Torontonians have too much Money

[SenecaBoy]

So I was looking to get a Condo downtown at the new 300 Front street tridel building that is going to be built, just past by there the other day and saw the signs I said why not

Just for laughs, I thought Id ask about the pent house suites. They range in price from 1.2 mil to 2.0 mil fully optioned out. Anyways I was told there were sold out! LMAO...how? ALL SOLD OUT? apparently the dinky little suites for 400k arent but the 1.2 mil to 2.0 mil penthouses sporting like 2700+sqft are all sold out...

NO WAY! I am impressed with how much money is running around out there. Also another bulding I checked all the 800k - 900k suites are gone! rolfmao! but the 300k suites are still available....

I did this with a few other buildings as well downtown and damn was i shocked, serious buyers out there yo!

 

[Rockslinger]

On the other hand, Conrad Black recently had to take out a $6million mortgage on his Bridle Path mansion.

 

[Rockslinger]

Also another bulding I checked all the 800k - 900k suites are gone! rolfmao! but the 300k suites are still available....

Let's buy one of these units and rent it out to a tenant (lowest life form on the planet) and then sell the unit when it doubles in price. Hee, hee, hee.

 

[GotGusto]

Are we due for a housing crash of our own?

 

[SenecaBoy]

Are we due for a housing crash of our own?

I think it might be in the works

 

[toguy5252]

On the other hand, Conrad Black recently had to take out a $6million mortgage on his Bridle Path mansion.

And he just lost his Palm Beach manse.

 

[blackrock13]

And he just lost his Palm Beach manse.

I feel for this man, not.

I was downtown yesterday and saw a billboard announcing the building of new condos on the site STARTING at $1.2 Mill. Not that many middle class workers could afford the taxes on King St but I just shake my head sometimes. I remember having a client whose 3000 sq. ft. condo on Front St was also his office and it worked well. We worked, ate, and drank in comfy surroundings.

 

[Rockslinger]

And he just lost his Palm Beach manse.

Bought with money he stole from Hollinger shareholders in the form of $400 million of "management fes".

 

[Rockslinger]

I remember having a client whose 3000 sq. ft. condo on Front St was also his office and it worked well.

This is one reason why I fear Toronto is in a death spiral caused by commie politicians driving up the cost of taxes and services. Here is an example. One of my friends is an accounting manager for GE. He works primarily out of his home in the suburbs because he has telephone, Internet, fax, printer, etc. His staff which used to be located in DT Toronto are in India (yes, in INDIA!).

 

[SenecaBoy]

This is one reason why I fear Toronto is in a death spiral caused by commie politicians driving up the cost of taxes and services. Here is an example. One of my friends is an accounting manager for GE. He works primarily out of his home in the suburbs because he has telephone, Internet, fax, printer, etc. His staff which used to be located in DT Toronto are in India (yes, in INDIA!).

yup a lot of this is happening in my company as well, lot of jobs are being sent to India

 

[Steve Harper]

yup a lot of this is happening in my company as well, lot of jobs are being sent to India

And a lot of Indians are getting jobs in the GTA.

 

[james t kirk]

So I was looking to get a Condo downtown at the new 300 Front street tridel building that is going to be built, just past by there the other day and saw the signs I said why not

Just for laughs, I thought Id ask about the pent house suites. They range in price from 1.2 mil to 2.0 mil fully optioned out. Anyways I was told there were sold out! LMAO...how? ALL SOLD OUT? apparently the dinky little suites for 400k arent but the 1.2 mil to 2.0 mil penthouses sporting like 2700+sqft are all sold out...

NO WAY! I am impressed with how much money is running around out there. Also another bulding I checked all the 800k - 900k suites are gone! rolfmao! but the 300k suites are still available....

I did this with a few other buildings as well downtown and damn was i shocked, serious buyers out there yo!

The high end places are probably not sold out. They are speculating that the market will increase between now and occupancy. There is way more mark up on the high end units. So they sit on them and roll the bones.

 

[odie999]

It sounds like harmonized HST/GST will be rebated on units less than 400k

another bulding I checked all the 800k - 900k suites are gone! rolfmao! but the 300k suites are still available....

I did this with a few other buildings as well downtown and damn was i shocked, serious buyers out there yo!

there probably is not too much money, there's too much CREDIT.

At these crazy, crazy low rates you're insane NOT to buy.

Moral hazard, IMHO worse than Greenspan/Bernanke/Paulson/Geithner.

 

[HAMSTER INSPECTOR]

I her Conrad has a butler in the joint by the name of Blow Joe.

 

[The Options Menu]

Are we due for a housing crash of our own?

We've been in a slow motion bubble for the better part of a decade, and prices held up pretty well during 'the recent troubles' and the modest changes in mortgage rules. (For condos anyway.) There's a good chance the condo market will modestly dip and then move sideways, or just move sideways for some protracted period of time... As opposed to a more pronounced 'splat' in prices. (IMHO.)

