Real Estate

You won't find this in Toronto Star

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  • Nov 17th, 2019 7:21 pm
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Deal Addict
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Dec 13, 2016
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You won't find this in Toronto Star

Yes, it is from Thai paper.

Take what you will from this... I will only say that Toronto is nowhere close to being expensive and I am posting this because for a decade now bears have been harping about Chinese being the only buyers while everyone else was an economic immigrant.

Unfortunately I don't think Toronto will ever settle for anything above mediocre, so a boring annual 5-8% increase in home prices sounds about right,

But with a commie regime that allows only 1.8% rent increase while taxes and condo fees keep going up. is it really worth investing in this place?



NYC, London, Vancouver losing luster with luxury homebuyers

Wealthy homebuyers are finding global cities less welcoming -- even hostile -- to their cash.


Luxury property prices in 45 global cities rose an average of just 1.1% in the third quarter from a year earlier, the weakest annual gain since the end of 2009, according to a report from Knight Frank. They fell 4.4% in New York, 3.9% in London and 10% in Vancouver.

No wonder. There's uncertainty at every corner, from trade wars to Brexit, Hong Kong pro-democracy protests and a populist backlash in some of the world's biggest and most affluent cities that are imposing new taxes on the rich. "The safe havens are becoming less certain," said Dan Conn, chief executive officer of Christie's International Real Estate. "It's becoming much more challenging in the hubs to find a high quality place to deploy capital. "Global cities like London, Hong Kong and New York, which seemed to defy housing-market cycles year after year following the 2008 financial crisis, are losing their status as safe places for wealthy international buyers to park their cash -- or themselves. The reversal has come in part as governments erected barriers to slow runaway price growth driven -- at least in part -- by all the billionaire investors who came before. The winners were cities such as Moscow, as rich Russians chose to buy at home, and Taipei, favored over Hong Kong, the world's most expensive housing market.

Even as the flow of investment has slowed, many developers are delivering projects started when the supply of rich buyers seemed to go on forever. Now there's a glut of luxury properties and -- as anger mounts over wealth inequality -- affordable units are in increasingly short supply."We've had an unprecedented run in high-end real estate and now many of these markets are struggling with excess supply or uncertainty," said Jonathan Miller, president of appraiser Miller Samuel Inc. "'Uncertainty' is the most overused word in real estate right now and probably for good reason. "London and New York, among other cities, passed taxes aimed at rich buyers. While the levies effectively raised prices even further, they also provided governments with extra cash for city services, as foreign buyers don't pay income taxes. On the other hand, rich buyers also spend money on goods and services that boost local economies and sales tax revenue.

Prices got too high and economic conditions changed, said Thomas Veraguth, the Zurich-based head of global real estate strategy for UBS Wealth Management. Waves of Middle Eastern and Russian buyers pulled back, for example, after the oil crash in 2014, he said."It's fatigue," Veraguth said. "Even the richest will say, 'I'm not going to pay that price anymore."Markets are shifting based on local conditions, said Kate Everett-Allen, a partner at Knight Frank in London. The U.S. election may cause buyers to pause in New York while the stability of the Swiss franc will continue to drive demand in Zurich and Geneva, she said. Moscow had the biggest price increase in Knight Frank's study, rising 11%. With Russia under international sanctions after its annexation of Crimea, and anti-money laundering measures tightened in London and other cities favored by that country's elite, many opt to buy property at home. Developers also completed a number of luxury properties in the Russian capital, increasing supply. Russia has plenty of rich people. There are at least 189,500 ultra-high net worth individuals in the country controlling about $1.1 trillion, according to Capgemini estimates. It's also incredibly unequal. There are 23 Russians on the Bloomberg Billionaires Index, a ranking of the world's 500 wealthiest people, worth about a combined $271 billion.In total, there are more than 100 Russians with more than $1 billion.Chinese buyers have slowed overseas purchases, in part because of government restrictions on getting money out. And buyers everywhere are dodging risk, skipping Hong Kong, the world's most expensive market and one now with political unrest, in favor of Taipei, which saw an 8.9% price increase in the third quarter.While Brexit and taxes on second home buyers make London riskier and more expensive, buyers bid up prices by 10% in Frankfurt, which is a banking capital with relatively affordable prices.When things go sideways around the globe, the U.S. has traditionally served as an island of safety and security, particularly for the world's wealthy.The two biggest cities in California, the state with America's worst affordability crisis, were near the bottom of Knight Frank's ranking. Los Angeles rose 0.2% from a year earlier and San Francisco was flat.

