If you say so then of course it must be so...and for the record... I did not say so, read the thread title and stop trolling please.
Profit from potential home price drop in Canada, especially Vancouver and Toronto
- Thread starter M.W.
- Start date
Is that because you are in russia and no bank will deal with you?
How did you get that idea? No, I said that because I worked professionally in trading before and had access to otc products. Now on the retail side things are much more limited.
According to this https://betterdwelling.com/canadian...now-worth-over-6-1-trillion-more-than-3x-gdp/, the aggregate Canadian real estate worth is now $6.1 trillion CAD as of 2020 and its GDP as of 2020 is only $1.645 trillion USD, approx. $2.02 trillion CAD at an average USD/CAD exchange rate of 1.25. And USA's aggregate real estate worth is only 1.7 times of its GDP. So if you want to think of the entire country as a person, he's (I will use he to represent both genders) only making $2.02 trillion CAD a year, how did the real estate property value become so high if the country could only afford to buy 1/3 of the real estate property value? Something does not add up.
And in fact, according to this https://betterdwelling.com/foreign-...te might have,in homeownership soared in 2020., about 1 in 10 condos newly built were owned by foreigners and 1/20 in homes in total. And that's just ownership by foreign individuals. Many of the real estate properties were bought by foreign-owned companies and by trusts (to avoid the foreign homebuyers' tax) and ownership of real estate by foreign companies and trusts are not counted in these 1/10 or 1/20 ownership statistics. So if you want to talk about foreign ownership, the ownership statistics is lot higher than 1/10 and 1/20 because there is no way that aggregate real estate market value can be hiked up to be 3X of the domestic GDP by just 5% of the buyers who are foreigners if 95% of the buyers who are domestic residents are just making 1/3 of the real estate property value and the banks in Canada are not willing to lend out 2/3 of the property price to a potential buyer. And remember there is very little mortgage fraud in Canada and there is very little subprime loans in Canada. So who are those buyers and where do they come from that bought up those properties if nobody local is able to afford them?
Canada's "leaders" have stated that they want the population to grow to 100 million by 2100. If they get their way then any price drop will be only temporary as land becomes more and more scarce.
Canada is 98% empty, almost everyone lives within 500km of the us/can boarder
but i dont see a drop in RE here
And yet all the population growth is urban centers. More than 100% of Canada's population growth is from immigration. Look where all the immigrants are coming from, it's not from cold climates. Very few actually wish to colonize the frozen frontiers. Easy to see that empty space will remain mostly empty while cities continue to get more crowded and expensive.