Toronto Condo flipper losing $385,950
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- Опубліковано 15 чер 2024
- Toronto Condo Flippers are currently in a pickle getting their units sold on the assignment market
Assignment Consults: precondo.ca/assignment-consult
Precondo 3D Toronto Map: precondo.ca/3d-model-toronto/
New Condos in Toronto: precondo.ca/new-condos-toronto/
Email me: jordon@precondo.ca
Not Intended to solicit buyers or sellers. I am not a Realtor. I am a shareholder of iRise Realty and Precondo which employs Realtors - Розваги
Because so many people overpaid for homes even while loan rates were low, I believe there will be a housing catastrophe because these people are in debt. If housing costs continue to drop and, for whatever reason, they can no longer afford the property and it goes into foreclosure, they have no equity since, even if they try to sell, they will not make any money. I believe that many individuals will experience this, especially given the impending mass layoffs and rapidly rising living expenses.
Considering the present situation, diversifying by shifting investments from real estate to financial markets or gold is recommended, despite potential future home price drops. Given prevailing mortgage rates and economic uncertainty, this move is prudent, particularly due to stricter mortgage regulations. Seeking advice from a knowledgeable independent financial advisor is advisable for those seeking guidance.
You're correct! With the help of an investment coach, I was able to diversify my 450K portfolio across markets and produce slightly more than $830K in net profit from high dividend yield equities, ETFs, and bonds.
Would you mind providing details on the advisor who helped you?
''Aileen Gertrude Tippy’’ is her name. She is regarded as a genius in her area and works for Empower Financial Services. She’s quite known in her field, look-her up.
This reference seems valid.. Just looked up her full name on my browser and found her webpage without sweat, over 15 years of experience is certainly striking! very much appreciate this.
1 million for such small box condo what is wrong with people
$1 Million for a box, smack in the middle of a high concentration of homeless drug addicts who have free roam of the area.. awesome deal lol
@@edwardlenovo3240 Maybe it is. It is almost like "buy one and get one free". Buy a condo and get dugs for free! lol
@@edwardlenovo3240 moss park one of the most disgusting streets in Toronto lol
AND a monthly strata fee on top of it...forever!
@@JJTMStudioyup the maint fees are crazy high downtown
The only good deal is not buying a condo and leaving the box carton city of Toronto.
exactly, 600k + with no parking living in TO? lol great life right there
Who figured that buying a million dollar condo could be flipped? This is crazy risk buying
Passing a hot potato --> 🥔
It's not risk buying it's gambling. You could have a good time in Vegas at at the blackjack table in Bellagio for $400,000.
It worked for 10 years ..... these people made bank until they became bagholders.
Don't feel sorry for them.
Fastest growing city.....but the people we are bringing in have no money.
Poor people = cheap labor!
If people have one million why they should come leaving home country
Fastest running-into-the-ground city.
U are broke Chinese/Indian immigrants got cash
Yep I spent last winter touring through Asia, there are plenty of people over there will real wealth... but what idiot would trade a godlike lifestyle in their home country among their business/friends/family/etc, in exchange for a 500sqft 1bed in canada?? The thought that we are bringing in foreigners of any real economic value is absolute comedy.
I have 3 kids and a wife and rent a townhome for 3600/month . It does not leave me any money to save for a downpayment
Then change your lifestyle and job.
@@acz88yeah, like that. He applies to become a CEO or better invests in crypto 😂😂😂
@@acz88dump the kids? There aren't many changes you can do with 3 kids. Daycares and rent could easily eat up 7000 from your pay.
Imagine how much you have to make and what lifestyle you could have to alter.😂
@acz88 hahahahaha. You don't have much life experience do you. One day you will get it.
Stop with the indulgences!
Don't feel sorry for those so-called investors. They are the reason that brought up housing prices in the first place to the point nobody can afford them.
Investor is just another word for Speculator.
Let the " Passing a hot potato " game continue......
Yes they are the reason
They can all go broke and cry
Investors/ corporations screwing hard working people and not paying fair wages
Better think about an insulated tent near a food bank.
Dear Albertan, please take Crystia Freeland back. We don't want her.
From where to buy an insulated tent?
Or a parking spot for 70K.