The U.S. is already home to more Hong Kongers than any country outside of mainland China, and recent data suggest more are looking to leave. Applications for a key emigration document, the "good citizenship card," are up 54% in the past year, according to official data.But anti-immigrant political rhetoric, high-profile incidences of gun violence and impending changes to the "investor visa" program have encouraged Hong Kong's would-be emigres to consider alternatives such as Australia, Canada, Singapore and Taiwan."Everybody's pulling back -- it's a crazy time," Edward Mermelstein, a partner at One & Only Holdings in New York, which runs family offices for foreigners. "The wealthy have always been an easy target and now that's a popular theme globally. It's now so much more difficult."


























https://www.nationthailand.com/news/303 ... l_referral
10 replies
Deal Guru
Feb 29, 2008
13421 posts
9346 upvotes
I shake my head every time I read rent control at 1.8% yet rents have gone up more than that. Vote for stupid people, get stupid rules.
Penalty Box
Aug 11, 2005
4175 posts
1422 upvotes
JayLove06 wrote: I shake my head every time I read rent control at 1.8% yet rents have gone up more than that. Vote for stupid people, get stupid rules.
You keep bitching and moaning about rent control, yet keep harping that it’s benefitting you.


Which is it?


I think the fact that no renters are complaining about rent control and thanking Wynne shows that it’s been a success. The only people it has affected are those that are frequently moving, such as international students which makes sense to tax extra anyways.
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Deal Guru
Feb 29, 2008
13421 posts
9346 upvotes
Luckyinfil wrote: You keep bitching and moaning about rent control, yet keep harping that it’s benefitting you.


Which is it?


I think the fact that no renters are complaining about rent control and thanking Wynne shows that it’s been a success. The only people it has affected are those that are frequently moving, such as international students which makes sense to tax extra anyways.
A success. Face With Tears Of Joy
Penalty Box
Aug 11, 2005
4175 posts
1422 upvotes
JayLove06 wrote: A success. Face With Tears Of Joy
Good response supported by irrefutable factual evidence.
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Deal Guru
Feb 29, 2008
13421 posts
9346 upvotes
Luckyinfil wrote: Good response supported by irrefutable factual evidence.
Just taking a page out of your book.
Penalty Box
Aug 11, 2005
4175 posts
1422 upvotes
JayLove06 wrote: Just taking a page out of your book.
Sounds like ur mad that your tenant is paying substantially below market rent. I thought Wynne a rent control was bad? Why are you letting your tenant take money from your pocket, food from your table, clothes off your kids back every month?
Political avatars and signature are not permitted.
Deal Guru
Feb 29, 2008
13421 posts
9346 upvotes
Luckyinfil wrote: Sounds like ur mad that your tenant is paying substantially below market rent. I thought Wynne a rent control was bad? Why are you letting your tenant take money from your pocket, food from your table, clothes off your kids back every month?
WTF are you talking about? Yea, we're done here.
Deal Addict
Jan 9, 2010
1972 posts
1298 upvotes
Luckyinfil wrote: You keep bitching and moaning about rent control, yet keep harping that it’s benefitting you.


Which is it?


I think the fact that no renters are complaining about rent control and thanking Wynne shows that it’s been a success. The only people it has affected are those that are frequently moving, such as international students which makes sense to tax extra anyways.
Renters haven't complained because they think that it's helping them, as in they're living in ignorance. This is the same reason why Wynne got re-elected with a majority, there are a lot of stupid and ignorant voters who like to get bribed with their own money and feel good rhetoric.

The reality is that rent control helps nobody. It's bad for renters because it forces them to stay put in fear of higher rents when they leave, and people who actually have to move having to face less supply which in turn leads to higher market rents. It's also not good for landlords since many of them are forced to basically create affordable housing when it isn't their responsibility, even though they can take advantage of higher market rents when they get a new tenant.
Sr. Member
Sep 7, 2018
725 posts
629 upvotes
Luckyinfil wrote: Sounds like ur mad that your tenant is paying substantially below market rent. I thought Wynne a rent control was bad? Why are you letting your tenant take money from your pocket, food from your table, clothes off your kids back every month?

Lmao

My tenants pay enough to cover the bills, unfortunately I could have a much higher potential rent. I'll wait patiently if they decide to leave and raise rents accordingly. Until then I raise it every year, and the properties are appreciating around 5-10% a year
Deal Fanatic
Jul 3, 2011
5768 posts
2932 upvotes
Thornhill
BiegeToyota wrote: Yes, it is from Thai paper.

Take what you will from this... I will only say that Toronto is nowhere close to being expensive and I am posting this because for a decade now bears have been harping about Chinese being the only buyers while everyone else was an economic immigrant....
Good article thanks for posting.

For what it's worth, the GTA as in Toronto, Peel, York, Durham and Halton to October 31, 2019 has matched exactly - 102 - the number of houses sold for $5,000,000 or more via TREB mls., and while for full disclosure and from a cursory glance, it looks like the volume is lower, it's always a very good sign for the market when the wealthy keep buying.

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