News   Nov 14, 2019
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Baby, we got a bubble!?

Migos

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BMyers...no comment on the lawsuit I posted against your employer Fortress? Well here's another one.

Second syndicated mortgage claim filed
http://www.mortgagebrokernews.ca/news/second-syndicated-mortgage-claim-filed-214453.aspx

The second claim filed against Fortress Real Capital will not be the last, according to the plaintiff’s real estate lawyer.

A month after it was reported two investors were suing Fortress Real Capital – among others – following the bankruptcy of the Maddy Collier Centre in Barrie, one of the original plaintiffs has brought forth a second suit.
The claim is against Fortress Real Capital, Fortress Real Developments, Jawad Rathore, Vincenzo Petrozza, Empire Pace (1088 Progress), Olympia Trust Company and a number of other entities and individuals, including the appraiser responsible for valuing the development.

The development in question this time is Empire Pace at 1088 Progress in Scarborough.
 

homelessgeneration

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I saw the Agenda segment.

Jay had good intentions and a couple good points, but kept playing the race card. It was pretty painful to watch at times.

My takeaway right now is I'd rather rent and keep my money than buy in this inflated market, even if it keeps going up, I'm still a slave to it whenever I buy in.

Lets roll the dice.
 

BMyers

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I saw the Agenda segment.

Jay had good intentions and a couple good points, but kept playing the race card. It was pretty painful to watch at times.

My takeaway right now is I'd rather rent and keep my money than buy in this inflated market, even if it keeps going up, I'm still a slave to it whenever I buy in.

Lets roll the dice.
I would have preferred to focus more on middle-class affordability as opposed to social housing or "non-market" housing as that is not really my area of expertise. It is clear that major government incentives are required to improve that segment of the housing market.

I would never recommend overextending yourself to get into the market, rent until you feel financially comfortable, trying to time the market is a fool's game.


Lastly, I am not going to comment on active litigation against my firm, those projects are under construction and nearing completion. But thanks for your concern Dear Summer.
 

Migos

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Finance Minister Bill Morneau is expected to announce the new rules when he speaks in Toronto on Monday. They will include a move to close a loophole in the tax laws that allows non-residents to buy homes in Canada, and then get a tax exemption when they sell the home by claiming it as a principal residence.
http://www.cbc.ca/news/business/ottawa-housing-tax-real-estate-1.3788725

Finally. I don't see how this solves the fundamental issue which is foreigners living and working overseas and buying a home in Canda for their PR wife or kids to live in, all while paying no Canadian income tax.
 

TheKingEast

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Reading the comments at the bottom of that article... we have some really dumb people in this country. All this does is make it even harder for younger buyers to buy a home. I don't see how this helps anyone but pander to those who are blaming the whole thing on foreign investment. In Toronto especially, the issue with the prices is product. There simply isn't enough of it...why? Because no one wants to pay the ridiculous double land transfer tax. Build more homes, drop the silly double land transfer tax. Close the loopholes without hurting the Canadian buyers.

This will really heat up the condo market so good for me.
 

rbt

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Because no one wants to pay the ridiculous double land transfer tax. Build more homes, drop the silly double land transfer tax.
Condo sales didn't slow down even a tiny bit when the city portion came in. What makes you think it's a major consideration among pre-construction condo buyers now?

I expect any price reduction opened up by LTT reduction will be quickly eaten up by a land price increase.

That $25M plot Trump Tower is on was considered crazy expensive at the time. Land acquisition for "The One" added another zero to that $/acre.
 
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TheKingEast

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Condo sales didn't slow down even a tiny bit when it came in. What makes you think it's a consideration among pre-construction condo buyers now?
It's more of an issue with SFH. Why move and a) pay an inflated price for a new house and b) pay an exorbitant land transfer tax when you can simply take the equity out of your home and renovate it.....adding value to it at the same time?

I still think being taxed twice for anything is ridiculous.
 

Migos

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Reading the comments at the bottom of that article... we have some really dumb people in this country. All this does is make it even harder for younger buyers to buy a home. I don't see how this helps anyone but pander to those who are blaming the whole thing on foreign investment. In Toronto especially, the issue with the prices is product. There simply isn't enough of it...why? Because no one wants to pay the ridiculous double land transfer tax. Build more homes, drop the silly double land transfer tax. Close the loopholes without hurting the Canadian buyers.

This will really heat up the condo market so good for me.
You state the problem is lack of supply but then don't acknowledge that reducing demand ("make it even harder for younger buyers to buy a home") will decrease prices.
 

TheKingEast

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You state the problem is lack of supply but then don't acknowledge that reducing demand ("make it even harder for younger buyers to buy a home") will decrease prices.
Not really. The problem isn't young buyers driving the market. I just don't think these steps address the problem
 

Migos

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Not really. The problem isn't young buyers driving the market. I just don't think these steps address the problem
Every buyer drives the market.

I agree that these changes won't address the fundamental issues but they will help somewhat. I actually think the change to test mortgage applicants at the BoC mortgage rate will have a bigger impact than the foreign buyer changes. Marginal buyers are going to be removed from the market or their max purchase price pushed down due to the aforementioned change. The foreign buyer changes are mostly just saying they'll enforce laws that are already in place.
 

cdr108

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Reading the comments at the bottom of that article... we have some really dumb people in this country. All this does is make it even harder for younger buyers to buy a home. I don't see how this helps anyone but pander to those who are blaming the whole thing on foreign investment. In Toronto especially, the issue with the prices is product. There simply isn't enough of it...why? Because no one wants to pay the ridiculous double land transfer tax. Build more homes, drop the silly double land transfer tax. Close the loopholes without hurting the Canadian buyers.

This will really heat up the condo market so good for me.

only if developers & sellers drop their prices 20-25% from current valuations as the new mortgage stress test rules will reduce the amount available to borrow.

walk into any project and the sales /RE agents use monthly payments based on low rates (1.99-2.49%) to sell the carrying cost & "affordability" of the unit
 

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