Can someone give me a frank opinion on the real estate market in Toronto, I keep hearing conflicting thing on the state of the market. Some people are in denial about the so called bubble and on the other hand we see people forming lines to buy high rise condo apartments and real estate agents holding so called VIP showing & bookings. I might want to invest in the future.
I can give that, what do you want to hear?
It's all a joke.
Some said that it is a bubble.
The bankers called it recently as a balloon.
But the problem is that when a bubble pops it sound is limited, while when a fully blown balloon pops it is going to be heard all over the place.
My gut feel is that RE is going to be safe in the longer run in GTA, while in TO it is going to become some what iffy as the city is becoming economically unviable.
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Sunny Leone a true Canadian DESI now back in India !.
Thanks for your replies.
Quote:
Originally posted by Vandematram
It's all a joke.
Some said that it is a bubble.
The bankers called it recently as a balloon.
But the problem is that when a bubble pops it sound is limited, while when a fully blown balloon pops it is going to be heard all over the place.
My gut feel is that RE is going to be safe in the longer run in GTA, while in TO it is going to become some what iffy as the city is becoming economically unviable.
Everything starts from a correction.It takes lot of effort to get out from denial when you are in deep hole.
There are few friends who bought in 2005-2006 in USA and still having negative equity and paying religiously and some in AB/BC who bought in 2007-2008 are in same boat. They still do not agree their decision was financially wrong but you can say all crap like place to live, place for kids, place for toys, place for connection. But 6 figure principal loss or 8-10 years behind mortgage closing is a financially wrong decision. It's not a correction. Some of them can not move even with a good job offer.
You need to do your own research than expecting someone gives black/white ans.
Every bubble starts busting from correction. RE takes long time than stock market to get correct.
Calculate your rent, mortgage interest, CMHC fee, realtor commission, closing cost, lawyer fee, mortgage break conditions, negative equity factor, moving cost and other miscellaneous cost and figure out what works for you. Renting/owning/investing? or doing same in US when RE is so cheap in some part of country?
Are there any other vehicle for you to make more sense like rrsp, resp, tfsa, etf, daily trade or mutual funds?
As I previously posted, market is currently how you want to see it..if you perceive time to buy then time to buy based on the lines/price increase, global issues etc. if you perceive time to get out then time to get out again based on the lines/price increase, global issues etc. In short the factors that kind of supports the argument, same can be used to against it...ultimately it depends on how much risk can you afford to take and for how long.
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