Why are so many big-city condos sitting empty?
- Thread starter DesRicardo
- Start date
When you buy a condo you're buying a box in the sky. You just own the $50,000 in materials that are inside that box. They package it so it looks pretty (new appliances, quartz countertops, fresh paint and trim, beautiful bathroom, etc.). But it's still only $50,000 of materials. That stuff ages and loses value. Then you have to pay a monthly maintenance fee. In addition, you pay your interest, insurance, mainatance and repairs, utilities, etc. Paying $700,000 for this box makes little sense. That's why it's better to buy an old, ugly house that is on land. The land will always go up, since their is only so much available. The house can always be made to look pretty. In a sense, condos are kind of like a scam.
Don't forget the Special Assessments!
June posted some weak sales numbers in the GTA and Vancouver.
vancouversun.com
financialpost.com
Honestly, Canada is fucked up by all measures right now. The government and media are not telling the truth.
Vancouver home sales fall 19 per cent in June as inventory continues to build: board
Greater Vancouver Realtors says there were 2,418 home sales in the region last month, 23.6 per cent below the 10-year seasonal average
vancouversun.com
Toronto home sales down 16% despite Bank of Canada’s rate cut
Toronto Regional Real Estate Board survey suggests interest rates will need to come down at least 1% to really boost sales. Read more
financialpost.com
Honestly, Canada is fucked up by all measures right now. The government and media are not telling the truth.
Part of the reason is that a lot of downtown condos these days have been built for investors E.g. micro condos. Due to their size and layout, it makes them unattractive for a lot of potential buyers. Add to that, a lot of investors /landlords are getting out of the rental business, which has had the effect of creating a glut of units on the market.
In the early 2000s condos were going for $50-60K. When they shot up in price to $80-100 and the to $120-150 people started to snap them up. Some for investment, some to live in. Condos are so over priced now there are few buyers.
A little summary of the 1989 Toronto Housing correction that many people have never heard about. A downward spiral that lasted 7 years! Very interesting article.
Looks like a lot of mom and pop investors are going to get hurt!
Looks like a lot of mom and pop investors are going to get hurt!
I'm no expert, but ya'll seem to missing another important factor. People are strapped for cash. Inflation and condo's kept going up, but people's salaries didn't. When one and two bedroom apartments become almost unaffordable for the average person, it's only natural that some how things have to stabilize. This was always going to happen, it just took 15-20 years longer then expected.
https://globalnews.ca/news/10643517/toronto-condo-investors-losing-money/
https://globalnews.ca/news/10643517/toronto-condo-investors-losing-money/
I have a friend who bought a small 1 + den in the Spadina corridor as a 2nd property at the peak of the condo boom. Didn't tell me how much he paid for it but I'm sure its in the high $600's. And his mortgage payments went up about 40-50% due to interest rate hikes. So he's paying much higher biweekly mortgage payments on a depreciating asset that can't be moved very easily. He should have listened to me back then.
Only the smaller units don't sell. Those purchased by investors to flip or rent out. Come on man. That is a 330 sq ft
unit. Who wants that. The 700 sq ft unit in the same building sold on first try in 13 days. So what really was your point?
Larger units are lived in by owners. Those are not sitting empty. The asking for that 330 sq ft condo was 400 plus thou. What house are you getting for 400 plus thou? Especially if you want it in the same location.
People always talk about condo monthly maintenance costs like there's no maintenance costs for a house.
If you clean your own house, shovel your own snow, or do your own landscape rather than hire others to do then good for you. I'd rather pay someone and spend that time doing other things. Time is precious. Bill Perkins has a full time driver because he sees the value in using his time during a commute on other things. Like anything living in a house or a box in the sky is a lifestyle choice as is using an sp.
unit. Who wants that. The 700 sq ft unit in the same building sold on first try in 13 days. So what really was your point?
Larger units are lived in by owners. Those are not sitting empty. The asking for that 330 sq ft condo was 400 plus thou. What house are you getting for 400 plus thou? Especially if you want it in the same location.
People always talk about condo monthly maintenance costs like there's no maintenance costs for a house.
If you clean your own house, shovel your own snow, or do your own landscape rather than hire others to do then good for you. I'd rather pay someone and spend that time doing other things. Time is precious. Bill Perkins has a full time driver because he sees the value in using his time during a commute on other things. Like anything living in a house or a box in the sky is a lifestyle choice as is using an sp.
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This makes no sense. What could he possible get done in the back seat of a car?
Stop being lazy and mow your damn lawn.
Current crop of condos are built for investors and not families. Had they built 1000 - 1500sqf condos that a family can actually live in it would be a different story.
And this shocks youJune posted some weak sales numbers in the GTA and Vancouver.
Vancouver home sales fall 19 per cent in June as inventory continues to build: board
Greater Vancouver Realtors says there were 2,418 home sales in the region last month, 23.6 per cent below the 10-year seasonal average
Toronto home sales down 16% despite Bank of Canada’s rate cut
Toronto Regional Real Estate Board survey suggests interest rates will need to come down at least 1% to really boost sales. Read more
Honestly, Canada is fucked up by all measures right now. The government and media are not telling the truth.
How soon til we see condos square footage in double digit sizes. How they expect over half a million for something under 400sq ft is head shaking. Now you don't even get a locker. That explains why all of these storage places are opening up all over the GTA
Yeah, no parking and now no locker.
What about the density plans for Toronto? Are they going to have condos on top of every library and subway station?
Millions of laneway houses?
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