toronto real estate market
People if you havent sold by now, your going to be out of luck soon..
what goes up must come down..example candian dollar, oil, commodities, stocks, and even Pres Bush. realestate market history 7 year up and 7 year down....
why toronto and other canada market will decrease in value.
more listings, less buyers. consumer confidence ( USA, UK, SPAIN, ETC) all house values are declining. Credit Crunch, no 40 Year mortgage-less first times buyers, leanders are more careful to who to leand to.. what happens in the USA happens here it takes 18 Months. its not going to crash but over 5 years. a 10% 15% decline. at best no gains if any your working for your realestate agents and the government.
if people are think of investing in pre construction and thinking there going to make a dime on there investment. think again..that time has past.
pre construction completion 2011. 1-bdrm, no parking, 650 sqft condo is going for approx $350,000 pre construction price. 10% down+10%.
simple math $350,000 aprrox closing $13000= $363,000.
how much due you think this property is going to be worth 3 years from now..
500,000 NO, 450,000 No, how can avg person afford 500k 1bdrm condo. there montly cost is $3500. you have to be making 10k a month, i dont know how many young proffesonials who make 10k a month..
saying that the prices will increase 1-3% a year. Maximum selling price 400,000... now how much do realestate brokers charge 5%= $20,000 + land transfer + lawyer = grand total aprox $35,000 selling expenses.
Now saying the value does actually increase 10%+ to $400,000 subtract 35000 for selling expenses= The Grand total your left with is a whopping $5,000. before taxes.
Now rental situtaion a 1bdrm with no parking. $360,000 condo. rents for
1400-$1600.
360,000 with 20% down= $288,000 mortgage= $1700 monthly payment + $330 maintence+ $300 property tax + hydro= aprrox $2300-2400
Negative cash flow of $800 -30%...