Toronto Condo CRASH: Getting WORSE?

Shirts must be lost. I'm worried the government thinks its their job to stop shirts from being lost.

Good analysis. Like and subscribe

this investor bonanza has to end of both the condo and home market. we are far worse in terms of regulation than in the usa. honesty is in demand and very few actually talk about it.
for the record this mess did not started with trudeau. it got worse with harper actually and with trudeau and covid it went out of control. but no mistake this thing is a structural problem.

Before all these condos went up, a study was made that all this condos will be the slums of Toronto future, the good things is that Canada is being invaded by Indias to help these condos turn into slums real quickly.

I wishmthese guys would just get to it! It's all innuendo!

inderesting. i will watch from the sidelines with my popcorn

A ponzi scene in a country that loves money laundering. What could go wrong.

Condo investments are a long term investments. at least 7 - 10 years

if you purchased a 850 sqf condo for 350K with 20% down 12 years ago , it worth 1.1 million in 2021 and it is around 950K today.
so this means you invested 70K and get 670K. with all the taxes and costs your net profit will be around 525K which is like 7X-8X. (assuming you rented it for 12 years)

How long you d have to work to make 525K net money on salary ? at least 10 years.
or What type of investment can make your 70K to become 525K NET money in 10 years ? there may be few other options only.

buy when everyone is selling and sell when everyone is buying.

When you build an economy based on selling houses to each other, eventually, it's gotta end. Don't panic, people! Soon, rates will be down by another 1% on top of the 1.25% reduction, and more in 2025. the party of selling houses to each other will begin again.

50 basis point cut. Inflation will shoot up since we import most things. Job losses. Depression incoming

Any reputable condo developers going into receivership? Or just the flashy speculators like Mizrahi grabbing all the headlines? I think the latter. Just wait 1-2 years from now when rates are back to normal levels and demand comes roaring back. You will see avg resale condos priced at $1,200/sqft.

Condo Doom Loop. Let prices fall to where people can naturally afford them. No to government intervention that keeps prices too high.

Very few people paid taxes on their assignment sales.

No new condo coming? Will create shortages in a few years.

I’m thinking back to when I was 20 in 2014 and Toronto was peaking, life was bliss. God what has happened 😢

It actually is reversing

assignment sales should be taxed at 75%.. but DF politicians are asleep at the wheel and dijing from the trough

1990 redux greedy Fks....build into the sky( free goot print) ply ignorants with SS appliances and granite counters...ever drive by one tower...balconies are empty..because clients are trapped inside...the biggest con of the modern era..and it' s completely legal

It’s a buy the dip opportunity

It’s about damn time but moving like molasses for some reason

There are so many assignment sales right now. All of them are out of touch

All of them false advertise about being distressed.

You want a good deal. Just go straight to the condo builder. They for sure have units they need to unload that weren't closed.

And maybe there is no housing shortage.

Maybe there is over supply.

It's just unaffordable.

Fortunately I went thru things in the YYZ RE market very early and young and from this experience, could see the writing on the wall with eyes closed. The premise is that when there are too many ppl on the same bandwagon with too much frothy FOMO...stay away. It will crash and get very ugly. But these lessons are never remembered from one short era to the next, as they are clouded by sheer ego & greed. We love you, Ron.

Great insights!

Awesome.. people with common sense saw this coming.. domions start from the most expensive asset which are condos

That burp sounded like a bleat. You're a funny guy Ron.

The muppet boiler room condo flipping market is dead 😂

This is why I rent out to Ontario Works and Homes First, so I get above market rent ( as long as the Social workers get a months rent in cash each year, along with their boss) 😮

worth 12 to 18 grand its a cement box

Accurate as it was

concrete box like sky coffins uck

And one other thing, unless detached home prices go up a lot (which I don't think it'll happen soon), there's not one chance in hell that anybody would downsize from a nice detached home, on a quiet street, to one of these overpriced boxes in the sky. So something's got to give.

More than 7 minutes of Toronto's condo market used to be hot. Less than 30 seconds to say that's over; a crash is likely.

Condos were never made to last. Developers, banks, governments of all stripes and sizes all cashed in huge percentages. A little piece of land that used to be a gas station or a parking lot was converted into 300 suites! Imagine the taxes collected by permits, development fees, inspection costs, bank loaning money etc. Could not last forever. The end user needs to be able to afford it. They no longer can. Poof.... all gone

Condos were never made to last. Developers, banks, governments of all stripes and sizes all cashed in huge percentages. A little piece of land that used to be a gas station or a parking lot was converted into 300 suites! Imagine the taxes collected by permits, development fees, inspection costs, bank loaning money etc. Could not last forever. The end user needs to be able to afford it. They no longer can. Poof.... all gone

1/3 of America’s GDP ‘absorbed’ by private equity and others . Inflation guaranteed . Tsunamis 🌊 of cash

Wow…so many haters! The media is a having a field day with the “condo crash”. People/investors just hold on! You will be laughing again…just a matter of time!

Maintenance fees are so high it's better to rent in some cases. Maintenance fees go up every year.

It will only "crash" if and when the Government let's it "crash". Stay tuned...

The condos are still vastly overpriced. They should be 50% of what they currently are.

I hear that veryday for the last 5y crash

Now do Vancouver

Were you referring to condo king Brad Lamb? Haha.

I bought a DOG CRATE CONDO in 2019. Even if my mortgage goes to 2% the rent still doesn't cover it. So I got 3 options, #1, bleed out for the short term, #2 find more money to put down to break even #3 Move to Florida.
Answer: well I was never good at multiple choice LOL, so I always picked ALL OF THE ABOVE.... and I ain't changing now not at my age. So all of the above it is BOB...
I moved to Florida in September, going to bleed out (negative cashflow) and finds some more money to put down to break even on the rent.
BTW - Condo crash should be the least of Canada's problems, good paying jobs are all gone, government is the only clown hiring, private sector dried up. Inflation at 1.6, well without a paycheck it might as well be 10%.
Good Luck and Good Night...

Lack of future supply is bullish for future prices. When nothing new gets built because the cost to produce said good skyrockets up, that means the value of existing product goes up.

Condos will outperform houses in the next few years easily, as rapidly declining interest rates flips most condo owners back into positive cashflow. Houses on the other hand which require a 250k income to get a million dollar mortgage will underperform... Housing also more affected by job losses (high paying jobs are declining whereas you can slap 2 or 3 people with low wage jobs to pay rent).

Owners like myself that have been around since 2000 with LTVs under 30% and declining rates are printing money.

i really enjoy watching your videos

On positive note, it is great to know that there is no longer condo shortage at Toronto and GTA. It is some kind of solution for singles or small families.

This should have never happened. The lower rates were just keep fueling zero productive fairy real asset appreciation instead of going into investment that is meaningful. Like Japan in late 80 and early 90

Wait until the farm market craps is right behind the condos paid way too much money for farmland

Another 60% downside to go. A new 2 bed 2 bath decent condo with amenities in a decent area should not be worth more than 350,000$.

Those little concrete condos scream jail cell!