April 2024: What Does Capital Gains Mean For Real Estate Investors & Market Update #capitalgaintax
Summary
TLDRIn this market insights video, Ryan Coyle from connect.com discusses the GTA real estate market, highlighting significant changes in capital gains tax for personal and corporate investments effective June 25th, 2024. He provides a detailed analysis of the Toronto real estate board's market watch, noting price appreciation in various housing types except townhouses. Coyle emphasizes the importance of understanding market trends and supply-demand dynamics, particularly the decrease in new construction supply and its impact on future prices. He also shares investment opportunities in the Dominican Republic and upcoming developments in Toronto, encouraging viewers to reach out for personalized market updates and advice.
Takeaways
- 📊 Ryan Coyle from Connect.com provides monthly macro market insights and offers to analyze micro markets upon request.
- 📈 As of June 25th, 2024, capital gains tax on personally held real estate investments will increase from 50% to 66.7% for profits over $250,000.
- 💼 Corporations will face a capital gains tax increase to 66.7% on every dollar, not just above $250,000, but this may still be advantageous due to generally lower corporate tax rates.
- 🏢 The media may not always provide the right context for numbers; for example, a reported 26% increase in mortgages refers to a very low number of borrowers entering AAR.
- 🔍 Toronto Real Estate Board's market watch shows mixed results with price appreciation in most asset classes except townhouses.
- 📉 There is a significant affordability gap between detached homes and condos, which is wider than ever, indicating potential shifts in the market.
- 📉 The gap between 905 and 416 areas is also widening, suggesting affordability concerns are pushing buyers further from downtown Toronto.
- 🏘️ Condominiums, once a hot market segment, are currently experiencing a soft market with increased supply and reduced demand.
- 📊 Despite increased listings, average prices have remained relatively flat, suggesting a balanced market with potential for growth.
- 📈 Historical data indicates that interest rates and property prices are inversely correlated, suggesting that lower rates in the future could lead to higher prices.
- 🏢 There is a significant future supply shortage of new construction in Toronto, which could drive up prices as supply and demand dynamics change.
Q & A
What is the purpose of the GTA market analysis presented by Ryan Coyle from connect.com?
-The purpose of the GTA market analysis is to provide year-over-year month-over-month macro market insights, focusing on the Greater Toronto Area (GTA) real estate market. It aims to help understand market trends, affordability gaps, and what's currently hot in the market, which can be useful for real estate investors and those interested in micro-market updates.
What is the change in capital gains tax for personally held invested real estate as of June 25th, 2024?
-As of June 25th, 2024, the capital gains tax for personally held invested real estate will increase. It will go from 50% to 66.7% on profits over $250,000. This means that profits up to $250,000 will still be taxed at 50%, but any profit above that threshold will be taxed at the higher rate of 66.7%.
How does the new capital gains tax affect corporations differently from personal holdings?
-Corporations will see an increase in capital gains tax on every dollar, not just on profits over $250,000 like personal holdings. However, corporate taxes are generally lower than individual taxes, so despite the higher capital gains rate of 66.7%, investors might still be left with more money in their pocket after taxes when investing through a corporation.
What is the significance of the mortgage stress test introduced in 2017 or 2018 in the context of the current market?
-The mortgage stress test, introduced in late 2017 or early 2018, required borrowers to qualify for their rate plus two percentage points or the overnight lending rate plus two percentage points, whichever was lower. This policy has contributed to a historically low number of borrowers going into arrears, indicating that despite higher interest rates, the market remains stable due to borrowers being more qualified to borrow.
What is the current trend in the Toronto real estate market regarding different housing types?
-The current trend shows price appreciation across all asset classes except for townhouses. Detached homes have seen a 2.2% year-over-year growth in the 416 area and 1.2% in the 905 area. Semi-detached homes have a 3% growth in the 416 and a 2.6% decrease in the 905. Townhouses, surprisingly, are seeing year-over-year price depreciation.
What does the term 'AAR' refer to in the context of the real estate market?
-AAR stands for Arrears, which refers to a situation where borrowers have missed payments on their mortgage and are behind on their mortgage obligations. The script mentions that the number of borrowers going into AAR has increased from 0.14% to 1.18%, which is still considered very low.
