Condos built today are not worth what they are being sold for. They need to be at least 35% cheaper in order to be competitive and realistic. Nobody wants a tiny 1 bed + den sub 700 sqft roach box with exorbitant condo fee for $700K.
The problem is so many people adopted this get rich quick mentality. Real estate is a long term game. Buying today and turning around next year showing a profit is a ridiculous assumption but it seems people ha e come to expect it.
A quick fix is to bring back money laundering but China is in deflation, Indians the other group making up recent arrivals are smart as spoke to a few and say taxes are not worth it for med. term speculation etc
Pre con was worth it way before Covid, my sister bought another house 2016 when we thought 1m was high, closed 2 years later at 1.8m value, my niece bought Art Shoppe Karl Lagerfeld at Yonge and Eg 2014, did not close till 2020!!
50 cents is a lot for a GTA condo. The maintenance fee is $1000+/mo and u pay $300/mo property tax. These costs will increase every year while condo itself is a shoebox made from recycled toilet pepper depreciating in value. It’s just a toilet in the sky.
How dare u criticize realtors. Don’t u know they get 2 whole weeks of training? Experts in international finance & economics need like 7 to 10 years university & 20 years market experience. These people reach that level in 2 weeks! 😅
Without experience I’ve been saying since 2020 this price are insanely high, in the meantime everyone I talked to, were saying no the price is gonna keep going up, there’s no way that are coming down. Here we go. Cycle don’t lie
It would be interesting to see when more than 30000 newly built condos come for closing next year, at that time we may see home prices coming down by 30-40 percent
Nope. The condo market and the housing market in Toronto, are two separate markets. Housing prices are not plummeting like condos. And rents in houses are not plummeting. Because no family sees a condo as comparable to a house when they go to purchase.
The problem with condos is you don't really own the land. When my house disintegrates in 100 years the land will still be there, it will be mine, or my heirs, or whatever, but it will be definable, and buildable. If a condo building has to come down, and eventually they will all have to, where is your "property"? Youve bought the rights to occupy some space in the air, but not much more than that. Land is the asset, the structure is a liability.
When these people fail to close on the buildings that are finishing in 12-24 months, they'll forfeit their 20% deposits, and the developer will sell the units for 80% of the purchase price. The developer will get their money and the new buyer will get something closer to what's available on the resale market. Of course that assumes the development wasn't exclusively terrible 250 sq ft studios. Nobody wants those.
Unless money laundering comes back in the scale the chinese/hong kongers ran from 2005-2017 condos are dead money imo. Best option is air b&b if gov / condo boards still permit it to keep afloat till the mess is cleaned out ?
To me, it's no different from someone who thought they'd make a quick profit by purchasing shares in a 'high-flying' company, buying at its peak (without understanding the market conditions / dynamics) and then watching the share price plummet. They can either sell at the current market rate and lose money, or wait it out and hope that over the long term they'll be able to recoup their costs / make a profit. It's a long term game, and I have no sympathy for those that gamble with 'get rich quick' schemes and lose.
I feel bad for anyone who planned to make these units their primary rez; -Wrt investors, let them go bust;- it'll serve as a future lesson to everyone.
Developers brugbt the HK manhattan condo formula to toronto , they should have seen this coming those places are tiny islands with higher salaries, makes no sense for that here
One factor for sure and was well timed with Chinese / HK money laundering thru. Can real estate which has dried up and no others players to replace them yet plus rule changes etc etc
How will it be fine. Will jobs be coming back and investors coming back. You think people have money to pay $3k a month in rent. The whole industry was running on fraud to get mortgages and now it's all gone. 😮
@@teamsessa you should know if your in the business!!!! By 2027 interest rates will have settles to about 2% and people will realize that this is the bottom and will rush to buy but by then there will be no inventory and prices will go up........
Who made those prices up anyways??? Are you telling me that a co do in Barrie LAK hpuse in the drug infested downtown core is worth $900-$1.5 m??? Are you crazy??? But some idiot agent said they are!! The idiots who paid $800k for a $200k townhouse?? Houses in subdivisions worth let’s say $600k selling for $1.4m????
It’s all a lie, the big money are done, the pump follows a dump, it’s a cycle. Now it’s all about home owners, investors will run away somewhere in Africa soon
In Ontario are the deposits are held by the builder and backed by Tarion? If the average condo price is 650k, a 10% DP would be 65k, Tarion are compensating 20k and the bankrupt builder takes 45k?
I have a little character home on land that is worth much less than a concrete poorly built concrete Condo box in an even smaller space. Makes not sense.
