Housing and Condos are going to crash

[Leimonis]

Fuck me i was looking at realestate today in turks and Caicos. They where unbelievable homes. The views architecture was ...well there's no words to describe it. If I had money the last place I'd buy something is in Canada.

damn it is nice at about $US500/foot. What's the pooning situation there?

PS - I checked on SA and this is how an average SB there looks like... Govern yourself accordingly LOL

 

[poker]

Canada is Number 2!

World’s Bubbliest Housing Markets Flash 2008 Style Warnings

(Bloomberg) -- Real estate prices around the world are flashing the kind of bubble warnings that haven’t been seen since the run up to the 2008 financial crisis, according to Bloomberg Economics.New Zealand, Canada and Sweden rank as the world’s frothiest housing markets, based on the key...

ca.finance.yahoo.com

 

[rogerdodger]

Congratulations Canada... it was announced today you won 2nd place! Yes... in the global frothy housing bubble, you're #2. Beaten out by New Zealand once again, but edging out Sweden for the Silver.

As I see it... while there are no fixed rules or market levers, there are sort of soft invisable walls.

Market insiders, investors, sellers, do the math. They break it down to square footage... and calculate how much income you have to generate... decide what the best business is. Not all businesses are equal. Corner Store vs high end designer crap.

And when the math stops working, as in Day Care's... the Gov't has to step in an subsidize.

But at what point do oil changes become too expensive? Brake jobs? Pet food?

At one point do laundry mats stop existing? Spending a $100,000 on a building and putting 20 washers and 20 dryers makes sense. Spending $2.5 million on the same building does not.

The Gov't cannot subsidize everything. (Although my Liberals do try). Do you think if we stopped subsidizing daycares prices would come back to reality? ( and no, there is no scenario that would ever happen. Gov't and bankers will not allow one income families ever again. Economy would collapse).

But at what point does lower margin business stop existing? Dollar stores?

Or, has someone already done the math and knows what the market can bare?

Is our PM, or any Federal leader smart enough to understand the demographics and implications of over immigration, and its affect on the real estate bubble and how it trickles down to small business.

Thank goodness there have been properties owned for decades that can afford some of this stuff... but once they cash out, neighborhoods will transform dramatically. But I think we are already seeing that with the closures of fixtures like Honest Ed's, and some of the great Toronto Bars and clubs that are going down. It's not lack of a market for clubs... it's a lack of a viable business model with todays realestate bubble.

Well put . Agreed about the immigration numbers. Cut immigration in half or even 75% , cut the red tape, years long approval times for housing developments and onerous expenses developers are saddled with and we may end up with something better. Not sure if the measures New Zealand have taken will be helping their housing affordability but they are making an attempt at cutting back on foreign buyers spoiling their housing market.

New Zealand bans sales of homes to foreigners

The move is aimed at cooling house prices and making properties more affordable to New Zealanders.

www.bbc.com

There will be millions of people from all over the planet wanting to move to Canada over the next decade. Apart from our fucked up housing situation, Canada ranks well above most 3rd world countires as a desirable place to live . Though unaffordable housing is changing that rapidly. Where the fuck are we going to put them all ? My kids cannot afford a house ( and most people under 30 ) so why should we be making real estate attractive to foreign buyers.? Maybe Trudeau should think about that the next time he imports another 25,000 refugees on top of the other 400,000. We need to shut the door.

 

[Scopez]

For sure.

tgere is an estimated 45 billion dollars that are ready to leave Hong Kong. Our govt wants a huge piece of it so they will make all sorts of concessions to attract it.

Announced last week

Permanent residence pathways for Hong Kong residents - Canada.ca

Temporary public policy for Hong Kong residents who are currently in Canada that provides a pathway to permanent residence.

www.canada.ca

 

[Goodoer]

I don't even think there are enough tradespersons in the Construction industry to keep up with demand...

 

[poker]

I lean Liberal.... but may vote for Erin O'Toole. he is smart guy, and don't think he'll run the country off a cliff.

That fact that Conservatives I know don't like him is just a bonus.

However... even Harper relied heavily on immigration to prop up the housing market and the economy. I am all for immigration.... but not at the expense of a housing crisis... be it a bubble, or a crash.

 

[Frankfooter]

That fact that Conservatives I know don't like him is just a bonus.

However... even Harper relied heavily on immigration to prop up the housing market and the economy. I am all for immigration.... but not at the expense of a housing crisis... be it a bubble, or a crash.

How'd that work out for conservatives in the US voting for Trump, despite most conservatives not liking him?
There isn't really any link between immigration and housing prices.

 

[Ceiling Cat]

If housing crashes it will be due to higher interest rates.

 

[poker]

How'd that work out for conservatives in the US voting for Trump, despite most conservatives not liking him?
There isn't really any link between immigration and housing prices.

Trump was and is psychotic. Trump is criminal, and should be in jail.

If JT stepped down and Cristia Freeland was put in charge I would have a lot more confidence in the current incarnation of federal Liberals. I gave Trudeau a chance... He blew it.

I can live with O'Toole for one term. Not ideal...

And supply and demand are drivers in the market. Immigration increases demand.

