Toronto Condos, Lofts and Real-Estate: I’ve been staying away from writing an editorial on the latest in Toronto’s share of the global financial crisis, and let the “experts’ talk. Now that we’ve heard what they had to say (basically nothing) let me tell you what it looks like, “from the trenches” of Toronto’s Real Estate market.
In March 2008 I wrote a series of Toronto Condo Market Predictions, and looking back, I scored 10/10: buyers looking at re-sales, new buyers are priced out of the market, new buildings have greatly improved, and a slow down projected became a new reality.
I’ve also guessed right that Builders will be giving discounts in various forms (free maintenance fees, free parking, etc), and that’s exactly what they have done. The way Condos are marketed in Toronto gives them no other choice, really. Not a big surprise here.
So where we stand now? in all the confusion, stress, fear of value erosion, there has to be some light, and there is:
Buyers: you can find some great deals these days, but you’re not the only one who is looking. You need cash and guts. Cash to grab that contract into your possession, and guts to allow you to overcome your fear and make a smart decision faster then the next investor who is looking for a deal. Stay on the sideline and you get memories, or, act in confidence and make some money.
Sellers: lose your attitude. If you need to sell now, it’s because you must: you must move, you don’t have the cash to close, you lost your job, whatever it is, if you’re selling now, don’t be greedy: entertain all offers and work with your Realtor to close the deal.
Investors: oh my, you’re in heaven! “Cash is King” and if you have that sack of coins let’s go shopping. It’s like the Time Tunnel where prices have regressed to 2005/6 levels. But that’s not enough: you must evaluate each and every purchase and reduce the risks associated with the purchase (ask me how).
Builders: most are you are sitting on the fence and waiting to see what happens. My advise to you, be nice to your clients, call on your top sellers and remember this storm is far from over: if you must sell your project do it with grace.
Landlords: this is a great time to buy “for rent” properties. Rents are up and demand is increasing. I get daily calls for rentals. But before you go out and buy, make sure your numbers work.
Renters: not a good time to move. As I mentioned, rents are up, supply is low, and good rentals are hard to come by. This is your time to pre-approve yourselves and buy a small place you can afford. These low prices won’t be staying here forever.
I welcome our readers to call me and discuss your unique and personal situation. There is so much to know, so many unadvertised properties, so many deals to uncover.
© Yossi Kaplan, MBA
Specializing in Condos, Lofts, Investments and New Developments
Harvey Kalles Real Estate Ltd., Brokerage
tel 1.416.441.2888 x 678