I have a variable mortgage as well, but the difference between you and I is that I live in my condo. I also don't have any other places to live in if I sell my place so I rather just suck it up and work harder to make enough money to pay for my mortgage. 😢
Everyone is in a different situation. I have clients who chose to pay the interest rate difference ontop of regular payments, some decided to increase payment all together. Some are selling. All depends! Good luck 💪
Let's see! I don't disagree. The price trajectory looks to be going down. Need to adjust to the market as a buyer or seller. Maybe more rate increases too.
Definitely will collapse even more. There is an over supply of condos now in Toronto. Very few are selling. Sellers are constantly terminating their listings and putting them back on the market at a lower price.
I never understood why people went with variable rate mortgages at the bottom of interest rate cycles. The logic should be go variable if you expect rates to drop and go fixed if you expect rates to go up. So at 0.80 % all these people expected further decreases to ... what 0.25 % ?? C'mon people you pay a tiny bit extra at 2.25 fixed vs 0.80 and get to sleep better. I would have loved to be American and lock in 3% for 30.
Because there is this thing called stress test which in turn from your 2.25 you need to qualify 4.25😮. And guess what never before it happened an 11x rate hike in 20 years so blame all the plebs who dreamed on housing.
Best rates are for insured mortgages, you're right. When you put 20%+ the rate is a bit higher. This video simply points out the potential payment increase comparing different rates. Potentially, the numbers are actually worse!
If you don't have a credit score around 880 or can't show you could pay cash. If your net worth is high enough you can get the best mortgage rate in the country.
We had the best rate out there but it was variable! the rate increased to just under 7% our income and mortgage approval made no difference. We put 20% down.
Dear Gomer-Pyle, We are at the top of the market entering into a correction. The prices will not increase over time, do not be a simpleton, do you know do not get caught with your pants down.
You have to be careful and mindful of your situation. Risk management. 30yr avg price change in the GTA is in the 6%-7% range. Of course, there are cycles and ups and downs along the way.
Gotta love realtor math. It’s the best kind it seems. Seriously these guys are such morons even if the price appreciation was 10% and if rates increased by 5%, your cashflow issues would still be an issue. Like why the fuck would you not stress test your own situation lol. At least you’re transparent about the overall representation of slimy realtors. I won’t even comment on all the fees incurred to sell the place. The land transfer tax cost. You’d be lucky to break even and keep your original down payment
To be honest, I didn't have a clear plan with this purchase. We were lucky to have broken even throughout some months. Including purchase and sales fees we did still profit after sale but this is not the case for majority of condo situations. Simply pointing out the mortgage increases people are experiencing are causing some people to jump ship. Everyone, including us, should have assessed the situation alot better!
Because governments don't normally wage economic terrorism against their own citizens using interest rates among other things. They had a policy of Japanese style ultra low rates no matter what happens to, we are dictators hike! Hike! Hike! They are already way too high none of this was necessary. Inflation is coming from government deficit spending until that's addressed you can only impoverish the plebs so much until they rebel.
Greedy land lords need to rent out their condos for below $500 a month. A home is a human right. No person should pay a dollar more than $500 a month. These greedy landlords keep jacking up the price. Note, I vote NDP and I am woke. I also believe in UBI. Employed people should not earn more than an unemployed person, that is a form of discrimination.
Lol. If you bought the condo recently and there isn't much equity you start questioning. However, if you bought a long time ago in the 300k-400k range there's lots of equity. Markets go up and down..right now it's down and some equity is disappearing. Good chance it'll come back up in the future.. owners can definitely still hold and come out okay. All depends!
@realpropertyhelp that's the crazy canadian mind set that the market will go up forever it sounds like gambling not investing plus wages need to go up drastically for housing investments to make sense in Canada this is why I moved across the border get paid more and the houses are way cheaper for more space. Penny pinching will not make you financially free. To get to your first million would probably take almost 30 years with your investment plan
@@himchief6015 I prefer properties with the potential of 2-4 units vs condos. Which is why I decided to move on. Tons of opportunity in the States too. Returns could be better elsewhere.. research required!
I talk to a lot of people about real estate. Lots of people are considering and moving to other markets. It's tough to qualify for GTA properties.. Saving for down payment is tough. It's easier when you're selling and re buying with a high down payment. I'm happy with my decision too!
I do not get it!!! as a realtor: a) how did you invest in Condo? How/why did you fail to predict the upcoming interest rate hike? c) I am curious how you advise/guide your buyer. However, thanks for the honesty that you shared your experience with us as a realtor.
