Toronto Condo flipper losing $385,950
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- Опубликовано: 27 сен 2024
- Toronto Condo Flippers are currently in a pickle getting their units sold on the assignment market
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Email me: jordon@precondo.ca
Not Intended to solicit buyers or sellers. I am not a Realtor. I am a shareholder of iRise Realty and Precondo which employs Realtors
Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.
Considering the present situation, diversifying by shifting investments from real estate to financial markets or gold is recommended, despite potential future home price drops. Given prevailing mortgage rates and economic uncertainty, this move is prudent, particularly due to stricter mortgage regulations. Seeking advice from a knowledgeable independent financial advisor is advisable for those seeking guidance.
You're correct! With the help of an investment coach, I was able to diversify my 450K portfolio across markets and produce slightly more than $830K in net profit from high dividend yield equities, ETFs, and bonds.
Would you mind providing details on the advisor who helped you?
''Aileen Gertrude Tippy’’ is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
This reference seems valid.. Just looked up her full name on my browser and found her webpage without sweat, over 15 years of experience is certainly striking! very much appreciate this.
Don't feel sorry for those so-called investors. They are the reason that brought up housing prices in the first place to the point nobody can afford them.
Investor is just another word for Speculator.
Let the " Passing a hot potato " game continue......
Yes they are the reason
They can all go broke and cry
Investors/ corporations screwing hard working people and not paying fair wages
It's not investors it's parasites
No they're not...The reason is Boc & federal government..if boc had done the raising of the rates in 2015 (I remember 2 bedroom bungalows selling for 1 5 million at parkview hills.. st. Clair & O'connor) so boc raising rates in 2022..too late now...
it's an investment. Sometimes investment lost money. Why feel sad? i lost money on my investment in stocks all the time.
More immediately than a collapse in the real estate or stock markets, inflation directly impacts people's standard of life. It is hardly surprising that the present market attitude is so negative. If we are to live in this economy, we are in dire need of assistance. ETF and stock markets are still unpredictably volatile, just like the housing market. My $350k" portfolio has been reduced to rubble.
A lot of people are still making returns on investment this period. You just have to be very grounded or solicit the help of a professional.
In my opinion, it was much easier investing back in the 80s but it’s a lot trickier now, those making consistent profit in these times are professionals reason I’ve been using an advisor for the past 5 years to consistently build my portfolio in preparations for retirement.
@@LucasBenjamin-hv7sk My partner’s been considering going the same route, could you share more info please on the advisor that guides you
Google Annette Marie Holt and do your own research. She has portfolio management down to a science
@@LucasBenjamin-hv7sk Thank you for this tip. It was easy to find your coach. Did my due diligence on her before scheduling a phone call with her. She seems proficient considering her resume.
1 million for such small box condo what is wrong with people
$1 Million for a box, smack in the middle of a high concentration of homeless drug addicts who have free roam of the area.. awesome deal lol
@@edwardlenovo3240 Maybe it is. It is almost like "buy one and get one free". Buy a condo and get dugs for free! lol
@@edwardlenovo3240 moss park one of the most disgusting streets in Toronto lol
AND a monthly strata fee on top of it...forever!
@@JJTMStudioyup the maint fees are crazy high downtown
As a first time (maybe) buyer, I approve these losses.
good time to be on that side of the table, good luck 👍
You’re forever renting so doesn’t matter.
@@acz88You sound salty 😢
@@acz88 feels so good right now if you don't have to pay 40-60k interest per year and don't need to worry about declining house prices. If the situation doesn't change, you're right, I will be renting forever from people like you who will subsidize my housing.
@@acz88
Not forever.
Just till prices crater.
Better think about an insulated tent near a food bank.
From where to buy an insulated tent?
Or a parking spot for 70K.
Fastest growing city.....but the people we are bringing in have no money.
Poor people = cheap labor!
If people have one million why they should come leaving home country
Fastest running-into-the-ground city.
Yep I spent last winter touring through Asia, there are plenty of people over there will real wealth... but what idiot would trade a godlike lifestyle in their home country among their business/friends/family/etc, in exchange for a 500sqft 1bed in canada?? The thought that we are bringing in foreigners of any real economic value is absolute comedy.
They are quite exceptional Uber eats bicycle riders though 😂
There are 2 different condo markets right now. The one that is hurting is the one focused on investor because all of the units that are losing money and not attracting attention are those generic and small condos that were designed purely for rentals, not for an owner to actual live in. I'm in the market to buy right now and I don't even bother looking at those kinds of listings because I want a home, not just an investment opportunity.
Units that are actually good, meaning good layout, nice space, good management, nice view, those are still selling and not losing money.