The price of a property is the defined by the monthly payment. If interest rate goes down and I am talking about the fixed rate since it is 70% of the mortgages approved now. If the interest rate goes down, payment will go down, affordability increases, prices then increases. It is not recommended to abandon the property now. The government will do something, when the crisis approach. They are already discussing a number of solutions. Lowering rates is one. Increasing the amortization up to 40 years as it used to be with Harper. If sqf is $1000 now, if government and BOC do something, they will push it up back to $1300. Then the the new sqf for $1600 will be feasible. They will not let it crash. The resale prices are already affordable comparing the increase of wages. Wages went up 30% since 2018 and the prices are at 40% to 50% up from 2018 prices. They are close. They are adding another 5% in Oct and another 5% the next Oct 2025.
Your first sentence holds a lot of weight. Most buyers are less focused on purchase price but more focused on if they can afford the monthly payments. So, if rates come down and home prices go up, many buyers will be fine with that.
Only fools will jump into a mortage seeing the banks reduce rates. Inflation hasn't go down. Everything is expensive as last 2 years. And only the minimum wage went 30 from 2018. And the productivity is staggered. The unemployment rate in Ontario is over 8% now. Investors have fled the country because Canada is no Investor friendly now. Business are going bankrupt or closing. Income taxes and CPP rates have gone up. Canada is not rewarding for hard working people. Liberals can not artificially inflate the market for not long. The bubble will burst finally and will be bad than 2008
We shouldn’t say “condo” in GTA without defining what we mean. A GTA condo is actually just a toilet in the sky made from recycled toilet paper. The floor is made from recycled papper… the walls are made from papper… the doors are made from papper… and judging by the colour of the papper… I can only guess at its origins.
i fell asleep one time drunk out of my mind with my music blaring. woke up at 2am with music still playing. no noise complaint to my shock. concrete walls between units, seals on fireproof doors. around that same time all my friends were talking about how they were going to "war" with their Brampton neighbors. They sold their houses and bought condos on the water in Etobicoke. True story. Wouldn't it be nice to have a 24hr security guard keeping your neighbors in check? Welcome to stress free living.
Although it might be super annoying to say, some people clearly saw this whole scenario as the market was climbing to its peak in 2022, and even in 2021. And really, now it’s said, “how can the future be otherwise?” Like wow! The same thing was said in 2022, although too few were listening and believing. Any now, with 100,000 of foreign students and foreign workers not being in the country, matters are so much worse for Real Estate values. It will be interesting to hear people whine about a lack of supply over the next two years…
The condo market going to the crapper? What gives? I thought it was totally plausible that a 500sft shoebox should take a couple a lifetime to pay off. Ohh the lawyers. It’s going to be a super bull market for real estate lawyers over the next few years. J am usually no fan of lawyers but it’s time to pay the piper for all the profligate speculation. So awesome.
Will lawyers get paid a ton as people default or go bankrupt on RE debt Lawyers better get deposits first from RE owners & builders & banks to protect themselves
😂 de lulu sional. It’s a hot somewhat new GTA brand. Like Gucci but more upscale. Instead of paying $500 for bag made for $5… u pay $500K for a shoebox made for 50k.
It will touch the many ppl that are wealthy but greedy, I know ppl that gambled on multiple units. Not very many people are untouchable when it comes to bad investments. Unless you’re cleaning money
I find there is so much "talk" about condos and it is really getting tiring listening to the doom and gloom. Can you spend a little more time talking about other real estate? There are more than just condos.
People who bash pre-con are the same ones that say a 2014 Lambo is the same price as a 2024 Lambo..... pretty easy to see they are crazy. And no, if a buyer has the same dollars they would buy the 2024 one every time... newer is always more expensive.......... if the new Lambo went down in price, rest assured, the 2014 Lambo also went down in price (probably more in percentage terms).
@@GreenBeanGreenBean yep i am sure a shoebox condo in DT Toronto inspires the same as a limited edition Lamborghini that the make less than 10k for the whole world a year. That’s just a stellar comparison. Unless they plan on giving every new illegal that shows up at the border 500k to buy one of these condos I think we all know what’s going to happen here. I normally wouldn’t give you the satisfaction of a comment but this is truly absurd.
But but but.. if resale houses are priced similar to pre-cons, why would anyone waste 2-3 years, blocking 15% of the cost, pay rent during the meanwhile, when they can just move in right away and save all that trouble? Now.. what if the resale is just 2-5 years old? What then? Used Lambos don't appreciate in value do they? Maybe when they become vintage..
Ya, I don’t think you’ll ever need to worry about 20XX vs. Newest Lambo greenbean. 😂 How is that Honda civic u were so proud of? I thought you’d be bankrupt by now tbh. Your other bull bros seemed to have all dumped. 😢. Last bull standing. But not the Lambo type of bull…
@@xyz1663 you have a Honda civic? Yes we know all you bears are homeless. BTW I'm at 30% ltv and my 5 year fixed don't renew until 2028 so the spike and drop didn't affect me at all.
I had a feeling u were trying to dump all this time. What happened to Mr. Bull? While u were trying to FOMO people into buying u were desperately trying to dump, eh?
