Baby, we got a bubble!?

[interchange42]

Even while the number of units which go to overseas investors is highly exaggerated by some members of UrbanToronto, 99% of the units which do end up in investors' hands end up on the tight rental market in this city, and when priced appropriately are snapped up by those who want to rent in those areas. There's far less harm from the investor market than some would have you think.

42

 

[TheKingEast]

As was mentioned earlier in this thread, the green glass at the top will not stay looking green so I'm not sure why people are still harping on it!! Let's wait until the building is finished. I bought a unit in this building as well as some of Brad's other projects and I've never been disappointed. His standard finishes are much better than most developers upgrades. I'm disappointed with the loss of the water feature, but I can understand that this was probably costly and difficult logistically to execute. Its being replaced by a public art sculpture that will hopefully be quite nice.

What projects have you purchased? For investment?

 

[Waterloo_Guy]

Even while the number of units which go to overseas investors is highly exaggerated by some members of UrbanToronto, 99% of the units which do end up in investors' hands end up on the tight rental market in this city, and when priced appropriately are snapped up by those who want to rent in those areas. There's far less harm from the investor market than some would have you think.

42

This is exactly the point I make when arguing with people about investors in the Toronto condo market. I have a friend who lived in a highrise on the waterfront. He rented from a foreign investor who bought two floors of the building.

 

[TheKingEast]

Even while the number of units which go to overseas investors is highly exaggerated by some members of UrbanToronto, 99% of the units which do end up in investors' hands end up on the tight rental market in this city, and when priced appropriately are snapped up by those who want to rent in those areas. There's far less harm from the investor market than some would have you think.

42

The investor market has had a greater impact than some are willing to admit.

 

[Waterloo_Guy]

The investor market has had a greater impact than some are willing to admit.

As long as those units are rented out, it's a good impact.

 

[TheKingEast]

As long as those units are rented out, it's a good impact.

For who?

 

[Waterloo_Guy]

For who?

Seriously?

 

[TheKingEast]

Seriously?

I'm very serious because a good, high priced rental market doesn't benefit everyone. It benefits certain groups. You don't see how investors have influenced the condo market?

 

[Waterloo_Guy]

I'm very serious because a good, high priced rental market doesn't benefit everyone. It benefits certain groups. You don't see how investors have influenced the condo market?

I think you misunderstand how prices work. Increasing the rental stock lowers prices and allows more people to afford a rental. As more investors put more rentals on the market, people who can't afford to buy--or who don't want to--will have a place to live.

It benefits people looking for homes by lowering prices, and it benefits investors. I'm not sure who you think is getting hurt. Do you dislike poor people living in your neighborhood?

 

[TheKingEast]

I think you misunderstand how prices work. Increasing the rental stock lowers prices and allows more people to afford a rental. As more investors put more rentals on the market, people who can't afford to buy--or who don't want to--will have a place to live.

It benefits people looking for homes by lowering prices, and it benefits investors. I'm not sure who you think is getting hurt. Do you dislike poor people living in your neighborhood?

What on earth are you talking about?

 

[DtTO]

What on earth are you talking about?

Supply and demand, but feel free to put your tinfoil hat back on and ignore it.

 

[cassius]

I think you misunderstand how prices work. Increasing the rental stock lowers prices and allows more people to afford a rental. As more investors put more rentals on the market, people who can't afford to buy--or who don't want to--will have a place to live.

It benefits people looking for homes by lowering prices, and it benefits investors. I'm not sure who you think is getting hurt. Do you dislike poor people living in your neighborhood?

Except this isn't how it has worked - not by a long shot. Instead what's happened is that existing, and more affordable, rentals have seen that people are willing to pay much more in rent to condo owners trying to cover their mortgage with tenants. So they raise their prices too because they know they can get it. In addition, foreign investors have found real estate in Toronto to be very cheap by international standards. Cheap for them, not for the average Torontonian by any means. Developers see they can get a higher price (driven by many foreign investors) and so they all price accordingly. Higher condo price means higher tenant rent required to cover the mortgage.

Over the past decade, rents in the city, on average, have gone up more than three to five times the usual maximum of 3% per year. And a $200k condo 10 years ago now goes for over $350k from blueprints.

Business 101. Don't sell for cheaper than you need to. Why sell for $1000 when everyone else is selling for $1500? Instead, sell for $1450.

 

[Waterloo_Guy]

Except this isn't how it has worked - not by a long shot. Instead what's happened is that existing, and more affordable, rentals have seen that people are willing to pay much more in rent to condo owners trying to cover their mortgage with tenants. So they raise their prices too because they know they can get it. In addition, foreign investors have found real estate in Toronto to be very cheap by international standards. Cheap for them, not for the average Torontonian by any means. Developers see they can get a higher price (driven by many foreign investors) and so they all price accordingly. Higher condo price means higher tenant rent required to cover the mortgage.

Over the past decade, rents in the city, on average, have gone up more than three to five times the usual maximum of 3% per year. And a $200k condo 10 years ago now goes for over $350k from blueprints.

Business 101. Don't sell for cheaper than you need to. Why sell for $1000 when everyone else is selling for $1500? Instead, sell for $1450.

I'm sorry, but this is incorrect.

 

[TheKingEast]

Supply and demand, but feel free to put your tinfoil hat back on and ignore it.

No one was claiming a conspiracy theory here. It's pretty straight forward. Feel free to continue this discussion in the Bubble thread. This isn't the place.

 

[TheKingEast]

I'm sorry, but this is incorrect.

Are you telling me foreign investors are making it easier for "poor people" as you said, to rent in this city? Foreign investment is keeping rents low and affordable? You sure that's the stance you want to take?

You think an investor buying up 20 units in a project is a good thing?