Don't feel sorry for those so-called investors. They are the reason that brought up housing prices in the first place to the point nobody can afford them.
No they're not...The reason is Boc & federal government..if boc had done the raising of the rates in 2015 (I remember 2 bedroom bungalows selling for 1 5 million at parkview hills.. st. Clair & O'connor) so boc raising rates in 2022..too late now...
Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.
Considering the present situation, diversifying by shifting investments from real estate to financial markets or gold is recommended, despite potential future home price drops. Given prevailing mortgage rates and economic uncertainty, this move is prudent, particularly due to stricter mortgage regulations. Seeking advice from a knowledgeable independent financial advisor is advisable for those seeking guidance.
You're correct! With the help of an investment coach, I was able to diversify my 450K portfolio across markets and produce slightly more than $830K in net profit from high dividend yield equities, ETFs, and bonds.
''Aileen Gertrude Tippy’’ is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
This reference seems valid.. Just looked up her full name on my browser and found her webpage without sweat, over 15 years of experience is certainly striking! very much appreciate this.
The problem is the jobs are in the city fir most of us. I would love to buy a small house near lake Erie n live a simple life but for now I have to live in the city for work n I'm not interested in living in the GTA spending 2 hours in traffic. It's worth it for me to pay a premium to get to work in 15-20mins. But long-term, yes I do want out.
@@TheBlindandDeafLifeGuard I guess they didn't realize that housing prices were rising faster than people's income so they didn't actually know what they were doing.
Yep I spent last winter touring through Asia, there are plenty of people over there will real wealth... but what idiot would trade a godlike lifestyle in their home country among their business/friends/family/etc, in exchange for a 500sqft 1bed in canada?? The thought that we are bringing in foreigners of any real economic value is absolute comedy.
@@acz88dump the kids? There aren't many changes you can do with 3 kids. Daycares and rent could easily eat up 7000 from your pay. Imagine how much you have to make and what lifestyle you could have to alter.😂
These prices per square foot are ludicrous even after the reductions! Condo prices in Florida are falling and prices per square foot under $150.00 are available.
I was speaking to a renters agent in Toronto who did a lease with me and she told me her clients had bought studio apartments in precon in the area (Yonge/Dundas) at 750k and were coming up for mortgages soon. 750k for 400 sq ft studios!!!!
@@acz88 feels so good right now if you don't have to pay 40-60k interest per year and don't need to worry about declining house prices. If the situation doesn't change, you're right, I will be renting forever from people like you who will subsidize my housing.
There are 2 different condo markets right now. The one that is hurting is the one focused on investor because all of the units that are losing money and not attracting attention are those generic and small condos that were designed purely for rentals, not for an owner to actual live in. I'm in the market to buy right now and I don't even bother looking at those kinds of listings because I want a home, not just an investment opportunity. Units that are actually good, meaning good layout, nice space, good management, nice view, those are still selling and not losing money.
I bought a Tridel 1540sq ft in 1993 ($188,900.00). A person 2 floors above listed this year at $888,000.00. Just to live downtown people are paying way too much for shitty layout shoe boxes. I live 10 minutes from the Guildwood GO train/Via Rail station (26 minutes to Union Station). My foyer is so large it could fit a bed! Master bedroom 23ft long. Kitchen with breakfast nook. I have lots of space and I love my condo. Been here 31 years now. I don’t know how people could live in these tiny shoe boxes? Nobody wants them now! Pure garbage! They never made sense!
I'm seeing more and more new SF homes being built/advertised with more bathrooms than bedrooms, and often wonder if they're doing this knowing that sooner or later those big new houses will have to be subdivided into tiny apartments for anyone to be able to afford to rent them. In other words, building for future greedy "investors", not average people.
I’m not even involved with this “fuckery” and this video hurts. I looked at one pre con project early 2000’s and did not pursue b/c I couldn’t digest the #’s.
I have lived in Toronto for almost 6 years and have purposely not bought a condo or any property. This is one of the reasons why. I already own property in Calgary and after years of the value taking a beating its completely shot up and now I am very much in the green. No regrets.
@gormenfreeman499 LOL that thing just keeps going and going. Its interesting to see how that stock behaves over the next few years. They have a good strategic plan and are very careful with how they use their cash. Would not be surprised if that stock keeps going up given the company is being managed exceptionally well.
More immediately than a collapse in the real estate or stock markets, inflation directly impacts people's standard of life. It is hardly surprising that the present market attitude is so negative. If we are to live in this economy, we are in dire need of assistance. ETF and stock markets are still unpredictably volatile, just like the housing market. My $350k" portfolio has been reduced to rubble.
In my opinion, it was much easier investing back in the 80s but it’s a lot trickier now, those making consistent profit in these times are professionals reason I’ve been using an advisor for the past 5 years to consistently build my portfolio in preparations for retirement.
@@LucasBenjamin-hv7sk Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
It's almost as if people who had no business getting into real estate investing, didn't know f all about economics (and what happens when governments spend like drunken idiots), and just assumed interest rates would be 2% or less forever....this makes me laugh....
Jordon you forgot to add all the cost associated with closing a pre-con 🤭 2022 I had to pay 66k just in closing cost Good luck to all the buyers and sellers out here stay strong 💪🏽
I looked at the bank of Canada inflation calculator and put in 846 in 2017 and it put that as inflation adjusted at $1041 in 2024. So inflation adjusted condo prices are back to below 2017 now. Ouch!
