More than half of GTA condo investors losing money on properties: Report
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- Опубліковано 28 тра 2023
- Shaun Hildebrand, president of Urbanation joins BNN Bloomberg to discuss a report showing that more than half of GTA condo investors are losing money on properties.
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So what? Protecting greedy and financially illiterate investors should not be the goal
Don't forget the realtors fanning this flame tooo
Yes exactly here in the gta and Canada in general the more you are a fuk up the more they will cover your ass....first it was the 2020 6 month mortgage vacation then they saw 1% interest rates....funny not 1 complaint when they saw the equity jump 1million in 24 months....then it was the liberals investigating then ignoring the high volume mortgage fraud then Ford refused to reverse his changes to rent freeze then when 40% stopped paying the mortgage the banks offered then unprecedented amortization extensions of 40 years....btw those 40 year amortization products are not approved for use in canada the banks went rogue on that one...I hope this hole thing explodes
@@liuyifei1989 what do you mean
@@TheGladiatorsTv they mean just hate. They are filled with it
But unfortunately, these inventors supply a lot to the long term rental supply. Are you depending on the govemyn to supply these units?
lol. Canadians need to thank the "investors" for all the rental supply that simply wouldn't be there without them. Is this guy nuts? Does he think that people don't actually BUY condos? The reason people can't buy them is because the "investors" go and buy everything and stand in line to get a condo so they can flip it. If these "investors" weren't out there speculating, normal people could actually buy a condo. These "investors" and speculators are the ones who have made prices go sky high. The poor things, I feel so bad for them.
Here is the world's smallest violin playing, My Heart Bleeds For You. 🎶
So basecly we are saying "lets help millionairs investors be attracted to real estate so we can build more rentals at 3000k a month for a bachelor,solving no affordability issue and forcing everyone else on bunkbeds and shared appartments. No matter if you earn 20k or 100k a year, you are still poor and cant afford shit. 🇨🇳 🇭🇰 🇨🇺 ❤
So true man
Government should incentivize purpose built rentals from reits. These amateur landlords can get bent
100% Spot on, you want to invest in real estate, buy a REIT and collect the dividend, and let the grown up manage the rest.
Governments should never do anything. They are highly incompetent. The old saying: "Governments do for a dollar what any damn fool can do for a dime".
From the mouths of babes
Housing Crisis = National Security Crisis
The housing crisis in Canada should be categorized as “Canada's National Security Crisis” and be handled as “National Security Priorities” by all 3 levels of governmental agencies.
The so-called Real Estate Foreign Investors have attacked the Canadian real estate markets and terrorized Canadians for the past 2 decades and brought the country to its knees with no end to the housing crisis in sight.
Unfortunately, the BoC by creating cheap money in the forms of credits and mortgages has directly caused this economic mess followed by the housing Crisis in Canada which has become a National Security Nightmare for the country.
The so-called non-resident foreign investors should be banned forever to enter the Canadian real estate markets and those foreign investors who have already owned properties in Canada must pay higher taxes.
The high real estate prices have directly contributed to runaway inflation in the country for the past 2 decades and have left more than 2 trillion dollars of household debts and millions of young generations of Canadians homeless with no hope to own a home in their lifetime.
The tent cities have been sprawling all across the country and all these contributed to civil unrest, crimes, labor disputes, riots, break up of families, frustration, and anger among people.
With growing risks of a Global Geopolitical Crisis on the horizon and Canada's military involvement in NATO, the Global Energy Crisis will have a direct effect on Canada's Social, Economy & Political infrastructure.
The June 08 rate hike by BoC was the direct result of the coming global geopolitical crisis and the housing crisis will be Canada's "Achilles Heels".
Be prepared for HIGH INFLATION and HIGHER RATES in the coming months and years!
The expected housing correction (collapse) will be happening sooner rather than later.
agree....this is just getting started.....a real mess incoming
Good. Condos aren't true investments. Fools with money.
Not with city view. Something like a harbor view, a cruise ship port view could be a well selling point
@@ssuwandi3240again for fools
keeping increasing the interest rate is the only way to give shut up call to these investors and banks
send rates to 10% help young folks achieve ownership
Cry me a river. Condo owners not making a profit while renters struggle to find a place to live won’t get anyone’s sympathy.
Absolutely, take the buildings down. Renters can buy a tent. Renting a campsite is more in line with the budget. It is all good.
"Condo investors have been great for the market, without them we would not have near the half of the rental supply"
smh..
Eliminate rent control and let us investors have full control of the renting and eviction process. I guarantee that this will bring the price down. The happier the landlord, the happier tenant.
@@brownnomad6805 Totally agree. Rent control is only good for bad tenants to occupy and trash the property keeping the good tenants competing for a smaller rental pool available.
