4 ms·

They sold their house in Toronto, one of the most expensive cities in North America, and probably made a couple of million or so. The school was only $190,000 p

by cgh 11y ago

They sold their house in Toronto, one of the most expensive cities in North America, and probably made a couple of million or so. The school was only $190,000 plus whatever it took to fix it up. As the article states, the area is a tourism hub so their B&B is probably quite busy. Otherwise, assuming they own the school free and clear and grow a lot of their own food, I imagine they don't have many expenses.

bane 11y ago
I mean, that's cool. It'd be interesting if the article mentioned how much they made from selling their home. They could have sold their house underwater and are still servicing their old mortgage too. We don't know from the article what the story is. Suppose they made money and have a million in the bank, how long can they ride on that before they have to pack it in and move back to a place where they can get jobs? What about their kid's future expenses, how are those sorted out? The article mentions a couple things about their B&B: - 3 rooms - they get overflow from other B&Bs, not their own business. - they only operate during the summer So that puts an upper limit to what they can earn from that. Going rate for Milford, ON B&B is about $200/night. That's about $600/day. That's $54k/year before costs assuming full occupancy 7 days per week during the in-season.
- zdw 11y ago
  The music camp alone is $900 to attend, with 50 students, and probably fills. That's 45K gross for a 5 day gig - I'd imagine they make 1/3 to 1/5 of that in rent: https://oldschoolbluegrasscamp.wordpress.com/register/ https://oldschoolbluegrasscamp.wordpress.com/register/ I couldn't find a time when their AirBNB sites weren't booked, but they probably command a premium given the size and amenities and tolerance for animals/kids. The math on a lot of this appears to be a lot of "slow and steady"
goodJobWalrus 11y ago
You seem to think that they owned their house in Toronto outright, which is rare for a young family, especially in such expensive area. Also, median detached house price in Toronto is just over a million, so if they got a couple of million, they had above average house as well, so it's still not clear how are they affording all of that. But, I don't think that's the point of the article, maybe they are trust fund babies, who cares.
- Scoundreller 11y ago
  > Also, median detached house price in Toronto is just over a million, so if they got a couple of million Be careful, the Canadian real estate industry always publishes average sales prices, not median prices, and not median valuations. Which is why the numbers are rubbish: Their numbers are biased toward by whatever turns over more, and by a small number of high value sales. It's the same reason why average income is a farce. The average of 4 unemployed homeless individuals and a $250k/yr lawyer is $50k/year. The median is zero and more representative of reality. Once the industry starts publishing the average valuation of a 3bd 1.5ba home (detached or not, there's not a lot of detached inventory left!), listen to them. Until then, ignore their self-serving statistical butchery.
- cgh 11y ago
  We have friends in the same area who recently bought a fixer-upper for $1.2 million. You're right, I'm assuming they owned outright but regardless, I'm betting they walked away with a nice chunk of change if they bought more than five years ago.

by cgh 11y ago

bane 11y ago

I mean, that's cool. It'd be interesting if the article mentioned how much they made from selling their home. They could have sold their house underwater and are still servicing their old mortgage too. We don't know from the article what the story is. Suppose they made money and have a million in the bank, how long can they ride on that before they have to pack it in and move back to a place where they can get jobs? What about their kid's future expenses, how are those sorted out? The article mentions a couple things about their B&B: - 3 rooms - they get overflow from other B&Bs, not their own business. - they only operate during the summer So that puts an upper limit to what they can earn from that. Going rate for Milford, ON B&B is about $200/night. That's about $600/day. That's $54k/year before costs assuming full occupancy 7 days per week during the in-season.

zdw 11y ago
The music camp alone is $900 to attend, with 50 students, and probably fills. That's 45K gross for a 5 day gig - I'd imagine they make 1/3 to 1/5 of that in rent: https://oldschoolbluegrasscamp.wordpress.com/register/ https://oldschoolbluegrasscamp.wordpress.com/register/ I couldn't find a time when their AirBNB sites weren't booked, but they probably command a premium given the size and amenities and tolerance for animals/kids. The math on a lot of this appears to be a lot of "slow and steady"

goodJobWalrus 11y ago

You seem to think that they owned their house in Toronto outright, which is rare for a young family, especially in such expensive area. Also, median detached house price in Toronto is just over a million, so if they got a couple of million, they had above average house as well, so it's still not clear how are they affording all of that. But, I don't think that's the point of the article, maybe they are trust fund babies, who cares.

Scoundreller 11y ago
> Also, median detached house price in Toronto is just over a million, so if they got a couple of million Be careful, the Canadian real estate industry always publishes average sales prices, not median prices, and not median valuations. Which is why the numbers are rubbish: Their numbers are biased toward by whatever turns over more, and by a small number of high value sales. It's the same reason why average income is a farce. The average of 4 unemployed homeless individuals and a $250k/yr lawyer is $50k/year. The median is zero and more representative of reality. Once the industry starts publishing the average valuation of a 3bd 1.5ba home (detached or not, there's not a lot of detached inventory left!), listen to them. Until then, ignore their self-serving statistical butchery.
cgh 11y ago
We have friends in the same area who recently bought a fixer-upper for $1.2 million. You're right, I'm assuming they owned outright but regardless, I'm betting they walked away with a nice chunk of change if they bought more than five years ago.