Posted on: 09-09-06 13:25:28
Quote:
Originally posted by Vel1
Quote:
Originally posted by Rajeev Narula
FACT
And how many people settle in GTA every year? You are right, 70% of the 300,000 new immigrants that arrive every year. And they need a roof over their heads!
But 50% of those Skilled immigrants move out of Canada to USA/ India/ ME after getting Citizenship & canadian passport and they prefer to rent out during their 3 years stay.
70% are arriving at GTA, and 50% are leaving GTA after citizenship...Only 20% settle down, who might be the potential homebuyers.
It takes over 4 years now to get Canadian citizenship. You still have to live here during this time. And what better way than to invest in the property and sell it on your way out. Even if you don't make much gain, you will still break even....making you live here for free compared to renting.
And using your stats, if 50% of 70% leave (105,000 leave....though my own guess is about 5% leave, bulk of which is SE Asians), that leaves with 50% who stay back (105,000). Even if 25% are potential buyers, we are still talking 25,000+ new buyers every year. On an average, there are about 7000 sales a month. Therefore, there are over 2000 new potentials buyers in the market every month.....
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Rajeev Narula, Broker, REALTOR®
ACE TEAM REALTY INC., Brokerage
10 Kingsbridge Garden Circle, Suite 704
(Opp Square One - HWY10/403)
Mississauga, ON L5R 3K6
Bus: 1-888-355-3155 Ext. 300
Fax: 1-888-443-3155
Email:
Web: http://www.RAJEEV.ca" rel="nofollow">LINK
Good analysis of the real estate markets in the USA and Canada.
The so called exotic mortgages (about 25% of new mortgages in the U.S., which include everything from the interest-only option to a reverse amortization, whereby the principle amount of a loan actually goes up in the early years) should be the Top reason for the housing crash than any other factor.
Many of the option ARMs taken out in 2004-05 by the US consumers are resetting at much higher payment schedules-often to consumers' surprise who thought the low payments were fixed for longer time.
Approximately 80% of adjustable rate mortgage consumers in the US pay only the minimum dowpayment each month, thus the borrowers aren't paying down, they are infact paying them up.
These exotic mortgages lured buyers into debts they have difficult repaying when real estate markets cooled down. As per the NAR (National Association of Realtors) in 2005 US banks gave 43% of first time buyers loans for full 100% of their house value, something unimaginable in Canada until recently.
These types of products were not available in Canada until recently. Mr. David Dodge, Governer, Bank of Canada did express his concern about recently introduced interest-only mortgage or 35 year amortizations. Such products might lead to more price increases as opposed to getting more people into the housing market.
The crash in US housing markets should serve as warning for Canadian consumers who sign up for zero down/ longer amortizations/ interest only loans.
We desi folks are quite smart when it comes to home buying. Majority of home buyers with whom I have dealt, bought with atleast 10% or more down payment.
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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/
Let's learn from our friends from the South and not fall for ZERO / no money down mortgages.
See this funny video "Mr and Mrs too much home buyer" 
http://www.youtube.com/v/TxylHPnoloI
Cheers,
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Amit Kalia, Broker, REALTOR®
RE/MAX Real Estate Centre., Brokerage
independently owned & operated
100 City Centre Dr, Unit 1-702
Mississauga, ON L5B 2C9
Phone No.: 905-339-5111
Website: https://www.realestate-ontario.com/
Condo Blog: https://condopundit.com/blog/