I was speaking to a renters agent in Toronto who did a lease with me and she told me her clients had bought studio apartments in precon in the area (Yonge/Dundas) at 750k and were coming up for mortgages soon. 750k for 400 sq ft studios!!!!
These prices per square foot are ludicrous even after the reductions!
Condo prices in Florida are falling and prices per square foot under $150.00 are available.
Our leaders are too far left for house prices to be that cheap!
Florida home insurance is 5-8x more than Ontario 😂
They went as low as about 50 dollars a square foot for apartments in Edmonton that weren't leasehold in 2021 and 2022.
Must be an old crappy building. It costs a lot more than that to build a new unit.
@@Peter-sz1snthey really arent even left wing. They’re just SCUM
As a first time (maybe) buyer, I approve these losses.
good time to be on that side of the table, good luck 👍
You’re forever renting so doesn’t matter.
@@acz88You sound salty 😢
@@acz88 feels so good right now if you don't have to pay 40-60k interest per year and don't need to worry about declining house prices. If the situation doesn't change, you're right, I will be renting forever from people like you who will subsidize my housing.
@@acz88
Not forever.
Just till prices crater.
I’m not even involved with this “fuckery” and this video hurts. I looked at one pre con project early 2000’s and did not pursue b/c I couldn’t digest the #’s.
That is why we need the governments (especially the fed gov) to incentivize us to get into the real estate market.
It's almost as if people who had no business getting into real estate investing, didn't know f all about economics (and what happens when governments spend like drunken idiots), and just assumed interest rates would be 2% or less forever....this makes me laugh....
It will get even cheaper when the recession hits
The recession will probably begin when people start trying to take profits from their Nvidia positions. lmao
Hits? Mafaka... we're already in a depression
@@gormenfreeman499I bought NVIDIA calls when the stock split happened. Made some nice profits selling the options but I think we reached the peak in terms of price.
@@danielcooper5698welcome to the delusion of most Canadians.
We are already in a recession. Tf do you mean
Wait until the Chinese investors start dumping.
Make foreign owners and residents pay income taxes on foreign incomes like most countries do.
Wait till they start dumpling
@@J-tu3hw
What's the point.
Govt will waste that money.
Govt bloat is reaching epic proportions.
@@huskavarnaband yum
Indians will take alternative 😅
There are 2 different condo markets right now. The one that is hurting is the one focused on investor because all of the units that are losing money and not attracting attention are those generic and small condos that were designed purely for rentals, not for an owner to actual live in. I'm in the market to buy right now and I don't even bother looking at those kinds of listings because I want a home, not just an investment opportunity.
Units that are actually good, meaning good layout, nice space, good management, nice view, those are still selling and not losing money.
There's only one market in Canada, the BIGGEST bubble market.
Future slums. And that future looks closer than expected.
Jordon you forgot to add all the cost associated with closing a pre-con 🤭
2022 I had to pay 66k just in closing cost
Good luck to all the buyers and sellers out here stay strong 💪🏽
Ok. How many Uber drivers among those Condo flippers? 😂
I looked at the bank of Canada inflation calculator and put in 846 in 2017 and it put that as inflation adjusted at $1041 in 2024.
So inflation adjusted condo prices are back to below 2017 now.
Ouch!
The inflation numbers BoC put out are fake.
It's 3x that number in reality.
Note also that the inflation numbers that are published are fake and misleading. The real number is always way higher than they publish
Finally precondo guy being honest telling it like it is no matter his interest
1900/psf is cray cray.
Why would a "2" bedroom condo that is 650 sq ft need 2 full bathrooms??
I'm seeing more and more new SF homes being built/advertised with more bathrooms than bedrooms, and often wonder if they're doing this knowing that sooner or later those big new houses will have to be subdivided into tiny apartments for anyone to be able to afford to rent them. In other words, building for future greedy "investors", not average people.
Trying to justify the prices lol
Hope the prices go back 20 years, back to normality.
Let me guess, you think you will be able to buy the home you want eh? If things drop that far it will be end of days.
@@JaBlanche For people who don't know how to manage money.
He is not off maybe 7 yrs as if statistics is proven right, must eventually revert to the mean. House prices have a lot to drop at least 20% and if the mean point is carried longer into the future, then the drop is much higher.