How does the number of new listings compare to sales in the current Toronto real estate market?
-In April 2024, there were about 7,000 sales, which is comparable to the previous year. However, the number of new listings has almost doubled, with 18,000 new listings compared to 10,000 in the previous year. This increase in listings without a corresponding increase in sales is adding more months of inventory to the market.
What is the historical average price change for the Toronto real estate market since 1980?
-Since 1980, the historical average price change for the Toronto real estate market has been a compounded annual growth of 6.73%. This long-term outlook helps to illustrate the market's overall stability and growth over time.
Why is the downtown Toronto condo market currently considered a soft part of the market?
-The downtown Toronto condo market is considered soft due to an oversupply of completed units compared to demand. There are 'panic sellers' who are selling aggressively due to affordability issues and high interest rates, which is driving down the overall average price in this segment of the market.
What are the implications of the current market conditions for buyers and sellers?
-For buyers, the current market conditions present an opportunity to take advantage of lower prices and increased inventory. For sellers, it is advised to wait out the market if possible, as historical trends suggest that the market will likely recover and appreciate in value in the future.
What is the significance of the drop in the number of cranes in the GTHA?
-The drop in the number of cranes indicates a decrease in new construction projects, which could lead to a lower supply of new housing units in the future. This is a sign that the market may be adjusting to the current oversupply and could lead to a tighter market with potentially higher prices in the future.
What does the affordability gap between detached homes and condos in the 416 area currently indicate?
-The affordability gap between detached homes and condos in the 416 area is over a million dollars, which is a significant difference. This suggests that condos may be becoming more attractive to buyers who are priced out of the detached home market, potentially leading to increased demand for condos.
What is the current state of the future supply of new construction in Toronto?
-The future supply of new construction in Toronto is expected to drop drastically by 2028, with record low deliveries of new units. This is due to a combination of cancelled and halted construction projects, which could lead to a tighter market and potential price appreciation in the future.
What are some of the current real estate opportunities being promoted by Ryan Coyle?
-Ryan Coyle is promoting several real estate opportunities, including Secret Garden in the Dominican Republic, Cliffside Condos by LCH Developments in Scarborough, and upcoming projects like Rain by LanLamb Developments in Streetsville and assignments in Burlington. These opportunities offer various incentives, tax benefits, and potential for capital appreciation.
Outlines
📈 GTA Real Estate Market Insights and Capital Gains Tax Update
Ryan Coyle from connect.com provides a year-over-year macro market insight for the Greater Toronto Area (GTA). He offers to delve into micro-market statistics upon request, mentioning specific areas like Yorkville and City Center. Coyle discusses two key metrics, affordability gaps, which he uses to predict market trends, and current hot topics in the market. He addresses the increase in capital gains tax for personal and corporate real estate holdings, effective June 25th, 2024, explaining the implications for real estate investors. Coyle clarifies that while profits up to $250,000 will still benefit from a 50% capital gains tax, profits above this threshold will be taxed at 66.7%. He also differentiates the tax implications for corporations versus personal holdings, suggesting that despite higher tax rates, investing through a corporation could still be more profitable due to lower corporate tax rates. Lastly, Coyle dispels media-driven fears about mortgage rates, explaining that the number of borrowers entering Arranged Assistance Rate (AAR) is very low due to government policies like the mortgage stress test introduced in 2017.
🏘️ Toronto Real Estate Market Analysis and Long-Term Outlook
The script continues with an analysis of the Toronto real estate market, highlighting year-over-year price changes and market activity. Coyle emphasizes the importance of not relying on a single month's data and instead looking for consistent patterns to predict market direction. He notes a surprising decrease in townhouse prices and discusses the overall price growth, which has remained relatively flat despite an increase in listings. Coyle points out that while sales are comparable to the previous year, the number of new listings has nearly doubled. This influx of listings is increasing the months of inventory, but prices have not dropped significantly, indicating a resilient market. He also presents a long-term market outlook chart, showing the average price change from 1980 to the present, with a compounded annual growth rate of 6.73%. Coyle suggests that the market may be near the bottom of its cycle, based on historical patterns and government interventions, such as adjusting interest rates in response to market fluctuations.