The 1k+ sq ft places aren't struggling to sell. It's the 400 sq ft shoeboxes that no one wants for over $3K per month in mortgage. Many OG buyers never intended to actually live in those floorplans or units - ever - and just saw them as an investment opportunity. That market is delusional and I hope things falls back down to 2016 prices, like $300K.
He is not off maybe 7 yrs as if statistics is proven right, must eventually revert to the mean. House prices have a lot to drop at least 20% and if the mean point is carried longer into the future, then the drop is much higher.
This happened in the USA in 2008 and the whole world went into a recession lmaooo Wishing for the world to burn so you can buy something you can’t afford doesn’t work very well in reality.
Another aspect to predict will be if construction falls so much, how much will be the job losses in the region and these people will definitely have to move out. Construction sector is a big job provider. Prices go up when economy does well and goes down when economy is bad (i.e. no jobs). Another point people will not immigrate here if there are no jobs or cost of living is very high compared to what they make.
Meanwhile I live in Barrie, about 50 minutes north of Toronto and we have so many empty condo units but they are still building this 35 story eyesore by the lake. The downtown area is old and not really close to the highway so there is no way that many people live there and the first third of the building is parking garage.
True and when you make a cocktail with greed, CCPs money laundering through Chinese investors with a pinch of help from liberal marxist policies supporting this money laundering, tada! You get the wonderful Canadian real estate fiasco. It's beyond repair now. Noone wants to buy these assignments. It's super high risk.
Good to hear. Buy a condo what do you have? An apartment with maintenance fees, insurance costs, heating, hydro, cable, taxes, etc. etc. And prices are only going down from here, and we've just seen the beginning of it.
can you explain what blanket appraisals are and their significance? you kind of hint at them being a major stopgap to a serious problem but I don't understand what they are.
Well, common sense tells me they are keeping actual appraisals from the public, protecting investors like a blanket so they can sell. Once appraisals go back to being done per individual unit, publicly open, the panic begins. The value will be far less.
I'm reading the comments and notice how everyone who wants to defend foreign investors always mentions how the number of foreign investors is low compared to domestic investors or buyers. Our housing market is like an auction. And if you've ever been to an auction, you would understand that it only takes 2 people, even in a room with 100, 200, 300 or more people to bid up the price to crazy levels.
Thanks for great info! Question. You mentioned this assignment sale won't be recorded anywhere publically. Does this also mean CRA won't know about this transaction? If so, wondering how CRA will calculate the tax on gains if your friend is to sell this condo after closing.
Too bad, so sad....it will happen in Calgary too...they are overbuilding....latest condo development turned to rentals...they couldn't sell them and they have been empty for weeks.....I live in a townhouse condo and the next door neighbour is an immigrant owner....he just recently kicked out some nice Canadian kids to raise their rent to a ridiculous rate, couldn't get his price, some Asians moved in and he had to let the condo go for less rent than the Canadian kids were paying........I hate investors.
Great video! We are definitely seeing the other side of speculation now, hope these stories help cool off future demand for pre con flipping. Also should account for opportunity cost of having deposit tied up in the condo. SP 500 is up 85% over the past 5 years.
There is a newish high-rise building in Vancouver called "the Butterfly" where you pay 1.5M for a one bedroom... the reason given by the realtors who are selling this units are "you buy and live with rich people"
It's a joke, they think that people will be riding bikes when 6 months of the year it's cold as F outside.. plus the roads they are doing for the amount of cars and condos doesn't make any sence to be sustainable in the near future.
People need to first understand one very basic fact before investing in condos: condo apartments are NOT real estate. Buying a condo apartment is essentially equivalent to buying a car parked on the 30th floor. You own nothing but a depreciating asset plus the joy of paying for all the maintenance and repairs.
I have absolutely no clue what’s foolishness are going through peoples minds to pay that much for a condo. An acreage or estate home, sure but not for a 700sq ft condo. Like seriously??
Impossible I remember people saying housing never goes down. Could you imagine if housing didn't start to correct all the people would still be saying housing is a good deal. Lets just hope Foreign Investors don't have to sell if their local markets are declining and we don't put a stop to 25 years of mortgage fraud.
People need to stop thinking/saying that 600K for a condo with less than 1000 sq ft is a good deal. That is insane! A 700 sq ft condo should be going for 150K to 200K MAX! 10-15 years ago, you could buy a house in Toronto for 300K. Have incomes quadrupled in 15 years? Has quality quadrupled in 15 years? If anything, people are making less now than 15 years ago. The only reason that house prices went to a million bucks was because interest rates went from 9, 10% down to nearly 0. This made carrying a 1 million dollar mortgage easier to carry. But now that interests rates are heading back up, that will be impossible to carry. And I think eventually the interest rate will be hitting 15 to 20% in order to save the dollar - but we are probably still a few years away from that. Do the math - how much do you have to pay per month for a 500K mortgage if you have a 10% interest. Now do 15%. Now 20%. Very quickly people will realize that any condo over 100K is expensive, as is any house over 250K. Anyone getting into the market now while prices are dropping, thinking they are getting a bargain is insane. Do the math on your mortgage if interest rates increase to 10-15% and then see what kind of a bargain you got. Eventually - those getting out now at the relatively small loss of 200 to 300K will be seen as geniuses. Just look at China. People making less than 1000 a month are owing millions on property that's gone bust. And that's in one of the most populated places on earth. Here in Canada, it's one of the most sparsely populated places. All the government has to do is ok new land for construction and prices will drop to less than a quarter of what they are now. It's an artificial market.
