Real Estate

why people from GTA are pouring in London and buying

  • Last Updated:
  • Aug 15th, 2017 9:14 pm
49 replies
Newbie
Jul 16, 2013
26 posts
1 upvote
Toronto
Prices are affordable compared to GTA...and rents are going up which makes it attractive for investors.
Newbie
Sep 8, 2013
56 posts
10 upvotes
A number of reasons but I think the 2 main ones are:

1) people are still selling their properties in gta (even if at lower prices which are still quite high compared to London) and if they are retiring, they have to live somewhere so they choose a place that has some city amenities, low prices and not really far from the gta
2) low prices make it a good place to buy rental properties in particular with a large college/university population

Having said that, the GTA slow down might still impact London as the sales dip in GTA is still relatively new
Sr. Member
Mar 27, 2015
632 posts
152 upvotes
Thornhill, ON
A friend's agent told them to be careful because London has a serious problem with poverty and homelessness, moreso than other cities of the same size. We've never heard of this before, is it true?
Newbie
Sep 8, 2013
56 posts
10 upvotes
icantfigureoutausername wrote:
Jul 8th, 2017 3:06 pm
A friend's agent told them to be careful because London has a serious problem with poverty and homelessness, moreso than other cities of the same size. We've never heard of this before, is it true?
downtown area is pretty brutal for this but London has plenty of nice neighbourhoods that are mostly or completely isolate from these problems
Member
Jan 4, 2013
270 posts
38 upvotes
TORONTO
buying property is the safest investment in Canada!

London has the most beloved group of people in the world - overseas investors!

We should cancel the 15% tax to welcome the overseas investors back to Toronto!
mattdominic wrote:
Jul 8th, 2017 12:09 am
http://www.lfpress.com/2017/07/04/londo ... ue-to-boom

London home sales are still booming despite sales drop in GTA ..cant understand why can anyone explain ?

i saw a beautiful house listed for 280k and sold for 411k
Deal Addict
Jul 19, 2007
1188 posts
55 upvotes
The home prices are lucrative and I've contemplated buying a home in London, however, my dad says it's not worth it unless you rent to students. Non-student tenants are different than tenants you'll find in the GTA. His friend had several trouble tenants and ended up selling their downtown condo. There's a lot of homelessness since many people have lost their jobs as well overt prostitution and drug use in London, especially new and old parts of downtown. If an investor wants to make money, it's best to a pre-constructon condo in the GTA.

But if someone is really set on buying a home in London, it's best to buy a house or condo near Western or Fanshawe (ie. Oxford Street West or Oxford Street East) or anywhere within walking distance to a LTC bus stop and rent out to students, who are mostly from the GTA. Since Western and Fanshawe students get a free LTC bus pass included in their tuition, an investor can maximize their profits by searching and buying places near a LTC bus stop with a direct route to the university or college.
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Deal Addict
Dec 5, 2009
4349 posts
2134 upvotes
mattdominic wrote:
Jul 8th, 2017 12:09 am
http://www.lfpress.com/2017/07/04/londo ... ue-to-boom

London home sales are still booming despite sales drop in GTA ..cant understand why can anyone explain ?

i saw a beautiful house listed for 280k and sold for 411k
You claim people from GTA are "pouring into London" and post a link that says absolutely nothing about people from GTA moving to London or investing in London. So where is your evidence?

Secondly, this is the 3rd or 4th time you've posted in the last couple of months on the same topic of how hot London RE market is compared to Toronto, and asking why. Why do you keep asking the same question every few weeks?
[OP]
Jr. Member
Feb 16, 2017
148 posts
31 upvotes
fdl wrote:
Jul 9th, 2017 9:05 am
You claim people from GTA are "pouring into London" and post a link that says absolutely nothing about people from GTA moving to London or investing in London. So where is your evidence?

Secondly, this is the 3rd or 4th time you've posted in the last couple of months on the same topic of how hot London RE market is compared to Toronto, and asking why. Why do you keep asking the same question every few weeks?
Since you asked for evidence and got 5 up votes i am posting evidence below if you want more evidence let me know i can send u more links
http://pricerealestateteam.com/2017/01/ ... to-london/

why i keep asking same question is because market never remains same .. after all we are seeing now prices dropping in GTA or slow sales how many posts you have not came across on GTA market price drops and price raises ..if you don't want to respond please remain silent. You are behaving like you are the administrator of this forums and i am wasting space on your web server.

FYI all my posts about London sales are with proof of links .. i cant go and ask London press why you are posting same news again and again that prices are high ! it just the latest news all are following here and responding with their thoughts. So if you are searching for new issues better focus on that than trying to tell others what they are doing
Sr. Member
Mar 10, 2010
850 posts
90 upvotes
To be honest I don't know how much truth there is to this but I do have one anecdote to offer. I live in London and was talking to a neighbour who told me that the house next to them sold ~1 month ago to somebody from Toronto. They paid ~$460k for a house that was probably worth $380k. Anyway the neighbour was scratching their head trying to figure out how the math could possibly work out as the buyer is going to rent it out. I haven't checked lately but we figured they could probably get ~1800/mo for rent. Considering it takes 3 months rent just to equal the property taxes I'm not sure if this is a money maker either, and I'll let other people who do rentals pipe up if they want to, but I think it's nuts.
Sr. Member
Mar 10, 2010
850 posts
90 upvotes
One other anecdote in the other direction. When we bought our house ~6 years ago we looked at homes in a new development called Fox fields. At the time they were offering lot's of incentives like free finished basements, etc to try to sell, now 6 years later... they still haven't sold all of the units and just down the road (Richmond & Sunningdale) there's a wasteland of semi-constructed houses that have gone nowhere for ~3 years... so I'd take these london free press stories with a giant grain of salt...
Jr. Member
Oct 26, 2006
126 posts
6 upvotes
Markham
Clacker wrote:
Jul 12th, 2017 1:46 am
To be honest I don't know how much truth there is to this but I do have one anecdote to offer. I live in London and was talking to a neighbour who told me that the house next to them sold ~1 month ago to somebody from Toronto. They paid ~$460k for a house that was probably worth $380k. Anyway the neighbour was scratching their head trying to figure out how the math could possibly work out as the buyer is going to rent it out. I haven't checked lately but we figured they could probably get ~1800/mo for rent. Considering it takes 3 months rent just to equal the property taxes I'm not sure if this is a money maker either, and I'll let other people who do rentals pipe up if they want to, but I think it's nuts.
Hi

Just wanted to share that I purchased a property in London in June for investment purposes and was surprised myself at the amount of activity there. Several houses I looked at had 5 or more multiple offers...including the one I ended up getting. I ended up buying in the mid 200 (in North East London) and was pleased as it still cash flows....not a great deal...but it does. I was nervous at first, thinking I had overpaid, but several similar houses that listed after mine, sold for even more!

Talked to my agent yesterday who told me houses under the 300k range are still getting lots of activity....but not so much for the ones over 400k. Personally, I think 460k for a rental in London is nuts! One of the reasons I looked in London was BC of the price point....but at 460k...might as well look in GTA as that will be negatively cash flowing.

Anyway, just wanted to add that I have and continue to learn about London and think it's such a nice city with great potential.

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