Toronto [Pre-Construction] Condos became wildly miss priced 6 years ago
And no one cared
People just kept on buying with a ridiculously false belief rents would increase massively & mortgage rates would be 2.49% forever
Buyers would snap up Pre-Con Condos at $1250 per sqft when Re-Sale Condos across the street were offered at $825 per sqft
WTF? It made no sense
It did not. And now the sense is remaking.
expect the two governments to step in. this is vote rich territory for chubby Dougie and the boy stupid
Yup, a tax rebate on 2/3 of the capital loss.
Everyone is an investment genius when markets are going up.
Ain’t that the truth. I’ve listened to them all over the years: farmers, condo-buyers, cannibas investors, etc. Thank God there’s just that wee vestige of canny Scot that held me back from the various get rich quick opportunities.
As an aside, Ontario is running expensive ads on Fox News touting its cuddliness to the US. Trump has everyone sitting up straight. I wonder how they got this ad made so fast. Almost as if they expected it.
In order to obtain a loan … you must obtain an appraisal. When I bought my first home … I agreed to the selling price of $144,500.00 (which was just about $40,000.00 over my budget). The appraisal came in at $138,500.00. So I told the seller, I could pay no more than the appraised value of the property. They agreed … and I’ve lived here since 1983.
So … where were the appraisals for these overpriced, overhyped, Tokyo-styled bureau-drawer apartments? Inflated a bit? Yeah … the system is broken.
https://youtu.be/AvZfb5t8DnA?si=DZYyFQQ6-HnWoeCZ
It’s not just the condos …….
$1250 a sq ft is insane.
I paid $126 per sq ft for my duplex in 2020.
I get taxed like it’s worth $180 per sq ft after the new neighbor overpaid, triggering last year’s ridiculous assessment.
I know, extreme examples, big city vs medium, exchange rates and all… still absolutely insane.
Are these condos covered in marble with solid gold trim?
l picked up my fixer-upper 2003 $58 a pop.
and the fixing up pretty much all done now (and it sure needed it!).
cashing in my chips any time starting March
good luck all, those getting in, staying in, or leaving the market.
Had a condo in Cambridge; sold in 2022. Missed the peak prices for my building by four weeks, but am happy with what I got out of it. Just checked realtor.ca now and prices in the building are down about $150K. So I am grateful. Only downside is that I ended up just outside of Saskatoon. Gratefulness sometimes has a run for its money.
Is just outside Saskatoon a downside Lick?!
We just got “blessed” with a new and more progressive city council led by the XX Charlie Clark, Cynthia Block’s turn to run Stoon down some more. Property taxes going up again by nearly 6% after last year’s 6% hike.
While Saskatoon is Little Toronto on the Prairies, my little town is much like Deliverance. But with fewer canoes and more rape.
Actually, no canoes at all.
This is a failure people – each generation – are predisposed to. Last time Helsinki had really hot market was about 35 years ago. Then came a collapse that took 50% off the prices. It took several years before people were willing to buy anything. 10 years later, people had interest rates at 2-3 per cent, but were still reluctant to buy.
Now that all has been forgotten. Couples who have loans often are 300-400k€ in debt. It’s tough now for them if something takes 20% off the house resale value.
But in 1992 the situation was far worse – people lost their jobs, their firms went belly-up, and banks saw their opportunity and forced them to sell their property quick – only to buy that property and sell it off with profit.
The government compensating the banks for making people bankrupt was the icing.
I am old enough to remember a real estate crash of a previous era where the saying was: “what is the difference between a condo and syphilis” A. You can get rid of syphilis. Seems that those times as returning.
They need to, so people can remember how to say “that’s to damn expensive”, “fk the banks”, and “don’t trust government”.
I’d never buy a condo. Read the Schedule “C” to the Declaration in Ontario – you basically own the paper on the drywall, the inside surface of the windows and not much else. That’s a lot of $$ to pay for air. New builds are sold with low condo fees, but once the building is registered, they only go up.
Some years ago I was listening to a real estate show where they were discussing buying a condo vs a house. One of the participants said that when the windows on your house leak, you can always replace them, sometimes even by yourself. Try doing that on a multi-storey building. His advice was that, if you do buy a condo, plan on selling within 10 years before all the defects really become obvious and you’re hit with a special assessment that you may not be able to afford.
Price Theory asserts that price discovery occurs (a sale) when all information possible is known by both the desirous buyer, and determined seller. Here’s the conundrum, what do prices resemble when the information “known” is provided solely by a corrupt MFM? Usually a screaming bull market that makes no sense to a “rational investor”. Karma is not your friend and corrections from lies told are extremely large if history is any guide.
Tulip bulbs, anyone? (Yes, these corrections will be the stuff of legend. Participate at your own peril.)
Is Robert alright?
I don’t see any Reader Tips item for December 3, 2024. 🙁
Everyone loves the effortless capital gains in real estate during the boom phase. When those gains are replaced by capital losses…not so much.
“Pre-Con Condos at $1250 per sqft when Re-Sale Condos across the street were offered at $825 per sqft”
How much of that price difference is made up of the insane development fees that Toronto charges, and the extra that they extort in order to get a variance on zoning?
The building beside us has multiple units still in possession of the marketing company, they even tried to sell them off with “0% mortgage for 3 years” – of course the prices were inflated in order to hide the spread, but there didn’t seem to be any takers.
For that price difference you can pick up a 2 bed/2 bath walk-up condo in Redmonton.