📊 Current Market Trends and the Impact on Condos and Housing Supply
Coyle discusses the current state of the condo market, particularly in downtown Toronto, where there has been an oversupply due to a high number of completions and a decrease in demand. This has led to 'panic sellers' aggressively pricing their properties, affecting the overall average price. Despite this, he sees opportunities for buyers, as some properties are being sold well below market value. Coyle also addresses the correlation between interest rates and property prices, noting that historically, when interest rates decrease, property prices tend to increase. He advises buyers to take advantage of the current market conditions, as waiting for rates to decrease further could result in higher property prices. For sellers, he recommends waiting out the market due to the expected future appreciation in property values. Coyle also highlights the significant drop in new construction supply, which is expected to drive future price increases due to the principles of supply and demand.
🌐 Global Real Estate Opportunities and Upcoming Projects
The script shifts focus to global real estate opportunities, specifically mentioning a development in Punta Cana, Dominican Republic, by Novel Properties. Coyle discusses the attractive cash flow and capital appreciation projections, as well as tax incentives for investing in this region. He also highlights upcoming projects in various Canadian locations, including Cliffside condos in Kingston and Rad in Scarboro, and new developments in Streetsville, Mississauga, and Burlington. Coyle invites viewers to reach out for more information on these opportunities and to discuss their specific real estate needs, whether buying or selling.
🔍 Market Updates and Opportunities for Buyers and Sellers
In the final paragraph, Coyle encourages viewers to contact his team for personalized market updates and valuations of their properties. He mentions the availability of assignments and resale opportunities in Toronto, providing an example of a recently sold two-bedroom unit at Noou Residences. Coyle stresses the importance of understanding the current market dynamics and the potential for significant savings and opportunities, especially for buyers looking to enter the market at a favorable time.
Mindmap
Keywords
💡GTA Market
💡Micro Market
💡Affordability Gap
💡Capital Gains
💡Mortgage Stress Test
💡Price Appreciation
💡Months of Inventory
💡Days on Market (DOM)
💡Condo Market
💡Supply and Demand
💡Interest Rates
Highlights
Ryan Coyle from connect.com provides monthly Greater Toronto Area (GTA) market insights.
Year-over-year and month-over-month macro market insights are examined for the GTA market.
Micro market updates and statistics are available upon request for specific areas like Yorkville or City Center.
Affordability gaps and market trends are key metrics watched to predict market direction.
Capital gains tax on personally held invested real estate will increase from 50% to 66.7% over $250,000 as of June 25th, 2024.
Corporations will see a capital gains tax increase on every dollar, not just amounts over $250,000.
Media may not always provide the right context; understanding numbers is crucial, such as the low AAR rate of 0.14% to 1.18%.
The mortgage stress test introduced in 2017 has contributed to historically low AAR rates.
Toronto Real Estate Board market watch numbers show price appreciation across all asset classes except townhouses.
There's been a surprising year-over-year price depreciation for townhouses in the 905 area.
Sales figures are comparable to last year, but new listings have almost doubled, affecting market dynamics.
Despite increased listings, prices have remained relatively flat or slightly increased month-over-month.
Long-term market outlook shows an average 6.73% compounded annual growth since 1980.
Government policies have helped control market volatility and price fluctuations.
The condo market, particularly in downtown Toronto, is currently soft with a higher supply than demand.
Opportunities exist for buyers as some sellers are aggressively pricing properties to sell.
Interest rates and property prices have an inverse correlation historically.
Buyers are encouraged to take advantage of the current market conditions.
Future supply of new construction is expected to drop drastically by 2028.
A visible sign of lower supply is the decrease in the number of cranes in the GTH.
Affordability gaps are widening, especially between 905 and 416 areas, and between detached homes and condos.
Investment opportunities in international markets like Secret Garden in the Dominican Republic are being promoted.
Upcoming developments like Rain in Streetsville, Mississauga, and assignments in the resale market are highlighted.