@@DiggyT lol, you think it would only be catastrophic for home owners and investors? OK.
This happened in the USA in 2008 and the whole world went into a recession lmaooo
Wishing for the world to burn so you can buy something you can’t afford doesn’t work very well in reality.
i wonder what the condo fees are for a million dollar studio.
like who the eff is paying so much for so little.
One bedrooms typically are $700 and up for maintenance fees
Around $700-$1000 per month
@@acz88
Good God that is a lot.
Greed is a bitch.
True and when you make a cocktail with greed, CCPs money laundering through Chinese investors with a pinch of help from liberal marxist policies supporting this money laundering, tada! You get the wonderful Canadian real estate fiasco. It's beyond repair now. Noone wants to buy these assignments. It's super high risk.
1:20 never try to catch a falling knife. Prices have a long way down to go still!
Two bedrooms 11x8 and 9 x6? Those are the size of closets...LOL!
That condo isn't worth $200K in a proper market with interest rates at 12%.
Yeah... those parks are lovely....wonderful neighbours in the area.
lol
Tent dwellers who are hooked on tranq?
@@retrogamer82
Zombiefication
of the neighborhood.
Yeah lovely homeless neighbors. You could even become one in the near future with these prices!
I have lived in Toronto for almost 6 years and have purposely not bought a condo or any property. This is one of the reasons why. I already own property in Calgary and after years of the value taking a beating its completely shot up and now I am very much in the green. No regrets.
Canada is a 3 star hotel charging 5 star fees
Great content as per usual👌
Appreciate it!
Great video! We are definitely seeing the other side of speculation now, hope these stories help cool off future demand for pre con flipping.
Also should account for opportunity cost of having deposit tied up in the condo. SP 500 is up 85% over the past 5 years.
can you explain what blanket appraisals are and their significance? you kind of hint at them being a major stopgap to a serious problem but I don't understand what they are.
Will the mortgage defaults be offloaded by banks onto the taxpayer via CMHC?
And isn't that a total fraud.
Another aspect to predict will be if construction falls so much, how much will be the job losses in the region and these people will definitely have to move out.
Construction sector is a big job provider.
Prices go up when economy does well and goes down when economy is bad (i.e. no jobs).
Another point people will not immigrate here if there are no jobs or cost of living is very high compared to what they make.
Good! Flippers are speculators; that's a risky business be it gold or real estate. This flipper got precisely what they bargained on.
Depends if you are a buyer, seller, occupant, investor.
What software are you using to highlight those condos like that
Correction to your intro: the Toronto condo market is going to get better before it again gets worse.
Meaning, prices will continue to drop until affordability comes back. Nose-bleed-level prices benefit no one.
Realized long ago that builders charge insane amounts and people will pay, but when you resell nobody's willing to pay exorbitant prices
What is the appx breakeven average per sq/ft for a precon?
I pulled out the BoC inflation calculator - $846 in 2017 is $1047 today. So, inflation adjusted, we are below 2017 prices.
I've had many clients whose appraisals did not come in on the pre-construction side
These 600 650 don’t look too crazy compared to what we see here in Vancouver.
you had me when you said $600k for a dog crate condo is a good deal 😂 high on these prices for so long you’re all detached from reality 😂
Price has to come down as much as 60% of its current prices unless there is hyper inflation like a situation, like it was in Argentina.
That is what will “save” them
People need to first understand one very basic fact before investing in condos: condo apartments are NOT real estate. Buying a condo apartment is essentially equivalent to buying a car parked on the 30th floor. You own nothing but a depreciating asset plus the joy of paying for all the maintenance and repairs.
And maintenance fees are getting out of control these days no one is talking about that yet 🤭
Not really. They appreciate if you pay a reasonable price rather than bid like mad in a hot market.
@@Jopie2112 These $700k condos cost $400k 10 years ago. If you paid $400k for cars, your "investment" would be worth $100K today. That's what matters.
Thanks for great info!
Question. You mentioned this assignment sale won't be recorded anywhere publically.
Does this also mean CRA won't know about this transaction?
If so, wondering how CRA will calculate the tax on gains if your friend is to sell this condo after closing.
