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Baby, we got a bubble!?

It seems to me that the difference between Toronto and Vancouver real estate prices is that there isn't a huge difference between established elite, central and gentrifying neighborhoods in terms of SFH prices, but outside this core zone Toronto is a lot cheaper (i.e. York, East York, Scarborough, etc. are a lot cheaper than the more peripheral semi-suburban sections of East Van, Burnaby etc.)
 
Migos said:
Condos have been flat for 4 years. Single family homes continue to make huge price gains. It's really a tale of two markets.

http://www.theglobeandmail.com/repo...mes-and-condos/article22532517/?from=22532509
Click to expand...

There's a reason why 2 bedroom shitboxes in Leslieville/Danforth/Beaches are going for well over $500K. Saw a 1 bed house going for $600K.

http://www.realtor.ca/propertyDetails.aspx?PropertyId=15211757

I'd say if you can afford a house in or around downtown that isn't a gut or 1bedroom nonsense like above....buy now.
 
TheKingEast said:
There's a reason why 2 bedroom shitboxes in Leslieville/Danforth/Beaches are going for well over $500K. Saw a 1 bed house going for $600K.

http://www.realtor.ca/propertyDetails.aspx?PropertyId=15211757

I'd say if you can afford a house in or around downtown that isn't a gut or 1bedroom nonsense like above....buy now.
Click to expand...

Why rush to buy, especially when you'll almost certainly be involved in a bidding war with emotional buyers?

There is a limit on how far house prices can decouple from income. Interest rates can't get any lower. At some point, people will not be able to get montages on these properties.
 
Migos said:
Why rush to buy, especially when you'll almost certainly be involved in a bidding war with emotional buyers?

There is a limit on how far house prices can decouple from income. Interest rates can't get any lower. At some point, people will not be able to get montages on these properties.
Click to expand...

It's not just income. It's supply. People don't have time to wait 2-3-5 years to start raising kids and a family. You snooze you lose. Migos seems you'll be a renter for life waiting for that tiny drop in prices.
 
"In Manhattan and its surrounding suburbs, it now takes 6.1 times the average income to buy a house, down from 7.9 times the income it cost in 2006 before the housing market collapse.
The more than decade-long GTA housing boom now has us outpacing New York, requiring 6.5 times the average income to buy a house here, up from 4.8 times the average income in 2006, Petramala said in a telephone interview."

http://t.thestar.com/#/article/busi...nges-pushing-housing-prices-out-of-reach.html

Toronto more expensive than NYC...does not make sense.
 
RZ12 said:
It's not just income. It's supply. People don't have time to wait 2-3-5 years to start raising kids and a family. You snooze you lose. Migos seems you'll be a renter for life waiting for that tiny drop in prices.
Click to expand...

It doesn't matter what people want if they can't afford to buy a property at a given price.

I'm making a killing renting and wouldn't mind one bit renting the rest of my life. I prefer it even if you take out the financial considerations.
 
Migos said:
"In Manhattan and its surrounding suburbs, it now takes 6.1 times the average income to buy a house, down from 7.9 times the income it cost in 2006 before the housing market collapse.
The more than decade-long GTA housing boom now has us outpacing New York, requiring 6.5 times the average income to buy a house here, up from 4.8 times the average income in 2006, Petramala said in a telephone interview."

http://t.thestar.com/#/article/busi...nges-pushing-housing-prices-out-of-reach.html

Toronto more expensive than NYC...does not make sense.
Click to expand...

It makes sense. Like I said the more owners the less landlords pocketing in enormous monthly income to live there lavish lifestyles. That's all I hear about now a days. Rental income. Rental income.

The rich get richer. No 'risk' no reward. Housing stock way safer bet then stocks but people still seem to be skeptical. We are not New York in terms of our city is practically getting transformed into a 'Brand New' city. Clean and Pristine image is what we are projecting to the world and eyes are on us. People want to get in on it.
 
