FSW WORLDWIDE

[GandiBaat]

In Europe price to income ratio is the worst in Paris and Lisbon followed closely by Belgrade and Prague. Warsaw, Krakow and Budapest is also close. Toronto is more affordable for locals than any of the mentioned places for locals..(ridiculous isn't it?!)

I can understand all these places. These are the names that you have heard during your childhood --except Krakow maybe. Tell me honestly, cross your heart, did you EVER heard the name Nanaimo before? Or Sooke? None of these are famous cities. They are just small towns. And no, these are not some remote islands for rich and famous.

When normal houses in these places are commanding near a million dollars (while median household income in near by city is 70 to 80K a year), you know something is messed up.

 

[GandiBaat]

Not sure if it is true but I keep hearing that money laundering is also a possible cause behind the increase in house prices in Canada.

I used to think that but only now I have arrived at the conclusion : Canadian real estate mess is as Canadian as Maple Syrup ... a bitter Maple Syrup.

 

[slavicgirl]

I can understand all these places. These are the names that you have heard during your childhood --except Krakow maybe. Tell me honestly, cross your heart, did you EVER heard the name Nanaimo before? Or Sooke? None of these are famous cities. They are just small towns. And no, these are not some remote islands for rich and famous.

When normal houses in these places are commanding near a million dollars (while median household income in near by city is 70 to 80K a year), you know something is messed up.

Yeah, never heard of those before.
The whole market might be in a mania where everyone believes that if they don't buy now they might never be able to.

 

[GandiBaat]

@slavicgirl
Here is the best one!


351 Wesley St Nanaimo!

https://www.bcassessment.ca//Property/Info/QTAwMDBENTJGTg==

Assessment!
2020 : $378,000
2021 : $517,000

Listed for? Drum roll!!!
https://www.realtor.ca/real-estate/23669982/351-wesley-st-nanaimo-central-nanaimo
Hold your breath!
1.9 million dollars.

I am VERY SURE it will sell at that price point because why not!

 

[GandiBaat]

The whole market might be in a mania where everyone believes that if they don't buy now they might never be able to.

Thats the sentiment of entire Canada in one sentence.

 

[seadrag0n]

Thats the sentiment of entire Canada in one sentence.

When will this bubble burst?

 

[NavjotS123]

if you are single even if you will be earning 100k a year in Ireland you will be able to take out maximum 170k EUR mortgage. If tou are single you are considered as a bigger risk to the bank

My point is that housing is expensive everywhere, Europe has a huge disadvantage because wages here are not that high compared to US or Canada, plus EU has a lot bigger taxes for everything.

another example cars.In Canada you can have Hyundai SantaFe for 27k CDN in Ireland it will cost you 38k EUR
I am talking about Ireland now and EU in general

I

@slavicgirl
Here is the best one!


351 Wesley St Nanaimo!

https://www.bcassessment.ca//Property/Info/QTAwMDBENTJGTg==

Assessment!
2020 : $378,000
2021 : $517,000

Listed for? Drum roll!!!
https://www.realtor.ca/real-estate/23669982/351-wesley-st-nanaimo-central-nanaimo
Hold your breath!
1.9 million dollars.

I am VERY SURE it will sell at that price point because why not!

1,9 million. Who the fuck is buying these?

 

[dxdroid]

My guess is that no one will take a loan for these type of houses. I can really understand your frustration guys but it is what it is. As @slavicgirl said it, the income ratio to the house prices is really really bad in EU. Canada is a lot more affordable with their income etc. Obviously not every occupation will give you this but it is the same across the whole world soo...

@slavicgirl you forgot to mention places in Ireland and UK.

Demand for these type of places increased a lot and as I said it if people would not be willing to spent that much money the prices would be different.

 

[slavicgirl]

When will this bubble burst?

I don't think any sane government would sit and witness the market crash. My assumption is that they would do anything to prevent a huge crash because everyone's most valuable asset (and possibly the only saving that people have) is real estate. Imagine those voters being furious over a housing crash...I think governments would rather throw young generations under the bus than hurt real estate owners, hoping that the problem sooner or later solves itself when elderly parents are dying and younger generations begin to inherit their houses.

 

[NavjotS123]

My guess is that no one will take a loan for these type of houses. I can really understand your frustration guys but it is what it is. As @slavicgirl said it, the income ratio to the house prices is really really bad in EU. Canada is a lot more affordable with their income etc. Obviously not every occupation will give you this but it is the same across the whole world soo...

@slavicgirl you forgot to mention places in Ireland and UK.

Demand for these type of places increased a lot and as I said it if people would not be willing to spent that much money the prices would be different.

if the house prices are like these in the main Canadian cities, prince Edward island PNP is not a bad option then

 

[dxdroid]

if the house prices are like these in the main Canadian cities, prince Edward island PNP is not a bad option then

In some areas house prices do not scare me at all. Honestly looking at what is happening, demand will be only bigger so the only hope I have is that they will be more supply. Personally I do not think that this housing market will crash, simply because the demand will only grow.

 

[slavicgirl]

@dxdroid I am curious are you Eastern/Central European? You seem to know too much about this region

 

[seadrag0n]

I

1,9 million. Who the fuck is buying these?

Simple, borrow and buy. I have seen a few videos on YouTube where recently moved immigrants bought 2-3 properties after just spending 1-2 years in Canada by taking loans because the value of these properties will "appreciate" 20-40% in 2-3 years after which will sell it off for a profit. If new immigrants are able to do this by purchasing "investment properties", imagine what Canadians are doing.

 

[dxdroid]

Simple, borrow and buy. I have seen a few videos on YouTube where recently moved immigrants bought 2-3 properties after just spending 1-2 years in Canada by taking loans because the value of these properties will "appreciate" 20-40% in 2-3 years after which will sell it off for a profit. If new immigrants are able to do this by purchasing "investment properties", imagine what Canadians are doing.

The market over there is different. I would do exactly the same in Ireland as renting is in demand. So, I would buy the property, rented out, and get someone to pay for it. After that I would sell it etc. however as a normal person in EU it is extremely difficult to do that. In US or Canada if you buy the condo for rent it is for rent - it is business. You would not simply buy another condo and leave it empty waiting for it to get up in the value.

 

[dxdroid]

@dxdroid I am curious are you Eastern/Central European? You seem to know too much about this region

I am from Poland but I live in Ireland for 14 years.