Real Estate

Is this good time to buy real estate in Toronto/GTA?

  • Last Updated:
  • Feb 25th, 2019 3:47 pm
Deal Addict
Jan 23, 2016
1035 posts
252 upvotes
Kitchener, ON
TheSinner wrote:
Feb 16th, 2019 1:06 pm
Anticipation of a recession might explain why Amazon has no immediate plans to open another new location (other than the one that was planned in Virginia I believe) after pulling out of NYC a few days ago.

But none of this is relevant if a home is affordable to the OP and he intends to raise a family there. One has to expect good times and bad times throughout the course of ownership.
If he currently has a rental home and he is saving it’s all well and good. If it was me, I wouldn’t buy. I would wait. Too many red flags. Better to pay a little more to buy into a stable market then buy into one wobbling on the precipice and risk negative equity. Normally negative equity isn’t so bad if you are there long term but if interest rates rise because inflation ramps up and you get foreclosed on with negative equity you will be wiped out for a decade.
Deal Fanatic
Feb 29, 2008
8736 posts
3803 upvotes
Sparky9087 wrote:
Feb 16th, 2019 1:17 pm
If he currently has a rental home and he is saving it’s all well and good. If it was me, I wouldn’t buy. I would wait. Too many red flags. Better to pay a little more to buy into a stable market then buy into one wobbling on the precipice and risk negative equity. Normally negative equity isn’t so bad if you are there long term but if interest rates rise because inflation ramps up and you get foreclosed on with negative equity you will be wiped out for a decade.
We have a government that is far too invested in the market. They will do whatever it takes. I don’t think prices will drop that much without the government doing something to prop them back up. It’s pretty obvious. Speaking from Ontario’s perspective.
Deal Fanatic
Feb 29, 2008
8736 posts
3803 upvotes
Sparky9087 wrote:
Feb 16th, 2019 12:58 pm
I wouldn’t buy now. I sold my place and I feel sorry for the guy who bought it. Credit crisis in China looking. Much less foreign investment. Sydney, Australia market in free fall. Foreign investors created this bubble. Cheap Chinese money is going to be coming to end. United States is already in recession. It just hasn’t been announced yet. Canada will follow. The writing is on the wall. Well see a slow decline at first but once it accelerates a lot of investor inventory will hit the market to try and avoid negative equity and then look out below!
Rewind 10 years, I read the same exact thing.

People who time the market will get burned which is exactly what you’re suggesting.
Deal Addict
Jan 23, 2016
1035 posts
252 upvotes
Kitchener, ON
JayLove06 wrote:
Feb 16th, 2019 1:23 pm
Rewind 10 years, I read the same exact thing.

People who time the market will get burned which is exactly what you’re suggesting.
The market isn’t doubling over the next 2 years. Waiting 10 months isn’t going to change much at all. The data doesn’t lie. We aren’t in a strong bull market anymore.
Deal Fanatic
Feb 29, 2008
8736 posts
3803 upvotes
Sparky9087 wrote:
Feb 16th, 2019 1:26 pm
The market isn’t doubling over the next 2 years. Waiting 10 months isn’t going to change much at all. The data doesn’t lie. We aren’t in a strong bull market anymore.
Right, the the crash people are expecting simply isn’t happening. So waiting for that to happen while paying rent waiting for the perfect time to buy is silly. We are talking about a primary residence not an investment property. Actually living in a home that you enjoy is what matters most. Something that Bears have a hard time understanding.

If the market stays flat the next 10 years what’s the problem? Pay down your mortgage...market will eventually pick up.
Deal Addict
Jan 23, 2016
1035 posts
252 upvotes
Kitchener, ON
JayLove06 wrote:
Feb 16th, 2019 1:36 pm
Right, the the crash people are expecting simply isn’t happening. So waiting for that to happen while paying rent waiting for the perfect time to buy is silly. We are talking about a primary residence not an investment property. Actually living in a home that you enjoy is what matters most. Something that Bears have a hard time understanding.

If the market stays flat the next 10 years what’s the problem? Pay down your mortgage...market will eventually pick up.
And if the market tanks by 40% and interests rates rise to the point you can’t afford?

If you do buy, lock it in for 5 years.
Deal Fanatic
Feb 29, 2008
8736 posts
3803 upvotes
Sparky9087 wrote:
Feb 16th, 2019 1:38 pm
And if the market tanks by 40% and interests rates rise to the point you can’t afford?

If you do buy, lock it in for 5 years.
40% I’d say you’re living in a dreamworld. The doomsday talk has been happening for ages. Bring it on Face With Tears Of Joy
Deal Addict
Jan 23, 2016
1035 posts
252 upvotes
Kitchener, ON
JayLove06 wrote:
Feb 16th, 2019 1:46 pm
40% I’d say you’re living in a dreamworld. The doomsday talk has been happening for ages. Bring it on Face With Tears Of Joy
Sydney prices have fallen 11 percent this past year. UBS is calling for another 5 this year. They aren’t even in a bubble as big as the GTA. We are witnessing the start of a global real estate bubble pop

Image

I’ll be a buyer in 2020/2021. For now my home equity money is sitting in the bank.