Actually CRA will know b/c the original assignor will need to report this to CRA, claiming it as loss, is it?
Your friend that paid $600000 just recently will have to sell for less than $300000 in 2026 or 2027.
I don’t think so
Yup looks like a retrace to covid levels on the technical analysis point
Not everyone is poor.
@Precondo, please take a look at Toronto C8 C1 resale and explain YTD numbers.
The basement accomadating 4 to 5 people. Gosh!! What a prison and cold windy weather.
Would love to see you do some in Vancouver ❤
How many here, at your current earnings, would be able to buy a property if pricing reverted to levels 5 years ago?
I'd argue that Allan Park and Moss Park are more beautiful than High Park
Allan gardens does have a nice greenhouse that high park doesn't have
It’s crazy that people are losing money on 2018 purchases! Meanwhile, the S&P 500 is up 100% since 2018. Canadian dirt is a terrible investment, sorry you all got rekt 😂😂😂
Any contacts in Ottawa?
WOW paying million dollars for a condo , kind of deserve to loose their money
Flipper losing. Sometimes you lose. That is how it is. Nothing to see here
The 1k+ sq ft places aren't struggling to sell. It's the 400 sq ft shoeboxes that no one wants for over $3K per month in mortgage. Many OG buyers never intended to actually live in those floorplans or units - ever - and just saw them as an investment opportunity. That market is delusional and I hope things falls back down to 2016 prices, like $300K.
"financial district" LOL
I thought the build cost for a Toronto condo was around $1400 a square foot? Joe we are down in the $800?
This has gone so off the rails people think 600k for this condo is a good deal. Nah
That's right, hindsight will always be 20/20.
This is alright. I’m looking for a wheelchair accessible place in downtown, so the fact that the overpriced units are coming down is good.
When people think they can outsmart the market, supply and demand slaps back.
The thing is all these units dong come with a parking lot.
Don’t worry the city is installing bike lanes on major streets downtown that will fix that 😂
It's a joke, they think that people will be riding bikes when 6 months of the year it's cold as F outside.. plus the roads they are doing for the amount of cars and condos doesn't make any sence to be sustainable in the near future.
Just ride your bike and cancel your disney plus
Even with the cash to pay in full, $700k for a 600 sqft condo seems crazy. Compared to renting in a rent controlled building, my monthly costs would more than double, for something that is not really that much of a step up.
moss park is lovely? what's lovely about it, the needles or the bohemians fighting their imaginary tormentors?
Stay away from Moss Park and Allan Gardens. It is scary walking near there. Many shelters and homeless services in that area. Which is good for the ppl who need them, but most of those people are also into drugs and crimes.
@@inderjeetkaur720 if they can fix up the place and move the shelters further out north or east and clean up, landscape the park it could be a lovely place as there are some very nice places near there
@@MrMichaelBradfield agreed. Unfortunately doubt that will happen..
that's the joke
Investors have to sell before June 25rh to avoid 66% capital gains tax. Investors are leaving Canada for good.
We don’t have a supply is we have an affordability issue
Imagine buying housing, you know... to live in.
252 church is another pump and dump from centrecourt ! Horrible layouts / horrible prices / horrible finishes !
Centrecourt will have crazy closing costs
And as for worst part, after 5 months of final closing in their projects this year, they are in hiding and not paying commissions to the agents who sold units …
Be aware of this builder ! I would not suggest them and i sure wont work in their projects ever again
Between 2018 to 2024 the dollar has lost about 50% of its purchasing power due to counterfeiting from centralized manipulators. This would mean that $945 /sqft in 2018 is worth MORE than $1,029 / sqft in 2024.
We can not call these currency units money - please distinguish this in future videos 🙏
I'm not sure why the positive side is current massive population growth- Ontario is expecting 100,000 less student visas issued in fall 2024 and TFW getting reduced to 5% of the general population will result in a net migration of approx 300,000 in 2025, a massive reduction as I'm sure you know.
Too bad, so sad....it will happen in Calgary too...they are overbuilding....latest condo development turned to rentals...they couldn't sell them and they have been empty for weeks.....I live in a townhouse condo and the next door neighbour is an immigrant owner....he just recently kicked out some nice Canadian kids to raise their rent to a ridiculous rate, couldn't get his price, some Asians moved in and he had to let the condo go for less rent than the Canadian kids were paying........I hate investors.
