slickpete83
Active Member
really good to watch, about why condo/homes are priced so high in Toronto(31% tax), he does a great job explaining it with data
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slickpete83
Active Member
good point
Undead
Senior Member
That's because they actually let higher interest rates knock people out of the market. Today, the banks are engaged in fraud extending mortgage amortizations which avoided a tidal wave of supply hitting the market last fall. And we had more free land 30 years ago. It's not a question that immigration is currently excessive and is a major part of the problem.
Cryptopreneur
Active Member
It's funny how most people think Canada's real estate never crashes because there's SO MUCH demand for housing. Sure, you have a lot of demand from rich immigrants that live in countries like China and Iran (source of their wealth is questionable to be honest), but everyone seems to ignore that laundering is probably a bigger factor and the government doesn't care. Why? Those same "launderers" have photos beside Trudeau. Those same launders own hotels around the city. Hell, go search up the owners of Edwards Village in Markham, and do some digging on those names.
Have you even charted out the rise in income vs the rise in home prices? It proves one thing. Most Canadians are equity rich. The problem with equity rich, is, well, you don't really have anything. But Cryptopreneur, I have $800k in home equity!!!!! WOW! You're paying the bank 8%-10% to use your OWN equity? NICE! And what exactly are you doing with that equity? Cryptopreneur, I'm going on vacation! NICE MAN!
Don't even get me started on this with regards to developers. Most developers are crooks. Colliers have crooks operating within them. Ever wonder why plazas are constantly replacing shops with different names? Over-market leases are intentionally being signed and the plazas are sold off to others (whom are unaware of the internal dealings) at low cap rates. These are called "phantom leases" and are illegal. What does this cause? A market that's almost impossible for new developers, like myself, to enter. On one hand you have families that had great grandfathers buy up most of the land, and they're just developing as generations pass, and then you have launderers using proceeds of crime to buy up lands, lots, assemblies, etc. and they could care less if they overpay or overspend.
Sorry for the rant. It's just such an easy fix, but it's being ignored, for good reason. Think about this. A family got busted for drug/steroids trafficking in the basement of their $10m Mansion, yet, they're developing at a minimum, 6 more mansions all at once as we speak. Is their wealth from their prosperous development business? Sure, if you want to turn a blind eye.
And don't even get me started on banks... @Undead pretty much nailed it. It's funny, Marketplace calls out those committing mortgage fraud, maybe they should make an episode on banks themselves.
Have you even charted out the rise in income vs the rise in home prices? It proves one thing. Most Canadians are equity rich. The problem with equity rich, is, well, you don't really have anything. But Cryptopreneur, I have $800k in home equity!!!!! WOW! You're paying the bank 8%-10% to use your OWN equity? NICE! And what exactly are you doing with that equity? Cryptopreneur, I'm going on vacation! NICE MAN!
Don't even get me started on this with regards to developers. Most developers are crooks. Colliers have crooks operating within them. Ever wonder why plazas are constantly replacing shops with different names? Over-market leases are intentionally being signed and the plazas are sold off to others (whom are unaware of the internal dealings) at low cap rates. These are called "phantom leases" and are illegal. What does this cause? A market that's almost impossible for new developers, like myself, to enter. On one hand you have families that had great grandfathers buy up most of the land, and they're just developing as generations pass, and then you have launderers using proceeds of crime to buy up lands, lots, assemblies, etc. and they could care less if they overpay or overspend.
Sorry for the rant. It's just such an easy fix, but it's being ignored, for good reason. Think about this. A family got busted for drug/steroids trafficking in the basement of their $10m Mansion, yet, they're developing at a minimum, 6 more mansions all at once as we speak. Is their wealth from their prosperous development business? Sure, if you want to turn a blind eye.
And don't even get me started on banks... @Undead pretty much nailed it. It's funny, Marketplace calls out those committing mortgage fraud, maybe they should make an episode on banks themselves.
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slickpete83
Active Member
slickpete83
Active Member
yeap, Canada makes no sense
lenaitch
Senior Member
wopchop
Building Toronto
Exactly. Mr. I've bought 150+ properties in the video is an integral part of the problem he is shouting about.
rdaner
Senior Member
This guy is intentionally scamming people as he must know why there is a price difference between the two sides as anyone who has been there knows.
afransen
Senior Member
NF Ontario is not the nicest town out there, and NF, NY makes it look charming.
Bojaxs
Senior Member
This seems kind of desperate.
afransen
Senior Member
This is going to become a lot more common with rates being so much higher and condos at best sideways for the past few years.
Toronto Rocks
Active Member
Really, how do we know that the Vendor may be moving onto bigger and better things? Like a better job transfer out of the city, or got engaged and wants to buy a bigger place elseehere with their new partner. One motivated vendor does mean the market is crashing. We still have a huge shortage of supply which still exceeds demand. The title of this thread has been in place for 14 years. Maybe it should The Current State of the Real Estate Market?
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afransen
Senior Member
The dynamic of preconstruction seems to be shifting. It used to make sense to pay a big premium for preconstruction because the market will appreciate even more by the time the unit is delivered. Now that rates are higher and the resale market is not obligingly continuing to rise at 10% annually, many folks will be stuck not able to qualify for the mortgage to close and not able to assign at or above their precon price. These folks will be the bag holders.
Toronto Rocks
Active Member
Agreed that rates are higher now than a year ago, however one listing with a motivated vendor (regardless of the reason) does not constitute a trend. Let's see some solid data first, before we assume the pre-construction market may crash. It still comes down to supply vs. demard, regardless of the rates, demand is still greater than supply. Also many of the large developers have very deep pockets, so they can hold onto units (or rent them out for a year) so that they don't reduce their profit margins.
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