Where to invest in Real Estate

[Lazymon82]

So do you think that real estate is somehow immune from the cycles that EVERY asset class experiences over time? And that it can never go down?

What an incredibly naive opinion that isn't based in any sort of reality. All asset classes go through cycles, and real estate is no different. There have been real estate crashes in every country in the world, including Canada, and just becuase you haven't been around long enough to witness one doesn't mean that it can't or won't happen.

Nothing goes up forever. Nothing.

Real estate is not immune and yes i agree it will not go up forever. But at the same time there can be saturation points where price stays flat but will never go down hill where people lose money they invested like 5 or 10 years ago.

Covid-19 situation is way different compared to other economic slumps in the past. As govt is printing money like crazy the inflation goes up and CAD might lose value (which may not be the case as every other currency you want to compare CAD to are also losing value) but the real estate prices and its demand maintains. People with no interest last year are looking to own a home now esspecially because of current situation.

Commercial real estate value is slowly being moved to residential because of this situation. Downtowns across the world may not be deserted but will lose value to from-home-businesses. As everyother tech company is pushing towards WFH permanently businesses dependant on public movement in downtowns will gradually adapt to home delivery options if they want to survive or stay competitive. Cities will spread out and will not clusterjam in city center with tall towers like in the past.

Simple logic with common sense applied is that a house costing 50k in 1980 will be remodified/reconstructed/renovated and will always be sold at a much higher value than 50k and never less than that considering whatever world ending events happened or will happen.

 

[canuck78]

Real estate is not immune and yes i agree it will not go up forever. But at the same time there can be saturation points where price stays flat but will never go down hill where people lose money they invested like 5 or 10 years ago.

Covid-19 situation is way different compared to other economic slumps in the past. As govt is printing money like crazy the inflation goes up and CAD might lose value (which may not be the case as every other currency you want to compare CAD to are also losing value) but the real estate prices and its demand maintains. People with no interest last year are looking to own a home now esspecially because of current situation.

Commercial real estate value is slowly being moved to residential because of this situation. Downtowns across the world may not be deserted but will lose value to from-home-businesses. As everyother tech company is pushing towards WFH permanently businesses dependant on public movement in downtowns will gradually adapt to home delivery options if they want to survive or stay competitive. Cities will spread out and will not clusterjam in city center with tall towers like in the past.

Simple logic with common sense applied is that a house costing 50k in 1980 will be remodified/reconstructed/renovated and will always be sold at a much higher value than 50k and never less than that considering whatever world ending events happened or will happen.

You can't compare today with a house in thr 1980s. We haven't seen the real repurcussions of covid because governments are propping up the economy. The condos in urban centres will certainly take a hit if work from home continues. There will still be job losses and our economy is very dependent on economies. We'll all need to see what happens over the next year.

 

[steaky]

What goes up must always come down

When will global warming comes down?

 

[steaky]

You can't compare today with a house in thr 1980s. We haven't seen the real repurcussions of covid because governments are propping up the economy. The condos in urban centres will certainly take a hit if work from home continues. There will still be job losses and our economy is very dependent on economies. We'll all need to see what happens over the next year.

But cities will continue to spread out and and will not clusterjam in city center with tall towers like in the past.

 

[torontosm]

Simple logic with common sense applied is that a house costing 50k in 1980 will be remodified/reconstructed/renovated and will always be sold at a much higher value than 50k and never less than that considering whatever world ending events happened or will happen.
[/QUOTE]

Except that a simple search of ANY geographic market will show that this is not the case. Houses that cost $50k in 1980 can certainly sell for less in 1982 or 1985. Have you forgotten what happened in the US just 10 years ago?

Regardless, even if you believe that a house that cost $50k can be sold for $55k 5 years later, what a horrible investment that would be.

 

[torontosm]

Real estate is not immune and yes i agree it will not go up forever. But at the same time there can be saturation points where price stays flat but will never go down hill where people lose money they invested like 5 or 10 years ago.

That's not how markets work. This has NEVER happened in ANY asset class, anywhere in the world. And if you think it has, please prove me wrong.

 

[KRP]

https://www.properly.ca/buy/search/toronto/?maxPrice=800000&minBaths=2&minBeds=3&minParking=1&neighbourhoods=Scarborough

 

[steaky]

That's not how markets work. This has NEVER happened in ANY asset class, anywhere in the world. And if you think it has, please prove me wrong.

Are you sure ANYWHERE in the world? If so, please prove it to me.

 

[Lazymon82]

You can't compare today with a house in thr 1980s. We haven't seen the real repurcussions of covid because governments are propping up the economy. The condos in urban centres will certainly take a hit if work from home continues. There will still be job losses and our economy is very dependent on economies. We'll all need to see what happens over the next year.

Govts are trying to bandaid the damage until the economy heals. I do not believe jobloss will last. As the old establishments close, new and more efficient busineses will arise with more competitive jobs with higher salaries which will only push housing affordability higher.

