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  • Feb 26th, 2019 10:04 pm
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[OP]
Newbie
Jan 29, 2010
5 posts
Etobicoke

What to buy now?

Given the recent slowdown in the real estate market (prices in general are selling for lower than listing)...What is the most optimal starter home to purchase within the GTA? Single male in late 20s starting the search.

My thoughts on each of the below:

Condos, condos THs - Can't keep for too long, maintenance fees will always increase and isn't really in your control. Anyone have any experience with condo assignments? Maybe that would yield a better deal than resale?

Semis, detached - Prices are dropping but still pretty expensive. But hard on single income.

To be honest I feel like there is no most optimal purchase in the GTA...
19 replies
Member
Jul 2, 2018
301 posts
286 upvotes
Take this into consideration:
Purchase a property with multiple income producing units. Live in the cheapest/smallest unit yourself and rent the others out. You can DIY change the flooring and paint the walls in your unit if you want it to feel a bit nicer, it costs "nothing". Do this for as long as it is feasible and use the rental income to cover most of your costs. Eventually, you can move into one of the larger units, or you can just move out to another place that's bigger and nicer.

Edit: Just noticed you said late 20's and not early 20's, I understand this can be more challenging at that age if you are looking to find a partner, but you can make it work.
Realtor + Investor
Deal Guru
Feb 9, 2009
12324 posts
11128 upvotes
Why would you want a single detached for a single person? I get maybe you are looking ahead but it's still to think you should be able to afford a single detached on one income (Unless its a high income).

People forget this isnt your Daddy's Toronto anymore who could work in a local factory and afford a house. Mind you houses are also becoming larger and larger (3000 sq ft were nearly unheard off back 30 years ago) and the price of labour shot up and you are going to have prices that will be much higher now.
Jr. Member
Jan 2, 2019
130 posts
148 upvotes
Don't buy anything now, save cash and get ready for future deals.
Deal Expert
Feb 29, 2008
17324 posts
14716 upvotes
Tarrana & The Ri…
TileMan001 wrote: Don't buy anything now, save cash and get ready for future deals.
Face With Tears Of Joywhy not? There are some good deals right now. Or do you think prices are going to fall off a cliff too?
Jr. Member
Jan 2, 2019
130 posts
148 upvotes
JayLove06 wrote: Face With Tears Of Joywhy not? There are some good deals right now. Or do you think prices are going to fall off a cliff too?
No I don't, I want to see where things are going, the same as all the builders I work for who are not buying anything now and cancelling or postponing future phases until things are more clear. FYI I sold my house at the peek by chance and the guy that bought it is 200k in the red and renting it at a loss, when I asked him what he was thinking, he said I thought I was going to sell it a year later for %10 more.
Sr. Member
Nov 10, 2017
828 posts
572 upvotes
TileMan001 wrote:
No I don't, I want to see where things are going, the same as all the builders I work for who are not buying anything now and cancelling or postponing future phases until things are more clear. FYI I sold my house at the peek by chance and the guy that bought it is 200k in the red and renting it at a loss, when I asked him what he was thinking, he said I thought I was going to sell it a year later for %10 more.


”all the builders I work for who are not buying anything now and cancelling or postponing future phases until things are more clear"

Who are these builders ? Maybe these are one that we should stay away. Only buy from the reputable builders with deep pockets.
Last edited by JosephB012 on Feb 22nd, 2019 5:34 pm, edited 1 time in total.
Deal Addict
Jan 29, 2010
1693 posts
2436 upvotes
Toronto
TileMan001 wrote: Don't buy anything now, save cash and get ready for future deals.
Don't buy anything now, save cash and get ready to be priced out.
Banned
Jan 23, 2016
1430 posts
408 upvotes
Kitchener, ON
jillaryit wrote: Don't buy anything now, save cash and get ready to be priced out.
Found the real estate agent.
Deal Fanatic
User avatar
Feb 2, 2014
9898 posts
2790 upvotes
Toronto
Xterior90120 wrote: Given the recent slowdown in the real estate market (prices in general are selling for lower than listing)...What is the most optimal starter home to purchase within the GTA? Single male in late 20s starting the search.

My thoughts on each of the below:

Condos, condos THs - Can't keep for too long, maintenance fees will always increase and isn't really in your control. Anyone have any experience with condo assignments? Maybe that would yield a better deal than resale?

Semis, detached - Prices are dropping but still pretty expensive. But hard on single income.

To be honest I feel like there is no most optimal purchase in the GTA...
Start your search with what you want, as opposed to what is the best deal.

From there, you can look at getting a good deal.

I feel like you're looking at this backwards OP. It sounds like you're debating if you should live in a house in the burbs or a condo dt simply because it's a better deal. You can find a wise deal anywhere.

