Rents are falling in the GTA, and there is a surplus of condos on the market: Ron Butler

The housing market has slowed down due to high house prices, sensitive buyer sentiment, and a lack of new construction starts, says Ron Butler, mortgage broker at Butler Mortgage.
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[@DA-pt1em]

Coles notes: GTA apartment condo market- over-saturated with listings. Rent in GTA down 1% (yes 1%, not much). Single family homes in sought after areas still selling over-asking. Pre-construction condo purchase buyers are screwed (they're now worth much less than they were purchased for).

[@aavvcc]

Thanks for this

[@hillfortherstudios2757]

Its down 1%!? Holy fucking shit! Now its an affordable city to live in!

[@rochester3]

they go up 2% a year and fall 1% out of 5 years lets celebrate 🤣🤣

[@user-ft6bu8ih4e]

For now....

[@thelostclock6930]

It is all about momentum.

[@DaveBee120]

I never understood condo investors, they thought losing $500/month was a good investment because appreciation would always be there. Most real estate investment does not make sense in Canada because appreciation doesn't pay the bills. Now they are all realizing its dumb to own a liability like a negative cash flow condo and all selling at the same time.

[@andrewmccoll1582]

The condo in the thumbnail is exactly a representation of the average, affordable condo

[@forgetmilk2818]

idk how people can afford a condo, not only the mortgage but then slap a large condo fee on top of it. Crazy.

[@andrewmccoll1582]

Idk how people can afford a semi? A DETACHED? A condo is cheap comparatively speaking.

[@vert911]

​@@andrewmccoll1582 correct. Unless you are one of the people who completely neglects components of their house, which is a large majority of the GTA.

[@rochester3]

you got your mortgage with an interest rate now you said slap a fee on top of it, that sound like a bargain to me

[@sirxavior1583]

If your condo has alot of amenities you'll pay more. If the fees just cover someone to shovel the snow, cut the grass, and take out the garbage the condo fee will be around $300 - $600. My uncle has a condo with a guard that greets him good morning everyday, movie theater, pool, and fitness center. His condo fees are as high as $1200 a month. If it's an older building the maintenance fee will also be higher because everything is breaking down and needs to be repaired or replaced. If the condo is located in a centralized location with everything within a walking distance, many owners will decide against owning a car. The difference of not owning a car and paying for insurance, gas, monthly lease/finance vs buying a house in the burbs almost makes the costs the same.

[@kevinbarr9933]

How Ron gets through a news briefing without dropping the F bomb is a small miracle

[@minimaxmiaandme.4971]

This is interesting because there has recently been a major push to build condos in Calgary and one of them that is finished now has "for rent" signs on it which means no-one is buying. Truman homes has never had rental buildings before. I think the developers push to build is not really necessary. There is no shortage that I can see.

[@JSRTales]

you mean lower rent pricing means 3000$ per month for 600 sq ft? 😢😢😢

[@vert911]

4000 for 950 actually. But your philanthropist landlord will pitch in an additional 2000 to keep a roof over your head. Nice people landlords.

[@rochester3]

@@vert911 and dont forget the 2$ increase per year

[@derick3253]

"May is at a lower start than april" What? We are only 3 days into May. This is a market capagin to get the populous into the market.

[@funkspinna]

Yes, he's referring to a start... not the whole month.

[@derick3253]

@@funkspinna yeah, but how can you make a conclusion off of 3 data points. You can't.

[@pbreedu]

Florida has become significantly stricter since the Surfside collapse. This is causing problems as many condos are now obtaining the 80% approval needed to sell out to developers because residents can't afford the higher reserve requirements.

[@minimaxmiaandme.4971]

This is a Canadian issue, we are not interested in Florida.

[@WorkPlayToronto]

You must consider that end-users are not going to be buying the pre-con units. These are purchased by investors, who have traditionally gotten great returns. Like the stock market, things go up and down....we are in our down swing.

