We have more safeguards than Greece, etc. I would take the analysis you do while jogging, with a grain of salt.
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Are house prices going to come down?
- Thread starter rashidme
- Start date
We have more safeguards than Greece, etc. I would take the analysis you do while jogging, with a grain of salt.
OpenGambit
Banned
I always wondered how much easier my life would be if I could just blame the government for everything that sucked in my life, rather than taking responsibility for it.
Couple that with participation awards, mandatory promotion through school and parental coddling ... the future looks bright with the perceived sense of entitlement and lack of accountability.
Quoted for emphasis. yes. The whole thing. X1000
daught
Well-known member
(taxes)/(earning)x100=percentage of how much I blame the government for what sucks in my life. Fair?
It used to be just the bitter 65+ year old "I'm old but I never worked toward a pension so gimme one for free so I can complain about it" types. Now it's every ****ing failure in the country from 16-60 it seems.
The government offers so many legal ways to defer taxes to help you out, that it'd be silly not to take advantage of it. No one is just gonna give you something for nothing, but they make it available so that if you put some effort in, it's not so bad.
OpenGambit
Banned
This means I could complain a hell of a lot... But I don't.
You have to look at Edmonton to see an example of a drop and it's the backwash of the oil boom. $600k houses being sold for a substantial loss if they were bought in the last 10 years but... Nothing like the US. Still a lot of Mericans unloading $200K homes for under $50k
We'll get there.
We'll get there.
It doesnt matter if you're dealing with equity markets or real-estate markets -- it always comes back to supply and demand. A few posts have already pointed this out. The one thing I will not accept though is that "this time its different" or "it wont happen in Canada." And that is because I've seen (even believed the first time) "informed professionals" lie all the way to the bottom.
I remember Abbey Joseph Cohen with Goldman Sachs saying, for months, that the tech wreck was nothing more than a "spirited pullback" to "more reasonable fundamentals." And we all remember how that turned out! When you look at our debt to income levels (that are far greater than the U.S. ratios were when their real estate tanked), or at the number of condo's in major urban centres that are speculative buys/rentals you get a sense for how quickly things could turn. Speculators will not wait to see if the markets come back.... they will list rental units, stop payments on units being built... And that supply will kill whatever demand appears to be there.
I sold my last house in August and am anxious to own again. I am renting now. But given how much of my monthly income is going into savings/investing I am willing to wait it out for months or years if need be. I suspect that within a couple of years I'll own a reasonable home in Toronto for an almost reasonable price. But what the hell do I know?!
I remember Abbey Joseph Cohen with Goldman Sachs saying, for months, that the tech wreck was nothing more than a "spirited pullback" to "more reasonable fundamentals." And we all remember how that turned out! When you look at our debt to income levels (that are far greater than the U.S. ratios were when their real estate tanked), or at the number of condo's in major urban centres that are speculative buys/rentals you get a sense for how quickly things could turn. Speculators will not wait to see if the markets come back.... they will list rental units, stop payments on units being built... And that supply will kill whatever demand appears to be there.
I sold my last house in August and am anxious to own again. I am renting now. But given how much of my monthly income is going into savings/investing I am willing to wait it out for months or years if need be. I suspect that within a couple of years I'll own a reasonable home in Toronto for an almost reasonable price. But what the hell do I know?!
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magnus
Member
The GTA housing market is being influenced by some very unique circumstances which will likely prop the market up for another 10+ years, unless we suffer a complete economic collapse, which is certainly a possibility.
a few years back immigration laws changed in Canada so that very few immigrants without significant finances gain access. Asians, Indians and eastern europeans with very deep pockets are buying up every bit of single family dwelling stock available and often more than one home as they buy for children as well. Last year 112,000 new immigrants entered the GTA and only 12,000 new homes were built and a great many of these new immigrants are looking to buy.
As for existing single family dwellings, there is very, very little stock left and no room to build more in the inner GTA area. New home speculation is rampant in Milton and Oakville and some folks are making some nice $$$ off the current real estate anomoly caused by the immigration situation. Within Toronto itself, many economists are predicting single family home (not so much for condos) prices will rise 50% over the next 7-10 years.
There is, of course, a chance the market will dump, however, I would not count on it if I were looking for a home to buy for my family. If it were me, I would buy sooner rather than later.
a few years back immigration laws changed in Canada so that very few immigrants without significant finances gain access. Asians, Indians and eastern europeans with very deep pockets are buying up every bit of single family dwelling stock available and often more than one home as they buy for children as well. Last year 112,000 new immigrants entered the GTA and only 12,000 new homes were built and a great many of these new immigrants are looking to buy.
As for existing single family dwellings, there is very, very little stock left and no room to build more in the inner GTA area. New home speculation is rampant in Milton and Oakville and some folks are making some nice $$$ off the current real estate anomoly caused by the immigration situation. Within Toronto itself, many economists are predicting single family home (not so much for condos) prices will rise 50% over the next 7-10 years.
There is, of course, a chance the market will dump, however, I would not count on it if I were looking for a home to buy for my family. If it were me, I would buy sooner rather than later.
this.
For making $ in real estate it is. But in many other ways it's not.
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^^^^ I am with you on this. With all the rich immigrants and off-shore investors buying any and all available houses (not condos), at least house prices will hold stable. Condos seem to be a different story, as they are built like crazy non-stop, with no infrastructure upgrades to support them.
Rich immigrant families?
Last i heard people were complaining that they could no longer get a mortgage since the new rules came into effect, now all of the sudden they have the cash to buy everything in sight? something smells fishy here
One of the things I fear about the Toronto market is that it is being fuelled by foreign speculation (as I understand it). It's this influx of foreign interest that is keeping prices on the rise.
There will eventually be a down cycle (history always repeats itself this way). The question is how down the down will be. I am not smart enough to know the answer, but if the market cools sufficiently that the foreign speculation ceases, it could exacerbate the situation.
There will eventually be a down cycle (history always repeats itself this way). The question is how down the down will be. I am not smart enough to know the answer, but if the market cools sufficiently that the foreign speculation ceases, it could exacerbate the situation.
photoshop to show the bank that their income is higher than it is.
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