Transcripts
what's up everybody Ryan Coyle here from
connect.com Market insights we like to
just look at a year-over-year month-
over Monon macro Market Insight every
month so we're taking a look at the
entire GTA market for those of you
interested in micro Market uh updates
statistics please reach out to me or a
team member we can look at that uh
specific Market with you for example
Yorkville Mr Saga City Center we can
break down those stats for you as well
then we're going to look at the
affordability gaps these are two um
metrics that I tend to to watch because
they can tell a story of what direction
the market might be going in and then
we're going to look at what's hot in the
market
today all right capital gains so what
does this mean for Real Estate Investors
well first of all let me clarify I'm not
an accountant so seek professional
accounting advice if you have a detailed
complicated situation I just want to
give you a high level overview of what
is happening with these changes so as of
June 25th 2024 capital gains will
increase for personally held invested
real estate it'll go from
50% um to
66.7% over
$250,000 so if you make a
$250,000 profit it'll still be a 50% cap
tax capital gain so anything above
250,000 will now be a
66.7% capital gain now I mean if you're
making
$250,000 there's a lot to celebrate but
the tax is obviously going to cost us uh
Real Estate Investors who are investing
over a long period of time and are
seeing huge gains now what is the
difference between a corporation and
being held personally so corporations
are going to now
see a tax capital gains increase on
every dollar so not every dollar over
250,000 but every single dollar will be
a capital gain of
66.7% now corporate taxes are generally
much lower than individual taxes so for
me for example still makes sense to
invest in a corporation my profit will
now have to pay more tax but I will be
left with more money in my pocket versus
doing it personally based on my personal
tax rate
is the media showing us the right
picture you really need to understand
the context behind the numbers so a lot
of people have expressed fears or
concerns over this number that was I
think it was in a glob Mail article a
few weeks ago stating mortgage or rear
are plus 26% so if you really look at
the data what does that actually mean so
they've gone from
0.14% to1
18% what that means
literally two out of every 1,000
borrowers have gone into AAR doesn't
mean they have gone into
foreclosure um this means they've gone
into AAR now that is a very very low
number in fact it's it's you know the
numbers used to be considerably higher
one of the things we have to actually
thank for that is one of the policies
the government made that I think was
actually an intelligent one and that was
the mortgage stress test so in 2 and
late 20177 or maybe it was early
2018 they introduced a stress test that
stated that oros would have to qualify
for their rate Plus two% or the
overnight lending rate plus 2% whichever
was lower and that would allow them to
then get financing based on that
qualification so people are more
qualified to borrow today and that's why
that number is historically very low
today24 April Market recap let's take a
look at the numbers so all right so
let's look at the Toronto real estate
board market watch numbers these are all
high level we're going to look at the
different housing types then we're going
to look at the 416 and 905
year-over-year
prices anyone who wants us to break down
a specific Market a specific building in
a market Home Street in a market uh
reach out to us because there's just so
many markets within markets that we
can't do that on this presentation I
really want to keep this uh monthly
market update within uh 10 minutes so uh
I'm going to fly through these numbers
and please reach out if if you have
further questions so we're starting to
see uh price appreciation across all
asset classes except for tow houses um
you know we've got 2.2% detach over-year
growth 905 is 1.2 uh 3% for semis we've
lost 2.6 and the 905 for semis townhouse
is surprisingly we're seeing
year-over-year price depreciation which
I think is actually surprising now you
know this is this is one month of data
set uh year-over-year month of April so
I'd like to see what happens next month
um but you know when when you're seeing
consistent months and a pattern that's
when you can tell where the market is
going so you often have to take a single
month with the grain of salt and that
might be the case of town houses so
we're looking at condo Apartments this
is not a surprise for me we're seeing
price appreciation in the 416 uh and
some softness in the
9905 I really like looking at this chart
because it breaks down the number of
sales active listings months of
inventory average prices and days on
market for the last 12 months so where I
just showed you year-over-year growth we
could actually see the month-over-month
patterns and this will give you a more
telling story of what direction the
market might be going in so right now
you'll see in in April 2024 we're at
just over 7,000 sales which is very
comparable to April last year what is uh
maybe an alarming number is we're seeing
18,000 new listings versus is 10,000 so
almost double the amount of new listings
but sales are relatively the same as
last year so what is that naturally