1:20 never try to catch a falling knife. Prices have a long way down to go still! Two bedrooms 11x8 and 9 x6? Those are the size of closets...LOL! That condo isn't worth $200K in a proper market with interest rates at 12%.
Could those losses be planned as a way to launder money through Toronto? There are a lot of properties in the GTA are getting sold quickly after bought for 100k plus losses. It stinks.
I think the population boom argument to support a longer term bullish view, is overstated. Per unit occupancy math needs to be re-done. It is well known that people are now cramming themselves into smaller and smaller places e.g. four people living in a bachelor unit. A stroll through any downtown condo reveals absolutely jammed elevators as both owner-occupiers and tenants take on more and more roommates. Property managers are simply looking the other way, as garbage overflows and building infrastructure buckles under the weight of far more occupants than the building was designed to house. This phenomenon will only get worse over time.
just wanted to chime in on the current situation with Toronto condo flippers. I've been in the real estate game for 17 years, and if there's one thing I've learned, it's that cash flow is king. You might feel like you're losing $1,000 a month, but think of it as reinvesting. During COVID, I kept a close eye on the daily economic news and saw the interest rate hikes coming. I sold some properties at peak prices and reduced my mortgages on others. Now, all my properties are cash flow positive. I have a few closings coming up for units I bought back in 2017 for around $350-450K. I can flip them now or cover 90% of my TMI costs with the high rents. In a few years, the market will boom again. So, the key takeaway? Don't buy if you can't afford the potential "loss".. Real estate is a long game, and you need to be prepared for the ups and downs. Stay smart and keep investing wisely.
If you’ve been in r/e for only 17 years you haven’t seen anything interesting. You lucked out, but you haven’t learned anything until you go through a serious downturn.
Re: "I can flip them now or cover 90% of my TMI costs with the high rents." How nice for you to be able to freeload off of other people by offloading the carrying costs of your poor "investment" choices onto tenants. What you're doing is an especially parasitic form of extortion and should be illegal.
Toronto has consistently ranked among the worst housing bubbles in the world for as long as I can remember. It's about time the bubble popped and we got a correction
I paid $700k for a 325 sq ft unit at One Delisle. Why do I have multiple realtors eager to be my agent when I sell this on assignment all assuring I'll profit on this? Based on what I see, I don't think One Delisle will profit.
Even with the cash to pay in full, $700k for a 600 sqft condo seems crazy. Compared to renting in a rent controlled building, my monthly costs would more than double, for something that is not really that much of a step up.
Good. Hate what they have done to this city. If there's no demand for that overpriced luxury bullshit, they will start making buildings that actually help the community have a place to live.
All these condos should be below $800 / sq ft. The more pain the more consolidation are required. The spread between income vs. asset value gap is still to wide.
Stay away from Moss Park and Allan Gardens. It is scary walking near there. Many shelters and homeless services in that area. Which is good for the ppl who need them, but most of those people are also into drugs and crimes.
@@inderjeetkaur720 if they can fix up the place and move the shelters further out north or east and clean up, landscape the park it could be a lovely place as there are some very nice places near there
Cant find any $1 listings so the mkts. must be doing well lol .. am waiting for -0.5% prime and banks to pay me to take a mortg. like in the EU some years back
It’s crazy that people are losing money on 2018 purchases! Meanwhile, the S&P 500 is up 100% since 2018. Canadian dirt is a terrible investment, sorry you all got rekt 😂😂😂
252 church is another pump and dump from centrecourt ! Horrible layouts / horrible prices / horrible finishes ! Centrecourt will have crazy closing costs And as for worst part, after 5 months of final closing in their projects this year, they are in hiding and not paying commissions to the agents who sold units … Be aware of this builder ! I would not suggest them and i sure wont work in their projects ever again
Hey, I'm brand new to your channel. Rented all my life but for the first time, I'm actually considering buying a place for myself. My current place's lease is up in Oct, so I'm looking to see my options for purchasing a place (or continue renting if the prices aren't good). I don't understand your video. With all the talk about rent prices skyrocketing, which I personally feel the pain of and have experienced, how can there be so many losses in the buying/selling market?
Interestingly in the USA in 2009 when the great recession was really picking up steam, when house resale prices really started collapsing, rents continued to go UP! That was because so many people were being foreclosed on, former owners juiced the rental market. Certainly many other factors come into play, but don't be surprised to see rents continuing to go up up up should (when) the buy/sell market craters. The impact on rents takes a few years to clear out, but eventually they came down as well to reflect the lower cost of ownership.
Because they paid so much for their grossly inflated-value properties, thinking interest-rates would forever remain low (and values would only ever increase). Now that rates have increased their costs have gone up so much that they can't even find people willing/able to pay the extortion-level rents they'd need to break even.
I'm not sure why the positive side is current massive population growth- Ontario is expecting 100,000 less student visas issued in fall 2024 and TFW getting reduced to 5% of the general population will result in a net migration of approx 300,000 in 2025, a massive reduction as I'm sure you know.
Even worse news for the speculators is if they barrowed money for the down payments (loc, etc) and now they lost all that money; but they're still stuck with the debt paying on a loc or maybe even private money. ouch.
How does it make any sense that most of these 2/3 bedrooms don't have parking? Sure you live in the city, but not everyone wants to take transit (especially a family with 2 people working), and if you ever want to travel for vacation... you probably need a car.