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RZ12 said:
It makes sense. Like I said the more owners the less landlords pocketing in enormous monthly income to live there lavish lifestyles. That's all I hear about now a days. Rental income. Rental income.

The rich get richer. No 'risk' no reward. Housing stock way safer bet then stocks but people still seem to be skeptical. We are not New York in terms of our city is practically getting transformed into a 'Brand New' city. Clean and Pristine image is what we are projecting to the world and eyes are on us. People want to get in on it.
Click to expand...

None of what you wrote makes any sense.

If anything, a high ownership rate in a city is bad for real estate because there are less potential buyers.

Then you go on to say "no risk no reward" and say that housing is less risky than stocks. By your own logic, stocks are a preferable asset class.

If we aren't New York, why is Toronto more expensive? Why aren't people trying to "get in" there?
 
Migos said:
Why rush to buy, especially when you'll almost certainly be involved in a bidding war with emotional buyers?

There is a limit on how far house prices can decouple from income. Interest rates can't get any lower. At some point, people will not be able to get montages on these properties.
Click to expand...

There's no rush to buy but some people need a home and are unwilling to wait for demand to settle down. I'm looking for a place now and know I'm buying at the high point but need a place to live. I just don't involve myself in bidding wars which is why we've been focussing more on condos. Even though we have run to a few that had bidding wars. Nowhere near as bad as houses, though. I hate the whole process of pricing a house well below value only to drum up interest and sell for way above value. Doesn't sit right with me and I wish that was not allowed.
 
Migos said:
It doesn't matter what people want if they can't afford to buy a property at a given price.

I'm making a killing renting and wouldn't mind one bit renting the rest of my life. I prefer it even if you take out the financial considerations.
Click to expand...

How so?
 
TheKingEast said:
There's no rush to buy but some people need a home and are unwilling to wait for demand to settle down. I'm looking for a place now and know I'm buying at the high point but need a place to live. I just don't involve myself in bidding wars which is why we've been focussing more on condos. Even though we have run to a few that had bidding wars. Nowhere near as bad as houses, though. I hate the whole process of pricing a house well below value only to drum up interest and sell for way above value. Doesn't sit right with me and I wish that was not allowed.
Click to expand...

I get it. Everybody's situation is unique and there are more than just financial factors to consider.
 
Migos said:
Why rush to buy, especially when you'll almost certainly be involved in a bidding war with emotional buyers?

There is a limit on how far house prices can decouple from income. Interest rates can't get any lower. At some point, people will not be able to get montages on these properties.
Click to expand...

Migos said:
"In Manhattan and its surrounding suburbs, it now takes 6.1 times the average income to buy a house, down from 7.9 times the income it cost in 2006 before the housing market collapse.
The more than decade-long GTA housing boom now has us outpacing New York, requiring 6.5 times the average income to buy a house here, up from 4.8 times the average income in 2006, Petramala said in a telephone interview."

http://t.thestar.com/#/article/busi...nges-pushing-housing-prices-out-of-reach.html

Toronto more expensive than NYC...does not make sense.
Click to expand...

Migos said:
It doesn't matter what people want if they can't afford to buy a property at a given price.

I'm making a killing renting and wouldn't mind one bit renting the rest of my life. I prefer it even if you take out the financial considerations.
Click to expand...

I have to agree, some people are just financially illiterate and house horny brain-washed to believe owning is the only option.

example:
I have a friend who was renting in the south annex (between Harbord and College).
it was the top floor of a house - 1 bedroom unit with utilities (heat, hydro, cable tv) included for only $550/m.
instead, he bought a 1 bedroom condo (similar sq ft) and that same $550/m only covers his maintenance fees, property taxes and some of his utilities.
he's paying almost an additional $1400 just to pay the mortgage for the 'privilege' of saying he owns something.
so almost $1,400/m to rent from the bank for 25 years for a 1 bedroom condo :rolleyes:

forgot to mention, now he's financially stressed out compared to before
 
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