going to do that's going to add more
months of inventory now what's really
really interesting and a lot of people
are having a hard time wrapping the head
around it is prices have remained uh
relatively flat and then some of the
housing types have actually gone up
increased month over month uh which
we'll jump into a little bit further
here so this is overall price uh growth
uh you know we're we're we're just
slightly above the year-over-year but
you know we took a run up here early
last year as we thought rates were going
to hold and then rates uh started coming
up again then we saw prices start to dip
back again so we're starting to see
prices make their way back up again I
think that's mainly based on consumer
confidence so although there all are a
lot more listings in the market we're
starting to see buyers come off the
sidelines in specific asset classes
we're not seeing so much of that uh yet
in condo but we are seeing in the
lowrise market more condos now we're
still in a healthy days on Market here
um you know the average is probably uh
based on all of this um you know 18
we're currently at 19 so we're in a good
position
there I always like showing the
long-term Market Outlook so we can see
the average price change over a long
period of time this is all the way from
1980 and you can see the volatility here
the spikes up and down down and you can
see right here that we've averaged
6.73% compounded annual growth over that
same period of time so the reason why
this is a really telling and important
um graph to look at is because you can
see different patterns in history for
example this is where we saw
prices shoot to the roof in the mid 80s
we probably heard people tell us about
our parents grandparents I've read a lot
about it um but you can learn a lot from
history so what happened was that was a
prolonged period of a Down Market it
went up so quickly prices shut up what
comes up always comes down but what's a
lot different in these markets where
we've seen these ups and downs in
previous markets is the government has
learned a lot from these These past
Corrections and and they really do do a
good job believe it or not at um you
know controlling prices from taking off
and when prices come down so they'll do
that through monetary policy through
government policy taxation different
things like that so you'll see here that
we saw Price's plummet here that was due
to covid what did they do they dropped
interest rates we saw them come up now
this is a short period of
time from when they spiked and then we
saw them come
down so what this tells me is that we're
probably close to the bottom of the
cycle I me many believe that we already
have passed the bottom and we've started
to see some month-over-month
growth
and treb average price so this is a very
important chart to understand and pay
attention to so as I just mentioned we
saw in covid prices take a run up due to
interest rates despite the economy
interest rates increased drastically
quickly very quickly so we saw prices
fall very quickly there's a direct
correlation to interest rates
and then we saw them come up again we
thought rates uh early last year were
going to to to stay still and then they
went up prices went down so why is this
line so important because histo history
over 45 years of of recording this data
has followed this line so although
there's going to be blips up and you
know above and below this line you're
always going to be able to end up at
this line at some point in time over a
short period of time so what this tells
me here is that within probably the next
6 12 18 months we know that this is
eventually this line is going to
continue this way and these price
average price will eventually line up
with that so real estate as we was
always said always said is is is
especially for investing is about
holding for the long term because we
know where prices will be over a long
period of time we don't know where it'll
be over a short period of time so these
are the average prices for all housing
types in the tronto real estate board
data now I want to talk about condos
because one of the segments that was
actually it was the hottest segment in
Canadian real estate before the pandemic
was downtown Toronto condos that has
become a very soft part of the market
currently and and what's really
happening in that market is we're seeing
last year more completions than we had
ever seen but we're not seeing the same
amount of demand so right now there are
uh let's call them Panic sellers that
are selling because of affordability
because of rates rates are way too high
so they can't afford to keep the condos
or the properties so they're selling
them very aggressively and that is
bringing down the overall average but
especially for that segment of the
market so you know I'll just take a step
back if you look at months of inventory
we're sitting at 2.54 months of
inventory for housing types but in the
condo Market that's actually over to
four so that's an average uh whereas
condos is about four and a half right
now so the market really has to work
through that Supply which I have no
doubt it will as soon as rates start
coming up condos are mainly entry level
buyers where they want cheaper mortgage
rates but what's really important for
those of you buyers that are watching
and we work with Buyers we work with
sellers um that affordability um also
