Condo Prices

stugotsms · Mar 10, 2005

I looking to buy a condo in the yonge and finch area. They seem high. Just wondering if I should wait until the end of March or April to buy. I'm kinda worried that if I spend 250G's now that next year it will be worth 200G's. Is the real estate market going to crash and burn soon?

Any thoughts would be great.

Thanks

Stugots.

Svend · Mar 10, 2005

I don't see evidence that a huge crash is coming this year.

Condos get hit first and hardest in any correction of the market so it's good to be wary, but if you're in for the long term I think that the location you're interested in will hold its value well.

mmouse · Mar 10, 2005

I'm not an expert but seriously doubt any reduction in condo prices in north york would happen in the first half of the year. Due to the glut of new projects in that area, you might see a 5-10% reduction by end of year, but that is a worse case scenario.
There is speculation that the interest rates may even fall due to the strong cdn$, if so that could even increase prices.

n_v · Mar 10, 2005

The market is not getting any better from a buyer's perspective. Longer the wait the higher the price.

stugotsms · Mar 10, 2005

Thanks, I was thinking that since there are so many condos being built that eventully it would drive the price down since there would be more supply then demand. I am planning on living there for at least 5 years. I was just thinking of the early 90's when condos costed 300Gs then two moths later 150Gs. I guess nothing is for sure. I plan to put down more than 5%.

fullmetal · Mar 10, 2005

the price of a condo will always go up , not down even with the bad economy we are having .

n_v · Mar 10, 2005

fullmetal... not down even with the bad economy we are having .[/QUOTE said:
What's bad about it?

stugotsms · Mar 10, 2005

I thought condos were hit first when the market goes down.

stugotsms · Mar 10, 2005

Thanks

prelations · Mar 10, 2005

condo prices

Here are some good points:
-the market is hot right now, and the longer you wait, the higher the price of your condo will be. The best times to buy Real Estate is in the winter, and xmas. Really, no-one wants to move or sell during that time because of the weather, and you can't really "see" the property & who wants to be moving boxes and the xmas tree?

-condos are always going to be the first hit if the market corrects. I don't the market correcting itself anytime soon. And you're putting more than 5% so you've got equity in your home, so I don't think you'll be affected much should rates change etc. It's the people who put 0% down, borrow the closing costs, and can hardly afford what they're buying, that should be worried.

- yonge and finch is a subway stop. you'll always maintain some sort of value being on the subway line (rental possibilities, and area development).

-yonge and eglinton (established area ),
yonge and sheppard (theatre, small mall, grocery store) ,
yonge and Empress (theatre, small mall, grocery store),
yonge and Finch (no theatre, no mall, grocery more than 2 blocks away).

Can you see how each stop is progressively getting more and more densly populated, and being saturated with stores, movie theatres, and bars? You can't really go too wrong.

jetfuel · Mar 10, 2005

What goes up must come down! That area is full of condo's and I a real estate friend of mine who told me that there are a lot of condos for rent in that area. There has been talk of a Real Estate crash in 2006.
The market is slowly declining, sales were down in jan.
Don't mean to be negative.

stugotsms · Mar 10, 2005

Well, thanks for the info. I was thinking of renting a place for one year before buying to see if there would be any price reductions. I'm also going to low ball the offer to see what I can get off the price.

Maybe it will work, maybe it won't. I just dont want a condo that I paid 250gs, to be worth 220Gs one year later. But that is life I guess.

Crash is 2006?????? How do u know????

n_v · Mar 11, 2005

jetfuel said:
What goes up must come down! That area is full of condo's and I a real estate friend of mine who told me that there are a lot of condos for rent in that area. There has been talk of a Real Estate crash in 2006.
The market is slowly declining, sales were down in jan.
Don't mean to be negative.

Inacurate statement. False actually.

http://www.torontorealestateboard.com/aboutus/news/news2005/nr011705.htm

Picard · Mar 11, 2005

why do you want yonge/Finch area? It is expensive there. There is one condo on sale now 2 blocks west from the corner Eglinton/victoria park. It is locate across from Parkway Honda dealer. I forgot the cross street there. It is below 200k mark. It is brand new and still has several empty suites

n_v · Mar 11, 2005

Picard said:
why do you want yonge/Finch area? It is expensive there. There is one condo on sale now 2 blocks west from the corner Eglinton/victoria park.

Why do you want to go there? It's a shit hole.

jetfuel · Mar 11, 2005

I have been hearing about the real estate boom for some time from different sources. Of course the media tells us that everything is rosy. I myself would like to purchase a condo, but i am terrified that the crash will happen. I have had not much luck in investing (eg tech stocks).
The media talks about how great our economy is, but I know so many people that are unemployed.
I know people that got burnt heavily the last time the market crashed. Be very careful and remember location, location and location.

shanel19 · Mar 12, 2005

Picard said:
why do you want yonge/Finch area? It is expensive there. There is one condo on sale now 2 blocks west from the corner Eglinton/victoria park. It is locate across from Parkway Honda dealer. I forgot the cross street there. It is below 200k mark. It is brand new and still has several empty suites

Some people strive for the finer things in life not just whats cheaper.

Berlin · Mar 12, 2005

Strongbeau said:
Where else can you get multiple hundred percent increases in your actual investment - because you only had to lay out 5% of the necessary capital to tie up the asset?

First of all, we are talking about condo here, specifically in the Finch and Yonge area, in the year of 2005.

200% plus value gain in condo or detached housing market in the gta won't happen again for a long time, if you are planning to buy now. The folks that reaped huge " multiple hundred percent " profit were the ones that bought before the big real estate boom in the late 1980's.

Having said that, if you have any info on condo /houses that have " multiple hundred percent " potential in the area, please provide links.

Berlin · Mar 12, 2005

Yonge/Finch

stugotsms said:
I looking to buy a condo in the yonge and finch area. They seem high. Just wondering if I should wait until the end of March or April to buy. I'm kinda worried that if I spend 250G's now that next year it will be worth 200G's. Is the real estate market going to crash and burn soon?

The market will adjust itself as always and I don't think the next adjustment will be like the crash in early 90's. The demand in that area is quite constant, you won't lose in the long run if you are buying one as your primary residense. I'd wait till fall 2005 if time is not a factor.

n_v · Mar 12, 2005

jetfuel said:
I have been hearing about the real estate boom for some time from different sources. Of course the media tells us that everything is rosy. I myself would like to purchase a condo, but i am terrified that the crash will happen. I have had not much luck in investing (eg tech stocks).
The media talks about how great our economy is, but I know so many people that are unemployed.
I know people that got burnt heavily the last time the market crashed. Be very careful and remember location, location and location.

But the reality is you have to eat, shower, sleep and shit somewhere. The market will not crash like it did in the early 90's for many reasons. So what if there is a minor correction. You still live in the property. The loss only occurs if and when you sell.

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