Undead
Senior Member
^I don't know whether to laugh or cry lol
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- Thread starter simuls
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Cryptopreneur
Active Member
Meh, saying prices will skyrocket until 2023 is really optimistic.
The only reason for the bidding wars is a lack of supply and make up for the beginning of last year.
Low interest rates doesn't eliminate the fact that you need a downpayment to buy.
And just because someone is paying $1.5m for a detached home in Queensville, doesn't mean the value is $1.5m.
The only reason for the bidding wars is a lack of supply and make up for the beginning of last year.
Low interest rates doesn't eliminate the fact that you need a downpayment to buy.
And just because someone is paying $1.5m for a detached home in Queensville, doesn't mean the value is $1.5m.
slickpete83
Active Member
after you finish laughing & crying lol.... , pray for higher interest rates and pray for people to elect governments that will make it easier and cheaper to build more supply and get rid of all the red tape , also don't forget to pray for wage inflation as well haha..
Undead
Senior Member
And we're about to bring a whole lot more demand without increasing supply. I don't agree with this price growth, but given ultra low interest rates and intensified population growth, what do you think is gonna happen?
Oh, I agree entirely. The market lost its mind years ago.
But if shitty government policy and private interests taking advantage of it means I can cash out my barebones cottage for $1 million, IDGAF.
I wish, but no government's gonna do this. Otherwise, they'd go broke trying to make the payments on all their debt (and half the population for the same reason).
slickpete83
Active Member
Federal Government can't go broke , all debt is in Canadian dollars , Canada doesn't have to borrow $CAD from anyone think about it
read the bank of Canada mission statement on their website and read about Modern Monetary Theory
but yes Provincal & Municipal governments can go broke , they don't issue Ontario or Toronto dollars , they just use $CAD
Undead
Senior Member
Let's not get into MMT which just seems like a way for its proponents to justify infinite printing and spending (and let's not pretend these two are sustainable).
In any case, even if the Feds don't go broke, they're not going to raise rates because a huge chunk of the population, munis, provinces and corporations will go bankrupt.
In any case, even if the Feds don't go broke, they're not going to raise rates because a huge chunk of the population, munis, provinces and corporations will go bankrupt.
afransen
Senior Member
Some interesting ideas. It would certainly make a lot of studio apartments more livable. I wonder if people would be willing to splash out an extra $100k (or 200-250/sqft) to pay for the more expensive finishes/features or just get an extra 100 sqft. It would work well for a single person. A couple might struggle to live in that situation, I think.
afransen
Senior Member
The way the government of Canada goes broke is when people stop being willing to take Canadian dollars in exchange for things that have tangible value. It is a softer form of 'broke'ness but it does happen from time to time.
slickpete83
Active Member
u gotta remember all taxes /income tax have to be paid in $CAD ? which is what creates demand for our currency
slickpete83
Active Member
well I'll give you an example of my friend who him and his wife bought preconstruction condo 1 bedroom 585 sqft for $417k , now his wife just had a baby and they can't afford a mortgage on a bigger place (2 bedroom) because covid cut his income by a lot , he might end up using dividers in his living room , currently moved into condo in occupancy stage
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lenaitch
Senior Member
One problem with listing a seasonal property is accessibility for viewing, but we are (hopefully) coming to the end of that. If it is halfways marketable, (i.e. not an unrenovated 1920s) and is suitable or has potential for year-round use, maybe research agents that focus on cottages - they may well have a list of interested clients. I've seen that a couple of times here (about 45 N of Barrie) where neighbours announce they're moving and there was never a sign, mls listing, etc.
I don't know specifically about Barrie but the general lack a supply is significant. Barrie seems to historically have price ranges between the south end (incl. Innisfl) and the east end, probably due to commuters.
Our daughter near North Bay has a friend who sold their place for about $130K over a ~$650K listing, which is a huge percentage. Go on the realtor.ca map and see what isn't out there.
Undead
Senior Member
Thinking out loud: one way this bubble plays out is by Toronto becoming an "evergreen" destination for property investment and property-based money laundering like London. The latter can survive a major downturn because their property will always be in demand as a means for global elites to park their money. Toronto might develop the same kind of critical mass one day, but we're not there yet. However, Canada's notoriously opaque banking system and Ontario's similarly opaque property laws have already helped us carve a niche in this "market." If this happens, we can forget about prices ever coming down. Good news for owners, RIP to the future middle class trying to enter the market. Thoughts?
slickpete83
Active Member
here just in case the bubble doesn't burst in Toronto , get ready for no toilets ..... hahahaha...
Live-work under loft bed in 13m2 Paris micro-studio
Undead
Senior Member
^Oh, I fully expect Eastern Bloc style communal apartments with shared kitchens and/or washrooms at some point lol
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dusk
Active Member
I completely don't understand the argument from folks claiming there will be a downturn, specifically in the Toronto market. Let's look at the facts:
- housing is limited by land, in particular detached / semi detached, etc
- housing of all types (high rise, low rise, "missing middle", etc) is limited by poor zoning which drives up the price of land, and in turn the end price of units
- interest rates are at record lows with no line of sight as to when that might change (and i don't just mean 100 basis points)
- toronto remains the largest city in canada with the largest number of headquarters and satellite offices for fortune 500 companies
- canada in general remains a top destination for those fleeing regimes or looking for new opportunities, many of those folks looking to settle in the GTA
We've been talking about a downtown in the market for the past 10 years and folks have been consistently wrong. In fact, the powers that be are doing everything in their power to ensure the engine keeps chugging away.
- housing is limited by land, in particular detached / semi detached, etc
- housing of all types (high rise, low rise, "missing middle", etc) is limited by poor zoning which drives up the price of land, and in turn the end price of units
- interest rates are at record lows with no line of sight as to when that might change (and i don't just mean 100 basis points)
- toronto remains the largest city in canada with the largest number of headquarters and satellite offices for fortune 500 companies
- canada in general remains a top destination for those fleeing regimes or looking for new opportunities, many of those folks looking to settle in the GTA
We've been talking about a downtown in the market for the past 10 years and folks have been consistently wrong. In fact, the powers that be are doing everything in their power to ensure the engine keeps chugging away.
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