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Posted on: 27-04-12 14:19:28
Already said before in one of my post that chinese from hongkong and middle east Arabs are buying condos, land and houses left right center in Canada after they buy PR like pizza or send their kids on student visa to Canada.
Combination of these two categories of buyers - cash richs plus wage earner immigrants with backing of banks is deadly in positive sense... the magical combination is baffling (and proving wrong) the best of the market fore-tellers till now. How much impact the increase in interest rate or credit downgrade will put on such kind of setup will be something interesting to see. my guess is not much ! when house cost will start falling , rich buyers, RE mafia and bankers will act to play slope stoppers and lift them back up.
A correction here and there for sure but downward slope ? not in my view.
Real estate board or govt do not maintain any data which tells how many foreigners buying or investing in RE. Sometime that is only a part of truth to keep RE drugs running.
There is no easy or soft landing when things go out of control.
Quote:
Originally posted by san-hugo
Already said before in one of my post that chinese from hongkong and middle east Arabs are buying condos, land and houses left right center in Canada after they buy PR like pizza or send their kids on student visa to Canada.
when house cost will start falling , rich buyers, RE mafia and bankers will act to play slope stoppers and lift them back up. A correction here and there for sure but downward slope ? not in my view.
http://www.greaterfool.ca/2012/04/27/half-off/#comments
The average Canadian house is selling for less today ($369,677) than it did a year ago ($371,591). Factoring inflation, houses in Calgary are 25% cheaper now than they were in 2007. The Okanagan and SW Ontario are property wastelands. Muskoka and the rest of GTA’s cottage country are having one of the worst Spring markets in memory. And prime maritime spreads in the Annapolis Valley or along Nova Scotia’s bucolic South Shore can now take two years to sell.
Quote:
Originally posted by rahul_singh23
Real estate board or govt do not maintain any data which tells how many foreigners buying or investing in RE. Sometime that is only a part of truth to keep RE drugs running.
There is no easy or soft landing when things go out of control.
http://www.greaterfool.ca/2012/04/27/half-off/#comments
The average Canadian house is selling for less today ($369,677) than it did a year ago ($371,591). Factoring inflation, houses in Calgary are 25% cheaper now than they were in 2007. The Okanagan and SW Ontario are property wastelands. Muskoka and the rest of GTA’s cottage country are having one of the worst Spring markets in memory. And prime maritime spreads in the Annapolis Valley or along Nova Scotia’s bucolic South Shore can now take two years to sell.
From the link it is clear that people are not any more interested in properties in god foresaken places , poorly maintained beach houses and old mansions. Those people are shifting their base to places like Toronto, Vancouver and its satelite areas. Tourism is on decline at few places, weather has played spoil sports. Thats why your previous post on hotel apartments loosing its prices was also misleading. Come to the heart of cities and count the cost of housing.
The moron writer is making general statement which you pasted here mentioning that prices have dropped since 2007. Its doubled actually ! there is plenty of data available. Even notice of assessment sent by municipalities to individual houses shows upward trend.
Lets see if any of the CD on this forum can claim that his house will be sold even a penny less from the cost he bought in 2007 or before. Anybody ?
Much depends on whether Obama gets reelected or not. I believe he would be as he has been successful in creating a vast dependent class, Government employees class and those who depend on Government orders. Under the circumstances, there is no way interest rate going up sharply. RE market is unlikely to see a major correction. Like MMS who is selling India piece by piece, Canada is inching towards the same policy and it is nowhere more apparent than RE market where Middle East and Chinese people are investing heavily. I personally am of the opinion that major correction is unlikely till USA explodes as it will after four more years of Obama. India is already exploding as MMS is nearing his dismal term. Already cronies of MMS are abandoning the ship and by the term most corrupt PM in history of India leaves the office, Indian rupee would hit 65 against the CDN and inflation, which is already in double digit (if measured from POV of ordinary person) would hit 25%. Canada, being so closely linked to USA, would also suffer when USA explodes after four years and that time RE market would be the biggest casualty. Till then we can all bask in glory of rising RE.
I absolutely agree. This bubble, when it bursts, would result in to catastrophe not seen before and only those who have been cautious would survive. Better to invest in Gold when it goes down to $1,400 and hold it in physical form or in electronic form with a reputed depository. Most other assets would decline in value.
Jim F, Mark C and Moron Garth know a lot about world, Canada and economics and Canada is bigger than GTA.
Anyone who bought in 2007/2008 in western Canada has a negative equity. I know two families who want to sale but can not because of negative equity. One of my friend in Vancouver area having negative equity from condo every month in rent and can not sell too.
There is same problem in lot of GTA condo owners too.
Quote:
Originally posted by san-hugo
The moron writer is making general statement which you pasted here mentioning that prices have dropped since 2007. Its doubled actually ! there is plenty of data available. Even notice of assessment sent by municipalities to individual houses shows upward trend.
Lets see if any of the CD on this forum can claim that his house will be sold even a penny less from the cost he bought in 2007 or before. Anybody ?
http://www.theglobeandmail.com/report-on-business/commentary/barrie-mckenna/carneys-debt-warnings-at-odds-with-monetary-policy/article2417289/
Carney’s debt warnings at odds with monetary policy
Quote:
Originally posted by rahul_singh23
Jim F, Mark C and Moron Garth know a lot about world, Canada and economics and Canada is bigger than GTA.
Seeing the way market tumbles every 6-7 years, govt. are falling due to economic crisis, I doubt if mankind still know enough about the system they create, what good is knowledge of these stalwarts if it cannot be used to bring solutions?.
Btw I get less info from their articles and videos and get more from this forum, ,also from my own experience in market and from inputs by RE agent friends,
On this forum, I praise our own ashedfc who got good grip on the subject and comes with credible economic facts behind the talks.
Quote:
Anyone who bought in 2007/2008 in western Canada has a negative equity. I know two families who want to sale but can not because of negative equity. One of my friend in Vancouver area having negative equity from condo every month in rent and can not sell too.
There is same problem in lot of GTA condo owners too.
So Condos are the reason you are generalizing the negative equity for complete RE mkt ??
Depreciation of value of a Condo is not uncommon, it depends upon location, admin fee and more so with the maintenance administration. A poor building maintenance can lead to buyer disliking the condos and its surroundings and thus the less value. This happens particularly to rental buildings, whereas self-owned self-dwell units are well kept. When I was looking for condos for renting , I observed this. some condos were worst than Bombay Chals, I was amazed that kind of filthiness is allowed in Canada, For sure they will have negative equity !!
Then I found the condo units well kept in a building in Etobicoke which was not a rental building, I enjoyed the luxury of swimming pool, party room and health club. These condos have escalated in the price.
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