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Future of Toronto condo prices

Buy what you can afford and buy quality over bargain even if it means buying something smaller than wished for. Hang on to the place and get on with living your life.

Or don't buy, and get on with living your life. Or wait for the market to change, and get on with living your life.
 
Hello Granny,

2. However, your advice is more for people who are looking to buy a place to live, than for investors. And it is investors who are trying to predict the future the most. I'm waiting to get into my first condo next summer (which I bought a few months ago - for quality and affordability), but I'm also a beginner investor. I wonder what advice you can give to investors...

Thanks,

I think that's part of the problem. Not saying you personally Aguduser, but that investor mentality. People aren't paying for $300k condo's to live they're trying to make a quick flip and whoever buys from them is thinking the same thing. That's how we got to these prices in the first place.

Eventually prices will level off. People will feel it more than others. I don't think it'll hurt the people who bought condos b/c they choose them as a place to live. I'd like to think they planned ahead little better. I think the people who bought it for the quick flip will suffer from the hot potato effect. Then when stuck with the unexpected expense of a condo they can't flip, you off load at a loss or eat the interest until RE covers. Either way you lose.

No one will know for sure we're all speculating here.
 
Or don't buy, and get on with living your life. Or wait for the market to change, and get on with living your life.

"Things may come to those who wait....but only the things left by those who hustle." Abraham Lincoln
 
Good point Granny!
But we need the doom and gloom view too, that way people can consider both sides.

Good idea Ania. Lets see..here goes

Some reasons not to buy Downtown real estate.

1. The 1929 Depression actually had a 'Bear Trap' where after the initial collapse, the market roared back quickly..for a short time. A lot of people who lost money in the crash jumped back in only to lose absolutely everything they had. Some say we are now in similar situation.

2. The H1N1 flue is condsidered to be only a precurser to a massive worldwide pandemic within the next few years. Antibotics are now at the absolute final strength levels. The experts are worried that many millions could die and cause a world wide economic collapse.

3.Its been noted that this planet has not had a major meteor hit for an extrodinarily long period. We are now way overdue by historical standards.
One the mere size of a football field is enough to throw tons of debris into the atmosphere, choking off our sunlight and putting an end to most life on earth.

4.Security experts around the world say its just a matter of time before we have our first nuclear terrorist attack. World economies would go into a tail spin.

5.Global warming is accelerating far more rapidly then even the most pessimistic report suggested only a few years ago. Expect world economies to falter from the unexpected expense of dealing with natural diasters.

6.Nostradamus who many have claimed has been uncannily accurate with his predictions has predicted the the end of the wotld would happen around 2010 and it would begin in the Middle East.

7. The Mayan Calendar stops December 2012. According to scholars who have studied this once remarkable culture's writings, that this is when the world will come to an end. (I hear the movie is good too)

..You wanted doom and gloom to balance things out..well hows that for starters.
Kinda makes you want to go and get good and stinkin drunk huh?:D
 
“He that can have patience, can have what he willâ€

Benjamin Franklin

ooh. We are doing quotes are we?

"There is never a shortage of good reasons when one wants to avoid a commitment."

Granny
 
ooh. We are doing quotes are we?

"There is never a shortage of good reasons when one wants to avoid a commitment."

Granny

Nope. I'm just trying to illustrate that quotes have very little meaning to me. Give me hard facts and numbers over anecdotes and "conventional wisdom" any day.
 
Everybody nows that prices have been going one way and its up up up, if worried like some people about the market get a professional Realtor who has nowledge and can tell you which units will hold there value even in tough times.

Forget the rest get the best
By the way im never to busy for yours referalls!!!
 
Nothing will go only one direction.
When there is up, there is always going to have down.
It is true that the price was going up. However, it is starting to turn to a buyer's market now.
Remeber the real estate cycle we all learnt? It is going to become more and more difficult to sell your house.
In any case, it is good to be on the safe side to prepare yourself for 99.7% of the situation. 6 sigma.
Put down 30% or more for downpayment.
Stress test your mortgage rate and make sure at least you can break even on cash flow.
As the house price go up, and have uncertainty in the market, more and more people will rent instead of purchasing.
One point to note is that it is wise to make the gain when you purchase instead of when you sell.
Have positive cash flow instead of hoping the market will go up and hence you can flip to make money.
Be a wise investor. Look for long term wealth instead of quick flip rich.
 
