Real Estate

GTA house prices, will be going even higher?

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Sr. Member
Oct 18, 2013
594 posts
184 upvotes
Brampton

GTA house prices, will be going even higher?

so since the 15% tax for Vancouver area. NOW Toronto and cities nearby will see even more price increases for houses. since all the money will be coming this way now.
I can only imagine how brampton will be now. 900k for a 4 bedroom house, a million in the next few months? damn this is crazy
179 replies
Member
Sep 1, 2013
403 posts
97 upvotes
GVA market is tiny relative to the GTA market (both in population and the number of homes sold), so yes there will be additional demand redirected from GVA, but it won't make GTA pop like it did GVA.

A large majority of GTA buyers actually move into the properties.

I also don't see any such tax coming to GTA. Toronto already has the double LTT, and it hasn't made much dent other than having the suburbs absorb the surplus.
Member
Jan 10, 2016
328 posts
52 upvotes
Markham, ON
Can't these guys invest their money more productively? I mean, what does a house produce for the society? They bought the house and just let it sit idle.
Deal Expert
User avatar
Oct 26, 2003
39338 posts
6341 upvotes
Winnipeg
ValueInvestor wrote: Can't these guys invest their money more productively? I mean, what does a house produce for the society? They bought the house and just let it sit idle.
you can invest in RE, it is a thing
Sr. Member
Oct 18, 2013
594 posts
184 upvotes
Brampton
ValueInvestor wrote: Can't these guys invest their money more productively? I mean, what does a house produce for the society? They bought the house and just let it sit idle.
lol no one really cares about society everyone want money
Deal Guru
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Sep 8, 2007
10978 posts
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Way Out of GTA
ValueInvestor wrote: Can't these guys invest their money more productively? I mean, what does a house produce for the society? They bought the house and just let it sit idle.
With a name like Valueinvestor I would assume you might understand the effects of massive global liquidity floods such as mispricing of risk, asset bubbles, too much capital chasing too few opportunities and keeping returns low. When global banks have taken to zero returns on deposits, whereas RE has been producing positive returns. Even global stock markets stalled until the Fed played ball and shelved the whole "increasing rates" thing.

Also the 15% tax appears that it will just cause a few little planning moves to avoid this tax anyways like registering via a Corp.
Deal Guru
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Sep 8, 2007
10978 posts
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Way Out of GTA
Bluemist1967 wrote: lol no one really cares about society everyone want money
And you drive an S class Mercedes why again? Because you care about the poor and society?
Temp. Banned
Aug 7, 2011
6623 posts
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Vaughan
divx wrote: you can invest in RE, it is a thing
Color me shocked!
Deal Fanatic
Dec 5, 2009
5768 posts
3612 upvotes
Data shows about 5% of GVA sales are to foreign buyers. On last years record breaking sales (40k) that's about 2000 sales.

Let's say that half of those now decide to invest in GTA, where there were over 100k sales last year. Or a difference of about 1%.

I doubt it will make any material difference at all.
Deal Fanatic
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Dec 27, 2009
7941 posts
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Victoria, BC
fdl wrote: Data shows about 5% of GVA sales are to foreign buyers. On last years record breaking sales (40k) that's about 2000 sales.

Let's say that half of those now decide to invest in GTA, where there were over 100k sales last year. Or a difference of about 1%.

I doubt it will make any material difference at all.
That data is f*cked. Ask anyone who lives in that region. It is way more than what the data is saying. Even the realtors admit that.
Deal Fanatic
Dec 5, 2009
5768 posts
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Chickinvic wrote: That data is f*cked. Ask anyone who lives in that region. It is way more than what the data is saying. Even the realtors admit that.
how do they know that though? It's anecdotal. I also think people confuse Chinese immigrants with foreigners. People who buy a place to live in are not the problem this tax is meant to address.
Penalty Box
Aug 11, 2005
4175 posts
1432 upvotes
fdl wrote: Data shows about 5% of GVA sales are to foreign buyers. On last years record breaking sales (40k) that's about 2000 sales.

Let's say that half of those now decide to invest in GTA, where there were over 100k sales last year. Or a difference of about 1%.

I doubt it will make any material difference at all.
What if they all invest in Markham because that is the next New York/Sydney/London, etc.
Sr. Member
May 6, 2015
735 posts
220 upvotes
Unionville, ON
Chickinvic wrote: That data is f*cked. Ask anyone who lives in that region. It is way more than what the data is saying. Even the realtors admit that.
Agreed. Not to mention how some often use "family" members to purchase on their behalf. At a conservative estimate, i'd put the figure at least 30% of the purchasers are foreigners or people without a PR (i.e. students, work visa employees)
Deal Expert
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Oct 26, 2003
39338 posts
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Winnipeg
squadz wrote: Color me shocked!
dunno how you juggle between pokemon and wiiU
Deal Fanatic
Dec 5, 2009
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Luckyinfil wrote: What if they all invest in Markham because that is the next New York/Sydney/London, etc.
Image
Temp. Banned
Aug 7, 2011
6623 posts
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Vaughan
divx wrote: dunno how you juggle between pokemon and wiiU
Well, I didn't buy a million dollar home, so I can afford to stay at home and catch up on video games instead of working 100 hours a week to pay for my mansion.

My life is so difficult that the hardest part of my day is deciding what form of entertainment I want to use.
Deal Addict
Dec 9, 2006
1274 posts
131 upvotes
Bluemist1967 wrote: so since the 15% tax for Vancouver area. NOW Toronto and cities nearby will see even more price increases for houses. since all the money will be coming this way now.
I can only imagine how brampton will be now. 900k for a 4 bedroom house, a million in the next few months? damn this is crazy
Already seeing 1m+ in many parts of Brampton the last year
Deal Expert
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Oct 26, 2003
39338 posts
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Winnipeg
squadz wrote: Well, I didn't buy a million dollar home, so I can afford to stay at home and catch up on video games instead of working 100 hours a week to pay for my mansion.

My life is so difficult that the hardest part of my day is deciding what form of entertainment I want to use.
protip, play pokemon while playing wiiU
Temp. Banned
Aug 7, 2011
6623 posts
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Vaughan
divx wrote: protip, play pokemon while playing wiiU
Interesting. Mind blown.

I can insert comic reading too into that equation.
Deal Guru
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Feb 2, 2014
11231 posts
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Toronto
Why does everybody on RFD suspect that house prices have increased due to sneaky non-resident Chinese investors? Has anybody seen the projected population growth over within the next 20 years!?!
Kevin Somnauth, CFA
Principal Broker/Owner - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative

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