Obviously this is my own opinion only. Obviously this is starkly in contrast with the bulls on here. But we need a balanced perspective with both sides. I ran the numbers in my city. Median household income. Calculate take home monthly pay. Calculate mortgage and taxes and today’s prices. The answer is unaffordable homes. There is room to move downside.
Member
Nov 5, 2018
396 posts
415 upvotes
Scarborough
Don't be discouraged by the bears. IMO, I don't mind them...they are paying my mortgage for my investment condos. Thanks bears! ;)
Money, Common Stocks, Credit Cards, Coupons, Condos (MCCCC)
Deal Addict
Jan 23, 2016
1035 posts
252 upvotes
Kitchener, ON
CondoMan98 wrote:
Feb 16th, 2019 2:02 pm
Don't be discouraged by the bears. IMO, I don't mind them...they are paying my mortgage for my investment condos. Thanks bears! ;)
Lol. It’s people like you who I hope are completely wiped out. It is morally wrong to speculate in the housing market, pushing up the price of homes for the average Canadian family. It should be illegal to own more than 2-3 homes. I’m a renter again by choice and I’ll be popping the sparkly and eating popcorn when guys like you are begging the government for a bailout
Newbie
Jul 5, 2018
37 posts
31 upvotes
Sparky9087 wrote:
Feb 16th, 2019 1:58 pm

I’ll be a buyer in 2020/2021. For now my home equity money is sitting in the bank.

Obviously this is my own opinion only. Obviously this is starkly in contrast with the bulls on here. But we need a balanced perspective with both sides. I ran the numbers in my city. Median household income. Calculate take home monthly pay. Calculate mortgage and taxes and today’s prices. The answer is unaffordable homes. There is room to move downside.
Theres less than 100k yearly real estate transactions. Theres 3mil people in GTA. Not everyone can afford a home. The people that do keep on buying. Your calculation is laughable and is only applied in a vacuum.
Member
Nov 5, 2018
396 posts
415 upvotes
Scarborough
Sparky9087 wrote:
Feb 16th, 2019 2:06 pm
Lol. It’s people like you who I hope are completely wiped out. It is morally wrong to speculate in the housing market, pushing up the price of homes for the average Canadian family. It should be illegal to own more than 2-3 homes. I’m a renter again by choice and I’ll be popping the sparkly and eating popcorn when guys like you are begging the government for a bailout
That is capitalism...stop whining because you don't have the guts to invest. Real estate has been an asset class since the dawn of time. You are jealous. Plain and simple. Go move to Venezuela if you want "fairness".
Money, Common Stocks, Credit Cards, Coupons, Condos (MCCCC)
Deal Addict
Jan 23, 2016
1035 posts
252 upvotes
Kitchener, ON
CondoMan98 wrote:
Feb 16th, 2019 2:10 pm
That is capitalism...stop whining because you don't have the guts to invest. Real estate has been an asset class since the dawn of time. You are jealous. Plain and simple. Go move to Venezuela if you want "fairness".
I’m not jealous. I was a home owner up until a few weeks ago. I could put a down payment on 3 investment properties with my home equity. Families won’t be wiped out in the global real estate bubble pop since they will just keep paying their mortgage. The investors will get hit the hardest and I can’t wait. It’s hilarious because it’s the investors who tile and time again never see it coming and then need a bailout Face With Tears Of Joy
Deal Fanatic
Feb 29, 2008
8736 posts
3803 upvotes
Sparky9087 wrote:
Feb 16th, 2019 1:58 pm
Sydney prices have fallen 11 percent this past year. UBS is calling for another 5 this year. They aren’t even in a bubble as big as the GTA. We are witnessing the start of a global real estate bubble pop

Image

I’ll be a buyer in 2020/2021. For now my home equity money is sitting in the bank.

Obviously this is my own opinion only. Obviously this is starkly in contrast with the bulls on here. But we need a balanced perspective with both sides. I ran the numbers in my city. Median household income. Calculate take home monthly pay. Calculate mortgage and taxes and today’s prices. The answer is unaffordable homes. There is room to move downside.
Still affordable to many others though. People are still buying even with the debilitating rules. Big detached houses in a world class city should not be affordable for the average Joe. It’s more about mentality than anything. How many people can afford to live in Manhattan? Downtown Boston? SF? People buy where they can afford. If that means Brampton then so be it. Renting is also an option as well but people in Toronto feel they are owed home ownership with mediocre income.

Find ways to bring in more income and cut costs.

Why are you talking about Sydney exactly?
Deal Fanatic
Feb 29, 2008
8736 posts
3803 upvotes
Sparky9087 wrote:
Feb 16th, 2019 2:14 pm
I’m not jealous. I was a home owner up until a few weeks ago. I could put a down payment on 3 investment properties with my home equity. Families won’t be wiped out in the global real estate bubble pop since they will just keep paying their mortgage. The investors will get hit the hardest and I can’t wait. It’s hilarious because it’s the investors who tile and time again never see it coming and then need a bailout Face With Tears Of Joy
This is a really silly and miopic way of looking at things, we need investors. You think investors getting wiped out wouldn’t affect you? It’s just dumb thinking. Investors who INVEST money do not have a right to see a return on that investment? Sorry but that is just not smar thinking.

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