cdr108
Senior Member
i wouldn't touch Chaz for even $400 unless i could combine 2 units and have it customized included in the price.
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- Thread starter simuls
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i wouldn't touch Chaz for even $400 unless i could combine 2 units and have it customized included in the price.
KA1
Senior Member
I am emotionally getting ready to buy a unit in "Five" from someone anxious to bail out at a loss.
interested
Senior Member
Amazing that someone would be anxious to bail out at a loss on a building that hasn't even broken ground yet and is more than 3 years away. Please correct me if I am wrong on this assumption.
This would appear to be the same driving forces as the stock market, greed to buy and then fear setting in. If there are alot of people like that individual, the housing market meltdown will be even more disorderly and extreme than rationality could predict.
I still think the investment decision is not whether it is being offered at a loss today or not. The question is what do you believe the real estate market will do over the next 3-4 years and will a loss on paper today in fact turn into a futher real loss or is the price you are going to get have enough downside potential and you wish to actually own or rent the unit longer term.
Remember, anxious to bail is either a life situation change or if it is because of fear, that person at least believes the value will be less when ready than the loss they are now willing to take.
cdr108
Senior Member
economic data points to slowing global economies and rising interest rate trends and tighter money supply (at least in Canada, some European countries and Australia), global gov't austerity measures, and high unemployment for the next 3-5 years.
even BB seems to be hinting at shutting off the $piget gradually.
interested
Senior Member
Sorry what is BB or did you mean GB as in Great Britain.
From your sentiment, I gather you are saying to KA that he should carefully consider before buying over the Five unit even at a discount given the global picture. This would be my sentiment in any event.
interested
Senior Member
I just realized. BB Ben Bernacke. My bad.
KA1
Senior Member
If you were to, once again, read my earlier post, I have stated that I am ".. emotionally getting ready .." and not that I am ready. I am thinking of time frame of a few years down the road.
As Cdr has indicated in his post, economic forecast for the next 3 to 5 years is of high unemployment, sluggish economic growth. I am sure there are a few individuals who have purchased/invested in "Five" with a small deposit and who might not have financial staying power or strong will to stay put and would be eager to dispose of their unit at below cost. A few years ago, who would have thought, at this point in time, individuals falling over each other to get rid of their investments in MLS, Burano and the likes.
As regards being careful, it all depends as to on which side of the fence you are. If due to economic conditions, individuals and business owners have to declare bankruptcy, then, that means 'bonanza' for Trustees in Bankruptcy. And if there is a spread of virus, then, it means increased sales of hand sanitizors for the drug stores.
An individual who wishes to get rid of a unit in "Five" could mean an opportunity for someone with better financial means.
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interested
Senior Member
I realize you were getting emotionally ready to consider this. I just think it will be many years before things improve. The real issue is that no one knows what will happen so all we are talking about is 2 sides of a bet. The individual who believes or has to sell and sells today because he believes it will be worth less in 3 years and the individual on the opposite side of the coin who thinks that at the price it is offered it represents good value and things will be better. I don't know where the market will be in 3 to 5 years which is why I suggested one must be ready to buy and hold/rent it out since I believe it really is a gamble to predict prices in 3-5 years. Right now I think they will be lower. In 3 years we may look at it as a great buying opportunity. I guess I am just conservative by nature and hope for the best but plan for the worst.
True, if there is a real estate blood bath there will be opportunities for those with alot of cash and who have stable incomes. that said,my belief is that there will be alot of product in many new developments in the next 2 years. Which development appeals will be a matter of personal preference. there are always opportunities. One just often doesn't hear of them.
cdr108
Senior Member
that doesn't surprise me one bit b/c i suspect that 40-50% of the units were sold to investors, of which probably half of those were 'specuvestors' with the sole intention of flipping the units ... those individuals will leave the market at the sound of a pin dropping when conditions are not favourable, which has currently happened :
CMHC’s new mortgage regulations for homeowners and property investors:
1) All changes are effective April 19, 2010 with exception to change # 7 & 8
2) Qualifying rate – For loans with fixed term of less than 5 years and for all Variable rate mortgages, regardless of the term, the qualifying interest rate is the greater of: the benchmark rate and the contract interest rate. (The benchmark rate will be the average of the 5 major banks posted 5 year rate. This will be posted each Monday on a website to be announced later.
3) Refinance loan to value maximum will be 90%
4) Maximum loan to value for rental (non owner occupied) will be 80% LTV 1 to 4 units.
5) Rental income qualification. 50% of the gross rental income from the subject property may be included into the borrower’s gross annual income for the purpose of calculating the borrower’s Total Debt Service Ratio.
6) Maximum numbers of Units under CMHC Second Home. Second home product only available for 1 unit owner occupied properties.
CN Tower
Banned
KA1
Senior Member
http://www.yourhome.ca/homes/reales...na3-things-will-be-great-when-you-re-downtown
Link to an article about DNA 3 in Saturday's The Star. Asking prices appear to be reasonsalble reflecting the current market conditions.
Link to an article about DNA 3 in Saturday's The Star. Asking prices appear to be reasonsalble reflecting the current market conditions.
JayBee
Senior Member
Is MLS really having issues moving units? Had an opportunity to invest there but decided against it. Perhaps I made a good move.
KA1
Senior Member
Units in Chaz are smaller and expensive than "Five". Interior layouts are also better in "Five".
interested
Senior Member
Actually, I think prices are exactly the same as before. This works out to $450 to over $500/foot (based on 340 sq. ft at$180K and over 400K for 900 sq. ft).
Given the location is quite far West, much further than even Liberty Village which is being sold at $460 to $500/sq. ft range as well (see King West Life condos) and Bliss etc, I don't know that this is suprising. $550$650 seems to be the central core: $500-600 most of King West (nearer Bathhurst/Spadina) and $450-550/sq. ft further West. these buildings if I am not mistaken are just about 1-2 km EAst from Palace Peir but I may be wrong on this which is really quite far West and out of the "core" unless I am thinking of the wrong development.
KA1
Senior Member
Please do me a favour.
Next time, when you quote prices in the central core, see if you can increase the range to $ 550 - $ 700.
At $ 700 sq. ft, I will breakeven on my investment in a unit in AURA.