Real Estate

Coronavirus impact on Real Estate 2

  • Last Updated:
  • Nov 12th, 2020 11:35 am

Poll: Pick any

  • Total votes: 177. You have voted on this poll.
Panic sell condos
 
23
13%
Good time to buy condos
 
46
26%
Panic buy detached in suburbs
 
34
19%
We are all fcked from recession
 
19
11%
Do nothing , HODL
 
55
31%
[OP]
Temp. Banned
Apr 29, 2010
569 posts
939 upvotes
GTA

Coronavirus impact on Real Estate 2

Please continue discussing here
Last edited by lolbeast on Nov 1st, 2020 9:02 am, edited 1 time in total.
142 replies
Sr. Member
Oct 21, 2016
914 posts
676 upvotes
Where is the option for do nothing or simply hold what you own
Member
Nov 22, 2019
301 posts
258 upvotes
Welcome to the new thread fellow Bulls & Bears.
Deal Fanatic
User avatar
Sep 8, 2007
9037 posts
10358 upvotes
Way Out of GTA
Right now it’s 13-13 Bull vs bears.....it’s a close contest....who will win? The excitement, the suspense....
Moderator
User avatar
Sep 30, 2001
28611 posts
7807 upvotes
Toronto
Fair warning - start calling each other racists and this will be quickly shut down as well.
We're all in this together. Be kind and civil with one another
[OP]
Temp. Banned
Apr 29, 2010
569 posts
939 upvotes
GTA
Shaun80 wrote: Where is the option for do nothing or simply hold what you own
Added. Unfortunately this wiped out the current votes
Member
Nov 12, 2019
345 posts
547 upvotes
I don't like the use of "panic" in the poll.

The answer depends on how much you already hold. If you own 5 downtown condos, selling 1 to diversify could be very reasonable without being a "panic" sell. What makes holding real estate as investment more difficult than stocks is that most people don't hold sufficient quantity to really be able to reduce or increase risk as the situation demands. If you hold just 1 investment condo, you can't easily sell 1/5th and diversify.
[OP]
Temp. Banned
Apr 29, 2010
569 posts
939 upvotes
GTA
RaC1550 wrote: I don't like the use of "panic" in the poll.

The answer depends on how much you already hold. If you own 5 downtown condos, selling 1 to diversify could be very reasonable without being a "panic" sell. What makes holding real estate as investment more difficult than stocks is that most people don't hold sufficient quantity to really be able to reduce or increase risk as the situation demands. If you hold just 1 investment condo, you can't easily sell 1/5th and diversify.
In my opinion, doesnt matter how much you own. Selling something that just tanked 10-20% is definitely panic selling

If amazon tanks 20% and bezos unloads a stack, he’s panic selling in my opinion.
Member
Nov 12, 2019
345 posts
547 upvotes
lolbeast wrote: In my opinion, doesnt matter how much you own. Selling something that just tanked 10-20% is definitely panic selling

If amazon tanks 20% and bezos unloads a stack, he’s panic selling in my opinion.
Depends on the situation. It wouldn't be a panic sell if you analyzed the situation and determines that the asset is still overvalued even after a 20% drop based on changing circumstances. Those people who sold GE after the initial 20% drop certainly was correct. Not everything comes back up.
Deal Guru
Feb 29, 2008
14618 posts
10858 upvotes
I guess I missed all thefun. I see certain people still treating homes like they're stocks. "panic sell" is such a silly term in real estate.
Deal Fanatic
Mar 27, 2004
5571 posts
3451 upvotes
Toronto
low rise is hot af. everywhere. from Caledon to oshawa.

developers still releasing condos that sell.

don't see any panic at all.
Full-time Realtor
Sr. Member
Sep 7, 2018
968 posts
1008 upvotes
Massive immigration incoming and is going to fill the glut of high rise condos in the downtown core.
Sr. Member
Oct 21, 2016
914 posts
676 upvotes
oasis100 wrote: low rise is hot af. everywhere. from Caledon to oshawa.

developers still releasing condos that sell.

