Real Estate

Did we just hit the peak of the Toronto RE bubble?

  • Last Updated:
  • Sep 25th, 2017 10:20 pm
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Deal Addict
Nov 24, 2013
4053 posts
1102 upvotes
Kingston, ON
cartfan123 wrote:
Sep 13th, 2017 11:49 am
http://tours.realtytours.ca/166-norton- ... th-york-n/

What is going on with that garage? Looks like its a crawl space. The house beside has a slight ramp down and hence a full size door. Strange.

But that price tells you that while prices might be down, in no way has it crashed.
Guessing that garage "door" is for show and doesn't open? Space in the finished basement instead of being filled? That's the strangest setup I've seen.

House and yard are nicely finished though.
Sr. Member
Oct 21, 2014
627 posts
407 upvotes
Burlington, ON
jdu0ng wrote:
Sep 13th, 2017 12:52 pm
... from what I read:

"In the census metro area for Toronto, Moody’s said it can see average annualized price growth of 10.7 per cent from the third quarter of 2017 to second quarter of 2018. It sees an another 8.5 per cent of annualized growth from third quarter of 2018 to the second quarter of 2019."

We won't see 20-30% growth like we did previously, but 8-10% growth I would say is healthy.
I hope it is less than 8-10% growth.. that is insane. If the trend holds for three years on a 700k home that is

Year 0: 700k
Year 1: 770k
Year 2: 847k
Year 3: 931.7k

That's a lot of price growth. In that type of environment the only way my kids will ever own is to inherit from me...
Member
Dec 4, 2004
483 posts
203 upvotes
GTA
Mike15 wrote:
Sep 13th, 2017 12:57 pm
Guessing that garage "door" is for show and doesn't open? Space in the finished basement instead of being filled? That's the strangest setup I've seen.

House and yard are nicely finished though.
I don't think the garage opening is as low as it looks. The picture may be stretched horizontally to make the house look bigger. If you compare the garage door to the front door (which both appear to be on the same wall plane), the garage door is a little bit taller. Assuming a standard door height of 6' 8", then the garage door is about right at 7'.
Deal Addict
Aug 19, 2002
2756 posts
138 upvotes
imperial1 wrote:
Sep 13th, 2017 9:48 am
I bought one of my condo's in Sept 2015 for $167,900. Sold it couple weeks ago for $292,000. 74% increase in two years - $125K profit. This is in Scarborough.
Condo fees? Land Transfer Tax? Real estate agent? any mortgage interest? If not your primary residence, income tax? While you did make a profit, saying $125K profit is not true.
Sr. Member
Oct 21, 2014
627 posts
407 upvotes
Burlington, ON
goob3r wrote:
Sep 13th, 2017 1:51 pm
Condo fees? Land Transfer Tax? Real estate agent? any mortgage interest? If not your primary residence, income tax? While you did make a profit, saying $125K profit is not true.
I read that and was thinking that $292,000 figure was net
Jr. Member
Mar 10, 2009
175 posts
149 upvotes
Toronto
goob3r wrote:
Sep 13th, 2017 1:51 pm
Condo fees? Land Transfer Tax? Real estate agent? any mortgage interest? If not your primary residence, income tax? While you did make a profit, saying $125K profit is not true.
What? That was the pure profit made from my buying price in 2015 and my selling price a few weeks ago. That's NOT including the amount I paid off my mortgage in those 2 years which would mean my profit was actually north of $150K. If you want to include condo fees then you might as well include the equity from paying off my mortgage during that time. No land transfer tax as I was a first time home buyer at the time. Real Estate Agent fees was much cheaper than normal as he's a friend of mine and included staging / photography / 3D virtual tour. Yes there was mortgage interest but my rate is pretty damn good as I was on Variable plus I work for the bank so I get staff rate (My rate was 1.8% in 2015). That was also my primary residence. My profit of $125K *IS* true.
Deal Addict
Feb 9, 2009
4197 posts
1925 upvotes
Gungnir wrote:
Sep 13th, 2017 1:03 pm
I hope it is less than 8-10% growth.. that is insane. If the trend holds for three years on a 700k home that is

