alertmeipp

I live in Toronto. Still bidding war.... and price seems going higher still.. now the selling point is shortage of supplies... u better get in now.

GTA detached now up like 32% YoY..... no impact whatsoever from the mortgage rule changes yet.. Hot money from Van...blah blah... Wayne's $2000 cash back to help first time buyer is a joke.

leverage works both ways. there is no such thing as permanent leverage.... there are almost risk free ones and u know what happen when those types of leverage work the other way.

http://www.cbc.ca/beta/news/business/real-estate-agents-caught-breaking-the-rules-on-marketplace-s-hidden-camera-1.3825841

The town house in my neighbor went from 600k to 900k in 3 years. And no sight of slowing down. Richmond hill. Ppl are making lots of money. And Ontario gov loves the taxes.

the tax by itself is not significant. but the fact that a provincial government is starting to act against a house market is big. today maybe 15% taxes.. if that does not work, expect other measures.

the sad/funny thing is even if it comes down 30%, it just back to 1? or 2 years ago price. hardly any ppl get hurt.... only those that carry more then they can.

house prices up 20% and 30%. A responsible government should not let this continue. Either this will end ugly or really ugly now.

Any particular names?

what is the best way to make money when Canadian Real Estate corrects?

just search Kijiji for "Assignment Sale" in Toronto, easy money IF things keep going up.

come on, the sales data isn't fake.

all u have to do is to talk to some realtors, they have all the sale records

Which area u live? Ask anyone in Toronto or Vancouver. Those numbers are for real.

I live in GTA . Those numbers match what i see. Actually in some area, its higher.

the bank is not taking on much risk $10m first mortgage on a property worth $30m bank only needs to recover the $10m or 33% of purchase price. can Vancouver real estate fall 66%? Banks will be in big trouble IF the real estate bubble goes burst.. remember it won't be just from mortgage. the RE bubble has fueled many other credit boom.

How do they get mortgages for these properties? Where's the income coming from? If there's a default, is there recourse? Many dont need mortgage. Not sure how they move so much cash over given the Chinese regulation...

I think the gov could have done something had the econ is not so bad as it is. but in LT when larger part of spending is coming from home equity ... they will be in for bigger trouble.

It's happening in toronto suburb. Other areas in Toronto might not be as severe. I feel many ppl here are not using cap rate ... they just think how much it will go up next year. You can see many large double garage houses being rented out for 3k 4k but they cost 1.5m to buy. :o Just check Richmond Hill, Markham and Scarborough. Montreal Ottawa for sure closer to 4 5%..

850k house rent out for 2k per house. property tax around 4k. cap rate ~2% assume no expense other than property tax, (i.e. no agent cut, no maintenance, etc....). :o

say u make 100k in Canada, u take home about 5k per months, with 200k down, and 3% mortgage (historical low)... the max u can afford is like a 500k house. http://www.canadamortgage.com/calculators/affordability.cgi Average Vancouver income is 75k. :o

very few asking, many bids, have none, get one, have one, get more. price spiking. buy now or pay more later, it will never come down, even if it does, it will be small correction, leverage up, ratios don't matter, it's the new era. sounds familiar?

not only expected, but expected for the foreseeable feature.

Your statement is a bit weak on evidence. In Toronto... thats pretty well known

there sure are LOTS of speculation... many houses being bought for 1m+ is being rented out for mere 2k per months.. that's gross rent. the reason? flip it next year for 20%+ profit. Many (mostly condos) are just left vacant. To say this surge in pricing is mainly because V & T are world class cities is a bit weak on reasoning.