There's only one market in Canada, the BIGGEST bubble market.
Same, I was shopping during covid and whenever I see 3 bedroom being squeezed into 800-900 sq ft it’s an immediate no.
I bought a Tridel 1540sq ft in 1993 ($188,900.00). A person 2 floors above listed this year at $888,000.00.
Just to live downtown people are paying way too much for shitty layout shoe boxes.
I live 10 minutes from the Guildwood GO train/Via Rail station (26 minutes to Union Station).
My foyer is so large it could fit a bed! Master bedroom 23ft long. Kitchen with breakfast nook. I have lots of space and I love my condo. Been here 31 years now.
I don’t know how people could live in these tiny shoe boxes? Nobody wants them now! Pure garbage! They never made sense!
I have 3 kids and a wife and rent a townhome for 3600/month . It does not leave me any money to save for a downpayment
Then change your lifestyle and job.
@@acz88yeah, like that. He applies to become a CEO or better invests in crypto 😂😂😂
@@acz88dump the kids? There aren't many changes you can do with 3 kids. Daycares and rent could easily eat up 7000 from your pay.
Imagine how much you have to make and what lifestyle you could have to alter.😂
@acz88 hahahahaha. You don't have much life experience do you. One day you will get it.
Stop with the indulgences!
I’m not even involved with this “fuckery” and this video hurts. I looked at one pre con project early 2000’s and did not pursue b/c I couldn’t digest the #’s.
That is why we need the governments (especially the fed gov) to incentivize us to get into the real estate market.
Future slums. And that future looks closer than expected.
But we've been saying this for a decade.
Jordon you forgot to add all the cost associated with closing a pre-con 🤭
2022 I had to pay 66k just in closing cost
Good luck to all the buyers and sellers out here stay strong 💪🏽
Of course he did lol this guys a snake and a salesman first.
Good! Flippers are speculators; that's a risky business be it gold or real estate. This flipper got precisely what they bargained on.
Yeah... those parks are lovely....wonderful neighbours in the area.
lol
Tent dwellers who are hooked on tranq?
@@retrogamer82
Zombiefication
of the neighborhood.
Yeah lovely homeless neighbors. You could even become one in the near future with these prices!
Finally precondo guy being honest telling it like it is no matter his interest
"Being honest" lol dude said Moss Park area is nice xD hes still a snake salesman trying to shill his products
It's almost as if people who had no business getting into real estate investing, didn't know f all about economics (and what happens when governments spend like drunken idiots), and just assumed interest rates would be 2% or less forever....this makes me laugh....
Why would a "2" bedroom condo that is 650 sq ft need 2 full bathrooms??
I'm seeing more and more new SF homes being built/advertised with more bathrooms than bedrooms, and often wonder if they're doing this knowing that sooner or later those big new houses will have to be subdivided into tiny apartments for anyone to be able to afford to rent them. In other words, building for future greedy "investors", not average people.
Trying to justify the prices lol
So 2 people can have separate washrooms?
😂.. sounds reasonable @@victorchen9170
roommate living
I have lived in Toronto for almost 6 years and have purposely not bought a condo or any property. This is one of the reasons why. I already own property in Calgary and after years of the value taking a beating its completely shot up and now I am very much in the green. No regrets.
i wonder what the condo fees are for a million dollar studio.
like who the eff is paying so much for so little.
One bedrooms typically are $700 and up for maintenance fees
Around $700-$1000 per month
@@acz88
Good God that is a lot.
@@retrogamer82 Where the hell? Must be 1 Bloor or Aura, because I'm paying $390, and that's including fiber internet for 4yrs.
1900/psf is cray cray.
Another aspect to predict will be if construction falls so much, how much will be the job losses in the region and these people will definitely have to move out.
Construction sector is a big job provider.
Prices go up when economy does well and goes down when economy is bad (i.e. no jobs).
Another point people will not immigrate here if there are no jobs or cost of living is very high compared to what they make.
The 1k+ sq ft places aren't struggling to sell. It's the 400 sq ft shoeboxes that no one wants for over $3K per month in mortgage. Many OG buyers never intended to actually live in those floorplans or units - ever - and just saw them as an investment opportunity. That market is delusional and I hope things falls back down to 2016 prices, like $300K.
Greed is a bitch.
True and when you make a cocktail with greed, CCPs money laundering through Chinese investors with a pinch of help from liberal marxist policies supporting this money laundering, tada! You get the wonderful Canadian real estate fiasco. It's beyond repair now. Noone wants to buy these assignments. It's super high risk.
you had me when you said $600k for a dog crate condo is a good deal 😂 high on these prices for so long you’re all detached from reality 😂
It's really not bad considering 10yrs ago, they would've been $400k.