I don't feel sorry for flippers losing, you take your chances just like the stock mkt. But why are these units so small architects, builders, city are all to blame I would pay upwards of 1/2 million dollars for a condo but not for a 600 sq ft unit. As the old saying goes "they're so small you have to go outside to change your mind".
Don't feel sorry for those so-called investors. They are the reason that brought up housing prices in the first place to the point nobody can afford them.
Investor is just another word for Speculator.
Let the " Passing a hot potato " game continue......
Yes they are the reason
They can all go broke and cry
Investors/ corporations screwing hard working people and not paying fair wages
It's not investors it's parasites
No they're not...The reason is Boc & federal government..if boc had done the raising of the rates in 2015 (I remember 2 bedroom bungalows selling for 1 5 million at parkview hills.. st. Clair & O'connor) so boc raising rates in 2022..too late now...
it's an investment. Sometimes investment lost money. Why feel sad? i lost money on my investment in stocks all the time.
1 million for such small box condo what is wrong with people
$1 Million for a box, smack in the middle of a high concentration of homeless drug addicts who have free roam of the area.. awesome deal lol
@@edwardlenovo3240 Maybe it is. It is almost like "buy one and get one free". Buy a condo and get dugs for free! lol
@@edwardlenovo3240 moss park one of the most disgusting streets in Toronto lol
AND a monthly strata fee on top of it...forever!
@@JJTMStudioyup the maint fees are crazy high downtown
Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.
Considering the present situation, diversifying by shifting investments from real estate to financial markets or gold is recommended, despite potential future home price drops. Given prevailing mortgage rates and economic uncertainty, this move is prudent, particularly due to stricter mortgage regulations. Seeking advice from a knowledgeable independent financial advisor is advisable for those seeking guidance.
You're correct! With the help of an investment coach, I was able to diversify my 450K portfolio across markets and produce slightly more than $830K in net profit from high dividend yield equities, ETFs, and bonds.
Would you mind providing details on the advisor who helped you?
''Aileen Gertrude Tippy’’ is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
This reference seems valid.. Just looked up her full name on my browser and found her webpage without sweat, over 15 years of experience is certainly striking! very much appreciate this.
The only good deal is not buying a condo and leaving the box carton city of Toronto.
exactly, 600k + with no parking living in TO? lol great life right there
The problem is the jobs are in the city fir most of us. I would love to buy a small house near lake Erie n live a simple life but for now I have to live in the city for work n I'm not interested in living in the GTA spending 2 hours in traffic. It's worth it for me to pay a premium to get to work in 15-20mins. But long-term, yes I do want out.
Who figured that buying a million dollar condo could be flipped? This is crazy risk buying
Passing a hot potato --> 🥔
It's not risk buying it's gambling. You could have a good time in Vegas at at the blackjack table in Bellagio for $400,000.
It worked for 10 years ..... these people made bank until they became bagholders.
Don't feel sorry for them.
@@TheBlindandDeafLifeGuard I guess they didn't realize that housing prices were rising faster than people's income so they didn't actually know what they were doing.
It depends on the size of the condo
Fastest growing city.....but the people we are bringing in have no money.
Poor people = cheap labor!
If people have one million why they should come leaving home country
Fastest running-into-the-ground city.
Yep I spent last winter touring through Asia, there are plenty of people over there will real wealth... but what idiot would trade a godlike lifestyle in their home country among their business/friends/family/etc, in exchange for a 500sqft 1bed in canada?? The thought that we are bringing in foreigners of any real economic value is absolute comedy.
They are quite exceptional Uber eats bicycle riders though 😂
I have 3 kids and a wife and rent a townhome for 3600/month . It does not leave me any money to save for a downpayment
Then change your lifestyle and job.
@@acz88yeah, like that. He applies to become a CEO or better invests in crypto 😂😂😂
@@acz88dump the kids? There aren't many changes you can do with 3 kids. Daycares and rent could easily eat up 7000 from your pay.
Imagine how much you have to make and what lifestyle you could have to alter.😂
@acz88 hahahahaha. You don't have much life experience do you. One day you will get it.
Stop with the indulgences!
These prices per square foot are ludicrous even after the reductions!
Condo prices in Florida are falling and prices per square foot under $150.00 are available.
Our leaders are too far left for house prices to be that cheap!
Florida home insurance is 5-8x more than Ontario 😂
They went as low as about 50 dollars a square foot for apartments in Edmonton that weren't leasehold in 2021 and 2022.
Must be an old crappy building. It costs a lot more than that to build a new unit.
@@Peter-sz1snthey really arent even left wing. They’re just SCUM
Better think about an insulated tent near a food bank.
From where to buy an insulated tent?
Or a parking spot for 70K.
I was speaking to a renters agent in Toronto who did a lease with me and she told me her clients had bought studio apartments in precon in the area (Yonge/Dundas) at 750k and were coming up for mortgages soon. 750k for 400 sq ft studios!!!!
That agent did their client wrong to let them buy that unit for $750L.
The agent must be lying.
As a first time (maybe) buyer, I approve these losses.
good time to be on that side of the table, good luck 👍
You’re forever renting so doesn’t matter.
@@acz88You sound salty 😢
@@acz88 feels so good right now if you don't have to pay 40-60k interest per year and don't need to worry about declining house prices. If the situation doesn't change, you're right, I will be renting forever from people like you who will subsidize my housing.
@@acz88
Not forever.
Just till prices crater.
