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Thread: real estate..... is it true??

  1. #361
    Quote Originally Posted by rgkv View Post
    I talked with the new owners to see what there plans are. As I thought, plan was to tear it down, build the monster house, make big profit. Problem now he said was.. can't get loan on property, over mortgaged, no money to build... need to rent till market returns..
    I think it will be years till they can even get what they payed for it.
    Numbers don't make sense, IMHO. Value has dropped $350-$400K and that is affecting their ability to build a Monster home? Even if the value didn't drop and stayed the same, not really sure how they were even planning on tearing down a home, getting permits, plans,etc.... And building this monster home to make a huge profit. If the drop in the market has stopped their ability to do something, then they were not very smart or prepared (had a strong cash reserve or access to money) in the first place. Most likely received dumb advice from someone or came up with the crazy idea themselves. The way it sounds they wanted to make a killing and if that was the plan, they would have had to spend hundreds of thousands of dollars (high hundreds to over a million) to get the job done.
    "The envy of all mankind". Don't believe me, just ask her

  2. #362
    Quote Originally Posted by Samranchoi View Post
    Numbers don't make sense, IMHO. Value has dropped $350-$400K and that is affecting their ability to build a Monster home? Even if the value didn't drop and stayed the same, not really sure how they were even planning on tearing down a home, getting permits, plans,etc.... And building this monster home to make a huge profit. If the drop in the market has stopped their ability to do something, then they were not very smart or prepared (had a strong cash reserve or access to money) in the first place. Most likely received dumb advice from someone or came up with the crazy idea themselves. The way it sounds they wanted to make a killing and if that was the plan, they would have had to spend hundreds of thousands of dollars (high hundreds to over a million) to get the job done.
    Maybe they had the money or bank backing for a well laid out plan, buy for a mil {or so} build for 6 to 8, sell for 2.2 or so,, using the same numbers minus the 400 loss in value, profit disappears and, for now anyways they can't get more money for the sale of the build.. so, no deal

  3. #363
    I am (was) in a high demand area and based on my observations in the last two months the market has died (in relative terms) - inventory is not moving or if, verrrrry slow.

    My guess is that things will stabilize over the next couple of years. I don't know if the Chinese government clamping down on the 50k per year FX limit is a part of the cause, limiting the bribery money entering Canada?

  4. #364
    MOI is still very low so prices can still keep going up. Will be interesting to see what happens when condo prices plateau. I suspect active listings will start to increase over the summer as mortgage originations plummet and market uncertainty creeps in.

    Conversely, there are still many folks strongly bullish on the Toronto housing market on other forums I visit.

    Think of the children -> http://www.numberofabortions.com/
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  5. #365
    Quote Originally Posted by The "Bone" Ranger View Post
    I am (was) in a high demand area and based on my observations in the last two months the market has died (in relative terms) - inventory is not moving or if, verrrrry slow.

    My guess is that things will stabilize over the next couple of years. I don't know if the Chinese government clamping down on the 50k per year FX limit is a part of the cause, limiting the bribery money entering Canada?
    Statistically from Canadian government released a couple months ago, ownership of real estates in Canada by foreigners are very small in percentage. If I remember them right, foreigners only own about 3% of real estates in the GTA and around 5% in Vancouver.

    All of these real estate prices' craziness (up and down) are not from the foreigners. However, I solely believe that they are all from the Canadian speculators (some says investors) who are the main force of the real estate prices' up and down.

    It's a normal psychology that the problems which we have had such as real estates' pricing problems in Canada are not caused by Canadian but from foreigners such as Chinese. It's more of the psychological thinking of most of human beings and not a fact. In other word, all of the problems which we have had are not caused by our own actions but other people actions.

  6. #366
    My belief is that although they are a small percentage of the buyers, they were driving the prices up. If something is for sale and someone with the bribery money comes in and starts making high offers, others will have to jump in to compete and so forth. Also, it is too coincidental that ever since they slapped the foreign buyers' tax that the market cooled off?

    Quote Originally Posted by NiceToMeetYou View Post
    Statistically from Canadian government released a couple months ago, ownership of real estates in Canada by foreigners are very small in percentage. If I remember them right, foreigners only own about 3% of real estates in the GTA and around 5% in Vancouver.

    All of these real estate prices' craziness (up and down) are not from the foreigners. However, I solely believe that they are all from the Canadian speculators (some says investors) who are the main force of the real estate prices' up and down.

    It's a normal psychology that the problems which we have had such as real estates' pricing problems in Canada are not caused by Canadian but from foreigners such as Chinese. It's more of the psychological thinking of most of human beings and not a fact. In other word, all of the problems which we have had are not caused by our own actions but other people actions.

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