In the example, a $200k down payment was assumed to be possible. If so, then would another column for "Today" not be the current purchase price but with the $200k down payment?
raising costs through increasing rates, never does make anything more affordable.........that's simple logic..........what it does do is lock out the lower tier of people who can't afford it anymore..........it's reducing volume of sales of things, not actual price decreases that is slowing the economy.
You mentioned in earlier videos of selling one of ur condo units and then purchasing a detach let us know how much u were able to sell the unit for and how much ur planning on buying the detach for
I believe the price correction is not finished yet. Interest rate hikes take time to filter through. Dont think the GTA market will crash but another 5-10% is very likely.
Most landlords are operating with negative cashflow. In other words, virtually every person renting from a landlord that purchased in the last 5 years is being subsidized. Today's rent increases are insignificant if comparing them to pre-pandemic rents so it all depends on the way you look at things. Given inflation, today's rents have not increased sufficiently to account for increases in costs. There is still plenty to play out in the RE market. July's interest rate increase will not be fully priced into the market until November and the most recent increase will not be priced in until January. Those that purchased in the last 2 years intending to become landlords will soon see negative cash flows balloon. Will some investors bail? Your guess is as good as mine. Psychology is driving the market more than fundamentals. Is there a supply imbalance? Sure, but its not as bad as some would have you believe. The reality is that RE in Toronto and Vancouver is still nowhere near affordable and to Tom's point, affordability hasn't improved much.
Bottom line, this country is horrible. There are only 3 desirable places that most people want to live in. Toronto, Montreal and Vancouver. Until this changes, Real Estate will ALWAYS B UNAFFORDABLE in Canada. This is just ridiculous as Canada is the 2nd largest country in the world. The problem is no one wants to live in places like Sudbury, North Bay, Thunder Bay as these place are generally colder AND more importantly there are NO JOBS THERE!!!!
We’re in the same situation. I just sold my condo in Montreal as a broker. I’m planning to move to Toronto at the end of this year, but it’s frustrated to find a freehold townhouse😢
New supply is heading to 0 real quick..........in 3-5 years there's gonna be another huge huge run up with the increases in population and incomes. No supply + massive demand = only one thing... ....and raising rates only makes new supply go to 0 even faster.
40 mil + property taxes savings could easily be a year worth of net salary, I’d be very happy to to save that as an emergency fund if I had the 200k for down payment
New regulation within GTA: (1) Can only own home here if live/work in GTA. (2) 2 homes max per family and must use one as prim residence and rent other if have second. (3) 20% property tax per year on each additional homes (3+) owned in GTA. (4) 100% tax per year on condos and semi & detached homes owned by foreign speculators and all institutional investors/speculators. (5) Further condo & fam home purchases by institutions for speculation or investment purposes is banned. No more trillion dollar money washing ponzy schemes. (6) Zero land transfer tax & zero income tax for developers building new quality 3+ bedroom condos and quality detached fam homes. Homes need to be modern, spacious, green, env friendly/sustainable,built to highest standards, and targeting avg local income mortgage levels to qualify for tax exemption (7) Funding for new bullet train connecting GTA. (8) Mortgage stress test must be prime + 5% with 30% left as disposable income after primary expenses/costs. This widely regarded as min needed so we have a striving local economy and people that can save for retirement. (9) No more lines of credit and 2nd and 3rd mortgages on same property. Should not b able to borrow on unrealized imaginary equity. (10) Rent control on all rentals with increase being max 2% (long term infl target rate) and 0% during recession. Owner must prove to renter personal use/occupancy if evict tenant for personal use. New tenant can’t pay more than previous tenant.
Always better to have a huge discount from the peak price and pay double the interest rate . why ? Because high interest only last a few years where as a few hundred dollars extra on mortgage will last a lifetime. Pick your poison wisely
Are you happy with the current state of the market?
Thanks Tom! You are one of the few people who tells the truth about Toronto Real Estate Market
Great info don't forget to mention that in the long term buying a property is mostly of the time a win
You are so smart. You should find a better looking agent and start a podcast.
In the example, a $200k down payment was assumed to be possible. If so, then would another column for "Today" not be the current purchase price but with the $200k down payment?