Will the mortgage defaults be offloaded by banks onto the taxpayer via CMHC?
And isn't that a total fraud.
DAMN! my cousin bought 2 in 2022 and they will finish building next year. they desperately trying to get out. I predicted they will lose 175k on each but now i'm thinking 200k each.
What software are you using to highlight those condos like that
Canada is a 3 star hotel charging 5 star fees
Best summation of Canada's current value ever spoken.
er, you should give correct attribution to that quote. :)
Good to hear. Buy a condo what do you have? An apartment with maintenance fees, insurance costs, heating, hydro, cable, taxes, etc. etc.
And prices are only going down from here, and we've just seen the beginning of it.
Price has to come down as much as 60% of its current prices unless there is hyper inflation like a situation, like it was in Argentina.
That is what will “save” them
These 600 650 don’t look too crazy compared to what we see here in Vancouver.
There is a newish high-rise building in Vancouver called "the Butterfly" where you pay 1.5M for a one bedroom... the reason given by the realtors who are selling this units are "you buy and live with rich people"
Buy a diamond ring for $10,000. Sell it next year for $3,500. Hooray! I've finally figured out the Canadian real estate market.
Hey I am looking to lose some money on a pre-construction condo. How would it be best to get in touch with you?
😂
😂🤣😂
I've had many clients whose appraisals did not come in on the pre-construction side
At least they have enough money to lose. My sister sold her house in Pickering a year or so ago and bought a brand new one in Port Hope.
Impossible I remember people saying housing never goes down.
Could you imagine if housing didn't start to correct all the people would still be saying housing is a good deal.
Lets just hope Foreign Investors don't have to sell if their local markets are declining and we don't put a stop to 25 years of mortgage fraud.
The thing is all these units dong come with a parking lot.
Don’t worry the city is installing bike lanes on major streets downtown that will fix that 😂
It's a joke, they think that people will be riding bikes when 6 months of the year it's cold as F outside.. plus the roads they are doing for the amount of cars and condos doesn't make any sence to be sustainable in the near future.
Just ride your bike and cancel your disney plus
I pulled out the BoC inflation calculator - $846 in 2017 is $1047 today. So, inflation adjusted, we are below 2017 prices.
can you explain what blanket appraisals are and their significance? you kind of hint at them being a major stopgap to a serious problem but I don't understand what they are.
Well, common sense tells me they are keeping actual appraisals from the public, protecting investors like a blanket so they can sell. Once appraisals go back to being done per individual unit, publicly open, the panic begins. The value will be far less.
@@mentourrightbrain thank you for explaining.
I'm reading the comments and notice how everyone who wants to defend foreign investors always mentions how the number of foreign investors is low compared to domestic investors or buyers. Our housing market is like an auction. And if you've ever been to an auction, you would understand that it only takes 2 people, even in a room with 100, 200, 300 or more people to bid up the price to crazy levels.
Good. Hate what they have done to this city. If there's no demand for that overpriced luxury bullshit, they will start making buildings that actually help the community have a place to live.
Investors have to sell before June 25rh to avoid 66% capital gains tax. Investors are leaving Canada for good.
I'm sure they'll talk to a tax advisor and realize you're completely wrong...
We don’t have a supply is we have an affordability issue
moss park is lovely? what's lovely about it, the needles or the bohemians fighting their imaginary tormentors?
Stay away from Moss Park and Allan Gardens. It is scary walking near there. Many shelters and homeless services in that area. Which is good for the ppl who need them, but most of those people are also into drugs and crimes.
@@inderjeetkaur720 if they can fix up the place and move the shelters further out north or east and clean up, landscape the park it could be a lovely place as there are some very nice places near there
@@MrMichaelBradfield agreed. Unfortunately doubt that will happen..
that's the joke
Depends if you are a buyer, seller, occupant, investor.
1:20 never try to catch a falling knife. Prices have a long way down to go still!
Two bedrooms 11x8 and 9 x6? Those are the size of closets...LOL!
That condo isn't worth $200K in a proper market with interest rates at 12%.
People need to stop thinking/saying that 600K for a condo with less than 1000 sq ft is a good deal. That is insane! A 700 sq ft condo should be going for 150K to 200K MAX! 10-15 years ago, you could buy a house in Toronto for 300K. Have incomes quadrupled in 15 years? Has quality quadrupled in 15 years? If anything, people are making less now than 15 years ago.
