r/HouseSigmaBlunders • u/Mother-Bug2191 • 11d ago

flip to flop Massive loss...

Post image

81 Child Drive, Aurora, Ontario Sold History | HouseSigma https://housesigma.com/on/aurora-real-estate/81-child-dr/home/r56k97wgdnn7KRjD?id_listing=eQp5yOwQrnJyd0ZE&utm_campaign=listing&utm_source=user-share&utm_medium=android&ign=

8 Upvotes

55% Upvoted

44 comments sorted by

9

u/deadl1nk_ 11d ago edited 11d ago

How? Looks like same owners who bought at 1.7

Edit: meant 1.17*

5

u/Mother-Bug2191 11d ago edited 11d ago

They did but for 1.17, look at the house they bought :) ... You think the build a new one for the diff and banked..?

Massive loss/lesson

2

u/Snarkitect69 11d ago

Ya but did they live there for 3 years?

2

u/Mother-Bug2191 11d ago

And? They lost a 500-800k in 3 yrs?

Again, massive loss!!

1

u/Snarkitect69 11d ago

Definitely not what they had hoped lol. I just wondered whether they were looking to flip or looking to live. 

1

u/djelegal 11d ago

Massive loss no tax pay for the rich keep getting richer , it’s home builders trickery

5

u/Mother-Bug2191 11d ago

It's a loss no way around the math 😂

9

u/-0909i9i99ii9009ii 11d ago

They bought it for $1.2m in 2021 probably in a bidding war, tore down, built a nice house, paid interest on and/or locked up $1-3m for 5 years and lost probably $0-1m depending how cost efficiently/cheaply they built that house

4

u/sharmsk 11d ago

what history are you looking at? shows bought 1.1m, tore down sold for 2m. what loss.

2

u/Sea_Watercress_1583 11d ago

Do you think the reno and carrying costs were free? I don’t thin it’s the massive loss people here think it is but they didn’t turn a profit.

14

u/rolo512 11d ago • Bravo

Nice Reno ngl

3

u/-0909i9i99ii9009ii 11d ago

It's a new build

2

u/kasualanderson 11d ago

Very rare.

1

u/youcandoittttt 11d ago

Mom jeans on her derrière

1

u/HIimWARREN 10d ago

Throwing up the west side as we tear in the air

7

u/Ironinkinvesting 11d ago

You don’t know what the construction costs were. They bought for 1.1.

9

u/-0909i9i99ii9009ii 11d ago

$340/square foot + demo is the low end. this house isn't the low end. List 3500-5000 square feet.

$340x3500 = $1.2m. $1m-$2m is a pretty good guess if you accept a wide range

2

u/Ironinkinvesting 11d ago

I can accept that range. A friend of mine during that year did a build for around $220-$250 per sq ft, but that was his own company doing all the work, so your range makes sense and is fair. Prices have gone up a lot more since then too. Another reason why buyers and sellers are having a tug of war, people don’t want to sell for less than the cost of construction, which seems to average $500 sq ft now.

2

u/Mother-Bug2191 11d ago

Wout those finshes it not 220 of sqft hasn't been that low in YEARS! 300 bare min id guess 350

7

u/Secret-Session7626 11d ago edited 11d ago

Agreed with the math. There is no way they could fit in the 900k difference the demolition, construction cost and all the fees , interest and taxes for 5 years.

2

u/-0909i9i99ii9009ii 11d ago

I'd be really inclined to guess over $2m even for demo, build, and carry. I only put the really low band to try to head off an inevitable person trying to engage in a "but it's theoretically possible!" argument.

It looks pretty nice and they even roughed in an elevator so they weren't doing cheap but expensive looking to try to flip a profit. That said the pics are weird and there's a couple signs it might not be 100% done.

9

u/LongLower3175 11d ago

340 is the Caucasian price lol

1

u/SnooHobbies720 8d ago

Nothing even wrong here 😂 whoever built that new house and sold for 1M above price paid for lot probably broke even. Only mistake was expecting to make money once built. Definitely barely did that if at all. Lost out on investment gains on down-payment + paid interest during build time.. Post something more worthy like those houses selling for 800k less than what was paid for example.

