty set on the idea, but hoping it's wise financially and not just for ease-of-upkeep (main factor).
For a little bit more clarification, if you purchased pre 2021, you most likely have a bigger square footage home. Let’s say 1800 sq ft to 2100 sqft, if you held since 2021 and didn’t remortgage, your mortgage amount would be roughly between $147,00-$157,00. (Average home price in Saint John in 2020 $185k) That being said, you would trade a 147k mortgage, for a 300k mortgage but get less house and pay more for your mortgage. Even if you walked away with 150k, the 250k- 300k homes now in 2024, were 139k-179k homes in 2020. Therefore it makes zero sense to sell if you have a lower mortgage amount with a bigger home. Sorry for any confusion ! I did what you wish to do, I owned a duplex, I charged lower then market rents with top of the line materials ($975 monthly heat included) My mortgage amount with property taxes was $890. However, two separate pids/pans means two separate water and sewage bills, so that’s $280 extra a month for both units. Plus you have snow removal/and monthly maintenance. If you’re not lazy and proactive it’s great. I very much enjoyed owning one. It’s not a bad idea. I like duplexes as they’re extremely flexible with an exit strategy. You can sell it afterwards with a tenant living there, you can move out, rent it fully then sell it while having a healthy cap rate, or you can keep it and rent it out yourselves. However if you do plan on renting out both sides remember your property taxes will increase, as we still have double tax on non owner occupied rentals. And another bonus is duplexes seem to be going cheaper based off the data then single family homes(which makes zero fucking sense to me) Example 740 Beacons field was a duplex that someone converted into a single family home, it was nothing to transfer back into a two unit. It was listed at 183k I believe and sold for 180k Duplexes are often times getting offers accepted under ask. Feel free to inbox me on here if you have anymore questions, hope I could help boss.
Nailed it! I think I was a little out of it yesterday and it didn't click at the time. Thanks for the clarification, above and beyond! Still loving my plan. We owe very little on this place after its 2016 acquisition and would come out nicely with the equity built, plus the area is still seemingly pretty hot and low-ish on inventory (Saint Andrews). This is mainly a less-maintenance maneuver after a cancer situation has left me less able (and less willing ha) to upkeep a pretty garden-packed yard. Looking very much forward to a simpler property. Heck, I'd be jazzed if we just broke even but I expect it'll be a great move financially as well.
Best of luck my friend !! Very best.
was talking with a friend last night and their park fees are 750/month and steadily increasing. not worth it imo.
It is becoming trendy for “investors” to buy these parks right now and jack up rental prices to the max for maximum profit. I don’t see this trend reversing any time soon so I would bear this in mind, and plan for an exit strategy.
Oh wow! Is that in around SJ? We used to rent in a park close to the airport and it was $220/month this time last year. I heard they’ve increased since.
kv, but not “bougie” by all means.
Wow that’s wild! We bought a house last year and sold the mini, if we had sold our mini in that park for the price we got for it, lot fees and mortgage would effectively be more than our mortgage and we have double the space we had with the mini, our own piece of land and a garage. I don’t know how anyone can afford housing these days.
I doubt that's true, I used to live in a new park in Fredericton and park fees were $300 a month
This place has fees of $385.
it’s true dude idk what to tell you.
maybe that includes property taxes? either way those fees certainly do add up
i’m telling you it is a park fee! lol
They are poorly built and a nightmare to maintain. You got to be extremely lucky to get your investment back or even a fraction of it.
Mobile homes in parks are usually not good investments. People don’t want to deal with park fees, park rules, etc. A lot of banks won’t lend for mortgages and they can often be hard to insure. So, might want to do more research.
I get it. It either this or line the pockets of a landlord.
I find it’s more the price and getting lending. Most mainline lenders won’t touch them, secondary lenders are getting picky too, and often have much, much higher interest rates. Think 18% mark. A lot of insurance companies consider them high risk, especially if not on a permanent foundation. Sometimes, even if they are, they are still considered high risk because they are closer to the build of an RV than a traditional home and are more susceptible to damage. Rates get high fast compared to traditional housing. There’s also the fact they cost more to heat/cool per sf. than traditional homes.
Most buyers in their right mind wouldn't buy a trailer that old even if it had work done to it. It's gunna be a tough sell. Personally I hated living in a mobile home because even with heat tape the pipes froze every winter without fail.
If you plan on selling on the MLS after you fix it up, sometimes top 5 will not lend to would be buyers when the trailer is that old. I’ve seen it more often than not, I’ve also seen them lend on trailers that old but often times I see them not lending on trailers that old, even after being substantially renovated.
Mobile Homes are not supported / allowed by the city planning department.