doesn't it doesn't necessarily have to
do with interest rates it also has to do
with the price of the property so
there's no better time to actually buy
right now and let me walk you through
what I mean by that so this is an
example of a building that recently
registered in
Cumberland these prices are being sold
well below what they originally paid and
well below market value for Yorkville
and what this is It's a small few people
uh not all these properties that are
listed here on the MLS there's a small
few people that are pricing so low
because they have to get out of the deal
because they can't afford it so there
are opportunities like that speckled all
throughout downtown Toronto now that
number this month is way lower than it
was last month and as rates come down
and and demand starts picking up I think
we'll work through this inventory in a
relatively quick time but uh for right
now there is an incredible opportunity
for buyers to take advantage of this
situation where sellers have to sell now
for sellers if you can I strongly
strongly urge you to wait out this
Market because that line I showed you we
know where the market is going to go and
it's probably going to go
soon now just to highlight the value in
that project if any of you are
interested uh there's many of these
projects throughout Toronto but this
building a Cumberland is located in
Yorkville you could buy here for around
1,200 less than 1,200 per square foot
two years ago it was 15600 per square
foot on the resale Market um this
building is currently selling on the
resale market for about $1,400 per
square foot it's one block north so that
is just one example of a new building
where people took on mortgages but but
they can't afford them and they're
selling them for very cheap it's driving
down a bit of pricing and uh some of the
numbers this is also a very important
chart for buyers so any of you that are
waiting for prices to go up or should I
say rates to go down what's going to
happen when rates go down prices have
historically gone up there's a direct
correlation I showed you that in that
chart when when rates went up prices
went down and and vice versa so it's an
inverse correlation so let's let's just
give you an example if you were to wait
uh sorry if you were to have bought in
February 2022 at that one Spike that I
showed you that same property today
would most likely be worth around
$800,000 so you would have bought that
at a 2 and a half% interest rate today
you'd buy at a four and a half
5% down payment would have actually been
a lot higher back then so you'd save
40,000 there land transfer tax you're
saving money there as well now the
mortgage payment because you're paying
for the same property lower purchase
price putting less money down is
relatively the
same so that is why I urge anyone
wanting or waiting to get into the
market to get into the market right now
because there are advantages a
$200,000 advantage in this
case this is a similar slide that
highlights what buying now will look
like in the future so if you're take
advantage of buying now you know and
this is based on that line where we've
seen history to re repeat itself over
and over again buy today a property of
1.18 million in the near future that's
1.26 five so interest rates today are
5.6% or 5% but in the future we believe
in the near future it'll be 4.25% this
is just for the sake of an example I
don't know exactly what the rates will
be right but so today you could put down
a lower down payment versus waiting
which many people will wait because they
want lower rates they want to know the
Market's going up so they want to buy
when it's going up where you can take
advantage of buying right now at the
bottom there's tremendous amounts of
opportunity up there and your monthly
mortgage payment you know relatively the
same with the higher rate versus paying
$200,000 more and getting a lower rate
in the
future future supply of new construction
supply so I keep mentioning this I just
mentioned it it's very important for
sellers to be aware of what the future
Supply looks like because supply and
demand is what's going to drive future
prices and the the supply story has
never
been darker in the city of of Toronto or
the GTH which this is for so this is a a
slide that I put together complement of
Z providing the data and it's just
showing the amount of completions and
units that are going to be delivered and
you'll just see how that just drops
drastically now some of this 35,000 unit
units that hit the market or expected
hit the market will get pushed and this
will get pushed further down but we're
going to start to see record record low
deliveries
completions by 2028 I actually saw a
number we didn't include here I saw it
just yesterday when I was doing research
1,900 completions are expected for 2029
1,900 new
condos um sort of new constructions not
just condos so anyone who can weather
this storm there are going to be very
good opportunities for investors and
price appreci price appreciation the
very near future based solely on Supply
this is a really interesting uh chart
that I like to follow as well
compliments of urban chonto so they
created this new uh crane study that
they've been doing now for about a year
and this is a visible sign of lower
Supply number of GTH cranes showing a
slight but persistent downward Trend so
