Is it wise to purchase property?

[torontosm]

Hey torontosm, don't just emphasis the current market conditions.

Since in the other post, you said you have been living in Canada (only in Toronto?) before 2002, then give us some idea what the property market was like in the late 1990s compare to now. I know in Vancouver, property prices had been rose substantially at least for the past fifteen years. Also, you said prices are already declining and forecast to continue to do so - Like I mentioned earlier, some reports had said the prices may go up 4% this year and in my recent realtors.ca search, I don't see prices are declining - maybe Toronto? I'm still not sure about this because previously scylla said there were bidding wars in GTA and prices are going to push higher - I'm confused about the property market in GTA right now - one said property prices is declining while the other said it's going to push higher..

On the other post, you said you don't trust reports from TREB that are obviously biased and whose number fluctuate on an ongoing basis. But the fact is market conditions in equity and property fluctuates also.

Since you brought it up, yes prices have been rising since the mid-90's. But do you remember what happened in the early 90's? Do you remember how much money was lost in real estate, and how many people were forced to file for bankruptcy?

Real estate prices are heavily dependent on a variety of factors, but primarily on the economy. Looking at the state of the Canadian economy, no rational person can claim that housing prices can continue to increase. The only reason they even got to where they are at is due to artificially low interest rates intended to spur the economy (which had the unfortunate effect of causing a massive housing bubble instead).

With regard to evidence of prices declining, look at what's happening to housing prices in Alberta today. just yesterday there was a story in the Post of a lady whose house was "worth" $1.5 million 6 months ago, and now she can't get a bid for $900k. Now couple this with the massive layoffs we are witnessing in Ontario, and it's only a matter of time before the same weakness spreads to Toronto as well.

As for the TREB, what I meant is that they keep going back and restating their figures. So, they will issue a rosy press release about how home sales and prices are up which will be picked up by the media. Then, a few weeks later, they will quietly go back and adjust the historical figures so that the actual net numbers show a decline in sales and prices. If you track this carefully, you will see that this is a consistent pattern and theme with them.

 

[steaky]

Since you brought it up, yes prices have been rising since the mid-90's. But do you remember what happened in the early 90's? Do you remember how much money was lost in real estate, and how many people were forced to file for bankruptcy?

I'm not aware of people being forced to file for bankruptcy but I'm not surprised people filed because probably their finance was not in good position to pay for increased mortgage interest. The Canadian economy was bad those days until the Liberals came to power in the mid-90s.

Anyways, housing prices in Toronto have been rising since the 80s and there were shortfalls in the early 90s and pickup again since the mid-90s...

 

[torontosm]

I'm not aware of people being forced to file for bankruptcy but I'm not surprised people filed because probably their finance was not in good position to pay for increased mortgage interest. The Canadian economy was bad those days until the Liberals came to power in the mid-90s.

Anyways, housing prices in Toronto have been rising since the 80s and there were shortfalls in the early 90s and pickup again since the mid-90s...

It wasn't just the mortgage interest that hurt people. On average, prices decline by 25% between 1989 and the mid-90's. When that happens, your equity is completely wiped out (and more for most people who only provide a 5-10% down payment). Then, the bank needs to re-adjust the total mortgage amount and asks you for additional equity to support their Loan to Value ratios when your mortgage resets (usually every 5 years). When that happens, people need to come up with additional cash as a new downpayment which is not always easy to do.

Prices have NOT been rising since the 80's, and I have no idea where you got that idea from. As stated here,

"Canadian housing market slumps tend to be comparatively mild, but they can last for years. After reaching the $158,000 mark in 1994, national average prices didn’t hit that level again until 1999. In Toronto, prices peaked at $254,197 in 1989 and didn’t see that level again for more than 12 years." (http://www.theglobeandmail.com/globe-investor/personal-finance/mortgages/canadas-housing-hangover-real-estate-boom-meet-dot-com-crash/article6867321/)

So, between 1989 and 2001, prices were in effect flat on a net basis, and suffered significant declines in the interim.

 

[steaky]

Prices have NOT been rising since the 80's, and I have no idea where you got that idea from.

Okay. I was just confused with your previous message of happened in the early 90s because you did not mentioned what happened in the 80s until your recent post.

 

[torontosm]

Okay. I was just confused with your previous message of happened in the early 90s because you did not mentioned what happened in the 80s until your recent post.

the peak was in 1989, and prices crashed through the 90's

 

[A_ali]

Hi i also wanted to know I recently booked ahouse in milton its a mattamy new project when I booked i signed contract etc the posession if this house will be in October so all I wanted to can I cancel this deal now and how?

Please experiance members advise.

 

[steaky]

Hi i also wanted to know I recently booked ahouse in milton its a mattamy new project when I booked i signed contract etc the posession if this house will be in October so all I wanted to can I cancel this deal now and how?

Please experiance members advise.

Did you use a realtor for this? If so, contact him/her.

 

[A_ali]

Hello Steaky no I didnt use any realtor actually i booked directly with builder mattamy homes you might have heard their name in Milton.

 

[steaky]

Hello Steaky no I didnt use any realtor actually i booked directly with builder mattamy homes you might have heard their name in Milton.

Never heard of this builder. Seems to me that you would have to contact them for the cancellation.

 

[A_ali]

Hi steaky I called them and they told me that u signed the contract its firm and binding you cant cancel at all? This is what make.me surprise.

 

[ALRIVAS]

Hi Ali you bought from Mattami so you used their contract also that means you have to give them 20% of the purchase price before closing.
You might be able to sale your contract but you have to ask Mattami I don't know their contract.
If they say you can I can help you sale it.
You can contact me through alrivas. com.

 

[torontosm]

Hi steaky I called them and they told me that u signed the contract its firm and binding you cant cancel at all? This is what make.me surprise.

You would need to carefully read your contract and see what the cancellation clauses say. In my opinion, if they are delivering the project on time, you may not have any grounds for cancelling it.

 

[scylla]

Hi steaky I called them and they told me that u signed the contract its firm and binding you cant cancel at all? This is what make.me surprise.

When did you sign the contract? On what date?

There is a cooling-off period of 10 days during which you can get out of the contract. If you are within 10 days of having signed the contract - you can still get out. Otherwise not.

 

[ALRIVAS]

Guys He said the contract is firm so the conditional 10 days are over and there are no clauses or ways to cancel a real estate contact after is firm.
It says on the contract that when you agree to the terms of it. It means you understand what will happen which means you will be penalized for not completing what you agree to do.