The only reason that house prices went to a million bucks was because interest rates went from 9, 10% down to nearly 0. This made carrying a 1 million dollar mortgage easier to carry. But now that interests rates are heading back up, that will be impossible to carry. And I think eventually the interest rate will be hitting 15 to 20% in order to save the dollar - but we are probably still a few years away from that. Do the math - how much do you have to pay per month for a 500K mortgage if you have a 10% interest. Now do 15%. Now 20%. Very quickly people will realize that any condo over 100K is expensive, as is any house over 250K.
Anyone getting into the market now while prices are dropping, thinking they are getting a bargain is insane. Do the math on your mortgage if interest rates increase to 10-15% and then see what kind of a bargain you got. Eventually - those getting out now at the relatively small loss of 200 to 300K will be seen as geniuses. Just look at China. People making less than 1000 a month are owing millions on property that's gone bust. And that's in one of the most populated places on earth. Here in Canada, it's one of the most sparsely populated places. All the government has to do is ok new land for construction and prices will drop to less than a quarter of what they are now. It's an artificial market.
@Precondo, please take a look at Toronto C8 C1 resale and explain YTD numbers.
How many here, at your current earnings, would be able to buy a property if pricing reverted to levels 5 years ago?
Was the flipper your buddy Joe Blows?
nah it was john doe
I'm not sure why the positive side is current massive population growth- Ontario is expecting 100,000 less student visas issued in fall 2024 and TFW getting reduced to 5% of the general population will result in a net migration of approx 300,000 in 2025, a massive reduction as I'm sure you know.
Somebody tell me the difference between these condos and the projects.
Investors looking to sell and those who flip have only made it more expensive to purchase a house or Condo, for those who need a home.
Even with the cash to pay in full, $700k for a 600 sqft condo seems crazy. Compared to renting in a rent controlled building, my monthly costs would more than double, for something that is not really that much of a step up.
It’s like selling at the money puts at the time
I'd argue that Allan Park and Moss Park are more beautiful than High Park
Allan gardens does have a nice greenhouse that high park doesn't have
No squatters, beggars and junkies in High Park. You get three in Allan Gardens and Moss Park.
Lot of burger flippers and security guards coming in recently. Where the money?
They bringing in that culture with a side of 🍛!
That's right, hindsight will always be 20/20.
Great video. These are the small tides till the actual tsunami hits. Everyone says it is not going to be bad as a financial crisis. It is going to be worse. There are many catalysts waiting to burst. It is going fall like a house of cards.
Realized long ago that builders charge insane amounts and people will pay, but when you resell nobody's willing to pay exorbitant prices
It's hard to feel sorry for these flippers in a housing shortage.
All these condos should be below $800 / sq ft. The more pain the more consolidation are required. The spread between income vs. asset value gap is still to wide.
Do I miss living in Toronto while currently residing on Vancouver Island? Ummmmm….no.
I booked a pre con in Hamilton 802 sq ft for 868050 😢😢. It will be ready in 2028. Any hope?
Hey, I'm brand new to your channel. Rented all my life but for the first time, I'm actually considering buying a place for myself. My current place's lease is up in Oct, so I'm looking to see my options for purchasing a place (or continue renting if the prices aren't good).
I don't understand your video. With all the talk about rent prices skyrocketing, which I personally feel the pain of and have experienced, how can there be so many losses in the buying/selling market?
lol TAKE your MONEY and get out of CANADA. Too much Taxes, shit hole😮
Interestingly in the USA in 2009 when the great recession was really picking up steam, when house resale prices really started collapsing, rents continued to go UP! That was because so many people were being foreclosed on, former owners juiced the rental market.
Certainly many other factors come into play, but don't be surprised to see rents continuing to go up up up should (when) the buy/sell market craters. The impact on rents takes a few years to clear out, but eventually they came down as well to reflect the lower cost of ownership.
leave this place is a sh!thole
Because they paid so much for their grossly inflated-value properties, thinking interest-rates would forever remain low (and values would only ever increase). Now that rates have increased their costs have gone up so much that they can't even find people willing/able to pay the extortion-level rents they'd need to break even.
Why is your completions graph the only one that is not cited? As a planner in Ontario I have a hard time believing that projection with out a credible source, as I am seeing no difference in approvals for buildings with projected completion dates in 2027+. While I definitely expect a drop in starts in the near future you're projecting a 90% ish drop?
I have absolutely no clue what’s foolishness are going through peoples minds to pay that much for a condo. An acreage or estate home, sure but not for a 700sq ft condo. Like seriously??
Between 2018 to 2024 the dollar has lost about 50% of its purchasing power due to counterfeiting from centralized manipulators. This would mean that $945 /sqft in 2018 is worth MORE than $1,029 / sqft in 2024.