don't see any panic at all.
Resale condo market in the GTA sucks due to oversupply and lack of demand. Rental market for condos in the GTA sucks too , if your unit sits vacant for months on end and you are thousands of dollars cash flow negative each month I can see some investors panic selling. Without a tenant or piss poor monthly rent how long can some investors hold out before desperation kicks in to sell in a cold market. I have decreased my tenants rent in the core upon his request in April and I have a feeling when his lease is up in December he will ask for another reduction or bolt. I will probably agree as I have to stay competitive in this rental market and do not want to risk vacancy for multiple months. GTA condo owners who bought in 2018 or 2019 like myself have some tough years ahead of us but it is the risk we took as investors, take the bad with the good. Hope most can tough it out and come out successful on the other side of this pandemic.
Deal Guru
Feb 9, 2009
11269 posts
9764 upvotes
oasis100 wrote: low rise is hot af. everywhere. from Caledon to oshawa.

developers still releasing condos that sell.

don't see any panic at all.

In Milton and Caledon under 1.2 mil-ish moving, anything above is having a hard time. Milton towns are moving quick. Caledon's are not (for some reason).

North brampton as well some singles are sitting around 1.1 mil and above. Ive seen an area cause the homes are newer and better finishes they are moving quite fast even at 1.1 or 1.2 mil

So it seems buyers are being picky at above 1.1 mil or priced out. I feel there will COULD be a price correction for SFH in these areas cause 1.2 mil seems to be the wall now.

Of course other areas like York region, Durham, etc will have their own price limits or levels.
Deal Addict
Mar 13, 2017
1001 posts
1180 upvotes
I'm still confused as to why the original thread I started in January was closed?

This has happened a few times now .. While I realize trolls can at anytime hijack a thread, I'm starting to wonder about the value of content contribution ...
Member
Aug 13, 2020
365 posts
433 upvotes
1cat2dogs wrote: I'm still confused as to why the original thread I started in January was closed?

This has happened a few times now .. While I realize trolls can at anytime hijack a thread, I'm starting to wonder about the value of content contribution ...
It was actually a very 'successful' thread - so many comments and discussion! Closing it for 1 comment was extreme.
Newbie
Aug 10, 2018
50 posts
31 upvotes
superscoots wrote: Massive immigration incoming and is going to fill the glut of high rise condos in the downtown core.
I'm not sure why everyone is excited about it. It's just government's intent. Do these potential immigrants want to come? This is the question. Today's Canada is not the same as 20 years ago. It's extremely hard now to enter real estate market unless you have enough money from your home country. Don't forget potential tax increase in Canada because of COVID financial measures. Life in Canada is getting more expansive with the years. Canada can be still attractive but in my opinion not as much as in the past.
Member
Nov 12, 2019
345 posts
547 upvotes
Dzik99 wrote: I'm not sure why everyone is excited about it. It's just government's intent. Do these potential immigrants want to come? This is the question. Today's Canada is not the same as 20 years ago. It's extremely hard now to enter real estate market unless you have enough money from your home country. Don't forget potential tax increase in Canada because of COVID financial measures. Life in Canada is getting more expansive with the years. Canada can be still attractive but in my opinion not as much as in the past.
It's true that western countries no longer hold the same kind of allure for people from "third world" countries like 20 years ago. However, Canada's desirability compared to other immigrant friendly countries have increased. I believe the overall net effect is more demand for immigration to Canada.

Here are some factors to consider:

- America's decreased desirability with the Trump administration making it harder to get work visas over there. This may change if Biden gets elected.

- Long term stagnation with the European nations resulting in lower average wages compared to US and Canada.
There are actually a lot of EU and UK citizens looking to immigrate here.

- More political instability across the world, increasing demand to immigrate to politically stable democracies.

The main risks for immigration is political backlash here in Canada. With the already skyrocketing housing costs that far outpaces inflation and wage growth, Canada remaining a immigration friendly politically may be at risk as soon as the next national election. Especially if we sink into a major long-term recession.
Deal Guru
Feb 29, 2008
14618 posts
10858 upvotes
1cat2dogs wrote: I'm still confused as to why the original thread I started in January was closed?

This has happened a few times now .. While I realize trolls can at anytime hijack a thread, I'm starting to wonder about the value of content contribution ...
Do you know what happened? I'm confused myself.

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