Investors RETURN To The Canadian Real Estate Market with

[@TomStorey]

Happy Sunday! Always great chatting with Zhen. Hope everyone is enjoying the weekend.

[@SteveKarrasch]

Z!

[@quixomega]

Recently the Chinese property market fell off a cliff, with properties losing more than half their value. This was caused by a lot of small investors speculating on properties. Their economy hit a serious downturn and it all fell apart. Canada has seen a large increase in property speculation over the last 20 years and we're now facing an economic downturn. I'm not saying the same thing will happen here, I just wouldn't buy any new investment properties right now.

[@pikachu-mx6hi]

There is a big difference. 1) China has little to no immigration, and its population is decreasing. 2) In Canada, 60-70% of units must be presold before a project is approved by the bank, whereas in China, real estate developments continue regardless of presale numbers. You are not comparing the same market fundamentals.

[@dootdoot1867]

China has a population crash. The parents own and their kids are not looking to buy, but inherit, all their ambitious intelligent workers goto korea for better pay, Korea has a far worse population crash. Construction in China is essentially a jobs program. They build it, and then they come. Canada has to get them to come before they can build. The only crash on the horizon is the handoff in assets from the boomers to the millennial's.

[@the_ikiru]

Other people will be buying the properties that you won't be buying.

[@xinleizhang3209]

@@pikachu-mx6hi That is true. But, there are also similarities in term of standard of living. Higher property price relative to income encroaches on people standard of living. It raises risk for investment, innovation and development. There's a limit on how high a property can get before people feel uneasy. If people see no hope in sight, then they rather choose to spend it on experience or move rather than purchasing property. Why play a game when the playing field is to your disadvantage. This is especially true for young people. If it's purely just about market fundamentals, then property value would have always gone up in perpetuity. But if we look at history in the past thousand years across all civilization, this is not how it works. Although Canada has immigration/more conservative bank policies and regulations to hedge against risk China is facing, it can still translate to similar outcomes, its just a matter of intensity.

[@mgdubya27]

Part of the reason I sold my 2nd place was actually because of the property manager. They sucked so bad and issues were adding up. Now that priniple is locked in at 5% and I've never slept better. I'll look to get back into RE in 25-27.

[@JatinderShergill-g5c]

Do not speak loud ! Bill Ferguson is watching and will be here any time 😂😂😂

[@DummMoney-rr1fi]

He's too busy shopping the downtown Toronto market 2014 prices ATM. I hear he's shopping with TK

[@vizcachu]

Are those investors in the room with us right now?

[@djaddycanada]

I think a mandatory option should be implimted on all MLS listing if you are pricing low and holding offers. This will save everyone the headaches of having to call the listing agent and burning time.

[@TheTomStoreyShow]

Most of the time it’s included, but only realtors can see. I agree, public should also be able to see.

[@adamnarbeaux5898]

My two faves. Tom & Zhen! On One Show!❤

[@SteveKarrasch]

Hey!

[@adamnarbeaux5898]

@@SteveKarrasch Lol. Apologies Steve! This is the first time I’ve ever seen ya…

[@CorporateShill66]

Rates aren't low enough yet. They only dropped 75 points. Need those mortgage rates to drop intos the 2s

[@jeanneb3418]

I love you guys. Just found you a few months ago and I’ve learned so much. Keep up the great work!

[@SteveKarrasch]

Love you too!😘

[@susiedias1956]

hello flat real estate market for a decade like the 90's

[@SteveKarrasch]

We can only hope.

[@dimitrychekov1136]

Good old Canadian shenanigans! “Successful” appraisal moves more liability from the bank/developer to the “investor” (a.k.a. sucker).

[@corbanbrook]

Im interested to know what happens to the construction industry between now and 2029. 2024 was difficult for any new projects to sell the 70% threshold to launch and doubt developers will be able to launch anything in 2025 either so we are looking at at least a 2 year window where nothing is being built.