There are 2 different condo markets right now. The one that is hurting is the one focused on investor because all of the units that are losing money and not attracting attention are those generic and small condos that were designed purely for rentals, not for an owner to actual live in. I'm in the market to buy right now and I don't even bother looking at those kinds of listings because I want a home, not just an investment opportunity.
Units that are actually good, meaning good layout, nice space, good management, nice view, those are still selling and not losing money.
There's only one market in Canada, the BIGGEST bubble market.
Same, I was shopping during covid and whenever I see 3 bedroom being squeezed into 800-900 sq ft it’s an immediate no.
I bought a Tridel 1540sq ft in 1993 ($188,900.00). A person 2 floors above listed this year at $888,000.00.
Just to live downtown people are paying way too much for shitty layout shoe boxes.
I live 10 minutes from the Guildwood GO train/Via Rail station (26 minutes to Union Station).
My foyer is so large it could fit a bed! Master bedroom 23ft long. Kitchen with breakfast nook. I have lots of space and I love my condo. Been here 31 years now.
I don’t know how people could live in these tiny shoe boxes? Nobody wants them now! Pure garbage! They never made sense!
Why would a "2" bedroom condo that is 650 sq ft need 2 full bathrooms??
I'm seeing more and more new SF homes being built/advertised with more bathrooms than bedrooms, and often wonder if they're doing this knowing that sooner or later those big new houses will have to be subdivided into tiny apartments for anyone to be able to afford to rent them. In other words, building for future greedy "investors", not average people.
Trying to justify the prices lol
So 2 people can have separate washrooms?
😂.. sounds reasonable @@victorchen9170
roommate living
I’m not even involved with this “fuckery” and this video hurts. I looked at one pre con project early 2000’s and did not pursue b/c I couldn’t digest the #’s.
That is why we need the governments (especially the fed gov) to incentivize us to get into the real estate market.
I have lived in Toronto for almost 6 years and have purposely not bought a condo or any property. This is one of the reasons why. I already own property in Calgary and after years of the value taking a beating its completely shot up and now I am very much in the green. No regrets.
Future slums. And that future looks closer than expected.
But we've been saying this for a decade.
It will get even cheaper when the recession hits
Hits? Mafaka... we're already in a depression
@@danielcooper5698welcome to the delusion of most Canadians.
We are already in a recession. Tf do you mean
@gormenfreeman499 LOL that thing just keeps going and going. Its interesting to see how that stock behaves over the next few years. They have a good strategic plan and are very careful with how they use their cash. Would not be surprised if that stock keeps going up given the company is being managed exceptionally well.
We've been in a recession for 2 years. They just won't talk about it on the news.
Good! Flippers are speculators; that's a risky business be it gold or real estate. This flipper got precisely what they bargained on.
Finally precondo guy being honest telling it like it is no matter his interest
"Being honest" lol dude said Moss Park area is nice xD hes still a snake salesman trying to shill his products
More immediately than a collapse in the real estate or stock markets, inflation directly impacts people's standard of life. It is hardly surprising that the present market attitude is so negative. If we are to live in this economy, we are in dire need of assistance. ETF and stock markets are still unpredictably volatile, just like the housing market. My $350k" portfolio has been reduced to rubble.
A lot of people are still making returns on investment this period. You just have to be very grounded or solicit the help of a professional.
In my opinion, it was much easier investing back in the 80s but it’s a lot trickier now, those making consistent profit in these times are professionals reason I’ve been using an advisor for the past 5 years to consistently build my portfolio in preparations for retirement.
@@LucasBenjamin-hv7sk My partner’s been considering going the same route, could you share more info please on the advisor that guides you
Google Annette Marie Holt and do your own research. She has portfolio management down to a science
@@LucasBenjamin-hv7sk Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
It's almost as if people who had no business getting into real estate investing, didn't know f all about economics (and what happens when governments spend like drunken idiots), and just assumed interest rates would be 2% or less forever....this makes me laugh....
Yeah... those parks are lovely....wonderful neighbours in the area.
lol
Tent dwellers who are hooked on tranq?
@@retrogamer82
Zombiefication
of the neighborhood.
Yeah lovely homeless neighbors. You could even become one in the near future with these prices!
1900/psf is cray cray.
Jordon you forgot to add all the cost associated with closing a pre-con 🤭
2022 I had to pay 66k just in closing cost
Good luck to all the buyers and sellers out here stay strong 💪🏽
Of course he did lol this guys a snake and a salesman first.
Wait until the Chinese investors start dumping.
Make foreign owners and residents pay income taxes on foreign incomes like most countries do.
Wait till they start dumpling
@@J-tu3hw
What's the point.
Govt will waste that money.
Govt bloat is reaching epic proportions.
@@huskavarnapunkband yum
Indians will take alternative 😅
i wonder what the condo fees are for a million dollar studio.
like who the eff is paying so much for so little.
One bedrooms typically are $700 and up for maintenance fees
Around $700-$1000 per month
@@acz88
Good God that is a lot.
@@retrogamer82 Where the hell? Must be 1 Bloor or Aura, because I'm paying $390, and that's including fiber internet for 4yrs.
I looked at the bank of Canada inflation calculator and put in 846 in 2017 and it put that as inflation adjusted at $1041 in 2024.
So inflation adjusted condo prices are back to below 2017 now.
Ouch!
The inflation numbers BoC put out are fake.
It's 3x that number in reality.