For example, if you want to live in a house in the burbs and ok with being a landlord, buy a house with multiple units. If you want to live in the core, want to do no management and have time, maybe buy an assignment.
Kevin Somnauth, CFA
Principal Broker - First Toronto Mortgage - MA (Ontario #13176, BC #X301007)
Real Estate Salesperson - Century 21 Innovative
Deal Guru
Feb 22, 2011
11490 posts
14743 upvotes
Toronto
Decide where you want to live, see what you can comfortably afford there.
Deal Fanatic
Mar 27, 2004
6658 posts
4561 upvotes
Toronto
Decide where you want to live. Condos downtown are going up in value, but doesn't mean I want to live in a downtown condo.
Full-time Realtor
Jr. Member
Jan 2, 2019
130 posts
148 upvotes
JosephB012 wrote: ”all the builders I work for who are not buying anything now and cancelling or postponing future phases until things are more clear"

Who are these builders ? Maybe these are one that we should stay away. Only buy from the reputable builders with deep pockets.
You must be like 10 years old, does Green Park and Mattamy have deep pockets, are they reputable builders ? that's for you to decide buddy. I will not start naming people I work for online, all I can tell you is their is lots of negative talk about the state of the market from the higher ups which is above your pay grade. "Sales of new homes in Toronto sunk to the lowest in almost two decades in 2018 and the supply of unsold condos piled up, according to the Building Industry and Land Development Association report released Feb. 1. In Vancouver, homes sales fell almost 40 per cent in January from the same month a year earlier" Does that sound positive ? just use your brain man.
Deal Addict
Jan 17, 2006
2255 posts
2385 upvotes
Toronto
TileMan001 wrote: FYI I sold my house at the peek by chance and the guy that bought it is 200k in the red and renting it at a loss, when I asked him what he was thinking, he said I thought I was going to sell it a year later for %10 more.
Cool story, we have heard it few times, usually from newbies like you who mostly active in real estate forum waiting for that illusive crash. Then they disappear or get banned and popup with different name.
Sr. Member
Nov 10, 2017
828 posts
572 upvotes
TileMan001 wrote: You must be like 10 years old, does Green Park and Mattamy have deep pockets, are they reputable builders ? that's for you to decide buddy. I will not start naming people I work for online, all I can tell you is their is lots of negative talk about the state of the market from the higher ups which is above your pay grade. "Sales of new homes in Toronto sunk to the lowest in almost two decades in 2018 and the supply of unsold condos piled up, according to the Building Industry and Land Development Association report released Feb. 1. In Vancouver, homes sales fell almost 40 per cent in January from the same month a year earlier" Does that sound positive ? just use your brain man.

You must be 6rs old. You have no proof, go home and play Barbie.
Jr. Member
Jan 2, 2019
130 posts
148 upvotes
This is incredible"Sales of new homes in Toronto sunk to the lowest in almost two decades in 2018" that's the proof. I have bought and sold 4 houses in the last 10 years and last year built a 4000sf house with cash that I will be trying to sell soon but will probably break even because the suburbs really took a beating. I want the show to go on buddy and I'm hoping for the best...
Member
Nov 5, 2017
246 posts
232 upvotes
The only way buying make sense if you throw your calculator away and logic with it. But this is the condition in Toronto for last few years. Close your eyes take a plunge and leave pay cheque to pay cheque life. Stay away and be price out and join the bears. Pick your poison.
Sr. Member
Nov 10, 2017
828 posts
572 upvotes
Xterior90120 wrote: Given the recent slowdown in the real estate market (prices in general are selling for lower than listing)...What is the most optimal starter home to purchase within the GTA? Single male in late 20s starting the search.

My thoughts on each of the below:

Condos, condos THs - Can't keep for too long, maintenance fees will always increase and isn't really in your control. Anyone have any experience with condo assignments? Maybe that would yield a better deal than resale?

Semis, detached - Prices are dropping but still pretty expensive. But hard on single income.

To be honest I feel like there is no most optimal purchase in the GTA...
You may consider properties in York Region.

https://globenewswire.com/news-release/ ... ummit.html
Sr. Member
May 27, 2013
513 posts
43 upvotes
RealtorInvestor wrote: Take this into consideration:
Purchase a property with multiple income producing units. Live in the cheapest/smallest unit yourself and rent the others out. You can DIY change the flooring and paint the walls in your unit if you want it to feel a bit nicer, it costs "nothing". Do this for as long as it is feasible and use the rental income to cover most of your costs. Eventually, you can move into one of the larger units, or you can just move out to another place that's bigger and nicer.

Edit: Just noticed you said late 20's and not early 20's, I understand this can be more challenging at that age if you are looking to find a partner, but you can make it work.
Goodluck with financing on that
Member
Jul 2, 2018
301 posts
286 upvotes
wantboost1 wrote: Goodluck with financing on that
Multi-units are much easier to finance than single family homes.
Realtor + Investor

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