Another idiot article stating the Trumps issues with it's business and commercial investors signals the end of the Toronto Condo Boom. Are these fools idiots? How does Trump which is a commercial and hotel project, have anything to do with the Toronto "Condo" Boom. Mind you yes there are condos in the Trump Tower Toronto, but none of those purchasers is the aggrieved in this case. All those complainants in this case, are those that purchased the commercial class Condo-Hotel Units. You don't need a degree in business to figure out the difference in the two asset types, namely being that your return will be higher in the good times with this investment, and you'll have your pants pulled down in the bad times. And the hotel just opened, and these novice business class investors want to make a million dollars on their first day. That is just pure greed.
This building, of all buildings has the least to do with the general condo market in Toronto, first of all it's uber luxury, that's extreme luxury for our non-German Readers, and most condos in Toronto don't sell for 1 million plus, or 2 million plus. This is extreme high end in addition there is a commercial component as the Condo-Hotel Units will be run as a business, just like if you went out and bought a Pizza Pizza Franchise or a McDonald's and Tim Hortons. Here you are buying a Trump Condo Franchise, with your condo unit. You win some, you lose some.
Here is a link to the article and a forward.
We bought into the Trump name and what we were being told was a hot real estate market in Toronto for this kind of project,” Crockett said in an interview. “It turns out that the hotel had nothing to do with him and that it isn’t a good investment after all.”
The brewing legal trouble is the latest sign that the real estate boom in a city with more skyscrapers under construction than any other in the world may be cooling as sales drop and prices climb. Canadian Finance Minister Jim Flaherty tightened mortgage lending rules in June and criticized “continuous building, without restriction” of condos. The central bank said last month that record consumer debt and the chance of a sudden housing correction are major risks to the economy.
Bloomberg Trump Report
New Trends in Condo Buying Emerging in the Toronto Area
A few new trends to watch out for in the Toronto area when it comes to buying homes as well as buying condos. When it comes to buying homes, the latest tactic is to put a property which had previously been listed on the MLS system, on a bidding site, or list through an auction house to get buyers, sending the price of single detached homes soaring.
As for condos the latest buying technique is the new trend with regards to micro housing, or micro condo living. And we’re seeing now, specifically designed condos to meet that purpose. Another new trend to look out for is the lack of supply in the purpose built rental housing market in Toronto. Even as new condos come online there remains a shortage of apartments built specific to that purpose, so condo rentals have increased even as vacancy climbs, rentals rates do as well.
Busy Condo Market Boosts Toronto Home Sales
With fewer homes in the detached category available in Toronto, new home buyers seem to be opting for new condos, with sales heading forward at a rocket pace last month. Sales of Existing Homes in the Toronto area moved up by a whopping 2.1% in February 2014, and that is compared to the same time period last year. That was mainly due to a 12.5% increase in the sales of condos within the city so stated by the Toronto Real Estate Board. That will contrasts with the sales declines that occurred in townhomes, detached and semi-detached housing during the month, which was mainly due to a constrained supply of those housing types.
The Canadian Home Mortage Corporation (CMHC) set to alter Mortgage Insurance Rates
The federal agency which regulates mortgage insurance in Canada is set to alter the rates which is charges new home buyers to insure their mortgages against the risk of default. These premiums which new homeowners must pay to get CMHC insurance may also impact the ability of homebuyers to purchase their homes. The federal government has been trying for quite some time to reign in the Toronto and Vancouver Housing markets where the average cost of a single family detached home has now reached over $1 million dollars.
RBC Financial Group Warns, that Rising Mortgage Rates will Make Home Ownership Unaffordable for Most Canadians.
The Royal Bank of Canada is warning that the tide of rising interest rates will make home ownership for most Canadians unaffordable. This will be very true in Toronto and Vancouver where home prices have recently climbed over $1 Million dollars for a single family detached home. Servicing of interest related to home ownership such as mortgage rates, as well as mortgage insurance are set to rise, or have been rising over the past year. The longer term interest rates are moving at such a pace that the incomes of most Canadians will not be able to keep up. The good news however is that the rising interest rates foretell a improving economy for most Canadians looking to improve their financial situation
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