[@DavidHalverson]

LOL I am laughing my head off when I hear about the surplus of empty condo buildings.

[@robrubino4402]

Hey! Can't you put 10 immigrants in a bachelor condo? That will keep condo fees low! No damage there! New OFSI mortgage rules next year for non-CHMC mortgages should go after investors.

[@user-uz1si3fu1i]

Congratulations on building houses in Canada 🇨🇦 and the United States 🇺🇸

[@jodiekohut9443]

Wtf is tent going up or down ?

[@butwhytharum]

i mean all those condos geared towards investors... leveraged to high heaven and back investors... investors who are trying to sell their overpriced boxes.

[@JoseLopez-hp5oo]

Keep those interest rates up, Cap gains taxes up, condo fees going up. Finally the tide of the past 20 years favoring investors has changed. Now non-investors will finally have a chance to buy!

[@JohnAnderson-sq8lt]

Everyone, wait to buy, big correction coming in condos prices, too many coming on the market

[@DTrent-uy1wl]

Bad days are upon us

[@patientzero291]

It's the capital gain tax.

[@DJRS2178]

Hahaha

[@butwhytharum]

i mean putting down 20% of purchase price and sell a few years later for 150% of the original purchase price while getting a student tenant to pay the bill. make out like bandits while they can.

[@freedomliberty83]

How so? If investors sell their rental units than there will be less condos for rent. That will increase rent prices, not decrease

[@butwhytharum]

@@freedomliberty83 how good of an investment is an empty condo? Not a very good one with no tenant paying the mortgage. More units sit empty more availability less price, landlord can't afford it themselves sell it at a loss. The crash has begun.

[@freedomliberty83]

@butwhytharum I live in Vancouver and there is no shortage of tenants. i own 3 investment units and when I go to list I have over 100 applicants in 3 days. Tenants are even bidding higher than what I listed the unit for in order to secure the unit. With more immigrants coming into Canada each month, you will not see an empty condo unless the owner of the unit wants it empty (example: a snowbird). If owners sell their investment units due to the capital gains tax it will most likely be sold to an end user. This will eventually cause even more upward pressure on the rental market. Less condos for rent, more people coming into Canada.

[@lominiski]

Just increase the tax rate for renting. Or license renting.

[@vert911]

or maybe let landlord charge whatever they want for their units, like everywhere else in the world.

[@cbernaski8564]

​@@vert911 So rents are too low?

[@vert911]

@@cbernaski8564 in comparison to other comparable major cities around the world, currencies converted, yes they are low.

[@Marsalien100]

If people are surprised by this, it's because they overspent on a home themself.

[@kevinn1158]

Basically the whole real estate industry and the crazy city council have completely ignored family home production. The city blocks stacked townhomes based on the crazy 39' height limits in the core of the city. Boutique buildings that are 6-8 stories on main streets are blocked by the NIMBYs and the local city councillors. And the existing family units are being gobbled up my investors. That is, people who move almost always hold on to their first home and rent it. And Corporate entities are also buying homes and renting them. The only buildings being built are skyscraper boxes in the sky developments and huge public housing developments. And these public housing developments will forever be money pits for the taxpayers. And the city politicians supporting these developments are lying to the public about what is being built. What they've done is flipped economics on its head. Instead of increasing the number of units they are building hundreds of brand new townhouses on the most expensive land in Canada. Homes that would sell for well over 2 million each on the market, are considered reasonable public housing units. And the taxpayers are paying for this. Now they could have sold these properties and used the money to double the affordable units available to low income earnings but they didn't. So when you are thinking about the fact that you can't afford a tiny condo, remember your tax dollars are paying for somebody to live downtown in a nice townhouse for next to nothing. They should throw out the whole concept of public housing completely. It's a disaster. So next time you hear Olivia Chow talking about affordable housing, she means public housing not affordable housing for everybody. And this is the core of the problem. We have a city gov't who blows hundreds of millions to supply a select few homes, and then they turn around and fight every private development making it incredibly expensive through land transfer taxes, development fees, dragged out approvals, legal fees, GST taxes etc etc.