Great questions! A) Tbh I didn't have an "investment plan" at the time. I liked the location and project & thought pre con prices would go above $1000/sqft soon. This was priced under. I wasn't wrong about that! I lucked out being able to break even and make some $ most of the time I held it. Most condo investments are cash flow negative on a monthly basis. B) As for interest rates..no one could've predicted this. It's all wonky because of the pandemic and government decisions. They dropped rates too low for too long now they had to drastically increase them & quickly. C) Msg for buyers: If you have a good down payment & are comfortable with your monthly expenses with today's interest rates then it could be a good time to buy. Prices have dropped and will likely go higher in the future once rates drop & buyer demand floods back into the GTA. This will happen, just a matter of time. Hope this helps! ❤
only an idiot would get financial or business advice from his realtor! LOL....do your home work, talk to your CPA and real estate lawyer before signing any real estate deal!
I have a variable mortgage as well, but the difference between you and I is that I live in my condo. I also don't have any other places to live in if I sell my place so I rather just suck it up and work harder to make enough money to pay for my mortgage. 😢
Everyone is in a different situation. I have clients who chose to pay the interest rate difference ontop of regular payments, some decided to increase payment all together. Some are selling. All depends! Good luck 💪
That make sense. Whoever was gobbling up real estate will have to rethink in this Brave new world
Risk management is key. Assessing different outcomes, having plan a, b, & c. No other way!
Great video; very informative!
Thank you!! 🙏🙏
Thanks for the infrmation , a good video.
♥️👋🙏
Condo market has cooled way down, it's really a buyer's market right now. Time to get in.
Condos in the low 500s to mid 600s is a nice zone. Or luxury condos for $900-$1000 per sqft or less. 👌👌👌👌✅
Good luck with that with 4% inflation, watch maintenance sky rocket
If you think condo prices are now low, wait until you see what the prices are next year.
I agree with you!
Let's see! I don't disagree. The price trajectory looks to be going down. Need to adjust to the market as a buyer or seller. Maybe more rate increases too.
Not significant dips tho.. inflation still adjacent to reposes previous gains.
Definitely will collapse even more. There is an over supply of condos now in Toronto. Very few are selling. Sellers are constantly terminating their listings and putting them back on the market at a lower price.
I never understood why people went with variable rate mortgages at the bottom of interest rate cycles. The logic should be go variable if you expect rates to drop and go fixed if you expect rates to go up. So at 0.80 % all these people expected further decreases to ... what 0.25 % ??
C'mon people you pay a tiny bit extra at 2.25 fixed vs 0.80 and get to sleep better. I would have loved to be American and lock in 3% for 30.
You live and you learn, hopefully! Renewals are coming up for 5yr fixed though. Will be interesting to see how that plays out!
Because there is this thing called stress test which in turn from your 2.25 you need to qualify 4.25😮. And guess what never before it happened an 11x rate hike in 20 years so blame all the plebs who dreamed on housing.
Recency bias and pure stupidity. Basically uneducated about economics.
10 years ago got my condo for 126k sold for 400k in 2023 3x my money and a roof over my head for 10 years
yeah so what. that is business. What goes up and also come down mate!
@@ronbonora7872 good when it goes down im buying with no interest win win for me lol good for me in dead
Hi Danilo, Great video. I thought when you put down 20% down, then your interest rate goes up because you are not getting a mortgage insurance.
Best rates are for insured mortgages, you're right. When you put 20%+ the rate is a bit higher. This video simply points out the potential payment increase comparing different rates. Potentially, the numbers are actually worse!
If you don't have a credit score around 880 or can't show you could pay cash. If your net worth is high enough you can get the best mortgage rate in the country.
The market has changed, buyers are coming in with low ball offers, take it or leave it. Some agents don't know how to work in this market.
Yes, fall 2023 was a good time to pick up condos. Prices are still decent today in early 2024. However, nicer units are now being bought.
oh please...''to many notes'' that is a quote from the movie AMADEUS
I appreciate the comment. I think you're right. Thank you.
An additional $2k per month just to pay the bank more interest. What a scam
I think if you waited 2 years you could have gotten about 25 percent more.
Probably, but at what cost? $1300 x 12 months is over $15k in losses! I prefer multi unit investment properties going forward.
The next 18 months will be interesting
Prices should rise about 25 percent in the next 18 months to the middle of 2025.
Things have picked up quite a bit since the beginning of 2024. If we see rate drops, we could also see more buyers coming off the sidelines.
The background music is too intrusive.
if there wre 3 of you, they why did you have such a high mortgage?
We had the best rate out there but it was variable! the rate increased to just under 7% our income and mortgage approval made no difference. We put 20% down.
Dear Gomer-Pyle,
We are at the top of the market entering into a correction. The prices will not increase over time, do not be a simpleton, do you know do not get caught with your pants down.
