This is one of the worst theories you've ever had on here and some of yours are whoppers. Real estate is a local market and your claims that prices are over valued is based on nothing at all. Not that it ever stopped you from making absurd claims, like the idea that interest rates should be a certain value now because they were a certain value 20-30 years ago. Canadian mortgage rates got up near 20% at one point. There is no "normal" rate, whether it's 2.89% ( our last rate ) or 18%. Markets reflect all factors including supply and demand.
You seem to think the world should listen to your declarations. Not how markets work. Maybe, just maybe, your long term instincts are really bad. You told one poster in late spring 2009 to liquidate all their US holdings; that the market was going to crash the 2008/2009 low. That was the worst possible advice; that market was the best risk/return equation to go long in our lifetime. Why could you not see it ? You should be questioning your assumptions not repeating them over and over again for 9 years.
You are not alone of course. There are posters on here who declared Toronto real estate a bubble in 2010. 2010-2017 was a tremendous time period to own Toronto real estate. Just goes to show that many traders have horrible long term ideas about markets. Might be the short term horizon they trade on, especially day traders. Everyone makes mistakes but it's to prolong your mistakes and not learn from them that is a problematic.
Are you long Toronto real estate? My family is...not that I agree.
What you fail to understand is that this entire global market place in every asset class has had nothing but handouts and free passes, what I'm saying is that the free market has not once dictated price movement in any asset class since the fed has intervened....remove the fed from the equation and everything I have mentioned would be a true reality....
Almost every factor supports a strong Toronto market through year 2050. The only risks are those who bought recently ( let's say roughly within 3 years ) and have no intention of residing here longer term. Most of the press involves detached homes which is a fairly small portion of the market with no new supply at all. I'm not a rich owner like some of my friends, but the money I've saved for years now on my living space is huge, and the price appreciation is a nice bonus. In fact, the biggest risk in the Toronto market is for renters who have to pay a lot to rent a decent place in Toronto, money they'll never see back. If you rent a modest space for $25K a year, that adds up over 5-10 years.
I didn't necessarily plan to be in this situation when I bought, but the best opportunities are like that they just make sense and you don't have to babysit your investment or worry about at all. Here's an eye opener. If you'd have bought TD Bank in 1995, it cost $2.50 ( adjusted for splits ). That same stock costs $75 today and is viewed as a good buy at that level. I never would have been excited about TD Bank as a purchase in 1995. That's because I lacked the patience at that point to do so. Luckily I was patient on the real estate side, it's been the easiest most stress free investment in my lifetime.
It is my nephews and nieces in Toronto that are buying...right out of college. I understand they have a long holding period ahead of them, but also, it feels like they are jumping in fresh out of school. We shall see. I am sure it will work out eventually.
-10l 2728.5
stop at 18.5
It is my nephews and nieces in Toronto that are buying...right out of college. I understand they have a long holding period ahead of them, but also, it feels like they are jumping in fresh out of school. We shall see. I am sure it will work out eventually.