Has anyone purchased a Tour Des Canadiens condo?
View Single Post
11-01-2012, 10:10 AM
Join Date: Jun 2008
Originally Posted by
Listen man, you have your opinion, and I have mine. If you believe that in 10 years prices of Condos will go down (lower than their actual value right now that is) then let me ask you this:
In the past 10 years, if you bought a condo at 100k, now it will be equal to at least 250k. If you bought a condo 15-20 years before that, the condo that was worth 75k is now worth 250K. People that bought their condos 30 years ago for I dont know how much, now they are worth at least 250k.
Land is becoming more and more scarce, population keeps on growing and aging. All the baby boomers that are gonna retire soon, where do you think they are going to live? in big houses? alot of them will actually start looking for condos. Not to buy only, but also to rent. An old man and woman will not want to cut grass, do the pool, clean a big house...they will want a little nice condo to settle in for the rest of their days. So even if prices do go down temporarily, renting it out will also be a good temporary option until the market prices readjust.
I agree with you that houses is a better investment. But for the prices they are being sold at right now it's why alot of people are opting to go for Condos. And the whole thing about unemployment causing high supply, I agree with you. But the baby boomers will increase the demand aswell causing it to go back to it's equilibrium point. But you do know that the last 5 years we've been going through a recession. We've had high unemployment rates and people were getting fired left and right. They still do! I even lost my job 2 years ago because of that but guess what? Condo prices are still high! they are higher than they have ever been and people are still buying them. There is alot of Condo constructions around the downtown area and we don't know how this will impact the Real estate market in the future for sure, but I think that the increase in Canda's aging population will increase that demand for condos in the near future. We might have that little bubble like Vancover is having right now, but overall, the price will still give you more than what you put in if you wait for the right moment to sell it. There always will be those fluctuations in prices but it will readjust. Just keep the condo and rent it out.
But then again, it's all a matter of opinion and speculation. I just dont see how prices will crash and stay low forever. There is that risk, of course, but in Canada and the way Canada has been handling it's economy, I think we're going to see a similar pattern than what we saw in the last 30 years.
You also state that if I bought a condo for 75K 20 years ago it would have been worth 100K 10 years ago.....Suggesting a 33% increase over 10 years or a ROI of 3.3%, which, although acceptable today would have been laughed at as a ROI on the markets in the 90's.
Housing is never a bad investment, but to expect such a whopping return is laughable. You are buying in to the Real Estate dogma my friend.
View Public Profile
Oleg Petrov's albums
Find More Posts by Oleg Petrov