Baby, we got a bubble!?

[slickpete83]

I know it's fun to villainize landlords, but the real travesty is that rents feel like they don't have a better option than this.

i agree , if i was a student i would do the same, what else can you do ? sleep outside in the park in a tent

was reading a story of one older lady that sold her house and wanted to rent during retirement , her total pension income was $45K , she couldn't even qualify for a 1 bedroom apartment in Toronto, she even offered to pay 12 months rent up front

With minimum income requirements, to qualify for an apartment a potential tenant must have an income high enough to ensure that s/he does not pay more than, for example, 25%-35% of that income towards rent.

 

[Admiral Beez]

was reading a story of one older lady that sold her house and wanted to rent during retirement , her total pension income was $45K , she couldn't even qualify for a 1 bedroom apartment in Toronto, she even offered to pay 12 months rent up front

Without knowing the circumstances, on the surface that sounds like madness. If you own your house outright you don’t sell it to rent elsewhere. Instead, you rent out your house and use that to pay your own rent.

 

[evandyk]

If they're basing their approval on your income, you're still not going to find an apartment to rent.

 

[lenaitch]

Without knowing the circumstances, on the surface that sounds like madness. If you own your house outright you don’t sell it to rent elsewhere. Instead, you rent out your house and use that to pay your own rent.

I can understand it. Many people, I included, simply don't want the hassle of being a landlord.

 

[Undead]

It's immigration and monetary policy, not mortgage fraud.

Rent is artificially high due to overly relaxed/low down payment requirements (too much leverage being passed down to the renter) and mortgage fraud. Which in turn, creates a new "floor" for the rental market.

The countrys relaxed attitude towards substandard living arrangements (as opposed to banning the advertising of roomshare/room rental ) also created "floor" of rents which eat up 80% of take home pay. I noticed the room rental culture started getting really bad around 2011, horrendous basement room rentals, bunk bed rentals, "share room" rentals. This is not somthing that should be permitted to be advertised in a first world country.

"If rooms with no ensuite bathroom are going for $900 a month. Then I should be able to charge $2700 a month for a condo" Allowing the room slumlording was opening pandoras box. So was the mortgage fraud and the CRAs failure to create a system to check all documents.

And so we've ended up with more money going into unproductive real estate and less towards real economic growth/local business etc. And a city where everythings closing earlier.

 

[xy3]

Monetary policy drove prices up across all of Canada during the Covid Bubble and the effects of this absurd liquidity continue to stimulate major cities across Canada.

Foreign immigration/international students and mortgage fraud almost exclusively effect the GTA & Lower Mainland.

Edmonton has a much more balanced and reasonable market with almost no mortgage fraud. But you are correct this is due in part to lower more manageable immigration levels there .

 

[christiesplits]

‘The condo market right now is a ghost town’: Toronto has a record number of units for sale. Here’s why they aren’t selling despite a housing crisis​

‘The condo market right now is a ghost town’: Toronto has a record number of units for sale. Here’s why they aren’t selling despite a housing crisis

'Something is wrong with the market when we have housing nobody wants and homelessness at the same time,' says Coun. Gord Perks, Toronto's planning and housing chair.

www.thestar.com

 

[afransen]

It's pretty simple. Prices need to go down.

 

[evandyk]

I wonder what the price to rent ratio is for a unit like that? Just doing back of the napkin math, if you had $589,000 lying around and wanted to make an 8% return on it, you'd need to rent it out for almost $4,000 plus property taxes and condo fees. Realistically you're probably making more like 3% pre-tax. Who would buy that as an investor?

If you just wanted to live in a one bedroom unit at Jarvis and Dundas, it probably makes way more sense to rent than to buy right now.

 

[afransen]

I wonder what the price to rent ratio is for a unit like that? Just doing back of the napkin math, if you had $589,000 lying around and wanted to make an 8% return on it, you'd need to rent it out for almost $4,000 plus property taxes and condo fees. Realistically you're probably making more like 3% pre-tax. Who would buy that as an investor?

If you just wanted to live in a one bedroom unit at Jarvis and Dundas, it probably makes way more sense to rent than to buy right now.

On the assumption a greater fool will come along and pay even more for it.

 

[Admiral Beez]

https://archive.is/jzn71#selection-4525.0-4531.43

"If more people continue to off-load their units for significantly lower costs it can depreciate the value of the building, which isn’t what developers or existing homeowners want, he said."

Um. That's how we get to affordable housing, by increasing supply over demand.

 

[Admiral Beez]

 

[afransen]

https://archive.is/jzn71#selection-4525.0-4531.43

"If more people continue to off-load their units for significantly lower costs it can depreciate the value of the building, which isn’t what developers or existing homeowners want, he said."

Um. That's how we get to affordable housing, by increasing supply over demand.

It is very amusing seeing politicians and others tie themselves in knots saying that they want housing to be affordable and that they want house prices to remain high to protect household balance sheets.

 

[evandyk]

"There’s a listing for a detached home near Avenue Road and the 401, ... priced competitively, ... but there’s little activity in terms of offers from buyers..."

Ummmm... maybe if nobody is offering to buy it, it's not competitively priced?

 

[goreckm]

It is very amusing seeing politicians and others tie themselves in knots saying that they want housing to be affordable and that they want house prices to remain high to protect household balance sheets.

Yup, quite the pickle they've made for themselves. It would be fun to watch if we didn't also have to live here.