@@brownnomad6805eliminate landlord control and give ownership to renters
Stupid housing market of Toronto GTA
This just breaks my heart… when speculative investors take risks and lose. 20 years ago, my dad got hammered by price/interest rate drops/increases on a unit we were using ourselves - you have to take the crunchy with the smooth…
That’s exactly why they call it speculative…
too expensive: Better to buy resale
Good. Let's get this to 100%.
There is no way i would invest in rental property at this time. A waste of time and money. Better spent on something else.
Cry me a river. If investors assumed rates would stay low forever, they deserve to get their ass handed to them. Sell and make more inventory available for buyers who want to live in their units.
So they paid too much for a box in the sky. The investors figured ever-increasing rents would cover their costs and the condo would be a make-money income machine. Can they claim a capital loss and dump the condos?
Yes they can always dump them. Anyway, Canadian real estate has become a big dump itself. Very few idiots still believe in it and especially now with the combination of liberals and NDP, things are only going to get worse. Welcome to communist Canda. Lol
What a great news....they are all cash negative....what my accounting firm told me in 2019
Price is to high......
Be ready for 2025-2026 for normal price
what is normal price??? nothing about this country is normal. you can cross the border pay 50% less for a house and have a job that pays in USD dollars. If people weren't so trigger happy in USA and they had affordable health care. I would never stay in this shit hole country.
BuT My local realtor told me value is going to go up !
Haha keep dreaming kiddo. What are 18 yrsold
@@danlovepeaceunity
I bought property's in Florida in 2013......$45 000 cash...previous owner pay $180 000
People say exactly what you say......never goes down.....my dream come thru
Value goes down.....but today it when up at $280 000 thank's to the NewYorker immigration
@@liuyifei1989
Never trust realtor...is there to scam you with fake offer.....ask him to see it!!!!
Well what do people expect, when the interest rate exceeds the cap rate
Maybe they need to lose a lot of money bwcause these people buying those inflated priced housing drove the price of everything out of touch for the entire nation
Double and triple the property taxes and land transfer taxes on investors so that the property taxes and land transfer taxes can be lower for primary residence homebuyers
Less investors will corrupt the market allowing the prices to drop so that investors lose their shirts and young hardworking Canadians can afford their primary residence and raise a family’s again
Since JT and Freeland and housing minister are all huge landlords this won’t happen but until MP’s are banned from RE investing Canada won’t improve
Yes
No
@@brownnomad6805 Yes, you money-hungry clown. This may be news to you but most people care about society functioning than the need and greed of real estate investors
glad we have investors who are able to subsidize renters. hoping there are more investors buying pre-construction so that there can be more supply that further drives down rents.
Good, let them default. The GTA is a cesspool, as is Canada.
Wow even in 2020 when they were making money it was only $63 a month? What a garbage investment.
I was wondering why my uncle sold his condo a few years back and bought another house instead.
I believe the expectation was that the resale price would rise forever and the tenants would pay the mortgage, now condo investors cannot sell without incurring a $$$ loss. Not sympathetic just saying what I know to be true.
@@waffles1ca my uncle sold in maybe 2015 or something, not really sure. I just remember him telling me it was getting too crazy with the condo fees rising every year and only his first tenant was good(2 doctors). Glad they sold, the house they bought is doing way better.
Good reporting 👍🏻👍🏻👍🏻👍🏻
Good for them. Greed was the name of the game for so long and they have made so much profits now no big deal if they lose. Lol
Banks were hyping at the pocker table to an ever higher stakes on mortgages accepting anyone regardles of means. These were near zero interest days but still jacking it up to 2% was no worry. Now its time to skin an ever larger profit and regulators dont mind in cooperating.
what should you do if you work hard and earn enough to buy investment property? should you be penalized on working hard?
problem is money printing from government, which depreciate our money
Agreed
rental properties in major cities should be cashflow negative, investors are in it for the appreciation, furthermore even at -$500 that's only $6k a year investors will manage
Yea, its a long team investment.
Its really somerhing bizarre Investors providing subsidized housing going into the red for their renters! What should be Government job is now the Investors in the red!
The goal is to make builders and lenders( banks) richer !!!! By making it hard to build cheap rental units and easy to get mortgages for individuals investors to purchase those condos from builders!!!!! Government working for the rich !!! Capitalism!!!! 🇨🇦 🇨🇦🇨🇦👍🏻👍🏻👍🏻
Oh no.😢😢😢😢
Aww poor wittle Investing companies wosing moneys. .. hmm maybe we shouldn't rely on investing companies to increase the housing supply keeping us all rental slaves. Maybe development should be built for the massive amount of people who would like to buy their first starter home but can't because investment companies swoop in and purchase everything creating high demand, low supply and therefore creating a massively overpriced housing market.
Loving it. I don’t feel sad for them. They inflated the whole real estate market.