[@msuresh5517]

This is a bull story, unless there is a 70% correction, it won't slide towards buyer's favour.

[@vinhhuynh1774]

The only reason they are on sale is because their tenants are not paying their rent.

[@berry1669]

lower prices are coming🤣🤣🤣😂🤣🤣😍

[@andrewmccoll1582]

Not happening. The market will freeze but never drop.

[@p.m.2388]

​@@andrewmccoll1582It'll drop but not yet.

[@vert911]

its going up soon. been stalled too long and gov isnt making tax dollars. they are looking for ways to bring it back so they start making $ again.

[@semi-chubber2388]

Angry Mortgage guy!

[@davem8972]

Capital gains tax effect

[@thejuice3819]

Holy Christ Ron didn’t curse once!

[@egeb]

Bro probably lives in a parallel universe

[@webdeuce]

Nooooooooo …really……who knew 😂😂

[@Ynalaw]

Condos are great for same sex couples that like to snuggle together.

[@chrisogden7001]

All you own is the paint in the walls in a condo

[@vert911]

False.

[@Doctor_Bong]

You do own the drywall. I measure condo's for condo plans.

[@Doctor_Bong]

Though the rules are provincial, so maybe different rules in different provinces.

[@corycarr]

Not a big Ron Butler fan.

[@mr-of4kd]

Buu😂

[@josephsmith594]

That capital gains tax change is having its desired effect, driving a sell off of rental units.

[@freedomliberty83]

If people sell off their investment units and there are less condos to rent than the average rent price will go up lol

[@josephsmith594]

@@freedomliberty83 The buyers are living in the units.

[@freedomliberty83]

@josephsmith594 We still need places for people to rent. With less rentals units on the market it would create upward pressure on rents. The price of the average rent would increase. Its common sense supply and demand.

[@JessT-vg7ib]

we should increase immigration to fix this problem

[@robrubino4402]

WOW! BRING IN 1,,000,000 more immigrants....what! You mean interest rates ACTUALLY matter/

[@aakk1502]

Fakenews

[@Deeveedends]

This interviewer is horrible.. he can’t hear and he doesn’t know anything about the topic smh

[@butwhytharum]

oh he knows. hes trying to not broadcast a panic of people loosing their "investments"

[@rboddington]

Question, do renters ever stop their whining?

[@vert911]

Nope. Why do we even let them vote?

[@rboddington]

@@vert911 Good idea, stop them from voting.

[@JustTim1916]

I believe it was only homeowners that could vote in the late 1800s. They were onto something, but then it went downhill by allowing renters and others the ability to vote

[@captinzoom]

Condo investing is sort of a scam. You get in and out. I feel bad for these investors who are stuck with empty units , renting or selling at a loss. Ugh. I wouldn't even say its a buying opportunity cause who wants to live dt

[@siddiqze]

All depends on when they were purchased and what price they were purchased for?

[@butwhytharum]

they knew the risk they took on... i dont feel sorry about these people crying "my mortgage" well if your "business" is profitable why do you need to take on 12x its income in debt?

[@vert911]

there are no empty units, just costs for LL went up. Fisher Price Canada protects tenants by not letting rent be raised. In florida all the rents would be raised and tenants would need to pay up instead of feeding inflation, going on vacations and eating in fancy places. Renters caused inflation. If they were paying their fair share for their housing there wouldnt be any inflation in the first place.

[@JohnAnderson-sq8lt]

They are speculators, and they are sinking now, condos are way over built and a crash is coming, in Barrie 48% of all condos for sale are empty, what do you think will happen when people start to loose them?

[@nicof6895]

You guys are the worst with your typing and paper shuffling

[@vert911]

Rents being down is good for renters? Only if they want to move. I'm raising my rent.

[@Lucas-rp9bn]

Yeah from 3000$ to 2999$! Let’s celebrate