The condo market isn't completely rational in that there has been huge mental buy in by young working professionals that says, "I'm building equity" as opposed to, "I'm paying a mortgage that is equivalent to rent, and association fees that are about 1/2 or 1/3 rent, to buy something that is apparently part of a slow building bubble." So long as that little bit of irrationality is there, and there is a fairly strong renewed desire for people to live near where they work, the risk of prices going 'splat' should be modest. (Modest dip and sideways at a certain point is inevitable, IMHO.)

 

[ClassAct]

there probably is not too much money, there's too much CREDIT.

At these crazy, crazy low rates you're insane NOT to buy.

Don't you need to still put 25% down before you can even get a loan? 25% of $1 Million is still $250K. And that means there are all these buyers who happen to have $250K in cash to begin with. Where did this money come from? It's kinda hard to believe many 20-something or 30-something couples have saved up so much for a downpayment. So, could this just be hot money from Asia, like it was in the 1980's?

In any case, this real estate bubble looks to be much worse than the one that transpired in the 1980s...

 

[odie999]

TWENTY FIVE PERCENT DOWN ?!?!!!?!?!?!???!?!??!

d00d, did you just fall into a time warp in 1970 & get dropped here in 2010?

Don't you need to still put 25% down before you can even get a loan? 25% of $1 Million is still $250K. And that means there are all these buyers who happen to have $250K in cash to begin with. Where did this money come from? It's kinda hard to believe many 20-something or 30-something couples have saved up so much for a downpayment. So, could this just be hot money from Asia, like it was in the 1980's?

In any case, this real estate bubble looks to be much worse than the one that transpired in the 1980s...

Garth's a bit extreme but he gets some numbers

http://www.greaterfool.ca/2010/03/21/canadas-action-plan/

In fact, one bank economist estimated the next day that this change could knock more than 200,000 first-time buyers out of the market, since they simply wouldn’t qualify at 5.3% to scoff enough borrowed money to get a home with just 5% down. Hey, maybe the feds were responsible and prudey little beavers after all. You know, protecting us against our own silly desire to borrow money at the dumb rates they gave us.

Or maybe not.

In recent days, Canada Mortgage and Housing Corporation has sent a “Clarification on qualifying interest rate and policy changes” letter to the lenders of the nation. This one contains yet another wrinkle, or maybe even a rapid backpedaling – and seems to make a liar of the minister of finance.

 

[james t kirk]

Garth's a bit extreme but he gets some numbers

http://www.greaterfool.ca/2010/03/21/canadas-action-plan/

In fact, one bank economist estimated the next day that this change could knock more than 200,000 first-time buyers out of the market, since they simply wouldn’t qualify at 5.3% to scoff enough borrowed money to get a home with just 5% down. Hey, maybe the feds were responsible and prudey little beavers after all. You know, protecting us against our own silly desire to borrow money at the dumb rates they gave us.

Or maybe not.

In recent days, Canada Mortgage and Housing Corporation has sent a “Clarification on qualifying interest rate and policy changes” letter to the lenders of the nation. This one contains yet another wrinkle, or maybe even a rapid backpedaling – and seems to make a liar of the minister of finance.

Garth is the greatest Contrarian Indicator EVER in the history of the planet. He is so wrong usually it isn't funny.

5 years ago, he was saying that Canada should scrap the Canadian Dollar and adopt the US dollar. (At the time, the Canadian dollar was worth 63 cents US!! Mind you, Sheri Cooper - Chief Economist at BMO was saying the exact same thing.)

In 2000, or 2001 Garth Turner was saying that Nortel was a screaming buy at $65.00 a share and that owning a house was the worst investment you could ever make. Well, Nortel went broke and the price of Real Estate in Canada has doubled and then some since then.

Garth is a moron.

Garth has always hated Real Estate and he's always been wrong and will continue to always be wrong. For 1 simple reason. Your average guy wants to buy a house to have a place to sleep and have sex with his woman - he doesn't give a shit about the stock market. It's that simple.

 

[odie999]

I just used that to get the numbers

Use GT or use someone else

http://www.google.ca/search?num=100...btnG=Search&meta=&aq=f&aqi=&aql=&oq=&gs_rfai=

Garth is the greatest Contrarian Indicator EVER in the history of the planet. He is so wrong usually it isn't funny.

5 years ago, he was saying that Canada should scrap the Canadian Dollar and adopt the US dollar. (At the time, the Canadian dollar was worth 63 cents US!! Mind you, Sheri Cooper - Chief Economist at BMO was saying the exact same thing.)

In 2000, or 2001 Garth Turner was saying that Nortel was a screaming buy at $65.00 a share and that owning a house was the worst investment you could ever make. Well, Nortel went broke and the price of Real Estate in Canada has doubled and then some since then.

Garth is moron.

Garth has always hated Real Estate and he's always been wrong and will always continue to be wrong. For 1 simple reason. Your average guy wants to buy a house to have a place to sleep and have sex with his woman. It's that simple.

 

[eurotrash1970]

This is because the middle-class (those that can afford the lower-end units) are a dying segment of the population. The truly "rich" that can afford the million+ condos stay rich (mostly) and continue to buy the high end units. Why? Because all the middle-class jobs are going to the low wage countries. The poor population is what is expanding.