these are the amount of cranes that you
see when you're driving downtown Toronto
or wherever and you see cranes in the
sky I went looking for this data because
I was driving around Toronto last week
trying to count cranes there are way
less cranes than there were 6 12 months
ago they're not everywhere anymore and
that's really interesting I mean you can
look at the data all you want but when
you're actually out there in the field
and you're seeing things uh you have to
look a little deeper and look between
the lines because
I believe that this is a direct sign of
fewer units hitting the market than were
originally anticipated we've had
buildings that have cancelled we've had
buildings that are even started
construction that have stopped
construction so there's a lot of
different things that are going to drive
down even this year's uh completion and
next year's completion so we'll have to
watch that closely because we don't
really know what that number is but this
is an important sign so you'll see
cranes drastic drop just this year it's
going to keep going
down all right let's look at my key
indicators the affordability gaps I love
looking at this
stuff so gaps can be a leading indicator
of what's to come now just looking at
one month of data doesn't always tell
you a full story so you want to watch
this month over month and you can
usually see a trend you can see where
prices are going to go for the different
housing types so this is really
interesting the average price
appreciation for a detached home in four
6 is currently 1.82 million and 766
th000 for a condo that's a difference of
over a million dollar that is the first
time since I've been doing this that is
over a million dollars so typically what
that'll mean is when people move to
Toronto everyone wants to buy a house
with a backyard and a pool they can't
afford it so they'll end up buying um
you know the next affordable home which
is typically a a condo in downtown
Toronto and then you can assume if they
can't afford in downtown Toronto they're
either going to be a renter but if they
want to be a homeowner they're going to
move to 905 so this is another
affordability Gap we like to look at and
we like to look at the gap between 905
and 416 because the assumption is that
majority of people work and want to live
in downtown Toronto but because of
affordability they get pushed down uh
this Gap was very narrow last year and
we were talking about that and we
actually got a lot of buyers into the
market in Toronto and since then we
we're actually right by looking at this
data because prices in 905 condos have
actually gone down as they slowly
started going up in Toronto um now the
gap's gotten bigger so so the
affordability Gap is quite wide and 905
condos are now looking like an
affordable option for some entry level
buyers and owners all right what's hot
so Secret Garden is a development in
puana Dominican Republic by novel
properties many of you know I've now
been investing in condos and
preconstruction in Dominican the cash
flow projections are amazing the capital
appreciation is amazing the incentives
the tax incentives there are many many
reasons why I'm now diversifying over
there specifically this is one project
that we're currently promoting many of
our clients have invested here very
close to the beach uh in Bavaro the hot
area of pakana reach out to me if you
guys have questions there some really
really great opportunities in Dominican
Cliffside condos by lch developments
this is actually a stunning building
it's located on Kingston and rad in
Scarboro a lot of the views to the South
will have water views and they're doing
a very low deposit 10% uh 15% deposit I
should say but they're giv 10% interest
on
deposits um so that's a really great
opportunity now what's coming soon Rain
by Lan lamb developments is coming to
Streetsville Miss Saga so any of you
watching this that are from miss aaga
you know that Streetsville is a very
high demand area and they have added
relatively no new homes or condos in the
last many years so uh this will be a
really interesting project to launch I
think it's going to do incredibly well
that's in Streetsville msaga launching
in June 1989 my last developments in
Burlington close to the Burlington
Waterfront this is a great project and
we're excited to learn more about
that and assignments so any of you
interested in buying or selling please
reach out to our team we can price out
your unit give you the best idea of what
we think we could sell for today any of
you thinking about buying there are some
incredible opportunities currently
available in Toronto that we can share
with you uh we've got uh many
assignments and where buyers want to get
out of their contracts and there's also
opportunities in the resale Market uh
this particular unit actually we just
sold it was noou residences two-bedroom
uh 7 149,000 that is now sold
conditional guys I just flew through
this I want to do Market updates at a
very high level what's really important
is reach out to us if you want to
understand what your condo is worth what
your home is worth uh and you want a
market update for your specific uh
micromarket we'd be happy to do that and
reach out if you have any questions
about any of the opportunities that we
discuss and we're always here to help
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