We can not call these currency units money - please distinguish this in future videos 🙏
Thanks for the video, I appreciate the insights
Toronto is chockablock full of “investor” units, those 1 bdrm + den condos that no one would buy to live in themselves, and where market rents cannot cover the mortgages at today’s rates.
So real estate prices don’t go straight up forever? Investors who didn’t realize this are going to go through some things. I have a hard time feeling sorry for them. Being naive has consequences.
Called business.. some investments pay well and some you lose on . Just wait till the money pours out as what is happening as i write this according to many business leaders on media..
How does it make any sense that most of these 2/3 bedrooms don't have parking? Sure you live in the city, but not everyone wants to take transit (especially a family with 2 people working), and if you ever want to travel for vacation... you probably need a car.
I don't feel sorry for flippers losing, you take your chances just like the stock mkt. But why are these units so small architects, builders, city are all to blame I would pay upwards of 1/2 million dollars for a condo but not for a 600 sq ft unit. As the old saying goes "they're so small you have to go outside to change your mind".
Even worse news for the speculators is if they barrowed money for the down payments (loc, etc) and now they lost all that money;
but they're still stuck with the debt paying on a loc or maybe even private money. ouch.
I’m a home owner but condo will probably go down another 30%. Unfortunately people have short term memory.
WOW paying million dollars for a condo , kind of deserve to loose their money
Fastest growing city in 2023. What’s happening in 2025 and 2026. We might see significant drop in population growth. The Liberals already scaled back TFW, and international students who were being granted PR status. Be very careful people. The market is a lot smarter than we think we are.
Correction to your intro: the Toronto condo market is going to get better before it again gets worse.
Meaning, prices will continue to drop until affordability comes back. Nose-bleed-level prices benefit no one.
Would love to see you do some in Vancouver ❤
Does anyone cares about condo flippers? They are one of the reasons prices for housing ballooned at first place
In my opinion they are worth 150k. Im sure the strata fees are ridiculous too. Paying 600k for a 600 sf shoebox is a life of slavery.
I got answer to the housing problem taxthe speculators to hilt because this is canada u cannot live in tent or ditches by the road
These assignment sales are only a good deal if prices stabilizes and rebound which is not gonna happen.
Maybe my math is off, but is that $1 million master bedroom 9x9ft?💀
The panic is starting. Wait for the reduced appraisals and the mortgage debacle.
The collapse is always ugly.
Condos are the worst.
One panic sale and that becomes the new appraisal for all the units.
Most modern investors just seem like people who took their lide savings and;
A) Didn't research the "affordable properties" they were investing in with due diligence
B) Bought tiny units intended for investment > livability not considering who they'd rent/sell to
And C) Counted on the covid bubble or bought early/prebuild and want their savings back after it popped...
never in my life, have heard someone say "moss park is nice"
Investors need to cut their losses and gead for the hills.
Not everyone is lover or fighter.. most people afraid to die or worse lost your limbs or eyes.
Expensive shoe boxes!
Any contacts in Ottawa?
Right now, the only reason to buy a condo is life style, not investment, deals are always there, but might be rare and hard to find at the moment...
We bought in 2007 from an investor at rates of 6-8%
1100 sqft corner suite great amenities 15 mins to downtown 25 mins to Oakville , subway access; paid off in 15 yrs , 100% equity now , I would not buy today but would rent instead, but what the f’ do I know 😮I’m Mortgage free small family of four& travel the world
"Toronto Condo flipper losing $385,950",
Good!
They don’t need to bring because government of this country raise them free on tax Payer money
Strata fee is crazy
Here’s the thing. If investors/flipping start becoming a major loss…this implies in 3-5 years, we will see a massive dip in new homes that are available. The reason why today so much new supply is hitting the market is because 3-5 years ago, investors were willing to tie their cash up by investing in a condo.
That’s why if you invest, the goal is generally to hold long term.
You are losing money holding.
And going forward perhaps even more so.
Govt interference in the real estate market to manipulate supply and keep it grossly over priced is about to utterly destroy the market -- as always is the case when govt gets involved to pick winners and losers.
Attempts are on to offload mortgage defaults of banks on taxpayers, and this will not end well.
Long live moral hazard.
@@mtrest4 I’m a web developer, have a few properties. One of my great long term web customers is a man who owns a restaurant. Back in 2007, he owned 2 houses. Rates went up to 7% and he sold both homes to a single investor for $1.5mil. Flashforward 15 years, and these 2 homes located just outside Vancouver are worth $3.5-$4mil. The best thing to do is to not overreact and hold long.
Zero petty about corrupt flippers trying to cash up