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Everybody nows that prices have been going one way and its up up up, if worried like some people about the market get a professional Realtor who has nowledge and can tell you which units will hold there value even in tough times.

Forget the rest get the best
By the way im never to busy for yours referalls!!!

Right, advice from a 'professional realtor', one who spams threads, can't spell, and engages in fraudulent business practices. (see this guys other threads)
 
Would there be any warning signs before the market tumbles ? I so want to believe it will crash one day but for years it has just been steady moving upwards. I am wondering - what would be the signals when the market reaches its breaking point ? It would be great to know some stats on how many purchasers are investors for these condo projects as its not quite common to see pre-con condos sold out regardless of its area and price, very quickly after they are listed on the builders websites.
 
Peaks generally are reached when everyone you know--I mean even your taxi driver, bus driver etc--are bragging about the condo they just bought. Also, when a bunch of developments with hundreds of units sell out in a day or two (or maybe a week) that's another sign the top is near. Just like in the stock market when the herd is buying after all the insiders have sold...

For example, in November 2008 when Bazis launched One Bloor, they raised prices the day it launched and claimed it sold out. The mini crash followed soon after--I remember saying it was a sign a crash was near yet many on UT thought I was insane. Greed, quick sales always a sign of a peak.

In Vancouver Saturday, over 400 units sold in one afternoon in the Marine Drive Gateway project--a pretty mediocre location even though it's beside a transit station (there's nothing else around it.) Imagine a condo project at Finch West station selling out in a day--what's around it? (The subway station isn't completed yet of course.)

Vancouver--in danger of crashing. Toronto? I am waiting for a new tallest tower to be proposed--hyped--and sold in a day--then it's over.
 
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Would there be any warning signs before the market tumbles ? I so want to believe it will crash one day but for years it has just been steady moving upwards. I am wondering - what would be the signals when the market reaches its breaking point ? It would be great to know some stats on how many purchasers are investors for these condo projects as its not quite common to see pre-con condos sold out regardless of its area and price, very quickly after they are listed on the builders websites.

A build up of unsold inventory
Developer discounts
Rising vacancy rates
Mortgage rate spikes

Watch for first and second soon.
 
Good idea Ania. Lets see..here goes

Some reasons not to buy Downtown real estate.

1. The 1929 Depression actually had a 'Bear Trap' where after the initial collapse, the market roared back quickly..for a short time. A lot of people who lost money in the crash jumped back in only to lose absolutely everything they had. Some say we are now in similar situation.

2. The H1N1 flue is condsidered to be only a precurser to a massive worldwide pandemic within the next few years. Antibotics are now at the absolute final strength levels. The experts are worried that many millions could die and cause a world wide economic collapse.

3.Its been noted that this planet has not had a major meteor hit for an extrodinarily long period. We are now way overdue by historical standards.
One the mere size of a football field is enough to throw tons of debris into the atmosphere, choking off our sunlight and putting an end to most life on earth.

4.Security experts around the world say its just a matter of time before we have our first nuclear terrorist attack. World economies would go into a tail spin.

5.Global warming is accelerating far more rapidly then even the most pessimistic report suggested only a few years ago. Expect world economies to falter from the unexpected expense of dealing with natural diasters.

6.Nostradamus who many have claimed has been uncannily accurate with his predictions has predicted the the end of the wotld would happen around 2010 and it would begin in the Middle East.

7. The Mayan Calendar stops December 2012. According to scholars who have studied this once remarkable culture's writings, that this is when the world will come to an end. (I hear the movie is good too)

..You wanted doom and gloom to balance things out..well hows that for starters.
Kinda makes you want to go and get good and stinkin drunk huh?:D

You forgot the aliens.
 

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