I think the population boom argument to support a longer term bullish view, is overstated. Per unit occupancy math needs to be re-done.
It is well known that people are now cramming themselves into smaller and smaller places e.g. four people living in a bachelor unit. A stroll through any downtown condo reveals absolutely jammed elevators as both owner-occupiers and tenants take on more and more roommates. Property managers are simply looking the other way, as garbage overflows and building infrastructure buckles under the weight of far more occupants than the building was designed to house. This phenomenon will only get worse over time.
We are literally building ghettos. Tragedy what's happened to Canada. Really frustrating.
The panic is starting. Wait for the reduced appraisals and the mortgage debacle.
The collapse is always ugly.
Condos are the worst.
One panic sale and that becomes the new appraisal for all the units.
It’s happening!!!
Hey I am looking to lose some money on a pre-construction condo. How would it be best to get in touch with you?
😂
😂🤣😂
Where or HOW can we (the general public) find out the average price per sq. ft. for different neighbourhoods ❓❓❓Ref: the chart shown at 10:25 min?
them 600k condo's will be 300k in a few years . lol
Great video. These are the small tides till the actual tsunami hits. Everyone says it is not going to be bad as a financial crisis. It is going to be worse. There are many catalysts waiting to burst. It is going fall like a house of cards.
It’s like selling at the money puts at the time
Why?
Most modern investors just seem like people who took their lide savings and;
A) Didn't research the "affordable properties" they were investing in with due diligence
B) Bought tiny units intended for investment > livability not considering who they'd rent/sell to
And C) Counted on the covid bubble or bought early/prebuild and want their savings back after it popped...
Hey, I'm brand new to your channel. Rented all my life but for the first time, I'm actually considering buying a place for myself. My current place's lease is up in Oct, so I'm looking to see my options for purchasing a place (or continue renting if the prices aren't good).
I don't understand your video. With all the talk about rent prices skyrocketing, which I personally feel the pain of and have experienced, how can there be so many losses in the buying/selling market?
lol TAKE your MONEY and get out of CANADA. Too much Taxes, shit hole😮
Interestingly in the USA in 2009 when the great recession was really picking up steam, when house resale prices really started collapsing, rents continued to go UP! That was because so many people were being foreclosed on, former owners juiced the rental market.
Certainly many other factors come into play, but don't be surprised to see rents continuing to go up up up should (when) the buy/sell market craters. The impact on rents takes a few years to clear out, but eventually they came down as well to reflect the lower cost of ownership.
leave this place is a sh!thole
Because they paid so much for their grossly inflated-value properties, thinking interest-rates would forever remain low (and values would only ever increase). Now that rates have increased their costs have gone up so much that they can't even find people willing/able to pay the extortion-level rents they'd need to break even.
I don't feel sorry for flippers losing, you take your chances just like the stock mkt. But why are these units so small architects, builders, city are all to blame I would pay upwards of 1/2 million dollars for a condo but not for a 600 sq ft unit. As the old saying goes "they're so small you have to go outside to change your mind".
Don’t forget the monthly condo fees
Was the flipper your buddy Joe Blows?
nah it was john doe
These assignment sales are only a good deal if prices stabilizes and rebound which is not gonna happen.
Right now, the only reason to buy a condo is life style, not investment, deals are always there, but might be rare and hard to find at the moment...
Strata fee is crazy
If you buy 550sq ft for any price, you've been taken.
1+1 did not equal 2 the day the first guy signed his P+S agreement. He was doomed from the beginning.
We need a 2% property tax asap
Fastest growing city in 2023. What’s happening in 2025 and 2026. We might see significant drop in population growth. The Liberals already scaled back TFW, and international students who were being granted PR status. Be very careful people. The market is a lot smarter than we think we are.
Not everyone is lover or fighter.. most people afraid to die or worse lost your limbs or eyes.
People buying distressed assignment deals today will look like geniuses in 3-5 years
They don’t need to bring because government of this country raise them free on tax Payer money
I got answer to the housing problem taxthe speculators to hilt because this is canada u cannot live in tent or ditches by the road