Canada's population vs resources is not a efficient ratio which will only attract more immigrants compared to other developed countries to take on the opportunities. Pandemic actually will help feul this interest around the world.

You want to own a house not as a investment but to have some satisfaction as a owner? Now is the time and do not regret in the coming years for missing the opportunity. Make use of the economic slump which we are already in.

 

[canuck78]

Govts are trying to bandaid the damage until the economy heals. I do not believe jobloss will last. As the old establishments close, new and more efficient busineses will arise with more competitive jobs with higher salaries which will only push housing affordability higher.

Canada's population vs resources is not a efficient ratio which will only attract more immigrants compared to other developed countries to take on the opportunities. Pandemic actually will help feul this interest around the world.

You want to own a house not as a investment but to have some satisfaction as a owner? Now is the time and do not regret in the coming years for missing the opportunity. Make use of the economic slump which we are already in.

Those efficient businesses use less labour and will not employ the same type of people. There will certainly be some job losses and worldwide recession. We haven’t seen the real economy because of all the government money the has been given out. We will have a better sense of the economic impact in 6-12 months.

 

[KRP]

Those efficient businesses use less labour and will not employ the same type of people. There will certainly be some job losses and worldwide recession. We haven’t seen the real economy because of all the government money the has been given out. We will have a better sense of the economic impact in 6-12 months.

Fullu agree.............

 

[steaky]

Except that a simple search of ANY geographic market will show that this is not the case. Houses that cost $50k in 1980 can certainly sell for less in 1982 or 1985. Have you forgotten what happened in the US just 10 years ago?

How do you explain the housing boom in Ontario?

https://www.cbc.ca/news/canada/thunder-bay/marathon-ontario-housing-boom-1.5730123

 

[Lazymon82]

Those efficient businesses use less labour and will not employ the same type of people. There will certainly be some job losses and worldwide recession. We haven’t seen the real economy because of all the government money the has been given out. We will have a better sense of the economic impact in 6-12 months.

Samething was said cpuple of months ago that everything goes down the drain by june itself - Boom!!! june/july/august highest housing sales recorded.

You speak like there will not be any businesses running and everyone is just going to sit home relaxing or crying over job loss.

Just when a shutter closes new door opens calling for employees to make use of the opportunities. Just as an example all my friends are back on the floor who were working from home since March including myself.

I don't understand how we are seeing new sales records when you say there are job losses. Banks don't lend money blindfolded just for fun to defaulters. All the sales in past months are by buyers who are good economically with steady jobs. If at all there are defaulters after govt funding ends the percentage should grossly reduce in next couple months as those defaulters will or should find new jobs by then. If they don't they did not really deserve to own a house in the first place.

 

[canuck78]

Samething was said cpuple of months ago that everything goes down the drain by june itself - Boom!!! june/july/august highest housing sales recorded.

You speak like there will not be any businesses running and everyone is just going to sit home relaxing or crying over job loss.

Just when a shutter closes new door opens calling for employees to make use of the opportunities. Just as an example all my friends are back on the floor who were working from home since March including myself.

I don't understand how we are seeing new sales records when you say there are job losses. Banks don't lend money blindfolded just for fun to defaulters. All the sales in past months are by buyers who are good economically with steady jobs. If at all there are defaulters after govt funding ends the percentage should grossly reduce in next couple months as those defaulters will or should find new jobs by then. If they don't they did not really deserve to own a house in the first place.

Have you seen the number of people still dependent on CERB? There are a lot of people out of work and small business struggling to stay afloat and many of them will fail. There is pent up demand and not a lot of houses on the market due to covid. The prices went up in only a few locations. We really haven’t seen the economic impact of CERB yet. We are still 6-12 months out from knowing the true impact.

 

[Lazymon82]

Have you seen the number of people still dependent on CERB? There are a lot of people out of work and small business struggling to stay afloat and many of them will fail. There is pent up demand and not a lot of houses on the market due to covid. The prices went up in only a few locations. We really haven’t seen the economic impact of CERB yet. We are still 6-12 months out from knowing the true impact.

And all the buyers who would believe this unrealistic pandemic scare theory would all just disappear? Or will they just change thier mind not to buy in canada?

Or after 6 to 12 months they all are going to just pounce on the market for the lowest price and keep the demand high which will inturn only push the prices high?

What is the point of waiting here? Most of the buyers in this situation would speculate but would eventually want to buy at some point i believe?

Even CHMC couldn't get it right and now they say ...well lot of factors involve in what shapes up the market...nobody knows exactly what happens when a pandemic hits particularly with all technological advancements in this age. So all they are doing is some guess work with the data they could get from internet (includes me).

Which is why i said if you want to own a house for yourself and call it a home then don't time the market pr be affraid of any virus as there will be more on the way in this capitalist economy world.