Real Estate

Five reasons not to buy a Toronto condo

  • Last Updated:
  • Apr 30th, 2018 9:27 am
[OP]
Deal Fanatic
Feb 22, 2011
5073 posts
4691 upvotes
Toronto

Five reasons not to buy a Toronto condo

Great Globe article on why you shouldn't buy a condo in Toronto;
https://www.theglobeandmail.com/globe-i ... le8440509/

1) Sales of new and existing condos are weakening
2) Inventory of unsold condos is now rising rapidly
3) There is an unprecedented supply of new condos in the pipeline, with a record number of units set to complete in 2013
4) Population growth is slowing
5) Condo prices are now falling


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From 2013
73 replies
Newbie
Mar 8, 2017
91 posts
71 upvotes
rjg4235 wrote:
Jan 12th, 2018 4:29 pm
Great Globe article on why you shouldn't buy a condo in Toronto;
https://www.theglobeandmail.com/globe-i ... le8440509/

1) Sales of new and existing condos are weakening
2) Inventory of unsold condos is now rising rapidly
3) There is an unprecedented supply of new condos in the pipeline, with a record number of units set to complete in 2013
4) Population growth is slowing
5) Condo prices are now falling


.
.
.
From 2013
Oh I remember all the fear over building of too many condos and the comparison to the crash of 89. And look where we are today.
Newbie
Mar 8, 2017
91 posts
71 upvotes
rjg4235 wrote:
Jan 12th, 2018 4:29 pm
Great Globe article on why you shouldn't buy a condo in Toronto;
https://www.theglobeandmail.com/globe-i ... le8440509/

1) Sales of new and existing condos are weakening
2) Inventory of unsold condos is now rising rapidly
3) There is an unprecedented supply of new condos in the pipeline, with a record number of units set to complete in 2013
4) Population growth is slowing
5) Condo prices are now falling


.
.
.
From 2013
Oh I remember all the fear over building of too many condos and the comparison to the crash of 89. And look where we are today.
Deal Guru
Aug 2, 2010
12906 posts
3226 upvotes
Here 'n There
6. You have no control who lives above, below or on either side of you
7. Most condo's are shoddily built and the condo unit owners are left holding the bag for repairs.
8. Most condo boards are run by inept people and are rife with conflicts of interest
9. Many condo unit owners are airbnb-ing their condos even though it is not allowed
10. There is no control over condo fees. They just keep going up and up.
11. All glass condos (no longer allowed due to be approved due to a change in the OBC) are a ticking time-bomb because the glass degrades and will have to be replaced in 15-25 years.
12. There is really no peace in condo life.
13. ?
Deal Addict
Jul 7, 2013
1037 posts
560 upvotes
North York
This is why we should all deserve to live in detached houses /s
Deal Fanatic
May 31, 2007
5000 posts
2110 upvotes
eonibm wrote:
Jan 12th, 2018 4:59 pm
6. You have no control who lives above, below or on either side of you
7. Most condo's are shoddily built and the condo unit owners are left holding the bag for repairs.
8. Most condo boards are run by inept people and are rife with conflicts of interest
9. Many condo unit owners are airbnb-ing their condos even though it is not allowed
10. There is no control over condo fees. They just keep going up and up.
11. All glass condos (no longer allowed due to be approved due to a change in the OBC) are a ticking time-bomb because the glass degrades and will have to be replaced in 15-25 years.
12. There is really no peace in condo life.
13. ?
13. Firealarms all the time, elevator doesn't work in fire alarm. Ever walked up more than 10 flight of stairs? If you're over 40, you might have a heart attack.
14. You hear and smell all neighbour noise. Fights, parties, air bnb, marijauana, cigarettes, dogs barking, awful.
15. Condo boards directors with big egos and agendas, fighting against each other, victim is the payer of maintenance fee.
Deal Fanatic
May 31, 2007
5000 posts
2110 upvotes
rjg4235 wrote:
Jan 12th, 2018 4:29 pm
Great Globe article on why you shouldn't buy a condo in Toronto;
https://www.theglobeandmail.com/globe-i ... le8440509/

1) Sales of new and existing condos are weakening
2) Inventory of unsold condos is now rising rapidly
3) There is an unprecedented supply of new condos in the pipeline, with a record number of units set to complete in 2013
4) Population growth is slowing
5) Condo prices are now falling


.
.
.
From 2013
Yea and condo prices practically went no where from 2012-2015/16 when detach was just hitting a double. Even the stock market was taking off.

So it was a reasonable call by the Globe and proved correct until for 2-3 years. Until that time, It was only the recent and unexpected run up of condos where we heard so many owners come out out of the woods after yeas of underperforming claiming some sort of victory, like beating their chest. And the 20%+ increase still doesn't make sense, since supply is elastic and most condos are bought by investors and run cash flow negative. So this run up was caused by speculative demand, FOMO and low interest rate.