Year 0: 700k
Year 1: 770k
Year 2: 847k
Year 3: 931.7k

That's a lot of price growth. In that type of environment the only way my kids will ever own is to inherit from me...
I already said this that homes will eventually have to be inherited. It's like other older cities where properties are passed down from generation to generation cause they know they can never afford otherwise. Toronto will go down this path. Remember your kids have to compete with other already wealthier people in the area and wealthy international buyers who move/invest here ... no offense but not a prayer chance now they will probably ever afford a detach in toronto without parents help/self made wealth..
Deal Addict
Nov 24, 2013
4053 posts
1102 upvotes
Kingston, ON
_dc_ wrote:
Sep 13th, 2017 1:34 pm
I don't think the garage opening is as low as it looks. The picture may be stretched horizontally to make the house look bigger. If you compare the garage door to the front door (which both appear to be on the same wall plane), the garage door is a little bit taller. Assuming a standard door height of 6' 8", then the garage door is about right at 7'.
Aah... stretched photo. That would make more sense.

Last Google street view of the address is just a blue construction fence and a portapotty, so that didn't solve the mystery.
Sr. Member
Oct 21, 2014
627 posts
407 upvotes
Burlington, ON
Sanyo wrote:
Sep 13th, 2017 2:12 pm
I already said this that homes will eventually have to be inherited. It's like other older cities where properties are passed down from generation to generation cause they know they can never afford otherwise. Toronto will go down this path. Remember your kids have to compete with other already wealthier people in the area and wealthy international buyers who move/invest here ... no offense but not a prayer chance now they will probably ever afford a detach in toronto without parents help/self made wealth..
I can put a shed on my property and run power and plumbing to it.. does that count as a detach? :)
Deal Addict
Feb 9, 2009
4197 posts
1925 upvotes
Gungnir wrote:
Sep 13th, 2017 2:26 pm
I can put a shed on my property and run power and plumbing to it.. does that count as a detach? :)
That's a good idea you should do it
Deal Addict
Aug 19, 2002
2756 posts
138 upvotes
imperial1 wrote:
Sep 13th, 2017 2:04 pm
What? That was the pure profit made from my buying price in 2015 and my selling price a few weeks ago. That's NOT including the amount I paid off my mortgage in those 2 years which would mean my profit was actually north of $150K. If you want to include condo fees then you might as well include the equity from paying off my mortgage during that time. No land transfer tax as I was a first time home buyer at the time. Real Estate Agent fees was much cheaper than normal as he's a friend of mine and included staging / photography / 3D virtual tour. Yes there was mortgage interest but my rate is pretty damn good as I was on Variable plus I work for the bank so I get staff rate (My rate was 1.8% in 2015). That was also my primary residence. My profit of $125K *IS* true.
You bought for $167.9K, sold for $292K. That's $124.1k. Is $292k after all fees?
Member
May 9, 2017
230 posts
221 upvotes
goob3r wrote:
Sep 13th, 2017 2:31 pm
You bought for $167.9K, sold for $292K. That's $124.1k. Is $292k after all fees?
Who cares? @imperial1 made some good money, why do you need a full accounting of the transaction?
Deal Addict
Sep 12, 2006
1091 posts
130 upvotes
Gungnir wrote:
Sep 13th, 2017 1:03 pm
That's a lot of price growth. In that type of environment the only way my kids will ever own is to inherit from me...
Can argue that we're already in this environment. From my circle of friends, anyone under 30 that bought, had family help.
Deal Addict
Aug 19, 2002
2756 posts
138 upvotes
NotRobot wrote:
Sep 13th, 2017 2:36 pm
Who cares? @imperial1 made some good money, why do you need a full accounting of the transaction?
Because I read the numbers, and they didn't make sense, so I asked a question. I couldn't care less how much he made.
Jr. Member
Mar 10, 2009
175 posts
149 upvotes
Toronto
goob3r wrote:
Sep 13th, 2017 2:31 pm
You bought for $167.9K, sold for $292K. That's $124.1k. Is $292k after all fees?
If you include realtor / lawyer and mortgage discharge fee then I made ~$110K in two years. Is that better for you? Do you feel better now?

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