downtowner1
New Member
I have been lurking on this thread for months now, and thought I would jump in as a typical condo buyer (aka not all that knowledgeable but trying to learn). I know someone up thread was interested in what the general population are thinking.
I bought my condo just over 4 years ago, right around the time of crazy multi offers before the land transfer tax kicked in and right before the world economic meltdown. I bought an older condo, one plus den that needed updating, right in the St. Lawrence market area, and set about investing in a new kitchen and some other renovations. This is the first property I had ever bought and I did it as a late 20 something singleton. I didn't really do that much research into the economics of it before I took the plunge, as my parents and other friends all said buying is best, of course!
After a few years of nice low monthly payments (thanks variable rate mortgage, 40 year amortization and low maintenance fees!), about a year ago I started actually educating myself on the housing market and fundamentals. And I'm scared of what I see. I have read threads like this, sites like the Greater Fool and it all makes sense to me that the current condo/ housing market is unsustainable.
I look around at my friends, single and coupled up, and we have all somewhat struggled to stretch our dollars based on when we all bought places 4 to 6 years ago as young downtown professionals. We bought when a one bed in a good location was 250 to 300, and now those same places are 340 and up. How can the people "behind" us afford our units once interest rates go up (which they surely will)? I don't think they can, and those higher rates plus the huge supply of condos coming will surely cool the market off (or send it into a major downward spiral).
So now I'm wondering what to do about my place. I still love the space and location, but the view is about to be obscured by up to 2 new projects assuming they go ahead (60 Colborne and the 93 King building application that went in). And I'm scared of what is to come in the market generally. I don't see myself as a long-term condo dweller, ultimately I would like to live in a house, and I'm nervous that a market fall will coincide right with when I will be ready to make the move which will likely be within the next 3 to 4 years.
My options are sell and rent at what also seems to be obscene rates of about 1600 pm for an equivalent space to mine in my area, more than my total costs have been to own my place over the last few years, or stay put and risk the money I have in principal if the market does go south as well as put up with two constructions projects right across the road from me. There's no way I would sell and buy anything right now, as then I would be in an even worse position if the market does sink, plus I can't afford a house in what to me is a decent location.
I have talked to many of my friends about the property market (all young 30 somethings like me) and while most of them feel the market is a little overheated, I don't think any of them really have any concerns about a US style meltdown. They definitely all still have the "property always goes up in value" mentality, likely because that is what has always happened while we have actually been paying attention. I'm the only one who is truly concerned about what is to come.
I feel I have just rambled, but thought I would share the views of someone who is aware of the rumblings of a bubble but still not sure what to do. I'm sure there are others out there like me, but I do also think a lot of people still have little to no awareness of the bubble talk and still think it's different here.
I bought my condo just over 4 years ago, right around the time of crazy multi offers before the land transfer tax kicked in and right before the world economic meltdown. I bought an older condo, one plus den that needed updating, right in the St. Lawrence market area, and set about investing in a new kitchen and some other renovations. This is the first property I had ever bought and I did it as a late 20 something singleton. I didn't really do that much research into the economics of it before I took the plunge, as my parents and other friends all said buying is best, of course!
After a few years of nice low monthly payments (thanks variable rate mortgage, 40 year amortization and low maintenance fees!), about a year ago I started actually educating myself on the housing market and fundamentals. And I'm scared of what I see. I have read threads like this, sites like the Greater Fool and it all makes sense to me that the current condo/ housing market is unsustainable.
I look around at my friends, single and coupled up, and we have all somewhat struggled to stretch our dollars based on when we all bought places 4 to 6 years ago as young downtown professionals. We bought when a one bed in a good location was 250 to 300, and now those same places are 340 and up. How can the people "behind" us afford our units once interest rates go up (which they surely will)? I don't think they can, and those higher rates plus the huge supply of condos coming will surely cool the market off (or send it into a major downward spiral).
So now I'm wondering what to do about my place. I still love the space and location, but the view is about to be obscured by up to 2 new projects assuming they go ahead (60 Colborne and the 93 King building application that went in). And I'm scared of what is to come in the market generally. I don't see myself as a long-term condo dweller, ultimately I would like to live in a house, and I'm nervous that a market fall will coincide right with when I will be ready to make the move which will likely be within the next 3 to 4 years.
My options are sell and rent at what also seems to be obscene rates of about 1600 pm for an equivalent space to mine in my area, more than my total costs have been to own my place over the last few years, or stay put and risk the money I have in principal if the market does go south as well as put up with two constructions projects right across the road from me. There's no way I would sell and buy anything right now, as then I would be in an even worse position if the market does sink, plus I can't afford a house in what to me is a decent location.
I have talked to many of my friends about the property market (all young 30 somethings like me) and while most of them feel the market is a little overheated, I don't think any of them really have any concerns about a US style meltdown. They definitely all still have the "property always goes up in value" mentality, likely because that is what has always happened while we have actually been paying attention. I'm the only one who is truly concerned about what is to come.
I feel I have just rambled, but thought I would share the views of someone who is aware of the rumblings of a bubble but still not sure what to do. I'm sure there are others out there like me, but I do also think a lot of people still have little to no awareness of the bubble talk and still think it's different here.