[@KrisT1622]

Great show guys! Amazing insights and perspectives.

[@pilotgirl5953]

Great guest and great show guys.

[@alexhakimi7642]

Spring market going to be much better

[@SteveKarrasch]

Said the sellers.

[@sanhtu77]

​@@SteveKarraschspring market + lower interest rates = better. its not rocket science. suits dont make you smarter.

[@TomStorey]

@@sanhtu77 I'm surprised you think Steve wears a suit.

[@argeldelacruz9545]

2nd week in a row listened to the whole podcast great points bros very interesting

[@dontmissaday]

pump pump pump pump pump it up

[@lakdev6297]

😂😂🤣🤣

[@TheTomStoreyShow]

Great song.

[@GKRE]

Lol 😂

[@salut1237]

Are you bleeding, sir. Or have you been saying the same for the past like 15 years. (Because if the latter, respect to you.)

[@EricAlHarb]

@@salut1237he who laughs last…laughs hardest

[@fofal]

where will the bottom bag holders (the renters) get more money to pay for rental properties for them to appreciate in price? Rents are already sky high lol

[@DummMoney-rr1fi]

best two RE investing decisions I ever made, I sold the only condo I ever owned this year and I rescinded on the other condo I almost ever bought in 2022

[@nospm1244]

Great show guys- say overleveraged specs with smelly pants

[@batralawgroup6354]

prices may be down by 20% by next 2 years, all parameters support it. So no need to manipulate!!!

[@TheTomStoreyShow]

The leafs may win a Stanley cup. All parameters support it. It will definitely happen…

[@SidCV-q2b]

Great watch as usual. Love this show

[@nunol1554]

Real estate agents predicting the market lol

[@TheTomStoreyShow]

Never listen to people who know their industries. That's what KZbin commenters are for.

[@richpickard1680]

What people in their own industry would say negative things about it. That's not good for business.

[@richpickard1680]

That's like me being an electric car salesman and saying industries going to crap Wait a couple years and then by an electric car for a lot cheaper.No good salesman will ever do that

[@TheTomStoreyShow]

The most viewed real channels on KZbin are negative about real estate.

[@fofal]

@@TheTomStoreyShow it used to be the other way not long ago 🤡

[@JatinderShergill-g5c]

Things r changing in Langley Cloverdale as well

[@dootdoot1867]

The land is at capacity for the type of build. There isn't much left. It's already eating farm land at alarming rates. Soon it's only up that can be built.

[@glengarbera7367]

The bank is giving blanket appraisal because they dont want to take a lose their books.

[@andypapagrigoriou1010]

Montreal is the 2nd biggest city of Canada. And you guys never touch on the real estate market here. Canada does not revolve around TO region only!

[@TheTomStoreyShow]

We did a full episode on Montreal last year.

[@SteveKarrasch]

Nobody watched it.

[@andypapagrigoriou1010]

@@TheTomStoreyShow How much has the Toronto market changed in the last year. A year.... I think we due for a Montreal update please.

[@nettoyageadriance]

LOL You guys are cute... $50/hr for cleaners. My real-estate agent clients get charged $250/hr (starting) for me to show up and clean their windows or pressure wash their patios... On my bicycle.

[@chrisT16161]

GM, happy Sunday!

[@SteveKarrasch]

💪

[@nuwanhettiarachchi3023]

19:10 100% - property managers, problems.

[@MyYoutube-yb7xc]

Great guest and a great show! But, can you please translate the price drops into thousands and hundreds of thousands of dollars instead of per square foot pricing for a realization of the grave situation. Some people may not feel 1000 to 1300 as a big difference, but on an 800 square feet unit, it is 240,000 dollars, possibly life's savings for a lot of people.

[@Matt-YT]

Per sqft makes more sense

[@DummMoney-rr1fi]

you should have said regular people, the people that are buying pre sales are largely people buying additional properties as investments.

