About 2.5 years ago, our family returned to Toronto from overseas.We wanted to live close to my wife's work and near good schools for the kids. We settled on Yonge and Eglinton.
We looked at mansions for 2.5 million minimum, and decided we could not afford that.
We looked at houses that were very small (or teardown) for 1.5 million.
The rental market was crappy with people asking way too much for their crapholes.
And condos were just too small- putting 4 people in 1100 sq feet was not reasonable.
We ended up buying a triplex near Davisville and Oriole Pkwy for about 1.2 million. We moved from Toronto but kept the place because we liked it. We are told it is now worth 1.6 million (listing price- probably would sell for more), after we fixed it up (200k). 3 x 3- bedroom apt (one is a basement one) and are renting it out.
It pays for itself. I just worry that we have this huge fixed asset that will be taxed to death to pay for new social programs. My wife won't let me sell it given the problems we had getting a decent place. Personally, I would sell it tomorrow smelling the bubble. And hopefully someday we will move back to the area. But until then, we just watch the bubble grow.
Real estate is hard. Yes, it is a home but it is an investment too. That was the only way we could afford a living space in a decent area in Toronto.
Will things sink 20%? No problem. 40%? I can handle that. It is when it sinks 60% that I will get really piXXed off.