Real Estate

Toronto rent is skyrocketing

  • Last Updated:
  • Feb 18th, 2018 7:13 pm
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[OP]
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Dec 23, 2010
1124 posts
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Moon

Toronto rent is skyrocketing

http://www.cbc.ca/news/canada/toronto/t ... -1.4529133

Toronto rent control protected rents are literally 47% lower than asking price rents. Since the vacancy rate is so low every landlord I know is simply assuming the 10% year over year growth, subtracting an assumed 1.5% year over year allowed increase and thus pricing the unit with an 8.5% year over year cost UPFRONT to take possession. Despite the insane prices vacancy rate is STILL sub 1%.

Renters I thought one of the 'advantages' of renting was flexibility? Are you willing to pay a 47% rent increase for this flexibility? I'm assuming that since the rent control scheme didn't bring affordable rents the next step is to seize private property and give it away to the poor Soviet style? That'll definitely have those builders pumping out new residences in no time!
164 replies
Penalty Box
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Aug 11, 2005
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This is good news, and will be a large part of the Wynne campaign to continue to serve Ontarians by making rent controls stricter and tighter.
google NotDoug
[OP]
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Dec 23, 2010
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Moon
Luckyinfil wrote:
Feb 12th, 2018 11:10 am
This is good news, and will be a large part of the Wynne campaign to continue to serve Ontarians by making rent controls stricter and tighter.
Absolutely Face With Tears Of Joy so will the liberals seize land now? Or is price fixing the next step? I'm just curious which one as depending on her decision Toronto may resemble Detroit or Venezuela. Lets legislate homes to cost $10 a month. Easy fix with no flaws at all. What can go wrong?
Penalty Box
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Aug 11, 2005
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There's lot's of things Wynne can do. The only thing this confirms is another majority for her.
google NotDoug
Sr. Member
Feb 23, 2009
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Oshawa
Rents have to go up.
Lots of would be landlords are cash flow negative and need to cover RE that they over-paid for.
[OP]
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Dec 23, 2010
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Moon
Luckyinfil wrote:
Feb 12th, 2018 11:18 am
There's lot's of things Wynne can do. The only thing this confirms is another majority for her.
Yeah I hear skyrocketing rents are incredibly popular among the people. Thanks to Wynne new landlords can now afford hot tubs with all the money they making.
Deal Fanatic
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Jun 26, 2005
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Toronto
Many now rent because they cannot afford to buy. Not because of flexibility anymore.

"Athanasiu points to the report stating that 47 per cent of Toronto renters are spending more than 30 per cent of their income on housing, a rule of thumb usually touted as the barometer for affordability. "

What about the landlord's cost of running the business? With the higher condo prices, increased mortgage rate, property tax, increased maintenance fees, many are running a negative monthly cash flow at their current rental rate.

Now our % increase is capped , how's landlords supposed to continue to support this?

Again same story , less landlords less supply, higher rent in the end.
Penalty Box
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Aug 11, 2005
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Applesmack wrote:
Feb 12th, 2018 11:22 am
Yeah I hear skyrocketing rents are incredibly popular among the people. Thanks to Wynne new landlords can now afford hot tubs with all the money they making.
Looks like more taxes are needed then from all those profits :)
google NotDoug
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Feb 22, 2011
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Toronto
Luckyinfil wrote:
Feb 12th, 2018 11:18 am
There's lot's of things Wynne can do. The only thing this confirms is another majority for her.
Like what?
Deal Addict
Feb 22, 2011
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Luckyinfil wrote:
Feb 12th, 2018 11:24 am
Looks like more taxes are needed then from all those profits :)
That would reduce supply further and make the problem worse lol
[OP]
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Dec 23, 2010
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Moon
Luckyinfil wrote:
Feb 12th, 2018 11:24 am
Looks like more taxes are needed then from all those profits :)
LOL do it. What can go wrong?
Penalty Box
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Aug 11, 2005
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rjg4235 wrote:
Feb 12th, 2018 11:25 am
That would reduce supply further and make the problem worse lol
How does it reduce supply? Are they going to physically remove a condo unit from the building? If 1 residence gets removed from the rental supply, demand also goes down by 1 as someone will buy it to live in. lmfao..
google NotDoug
[OP]
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Dec 23, 2010
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Moon
Luckyinfil wrote:
Feb 12th, 2018 11:26 am
How does it reduce supply? Are they going to physically remove a condo unit from the building? If 1 residence gets removed from the rental supply, demand also goes down by 1 as someone will buy it to live in. lmfao..
Landlords will take that tax and simply pass it right onto renters. All existing landlords will also apply to the LTB to have that new expense passed on and will certainly win.

All the while builders will be even more discouraged to build new rental units constricting supply even more.
Penalty Box
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Aug 11, 2005
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Applesmack wrote:
Feb 12th, 2018 11:28 am
Landlords will take that tax and simply pass it right onto renters. All existing landlords will also apply to the LTB to have that new expense passed on and will certainly win.

All the while builders will be even more discouraged to build new rental units constricting supply even more.
The Wynne government has excellent foresight and planning. Rent increases are capped in case you didn't know :).
google NotDoug
[OP]
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Dec 23, 2010
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Moon
Luckyinfil wrote:
Feb 12th, 2018 11:30 am
The Wynne government has excellent foresight and planning. Rent increases are capped in case you didn't know :).
UNLESS landlord incurs new expenses. They can then apply to the LTB to pass on those expenses.

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