First time watcher, good video. I'd add to your point at 21:01, Canadian government simply won't let a massive real estate crash happen. A lot of people don't realize that residential investment is 8% of Canada's GDP, compare that to only 4% in the states. Not saying a "crash" won't happen, but I'm confident the government would step on to try and provide some form of relief. Also a recommendation for your next podcast - I think you should take some questions from the comment section to address for your viewers, would also help with engagement. Here's one from me: What are your thoughts on 101 Spadina's crazy parking spot cost of almost 200k? Can this even be considered an investment when purchasing with a unit?
Thanks for watching and your positive comments! To answer, 200k for a parking spot is insane, but not as bad as some that I've seen for new construction projects in Yorkville. As the downtown population becomes less reliant on cars, I don't think parking is as important in investment condos. However, 101 Spadina is not targeted at investment units. This is more for the high end user. You can't place a price on convenience, if you MUST have a car. I remember when parking spots were $25,000 downtown. Then they slowly started creeping up in price. At the time, I thought $60,000 was expensive, but that's now the norm. Then it got to $100,000, and up. Bottom line, no it doesn't make for a good investment, but then again neither does a lot of asset classes in the world (fine wines, art, time pieces, jewellery, bitcoin, gold, etc). Aside from this high interest rate environment that we are in that has given us high yielding bonds and GIC's, I'm finding that there's less and less places for capital to be safe.
@@KennethYimHomesMakes total sense now that you mention the target market for that building, thank you for the detailed response. I'll be watching, keep it up.
First time listener. I like the casual format. The condo market in Toronto looks broken. Listings are increasing like a goat going up a mountain. A huge amount of new builds are completing over the next 24 months and the buyers can’t afford to close (and lot of the units are worth much less than they were purchased for). Interest rates are high (and inflation is likely to remain uncomfortably high). Taxes/insurance/fees are increasing. It is hard to increase rents. Lots of ‘investors’ are significantly cash flow negative. Condo prices look like they are starting to roll over = equity value is now falling. Slowing economy = higher unemployment; that can’t be good for real estate in general. And lots of ‘investors’ own a couple of condo’s. Things could get really interesting over the next 12 to 24 months. Best of luck to everyone.
Thank you for your comment! It's interesting that condo sales were down by -29.1% last month (year over year) yet prices were only down -1.5%. It's probably because investors are holding strong, the distressed sales aren't happening overall en masse. When I first saw all the major cities in Asia (Hong Kong and Taiwan) and saw the unbelievably low yields (approx 2%), with rents low and prices extremely high, I was shocked. I knew that this would come to Toronto at some point. Well, here we are.
@@KennethYimHomes time to get the popcorn and see how these rookie investor sellers hold out with 2-3k hole in their pocket each month 😂. Canada is done 😊
Not convinced that condo values are justified with the economic fundamentals of the GTA. Incomes are not strong enough to pay for cash flow POSITIVE rentals. As an investor I don’t pay for my tenants to live in my units in Calgary… the capital appreciation is extra. It shouldn’t be the basis to make the financials of rent make sense. Toronto “investors” are in a ponzi where fundamentals are far detached from reality.
No sympathy to these investors and real estate agents. They have driven us into a bubble for the Almighty dollar while regular families suffer the consequences .More regulation to persuade investors away would be welcomed imo.
What is happening as you know is that their is zero investors buying condos now which typically makes up 70% of the buyer's that's your problem in a nutshell.
Not alot of people have money but we accept chinese and other immigrants with money to come here and buy luxury shit. It's laughable how we can charge these people so much to come here so the white collars can have comfortable jobs, but the middle class suffers, and you make podcast Videos like this
