News   May 10, 2024
45 Storeys Proposed to Replace 10 Storeys in Islington Village
 1.3K     1 
News   May 10, 2024
Crane Comes Down at Menkes' Festival Condos as Phase 2 Breaks Ground
 1.8K     0 
News   May 10, 2024
LCH Developments Launching Cliffside Condos Above the Scarborough Bluffs
 1.1K     0 

1 Bloor East, DEAD AND BURIED (Bazis, -2s, Varacalli)

Status
Not open for further replies.
Reference is always made to the large number of immigrants who settle in the G.T.A. However, they tend to move in with family already here, in apartments, or share homes with others. They do not all come here, and immediately buy real estate.
 
Alvar said:
Reference is always made to the large number of immigrants who settle in the G.T.A. However, they tend to move in with family already here, in apartments, or share homes with others. They do not all come here, and immediately buy real estate.
Click to expand...

I think Alvar made a good point. It makes a lot of sense to say influx immigrants drove the rent up, but i am hardpressed to believe they have immediate influence on the price of the new homes.
 
Immigrants don't need to immediately drive up housing costs because immigration is continually happening. Even if it takes immigrants 5 years on average to buy there were plenty of immigrants 5 years ago which would be affecting prices now.
 
I think the currently low interest rates are one of the bigger driving forces in our condo market. In my downtown rental building, most of the long timers who moved in the last few years, did so to buy a condo. The rent on a 2 bedroom apt. in our building is $1350. For about the same amount of money you can finance a $200,000 condo.

androiduk
 
5SEPT2008 photo update

Well, a parking lot would be nice here--parking for cyclists only?

DSC01322.jpg
 
Looking at the picture of Yonge & Bloor provided by urban dreamer I can't believe how much history I have in the short block between Bloor & Hayden. They are currently tearing down the Naval Club on Hayden St., next will be the old TD bank at 709 Yonge where I got my first car loan (for a '62 Studebaker Golden Hawk). Just up the street at 721 Yonge St. I used to own an Internet Cafe called Netropolis and that's where I met my wife. Makes you realize how much more there is to a city than bricks and mortar.

androiduk
 
Looka' Casa thar!
 
androiduk said:
I think the currently low interest rates are one of the bigger driving forces in our condo market. In my downtown rental building, most of the long timers who moved in the last few years, did so to buy a condo. The rent on a 2 bedroom apt. in our building is $1350. For about the same amount of money you can finance a $200,000 condo.

androiduk
Click to expand...


Based on the $1350 figure, if you used it for mortgage payments ONLY - i.e. does not include maintenance fees and property taxes.

Assuming a purchaser were to put 20% down payment with the $200K mortgage, then the total purchase price is $250K.

For $250K, in d/t Toronto (C1, C2, C8, C9) that will get you ~600 sqft condo (1 bdrm), which is a far cry from the 2bdrm space.

In the outer regions of TO but still in GTA like Etobicoke, North York, Scarborough, you might be able to get ~800 sqft 2 bdrm.
 
Mike in TO said:
Globe and Mail

Builders face financing squeeze
September 5, 2008
Click to expand...


That article is further reassurance that all is well.

Lenders are not financing projects unless they are more than 60% sold. That's healthy.

Prices in the old city are higher than the outskirts because everyone wants to live there. That sounds healthy from a density perspective.

Demand is strong, also healthy.


Hmm, good news is boring and doesn't sell. Let's throw in some boilerplate US credit crunch tidbits to make it sound scary, and be sure to call it the "credit crunch" because that will trigger alarm bells in the minds of laypeople.

"Oh god, sound lending practices and strong demand; the sky is falling~!!!!!1"
 
grey said:
That article is further reassurance that all is well.

Lenders are not financing projects unless they are more than 60% sold. That's healthy.
Click to expand...

Actually there are a number of projects in the city that are having trouble obtaining financing despite strong sales. In the last several months that whole 60%-70% sales to trigger financing is no longer the model that is being followed. There are a number of developers on both the high-rise and the low-rise side of the market that are experiencing difficulties obtaining financing from traditional sources. The local market is very different then the U.S., but lenders that have been exposed to sub-prime difficulties have altered lending practices. Also it's not a simple formula - credit just isn't available despite how strong sales have been in some projects as a number of lending sources are reducing their overall exposure to residential markets - this is creating some turbulance in the development industry.
 
Status
Not open for further replies.

Back
Top