cornflakes
New Member
Some of you may have heard about the economic collapse that is bound to happen very soon in America as a result of their endless printing of currency and the growing debt. Fiat currencies have ALWAYS failed and it's not a matter if IF but WHEN the US Dollar will come crashing down, too. This would obviously have a global affect since the world's currency is pretty much the US dollar, but I'd imagine Canada, being neighbours, would be affected even greater and faster.
My question is, if there is an economic collapse that hits the US in either the end of 2015 or next year in 2016, does that mean that Toronto's economy would also go into recession or the greatest depression we've ever seen? And if so, will that directly affect the real estate industry in Toronto (meaning, real estate values will crumble, and people could lose all sorts of value on their houses, assets, etc.)?
If this is true, then would it also be true that any prospective investors who are thinking about putting down some serious money for a condo investment this year or next year, are better off holding out and waiting until the crash happens? Then when the real estate is dirt cheap, that would be the best time to start buying condos or houses? From my understanding, the rich get richer during economic collapses and depressions, because that's when they scoop everything up for dirt cheap prices and low interest rates. The poor get poorer because they panic and sell everything off for a loss when things get bad. But the market always rebounds and value always comes back up.
Right now, I've been told that Toronto's condo market is booming and it's looking really good, trending upwards. It seems like nothing can really stop this momentum EXCEPT the worst case scenario which is a worldwide economic depression thanks to the US economic crash. So, wouldn't that directly affect Toronto, as well? Then we had better not invest 300k for a condo unit right now because it might only be worth 150k after the economic crash?
Please feel free to correct my misinformed or misguided beliefs. Just try to explain in some detail why my assumptions are not correct, so that maybe I can learn something that I don't currently know. AFAIK, this is exactly how it works: economic depression = real estate bubble burst = lower real estate value = best time to buy = market will rebound and value will eventually go back up and even higher than before the crash = that's how you make big money and get rich.
Thanks.
My question is, if there is an economic collapse that hits the US in either the end of 2015 or next year in 2016, does that mean that Toronto's economy would also go into recession or the greatest depression we've ever seen? And if so, will that directly affect the real estate industry in Toronto (meaning, real estate values will crumble, and people could lose all sorts of value on their houses, assets, etc.)?
If this is true, then would it also be true that any prospective investors who are thinking about putting down some serious money for a condo investment this year or next year, are better off holding out and waiting until the crash happens? Then when the real estate is dirt cheap, that would be the best time to start buying condos or houses? From my understanding, the rich get richer during economic collapses and depressions, because that's when they scoop everything up for dirt cheap prices and low interest rates. The poor get poorer because they panic and sell everything off for a loss when things get bad. But the market always rebounds and value always comes back up.
Right now, I've been told that Toronto's condo market is booming and it's looking really good, trending upwards. It seems like nothing can really stop this momentum EXCEPT the worst case scenario which is a worldwide economic depression thanks to the US economic crash. So, wouldn't that directly affect Toronto, as well? Then we had better not invest 300k for a condo unit right now because it might only be worth 150k after the economic crash?
Please feel free to correct my misinformed or misguided beliefs. Just try to explain in some detail why my assumptions are not correct, so that maybe I can learn something that I don't currently know. AFAIK, this is exactly how it works: economic depression = real estate bubble burst = lower real estate value = best time to buy = market will rebound and value will eventually go back up and even higher than before the crash = that's how you make big money and get rich.
Thanks.