Real Estate

GTA house prices, will be going even higher?

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  • Aug 22nd, 2017 7:03 pm
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[OP]
Sr. Member
Oct 18, 2013
532 posts
96 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
402 posts
94 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
313 posts
33 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
26811 posts
1671 upvotes
Winnipeg
ValueInvestor wrote:
Jul 26th, 2016 1:55 am
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
4930k/32gb/256gb ssd/8tb hdd/win10pro/msi 290
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[OP]
Sr. Member
Oct 18, 2013
532 posts
96 upvotes
Brampton
ValueInvestor wrote:
Jul 26th, 2016 1:55 am
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 Addict
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Sep 8, 2007
4713 posts
2737 upvotes
Way Out of GTA
ValueInvestor wrote:
Jul 26th, 2016 1:55 am
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 Addict
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Sep 8, 2007
4713 posts
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Way Out of GTA
Bluemist1967 wrote:
Jul 26th, 2016 2:29 am
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
980 upvotes
Vaughan
divx wrote:
Jul 26th, 2016 2:29 am
you can invest in RE, it is a thing
Color me shocked!
Deal Addict
Dec 5, 2009
4537 posts
2378 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 Addict
User avatar
Dec 27, 2009
3379 posts
1324 upvotes
Ottawa, ON
fdl wrote:
Jul 26th, 2016 9:10 am
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 Addict
Dec 5, 2009
4537 posts
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Chickinvic wrote:
Jul 26th, 2016 9:38 am
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
3390 posts
811 upvotes
fdl wrote:
Jul 26th, 2016 9:10 am
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
592 posts
136 upvotes
Unionville, ON
Chickinvic wrote:
Jul 26th, 2016 9:38 am
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 Addict
Dec 5, 2009
4537 posts
2378 upvotes
Luckyinfil wrote:
Jul 26th, 2016 10:22 am
What if they all invest in Markham because that is the next New York/Sydney/London, etc.
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