Has anyone purchased a Tour Des Canadiens condo?
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11-01-2012, 12:49 PM
Join Date: May 2003
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.
Okay, look at it this way:
House prices have gone up A LOT, based only on credit growth (read: cheap credit caused by low interest rates). Based on wage/income growth, it would never have moved in the last 10 years because it hasn't grown at all.
Now, credit growth is slowing, even though interest rates are still low. This means less sales now, and prices follow later (supply/demand anyone?).
If interest rates move even 0.5% higher, supply will go up and demand down because less first-time buyers will buy in. This will eventually cause prices to go down too.
I don't know much but I know this: Buying today, after this 100%+ increase on no fundamental reason, is buying the TOP (read: buying HIGH), to sell LOW. Not the other way around. There is NOTHING to fuel this further.... except if governments start GIVING first home buyers 10K+$ freely to keep the bubble alive, or some other trick like that.
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