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Baby, we got a bubble!?
- Thread starter simuls
- Start date
slickpete83
Active Member
hmmm... what would actually happen if we tried this now, and who reversed this policy and why. should be if you want to invest in real estate go buy a @#$%! rental apartment building,land or a REIT lol..
slickpete83
Active Member
I never thought I would see the day when real estate speculators would start a protest 
lenaitch
Senior Member
Or we could back to the old way of a developer buying land, servicing it then building a tract of homes (or a block of townhouses, whatever) and then selling them. I don't recall a lot of subdivisions and buildings built in the 50s, 60s and 70s going unsold. Much of the financing and risk has been shifted to the consumer.
wopchop
Building Toronto
The fact that Mattamy can simply sell a home for 16-20% less should make everyone question the developer/industry mantra that high costs are all due to regulations, fees, Greenbelt, etc.
Developers are scum.
Developers are scum.
slickpete83
Active Member
yes that's right 27sqft!! lol..
Admiral Beez
Superstar
Heavens, Paul Bernardo has more square footage.
slickpete83
Active Member
coming to Toronto-->best reno idea , kitchen just needs a shower and you can turn your old bathroom into another bedroom for rent 
, kitchen just needs a shower and you can turn your old bathroom into another bedroom for rent 
christiesplits
Senior Member
In fairness, we've all lived with someone whose food taste like sh*t.coming to Toronto-->best reno idea
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Admiral Beez
Superstar
40 years? That’s nuts.
www.thestar.com
Paywall free: https://archive.is/JRmxX
Presumably you’re in your mid 30s or early 40s when you buy a house, meaning you’re in your mid 70s to early 80s when you pay off the house? So, you’re essentially in debt for life. Doesn‘t allowing such long terms cause pricing inflation and contribute to possible bubbles? If the govt only allowed 25 year mortgages wouldn’t this limit prices, since the market only has so much money?
I’m in my 50s, I can’t imagine having a mortgage now, let alone after I retire. I’m focused on squirrelling away money for retirement, home repairs and vacations.
Almost one third of Canadian homeowners with a mortgage now have amortization periods of more than 30 years
The standard 25-year amortization period is fading as lenders deal with stressed homeowners, putting banks at ‘greater risk of loss,’ says banking regulator.
www.thestar.com
Paywall free: https://archive.is/JRmxX
Presumably you’re in your mid 30s or early 40s when you buy a house, meaning you’re in your mid 70s to early 80s when you pay off the house? So, you’re essentially in debt for life. Doesn‘t allowing such long terms cause pricing inflation and contribute to possible bubbles? If the govt only allowed 25 year mortgages wouldn’t this limit prices, since the market only has so much money?
I’m in my 50s, I can’t imagine having a mortgage now, let alone after I retire. I’m focused on squirrelling away money for retirement, home repairs and vacations.
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Samwan
New Member
What generally happens to single family detached properties around Yonge street new high rise buildings and on Sheppard as well? Do they usually appreciate or depreciate in value?
Is there a risk of getting into land assembly and hence people don't want to buy those properties?
Is there a risk of getting into land assembly and hence people don't want to buy those properties?
smably
Senior Member
To be fair, these long amortizations are because we're seeing historically high interest rates. There's about zero chance that interest rates will remain as they are for the next 40 years, and as interest rates go back to normal, so will amortizations.
MisterF
Senior Member
Interest rates aren't historically high. They're quite low by historic standards. The last decade of almost free money was the exception, not the rule.
Samwan
New Member
Anyone has done any calculation on this?
Or does everyone think there is no effect?
gabe
Senior Member
40 years? That’s nuts.
Almost one third of Canadian homeowners with a mortgage now have amortization periods of more than 30 years
The standard 25-year amortization period is fading as lenders deal with stressed homeowners, putting banks at ‘greater risk of loss,’ says banking regulator.
Paywall free: https://archive.is/JRmxX
Presumably you’re in your mid 30s or early 40s when you buy a house, meaning you’re in your mid 70s to early 80s when you pay off the house? So, you’re essentially in debt for life. Doesn‘t allowing such long terms cause pricing inflation and contribute to possible bubbles? If the govt only allowed 25 year mortgages wouldn’t this limit prices, since the market only has so much money?
I’m in my 50s, I can’t imagine having a mortgage now, let alone after I retire. I’m focused on squirrelling away money for retirement, home repairs and vacations.
My parents were both around 50 when they paid the house off 20 years ago. The house is now worth 1,9 million as of 2022. Crazy, it was built as a middle class starter home in the 1960s.