How Toronto Developer's $1B Housing Fund Will Shake Up Condo Investors

[@RICKRUTA]

Great analysis!

[@PrimePropertiesTO]

Ty!

[@ElectronicWasteland-p2x]

Why anyone would want to buy and rent out a condo right now is beyond me. You can get a GIC at like 4%, or rent a condo for at best like 3% yield and have to pay property tax, strata fees, maintenence etc. etc. How is the math still mathing for these housing speculators? The capital appreciation needed to make it worth it is unlikely to be coming back any time soon.

[@GreenBeanGreenBean]

GIC is 100% taxable income.... real estate yes the rental income is taxed but you can write off a bunch of things.... it is basically the old addage of taxed on personal income where you pay your tax first and then spend what is left over vs corporations that pay tax on net income (they get to deduct a lot of things first before paying taxes) Real estate far outweighs a GIC, it's not even close

[@dirtlump]

@@GreenBeanGreenBean And just what do you think Gov'ts are eyeing for Tax revenue increases that are NOT actual 'investment' based ? ie: actual construction ? Capital LOSSES in equity destruction are still losses regardless

[@ElectronicWasteland-p2x]

​@@GreenBeanGreenBean You can hold GIC's in a tax-sheltered account, aka. 0% tax. Between RRSP's, TFSA's, and other savings accounts there's a lot of room to pay no tax. You can't hold real estate assets in any tax-sheltered savings accounts. It's extremely odd how most RE pumpers throw out the amorphous "tax writeoffs" argument to justify the crummy rental income you're getting on such an expensive asset. If your yearly yield is only ~3% BEFORE taxes what does it matter what write-offs you get? Even if you manage to keep 70% of your rental income using write-offs, when you can get 6%+ easily from a very conservative stock/bond portfolio why would you be anywhere near real estate at these prices? The answer is investors owning SFH for rental are playing the lottery that capital appreciation/bubble inflation will make it worth it. It was always an unsustainable price trend however and makes it an inherently risky investment to the downside.

[@GreenBeanGreenBean]

@@dirtlump speak english, nobody understands your gibberish. Capital losses only happen to people that sell, aka violating rule #1 in real estate.... which is to never sell. As well, capital losses occur in other assets like the stock market (or bitcoin or whatever) far far far far far far far more frequently.

[@cosmoray9750]

How China solves its property crisis kzbin.info/www/bejne/sIjEeZtpdsdkpas 🤔

[@kalailam7423]

There are many still trying to stir up the realty market with all means. For common people, we needed affordable housing. The rent has taken most part of our salary. Our living standards deteriorated significantly with high inflation and rent. Praying that our job still keep or we will be forced to join the brothers in the street.

[@ShehryarKhanNSFW]

Pumpamentals! 🔥

[@bluesea990]

Good info

[@goldguilder9554]

They are smart to buy the dip now that the sentiment has turned negative it’s a buying opportunity

[@parkerbohnn]

Trump just got elected. Canadian housing RIP.

[@pd5482]

Wish I had the cash on hand.

[@dirtlump]

FORGET IT.... poor people don't pay rent !

[@Relaxlifeisshort2]

And remember there is not rent control of build after 2018. We are becoming a renters society and the developers see it coming Like NY whether you like it or not. Densification.

[@ElectronicWasteland-p2x]

Also remember that the feds are looking to shrink the total population over the next few years.

[@PrimePropertiesTO]

Densification is the name of the game for governments. They only care about the number dwelling. They dont care about the type of dwelling.

[@parkerbohnn]

The buyer will go tits up thanks to the Trump election victory.

[@O.Mark8344]

Some inside sources say the governments ( fed and provincial ) will start buying the condominium buildings in bulk to meet their housing plans that they can’t meet as developers aren’t building and also to encourage builders to start build again and hire back construction workers who laid off or going to be.

[@samben8915]

Government is a joke

[@PrimePropertiesTO]

Not sure about that. However, based on these new mortgage rules, theyre clearly trying to stimulate demand in the pre-sale space. Remember, rental buildings already had their HST shaved off.

[@davidcar4632]

Why import so many foreign people in the first PLACE? Why? People live here already struggling in housing affordability and living wage jobs.

[@milo-qh7cv]

conspiracies sounds more and more plausible these days

[@PrimePropertiesTO]

puts on tin foil hat lol

[@ilim72]

Did you consider what 1B means even if it enters the market? The article merely mentions that they started one rental tower. Sure, that will shake everything in Toronto! Next time, try politely asking for client referrals instead of using those sensational headlines.

[@parkerbohnn]

I believe the buyer will go bankrupt.

[@spyderativ2438]

Hope there are prevention of fraud here

[@PrimePropertiesTO]

in what sense?

[@alexbek]

Lower mortgage rate environment 🤣🤣🤣🤣🤣🤣

[@albertwoodeasy9021]

Yhhh

[@alexbek]

Condo shortage 🤣🤣🤣🤣🤣