This is definitely NOT true in Toronto, which is certainly a "hot market":
https://nowtoronto.com/news/toronto-rent-dropped-as-much-as-22-per-cent-downtown
Where to invest in Real Estate
- Thread starter Adamz2019
- Start date
https://nowtoronto.com/news/toronto-rent-dropped-as-much-as-22-per-cent-downtown
That's good news for people moving back to GTA! But it remains a good place to invest.
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Toronto market is currently very inflated so not necessarily a good place to invest.
The article above said "According to Rentals.ca, the average price for a two-bedroom apartment in Toronto went up 1.3 per cent since June to $2,684" which suggest the downward pressure was not the case in general.
The fact is that it is much too early to determine what the impact of COVID-19 will be on housing prices in Canada. Once the government subsidies and mortgage deferrals end, we'll see what the shape of the economy is. If there are large numbers of layoffs, or businesses struggle in general, then it doesn't matter what interest rates are, the market will suffer.
When people claim that the market is ripe for investing becuase rates are low, I just shake my head. The only reason that rates would be low is becuase our economy is struggling. If things were booming, rates would be much higher to curtail inflation.
What the avg rental rate was for a 2 bedroom has nothing to do with whether it is a good investment. The stats don't show empty rentals, rentals of smaller units, etc. There has been a huge increase in purchase prices for homes in the past months in TO that aren't justified with all this uncertainty.
Thank you all for the comments and replies ! 
Very contrasting opinions ! I guess I'll wait for a year's time until the current situation settles abit before moving ahead with any purchases. But from the looks of it, I'll go for something in the GTA. From an investment point of view, there will always be some sort of demand to settle there and most likely I will get a passive income from rental for the most part I guess. I just don't know if I should go for a Condo in an apartment tower or detached or a townhouse ?
Very contrasting opinions ! I guess I'll wait for a year's time until the current situation settles abit before moving ahead with any purchases. But from the looks of it, I'll go for something in the GTA. From an investment point of view, there will always be some sort of demand to settle there and most likely I will get a passive income from rental for the most part I guess. I just don't know if I should go for a Condo in an apartment tower or detached or a townhouse ?
What goes up must always come downThank you all for the comments and replies !
Very contrasting opinions ! I guess I'll wait for a year's time until the current situation settles abit before moving ahead with any purchases. But from the looks of it, I'll go for something in the GTA. From an investment point of view, there will always be some sort of demand to settle there and most likely I will get a passive income from rental for the most part I guess. I just don't know if I should go for a Condo in an apartment tower or detached or a townhouse ?
If everyone is SO sure of the real estate market in Toronto, you can easily Google what happened back in 1988/1989....
Same thing with oil
Why do you think the oil industry is in such a mess
Because the industry always banked on high oil prices .....and we can all see what happened there
And none of this “ it’s different this time “, it’s never different. The fundamentals of economics remain the same , or maybe most of these posters are SO young they have no clue what a full blown housing correction looks like
No worries, you will
Would personally stay away from condos especially if you aren’t able to be actively involved in the condo board.Thank you all for the comments and replies !
Very contrasting opinions ! I guess I'll wait for a year's time until the current situation settles abit before moving ahead with any purchases. But from the looks of it, I'll go for something in the GTA. From an investment point of view, there will always be some sort of demand to settle there and most likely I will get a passive income from rental for the most part I guess. I just don't know if I should go for a Condo in an apartment tower or detached or a townhouse ?
Age cannot guarantee finacial success neither will time. Full blown housing correction has been in discussion since decades. Just in Toronto residential segment saw a price growth of 105% on an average sunce 2010. If one does little exploration of localities and use some common sense in investing there is not a better & safer investment than real estate especially residential segment.
Comparing a commodity to real estate makes no sense. IMO
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.
I bought a property in Montreal back in 2018 for $450k. It is located near Bell Centre stadium in the financial district.
Its value has gone up by $100k already by today. I would say Montreal is the next hot market for Real Estate in Canada after Toronto and Vancouver. This is due to the fact that they do not have the extra 15% tax on foreigners like the other 2 have, so there is an influx of Chinese buyers who coming either to get a property for their children who study in the downtown area, or invest in the market. I believe it will be the fastest growing market in Canada in the next 5 years. Just like Vancouver back in 2008. So its might worth a shot to think about investing here.
Its value has gone up by $100k already by today. I would say Montreal is the next hot market for Real Estate in Canada after Toronto and Vancouver. This is due to the fact that they do not have the extra 15% tax on foreigners like the other 2 have, so there is an influx of Chinese buyers who coming either to get a property for their children who study in the downtown area, or invest in the market. I believe it will be the fastest growing market in Canada in the next 5 years. Just like Vancouver back in 2008. So its might worth a shot to think about investing here.
Thanks alot for sharing ! I didnt know about the tax difference in Montreal. Will definitely start looking into it.
Prices in Quebec are rising not because of the tax difference but because the market was pretty flat for 20 years, many businesses left Montreal and the province had a lot of problems. Now that things have turned around for the province there have been price rises but they are still far behind the rise in prices in other provinces who have seen price rises for 20 years.