Great info Tom! Agreed the real saving is on the downpayment and selection. No more competition... Its something
Same story in Victoria, not nearly as drastic a drop in prices here but similar buyer sentiment and a lack of "affordable" housing still.
raising costs through increasing rates, never does make anything more affordable.........that's simple logic..........what it does do is lock out the lower tier of people who can't afford it anymore..........it's reducing volume of sales of things, not actual price decreases that is slowing the economy.
good, its better to pay lower price at higher rates. Rates will change but the price you pay, lasts for the life of the investment
You mentioned in earlier videos of selling one of ur condo units and then purchasing a detach let us know how much u were able to sell the unit for and how much ur planning on buying the detach for
Condo is sold. 800k range. House has not been bought yet.
Most people in Toronto don't even make $3000 a month, that's why they still living at home with their parents. $3500 for a mortgage is expensive.
I believe the price correction is not finished yet. Interest rate hikes take time to filter through. Dont think the GTA market will crash but another 5-10% is very likely.
Most landlords are operating with negative cashflow. In other words, virtually every person renting from a landlord that purchased in the last 5 years is being subsidized. Today's rent increases are insignificant if comparing them to pre-pandemic rents so it all depends on the way you look at things. Given inflation, today's rents have not increased sufficiently to account for increases in costs. There is still plenty to play out in the RE market. July's interest rate increase will not be fully priced into the market until November and the most recent increase will not be priced in until January. Those that purchased in the last 2 years intending to become landlords will soon see negative cash flows balloon. Will some investors bail? Your guess is as good as mine. Psychology is driving the market more than fundamentals. Is there a supply imbalance? Sure, but its not as bad as some would have you believe. The reality is that RE in Toronto and Vancouver is still nowhere near affordable and to Tom's point, affordability hasn't improved much.
Bottom line, this country is horrible. There are only 3 desirable places that most people want to live in. Toronto, Montreal and Vancouver. Until this changes, Real Estate will ALWAYS B UNAFFORDABLE in Canada. This is just ridiculous as Canada is the 2nd largest country in the world. The problem is no one wants to live in places like Sudbury, North Bay, Thunder Bay as these place are generally colder AND more importantly there are NO JOBS THERE!!!!
We’re in the same situation. I just sold my condo in Montreal as a broker. I’m planning to move to Toronto at the end of this year, but it’s frustrated to find a freehold townhouse😢
What Area are you looking at?
@@howy3333 Vaughan or Aurora, and you?
Just because prices are down it doesn’t mean it is affordable ! Salaries cant compete with the market.
Nope. "1.5M became 1.2M" doesn't mean it's affordable.
New supply is heading to 0 real quick..........in 3-5 years there's gonna be another huge huge run up with the increases in population and incomes. No supply + massive demand = only one thing...
....and raising rates only makes new supply go to 0 even faster.
40 mil + property taxes savings could easily be a year worth of net salary, I’d be very happy to to save that as an emergency fund if I had the 200k for down payment
New regulation within GTA: (1) Can only own home here if live/work in GTA. (2) 2 homes max per family and must use one as prim residence and rent other if have second. (3) 20% property tax per year on each additional homes (3+) owned in GTA. (4) 100% tax per year on condos and semi & detached homes owned by foreign speculators and all institutional investors/speculators. (5) Further condo & fam home purchases by institutions for speculation or investment purposes is banned. No more trillion dollar money washing ponzy schemes. (6) Zero land transfer tax & zero income tax for developers building new quality 3+ bedroom condos and quality detached fam homes. Homes need to be modern, spacious, green, env friendly/sustainable,built to highest standards, and targeting avg local income mortgage levels to qualify for tax exemption (7) Funding for new bullet train connecting GTA. (8) Mortgage stress test must be prime + 5% with 30% left as disposable income after primary expenses/costs. This widely regarded as min needed so we have a striving local economy and people that can save for retirement. (9) No more lines of credit and 2nd and 3rd mortgages on same property. Should not b able to borrow on unrealized imaginary equity. (10) Rent control on all rentals with increase being max 2% (long term infl target rate) and 0% during recession. Owner must prove to renter personal use/occupancy if evict tenant for personal use. New tenant can’t pay more than previous tenant.
Always better to have a huge discount from the peak price and pay double the interest rate . why ? Because high interest only last a few years where as a few hundred dollars extra on mortgage will last a lifetime. Pick your poison wisely
Only for those with a lot of cash. Other than that the answer is no.