Note also that the inflation numbers that are published are fake and misleading. The real number is always way higher than they publish
The 1k+ sq ft places aren't struggling to sell. It's the 400 sq ft shoeboxes that no one wants for over $3K per month in mortgage. Many OG buyers never intended to actually live in those floorplans or units - ever - and just saw them as an investment opportunity. That market is delusional and I hope things falls back down to 2016 prices, like $300K.
What software are you using to highlight those condos like that
Ok. How many Uber drivers among those Condo flippers? 😂
Hope the prices go back 20 years, back to normality.
Let me guess, you think you will be able to buy the home you want eh? If things drop that far it will be end of days.
@@JaBlanche For people who don't know how to manage money.
He is not off maybe 7 yrs as if statistics is proven right, must eventually revert to the mean. House prices have a lot to drop at least 20% and if the mean point is carried longer into the future, then the drop is much higher.
@@DiggyT lol, you think it would only be catastrophic for home owners and investors? OK.
This happened in the USA in 2008 and the whole world went into a recession lmaooo
Wishing for the world to burn so you can buy something you can’t afford doesn’t work very well in reality.
Another aspect to predict will be if construction falls so much, how much will be the job losses in the region and these people will definitely have to move out.
Construction sector is a big job provider.
Prices go up when economy does well and goes down when economy is bad (i.e. no jobs).
Another point people will not immigrate here if there are no jobs or cost of living is very high compared to what they make.
Will the mortgage defaults be offloaded by banks onto the taxpayer via CMHC?
And isn't that a total fraud.
Meanwhile I live in Barrie, about 50 minutes north of Toronto and we have so many empty condo units but they are still building this 35 story eyesore by the lake. The downtown area is old and not really close to the highway so there is no way that many people live there and the first third of the building is parking garage.
Greed is a bitch.
True and when you make a cocktail with greed, CCPs money laundering through Chinese investors with a pinch of help from liberal marxist policies supporting this money laundering, tada! You get the wonderful Canadian real estate fiasco. It's beyond repair now. Noone wants to buy these assignments. It's super high risk.
Where or HOW can we (the general public) find out the average price per sq. ft. for different neighbourhoods ❓❓❓Ref: the chart shown at 10:25 min?
Good to hear. Buy a condo what do you have? An apartment with maintenance fees, insurance costs, heating, hydro, cable, taxes, etc. etc.
And prices are only going down from here, and we've just seen the beginning of it.
can you explain what blanket appraisals are and their significance? you kind of hint at them being a major stopgap to a serious problem but I don't understand what they are.
Well, common sense tells me they are keeping actual appraisals from the public, protecting investors like a blanket so they can sell. Once appraisals go back to being done per individual unit, publicly open, the panic begins. The value will be far less.
@@ConscienceofChrist thank you for explaining.
Hey I am looking to lose some money on a pre-construction condo. How would it be best to get in touch with you?
😂
😂🤣😂
Is Vancouver going through a similar thing? I don't see any Vancouver properties listed on your site
I'm reading the comments and notice how everyone who wants to defend foreign investors always mentions how the number of foreign investors is low compared to domestic investors or buyers. Our housing market is like an auction. And if you've ever been to an auction, you would understand that it only takes 2 people, even in a room with 100, 200, 300 or more people to bid up the price to crazy levels.
Price has to come down as much as 60% of its current prices unless there is hyper inflation like a situation, like it was in Argentina.
That is what will “save” them
Thanks for great info!
Question. You mentioned this assignment sale won't be recorded anywhere publically.
Does this also mean CRA won't know about this transaction?
If so, wondering how CRA will calculate the tax on gains if your friend is to sell this condo after closing.
Actually CRA will know b/c the original assignor will need to report this to CRA, claiming it as loss, is it?
Too bad, so sad....it will happen in Calgary too...they are overbuilding....latest condo development turned to rentals...they couldn't sell them and they have been empty for weeks.....I live in a townhouse condo and the next door neighbour is an immigrant owner....he just recently kicked out some nice Canadian kids to raise their rent to a ridiculous rate, couldn't get his price, some Asians moved in and he had to let the condo go for less rent than the Canadian kids were paying........I hate investors.
Great video! We are definitely seeing the other side of speculation now, hope these stories help cool off future demand for pre con flipping.
Also should account for opportunity cost of having deposit tied up in the condo. SP 500 is up 85% over the past 5 years.
These 600 650 don’t look too crazy compared to what we see here in Vancouver.
I've had many clients whose appraisals did not come in on the pre-construction side
There is a newish high-rise building in Vancouver called "the Butterfly" where you pay 1.5M for a one bedroom... the reason given by the realtors who are selling this units are "you buy and live with rich people"
Canada is a 3 star hotel charging 5 star fees
Best summation of Canada's current value ever spoken.
er, you should give correct attribution to that quote. :)
The thing is all these units dong come with a parking lot.
Don’t worry the city is installing bike lanes on major streets downtown that will fix that 😂
It's a joke, they think that people will be riding bikes when 6 months of the year it's cold as F outside.. plus the roads they are doing for the amount of cars and condos doesn't make any sence to be sustainable in the near future.
I pulled out the BoC inflation calculator - $846 in 2017 is $1047 today. So, inflation adjusted, we are below 2017 prices.
What is the appx breakeven average per sq/ft for a precon?
535 sq ft is a studio! And adding a second bathroom cuts the usable space even further.
@Precondo, please take a look at Toronto C8 C1 resale and explain YTD numbers.
