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Baby, we got a bubble!?

redfirm said:
http://baystreet.money.ca.msn.com/quotedata/partners/msn/ca/the_economy.aspx
Some numbers:

"The debt-service ratio, the interest households must pay on their debt each month as a share of personal disposable income, climbed to a two-year high of 7.6% in [the first quarter of] 2011, despite still record low interest rates. Over the next year and a half, the expectation is that a future rise in interest rates will lift this ratio to the highest level in more than a decade."

As others have also suggested -- and evidence this week highlighted -- the TD economists note that consumers are tapped out and won't be the main driver of the rebound after "spending like gangbusters" over the past five to 10 years.
Click to expand...



worry not 'doomer and gloomer' for debt-service ratios, price-income / price-rent ratios, historical R/E appreciation levels, negative cashflow, over 70+% population are homeowners, etc mean nothing.

Toronto is a world-class city you see, and foreign investors are more than willing to spend $700+psf because we're cheap compared to other cities, even though we have more developable land and lower densities.
 
Million dollar penthouse views mean more booty.

http://www.nypost.com/p/entertainment/welcome_ladies_5l6R0KHXlQYCcwkanSM2UJ

“Women see windows — and skirts come off,” he says of his large one-bedroom pad, which also features a state-of-the-art kitchen with stainless-steel appliances.

John frequently lets his friends borrow his 5,000-square-foot Upper East Side apartment so they can bring home the ladies while he’s away on business. After letting a London hedge-funder borrow his flat for a few days, the financier reported that his friend was able to score every night with three women (though not at the same time). “He told me: ‘They were excited when they got to the door — and when they saw the view, it was a done deal.’ ”
 
Eug said:
Million dollar penthouse views mean more booty.

http://www.nypost.com/p/entertainment/welcome_ladies_5l6R0KHXlQYCcwkanSM2UJ

“Women see windows — and skirts come off,†he says of his large one-bedroom pad, which also features a state-of-the-art kitchen with stainless-steel appliances.

John frequently lets his friends borrow his 5,000-square-foot Upper East Side apartment so they can bring home the ladies while he’s away on business. After letting a London hedge-funder borrow his flat for a few days, the financier reported that his friend was able to score every night with three women (though not at the same time). “He told me: ‘They were excited when they got to the door — and when they saw the view, it was a done deal.’ â€
Click to expand...

Don't discount the talents (or tools) required to beguile a beautiful woman back to the apartment to begin with. The apartment is just icing on the cake. I'm sure the London hedge-funder can afford his own penthouse.
 
what does a 5,000-square-foot Upper East Side apartment go for?

$5 - 30 million it seems ... depending on floor, location and building?

According to this website:
http://www.trulia.com/real_estate/Upper_East_Side-New_York/5260/market-trends/

Average price per square foot for homes in Upper East Side was $1,444 in the most recent quarter (2011 Q1 from what I gather), which is 10.31% higher than the average price per square foot for homes in New York.
 
haha.. I rember my younger days when the Soho was first built and luxury condos where few and far between... most of the time, it's a closer. lol.
 
People like successful people.

As the article suggested; you can have a $200K car, but a 5 million dollar condo says or should I say screams: "I have money". Whether accurate or not, it shows that these women who are described in the article are willing to sleep with these "rich men".

I guess one can't fault them because perhaps if they are lucky, the rich guy will be in a position to allow them to live in the apt with that beautiful view for a longer period? Maybe even marry them?
 
interested said:
People like successful people.

As the article suggested; you can have a $200K car, but a 5 million dollar condo says or should I say screams: "I have money". Whether accurate or not, it shows that these women who are described in the article are willing to sleep with these "rich men".
Click to expand...

Most women like sex. But they're worried about how they perceive themselves and how others perceive them. So they need good "reasons" to have sex with a man they're attracted to. Society seems to excuse women for getting carried away if the guy seems worthy (not that women should have any need for excuses).
 
What are the requirements for a mortgage on such a place? For a $7.5 million place I would guess something like a 35% - 50% downpayment, to get that ultra jumbo mortgage with private investors (not a bank).

BTW, Ikea touched on this. They had a commercial where a guy brings a gal home and flips on the lamp by the door. It is a nice modern Ikea lamp sitting on a chic modern Ikea table. The gal ends up sleeping with him, only to wake up to a sunlight filled condo that is total cheap slob disaster... except for that lamp and table.

To relate it to the larger discussion, I do think that condo buyer tastes have changed somewhat, towards more luxury styling. This has served to inflate pricing, which I would argue doesn't necessarily reflect true per square foot pricing even downtown. This is reaffirmed by the fact that many older but nice buildings with established reserve funds and in nice spots are often a LOT cheaper per square foot, even if you were to do a significant reno with much better finishes and fixtures that most entry level luxury buildings would provide.

A lot of the new build price inflation is simply taking advantage of higher end tastes, not inherent land values.
 
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Kenny said:
Most women like sex. But they're worried about how they perceive themselves and how others perceive them. So they need good "reasons" to have sex with a man they're attracted to. Society seems to excuse women for getting carried away if the guy seems worthy (not that women should have any need for excuses).
Click to expand...

Guys! It's about time you got away from babes and boobs. Not at all of any interest to this senior citizen.

Instead, get back to the basics -- bubble: if and when it is going to happen.

Purchase of a penthouse by Saudi family is a game changer. Once this news goes 'back', then, this one investment is going to change to a trickle and then to a flood. Vancouver is the favourite place for oveseas investors from China. Soon, Toronto could be the favourite place for investors from Mid-East. Individuals who have petro-dollars to re-cycle do not particularly care of per sq.ft price or even the rational analysis of financial data. Money has to be invested. R/E in Toronto is a lot cheaper than Vancouver and other places in the world. That's all that matters.

The real beneficiaries, in my humble opinion, will be the ones who bought units in Pace condos. They will see their investments increase in value sharply
 
Curious Ka1
What is so special about Pace condos?
And if you believe they were good value, did you take the plunge and invest?
If you did, the next question is academic but if you did not, apart from not wishing to invest yourself at this time, would
you actually be recommending INVESTING in a condo now at Pace. I am not talking about personal use.
 
So I've gone around to about 20+ sale centres in the downtown core. The pricing is pretty eye-opening. 600sqft 1 bedrooms going for $400K in some fo these projects. 540 sqft units going for $350K.

Prices are not sustainable and a lot of people are going to get screwed big time. I'll be waiting with my checkbook.
 
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