You have to be careful and mindful of your situation. Risk management. 30yr avg price change in the GTA is in the 6%-7% range. Of course, there are cycles and ups and downs along the way.
Background noise is told much.
Smart too get out 20:years of pain ahead
Let's see how it goes!!
Gotta love realtor math. It’s the best kind it seems. Seriously these guys are such morons even if the price appreciation was 10% and if rates increased by 5%, your cashflow issues would still be an issue. Like why the fuck would you not stress test your own situation lol. At least you’re transparent about the overall representation of slimy realtors. I won’t even comment on all the fees incurred to sell the place. The land transfer tax cost. You’d be lucky to break even and keep your original down payment
To be honest, I didn't have a clear plan with this purchase. We were lucky to have broken even throughout some months. Including purchase and sales fees we did still profit after sale but this is not the case for majority of condo situations. Simply pointing out the mortgage increases people are experiencing are causing some people to jump ship. Everyone, including us, should have assessed the situation alot better!
Shouldn't have got a variable rate mortgage - what was wrong with you people?
Oh man! Hindsight is 20/20. BOC promised low rates for years. People actually listened..go figure 🤷🏽♂️🤦🏽♂️
Because governments don't normally wage economic terrorism against their own citizens using interest rates among other things. They had a policy of Japanese style ultra low rates no matter what happens to, we are dictators hike! Hike! Hike!
They are already way too high none of this was necessary.
Inflation is coming from government deficit spending until that's addressed you can only impoverish the plebs so much until they rebel.
@@kingrealtyto who care what BOC promised! LOL
when variable was at 1.5% a couple years ago, fixed was 2.5%, so mindset was why pay 66% higher, what was wrong with you people?
Greedy land lords need to rent out their condos for below $500 a month. A home is a human right. No person should pay a dollar more than $500 a month. These greedy landlords keep jacking up the price. Note, I vote NDP and I am woke. I also believe in UBI. Employed people should not earn more than an unemployed person, that is a form of discrimination.
$1500 a square foot? What middle class person can afford that?
🤷🏽♂️🤷🏽♂️🤷🏽♂️ Great question. I wouldn't pay that. Resale properties have much better value and sometimes, more square footage.
Lol this is Penny pinching not worth the time and effort to make a couple bucks for a asset that has little to no value
Lol. If you bought the condo recently and there isn't much equity you start questioning. However, if you bought a long time ago in the 300k-400k range there's lots of equity. Markets go up and down..right now it's down and some equity is disappearing. Good chance it'll come back up in the future.. owners can definitely still hold and come out okay. All depends!
@realpropertyhelp that's the crazy canadian mind set that the market will go up forever it sounds like gambling not investing plus wages need to go up drastically for housing investments to make sense in Canada this is why I moved across the border get paid more and the houses are way cheaper for more space. Penny pinching will not make you financially free. To get to your first million would probably take almost 30 years with your investment plan
@@himchief6015 I prefer properties with the potential of 2-4 units vs condos. Which is why I decided to move on. Tons of opportunity in the States too. Returns could be better elsewhere.. research required!
@realpropertyhelp at least your more honest then most Canadian realtors
Same here. Sold in 2022. Best decision ever. Canada is a dump now. People are leaving the country at record levels.
I talk to a lot of people about real estate. Lots of people are considering and moving to other markets. It's tough to qualify for GTA properties.. Saving for down payment is tough. It's easier when you're selling and re buying with a high down payment. I'm happy with my decision too!
I do not get it!!! as a realtor: a) how did you invest in Condo? How/why did you fail to predict the upcoming interest rate hike? c) I am curious how you advise/guide your buyer. However, thanks for the honesty that you shared your experience with us as a realtor.
Great questions!
A) Tbh I didn't have an "investment plan" at the time. I liked the location and project & thought pre con prices would go above $1000/sqft soon. This was priced under. I wasn't wrong about that! I lucked out being able to break even and make some $ most of the time I held it. Most condo investments are cash flow negative on a monthly basis.
B) As for interest rates..no one could've predicted this. It's all wonky because of the pandemic and government decisions. They dropped rates too low for too long now they had to drastically increase them & quickly.
C) Msg for buyers: If you have a good down payment & are comfortable with your monthly expenses with today's interest rates then it could be a good time to buy. Prices have dropped and will likely go higher in the future once rates drop & buyer demand floods back into the GTA. This will happen, just a matter of time.
Hope this helps! ❤
@@kingrealtyto ... People have been calling it out for years, you just haven't heard about them.
They're not planning on lowering rates to what they were. 😮
@@rjkrjk8344I don't know! Back to 2% or less seems far-fetched!
only an idiot would get financial or business advice from his realtor! LOL....do your home work, talk to your CPA and real estate lawyer before signing any real estate deal!