[@rzmk8620]

Call it Crash folks, if you listen to your realtor, you will end up in bad loans. Worst is yet to come. Every pre con buyer, I know is loosing deposit.

[@samsonsham]

It depends, unit 613 1661 Quebec St 1069 sq ft sold for 1605000 in May, 1501/sq ft.

[@maxympatenaude138]

I did the ScotiaBank at The Well !! Love the concept but what a fuck up job to work on.

[@frapeyou]

Lol owning a cashflowing negative "asset", if thats you, please read rich dad, poor dad

[@DummMoney-rr1fi]

lol

[@matta7215]

Illuminating

[@dootdoot1867]

Legitimate question, if enough pre-sale walk away from deposit does this force builders to re price for current market conditions? Can they even do that with all interested parties involved without triggering some sort of action? Pre-sale also makes interesting tax games with losses and depreciation.

[@hamidkhbl]

Where do you all even find wired headphones these days? 😂 Do they still make them?! Time to go wireless, guys! 😉

[@TheTomStoreyShow]

Never.

[@adamnarbeaux5898]

Getting $5/foot in the entertainment district

[@Matt-YT]

Investors will have to take a loss?! OMG Is that not the risk of investing?!

[@LittleDrklng]

Saving the big banks + multi-million builders = Good. Passing Passing. Risks to Canadians I. Risk = GOOD. This is gross.

[@dinoa.17]

Toronto Vancouver ll b hit by biggest real estate crash imminent

[@lattices22]

i rent at 50 cents per sq foot

[@alkeshkbarot]

Do not pump coz other realtor shows weekly report on you tube as well

[@TheTomStoreyShow]

We are the only real estate show on KZbin.

[@alkeshkbarot]

Team Sessa for accurate numbers for your real estate show

[@fofal]

Eventually we will end up with an extreme government that will crack down on all this BS lol

[@SteveKarrasch]

Isn’t that what we have?

[@dinoa.17]

Canada in depression noooow pls wake up people

[@vert911]

Sell it and buy a condo, Steve. Maybe a Gucci will rent it from you.

[@DummMoney-rr1fi]

lol, condos are dead meat.

[@vert911]

@@DummMoney-rr1fi they manage themselves. did you even watch?

[@DummMoney-rr1fi]

@@vert911 haha, ya but the rents are below what makes sense for condos. Adding a suite or two to a SFH for 5-100k will boost your income by thousands a month. The math doesn't lie.

[@Jo-mf2vu]

​@@vert911 Manage themselves while losing money every month and seeing little appreciation till 2029.

[@RC-fh2lk]

@@DummMoney-rr1fi I considered buying rental property but settled on a 2 bedroom basement apartment in my primary residence . Best financial decision I ever made!!

[@stephenfermoyle4578]

more chitty chat

[@saveourplanet4204]

Very informative and entertaining episode! Please have this guest on again!🎉

[@robertgrey5993]

Investors are a plague on the real estate market.

[@A__SB]

10 years for recovery? LOL! More like never!

[@TheTomStoreyShow]

Got em

[@Relaxlifeisshort2]

Steve is 100% rhats how you get tenants Property manager is a waste of money with 5 properties under. Another note If you can get into a single detached home now is the time. Prices not going to drop to levels people wish Same concept over the past 30 years timing.

[@phyllisbradshaw2830]

I'd be interested to know what Millennial Moron would say about "plowing OSAP" money into real estate. Or did I misunderstand your guest?

[@TommyFink-y6c]

White Donald Thompson Kevin Johnson Kenneth

[@ryancouture2508]

Tax the rich! Too few own too much!

[@TheTomStoreyShow]

Communism will fix it.

[@DummMoney-rr1fi]

lol, why not give our kids even less motivation than they have now!!! When Tom's done having his 12 kids in the 2030s I hope they all can be one of the few in Canada if they work as hard as Tom seems to be.

[@fofal]

@@TheTomStoreyShow that's how it starts. How did it start in Russia?