But I assume you sold because you went long your principle residence and needed the funds for that...hence you will get to ride that up!JayLove06 wrote: ↑ How about those that sold in this market. I sadly had to and while I got a good deal given the circumstances, I would have loved to sell later. Oh well. 2021 should be a good run for condos. Some very good deals were had by many buyers especially those buying bachelors and smaller 1 bedrooms.
SFHs will continue to skyrocket upwards, so I think he is hedged.cartfan123 wrote: ↑ But I assume you sold because you went long your principle residence and needed the funds for that...hence you will get to ride that up!
You said you were going to hold only a few weeks ago? What changed?JayLove06 wrote: ↑ How about those that sold in this market. I sadly had to and while I got a good deal given the circumstances, I would have loved to sell later. Oh well. 2021 should be a good run for condos. Some very good deals were had by many buyers especially those buying bachelors and smaller 1 bedrooms.
Notice how nobody can even agree if prices went down or not.DisneyKruze wrote: ↑ Well, I have been telling all my tenants for the past 6 months to buy a RE property if they've been considering it. With interest rates as low as it can be and investors bailing out right and left, now is the time to enter the market. It won't last long.
Well the answer to this is more nuanced then a simple up or down conclusion. Median price is misleading because the mix of units that sold may have changed, I never paid attention to that statistic even when the market was hot. When I was doing my analysis of prices, it was really down to the individual building to make an assessment, and the type of unit. Some fell more than others and took big hits, others went down but only experienced a minor dip. Why does it have to be a simple answer?
That’s an extremely hot deal given housing is the biggest expense in life. Some of the “hot deals” on this site are like saving 50% on a 3 year old piece of technology.ozzie16 wrote: ↑I don't think I got a deal per se buying. I wasn't shopping purely with a deal in mind. I paid maybe 10-15% less than the peak price for a 2 bedroom unit that met my requirements, which is not really a "hot deal", but I ended up with something I love and it met my entire list of wants. The seller in my case actually lost money from their mid-2017 purchase price once LTT/commissions are accounted for. I saw a lot of value from having time to shop and look at tons of units instead of having to settle for something less than ideal.
I found the biggest discounts were on units I wouldn't have wanted to live in personally and that does me no good.
Hmm, I still feel like it’s kind of a Canadian Tire like deal where the deal is based off of an inflated price. I still think the run up in the last 2 years was overdone, and the recent correction seemed to undo a lot of the 2018/2019 gains. So from that perspective I don’t think I got a hot deal, but I got a fair deal as I wouldn’t have considered buying at the market peak earlier this year. But theoretically if I compare buying at the peak to now I’ve saved myself well over $100,000.sircheersa wrote: ↑ That’s an extremely hot deal given housing is the biggest expense in life. Some of the “hot deals” on this site are like saving 50% on a 3 year old piece of technology.
No one really knows for sure. Personally I think the cost of building is a big driver. Taxes and development fees are now over $100k per unit. Land is more expensive. Trade labour is more expensive. Raw materials are more expensive. Transport is more expensive. There are real systemic changes that have pushed up prices of building. Many can't afford new so now they get resale.ozzie16 wrote: ↑ Hmm, I still feel like it’s kind of a Canadian Tire like deal where the deal is based off of an inflated price. I still think the run up in the last 2 years was overdone, and the recent correction seemed to undo a lot of the 2018/2019 gains. So from that perspective I don’t think I got a hot deal, but I got a fair deal as I wouldn’t have considered buying at the market peak earlier this year. But theoretically if I compare buying at the peak to now I’ve saved myself well over $100,000.
I’m just trying to temper my expectations moving forward - if it’s up from here it’s all gravy, I bought factoring in prices staying flat or even weakening in the next 5 years. Right now in cash flow terms I will be paying the same as renting but a ton of my mortgage payments go to equity. The after tax break even point on my down payment funds is more than I can realistically achieve in a passive investment vehicle. So it all made sense to me to buy.
I agree these are all factors in favour of prices going upwards. And the run on any type of assets. If people think the run up in RE has been bad, you should see the market for certain other collectables. I have a few bottles of whisky that I bought years ago in Japan and by happenstance never opened them and they are now worth thousands each. Pokemon cards that I had written off as worthless years ago are now worth a small fortune apparently. Jordan sneakers sell for multiples of what they did a year or two ago. Rolex watches that used to sell for discounts are now selling for 1.5-2X MSRP. For truly rare watches, they've been doubling at successive auctions every few months. And the list goes on. The thesis right now is that cash is losing its value rapidly and anything tangible is being bid up.sircheersa wrote: ↑ No one really knows for sure. Personally I think the cost of building is a big driver. Taxes and development fees are now over $100k per unit. Land is more expensive. Trade labour is more expensive. Raw materials are more expensive. Transport is more expensive. There are real systemic changes that have pushed up prices of building. Many can't afford new so now they get resale.
That's what happens when currency doesn't have intrinsic value, they print too much to save themselves. Same amount of assets, a lot more dollars existing. The big piece most people miss is that home ownership rates can drop. If 50% of Toronto is owner occupied in 20 years it could be 30%.ozzie16 wrote: ↑
I agree these are all factors in favour of prices going upwards. And the run on any type of assets. If people think the run up in RE has been bad, you should see the market for certain other collectables. I have a few bottles of whisky that I bought years ago in Japan and by happenstance never opened them and they are now worth thousands each. Pokemon cards that I had written off as worthless years ago are now worth a small fortune apparently. Jordan sneakers sell for multiples of what they did a year or two ago. Rolex watches that used to sell for discounts are now selling for 1.5-2X MSRP. For truly rare watches, they've been doubling at successive auctions every few months. And the list goes on. The thesis right now is that cash is losing its value rapidly and anything tangible is being bid up.
I would have thought incomes not increasing at the same rate as RE prices would hamper RE price growth, coupled with the stress test. I've been proven to be dead wrong about it. There's going to be a growing separation of wealth between the owner class and everyone else. Wasn't quite like that in the 80s - my parents arrived dirt poor making minimum wage, going between sketchy rental units in Agincourt, and were able to buy a SFH in Mississauga for 80K in the 80s.
