nope, just that end user that lost (as end users are the ones that usually buy penthouse units).... the investor that bought it at 2nd floor pricing won.... the next sale will restore the pricing order. one sale does not make a trend.
Condos were never cash flow positive even in the best of times. Investors put in money for appreciation and not cash flow so assuming investors are only doing it for cash flow is a mistaken assumption.
@@Stormshfter Which isn't there now but the forecast of banks is appreciation of 5% for GTA real estate this year so cash flow won't matter is the point.
@@IrfanKhan-pw4ojappreciation doesn't matter to an overpriced asset. If no one is buying/can't afford it then I don't care if it goes up by 30% in a year. The bigger the increase, the sharper the eventual drop. People will see the housing market is tied to the economy. If unemployment goes up, how are people going to service their mortgages?
Canada is just a market for money launderers. No one can afford homes right now unless you make 200k+ salary, which is very little of the overall population
Question. Why would end-users want to purchase condos now when there's more foreseeable decline in home values in the next two years? The condo value was standing too high to begin. Why wouldn't end-users wait longer?
@Prime Properties TO What is the likelihood of Ontario factoring in updated property taxes since my understanding is that property taxes were last based on 2016 levels? That's my big concern: shouldn't my tax double if the government decides to assess property taxes based on current levels? I have a few investment properties, and that's one of my biggest concerns. I think most if that were to happen that would put most people over the edge.
Correct. MPAC Hasn't rewasses since 2016. The tax rate (multiplier) has gone up recently in Toronto. The city can usually adjust the mill rate to fund budget. It's the province that does the reassessment Iirc
Negative cashflow =/= losing money... just like paying off your credit card is not losing money, your asset value is going up as your debt is going down..... having all your expenses exceed rent is actually losing money. Also, the actual floor level should be included... as a 2nd floor unit will always be cheaper than the penthouse..... guess which one is more expensive..... and which one gets more rent and is easier to rent because it has a view of the water instead of the next building. The rent would probably be a bit more, as you are probably putting in the average rent in the area but for a high floor with a good view in a brand new building....and depends on if a parking spot is included or not which you didnt say... that could be 100k value right there if the guy bought it with a parking spot and then is keeping the parking spot. This guy looks like he paid extra for a penthouse and then is selling firesale for a low floor value lol
Also, the people that buy penthouse units are typically end users, not investors (I am an exception as I only buy premium units)........and so the end user that panic sold is the one losing, meanwhile the person that picked up this unit for a firesale price was indeed an investor. Just like in the GFC, end users panic sold or couldnt qualify and investors (blackrock and hedge funds) bought everything.
Zen, I know this is not your topic, but I would like you to discuss what a trade war with the US will do to Canada's housing market? Will we have a property Crash? Is now a good time to buy, with this trade war looming? What the worst scenario?
@@PrimePropertiesTO well sir please indulge us. :-) Could you provide us with two scenarios? The first, where homeowners barely made it with the shirts on their backs, and the second, where the game of musical chairs continues and the asset bubble keeps growing.
Price history 2005: The average price per square foot for a condo in Toronto was $347 2019: The average price per square foot for a condo in Toronto was $887 2021: The average price per square foot for a new condo in Toronto was $1,296 2022: The average price per square foot for a new condo in Toronto was $1,541 Q3 2022: The average asking price per square foot for a new, unsold condo in Toronto was $1,689 I saw this coming but am baffled as to why all buyers missed the elephant in the room -very puzzling
Now. The entire building lost $260,000 each.
And counting
nope, just that end user that lost (as end users are the ones that usually buy penthouse units).... the investor that bought it at 2nd floor pricing won.... the next sale will restore the pricing order.
one sale does not make a trend.
Can you share the program you are using for calculating cash flow?
Email me, I'll send it to you. It's an excel sheet.
Zhen@PrimePropertiesTO.Com
Hey man, the value you’re bringing is insane, but sharper edits would make it stick even more. Need a hand with that?
The muppet boiler room condo flipping market is dead 😂
Condos were never cash flow positive even in the best of times. Investors put in money for appreciation and not cash flow so assuming investors are only doing it for cash flow is a mistaken assumption.
They did it for the appreciation.
Which isn't there anymore.
The lack of cashflow is the slow bleed.
@@Stormshfter Which isn't there now but the forecast of banks is appreciation of 5% for GTA real estate this year so cash flow won't matter is the point.
@@IrfanKhan-pw4ojappreciation doesn't matter to an overpriced asset. If no one is buying/can't afford it then I don't care if it goes up by 30% in a year. The bigger the increase, the sharper the eventual drop. People will see the housing market is tied to the economy. If unemployment goes up, how are people going to service their mortgages?
