I can’t help but see that the ultimate puppeteer in the game is “the powers that be“!
I’m no head of a national bank, accountant, Phd, MBA, auditor or anything like that, but rather a lowly real estate broker.
I am concerned about where the condo market is going and it has become apparent to me that the driving force behind employment in Ontario is the construction industry, which is builds condos, so it seems apparent that the government is intimately invested in the Toronto condo market, despite it being over-priced and over-saturated.
In my opinion, the only thing propping up the Toronto market for the past few years is the Bank of Canada’s willingness to make available “cheap money“.
For home owners that means buying “bigger, sooner, or more” or “refinancing and doing whatever you want with the cash“.
I’m not convinced that our deficit plagued government sets a very good example here.
Consumerism is based on having people spend their money and I’m all for that, but in Condo Land, they just don’t get their money’s worth!
So, is the condo industry a government “tool” for employment? It sure is good for the City of Toronto, who received millions of dollars in application fees, site variance applications, building permits, to name but a couple revenue streams that condos sustain for them.
So we’ve got the perception of “sound employment” (based on real estate construction) and a “sound housing sector” (based on the availability of “cheap money“) through a condo industry that is “over-priced” by up to 40% according to a number of recent media reports. And who pays for all of this? That’s right, the consumer!
When the laws of gravity kick in, and they inevitably must kick in, the house of cards collapses. Too many buildings coming on stream too fast at ridiculously overvalued prices is a toxic formula that I’ve been warning about for years now. And don’t even get me started on the quality that you get!
This is not my logic! It’s the basic laws of supply and demand. I didn’t get this awareness from a book or a university course. I lived through the “real estate market crash of 1989” here in Condo Land.
Many of the exact same indicators are present today (with the only exception being interest rates), so much so that I’ve turned my clients toward quality resale buildings where they know what they are getting in to.
I am not sufficiently educated to be able to know what all these mega banks and governments are doing or are up to, but my lay-man’s understanding and common sense tells me that speculating on just any condo in this city, regardless of price, is “inviting unnecessary risk“.
When you Register with me as your Buyer’s Agent, that risk is minimized to the lowest possibility with your regard to buying a luxury condo in Toronto.
For those interested in the top end of the market, there are quality units available in quality buildings that can be negotiated for if you know where to look and how to present your case.
That’s part and parcel of my unique FREE buyer agency services to you.