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What& #39;s With Toronto Condos?
Hey, I am not in the prediction business but I am in the observation business
Simple facts: downtown Toronto rents are falling steadily and if they continue to fall prices will errode
That& #39;s facts and math not prediction
And rents will fall
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Hey, I am not in the prediction business but I am in the observation business
Simple facts: downtown Toronto rents are falling steadily and if they continue to fall prices will errode
That& #39;s facts and math not prediction
And rents will fall
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This is simple stuff all Covid related
1) No foreign students, turns out this was big, rarely talked about and looks like they& #39;re gone till Fall 2021
2) No Airbnb, not just no tourists, no sporting events, weddings, proms huge list, Fall 2021 for return but slow even then
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1) No foreign students, turns out this was big, rarely talked about and looks like they& #39;re gone till Fall 2021
2) No Airbnb, not just no tourists, no sporting events, weddings, proms huge list, Fall 2021 for return but slow even then
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3) Too many renters in Hospitality lost their jobs and moved back with parents or doubled with friends: Fall 2021 or never
4) For people with ongoing jobs, downtown offices empty, WFH but HATED cooped up experience, bought Towns or Detached likely NEVER back
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4) For people with ongoing jobs, downtown offices empty, WFH but HATED cooped up experience, bought Towns or Detached likely NEVER back
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5) Plain old immigration to Toronto (not students but workers) stalled till Fall 2021 soonest
Basically: RENTAL APOCALYPSE, this is frigging bad
Now the simplest economic principles take over, keep dropping rents till someone signs lease
Concept simple but problematic
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Basically: RENTAL APOCALYPSE, this is frigging bad
Now the simplest economic principles take over, keep dropping rents till someone signs lease
Concept simple but problematic
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Because some investment condos were cash flow negative with top rents already, reduced rents are a disaster
Why is the S**t just hitting the fan now?
3 words: Mortgage Deferral Ended....... Nuff said
As @mortgagejake correctly point out a growing issue is:
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Why is the S**t just hitting the fan now?
3 words: Mortgage Deferral Ended....... Nuff said
As @mortgagejake correctly point out a growing issue is:
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People who bought houses can& #39;t sell their condos at a price that allows the down payment to work on the new purchase, this is a emerging issue but will dissipate quickly, Realtors will make adjustments
Important to remember that these investment properties are a matrix
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Important to remember that these investment properties are a matrix
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We may think all are doomed but no: we are closing a North Etobicoke 1 BDR condo this week bought pre-sale in early 2015: $244K appraised at $470K today and with low mortgage rates only needs $1185 rent to breakeven
As always location and product but now vintage is key
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As always location and product but now vintage is key
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If bought 10 years ago and never refinanced PERFECT, bought pre-2015 likely fine, bought resale 2017 and up for investment 80% mortgage: likely No Bueno
And when more and more need to sell: we all know what will happen
Not prediction, not theory: MATH
And when more and more need to sell: we all know what will happen
Not prediction, not theory: MATH