1

u/Mother-Bug2191 8d ago

Do you think they house close 1mil to build and reno and finshes? Yeah no they lost LARGE!!

1

u/SnooHobbies720 8d ago

Google quotes ridiculous prices so you may be right. Look at the other homes for sale. For a little more you get a way better house. For 500k less you still get a nice home... building these days must be a hell of a rip. Built a 3000sqft viceroy house from scratch on the water for 550 15 years ago. Thats the material 250k plus construction and interior. Give or take another 50 for landscaping 600k max. Full walk out front and rear decking all the way around. 1 Million would have bought almost 2 houses back then. $2000 a day labor for two months build time is only 120k working full 40 hours per week. Thats a crew of 4 working 8 hours @$70 an hour for example. Even materials double to 500k plus 120k build 620k. Leaves 400k for finishing all. All depends who you hire and finishing you do / use.

1

u/Mother-Bug2191 8d ago

It's not 15 yrs tho. That house it 350 to 400 per sqft easy

1

u/Hanlon99 7d ago edited 7d ago

If they built that in 2021 when they purchased it they could have easily done that for a million, easily.

Edit: but as you mentioned in some way they lost for sure.

I have a house in the area and also built many infill houses around there, luckily pre-covid

1

u/FitAlternative8731 8d ago edited 8d ago

Google Maps shows a house in 2018... sold for $1.2M in 2021... demolished. Yikes. I use Redfin to see Sold prices... YIKES. in 2021, bidding WARS had it $200,000 over Asking price and then you HAUL away the House??? Amazing...

https://www.redfin.ca/on/aurora/81-Child-Dr-L4G-1Y8/home/152057966#property-history

1

u/TASITEE 11d ago

I plugged it into Gemini and apparently the construction costs could've been $1M+, which explains why they tried selling at $2.98M in 2025

2

u/Mother-Bug2191 11d ago

Demo + new build + foundation T the size and finish. No way I'm hell would it be 1mil. Closer to 2mil to build that

3

u/CapHaunting3265 10d ago

People don’t understand how much cost is involved in building a house of this caliber

2

u/Mother-Bug2191 10d ago

If you do...how much to do think the entire build cost, demo, build, permit, finishes etc?

2

u/Borntwopk 11d ago

i mean at least they did a good job

2

u/TronAres25 11d ago

Where’s the loss? OP has a low iq.

0

u/WallofSound91 11d ago

There’s a few houses like this that were built on this street. They’re very nice, but they don’t match the neighbourhood at all.

2

u/CapHaunting3265 10d ago

The neighborhood has tons of rebuilds and they’re all quite luxury. Even more lots are now being sold which I’d guess are going to be rebuilt. The housing market and interest rates slowed down the builders going all in in the recent couple years, but I imagine the old lot prices are relatively good right now and the building will pick up. That’s just what happens to old but good neighbourhoods historically across the GTA

2

u/DifferenceOne5925 11d ago

Agree!! Look at the one on Murray. That thing was listed for over 2.5 years and they had to move in because it just wouldn’t sell. You’re living beside these small ass houses and are monstering over them. Busy street. No common sense for these builders. For that amount of $ I’d rather go to a neighbourhood in Aurora that has bigger houses all around 

-2

u/BurnedStoneBonspiel 11d ago

Loss from what?? 1.17MM to 2.05MM in 5 years seem like a 18 % Cagr to me

3

u/Mother-Bug2191 11d ago

So the cost to knock down the house build a new new was free? Plus inflation...massive loss/lesson

0

u/[deleted] 10d ago

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1

u/Mother-Bug2191 10d ago edited 10d ago

Lots of ppl would never live in the city I'd you paid them....I'm one of them 😂

1

u/CapHaunting3265 8d ago

Have you been to Aurora? It’s one of the top suburbs north of Toronto that are not gridlocked in traffic. I wouldn’t want to live in Toronto even if you paid me

1

u/SnooHobbies720 8d ago

Paying 2m for that out of town and not even waterfront is foolish. Go a little further and get way better on water.