Originally Posted by BavFan_08
Aspiring made some good points but consider this example:
In the early 90s, properties in Manhattan and the rest of NYC were worthless.
For those youn'gns out there, you may not know this but a 1 bedroom apartment near Times Square sold for $98,000 (in 1990-1991) This was after Real Estate CRASHED both in Canada and the USA. Donald Trump almost went bankrupt? If you do not believe me, check out his autobiography.
Today, That same apartment/condo is over 30-35 years old and is worth nearly $1,000,000. (Even with the slow down in the US economy.)
Why? It's New York City, and the demand out lasts the supply. Simple economics.
Condo investors in Toronto, most of the smart ones at least, are banking on the long term.
IMHO, Short-term flipping has indeed slowed down for now. For a lot of people though condo investing is for the long term.
Also, in Toronto, condo prices have already dropped. In fact new developments are offering lower prices because even the developers realize that there are to many units out there. However, eventually the Condo boom will end. Either we as consumers will stop buying, Toronto becomes the crappiest city to live in or the builders just run out of room to build. The best scenario is the NYC example. No where to build, lots of jobs/opportunity in Toronto, increased immigration. High Demand, Low Supply makes the condo investors of today winners.
Also, Vancouver has historically always been more expensive. Even in the 80s and 90s. The supply has never kept up with demand. In downtown Vancouver, the supply will always be low because from what I can tell (after visiting there so many friggn times) there is hardly any more room to build in the city. Vancouverites, please correct me....
Also, another thing about Vancouver...the city itself doesn't have a big population. The actual City of Vancouver's population is less then Mississaugas. What makes Vancouver the 2nd or 3rd populated city is the surrounding areas (i.e. North Van, West Van, Richmond, Burnaby, Couquitlam (sp?) etc etc.)
The above is based on my research, opinions. if you disagree you disagree or please correct me on anything you feel is incorrect.
^^ THis is just about correct, esp part about Toronto
Those of you trying to "make" money in Toronto and are excited about buying Condos...good luck! Every second person there "owns real estate"...lets see how far this goes.