Thanks.
You're welcome
Only in Canada can you pay 600k for a 1 bedroom Condo at loss. Anywhere else 600k buys you a mansion.
Canada is just a market for money launderers. No one can afford homes right now unless you make 200k+ salary, which is very little of the overall population
Question. Why would end-users want to purchase condos now when there's more foreseeable decline in home values in the next two years? The condo value was standing too high to begin. Why wouldn't end-users wait longer?
@Prime Properties TO What is the likelihood of Ontario factoring in updated property taxes since my understanding is that property taxes were last based on 2016 levels? That's my big concern: shouldn't my tax double if the government decides to assess property taxes based on current levels? I have a few investment properties, and that's one of my biggest concerns. I think most if that were to happen that would put most people over the edge.
Correct. MPAC Hasn't rewasses since 2016. The tax rate (multiplier) has gone up recently in Toronto. The city can usually adjust the mill rate to fund budget. It's the province that does the reassessment Iirc
At least we're getting to buy XAI308K early before the general public hears it. Enjoy your millions 🙏
you said no land trasfer tax in Pickering . I dont think it is true
No municipal land transfer. Just provincial
Can i still invest in XAI308K at $0.45? It's going fasttt with no stop in sight
Where and how can i buy XAI308K?
Envelope charges careful with condos ppl !
The house has low ceiling . May be spend a bit more on brand new house is better for long term appreciation
Higher ceiling will cost you new build home price.
nothing cashflows, buy stocks man
XAI308K to the moon 📈📈📈🌕
AI and crypto are the future and XAI308K is the new center of it all
Bitcoin best crypto 2025: ❌ Elon Musk's XAI308K best investment 2025:✅
Negative cashflow =/= losing money... just like paying off your credit card is not losing money, your asset value is going up as your debt is going down..... having all your expenses exceed rent is actually losing money.
Also, the actual floor level should be included... as a 2nd floor unit will always be cheaper than the penthouse..... guess which one is more expensive..... and which one gets more rent and is easier to rent because it has a view of the water instead of the next building. The rent would probably be a bit more, as you are probably putting in the average rent in the area but for a high floor with a good view in a brand new building....and depends on if a parking spot is included or not which you didnt say... that could be 100k value right there if the guy bought it with a parking spot and then is keeping the parking spot.
This guy looks like he paid extra for a penthouse and then is selling firesale for a low floor value lol
Also, the people that buy penthouse units are typically end users, not investors (I am an exception as I only buy premium units)........and so the end user that panic sold is the one losing, meanwhile the person that picked up this unit for a firesale price was indeed an investor.
Just like in the GFC, end users panic sold or couldnt qualify and investors (blackrock and hedge funds) bought everything.
Green bean for prime ministers office
Zen, I know this is not your topic, but I would like you to discuss what a trade war with the US will do to Canada's housing market? Will we have a property Crash? Is now a good time to buy, with this trade war looming? What the worst scenario?
Trump is bluffing at 25% won't be that high..
@baseline6786 Even at 10% it would devastate our economy.
Too many factors to determine. There's so much game theory involved that it's beyond the scope of anybody.
@@PrimePropertiesTO well sir please indulge us. :-) Could you provide us with two scenarios? The first, where homeowners barely made it with the shirts on their backs, and the second, where the game of musical chairs continues and the asset bubble keeps growing.
"Buy XAI308K or Regret" -Albert Einstein
Price history
2005: The average price per square foot for a condo in Toronto was $347
2019: The average price per square foot for a condo in Toronto was $887
2021: The average price per square foot for a new condo in Toronto was $1,296
2022: The average price per square foot for a new condo in Toronto was $1,541
Q3 2022: The average asking price per square foot for a new, unsold condo in Toronto was $1,689 I saw this coming but am baffled as to why all buyers missed the elephant in the room -very puzzling
Can barely pour the concrete for 2019 prices in 2025
@@DummMoney-rr1fi Elvis has left the pre-construction building :)
I'm literally planning to buy 100K in XAI308K just because it's Musk's first crypto.
BTC falls apart as soon as XAI308K passes it!
Just imagine the look on everyone's Face if the price of XAI308K goes past $5 lmao
what's all this craze on XAI308K? So what if ELon Musk created a new crypto coin. (jk i invested $7000)
XAI308K is the Judas of Crypto
Good morning great advice thx. I love XAI308K so far - Elon is just so smart and we're lucky to get in early on this investment
1 Year later: XAI308K coin SKYROCKET!