js97
Senior Member
I'm trying to find the drive behind this insanely inflated Toronto Real estate market.
I went to see an open house on Galt ave. (Jones and gerrard). Detached, possibly 1200 sqft 'duplex' with a lipstic paint job. (older appliances, no nice finishes). listed at 419k, it sold for 475!!!! - the only thing it had going for it was the fact that it was detached.
Exacly like this one. http://www.realtor.ca/propertyDetails.aspx?propertyId=8737314
And now I hear 550 sq ft condos for 300k.....
Are consumers blindly getting into the fad of 'home buying' just for the sake of the title? I recently spoke to mortgage broker and she told me that most of the mortgages are now 35 yr amortization periods... with fixed payments (so if interest goes up, and it will, payments stay fixed,- extending the length of the amortization).
now to me, this is simply financial mismanagment. If you think of the risks involved in home ownership and the rewards(300 dollars a month into equity?) why are people still scooping up property like no tomorrow?
The savings you receive from a low interest rate is off-set by the extended amortization period. Your in essence 'renting' from the bank, with the potential to take on capital gains in the furture.
Are Torontonians blinded by possibiilty of the gains people made in the last 8 years and expect the next 8 to be the same???
insane!
I went to see an open house on Galt ave. (Jones and gerrard). Detached, possibly 1200 sqft 'duplex' with a lipstic paint job. (older appliances, no nice finishes). listed at 419k, it sold for 475!!!! - the only thing it had going for it was the fact that it was detached.
Exacly like this one. http://www.realtor.ca/propertyDetails.aspx?propertyId=8737314
And now I hear 550 sq ft condos for 300k.....
Are consumers blindly getting into the fad of 'home buying' just for the sake of the title? I recently spoke to mortgage broker and she told me that most of the mortgages are now 35 yr amortization periods... with fixed payments (so if interest goes up, and it will, payments stay fixed,- extending the length of the amortization).
now to me, this is simply financial mismanagment. If you think of the risks involved in home ownership and the rewards(300 dollars a month into equity?) why are people still scooping up property like no tomorrow?
The savings you receive from a low interest rate is off-set by the extended amortization period. Your in essence 'renting' from the bank, with the potential to take on capital gains in the furture.
Are Torontonians blinded by possibiilty of the gains people made in the last 8 years and expect the next 8 to be the same???
insane!