People need to first understand one very basic fact before investing in condos: condo apartments are NOT real estate. Buying a condo apartment is essentially equivalent to buying a car parked on the 30th floor. You own nothing but a depreciating asset plus the joy of paying for all the maintenance and repairs.
And maintenance fees are getting out of control these days no one is talking about that yet 🤭
Not really. They appreciate if you pay a reasonable price rather than bid like mad in a hot market.
@@Jopie2112 These $700k condos cost $400k 10 years ago. If you paid $400k for cars, your "investment" would be worth $100K today. That's what matters.
At least they have enough money to lose. My sister sold her house in Pickering a year or so ago and bought a brand new one in Port Hope.
I have absolutely no clue what’s foolishness are going through peoples minds to pay that much for a condo. An acreage or estate home, sure but not for a 700sq ft condo. Like seriously??
Impossible I remember people saying housing never goes down.
Could you imagine if housing didn't start to correct all the people would still be saying housing is a good deal.
Lets just hope Foreign Investors don't have to sell if their local markets are declining and we don't put a stop to 25 years of mortgage fraud.
People need to stop thinking/saying that 600K for a condo with less than 1000 sq ft is a good deal. That is insane! A 700 sq ft condo should be going for 150K to 200K MAX! 10-15 years ago, you could buy a house in Toronto for 300K. Have incomes quadrupled in 15 years? Has quality quadrupled in 15 years? If anything, people are making less now than 15 years ago.
The only reason that house prices went to a million bucks was because interest rates went from 9, 10% down to nearly 0. This made carrying a 1 million dollar mortgage easier to carry. But now that interests rates are heading back up, that will be impossible to carry. And I think eventually the interest rate will be hitting 15 to 20% in order to save the dollar - but we are probably still a few years away from that. Do the math - how much do you have to pay per month for a 500K mortgage if you have a 10% interest. Now do 15%. Now 20%. Very quickly people will realize that any condo over 100K is expensive, as is any house over 250K.
Anyone getting into the market now while prices are dropping, thinking they are getting a bargain is insane. Do the math on your mortgage if interest rates increase to 10-15% and then see what kind of a bargain you got. Eventually - those getting out now at the relatively small loss of 200 to 300K will be seen as geniuses. Just look at China. People making less than 1000 a month are owing millions on property that's gone bust. And that's in one of the most populated places on earth. Here in Canada, it's one of the most sparsely populated places. All the government has to do is ok new land for construction and prices will drop to less than a quarter of what they are now. It's an artificial market.
1:20 never try to catch a falling knife. Prices have a long way down to go still!
Two bedrooms 11x8 and 9 x6? Those are the size of closets...LOL!
That condo isn't worth $200K in a proper market with interest rates at 12%.
Could those losses be planned as a way to launder money through Toronto? There are a lot of properties in the GTA are getting sold quickly after bought for 100k plus losses. It stinks.
I think the population boom argument to support a longer term bullish view, is overstated. Per unit occupancy math needs to be re-done.
It is well known that people are now cramming themselves into smaller and smaller places e.g. four people living in a bachelor unit. A stroll through any downtown condo reveals absolutely jammed elevators as both owner-occupiers and tenants take on more and more roommates. Property managers are simply looking the other way, as garbage overflows and building infrastructure buckles under the weight of far more occupants than the building was designed to house. This phenomenon will only get worse over time.
We are literally building ghettos. Tragedy what's happened to Canada. Really frustrating.
Was the flipper your buddy Joe Blows?
nah it was john doe
Somebody tell me the difference between these condos and the projects.
just wanted to chime in on the current situation with Toronto condo flippers. I've been in the real estate game for 17 years, and if there's one thing I've learned, it's that cash flow is king. You might feel like you're losing $1,000 a month, but think of it as reinvesting. During COVID, I kept a close eye on the daily economic news and saw the interest rate hikes coming. I sold some properties at peak prices and reduced my mortgages on others. Now, all my properties are cash flow positive. I have a few closings coming up for units I bought back in 2017 for around $350-450K. I can flip them now or cover 90% of my TMI costs with the high rents. In a few years, the market will boom again. So, the key takeaway? Don't buy if you can't afford the potential "loss".. Real estate is a long game, and you need to be prepared for the ups and downs. Stay smart and keep investing wisely.
Agree. But most of condo investors who have bought a property within the last 4-5 yrs are, I guess, cash negative.
If you’ve been in r/e for only 17 years you haven’t seen anything interesting. You lucked out, but you haven’t learned anything until you go through a serious downturn.
17 years in real estate and he thinks he’s seen a downturn 😂
Re: "I can flip them now or cover 90% of my TMI costs with the high rents." How nice for you to be able to freeload off of other people by offloading the carrying costs of your poor "investment" choices onto tenants. What you're doing is an especially parasitic form of extortion and should be illegal.
I thought the build cost for a Toronto condo was around $1400 a square foot? Joe we are down in the $800?
Depends if you are a buyer, seller, occupant, investor.
Toronto has consistently ranked among the worst housing bubbles in the world for as long as I can remember. It's about time the bubble popped and we got a correction
How many here, at your current earnings, would be able to buy a property if pricing reverted to levels 5 years ago?
I am leaving Canada for Taiwan to get out of this housing hell
Buy a diamond ring for $10,000. Sell it next year for $3,500. Hooray! I've finally figured out the Canadian real estate market.
I paid $700k for a 325 sq ft unit at One Delisle. Why do I have multiple realtors eager to be my agent when I sell this on assignment all assuring I'll profit on this? Based on what I see, I don't think One Delisle will profit.