Dont expect this to last.

At least with detach, you can say they are not building a lot of them so supply can be limited. And you dont have to smell your neighbours, or be abused by air bnb parties.
Newbie
Nov 9, 2017
22 posts
10 upvotes
And those who buy a few units in 2013 now are all millionaire!
[OP]
Deal Fanatic
Feb 22, 2011
5073 posts
4691 upvotes
Toronto
Jungle wrote:
Jan 12th, 2018 6:46 pm
Yea and condo prices practically went no where from 2012-2015/16 when detach was just hitting a double. Even the stock market was taking off.

So it was a reasonable call by the Globe and proved correct until for 2-3 years. Until that time, It was only the recent and unexpected run up of condos where we heard so many owners come out out of the woods after yeas of underperforming claiming some sort of victory, like beating their chest. And the 20%+ increase still doesn't make sense, since supply is elastic and most condos are bought by investors and run cash flow negative. So this run up was caused by speculative demand, FOMO and low interest rate.

Dont expect this to last.

At least with detach, you can say they are not building a lot of them so supply can be limited. And you dont have to smell your neighbours, or be abused by air bnb parties.
You're missing the point. The reason I brought up this article is because sometimes you can have perfectly reasonable and valid concerns and it means nothing, the market doesn't care. If people want to own their home they will, they don't care about these things. Anyone who listened to this FUDD missed out on hundreds of thousands to millions in returns.

People on here spread a ton of fear and doubt. I am just offering a different opinion. Housing is by far the biggest expense in most people's lives. If you want to roll the dice and risk renting then so be it. People should see another opinion though which is that waiting can be a huge mistake. You can lock in the single biggest expense in your life at today's prices and not risk a 50-100% rent increase if you have to move. People who bought 5 years ago are probably paying in the $1200-$1500 range to live in these condos. To rent one now would be $2200 or more and you have no equity and can be evicted at the end of any lease with only 60 days notice and no compensation.
Sr. Member
Sep 19, 2012
529 posts
358 upvotes
Calgary
rjg4235 wrote:
Jan 12th, 2018 8:18 pm
People on here spread a ton of fear and doubt. I am just offering a different opinion. Housing is by far the biggest expense in most people's lives. If you want to roll the dice and risk renting then so be it. People should see another opinion though which is that waiting can be a huge mistake. You can lock in the single biggest expense in your life at today's prices and not risk a 50-100% rent increase if you have to move. People who bought 5 years ago are probably paying in the $1200-$1500 range to live in these condos. To rent one now would be $2200 or more and you have no equity and can be evicted at the end of any lease with only 60 days notice and no compensation.
Your "different opinion" is in the vast majority - 70% of Canadians own their home. Folks like me get a stink-eye because I suggest renting isn't "lighting money on fire" and (gasp!) renting may actually work out better than owning. If anything, I say it is the pro-ownership crowd that is spreading fear and doubt ("you can't live in your investment portfolio"; "you're paying someone else's mortgage"; "you can be evicted at will"; "real estate always goes up in value"; "waiting to buy is a huge mistake" ...).
Member
Jul 8, 2017
282 posts
228 upvotes
NA
xblackrainbow wrote:
Jan 12th, 2018 6:14 pm
This is why we should all deserve to live in detached houses /s
Go ask 10 millennials regarding what type of property they wanted to own, I am sure 8 will come back with condos being the bottom in their list. Most people who bought condos are not because they like them but because the detach dream are really so out of reach for them within the GTA.
Deal Guru
Aug 2, 2010
12906 posts
3226 upvotes
Here 'n There
Dann384476 wrote:
Jan 12th, 2018 6:59 pm
And those who buy a few units in 2013 now are all millionaire!
Fake news.

Not when you subtract their mortgage and add the ridiculous condo fees each month, not to mention your net worth is tied up in a condo which you need to live in in order to have a place to stay so you have no access to you dubious new found 'wealth'.

Also, let's not be naive and assume the real estate market cannot drop. It has many many times in the past and bankrupted thousands. Of course most people on here are too young to have witnessed it or too baked in the present to bother researching the past.
Last edited by eonibm on Jan 13th, 2018 12:41 pm, edited 1 time in total.
Deal Guru
Aug 2, 2010
12906 posts
3226 upvotes
Here 'n There
Silver1234 wrote:
Jan 13th, 2018 10:11 am
Go ask 10 millennials regarding what type of property they wanted to own, I am sure 8 will come back with condos being the bottom in their list. Most people who bought condos are not because they like them but because the detach dream are really so out of reach for them within the GTA.
+1,000,000

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