Exactly, Canadians in general are so GREEDY!!!
Ras House Music 🎶 Laborie Beach ⛱️ St Lucia
More than half? Make it 99% and I'll be happy.
Good.
How about landlords get a much lower interest rate on their rental mortgages and pass the savings to the rent they charged. Cap the leveraged allowed ( full disclosure in what units they own). Higher interest rates on purchases over a 1 million.
Change the government so we can change the building restrictions and get building.
😢
We are going to see less condos and less supplies of rental housing?
This is a good news
The stats are from 2020 and 2021 and expectations for 2022 are you serious?
glad i left to america 10 years ago.
Condo prices will now start to fall.
Not Apt, Vacation Properties
Out of touch. The chart is not right: the GTA resale prices are now matching the pandemic high. The rets will catch up in couple of years.
Hurray 🎉
its time the housing market in ontario need to crash
Doesn't matter if the builders are not building anymore. The market is already too saturated in Toronto and there is no quality of life. All views are blocked already. So good news if no construction pollution for a few years. We don't need more investors on the market
Condos are not houses. They are an extra cost on top of your mortgage payments. People want homes.
This is clear evidence that ending / banning rent control allows housing prices to come down because more housing is built... the market has now built more supply, and landlords are earning far less cash flow, and the value of the units is also coming down.
Interest Rates - should be increase in order to STOP = FRAUD (Mortgage Loans Application).
More than half of GTA condo investors losing money on properties by design lol
This is awesome if true. But I really doubt it. They are cash negative but still paying down the mortgage. Hahaha don’t lie guys.
Investment properties should be heavily taxed in an environment where immigration tops 1 million/year. Air BNB should be illegal.
Investment properties are heavily taxed … when sold.
Purpose built rental will never happen again because there is no guarantee that the next government may impose rent controls. Without a constitution guarantee that prevents government from interfering in people’s property it’s not going to happen.
You mean to say those greedy devil landlords arent actually raking in the cash? Maybe they should stop renting to you renters who do nothing but complain
💡 *GREAT news hopefully all condo investors get screwed for driving up prices, i would make it a nightmare for investors hahaha... if you want to invest in real estate , 1) go buy or build a purpose built rental apartment building , 2)Go invest in a REIT (Real Estate Investment Trust*
Just take the buildings down. Rent campsites and call it good.
REIT purpose is to make investors profit.
@@ld9044 *hahahaha... they can just park RV's and turn it into trailer park*
It is not us investors that is doing this. Eliminate rent control and let us investors have full control of the renting, rent increase or decrease and eviction process. I guarantee that this will bring the price down. The happier the landlord, the happier tenant.
let the crash begin....get those interest rates higher, much higher.....lollllllllll
😂
There should be no regulation for renting etc.
Condo fees should increase substantially and eat any investors lunch as the cost of labor intensive services such as repairs skyrocket and the like take toll on the reserve funds.
Condo investors = China! - Nobody is crying...
Eliminate rent control and let us investors have full control of the renting and eviction process. I guarantee that this will bring the price down. The happier the landlord, the happier tenant.
How about we eliminate the ability to use housing as a speculative investment vehicle- how about we build homes with the intent of having people live in them and start families and build communities first. Until housing supply increases substantially and the majority of Canadians (and future incoming immigrants) have reasonable, sustainable living situations, should we then allow using housing as investments. The more properties you own and rent out, the more taxes should be imposed.
@ems0up291 As per the video, developers won't build more condos or townhouses in that case. You need 50/50 ratio of investors and people who use it as residential. Learn economics. It seems that you are not educated enough to understand this.
@@brownnomad6805 65% of all preconstruction condos were bought by high risk speculators/investors that will lose their shirts since most haven’t refinanced their variable rate mortgages and interest upon interest is accumulating very fast and they just pay their old static payment of $2500 a month while they’re being charged $3799 a month now.
Just like minimum payment on a credit card and as rates keep rising with higher and higher inflation these high risk gamblers will learn a basic life lesson but everyone will be happy by 2027 as garbage gets flushed out of the system once banks really tighten credit and freeze heloc accounts in next 12 months
@jmela1370 If that is true then we will see massive bankruptcy on the horizon. Don't see it yet though....
@@brownnomad6805 it’s being covered up/hidden by banks and the Canadian government. They don’t want people to know about all the mortgage fraud and $ laundering in Canadian RE.
No different than the US in 06/07. Once things break the truth will leak out in next 2-5 years
Also banks don’t want truth to come out since it’ll stop banks from lying dividends and giving huge bonuses to their top executives and the Canadian bank stocks will plummet.
So keep it hush so the banks and government can keep everything looking rosy in the meantime
Mass immigration is government’s last ditch attempt at saving the RE market but when job market collapses it’ll cause a lot more headaches than just food bank lineups