People are putting these investors in a bubble. They are just "investors". Many, possibly a much higher percentage are regular people with mortgages on their own home and drew equity out of their homes to invest in the condo market. They didn't just buy condos, they also invested in REITs. When this all comes crashing down, these people will have to put their homes up for sale, because their condos won't sell, and their REITs will be gated. That is when the housing market will really snowball. You ain't seen nuthin' yet!
I never thought about the REIT side of the market as being affected as well, but I can see how that could happen. These trust companies own so much real estate. Thanks for watching. 👍
there are also the HELOC down payment gifts kids got from parents and bought condos/town homes. If they loose jobs, can't afford bills due to prices on everything going up. Kids and their parents are on the hook.
All that TO condo frenzy activity over the last few years proved to be a mirage all this time. FOMO drew in a lot of naive investors. Your numbers prove what I've been saying all along. Real Estate worked for your parents and grand-parents because homes were a lot cheaper. Like up to 300% or more even. So your wages can support a mortgage.
Positive cash flows generally do not exist in land supply constrained cities like GTA with the Greenbelt. Cash flows generally exist to fund the cost of maintaining the building. In land constrained markets, the land prices and land price returns are a much larger part of the investments. Ergo, negative cash flows. There are housing markets in the US where the land portion of the house is almost $0, the house is very little, and the rent is also little, but cash flow is high. The land appreciation is almost $0 in those markets.
That’s an interesting market that many would not think of considering. Are most of those properties investor-owned? It takes about a 40% down payment to cash flow positive in Toronto. Thanks for watching. 👌
It will get even worst in 2025 and 2026 when many condos are completed and up for sale by investors. The days of condos prices going up in the last 10 years are over. With less immigrants coming to Canada, I just wonder what will happen to those excess supply of condos.
Appreciate the detailed breakdown! Could you help me with something unrelated: My OKX wallet holds some USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). Could you explain how to move them to Binance?
I recently sold half my tech stock holdings due to all-time highs, leaving me with $400k. Should I invest in ETFs now or wait for a market correction considering potential inflation?
From $37K to $45K that's the minimum range of profit return every week I thinks it's not a bad one for me, now I have enough to pay bills and take care of my family.
Another realtor is trying to gain popularity from the delusional Reddit crowd but when time comes will change his shoes and start telling them they are missing out. Anything for the moment of fame and business referrals.
⚡️ QUESTION ⚡️ Do investors cause home prices to become unaffordable? 🤔
People are putting these investors in a bubble. They are just "investors". Many, possibly a much higher percentage are regular people with mortgages on their own home and drew equity out of their homes to invest in the condo market.
They didn't just buy condos, they also invested in REITs. When this all comes crashing down, these people will have to put their homes up for sale, because their condos won't sell, and their REITs will be gated. That is when the housing market will really snowball.
You ain't seen nuthin' yet!
I never thought about the REIT side of the market as being affected as well, but I can see how that could happen. These trust companies own so much real estate. Thanks for watching. 👍
there are also the HELOC down payment gifts kids got from parents and bought condos/town homes. If they loose jobs, can't afford bills due to prices on everything going up. Kids and their parents are on the hook.
@fofal I have seen a lot of this, but also between friends and family members, not just parents. Thanks for watching 👌
All that TO condo frenzy activity over the last few years proved to be a mirage all this time. FOMO drew in a lot of naive investors. Your numbers prove what I've been saying all along. Real Estate worked for your parents and grand-parents because homes were a lot cheaper. Like up to 300% or more even. So your wages can support a mortgage.
Glad you enjoyed the video and found the information valuable. Thanks for watching. 👍
Negative cash flow plus depreciation is a killer
☠️💸
and inflation, lost even more value on the homes.
Super insightful video!
Glad you think so! Thanks for watching 👌
Positive cash flows generally do not exist in land supply constrained cities like GTA with the Greenbelt. Cash flows generally exist to fund the cost of maintaining the building. In land constrained markets, the land prices and land price returns are a much larger part of the investments. Ergo, negative cash flows.
There are housing markets in the US where the land portion of the house is almost $0, the house is very little, and the rent is also little, but cash flow is high. The land appreciation is almost $0 in those markets.
That’s an interesting market that many would not think of considering. Are most of those properties investor-owned? It takes about a 40% down payment to cash flow positive in Toronto. Thanks for watching. 👌
But my realtor said Real Estate only goes up n up n up 😅
)Ok. I guess I should hop on the bandwagon too.) Real estate prices are only going up and up!!! 👌
Two things :
1. We just saw the tip of the iceberg.
2. Rate cuts will not save the housing market dear FOMO Pumper.
Fear of missing out on what? This was an explanation of what investors lost. Thanks for watching!
@FredTamRealtor realtors synonym is FOMO ⛽.
@MR007-r3f oh. I see. 🤷🏻♂️
It will get even worst in 2025 and 2026 when many condos are completed and up for sale by investors. The days of condos prices going up in the last 10 years are over. With less immigrants coming to Canada, I just wonder what will happen to those excess supply of condos.
This is all 100% true. Selling at a loss still means no capital gains taxes and instead a capital loss. Thanks for watching!
Appreciate the detailed breakdown! Could you help me with something unrelated: My OKX wallet holds some USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). Could you explain how to move them to Binance?
Yoo gain a little hot on that mic son!
I noticed after recording 😅
RE people remind me of crypto bros in 2017 lol
👍
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@@WinniAltieriexactly that's why I always seek Mr J Clark's guidance in all I do 😊
I recently sold half my tech stock holdings due to all-time highs, leaving me with $400k. Should I invest in ETFs now or wait for a market correction considering potential inflation?
Celebrating a $30k stock portfolio today from a $6k start. Investing wisely has given me time for family and future plans.
From $37K to $45K that's the minimum range of profit return every week I thinks it's not a bad one for me, now I have enough to pay bills and take care of my family.
Another realtor is trying to gain popularity from the delusional Reddit crowd but when time comes will change his shoes and start telling them they are missing out. Anything for the moment of fame and business referrals.
Never take any advice from a realtor.