Baby, we got a bubble!?

[James]

Royal LePage is predicting house prices in Calgary and Edmonton rise 2.4% and 2.5% respectively this year. I'm starting to wonder what it would take for them to project a decline in house prices.

http://www.theglobeandmail.com/repo...-sway-the-price-of-your-home/article22441882/

...and a 4.5% increase in the GTA this year, which is less than previously estimated.

Article on the same report in the Star: http://www.thestar.com/business/rea...s_could_impact_real_estate_across_canada.html

 

[Auraz]

LOL...if somebody buys that first one for anything near $650k I would recommend they be checked into a mental hospital.

With 20% down ($130k), that is a $2,400 mortgage payment at 2.79% interest. You can rent similar units for $2,100 to $2,300 per a minutes research on Kijiji: http://www.kijiji.ca/b-1-bedroom-den-apartments-condos/city-of-toronto/cinema/k0c213l1700273

An investor would be putting down $130k for the privelege of losing $600+ in cash every month. Insanity.

Cinema Towers was worst investment building of this decade IMO. I've seen people pay up to $350k with closing costs and everything for bachelor units there. Banks would not loan to them. They had to take out equity in their own primary home to pay it cash. This is why more than half the agents in our city don't know between a good and a bad investment. People are stuck with that and will be lucky to ever break even.

 

[gentlepuppies]

^^I don't know why anyone would want to buy in that cluster of towers. Far from subway, overpriced, noisy, no green space, no views for half the units.

I wonder if sustained low oil prices will lower demand for downtown or TTC corridor condos. Hope that will drive prices down relative to the suburbs

 

[kalvinone]

Cinema Towers was worst investment building of this decade IMO. I've seen people pay up to $350k with closing costs and everything for bachelor units there. Banks would not loan to them. They had to take out equity in their own primary home to pay it cash...

That's because nobody reads anything and they didn't cap anything... what a shame... as for the banks - any idea why they wouldn't let it be added to the mortgage?

 

[Auraz]

That's because nobody reads anything and they didn't cap anything... what a shame... as for the banks - any idea why they wouldn't let it be added to the mortgage?

Bought Pre-Con. Well under 500 sq ft. Appraiser came in once constructed and no major bank would finance. Private lenders were enormous rates.

 

[drewp]

Many resale deals out there, over pre-construction with insane closing costs. If anyone is deciding between the two.........BUY resale. Cinema tower is not selling very well. And TIFF with maintenance fees hitting over 90 cents a square foot has lost its value. Very dangerous buildings to buy into. Buy at Charlie down the street.

 

[Auraz]

Many resale deals out there, over pre-construction with insane closing costs. If anyone is deciding between the two.........BUY resale. Cinema tower is not selling very well. And TIFF with maintenance fees hitting over 90 cents a square foot has lost its value. Very dangerous buildings to buy into. Buy at Charlie down the street.

I'd stay away from Charlie as well and 375 King. On the other hand The Hudson is fantastic. Will have a unit coming onto the market there next month if anyone is interest PM me.

 

[TheKingEast]

Many resale deals out there, over pre-construction with insane closing costs. If anyone is deciding between the two.........BUY resale. Cinema tower is not selling very well. And TIFF with maintenance fees hitting over 90 cents a square foot has lost its value. Very dangerous buildings to buy into. Buy at Charlie down the street.

Yes. precon is now more than resale (especially when you consider the through the roof closing costs). FT and CT don't seem to be selling well at all. Investors want to get out. I also think Charlie may look nice but there's just something about that building that feels cheap. 375 King is a lovely building.

 

[cdr108]

Cinema Towers was worst investment building of this decade IMO. I've seen people pay up to $350k with closing costs and everything for bachelor units there. Banks would not loan to them. They had to take out equity in their own primary home to pay it cash. This is why more than half the agents in our city don't know between a good and a bad investment. People are stuck with that and will be lucky to ever break even.

Bought Pre-Con. Well under 500 sq ft. Appraiser came in once constructed and no major bank would finance. Private lenders were enormous rates.

... Cinema tower is not selling very well. And TIFF with maintenance fees hitting over 90 cents a square foot has lost its value. Very dangerous buildings to buy into. Buy at Charlie down the street.

with so many things against it:
* micro units
* banks won't finance
* high maintenance fees

I'm surprised people are asking near $1,000 psf.
should be under the city average and closer to $400 psf like 1KW, cosmopolitan condos + hotel, pantages, etc

 

[Auraz]

with so many things against it:
* micro units
* banks won't finance
* high maintenance fees

I'm surprised people are asking near $1,000 psf.
should be under the city average and closer to $400 psf like 1KW, cosmopolitan condos + hotel, pantages, etc

Hey, Not ever person in this city will make a wise business decision. There is some real greed in these buildings and it looks like it backtracked on them and they are now stuck with that decision for who knows how long. Lot of agents still don't use the basis of price per sq foot and feel like they can price things however they like. This might be part-time uneducated agents or who knows. I've seen U Condo assignments of around 520 sq ft asking over $620k NO JOKE.

 

[TheKingEast]

so TKE, what prices are you seeing for the dt core?
as I mentioned I saw them ranging from $650-700 psf but you said that wasn't the case but forgot to mention figures and locations.

Prices are all over the place but I'd say most are under $650 psf. Only in certain areas/buildings are they getting over that. To tell you which areas/buildings would take me forever. Maybe if I have time I will.

 

[TheKingEast]

Hey, Not ever person in this city will make a wise business decision. There is some real greed in these buildings and it looks like it backtracked on them and they are now stuck with that decision for who knows how long. Lot of agents still don't use the basis of price per sq foot and feel like they can price things however they like. This might be part-time uneducated agents or who knows. I've seen U Condo assignments of around 520 sq ft asking over $620k NO JOKE.

Part of it is the agent the other part is the delusional client trying to make a killing. As someone that is looking for a place it's frustrating to deal with these types.

 

[Migos]

Part of it is the agent the other part is the delusional client trying to make a killing. As someone that is looking for a place it's frustrating to deal with these types.

Their time of reckoning isn't too far off in my estimation. Carrying costs will bury these people and eventually they will be wishing they sold when they could.

 

[CITY_LOVER]

So, in general, condo prices in the City of Toronto, after the Bloor-Yorkville area and a few other luxury condo buildings scattered around the greater core, where prices are likely $750+ psf, it seems the Bay Street corridor is the second most expensive place to buy a condo in the GTA with prices averaging about $700 psf. Buildings East of Yonge, in the Entertainment District and King West (incl. Liberty Village) in general seem to be $500-$600 psf. Perhaps the same price range can be assumed for Yonge St.-Clair and Yonge-Eglinton? North York corridor, from Hwy 401 to Finch, seem to be about $400-$500 psf.

 

[Condo George]

http://business.financialpost.com/2...ut-for-first-time-as-oil-rout-damage-deepens/