If a million people decided to emigrate out of Canada tomorrow, there would be a lot vacant units and prices would drop.

However... I will concede, the Conservative immigration platform last election was identical to the Liberal platform.

 

[Darts]

Unlike Montreal, Toronto doesn't have many duplexes and triplexes. When I lived in Montreal I bought a triplexe. Lived on the top floor and rented the lower two floors and basement. Just beware that dealing with tenants can be challenging.

 

[Darts]

 

[Charlemagne]

People Are Outraged After A Toronto-Based Condo Company Announced They Will Buy $1 Billion Worth Of Houses To Turn Into Rental Units

People Are Outraged After A Toronto-Based Condo Company Announced They Will Buy $1 Billion Worth Of Houses To Turn Into Rental Units - 6ixBuzz

A Toronto development company is trying to profit off of the already terrible Ontario housing market buy purchasing thousands of homes

6ix.buzz

Just like the private equity firms to the south of us....

Will this crash the market? Doubt it.

 

[angrymime666]

People Are Outraged After A Toronto-Based Condo Company Announced They Will Buy $1 Billion Worth Of Houses To Turn Into Rental Units

People Are Outraged After A Toronto-Based Condo Company Announced They Will Buy $1 Billion Worth Of Houses To Turn Into Rental Units - 6ixBuzz

A Toronto development company is trying to profit off of the already terrible Ontario housing market buy purchasing thousands of homes

6ix.buzz

Just like the private equity firms to the south of us....

Will this crash the market? Doubt it.

this may becoming a trend as I was watching a vlog on you tube but it was hedge funds buying subdivisions new and adding it to their portfolio as another way to diversify and get a good return.

I dont think this route would crash a market but would reduce houses available on the market. supply would go down and demand goes up.

a rise in interest rates would trip a housing crash. I dont think the boc is planning to raise prime until 2023 so we should be safe till then.

 

[Cardinal Fang]

Unlike Montreal, Toronto doesn't have many duplexes and triplexes. When I lived in Montreal I bought a triplexe. Lived on the top floor and rented the lower two floors and basement. Just beware that dealing with tenants can be challenging.
View attachment 55406
View attachment 55407

Those stairs are a nightmare in the winters that hit Montreal. I'd have a mattress at the bottom just to be safe.

 

[Jenesis]

this may becoming a trend as I was watching a vlog on you tube but it was hedge funds buying subdivisions new and adding it to their portfolio as another way to diversify and get a good return.

I dont think this route would crash a market but would reduce houses available on the market. supply would go down and demand goes up.

a rise in interest rates would trip a housing crash. I dont think the boc is planning to raise prime until 2023 so we should be safe till then.

But the demand for rental units is huge and this would fill that void. Not everyone wants to buy. Or buy in the city but they need to work there for right now until they can buy in the burbs.

 

[Frankfooter]

But the demand for rental units is huge and this would fill that void. Not everyone wants to buy. Or buy in the city but they need to work there for right now until they can buy in the burbs.

I dunno, its hard not to see this as offering lifelong rentals to people who will never be able to afford, with the houses likely costing the same as a mortgage to rent.

 

[angrymime666]

But the demand for rental units is huge and this would fill that void. Not everyone wants to buy. Or buy in the city but they need to work there for right now until they can buy in the burbs.

I agree there is a big market for rentals, but its for affordable rentals is what people desire most. these funds are buying upscale brand new homes and charging a significant amount for living there. this would be geared to persons with high household income(guesstimate of the top 20-30 percent of households).

the fear if missing out for a house is an epidemic currently. I house recently sold in a so so neighborhood, dated but in decent shape for 60k above ask(thats huge for not being in the gta). the topper was someone was murdered there 4 months previously.

 

[poker]

Again... when housing prices go up... commercial properties go up... and that drags up all the rents for business.

Notice prices of stuff going up lately? People blame Covid I am sure....

Real Estate is a prime cause of inflation

 

[Leimonis]

I dunno, its hard not to see this as offering lifelong rentals to people who will never be able to afford, with the houses likely costing the same as a mortgage to rent.

note that they still think that $450k for a lot on which you can build a house is a lot of money

 

[Cheeta]

Well put . Agreed about the immigration numbers. Cut immigration in half or even 75% , cut the red tape, years long approval times for housing developments and onerous expenses developers are saddled with and we may end up with something better. Not sure if the measures New Zealand have taken will be helping their housing affordability but they are making an attempt at cutting back on foreign buyers spoiling their housing market.

New Zealand bans sales of homes to foreigners

The move is aimed at cooling house prices and making properties more affordable to New Zealanders.

www.bbc.com

There will be millions of people from all over the planet wanting to move to Canada over the next decade. Apart from our fucked up housing situation, Canada ranks well above most 3rd world countires as a desirable place to live . Though unaffordable housing is changing that rapidly. Where the fuck are we going to put them all ? My kids cannot afford a house ( and most people under 30 ) so why should we be making real estate attractive to foreign buyers.? Maybe Trudeau should think about that the next time he imports another 25,000 refugees on top of the other 400,000. We need to shut the door.

Build more hospitals. keep our good doctors and nurses.