As Ron Butler informs us in a recent commentary on X, the Toronto condominium market is looking a little shaky these days.
Here are the highlights:
Call yesterday about a $920K Pre-Con Condo purchase…
20% deposit & the Buyers instinct is to walk away. Value of that $920K purchase today at BEST $800K at worst $725K but FALLING…
What they really wanted was to walk away from the Pre-Con Purchase because even if they went ahead & closed on the unit they estimate they would lose $1500 month on what rent they could get versus their monthly costs…
The Developer would sue & would win & also win “Costs”. These Buyers would pay a chunk of the Developer’s legal fees…
These are calls happening all over the GTA daily….
Unroll here.
Can’t they just rent out the condos to the feds to use for immigrant housing?
I’m sure Maserati Singh would support, provided he got a cut of the proceeds.
Lived through the disaster that the Lieberals brought to Alberta with their “National Energy Plan” which was essentially “crew Alberta”. Had the plan had anything other than to mess up the west, Québec Hydro would have been told to stop selling (at a huge profit) to the US and to turn their power lines west to give relief to Nova Scotia and New Brunswick. Toronto didn’t suffer at all.
Now their overheated market is collapsing, am not overly concerned. Had friends wo walked away from their homes (fortunately, there was still the “dollar” deal here) and moved away because of our collapsing economy. We rode the roller-coaster that was mortgage rates up and down; survived only because had our mortgage with a credit union which allowed us to pay more than the minimum each month.
“They “believed” they could qualify for a bank mortgage if they decided to close but they have other rentals so I wondered out loud just how easy that would actually be.”
Poor investors, happy to take the upside when the market is hot, cry when the market tanks. Here’s the world’s smallest violin…
this is hardly a disaster for those who by luck or design are now positioned to buy into the mkt, it having adjusted downward enough to reach a lower equilibrium, ie no risk of further huge drops in price. *somebody* will own the properties, be it a shrewd buyer or a bank ie essentially the bank shareholders.
my ex was the most gifted negotiator lve ever seen, we made an offer on a beautiful tri-level in st catharines aka port dalhousie, seller balked. *she* waited an entire year, opted for a different agent, went BACK with a 2nd offer (l think it was slightly higher but far from asking).
lived there about 4 years. very little improvements req’d, (a quirky thing, the basement lights had to be on for the doorbell to work lol).
she got transferred to oakville, the closest we could afford was burlington, sold the tri-level shortly before GM closed their axle and V8 engine plants. (whew!!!)
anyways, nice to see this is happening to liberal voters.
be careful out there buyers when the mkt is hot.
you gonna be ‘on the hook’ either way:
https://www.youtube.com/watch?v=TTMd4vndfkI
More crashing please!
One of these days I’ll have to settle down, but I must admit I was thinking of pre-Liberal racist prices.
Who knew canadian voters would be so ignorant as to elect NDP/Liberal racists three times in a row?
+++P…. sadly we all saw it with our own eyes.
In the early 80’s, because I was single, self-employed and female, even though I had $ 60,000 down payment on a house priced at $ 75,000, I needed a mortgage of $ 20,000 (to cover legal, moving and land transfer taxes) at 16% interest. Almost did not get it. I also never qualified for a line of credit until the early 2000’s because of the 3 strikes against me. I have always purchased “fixer-uppers” (I was a commercial interior designer) and did the work slowly over the years and as I could afford it. I would NEVER buy a property before it was built – and yes, I realize that there are many new houses built on so much down, balance before moving in. I have needed to be “extremely cautious” with money, as I did not have access to it.