Realized long ago that builders charge insane amounts and people will pay, but when you resell nobody's willing to pay exorbitant prices
you had me when you said $600k for a dog crate condo is a good deal 😂 high on these prices for so long you’re all detached from reality 😂
It's really not bad considering 10yrs ago, they would've been $400k.
We don’t have a supply is we have an affordability issue
696 sq feet, two bed rooms! how is it possible to make two bedrooms in such a tiny space?
Even with the cash to pay in full, $700k for a 600 sqft condo seems crazy. Compared to renting in a rent controlled building, my monthly costs would more than double, for something that is not really that much of a step up.
Good. Hate what they have done to this city. If there's no demand for that overpriced luxury bullshit, they will start making buildings that actually help the community have a place to live.
This is alright. I’m looking for a wheelchair accessible place in downtown, so the fact that the overpriced units are coming down is good.
All these condos should be below $800 / sq ft. The more pain the more consolidation are required. The spread between income vs. asset value gap is still to wide.
moss park is lovely? what's lovely about it, the needles or the bohemians fighting their imaginary tormentors?
Stay away from Moss Park and Allan Gardens. It is scary walking near there. Many shelters and homeless services in that area. Which is good for the ppl who need them, but most of those people are also into drugs and crimes.
@@inderjeetkaur720 if they can fix up the place and move the shelters further out north or east and clean up, landscape the park it could be a lovely place as there are some very nice places near there
@@MrMichaelBradfield agreed. Unfortunately doubt that will happen..
that's the joke
If no one buys and buyer defaults, what happens next?
You get sued by the builder.
Cant find any $1 listings so the mkts. must be doing well lol .. am waiting for -0.5% prime and banks to pay me to take a mortg. like in the EU some years back
Lot of burger flippers and security guards coming in recently. Where the money?
They bringing in that culture with a side of 🍛!
Investors have to sell before June 25rh to avoid 66% capital gains tax. Investors are leaving Canada for good.
I'm sure they'll talk to a tax advisor and realize you're completely wrong...
Great content as per usual👌
Appreciate it!
Any contacts in Ottawa?
bro pls suggest a condo ready to move in , my range is 500k max and i am a first time home buyer, working at kipling queensway
there are resale units now at Kipling station (cypress, kip, etc) that you can get under 500. Also check 17 zorra
@@Precondothanks bro i shortlisted one in 17 zorra yesterday will put offer tomorrow
I booked a pre con in Hamilton 802 sq ft for 868050 😢😢. It will be ready in 2028. Any hope?
It’s crazy that people are losing money on 2018 purchases! Meanwhile, the S&P 500 is up 100% since 2018. Canadian dirt is a terrible investment, sorry you all got rekt 😂😂😂
252 church is another pump and dump from centrecourt ! Horrible layouts / horrible prices / horrible finishes !
Centrecourt will have crazy closing costs
And as for worst part, after 5 months of final closing in their projects this year, they are in hiding and not paying commissions to the agents who sold units …
Be aware of this builder ! I would not suggest them and i sure wont work in their projects ever again
Flipping is just smoke screen for housing speculation. Falling market proves the point, that gains are not work they do.
Hey, I'm brand new to your channel. Rented all my life but for the first time, I'm actually considering buying a place for myself. My current place's lease is up in Oct, so I'm looking to see my options for purchasing a place (or continue renting if the prices aren't good).
I don't understand your video. With all the talk about rent prices skyrocketing, which I personally feel the pain of and have experienced, how can there be so many losses in the buying/selling market?
lol TAKE your MONEY and get out of CANADA. Too much Taxes, shit hole😮
Interestingly in the USA in 2009 when the great recession was really picking up steam, when house resale prices really started collapsing, rents continued to go UP! That was because so many people were being foreclosed on, former owners juiced the rental market.
Certainly many other factors come into play, but don't be surprised to see rents continuing to go up up up should (when) the buy/sell market craters. The impact on rents takes a few years to clear out, but eventually they came down as well to reflect the lower cost of ownership.
leave this place is a sh!thole
Because they paid so much for their grossly inflated-value properties, thinking interest-rates would forever remain low (and values would only ever increase). Now that rates have increased their costs have gone up so much that they can't even find people willing/able to pay the extortion-level rents they'd need to break even.
The basement accomadating 4 to 5 people. Gosh!! What a prison and cold windy weather.
Investors looking to sell and those who flip have only made it more expensive to purchase a house or Condo, for those who need a home.
I'm not sure why the positive side is current massive population growth- Ontario is expecting 100,000 less student visas issued in fall 2024 and TFW getting reduced to 5% of the general population will result in a net migration of approx 300,000 in 2025, a massive reduction as I'm sure you know.
Maybe my math is off, but is that $1 million master bedroom 9x9ft?💀
Even worse news for the speculators is if they barrowed money for the down payments (loc, etc) and now they lost all that money;
but they're still stuck with the debt paying on a loc or maybe even private money. ouch.
How does it make any sense that most of these 2/3 bedrooms don't have parking? Sure you live in the city, but not everyone wants to take transit (especially a family with 2 people working), and if you ever want to travel for vacation... you probably need a car.
I don't feel sorry for flippers losing, you take your chances just like the stock mkt. But why are these units so small architects, builders, city are all to blame I would pay upwards of 1/2 million dollars for a condo but not for a 600 sq ft unit. As the old saying goes "they're so small you have to go outside to change your mind".