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Baby, we got a bubble!?

^ Not surprising results. Number of listings is still low and the weather has improved substantially over the course of May. Although not a crazy seller's market like in the past, buyers seem to be getting their confidence back in the market.
 
Another consideration:

Real estate prices in Canada, especially Toronto, have been red hot over the past 5 years. Returns on investment have been excellent. However, look at the stock market. Simply investing in the S&P 500 would have yielded a better return than Toronto real estate.

There's a huge amount of liquidity in the market due to low interest rates and fear. Capital is sloshing around looking for a home. I can hardly think of an asset class that isn't doing well.

Yes, real estate is doing well right now but it's far from the hottest asset class over the past 5 years. Everybody looks like an investment genius in this type of fiscal climate.
 
DearSummer said:
Another consideration:

Real estate prices in Canada, especially Toronto, have been red hot over the past 5 years. Returns on investment have been excellent. However, look at the stock market. Simply investing in the S&P 500 would have yielded a better return than Toronto real estate.

There's a huge amount of liquidity in the market due to low interest rates and fear. Capital is sloshing around looking for a home. I can hardly think of an asset class that isn't doing well.

Yes, real estate is doing well right now but it's far from the hottest asset class over the past 5 years. Everybody looks like an investment genius in this type of fiscal climate.
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I agree with you totally. A rising tide raises all ships.
Eventually there will be a reconning when the liquidity has to be removed. However, I suspect bonds, stock market and real estate will all go down at that time. The problem will be where to hide.

Real estate will provide a return for those who choose to rent their properties and can hang on. However, I am not convinced that other for living in them for an horizon that is at least 5+ years that it is wise to buy at these prices, despite the fact that it has increased in value.

History has a nasty habit of repeating itself and asset classes that have been on an essentially upward trajectory tend to return to the norm. Not scare mongering. Just saying I expect a slowing and a slight decrease over time and perhaps years were no return (other than any net rent ) will be made by real estate investors. Home buying as I said for personal use is another story.
 
While May numbers have been hot, it has still taken rather long for units to sell in my condo. Prices have been flat or slightly declined over the last year I'd say. Disappointing.
 
TheKingEast said:
It is what it is. It's not all bad, though. My other investments are booming. I have one that has almost doubled. Another up 60%.
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No one gets every investment right...except those who do no investing at all. Sooner or later you buy something that ends up not performing as expected. I like you, TheKingEast have mainly positives but I do have 1 which I believe is negative though I am hopeful turning around a bit now.
I don't think Brad Lamb is any worse or better than most developers but I do believe there were some issues with The King East as I recall. You would obviously know more since as your title suggests you bought in Ellipse in Scarborough as cdr pointed out.
 
TheKingEast said:
It is what it is. It's not all bad, though. My other investments are booming. I have one that has almost doubled. Another up 60%.
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Sorry to hear TKE.. I have the same issue with one of my investments - I thought the trend would be way above average but the building has been stagnant in a strong market (other factors have lead to this) and this is a sign to sell for me.

The others that I thought would be average have appreciated 10+% per year over many years.

Just the way investing works sometimes... best to be diversified in a few areas.
 
interested said:
No one gets every investment right...except those who do no investing at all. Sooner or later you buy something that ends up not performing as expected. I like you, TheKingEast have mainly positives but I do have 1 which I believe is negative though I am hopeful turning around a bit now.
I don't think Brad Lamb is any worse or better than most developers but I do believe there were some issues with The King East as I recall. You would obviously know more since as your title suggests you bought in Ellipse in Scarborough as cdr pointed out.
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I guess it was bound to happen. You live and you learn.

TorontoMike$$ said:
Sorry to hear TKE.. I have the same issue with one of my investments - I thought the trend would be way above average but the building has been stagnant in a strong market (other factors have lead to this) and this is a sign to sell for me.

The others that I thought would be average have appreciated 10+% per year over many years.

Just the way investing works sometimes... best to be diversified in a few areas.
Click to expand...

Yea, it happens. I'll be selling as well.
 
TorontoMike$$ said:
Sorry to hear TKE.. I have the same issue with one of my investments - I thought the trend would be way above average but the building has been stagnant in a strong market (other factors have lead to this) and this is a sign to sell for me.

The others that I thought would be average have appreciated 10+% per year over many years.



Just the way investing works sometimes... best to be diversified in a few areas.
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Can you elaborate without necessarily naming the building (unless you feel comfortable doing so) what other factors have lead to the stagnant investment. If you prefer not to, I understand. Also, please feel free to pm me as I am curious as to what you perceive lead to the stagnation in a similar market of one building vs. the rest.
 
interested said:
Can you elaborate without necessarily naming the building (unless you feel comfortable doing so) what other factors have lead to the stagnant investment. If you prefer not to, I understand. Also, please feel free to pm me as I am curious as to what you perceive lead to the stagnation in a similar market of one building vs. the rest.
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I bet the building wasn't developed by a reputable company either. The condo buying public is extremely ignorant of the importance of buying from an established name. It is really vital for long term success in this market.
 
CN Tower said:
I bet the building wasn't developed by a reputable company either. The condo buying public is extremely ignorant of the importance of buying from an established name. It is really vital for long term success in this market.
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It is important to buy from a reputable builder, but in today's boom even reputable builders can produce poor quality buildings. Not a lot of good trades to go around, tight deadlines, etc. Tridel will deliver a good product but after that it's really a crap shoot. The construction company is very important as well. Which developers would you suggest?
 
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