Thanks for the insight, AG, Fido, and Delhite. As said earlier, looking at MLS, I didn't find anything affordable and less than what I could already find here in BC with the similar burbs/neighborhoods. Caledon is bit different though, and was still able to find some properties listed under $500k.

Will keep exploring. If anyone else has any advise for rental property investment, please do let me know. I am all ears .

Quote:

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Originally posted by febpreet

Thanks for the insight, AG, Fido, and Delhite. As said earlier, looking at MLS, I didn't find anything affordable and less than what I could already find here in BC with the similar burbs/neighborhoods. Caledon is bit different though, and was still able to find some properties listed under $500k.

Will keep exploring. If anyone else has any advise for rental property investment, please do let me know. I am all ears .

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America Ka Vyapaari Canada Ka Bhikari

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If anyone has business or work in west side then do not think of Calderon or Georgetown. better to get house in Stoney creek or Niagara region.

its still lot cheaper to buy travel will be smoother ...

i am in falls and i see lot of growth ( i would say lot of migration in past few years) - price has started going up so its the time to act and get good deal. in few years house will be expensive here.

I had advice same two years back and in two years real estate market already has gone up to 25 to 35%

Falls to Burlington is only 45 min drive so again u are in west side of GTA , go for Niagara region .

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'Some goals are so worthy, it's glorious even to fail.' (Param Vir Chakra awardee Lt. Manoj Pandey)

OK So last Saturday was a phase launch of Paradise for Upper Mt Pleasant and I reached there 5 am in the morning only to be told by the guard ' Better Luck next time , your number is 155 in the line'

Out of inquisitiveness , I stayed on ... 8 am last roll call was done and then 9 30 pm 2 cops turned up and one of the Paradise Officials started handing token from 1 to 80 and calling 3-4 tokens at a time inside.

The semis were selling at around 600K and the 38' detached were going for 750K... By 11 am almost all semis were gone and the detached that I was interested in was also gone...

Upon further inquiry some points emerged :

a. People had started lining up Monday evening onwards and were present in every subsequent 3-4 hourly roll call.
b. Some of the front runners appeared to be sort of consortium investors in which 3-4 people were buying the property perhaps to flip it.
c. There were some people who were standing in the line for money and the actual applicants came on the final hour and all went inside together.
d. There was one guy who missed getting anything on 2 earlier releases and camped for this since Monday morning ....



Q ~ Why is there so much madness ? Is it that profitable to buy a detached at 750K and flip it with in 2 years ?

Lesson learnt : If you want a property in a new release either take off for 3-4 days yourself or hire a student at minimum wages ..


Thoughts , comments ...

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Fido.

What a madness ...

Its better to find something 1 hr drive away from GTA - i have said earlier and i am saying again... look towards Niagara region - still real estate is very reasonable and down the road it will give you good return ...

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'Some goals are so worthy, it's glorious even to fail.' (Param Vir Chakra awardee Lt. Manoj Pandey)

I totally agree with you. Same thing happened with another builder at Chingousey/Wanless only 2 weeks back. One of my friend booked a 38' detached for 805K - as investment property. In my opinion, it is a pure madness - nothing else. I may be wrong and idiot in others opinion. I don't think with this much of investment, anyone can get comparable return in rent/lease unless they sell it just after closing. If they decide to sell right after closing, it is a gamble/satta.

I believe the new home builders are 50% responsible for this price hike. They started releasing lots in very small numbers - 10 to 20 lots at a time in one phase. They get sense of the market and jack up the price list in the next release. In some instances, I have heard that on the day of opening up the new phase, if they found lots of people lined up in front of their office, they simply revise the price list and jack up the price. A few years back, the builders used to sell the inventory homes at a reasonable prices but nowadays, they keep on revising the prices of their inventory home ahead of the market value. I knew one builder (Muirland) who had an inventory of around 12 houses in March 2015. I still have their price list. There were houses on 60' lots of around 4000 sq ft for around 900K. I have again visited their office in April 2016 and they still have same 5 houses on their inventory - although they have added few more new houses to that inventory list. The same house which was up for sale for 900K is now jacked up for 1.25 Mil. The builder has raised the price of inventory house by 350K in the last one year.

The people who are booking the new houses for making quick profit by selling them just after closing are equally responsible for this inflation. These persons are creating artificial demand and riding over it. It is nothing but a hype which will burst one day. It is something like the Ponzi scheme. The people who get into it first, make the profit and who enter at the end, lose the money. I have heard many arguments that there is abandon incoming of new immigrants in GTA so there will be a constant demand and it will never stop. Let me give you example of Delhi's real estate market which I have followed closely for the last 15 years. The people over there used to give the argument that there is no more vacant land left in Delhi and on the other hand there is a constant influx of new persons in Delhi so there will always be more demand than the supply. Besides this, most of the houses in Delhi are not financed so the people have no mortgages. In case the prices will start be dropping, the owners have capacity to hold on to their properties so the prices won't go down. Besides these strong arguments, the property prices in Delhi has dropped 40 to 50% in last 3 years. Once the reverse cycle started, people lose the faith in real estate.

Now back to GTA's real estate scenario. No one can predict when this mad race will stop or slow down. There are so many casual factors and it is not easy to create a model out of it. My feeling is that when the GTA housing market will touch the level of Vancouver area, it will slow down. Not much gap is left. GTA will catch up in a year or two. Other indicator may be the number of people who are booking the new houses just for making quick bucks. When those people will reach to a limit when they will not be able to sell the new houses after closing, this race will slow down. Another indicator could be the unreasonable high prices. There is always a limit which people can afford. Flipping the houses for quick profit is one thing but keeping and maintaining a house for long term is something else. One can afford to buy a house of a million (by selling their other primary home) but paying a thousand bucks every month as city tax will surly pinch. I don't understand how come those people lined up to buy such costly houses when they cannot afford them in long term.

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A Delhite in Toronto

Delhite, I echo your sentiments. Here in Vancouver, it has been becoming a madhouse by each day. A million dollar suburban houses are selling within 2-3 days at the max. Wondering who is buying those. You are right, GTA is closing in on the Vancouver Metro area. However, I have always maintained that, at least Toronto has a viable and quality employment with numerous National headquarters. What does Vancouver have? Just a good weather.

Will be interesting to see how it all ends, or whether would it.